2005 Legislation
Print Friendly

HOUSE BILL NO. 151 – Pay-per-view broadcast rights, tax

HOUSE BILL NO. 151

View Bill Status

View Bill Text

View Statement of Purpose / Fiscal Impact



Text to be added within a bill has been marked with Bold and
Underline. Text to be removed has been marked with
Strikethrough and Italic. How these codes are actually displayed will
vary based on the browser software you are using.

This sentence is marked with bold and underline to show added text.

This sentence is marked with strikethrough and italic, indicating
text to be removed.

Bill Status



H0151...............................................by REVENUE AND TAXATION
PAY-PER-VIEW BROADCAST RIGHTS - Amends, repeals and adds to existing law
relating to the Idaho Athletic Commission to require application for a
sanctioning permit; to impose a tax on sales of pay-per-view broadcast
rights; to enumerate contents of a closed-circuit telecast permit
application and time of filing a permit; to govern telecast promoters; to
require a license and enumerate contents of the license application; to
impose a gross receipts tax; to provide for payment; and to provide
penalties.
                                                                        
02/10    House intro - 1st rdg - to printing
02/11    Rpt prt - to Rev/Tax

Bill Text


                                                                        
                                                                        
  ]]]]              LEGISLATURE OF THE STATE OF IDAHO             ]]]]
 Fifty-eighth Legislature                   First Regular Session - 2005
                                                                        
                                                                        
                              IN THE HOUSE OF REPRESENTATIVES
                                                                        
                                     HOUSE BILL NO. 151
                                                                        
                             BY REVENUE AND TAXATION COMMITTEE
                                                                        
  1                                        AN ACT
  2    RELATING TO THE IDAHO ATHLETIC  COMMISSION;  AMENDING  SECTION  54-402,  IDAHO
  3        CODE,  TO FURTHER DEFINE TERMS AND TO MAKE TECHNICAL CORRECTIONS; AMENDING
  4        SECTION 54-411, IDAHO CODE, TO REQUIRE APPLICATION FOR A SANCTIONING  PER-
  5        MIT AND TO IMPOSE A TAX ON SALES OF PAY-PER-VIEW BROADCAST RIGHTS; REPEAL-
  6        ING  SECTION 54-413, IDAHO CODE; AMENDING CHAPTER 4, TITLE 54, IDAHO CODE,
  7        BY THE ADDITION OF A NEW SECTION 54-413, IDAHO CODE, TO ENUMERATE CONTENTS
  8        OF A PERMIT APPLICATION AND TIME OF FILING A PERMIT; AND AMENDING  CHAPTER
  9        4,  TITLE  54, IDAHO CODE, BY THE ADDITION OF A NEW SECTION 54-413A, IDAHO
 10        CODE, TO GOVERN TELECAST PROMOTERS, TO REQUIRE A LICENSEE TO REPORT AND TO
 11        PAY AN ASSESSMENT AND TO PROVIDE PENALTIES.
                                                                        
 12    Be It Enacted by the Legislature of the State of Idaho:
                                                                        
 13        SECTION 1.  That Section 54-402, Idaho Code, be, and the  same  is  hereby
 14    amended to read as follows:
                                                                        
 15        54-402.  DEFINITIONS.  (1) The terms used in this chapter have the follow-
 16    ing meanings: set forth below. To the extent the commission  deems  pertinent,
 17    any  specialized  term not otherwise defined in this chapter may be defined by
 18    rule.
 19        (a1)  "Amateur" means an individual who  has  never  been  a  professional
 20    boxer  or  professional  wrestler,  as  defined in this chapter, as well as an
 21    individual who has never received nor competed for any purse or other  article
 22    of  value, either for participating in any boxing contest or exhibition or for
 23    the expenses of training therefor, other than a noncash prize which  does  not
 24    exceed fifty dollars ($50.00) in value.
 25        (b2)  "Applicant"  means  any  individual, club, association, corporation,
 26    partnership, trust or other business entity which submits  an  application  to
 27    the athletic commission for a license or permit pursuant to this chapter.
 28        (c3)  "Booking  agent"  means persons who act as bookers, agents, agencies
 29    and representatives who secure engagements and contracts for boxers.
 30        (d4)  "Boxing" means the pugilistic act of attack  and  defense  with  the
 31    fists,  practiced  as  a  sport. The term includes all variations of the sport
 32    permitting or using other parts of the human body to  deliver  blows  upon  an
 33    opponent  including,  but  not limited to, the foot, knee, leg, elbow or head.
 34    "Boxing" includes, but is not limited to, kickboxing and martial arts but does
 35    not include professional wrestling.
 36        (e5)  "Broadcast" means any audio or visual transmission sent by any means
 37    of signal within, into, or from this state, whether  live  or  taped  or  time
 38    delayed, and includes any replays thereof.
 39        (6)  "Cable  system operator" means any person who makes available or pro-
 40    vides customers a closed-circuit telecast which is pay-per-view, including any
 41    person who does so as a direct broadcast satellite provider  or  other  multi-
 42    channel video service provider.
 43        (7)  "Cable  television  system" means a broadcast system that transmits a
                                                                        
                                           2
                                                                        
  1    television signal for delivery to an end user who is required to pay  for  the
  2    right  to receive the transmission. This includes, but is not limited to, sig-
  3    nal transmission via cable, microwave and broadcast satellite.
  4        (8)  "Cable telecast" means a broadcast over a cable television system.
  5        (f9)  "Closed-circuit telecast" means any telecast of professional  boxing
  6    contests,  professional  boxing  exhibitions or professional wrestling exhibi-
  7    tions which is not intended to be available for viewing without the payment of
  8    a fee, collected or based upon each telecast viewed, or for the  privilege  of
  9    viewing the telecast, including pay-per-view telecasts.
 10        (g10) "Club"  means  an incorporated or unincorporated association or body
 11    of individuals voluntarily united and acting together for some common or  spe-
 12    cial purpose.
 13        (h11) "College" and/or "univerity" "university" means:
 14        (ia)   An educational institution of higher learning that typically grants
 15        associate's, bachelor's, master's or doctorate degrees;
 16        (iib)  A division or school of a university; and
 17        (iiic) As  used  in  this  chapter, also includes educational institutions
 18        known as junior colleges, community  colleges  and  professional-technical
 19        schools.
 20        (i12) "Commission" means the state athletic commission.
 21        (j13) "Commissioner" means the state athletic commissioner.
 22        (k14) "Contest"  means  a match in which the participants strive earnestly
 23    in good faith to win.
 24        (l15) "Contestant" means an individual who takes part as a competitor in a
 25    boxing contest, boxing exhibition or wrestling exhibition.
 26        (m16) "Corner person" means, but shall not be limited  to,  a  trainer,  a
 27    second, or any other individual who attends the contestant during a match.
 28        (n17) "Exhibition"  means  an engagement in which the participants show or
 29    display their skill without necessarily striving to win, such as  a  wrestling
 30    match  between  professional  wrestlers  or boxing match where contestants are
 31    sparring.
 32        (18) "In-home pay-per-view telecast" means a closed-circuit telecast  that
 33    is  sold  for  viewing  at a residence and where no separate fee is charged to
 34    individual viewers by the subscriber, or any other person, for  the  right  to
 35    view the telecast.
 36        (o19) "Judge"  means  an  individual other than a referee who shall have a
 37    vote in determining the winner of any contest.
 38        (p20) "Kickboxing" means any form of competitive  pugilistic  professional
 39    contest  or professional exhibition in which blows are delivered with the hand
 40    and any part of the foot.
 41        (q21) "License" means a certificate issued by the commission  to  partici-
 42    pants  of sanctioned professional contests and exhibitions or amateur contests
 43    and exhibitions which are not exempt from regulation under section  54-406(2),
 44    Idaho Code, which is required for participation in such events.
 45        (r22) "Licensee"  means a person who has been issued a license by the com-
 46    mission.
 47        (s23) "Manager" means a person who controls or administers the affairs  of
 48    any  professional contestant. The term "manager" includes a person acting as a
 49    booking agent or a person acting as the representative of a manager.
 50        (t24) "Martial arts" means any form of karate, kung fu, tae  kwon-do  kwon
 51    do, sumo, judo or any other system or form of combat or self-defense art.
 52        (u25) "Matchmaker"  means  a person who brings together or induces profes-
 53    sional boxing or wrestling contestants to participate in  a  boxing  contests,
 54    boxing  exhibition  or professional wrestling exhibitions, which is not exempt
 55    from regulation pursuant to section 54-406(2), Idaho Code,  or  a  person  who
                                                                        
                                           3
                                                                        
  1    arranges professional such contests or professional exhibitions.
  2        (v26) "Participant" means any person who is required by this chapter to be
  3    licensed  by the commission in connection with taking part in or being associ-
  4    ated with a boxing contest, boxing exhibition or wrestling exhibition.
  5        (27) "Pay-per-view" means a closed-circuit telecast made  available  by  a
  6    cable system operator, which is not intended to be available for viewing with-
  7    out  the  payment of a fee, collected for or based upon each event viewed, for
  8    the privilege of viewing the telecast.
  9        (w28) "Person" means any individual, partnership, limited  liability  com-
 10    pany, club, association, corporation, organization, secondary school, college,
 11    university, trust or other legal entity.
 12        (x29) "Physician"  means  an  individual  licensed  under the laws of this
 13    state to engage in the general practice of medicine or osteopathic medicine.
 14        (y30) "Professional boxer" means an individual eighteen (18) years of  age
 15    or older who participates as a contestant in a boxing event for money, prizes,
 16    or  purses, or who teaches, instructs, or assists in the practice of boxing or
 17    sparring as a means of obtaining pecuniary gain.
 18        (z31) "Professional contest and professional exhibition" means any  boxing
 19    match  or  wrestling  exhibition conducted within this state involving profes-
 20    sional boxing or wrestling contestants.
 21        (aa32) "Professional wrestler" means an individual eighteen (18) years  of
 22    age  or  older  who participates as a contestant in a wrestling exhibition for
 23    money, prizes, or purses, or who teaches, instructs, or assists  in  wrestling
 24    exhibitions as a means of obtaining pecuniary gain.
 25        (bb33) "Professional  wrestling"  means an activity, other than boxing, in
 26    which contestants struggle hand-to-hand primarily for the purpose of providing
 27    entertainment to spectators and which does not comprise a bona  fide  athletic
 28    contest or competition.
 29        (cc34) "Promoter"  means  any person including an owner, officer, partner,
 30    member, director, employee or shareholder thereof, who produces,  arranges  or
 31    stages  any professional wrestling exhibition, any professional boxing contest
 32    or boxing exhibition, or any amateur boxing contest or exhibition which is not
 33    exempt from regulation pursuant to section 54-406(2), Idaho Code.
 34        (dd35) "Pugilistic" means an act related  to  the  skill  or  practice  of
 35    fighting with the fists.
 36        (ee36) "Purse"  means the financial guarantee or any other remuneration or
 37    thing of value for which a person participates in a professional  boxing  con-
 38    test, professional boxing exhibition or professional wrestling exhibition.
 39        (ff37) "Ring official" means any individual who performs an official func-
 40    tion  during  the progress of a regulated boxing contest or a regulated boxing
 41    or wrestling exhibition including, but not limited  to,  timekeepers,  judges,
 42    referees and attending physicians.
 43        (gg38) "Sanctioning  permit" means a license issued by the commission to a
 44    promoter which that authorizes the holding of boxing contests, boxing  exhibi-
 45    tions or professional wrestling exhibitions.
 46        (hh39) "Secondary  school" shall mean a school which that, for operational
 47    purposes, is organized and administered on  the  basis  of  grades  seven  (7)
 48    through twelve (12), inclusive, or any combination thereof.
 49        (ii40) "Sparring"  means  to  engage  in  a form of boxing with jabbing or
 50    feinting movements, and the exchange of few heavy blows, such as occurs  in  a
 51    practice or exhibition boxing match.
 52        (41) "Telecast  promoter"  means  any  promoter  who shows or causes to be
 53    shown in this state a closed-circuit telecast of any  boxing  contest,  boxing
 54    exhibition or professional wrestling exhibition, which is not exempt from reg-
 55    ulation pursuant to section 54-406(2), Idaho Code, whether or not the telecast
                                                                        
                                           4
                                                                        
  1    or  event  originates  in  this state. "Telecast promoter" shall not include a
  2    cable system operator.
  3        (jj42) "Trainer" means an individual who assists, coaches or instructs any
  4    boxer or wrestler with respect to physical conditioning, strategy,  techniques
  5    or  preparation for competition in boxing contests, boxing exhibitions or pro-
  6    fessional wrestling exhibitions which are not exempt from regulation  pursuant
  7    to section 54-406(2), Idaho Code.
  8        (2)  To  the  extent  the commission deems pertinent, any specialized term
  9    not otherwise defined in this chapter may be defined by rule.
                                                                        
 10        SECTION 2.  That Section 54-411, Idaho Code, be, and the  same  is  hereby
 11    amended to read as follows:
                                                                        
 12        54-411.  STATEMENT  PROMOTER'S  AND GROSS RECEIPTS REPORTS OF EVENT -- TAX
 13    ON GROSS RECEIPTS. (1) Any promoter as herein provided shall, within seven (7)
 14    of a boxing contest, boxing exhibition, or professional  wrestling  exhibition
 15    that will take place in Idaho, which is not exempt from regulation pursuant to
 16    section  54-406(2),  Idaho  Code,  must  file  a promoter's sanctioning permit
 17    application with the commission at least thirty (30) days prior to the holding
 18    of any boxing contest or exhibition, file with the commission a statement set-
 19    ting the event. The promoter's sanctioning permit application shall set  forth
 20    the location, time and date of the event; the name of each contestant, and his
 21    manager or managers; and such other information as the commission may require.
 22    Any promoter shall, within seven (7) days before holding any wrestling exhibi-
 23    tion, file with the commission a statement setting forth the name of each con-
 24    testant,  his manager or managers and such other information as the commission
 25    may require. Participant changes within a twenty-four (24) hour period regard-
 26    ing a wrestling exhibition may only be allowed after notice to made  with  the
 27    approval of the commission, if the new participant holds a valid license under
 28    this  chapter. Within seventy-two (72) hours after the termination of any con-
 29    test or exhibition the promoter shall file with the designated commission rep-
 30    resentative a gross receipts report,  duly  verified  as  the  commission  may
 31    require showing the number of tickets sold for such contest, the price charged
 32    for  such  tickets  and the gross receipts thereof, and such other and further
 33    information as the commission may require. The promoter shall pay to the  com-
 34    mission  at  the  time  of filing the above report a tax equal to five percent
 35    (5%) of the gross receipts for deposit by the commission.
 36        (2)  In addition to the payment of any other fees and moneys due  pursuant
 37    to  the provisions of this chapter and the rules of the commission, an assess-
 38    ment in an amount equal to five percent (5%) of the total  gross  receipts  of
 39    any  boxing  contest, boxing exhibition, or professional wrestling exhibition,
 40    which is not exempt from regulation pursuant to section 54-406(2), Idaho Code,
 41    exclusive of any federal ad valorem tax or property tax imposed by any politi-
 42    cal subdivision of this state, shall be hereby levied and shall be remitted by
 43    every promoter to the commission.
 44        (3)  For the purposes of this section, total gross receipts of every  pro-
 45    moter of a regulated event taking place in Idaho shall include:
 46        (a)  The  gross price charged by the promoter for the sale, lease or other
 47        use of broadcasting including, but  not  limited  to,  radio,  television,
 48        including  cable  television,  pay-per-view  television and closed-circuit
 49        television, or motion picture rights of any boxing contest, boxing exhibi-
 50        tion or professional wrestling exhibition  conducted  within  this  state,
 51        which  is  not exempt from regulation pursuant to section 54-406(2), Idaho
 52        Code, without any deductions for commissions, brokerage fees, distribution
 53        fees, advertising or other expenses or  charges,  except  any  federal  ad
                                                                        
                                           5
                                                                        
  1        valorem  tax  or property tax imposed by any political subdivision of this
  2        state. In the case of an in-home  pay-per-view  telecast,  gross  receipts
  3        include  the  total  amount of all fees that were charged in order to view
  4        the event, except any federal ad valorem tax or property  tax  imposed  by
  5        any political subdivision of this state; and
  6        (b)  The face value of all tickets sold.
  7        (4)  To the extent the promoter of a regulated event taking place in Idaho
  8    engages  in  actions coming within the definition of a telecast promoter, this
  9    section and section 54-413A, Idaho Code, shall be applied in such a way as  to
 10    ensure  that  the  promoter's  gross  receipts  from the sale of Idaho closed-
 11    circuit telecast rights are not double taxed.
 12        (5)  Payment of the assessment on gross receipts, excepting assessments on
 13    the sale of motion picture rights or assessments on the sale of Idaho  closed-
 14    circuit  telecast rights, shall be due within seventy-two (72) hours after the
 15    holding of a boxing contest, boxing exhibition or professional wrestling exhi-
 16    bition, which is not exempt from regulation  pursuant  to  section  54-406(2),
 17    Idaho  Code,  and shall be accompanied by a gross receipts report in such form
 18    as shall be prescribed by the commission.
 19        (6)  The first payment of the assessment on gross receipts  received  from
 20    the  sale  of motion picture rights shall be due at the end of the month after
 21    the date of the sale of the motion picture rights, and further payments  shall
 22    be  due every thirty (30) days thereafter, during the presentation of the pic-
 23    ture, and shall be accompanied by a gross receipts  report  in  such  form  as
 24    shall be prescribed by the commission.
 25        (7)  The  number  of complimentary tickets shall be limited to two percent
 26    (2%) of the total tickets sold per event location. All  complimentary  tickets
 27    exceeding this set amount shall be subject to taxation.
 28        (38)  Gross receipts reports signed under oath shall also include:
 29        (a)  The name of the promoter;
 30        (b)  The   boxing  contest,  boxing  exhibition  or  wrestling  exhibition
 31        sanctioning permit number;
 32        (c)  The promoter's business address and any license or sanctioning permit
 33        number required of such promoter by law;
 34        (d)  Gross receipts as specified by this section, during the period speci-
 35        fied by this section; and
 36        (e)  Such further information as the commission may require to  enable  it
 37        to  compute  correctly  and collect the assessment levied pursuant to this
 38        section.
 39        (49)  In addition to the information required on gross  receipts  reports,
 40    the  commission  may  request, and the promoter shall furnish, any information
 41    deemed necessary for a correct computation of the assessment  levied  pursuant
 42    to this section.
 43        (510) All  levies  pursuant to this section shall be collected by the com-
 44    mission and shall be deposited in the state treasury  to  the  credit  of  the
 45    state athletic commission fund.
 46        (611) The moneys collected from the assessment levied pursuant to the pro-
 47    visions  of  this section shall be in addition to all other revenues and funds
 48    received by the state athletic commission.
 49        (712) The promoter shall compute and pay to the  commission  the  required
 50    assessment  due.  If the payment of the assessment is not postmarked or deliv-
 51    ered to the commission as specified in subsection (15) or (6) of this section,
 52    whichever is appropriate, the assessment shall be delinquent from such date.
 53        (813) It shall be the duty of every promoter  required  to  make  a  gross
 54    receipts report and pay any assessment pursuant to the provisions of this sec-
 55    tion  to  keep and preserve suitable records and documents which may be neces-
                                                                        
                                           6
                                                                        
  1    sary to determine the amount of assessment due as will substantiate and  prove
  2    the accuracy of such reports. All such records shall be preserved for a period
  3    of  three  (3)  years, unless the commission, in writing, has authorized their
  4    destruction or disposal at an earlier date, and shall be open  to  examination
  5    at any time by the commission or by its authorized agents.
                                                                        
  6        SECTION  3.  That  Section  54-413, Idaho Code, be, and the same is hereby
  7    repealed.
                                                                        
  8        SECTION 4.  That Chapter 4, Title 54, Idaho Code,  be,  and  the  same  is
  9    hereby  amended by the addition thereto of a NEW SECTION, to be known and des-
 10    ignated as Section 54-413, Idaho Code, and to read as follows:
                                                                        
 11        54-413.  CLOSED-CIRCUIT TELECAST PERMIT. (1)  Prior to showing  a  closed-
 12    circuit  telecast of a professional boxing or wrestling event in this state, a
 13    telecast promoter  must first apply  for  a  permit  to  be  issued  upon  the
 14    approval  of the commission. The application for permit shall be on forms pro-
 15    vided by the commission and shall contain:
 16        (a)  The date of the broadcast;
 17        (b)  The origination address of the broadcast;
 18        (c)  A statement that the applicant acknowledges  responsibility  for  the
 19        payment of an assessment to the commission;
 20        (d)  The  time  frame  by  which the post-event assessment reports must be
 21        filed;
 22        (e)  The portion of the closed-circuit rights for which the  applicant  is
 23        acknowledging responsibility; and
 24        (f)  Such  other information as the commission may deem necessary to carry
 25        out the provisions of this chapter.
 26        (2)  There shall be no fee  for  a  permit  issued  for  a  closed-circuit
 27    telecast.
 28        (3)  The  permit  must be filed a minimum of thirty (30) days prior to the
 29    date of the broadcast.
                                                                        
 30        SECTION 5.  That Chapter 4, Title 54, Idaho Code,  be,  and  the  same  is
 31    hereby  amended by the addition thereto of a NEW SECTION, to be known and des-
 32    ignated as Section 54-413A, Idaho Code, and to read as follows:
                                                                        
 33        54-413A.  TELECAST PROMOTERS -- LICENSE, REPORT AND PENALTIES.  (1)  Where
 34    the  Idaho  distribution  rights for a closed-circuit telecast to be viewed in
 35    this state are in whole owned by, sold to, acquired by, or held by any  person
 36    who  intends  to  or subsequently sells or, in some other manner, extends such
 37    rights in part to another, then such person is deemed to be  a  telecast  pro-
 38    moter.  The  commission may provide, by rule, for additional licensed telecast
 39    promoters to participate in the distribution rights and share in the liability
 40    for assessments to be paid to the commission. Closed-circuit  telecasts  of  a
 41    boxing  contest, boxing exhibition or professional wrestling exhibition, which
 42    is not exempt from regulation pursuant to section 54-406(2), Idaho Code, shall
 43    not be telecast from, in, or into this state except under the  auspices  of  a
 44    telecast  promoter  licensed  in  this  state.  The telecast promoter shall be
 45    responsible for filing the appropriate reports with and paying assessments  to
 46    the commission.
 47        (2)  In  the  case  of closed-circuit telecasts to be viewed in this state
 48    other than as in-home pay-per-view  telecasts,  the  telecast  promoter  shall
 49    notify  the  commission  of  the  names  and addresses of all facilities to or
 50    through which the closed-circuit telecast will be  shown  fourteen  (14)  days
                                                                        
                                           7
                                                                        
  1    prior  to the date of the closed-circuit event and shall provide daily updates
  2    to the commission of any additions and deletions of facilities.
  3        (3)  Any person or facility  owner  or  operator  intending  to  show  the
  4    closed-circuit  telecast  in  this state other than as an in-home pay-per-view
  5    telecast, whether or not an admission fee will be charged, must receive autho-
  6    rization to show  the  telecast  from  the  telecast  promoter  prior  to  the
  7    telecast.  The  showing of a closed-circuit telecast, whether or not an admis-
  8    sion fee is charged, without the authorization of the licensed  telecast  pro-
  9    moter  is  prohibited.  Delayed  showing  of  a  closed-circuit  telecast also
 10    requires the authorization of  the  licensed  telecast  promoter.  Information
 11    received by the commission regarding persons showing a closed-circuit telecast
 12    in  violation  of  this  section  shall be furnished to the appropriate county
 13    prosecutor's office for prosecution.
 14        (4)  In the case of facilities at  or  through  which  the  closed-circuit
 15    telecast  is  shown  in  this  state  other  than  as  an in-home pay-per-view
 16    telecast:
 17        (a)  The telecast promoter shall within eight (8) days after the telecast,
 18        inclusive of mailing time, file  with  the  commission  a  written  report
 19        detailing  the name, address, telephone number, contact person's name, and
 20        the details of the payment  arrangement  for  the  right  to  receive  the
 21        telecast for each facility to which the broadcast was transmitted.
 22        (b)  The  report  shall  be  accompanied by an assessment payment equal to
 23        five percent (5%) of the gross receipts generated  from  the  telecast  in
 24        Idaho,  including  the total amount of all fees that were charged in order
 25        to view the event, except any federal ad valorem tax imposed by any polit-
 26        ical subdivision of this state.
 27        (c)  The commission may require the owner  or  operator  of  the  facility
 28        where  the telecast is being shown to file a report containing information
 29        regarding the amount paid to the telecast promoter for the right to broad-
 30        cast the telecast, the quality of the audio and video signal and any other
 31        information the commission deems appropriate.
 32        (5)  In the case of closed-circuit  telecasts  viewed  in  this  state  as
 33    in-home pay-per-view telecasts:
 34        (a)  The  telecast  promoter  shall,  within  thirty  (30)  days following
 35        receipt of the notice of the assessment from the commission, cause  to  be
 36        filed with the commission an assessment payment equal to five percent (5%)
 37        of  the gross receipts generated from the telecast within Idaho, including
 38        the total amount of all fees that were charged in order to view the event,
 39        except any federal ad valorem tax or property tax imposed by any political
 40        subdivision of this state.
 41        (b)  The cable system operator shall withhold from the proceeds due to the
 42        telecast promoter the five percent (5%) assessment payment required pursu-
 43        ant to subsection (5)(a) of this section and remit the assessment  to  the
 44        commission  on  behalf of the telecast promoter. The cable system operator
 45        shall not be liable for the remittance of the assessment fee  required  in
 46        subsection  (5)(a) of this section from any proceeds due to the cable sys-
 47        tem operator from its pay-per-view events.
 48        (c)  The cable system operator shall be required to file reports with  the
 49        commission  containing information regarding the number of orders sold and
 50        the price charged for orders and  any  other  information  the  commission
 51        deems appropriate.
 52        (d)  Cable  system operators shall not be liable to the commission for the
 53        assessment payment. Nothing in this section shall be deemed to  prevent  a
 54        cable  system  operator  from billing its customer for the assessment pay-
 55        ment.
                                                                        
                                           8
                                                                        
  1        (e)  The commission shall provide the  telecast  promoter  with  a  report
  2        detailing the number of orders and the assessment payment due.
  3        (6)  Any  telecast  promoter  who  willfully makes a  false and fraudulent
  4    report under this section is guilty of perjury and, upon conviction,  is  sub-
  5    ject  to  punishment  as provided by law. This penalty shall be in addition to
  6    any other penalties imposed in this chapter.
  7        (7)  Any telecast promoter who willfully fails, neglects,  or  refuses  to
  8    make a report or cause to be paid the assessment as prescribed, or who refuses
  9    to  allow  the  commission  or  its  designee to examine the books, papers and
 10    records of any promotion, is guilty of a misdemeanor, punishable  as  provided
 11    by  law.  Any  remitter  who willfully fails, neglects or refuses to remit the
 12    assessment as prescribed, is guilty of a misdemeanor, punishable  as  provided
 13    by law.
 14        (8)  By  rule,  the commission shall establish administrative penalties as
 15    specified in this chapter for the late payment of  assessments,  noncompliance
 16    with  this  chapter, and the late filing of reports and shall prescribe condi-
 17    tions, if any, under which a penalty may be waived.
 18        (9)  No cable system operator shall be:
 19        (a)  Prohibited from broadcasting any  professional  boxing  or  wrestling
 20        event,  whether  or  not the promoter or distributor is in compliance with
 21        the provisions of this chapter, for which it has a contract or other legal
 22        obligation to broadcast; and
 23        (b)  Required, as a result of any noncompliance  with  the  provisions  of
 24        this  chapter  by any promoter or distributor, to modify, delete or cancel
 25        any programming which it has a contractual or legal obligation to air.
 26        (10)  This section shall not apply in any manner to the sale of  broadcast
 27    rights  which  are  telecast  through any basic or premium channel programming
 28    broadcast on cable television systems within this state, but shall apply  only
 29    to a closed-circuit telecast of a boxing contest, boxing exhibition or profes-
 30    sional  wrestling  exhibition, which is not exempt from regulation pursuant to
 31    section 54-406(2), Idaho Code, for which a separate per event fee  is  charged
 32    to a subscriber or viewer.

Statement of Purpose / Fiscal Impact



                       STATEMENT OF PURPOSE

                             RS 14721

The Idaho Athletic Commission (IAC) has not historically
generated sufficient funds from fees and taxes imposed on
regulated parties to pay expenses.  This legislation modifies the
existing law to enact a pay-per view tax (PPV tax) on the
proceeds received by fight promoters who broadcast events on pay-
per-view television into Idaho.  The amount of the tax due would
equal 5% of the subscription price charged to the consumer
multiplied by the number of subscriptions sold to watch an event
in Idaho.


                           FISCAL NOTE

It is estimated that the PPV tax will provide additional annual
revenues to the IAC of between $20,000 and $40,000 which will
provide revenue adequate for the Commission to pay for its
operations.


Contact
Name:  Representative Jim Clark 
Phone: 332-1000


STATEMENT OF PURPOSE/FISCAL NOTE                      H 151