BILL REQ. #:  S-0250.1 

Read first time 01/18/13.   Referred to Committee on Ways & Means.

     AN ACT Relating to grants for community outdoor and indoor athletic facilities; amending RCW 43.99N.060; and adding a new section to chapter 82.32 RCW.

BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF WASHINGTON:

Sec. 1   RCW 43.99N.060 and 2009 c 497 s 6026 are each amended to read as follows:
     (1) The stadium and exhibition center account is created in the custody of the state treasurer. All receipts from the taxes imposed under RCW 82.14.0494 and distributions under RCW 67.70.240(5) shall be deposited into the account. Only the director of the office of financial management or the director's designee may authorize expenditures from the account. The account is subject to allotment procedures under chapter 43.88 RCW. An appropriation is not required for expenditures from this account.
     (2) Until bonds are issued under RCW 43.99N.020, up to five million dollars per year beginning January 1, 1999, shall be used for the purposes of subsection (3)(b) of this section, all remaining moneys in the account shall be transferred to the public stadium authority, created under RCW 36.102.020, to be used for public stadium authority operations and development of the stadium and exhibition center.
     (3) After bonds are issued under RCW 43.99N.020, all moneys in the stadium and exhibition center account shall be used exclusively for the following purposes in the following priority:
     (a) On or before June 30th of each year, the office of financial management shall accumulate in the stadium and exhibition center account an amount at least equal to the amount required in the next succeeding twelve months for the payment of principal of and interest on the bonds issued under RCW 43.99N.020;
     (b) An additional reserve amount not in excess of the expected average annual principal and interest requirements of bonds issued under RCW 43.99N.020 shall be accumulated and maintained in the account, subject to withdrawal by the state treasurer at any time if necessary to meet the requirements of (a) of this subsection, and, following any withdrawal, reaccumulated from the first tax revenues and other amounts deposited in the account after meeting the requirements of (a) of this subsection; and
     (c) The balance, if any, shall be transferred to the youth athletic facility account under subsection (4) of this section.
     Any revenues derived from the taxes authorized by RCW 36.38.010(5) and 36.38.040 or other amounts that if used as provided under (a) and (b) of this subsection would cause the loss of any tax exemption under federal law for interest on bonds issued under RCW 43.99N.020 shall be deposited in and used exclusively for the purposes of the youth athletic facility account and shall not be used, directly or indirectly, as a source of payment of principal of or interest on bonds issued under RCW 43.99N.020, or to replace or reimburse other funds used for that purpose.
     (4)(a) Any moneys in the stadium and exhibition center account not required or permitted to be used for the purposes described in subsection (3)(a) and (b) of this section and revenues specified under section 2 of this act shall be deposited in the youth athletic facility account hereby created in the state treasury.
     (b) Expenditures from the youth athletic facility account may be used only for purposes of making grants ((or loans)) to cities, counties, and ((qualified nonprofit organizations)) metropolitan park districts created under chapter 35.61 RCW for community outdoor or indoor athletic facilities. Only the director of the recreation and conservation office or the director's designee may authorize expenditures from the account. The account is subject to allotment procedures under chapter 43.88 RCW, but an appropriation is not required for expenditures.
     (c)(i) The athletic facility grants ((or loans)) may be used for ((acquiring, developing, equipping, maintaining, and improving community outdoor athletic facilities. Funds shall be divided equally between the development of new community outdoor athletic facilities, the improvement of existing community outdoor athletic facilities, and the maintenance of existing community outdoor athletic facilities.)) the following purposes for community outdoor or indoor athletic facilities that are designed to serve youth or communities:
     (A) Acquisition of land to support facilities;
     (B) Development;
     (C) Renovation; or
     (D) Equipping community outdoor or indoor athletic facilities.
     (ii) Acquisition of land and development of facilities must provide new youth and community athletic opportunities.
     (iii) Renovation must increase playing capacity of an existing facility by changing its use, extending its use, or expanding its size.
     (iv) Maintenance must result in continuing or retaining the originally designed and built use and capacity of the existing facility.
     (d) Cities, counties, and ((qualified nonprofit organizations)) metropolitan park districts must submit proposals for grants ((or loans from the account. To the extent that funds are available, cities, counties, and qualified nonprofit organizations)) to the recreation and conservation office and must meet eligibility criteria as established by the ((director of the)) recreation and conservation ((office)) funding board. The grants ((and loans)) shall be awarded ((on)) through a competitive application process ((and the amount of the grant or loan shall be in proportion to the population of the city or county for where the community outdoor athletic facility is located)). Grants ((or loans)) awarded in any one year need not be distributed in that year. ((In the 2009-2011 biennium, if there are not enough project applications submitted in a category within the account to meet the requirement of equal distribution of funds to each category, the director of the recreation and conservation office may distribute any remaining funds to other categories within the account.))
     (e) The director of the recreation and conservation office may expend up to ((one and one-half)) three percent of the moneys deposited in the account created in this subsection for administrative purposes.

NEW SECTION.  Sec. 2   A new section is added to chapter 82.32 RCW to read as follows:
     (1) By October 1, 2013, and by October 1st of every third year thereafter, the department must estimate the amount of state sales and use tax revenue collected in the prior fiscal year from the sale of or charge made for the right to participate in competitive team sport activities, including competitive team sport tournaments, and provide the estimated amount to the state treasurer.
     (2) By November 1, 2013, and by November 1st of every year thereafter, the state treasurer must transfer fifty percent of the most recent estimated amount under subsection (1) of this section from the general fund into the youth athletic facility account created in RCW 43.99N.060.
     (3) By December 1, 2016, and by December 1st of every year in which an updated estimate is determined under subsection (1) of this section, the department must provide the fiscal committees of the legislature with a summary report of the assumptions, data sources, and methodology that were used in the preparation of the estimate required under subsection (1) of this section. The assumptions in the report must include a discussion of taxpayer compliance with respect to the collection and remittance of sales and use taxes on sale of or charge made for the right to participate in competitive team sport activities, including competitive team sport tournaments.
     (4) For the purposes of this section, "competitive team sport" means a sport in which teams of two or more players compete against one another where the collective effort of the teams' members determines the final score and the outcome of the competition.