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H0711...............................................by REVENUE AND TAXATION BOXING/WRESTLING - PAY-PER-VIEW - Amends and adds to existing law to provide a salary for the State Athletic Commissioner, to update the Idaho Athletic Commission law to allow for taxation of closed circuit and pay-per-view telecasts for boxing and wrestling matches to provide funding for the commission. 02/16 House intro - 1st rdg - to printing 02/17 Rpt prt - to Rev/Tax
H0711|||| LEGISLATURE OF THE STATE OF IDAHO |||| Fifty-fourth Legislature Second Regular Session - 1998IN THE HOUSE OF REPRESENTATIVES HOUSE BILL NO. 711 BY REVENUE AND TAXATION COMMITTEE 1 AN ACT 2 RELATING TO THE STATE ATHLETIC COMMISSION; AMENDING SECTION 54-401, IDAHO 3 CODE, TO PROVIDE FOR AN ANNUAL SALARY TO BE PAID TO THE STATE ATHLETIC 4 COMMISSIONER AND TO PROVIDE FOR REIMBURSEMENT FOR EXPENSES; AMENDING SEC- 5 TION 54-410, IDAHO CODE, TO REVISE PROCEDURES REGARDING CLOSED CIRCUIT 6 TELECASTS AND TO AUTHORIZE CONTRACTING WITH THE STATE TAX COMMISSION AND 7 TO MAKE A TECHNICAL CORRECTION; AMENDING CHAPTER 4, TITLE 54, IDAHO CODE, 8 BY THE ADDITION OF NEW SECTIONS 54-410A, 54-410B, 54-410C, 54-410D, 9 54-410E, 54-410F, 54-410G, 54-410H AND 54-410I, IDAHO CODE, TO DEFINE 10 TERMS, TO PROVIDE FOR THE SALE OF DISTRIBUTION RIGHTS AND THE EFFECT, TO 11 PROVIDE FOR CLOSED CIRCUIT TELECASTS, TO PROVIDE FOR PROMOTER AUTHORIZA- 12 TION ON CLOSED CIRCUIT TELECASTS, TO PROVIDE FOR REPORTS TO THE COMMIS- 13 SION, TO PROVIDE FOR PAY-PER-VIEW AND TO PROVIDE REPORTS, TO PROVIDE FOR 14 THE PENALTY OF PERJURY, TO PROVIDE FINES FOR THE LATE PAYMENT OF TAXES, 15 FILING OF REPORTS AND WAIVER AND TO REQUIRE A PERMIT. 16 Be It Enacted by the Legislature of the State of Idaho: 17 SECTION 1. That Section 54-401, Idaho Code, be, and the same is hereby 18 amended to read as follows: 19 54-401. STATE ATHLETIC COMMISSION. There is hereby created and estab- 20 lished the state athletic commission in the department of self-governing agen- 21 cies. The state athletic commission shall be administered by the state ath- 22 letic commissioner who shall be appointed by the governor subject to confirma- 23 tion by the senate and shall be subject to removal at the pleasure of the gov- 24 ernor. The state athletic commissioner shall be appointed for a term of four 25 (4) years and shall receivesuch compensationa salary 26 not to exceedthat provided in section 59-509(f), Idaho Code27twenty-five thousand dollars ($25,000) per annum, which shall be 28 set by the governor, and shall be reimbursed for actual and necessary expenses 29 incurred in administering the provisions of this chapter . 30 SECTION 2. That Section 54-410, Idaho Code, be, and the same is hereby 31 amended to read as follows: 32 54-410. SIMULTANEOUS OR CLOSED CIRCUIT TELECASTS -- REPORT -- TAX ON 33 GROSS RECEIPTS. Every licensee who charges and receives an admission fee for 34 exhibiting a simultaneous telecast of any live, current or spontaneous boxing 35 or sparring match or wrestling exhibitionor showon a closed 36 circuit telecast viewed within this state shall,within seventy-two (72)37hours after such eventas provided in sections 54-410A through 38 54-410I, Idaho Code , furnish to the commission a verified written 39 report on a form which is supplied by the commission showing the number40orof tickets issued or sold, and the gross receipts 41 therefor without any deductions whatsoever.Such licensee shall also, at2 1the same time pay to the commission a tax equal to five per cent (5%) of such2gross receipts paid for admission to the showing of the contest, match or3exhibition. In no event, however, shall the tax be less than twenty-five dol-4lars ($25.00).The tax provided in sections 54-410A through 5 54-410I, Idaho Code, shall apply uniformly at the same rate to all per- 6 sons subject to the tax. Such receipts shall be paid within twenty-four (24) 7 hours by the commission into the state athletic commissionaccount8fund . The commission may contract with the state tax 9 commission to administer the provisions of sections 54-410A through 54-410I, 10 Idaho Code. 11 SECTION 3. That Chapter 4, Title 54, Idaho Code, be, and the same is 12 hereby amended by the addition thereto of NEW SECTIONS , to be 13 known and designated as Sections 54-410A, 54-410B, 54-410C, 54-410D, 54-410E, 14 54-410F, 54-410G, 54-410H and 54-410I, Idaho Code, and to read as follows: 15 54-410A. DEFINITIONS. The definitions in this section apply throughout 16 sections 54-410A through 54-410I, Idaho Code, unless the context clearly 17 requires otherwise. 18 (1) "Broadcast" means an audio or visual transmission sent by any means 19 of signal within, into, or from this state, whether live, tape, or time 20 delayed, and includes any replays of the transmission. 21 (2) "Closed circuit telecast" means a telecast that is not intended to be 22 available for viewing without the payment of a fee, collected for or based 23 upon each event viewed, for the privilege of viewing the telecast and includes 24 the term "pay-per-view." Closed circuit telecast includes a telecast to an 25 arena, bar, club, entertainment or meeting center, and private residence. 26 (3) "Gross receipts" means the amount received from the sale or lease of 27 broadcasting, television, closed circuit, or motion picture rights without 28 deductions for commissions, brokerage fees, distribution fees, production 29 fees, advertising or other expenses or charges. It also includes the portion 30 of the receipts from the sale of souvenirs, programs, and other concessions 31 received by the promoter, and the face value of all tickets sold and compli- 32 mentary tickets redeemed. 33 (4) "System operator" or "systems" means any person who makes available 34 or provides his or her customers a closed circuit telecast utilizing the term 35 currently known as "pay-per-view." 36 54-410B. SALE OF DISTRIBUTION RIGHTS -- EFFECT. If the distribution 37 rights for a closed circuit telecast to be viewed in this state are in whole 38 owned by, sold to, acquired by, or held by a person who intends to or subse- 39 quently sells or in some other manner extends the rights in part to another, 40 then the person is deemed to be a promoter wherever located and shall, before 41 the telecast, be licensed as such by the commission. However, the commission 42 may provide by rule for additional licensed promoters to participate in the 43 distribution rights and share in the liability for fee payment to the commis- 44 sion. A closed circuit telecast of a boxing, kickboxing, wrestling, or martial 45 art event may not be telecast from, in, or into this state except under the 46 auspices of a promoter licensed in this state, and the promoter shall file the 47 appropriate reports and fee payments with the commission as provided in this 48 chapter. 49 54-410C. CLOSED CIRCUIT TELECASTS. For closed circuit telecasts other 50 than to a private residence, the promoter must notify the commission of the 51 names and addresses of all facilities to or through which the closed circuit 3 1 telecast will be shown fourteen (14) days before the date of the closed cir- 2 cuit event and provide daily updates to the department of any additions and 3 deletions of facilities. 4 54-410D. CLOSED CIRCUIT TELECAST -- PROMOTER AUTHORIZATION. A person or 5 facility owner or operator intending to show the closed circuit telecast, 6 whether or not an admission fee will be charged, must receive authorization to 7 show the telecast from the promoter before the telecast. The showing of a 8 closed circuit telecast, whether or not an admission fee is charged, without 9 the authorization of the licensed promoter is prohibited. This includes the 10 delayed showing of a closed circuit telecast when the showing requires the 11 authorization of the promoter. 12 54-410E. REPORTS TO COMMISSION. For facilities at or through which the 13 closed circuit telecast was shown, other than a system operator's pay-per-view 14 facilities, the promoter shall within eight (8) calendar days following the 15 telecast mail to the commission a written report detailing the name, address, 16 telephone number, contact person's name, and the details of the payment 17 arrangement for the right to receive the telecast for each facility to which 18 the broadcast was transmitted. The report must be accompanied by a fee payment 19 of five percent (5%) of the total amount paid to the promoter for the right to 20 broadcast the telecast. The commission may require the owner or operator of 21 the facility where the telecast is being shown to file a sworn report contain- 22 ing information regarding the amount paid to the promoter for the right to 23 broadcast the telecast and other information as the commission deems appropri- 24 ate. 25 54-410F. PAY-PER-VIEW -- REPORTS. In the case of a system operator's pay- 26 per-view facilities at or through which a closed circuit telecast was shown, 27 the system operator must mail within fifteen (15) calendar days following the 28 telecast, on a form provided by the commission, a sworn report containing the 29 name of the promoter, the date of the telecast, the number of orders sold, and 30 the price charged for the orders and other information the commission deems 31 appropriate. This report must be accompanied by a fee payment of five percent 32 (5%) of the total gross receipts excluding any federal, state or local taxes. 33 Systems are liable to the commission for the fee payment, but nothing in this 34 section is deemed to prevent a system from billing its customers for the fee 35 payment. 36 54-410G. PERJURY. A promoter, facility owner or operator, or system oper- 37 ator who willfully makes a false sworn report under this section is guilty of 38 perjury. 39 54-410H. FINES. The commission must, by rule, establish fines for the 40 late payment of taxes, late filing of reports, and prescribe conditions, if 41 any, under which a fine may be waived. 42 54-410I. PERMIT REQUIRED. The promoter of a closed circuit telecast must 43 apply for a permit for the telecast. The application for a permit must be on 44 forms provided by the commission and must contain the name of the licensed 45 promoter, the date of the broadcast, the origination address of the broadcast, 46 a statement that the applicant acknowledges responsibility for the payment of 47 taxes to the commission and other information as the commission may deem nec- 48 essary. The state athletic commissioner shall set the permit fee by rule. The 49 permit must be filed thirty (30) days before the date of the broadcast.
STATEMENT OF PURPOSE
RS 07407C3
This legislation imposes a tax on gross receipts of
Simultaneous or Close Circuit TV within the State of Idaho to be
paid by Promoters who are out of state. Proceeds from said tax
will be used to regulate professional boxing and related sports
in Idaho and comply with State and Federal Laws. Professional
boxing has increased from six to eight fights per year to a
projected twenty (20) fights in 1998.
FISCAL NOTE
The imposition of the sanctioning (user) fee is estimated
to generate $30,000 to $40,000 per year. There is no impact on
the General Fund.
CONTACT: Rep Jim Clark
Rep Pat Bieter
Sen Grant R Ispen
Jon W Vestal
332-1000
PHONE:
STATEMENT OF PURPOSE/ FISCAL NOTE
H 711