BILL REQ. #:  S-4030.3 

Read first time 01/17/08.   Referred to Committee on Early Learning & K-12 Education.

     AN ACT Relating to imposing an admissions surcharge to fund extracurricular activities for middle and high schools; adding a new section to chapter 28A.300 RCW; adding a new chapter to Title 82 RCW; creating new sections; providing a contingent effective date; and providing for submission of this act to a vote of the people.

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

NEW SECTION.  Sec. 1   The legislature recognizes that extracurricular activities are a vital part of the educational experience for Washington's students. The legislature acknowledges that children who are connected to their school and community become responsible citizens and develop the skills to contribute to their own economic well-being and to that of their families and communities. The legislature finds that extracurricular activities assist our children in developing the skills they need to become full members of society.
     The legislature further finds that the fund-raising ability of schools may decrease as a result of the requirements in chapter 5, Laws of 2007, that only healthy foods be available on school campuses. The legislature also finds that, in order to replace the funds lost, alternative funding should be provided. Therefore, it is the intent of the legislature to provide a replacement funding source for the funds that will be lost to support extracurricular activities.

NEW SECTION.  Sec. 2   The middle and high school activities funding account is created in the custody of the state treasurer. All receipts from the surcharge imposed in section 4 of this act must be deposited into the account. Expenditures from the account may only be used to fund extracurricular activities of public elementary and secondary schools as provided in section 9 of this act.

NEW SECTION.  Sec. 3   The definitions in this section apply throughout this chapter unless the context clearly requires otherwise.
     (1) "Admission charge" means the price required or paid for entering any premise or location where live sporting events or live entertainment are held, and includes but is not limited in meaning to:
     (a) A charge made for season tickets or subscriptions;
     (b) A cover charge or a charge made for use of seats or tables, reserved or otherwise, and similar accommodations;
     (c) A charge for admission to any live entertainment or sporting event that is included within the price paid for meals, refreshments, or services where no separate admission charge is made.
     (2) "Community arts program" means a musical, dance, art, or theater program that is organized for the purposes of training or engaging students or community residents in musical, dance, art, or theater activities and that is operated, conducted, administered, supported, or enabled by a city, town, county, district, nonprofit youth organization as defined in RCW 82.04.4271, public school district, other than those programs offered by the school and created solely for the students by the school, or a program organized solely for students to provide a recital to demonstrate progress or training in music, art, dance, or theater arts. "Community arts program" does not mean a musical, dance, art, or theater program that includes professional performers or artists.
     (3) "Community athletics program" means any athletic program that is organized for the purposes of training for and engaging in athletic activity and competition and that is operated, conducted, administered, supported, or enabled by a city, town, county, district, nonprofit youth organization as defined in RCW 82.04.4271, or public school district other than those programs offered by the school and created solely for the students by the school.
     (4) "Department" means the department of revenue.
     (5) "Live entertainment" means any activity provided for pleasure, enjoyment, recreation, relaxation, diversion, or other similar purpose by a person or persons who are physically present when providing an activity to a patron or group of patrons who are physically present. This includes, but is not limited to:
     (a) Music or vocals provided by one or more professional or amateur musicians or vocalists;
     (b) Dancing performed by one or more professional or amateur dancers or performers;
     (c) Acting or drama provided by one or more professional or amateur actors or players;
     (d) Acrobatics or stunts provided by one or more professional or amateur acrobats;
     (e) Animal stunts or performances provided or incited by one or more animal handlers or trainers;
     (f) Athletic contests, events, or exhibitions provided by one or more professional or amateur athletes;
     (g) Comedy or magic provided by one or more professional or amateur comedians, magicians, illusionists, entertainers, or performers;
     (h) Cooking or product demonstrations provided by one or more professional or amateur chefs, speakers, or demonstrators;
     (i) A show or production involving any combination of the activities listed in this subsection. Live entertainment does not include ambient background music; television, radio, closed circuit, or internet broadcasts of live entertainment; entertainment provided by a patron or patrons; or the presentation of recorded music.
     (6) "Person" has the meaning provided in RCW 82.04.030.
     (7) "Place" means, without limiting its scope, a theater, showhouse, cabaret, nightclub, art gallery, museum, dance hall, athletic park, swimming pool, skating rink, resort ground, amusement park, and other enclosures and buildings or portions thereof and buildings or portions thereof wherein entertainment or recreation is provided, and located within the boundaries of the county or in any state or federal reservation therein, under such rules as the department shall adopt.

NEW SECTION.  Sec. 4   (1) There is imposed an admission surcharge of one percent on every admission charge to a live sporting or live entertainment event in this state. The surcharge shall be imposed on the actual admission amount charged, exclusive of other taxes or fees, and reduced admission charges shall be subject to the surcharge on the reduced charge and not on the regular admission charge.
     (2) Moneys collected under this act shall be deposited in the middle and high school activities funding account created in section 2 of this act.

NEW SECTION.  Sec. 5   The following are exempt from the surcharge imposed in section 4 of this act:
     (1) Admissions to any activity of an elementary or secondary school;
     (2) Admissions to any community athletics program;
     (3) Admissions to any community arts program; and
     (4) Admissions, where the charge for admission is less than one dollar.

NEW SECTION.  Sec. 6   Whenever a charge is made for any admission subject to the surcharge imposed by this act, a ticket or receipt shall be provided that shows the price of the admission, the surcharge imposed under this chapter, any other taxes imposed, and the total charge for the ticket.

NEW SECTION.  Sec. 7   (1) The surcharge imposed under this chapter shall be paid by the buyer of the admissions to the person receiving payment for the admission, and the surcharge shall be held in trust until it is remitted to the department in a form and manner determined by the department; and the person receiving payment for the admission shall be personally liable for the amount of such surcharge if it is not collected and remitted as provided in this act. The surcharge shall be collected at the time the admission charge is paid by the person seeking admission and shall be reported and remitted by the person receiving the surcharge to the department in the form and manner required by the department.
     (2) Any person required to collect the surcharge imposed under this chapter, who fails to collect the surcharge or, having collected the surcharge, fails to remit it to the department in the manner required by the department, whether the failure is the result of his or her own act or the result of acts or conditions beyond his or her control, is personally liable to the department for the amount of such surcharge.
     (3) The department has the power to adopt rules prescribing methods and schedules for the collection of the surcharge required to be collected under this chapter.
     (4) The administrative provisions of chapter 82.32 RCW, in so far as they do not conflict with any more specific provision of this act, apply to the administration of this act.

NEW SECTION.  Sec. 8   Sections 3 through 7 of this act constitute a new chapter in Title 82 RCW.

NEW SECTION.  Sec. 9   A new section is added to chapter 28A.300 RCW to read as follows:
     The superintendent of public instruction shall, without any deduction for administrative or other costs, allocate funds by September 10th of each year in the middle and high school activities funding account established in section 2 of this act to be used to support extracurricular activities of public middle and high schools, including internal or interschool activities of an athletic, cultural, social, or recreational nature for students of the district, and including regional competitions associated with such activities.
     The funds shall be allocated on a proportionate basis to each district within the state, and each district shall, with the advice of the school's associated student body association, distribute the funds as needed to each activity, including individual student travel costs associated with such activity; however, athletic activities may receive no more than twenty-five percent of the funds allocated to each district. Districts may not deduct any amount for administration or divert funds to any other activity.

NEW SECTION.  Sec. 10   If any provision of this act or its application to any person or circumstance is held invalid, the remainder of the act or the application of the provision to other persons or circumstances is not affected.

NEW SECTION.  Sec. 11   The secretary of state shall submit this act to the people for their adoption and ratification, or rejection, at the next general election to be held in this state, in accordance with Article II, section 1 of the state Constitution and the laws adopted to facilitate its operation.

NEW SECTION.  Sec. 12   This act takes effect July 1, 2009, if the proposed amendment to Article II, section 1 of the state Constitution, creating an admissions surcharge for funding of certain school activities (SJR . . . (S-4030/08)), is validly submitted to and is approved and ratified by the voters at the next general election. If the proposed amendment is not approved and ratified, this act is void in its entirety.