BILL REQ. #:  S-0895.1 

Read first time 02/07/13.   Referred to Committee on Commerce & Labor.

     AN ACT Relating to supporting youth programs through agricultural fairs and the horse racing commission; and amending RCW 15.76.100, 67.70.240, 15.76.115, and 67.16.280.

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

Sec. 1   RCW 15.76.100 and 2012 c 221 s 1 are each amended to read as follows:
     It is hereby declared that it is in the public interest to hold agricultural fairs, including the exhibition of livestock and agricultural produce of all kinds, as well as related arts and manufactures; including products of the farm home and educational contest, displays, and demonstrations designed to train youth and to promote the welfare of farm people and rural living. The legislature further finds that providing a dedicated source of revenues for state allocations to the fair fund supports these important training opportunities for youth. Fairs qualifying ((hereunder shall be)) under this section are eligible for allocations from the state fair fund and for capital funding when appropriated to the department of agriculture, as provided in this chapter.

Sec. 2   RCW 67.70.240 and 2011 c 352 s 3 are each amended to read as follows:
     (1) The moneys in the state lottery account shall be used only:
     (((1))) (a) For the payment of prizes to the holders of winning lottery tickets or shares;
     (((2))) (b) For purposes of making deposits into the reserve account created by RCW 67.70.250 and into the lottery administrative account created by RCW 67.70.260;
     (((3))) (c) For purposes of making deposits into the education construction fund created in RCW 43.135.045 and the Washington opportunity pathways account created in RCW 28B.76.526. On and after July 1, 2010, all deposits not otherwise obligated under this section shall be placed in the Washington opportunity pathways account. Moneys in the state lottery account deposited in the Washington opportunity pathways account are included in "general state revenues" under RCW 39.42.070;
     (((4))) (d) For distribution to a county for the purpose of paying the principal and interest payments on bonds issued by the county to construct a baseball stadium, as defined in RCW 82.14.0485, including reasonably necessary preconstruction costs. Three million dollars shall be distributed under this subsection during calendar year 1996. During subsequent years, such distributions shall equal the prior year's distributions increased by four percent. Distributions under this subsection shall cease when the bonds issued for the construction of the baseball stadium are retired, but not more than twenty years after the tax under RCW 82.14.0485 is first imposed;
     (((5))) (e) For distribution to the stadium and exhibition center account, created in RCW 43.99N.060. Subject to the conditions of RCW 43.99N.070, six million dollars shall be distributed under this subsection during the calendar year 1998. During subsequent years, such distribution shall equal the prior year's distributions increased by four percent. No distribution may be made under this subsection after December 31, 1999, unless the conditions for issuance of the bonds under RCW 43.99N.020(2) are met. Distributions under this subsection shall cease when the bonds are retired, but not later than December 31, 2020;
     (((6))) (f) For transfer to the veterans innovations program account. The net revenues received from the sale of the annual Veteran's Day lottery raffle conducted under RCW 67.70.500 must be deposited into the veterans innovations program account created in RCW 43.60A.185 for purposes of serving veterans and their families. For purposes under this subsection, "net revenues" means all revenues received from the sale of veteran lottery raffle tickets less the sum of the amount paid out in prizes and the actual administration expenses of the lottery solely related to the veteran lottery raffle;
     (((7))) (g) For the purchase and promotion of lottery games and game-related services; ((and
     (8))) (h) For the payment of agent compensation; and
     (i) For distribution to the state fair fund created in RCW 15.76.115 and the horse racing commission operating account created in RCW 67.16.280. Five million dollars must be distributed under this subsection during calendar year 2013, as follows: (A) Two million five hundred thousand dollars to the state fair fund established under RCW 15.76.115; and (B) two million five hundred thousand dollars to the horse racing commission operating account established under RCW 67.16.280. During subsequent years, such distributions must equal the prior year's distributions increased by two percent. No distribution may be made under this subsection (1)(i) after June 30, 2023.
     (2) The office of financial management shall require the allotment of all expenses paid from the account and shall report to the ways and means committees of the senate and house of representatives any changes in the allotments.

Sec. 3   RCW 15.76.115 and 2011 1st sp.s. c 50 s 926 are each amended to read as follows:
     (1) The fair fund is created in the custody of the state treasury.
     (2) As of the effective date of this section until July 30, 2023, all moneys received by the department of agriculture for the purposes of this fund ((and from RCW 67.16.105(7))) shall be deposited into the fair fund. ((At the beginning of fiscal year 2002))
     (3) As of June 30, 2023, and each fiscal year thereafter, the state treasurer shall transfer into the fair fund from the general fund the sum of two million dollars((, except for fiscal year 2011 the state treasurer shall transfer into the fair fund from the general fund the sum of one million one hundred three thousand dollars, and except during fiscal year 2012 and fiscal year 2013 the state treasurer shall transfer into the fair fund from the general fund the sum of one million seven hundred fifty thousand dollars each fiscal year)).
     (4) Expenditures from the fund may be used only for assisting fairs in the manner provided in this chapter. Only the director of agriculture or the director's designee may authorize expenditures from the fund. The fund is subject to allotment procedures under chapter 43.88 RCW, but no appropriation is required for expenditures.

Sec. 4   RCW 67.16.280 and 2011 c 12 s 2 are each amended to read as follows:
     (1) The Washington horse racing commission operating account is created in the custody of the state treasurer. All receipts collected by the commission under RCW 67.16.105(2) must be deposited into the account. The commission has the authority to receive such gifts, grants, and endowments from public or private sources as may be made from time to time in trust or otherwise for the use and purpose of regulating or supporting nonprofit race meets as set forth in RCW 67.16.130 and 67.16.105(1); such gifts, grants, and endowments must also be deposited into the account and expended according to the terms of such gift, grant, or endowment. Moneys in the account may be spent only after appropriation. Except as provided in subsection (2) of this section, expenditures from the account may be used ((only)) for operating expenses of the commission including increasing the size of purses for horse racing events, providing educational opportunities at horse racing facilities for children involved in 4-H and other horse owners involved in training, providing jockey insurance mitigation and suppression at class C tracks, and marketing activities related to the horse racing industry. Investment earnings from the account will be retained in the Washington horse racing commission operating account, pursuant to RCW 43.79A.040.
     (2) In order to provide funding in support of the legislative findings in RCW 67.16.101 (1) through (3), and to provide additional necessary support to the nonprofit race meets beyond the funding provided by RCW 67.16.101(4) and 67.16.102(2), the commission is authorized to spend up to three hundred thousand dollars per fiscal year from its operating account for the purpose of developing the equine industry, maintaining and upgrading racing facilities, and assisting equine health research. When determining how to allocate the funds available for these purposes, the commission must give first consideration to uses that regulate and assist the nonprofit race meets and equine health research. These expenditures may occur only when sufficient funds remain for the continued operations of the horse racing commission.