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S.B. 7
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House Committee Amendments 3-2-2005 ch/jlw
This document includes Senate Committee Amendments incorporated into the bill on
Wed, Jan 19, 2005 at 11:16 AM by rday. -->
This document includes Senate 3rd Reading Floor Amendments incorporated into the bill
on Wed, Feb 23, 2005 at 11:45 AM by rday. -->
This document includes House Committee Amendments incorporated into the bill on
Wed, Mar 2, 2005 at 8:47 PM by chopkin. -->
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FUNDING FOR TOURISM
2
2005 GENERAL SESSION
3
STATE OF UTAH
4
Sponsor: Scott K. Jenkins
|
5
Karen Hale
|
David L. Thomas
|
Carlene M. Walker
|
6
7
LONG TITLE
8
General Description:
9
This bill modifies provisions relating to tourism advertising, marketing, and branding.
10
Highlighted Provisions:
11
This bill:
12
. modifies the duties, membership, and powers of the Board of Travel Development
13
within the Division of Travel Development;
14
. modifies provisions of the Tourism Marketing Performance Fund to establish a
15
budget base and provide a set-aside of a percentage of the increase in
16
tourism-generated tax revenue as a funding source for increased tourism promotion;
17
. provides for the creation and funding of a Cooperative Program with cities,
18
counties, and nonprofit destination marketing organizations to advertise and
19
promote tourism;
20
. provides for sunset review of the Board of Travel Development; and
21
. makes certain technical changes.
22
Monies Appropriated in this Bill:
23
This bill appropriates:
24
. H. [
$10,000,000 as an ongoing appropriation subject to future budget
24a
constraints and
25
with an automatic $1,000,000 reduction in each fiscal year following
] $18,000,000 from the
25a
General Fund for .H fiscal year
26
2005-06 H. only to the Tourism Marketing Performance Fund .H .
27
Other Special Clauses:
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This bill takes effect on July 1, 2005.
29
Utah Code Sections Affected:
30
AMENDS:
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9-3-201, as last amended by Chapter 109, Laws of Utah 1994
32
9-3-202, as last amended by Chapter 176, Laws of Utah 2002
33
9-3-203, as last amended by Chapter 109, Laws of Utah 1994
34
9-3-204, as last amended by Chapter 207, Laws of Utah 2002
35
63-55-209, as last amended by Chapters 37 and 90, Laws of Utah 2004
36
ENACTS:
37
9-3-207, Utah Code Annotated 1953
38
REPEALS:
39
9-2-1701, as enacted by Chapter 301, Laws of Utah 1997
40
9-2-1702, as last amended by Chapter 159, Laws of Utah 2001
41
9-2-1703, as last amended by Chapter 159, Laws of Utah 2001
42
9-2-1703.5, as last amended by Chapters 16 and 83, Laws of Utah 2003
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9-2-1704, as last amended by Chapter 159, Laws of Utah 2001
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9-2-1705, as last amended by Chapter 159, Laws of Utah 2001
45
9-2-1706, as enacted by Chapter 159, Laws of Utah 2001
46
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Be it enacted by the Legislature of the state of Utah:
48
Section 1.
Section
9-3-201
is amended to read:
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9-3-201. Board of Travel Development.
50
(1) There is created within the department the Board of Travel Development.
51
(2) The board shall advise the division [in] on the division's planning, policies, and
52
strategies and on trends and opportunities for travel development that may exist in the various
53
areas of the state.
54
(3) The board shall perform other duties as required by Section
9-3-203
.
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Section 2.
Section
9-3-202
is amended to read:
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9-3-202. Members -- Meetings -- Expenses.
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(1) (a) The board shall consist of [nine] 13 members appointed by the governor to
58
four-year terms of office with the consent of the Senate.
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(b) Notwithstanding the requirements of Subsection (1)(a), the governor shall, at the
60
time of appointment or reappointment, adjust the length of terms to ensure that the terms of
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board members are staggered so that approximately half of the board is appointed every two
62
years.
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(2) The members may not serve more than two full consecutive terms unless the
64
governor determines that an additional term is in the best interest of the state.
65
(3) Not more than [five] seven members of the board may be of the same political
66
party.
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(4) (a) The members shall be representative of:
68
(i) all areas of the state with six being appointed from separate geographical areas as
69
provided in Subsection (4)(b); and
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(ii) a diverse mix of [the travel and] business ownership or executive management of
71
tourism related industries.
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(b) The geographical representatives shall be appointed as follows:
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(i) one member from Salt Lake, Tooele, or Morgan County;
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(ii) one member from Davis, Weber, Box Elder, Cache, or Rich County;
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(iii) one member from Utah, Summit, Juab, or Wasatch County;
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(iv) one member from Carbon, Emery, Grand, Duchesne, Daggett, or Uintah County;
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(v) one member from San Juan, Piute, Wayne, Garfield, or Kane County; and
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(vi) one member from Washington, Iron, Beaver, Sanpete, Sevier, or Millard County.
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(c) The [travel and,] tourism industry representatives of ownership or executive
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management shall be appointed [from among active participants in the ownership or
81
management of travel and tourism related businesses.] as follows:
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(i) one member from ownership or executive management of the lodging industry, as
83
recommended by the lodging industry for the governor's consideration;
84
(ii) one member from ownership or executive management of the restaurant industry,
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as recommended by the restaurant industry for the governor's consideration;
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(iii) one member from ownership or executive management of the ski industry, as
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recommended by the ski industry for the governor's consideration; and
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(iv) one member from ownership or executive management of the motor vehicle rental
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industry, as recommended by the motor vehicle rental industry for the governor's consideration.
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(d) One member shall be appointed at large from ownership or executive management
91
of business, finance, economic policy, or the academic media marketing community.
92
(e) One member shall be appointed from the Utah Tourism Industry Coalition as
93
recommended by the coalition for the governor's consideration.
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(f) One member shall be appointed to represent the state's counties as recommended by
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the Utah Association of Counties for the governor's consideration.
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(g) (i) The governor may choose to disregard a recommendation made for a board
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member under Subsections (4)(c), (e), and (f).
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(ii) The governor shall request additional recommendations if recommendations are
99
disregarded under Subsection (4)(g)(i).
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(5) When a vacancy occurs in the membership for any reason, the replacement shall be
101
appointed for the unexpired term from the same geographic area or industry representation as
102
the member whose office was vacated.
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(6) [Five] Seven members of the board [constitutes] constitute a quorum for
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conducting board business and exercising board powers.
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(7) The governor shall select one of the board members as chair and one of the board
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members as vice chair, each for a [two-year] four-year term as recommended by the board for
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the governor's consideration.
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(8) (a) Members shall receive no compensation or benefits for their services, but may
109
receive per diem and expenses incurred in the performance of the member's official duties at
110
the rates established by the Division of Finance under Sections
63A-3-106
and
63A-3-107
.
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(b) Members may decline to receive per diem and expenses for their service.
112
(9) The board shall meet [at least once each quarter] monthly or as often as the board
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determines to be necessary at various locations throughout the state.
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(10) Members who may have a potential conflict of interest in consideration of fund
115
allocation decisions shall identify the potential conflict prior to voting on the issue.
116
(11) (a) The board shall determine attendance requirements for maintaining a
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designated board seat.
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(b) If a board member fails to attend according to the requirements established
119
pursuant to Subsection (11)(a), the board member shall be replaced upon written certification
120
from the board chair or vice chair to the governor.
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(c) A replacement appointed by the governor under Subsection (11)(b) shall serve for
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the remainder of the board member's unexpired term.
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Section 3.
Section
9-3-203
is amended to read:
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9-3-203. Board duties.
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(1) The board shall:
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(a) [review] have S [
policy
] s authority to approve a program of [information,] out-of-state
127
advertising, [and publicity relating to the recreational, scenic, historic, highway, and tourist
128
attractions of the state at large; and] marketing, and branding, taking into account the long-term
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strategic plan, economic trends, and opportunities for travel development on a statewide basis,
130
as a condition of the distribution of funds to the division from the Tourism Marketing
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Performance Fund under Section
9-3-207
;
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[(b) encourage and assist in the coordination of the activities of persons, firms,
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associations, corporations, civic groups, and governmental agencies engaged in publicizing,
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developing, and promoting the scenic attractions and tourist advantages of the state.]
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(b) review the division programs for coordination and integration of advertising and
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branding themes to be used whenever possible in all division programs, including recreational,
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scenic, historic, and tourist attractions of the state at large;
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(c) encourage and assist in coordination of the activities of persons, firms, associations,
139
corporations, civic groups, and governmental agencies engaged in publicizing, developing, and
140
promoting the scenic attractions and tourist advantages of the state; and
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(d) (i) establish a Cooperative Program from the monies in the Tourism Marketing
142
Performance Fund under Section
9-3-207
for use by cities, counties, nonprofit destination
143
marketing organizations, and similar public entities for the purpose of supplementing monies
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committed by these entities for advertising and promotion to and for out-of-state residents to
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attract them to visit sites advertised by and attend events sponsored by these entities;
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(ii) the Cooperative Program shall be allocated 20% of the revenues from the Tourism
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Marketing Performance Fund;
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(iii) in accordance with Title 63, Chapter 46a, Utah Administrative Rulemaking Act,
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the board shall make rules:
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(A) establishing eligibility, advertising, and timing requirements, and criteria; and
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(B) providing for an approval process for applications;
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(iv) an application from an eligible applicant to receive monies from the Cooperative
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Program must be submitted on or before the appropriate date established by the board; and
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(v) Cooperative Program monies not used in each fiscal year shall be returned to the
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Tourism Marketing Performance Fund.
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(2) The board may:
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(a) solicit and accept contributions of moneys, services, and facilities from any other
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sources, public or private, and shall use these funds for promoting the general interest of the
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state in travel and tourism[.]; and
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(b) establish subcommittees for the purpose of assisting the board in an advisory role
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only.
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(3) The board may not, except as otherwise provided in Subsection (1)(a), make policy
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related to the management or operation of the division.
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Section 4.
Section
9-3-204
is amended to read:
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9-3-204. Division of Travel Development -- Powers and duties -- Travel
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development plan -- Annual report and survey.
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(1) There is created within the department the Division of Travel Development under
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the administration and general supervision of the director.
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(2) (a) The division shall be under the policy direction of the director.
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(b) The director shall receive approval from the Board of Travel Development under
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Subsection
9-3-203
(1)(a) to execute the out-of-state advertising, marketing, and branding
172
campaign.
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(3) The division shall:
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(a) be the travel development authority of the state;
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(b) develop a travel [promotion] advertising, marketing, and branding program for the
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state;
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(c) develop a plan to increase the economic contribution by tourists visiting the state;
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(d) plan and conduct a program of information, advertising, and publicity relating to
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the recreational, scenic, historic, [highway,] and tourist advantages and attractions of the state
180
at large; and
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(e) encourage and assist in the coordination of the activities of persons, firms,
182
associations, corporations, travel regions, counties, and governmental agencies engaged in
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publicizing, developing, and promoting the scenic attractions and tourist advantages of the
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state[; and].
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(4) Any plan provided for under Subsection (3) shall address, but not be limited to,
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enhancing the state's image, promoting Utah as a year-round destination, encouraging
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expenditures by visitors to the state, and expanding the markets where the state is promoted.
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(5) The division [is encouraged to:] shall conduct a regular and ongoing research
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program to identify statewide economic trends and conditions in the tourism sector of the
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economy and to provide an annual evaluation of the economic efficiency of the advertising and
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branding campaigns conducted under this part to the Legislature's Workforce Services and
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Community and Economic Development Interim Committee and the Economic Development
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and Human Resources Appropriations Subcommittee.
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[(a) conduct surveys on tourism promotion activities undertaken by cities and counties
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within the state; and]
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[(b) in collaboration with the cities and counties surveyed, make an annual report to the
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Legislature on the economic benefit of those activities to the state and the cities and counties
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surveyed by the division.]
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Section 5.
Section
9-3-207
is enacted to read:
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9-3-207. Tourism Marketing Performance Fund.
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(1) There is created a restricted special revenue fund known as the Tourism Marketing
202
Performance Fund.
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(2) The fund shall be administered by the department for use by the division for the
204
purposes listed in Subsection (5).
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(3) (a) The fund shall earn interest.
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(b) All interest earned on fund monies shall be deposited into the fund.
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(4) The fund shall be funded by:
208
(a) H. [
an annual appropriation
] appropriations .H made to the fund by the
208a
Legislature H. [
as set forth in
209
Subsection (7)
] .H ; and
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(b) increases in the sales and use tax revenues derived from the retail sales of
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tourist-oriented goods and services in accordance with this section.
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(5) The director may use fund monies, as authorized and approved by the Board of
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Travel Development, to pay for the statewide advertising, marketing, and branding campaign
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for promotion of the state as conducted by the division.
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(6) (a) For the fiscal year beginning July 1, 2005, the director shall allocate 7.5% of the
216
fund, but not to exceed $750,000, to be distributed to a sports organization for advertising,
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marketing, branding, and promoting Utah in attracting sporting events into the state as
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determined by the department by rule in accordance with Title 63, Chapter 46a, Utah
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Administrative Rulemaking Act.
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(b) For a fiscal year beginning on or after July 1, 2006, the amount distributed under
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Subsection (6)(a) shall be indexed from the July 1, 2005 fiscal year to reflect a percent increase
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or decrease of monies deposited in the fund as compared to the previous fiscal year.
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(c) The monies distributed under Subsection (6)(a) and (b) are nonlapsing.
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(d) The department shall make a rule, in accordance with Title 63, Chapter 46a, Utah
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Administrative Rulemaking Act, providing for an annual accounting to the director and the
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board by a sports organization of the use of monies it receives under Subsection (6)(a) or (b).
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(e) For purposes of this Subsection (6), "sports organization " means an organization
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that is:
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(i) exempt from federal income taxation in accordance with Section 501(3)(c), Internal
230
Revenue Tax Code; and
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(ii) created to foster national and international amateur sports competition to be held in
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the state and sports tourism throughout the state, to include advertising, marketing, branding,
233
and promoting Utah for the purpose of attracting sporting events into the state.
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(7) (a) Monies deposited in the fund shall be as follows for each fiscal year.
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(b) H. [
(i)
] .H For the fiscal year beginning July 1, 2005, the budget base shall be a
236
$10,000,000 appropriation.
237
H. [
(ii)
] (c) .H For each succeeding fiscal year, the budget base shall be the prior
237a
fiscal year's
238
appropriation H. [
, as modified by Subsection S. [(6)] (7) .S (c)
] .H , plus the sales and
238a
use tax revenue
238a
increases
239
identified in Subsection (8).
240
H. [
(c) The $10,000,000 appropriation portion of the budget base shall decrease by
241
$1,000,000 in each fiscal year following fiscal year 2005-06.
] .H
242
(d) Monies in the fund are nonlapsing.
243
(8) (a) In fiscal years 2006 through 2015, a portion of the state sales and use tax
244
revenues determined under this Subsection (8) shall be deposited to the credit of the fund.
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(b) The State Tax Commission shall determine the amount to be deposited in the fund
246
under this Subsection (8) in each fiscal year by applying the following formula: if the increase
247
in the state sales and use tax revenues derived from the retail sales of tourist-oriented goods
248
and services in the fiscal year two years prior to the fiscal year in which the deposit is to be
249
made to the fund is at least 3% over the state sales and use tax revenues derived from the retail
250
sales of tourist-oriented goods and services generated in the fiscal year three years prior to the
251
fiscal year in which the deposit is to be made, an amount equal to 1/2 of the state sales and use
252
tax revenues generated above the 3% increase shall be calculated by the commission and
253
deposited by the state treasurer to the credit of the fund.
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(c) Total deposits in the fund in any fiscal year under Subsections (8)(a) and (b) may
255
not exceed the amount deposited in the fund under this section in the fiscal year immediately
256
preceding the current fiscal year by more than $3,000,000.
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(d) As used in this Subsection (8), "sales of tourism-oriented goods and services" are
258
those sales by businesses registered with the State Tax Commission under the following codes
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of the 1997 North American Industry Classification System of the federal Executive Office of
260
the President, Office of Management and Budget:
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(i) NAICS Code 453 Miscellaneous Store Retailers;
262
(ii) NAICS Code 481 Passenger Air Transportation;
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(iii) NAICS Code 487 Scenic and Sightseeing Transportation;
264
(iv) NAICS Code 711 Performing Arts, Spectator Sports and Related Industries;
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(v) NAICS Code 712 Museums, Historical Sites and Similar Institutions;
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(vi) NAICS Code 713 Amusement, Gambling and Recreation Industries;
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(vii) NAICS Code 721 Accommodations;
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(viii) NAICS Code 722 Food Services and Drinking Places;
269
(ix) NAICS Code 4483 Jewelry, Luggage, and Leather Goods Stores;
270
(x) NAICS Code 4853 Taxi and Limousine Service;
271
(xi) NAICS Code 4855 Charter Bus;
272
(xii) NAICS Code 5616 Travel Arrangement and Reservation Services;
273
(xiii) NAICS Code 44611 Pharmacies and Drug Stores;
274
(xiv) NAICS Code 45111 Sporting Goods Stores;
275
(xv) NAICS Code 45112 Hobby Toy and Game Stores;
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(xvi) NAICS Code 45121 Book Stores and News Dealers;
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(xvii) NAICS Code 445120 Convenience Stores without Gas Pumps;
278
(xviii) NAICS Code 447110 Gasoline Stations with Convenience Stores;
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(xix) NAICS Code 447190 Other Gasoline Stations;
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(xx) NAICS Code 532111 Passenger Car Rental; and
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(xxi) NAICS Code 532292 Recreational Goods Rental.
282
Section 6.
Section
63-55-209
is amended to read:
283
63-55-209. Repeal dates, Title 9.
284
(1) Title 9, Chapter 1, Part 8, Commission on National and Community Service Act, is
285
repealed July 1, 2014.
286
(2) Title 9, Chapter 2, Part 4, Enterprise Zone Act, is repealed July 1, 2008.
287
(3) (a) Title 9, Chapter 2, Part 16, Recycling Market Development Zone Act, is
288
repealed July 1, 2010.
289
(b) Sections
59-7-610
and
59-10-108.7
, regarding tax credits for certain persons in
290
recycling market development zones, are repealed for taxable years beginning on or after
291
January 1, 2011.
292
(c) Notwithstanding Subsection (3)(b), a person may not claim a tax credit under
293
Section
59-7-610
or
59-10-108.7
:
294
(i) for the purchase price of machinery or equipment described in Section
59-7-610
or
295
59-10-108.7
if the machinery or equipment is purchased on or after July 1, 2010; or
296
(ii) for an expenditure described in Subsection
59-7-610
(1)(b) or
59-10-108.7
(1)(b), if
297
the expenditure is made on or after July 1, 2010.
298
(d) Notwithstanding Subsections (3)(b) and (c), a person may carry forward a tax credit
299
in accordance with Section
59-7-610
or
59-10-108.7
if:
300
(i) the person is entitled to a tax credit under Section
59-7-610
or
59-10-108.7
; and
301
(ii) (A) for the purchase price of machinery or equipment described in Section
302
59-7-610
or
59-10-108.7
, the machinery or equipment is purchased on or before June 30, 2010;
303
or
304
(B) for an expenditure described in Subsection
59-7-610
(1)(b) or
59-10-108.7
(1)(b),
305
the expenditure is made on or before June 30, 2010.
306
(4) Title 9, Chapter 2, Part 19, Utah Venture Capital Enhancement Act, is repealed July
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1, 2008.
308
(5) Title 9, Chapter 3, Part 2, Division of Travel Development is repealed July 1, 2015.
309
[(5)] (6) Title 9, Chapter 3, Part 3, Heber Valley Historic Railroad Authority, is
310
repealed July 1, 2009.
311
[(6)] (7) Title 9, Chapter 4, Part 9, Utah Housing Corporation Act, is repealed July 1,
312
2006.
313
Section 7. Repealer.
314
This bill repeals:
315
Section 9-2-1701, Purpose.
316
Section 9-2-1702, Definitions.
317
Section 9-2-1703, Creation and administration of fund.
318
Section 9-2-1703.5, Appropriations to the fund.
319
Section 9-2-1704, Distribution of fund monies -- Determination of recipients.
320
Section 9-2-1705, Creation of Tourism Marketing Performance Fund Committee --
321
Members -- Appointment -- Qualifications --Terms -- Quorum -- Per diem and expenses
322
-- Staff.
323
Section 9-2-1706, Duties of Tourism Marketing Performance Fund Committee.
324
Section 8. Appropriation.
325
There is appropriated from the General Fund for fiscal year S [
2004-05
]
2005-06
s
325a
H. only .H ,
325a
H. [
$10,000,000
] $18,000,000 .H to the
326
Tourism Marketing Performance Fund H. to help pay for the statewide advertising, marketing,
326a
and branding campaign for promotion of the state. .H .
327
Section 9. Effective date.
328
This bill takes effect on July 1, 2005.
Legislative Review Note
as of 12-7-04 8:41 AM
Based on a limited legal review, this legislation has not been determined to have a high
probability of being held unconstitutional.
Office of Legislative Research and General Counsel
Interim Committee Note
as of 12-08-04 11:24 AM
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The Workforce Services and Community and Economic Development Interim Committee
recommended this bill.
Legislative Committee Note
as of 12-08-04 11:24 AM
The Rural Development Legislative Liaison Committee recommended this bill.
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