Download Zipped Amended WordPerfect SB1002S01.ZIP
[Introduced][Status][Bill Documents][Fiscal Note][Bills Directory]
First Substitute S.B. 1002
Text Box
- 1 -
Senate 2nd Reading Amendments 4-20-2005 rd/jlw
This document includes Senate 2nd Reading Floor Amendments incorporated into the bill
on Wed, Apr 20, 2005 at 3:15 PM by rday. -->
Senator Scott K. Jenkins proposes the following substitute bill:
1
FUNDING FOR TOURISM
2
2005 FIRST SPECIAL SESSION
3
STATE OF UTAH
4
Sponsor: Scott K. Jenkins
5
6
LONG TITLE
7
General Description:
8
This bill modifies provisions relating to tourism advertising, marketing, and branding.
9
Highlighted Provisions:
10
This bill:
11
. modifies the duties, membership, and powers of the Board of Tourism
12
Development;
13
. establishes a Tourism Marketing Performance Account within the General Fund to
14
provide a set-aside of a percentage of the increase in tourism-generated tax revenue
15
as a funding source for increased tourism promotion;
16
. provides for the creation and funding of a Cooperative Program with cities,
17
counties, and nonprofit destination marketing organizations to advertise and
18
promote tourism; and
19
. makes certain technical changes.
20
Monies Appropriated in this Bill:
21
This bill appropriates:
22
. S. [
$18,000,000
] $14,000,000 .S from the General Fund for fiscal year 2005-06 only, to
22a
the Tourism
23
Marketing Performance Account; S. [
and
] up to $4,000,000 from any fiscal year 2004-05
23a
General Fund surplus only to the Tourism Marketing Performance Account .S
24
. $10,000,000 from the Tourism Marketing Performance Account for fiscal year
25
2005-06 only, to the Governor's Office of Economic Development.
Text Box
- 2 -
26
Other Special Clauses:
27
This bill takes effect on July 1, 2005.
28
Utah Code Sections Affected:
29
AMENDS:
30
63-38f-1406 (Effective 07/01/05), as renumbered and amended by Chapter 148, Laws
31
of Utah 2005
32
63-38f-1407 (Effective 07/01/05), as renumbered and amended by Chapter 148, Laws
33
of Utah 2005
34
63-38f-1408 (Effective 07/01/05), as renumbered and amended by Chapter 148, Laws
35
of Utah 2005
36
63-38f-1409 (Effective 07/01/05), as renumbered and amended by Chapter 148, Laws
37
of Utah 2005
38
ENACTS:
39
63-38f-1411, Utah Code Annotated 1953
40
REPEALS:
41
63-38f-1401 (Effective 07/01/05), as renumbered and amended by Chapter 148, Laws
42
of Utah 2005
43
63-38f-1402 (Effective 07/01/05), as renumbered and amended by Chapter 148, Laws
44
of Utah 2005
45
63-38f-1403 (Effective 07/01/05), as renumbered and amended by Chapter 148, Laws
46
of Utah 2005
47
63-38f-1404 (Effective 07/01/05), as renumbered and amended by Chapter 148, Laws
48
of Utah 2005
49
63-38f-1405 (Effective 07/01/05), as renumbered and amended by Chapter 148, Laws
50
of Utah 2005
51
52
Be it enacted by the Legislature of the state of Utah:
53
Section 1.
Section
63-38f-1406 (Effective 07/01/05)
is amended to read:
54
63-38f-1406 (Effective 07/01/05). Board of Tourism Development.
55
(1) There is created within the office the Board of Tourism Development.
56
(2) The board shall advise the office [in] on the office's planning, policies, and
Text Box
- 3 -
57
strategies and on trends and opportunities for tourism development that may exist in the
58
various areas of the state.
59
(3) The board shall perform other duties as required by Section
63-38f-1408
.
60
Section 2.
Section
63-38f-1407 (Effective 07/01/05)
is amended to read:
61
63-38f-1407 (Effective 07/01/05). Members -- Meetings -- Expenses.
62
(1) (a) The board shall consist of [nine] 13 members appointed by the governor to
63
four-year terms of office with the consent of the Senate.
64
(b) Notwithstanding the requirements of Subsection (1)(a), the governor shall, at the
65
time of appointment or reappointment, adjust the length of terms to ensure that the terms of
66
board members are staggered so that approximately half of the board is appointed every two
67
years.
68
(2) The members may not serve more than two full consecutive terms unless the
69
governor determines that an additional term is in the best interest of the state.
70
(3) Not more than [five] seven members of the board may be of the same political
71
party.
72
(4) (a) The members shall be representative of:
73
(i) all areas of the state with six being appointed from separate geographical areas as
74
provided in Subsection (4)(b); and
75
(ii) a diverse mix of [the travel and] business ownership or executive management of
76
tourism related industries.
77
(b) The geographical representatives shall be appointed as follows:
78
(i) one member from Salt Lake, Tooele, or Morgan County;
79
(ii) one member from Davis, Weber, Box Elder, Cache, or Rich County;
80
(iii) one member from Utah, Summit, Juab, or Wasatch County;
81
(iv) one member from Carbon, Emery, Grand, Duchesne, Daggett, or Uintah County;
82
(v) one member from San Juan, Piute, Wayne, Garfield, or Kane County; and
83
(vi) one member from Washington, Iron, Beaver, Sanpete, Sevier, or Millard County.
84
(c) The [travel and] tourism industry representatives of ownership or executive
85
management shall be appointed [from among active participants in the ownership or
86
management of travel and tourism related businesses.] as follows:
87
(i) one member from ownership or executive management of the lodging industry, as
Text Box
- 4 -
88
recommended by the lodging industry for the governor's consideration;
89
(ii) one member from ownership or executive management of the restaurant industry,
90
as recommended by the restaurant industry for the governor's consideration;
91
(iii) one member from ownership or executive management of the ski industry, as
92
recommended by the ski industry for the governor's consideration; and
93
(iv) one member from ownership or executive management of the motor vehicle rental
94
industry, as recommended by the motor vehicle rental industry for the governor's consideration.
95
(d) One member shall be appointed at large from ownership or executive management
96
of business, finance, economic policy, or the academic media marketing community.
97
(e) One member shall be appointed from the Utah Tourism Industry Coalition as
98
recommended by the coalition for the governor's consideration.
99
(f) One member shall be appointed to represent the state's counties as recommended by
100
the Utah Association of Counties for the governor's consideration.
101
(g) (i) The governor may choose to disregard a recommendation made for a board
102
member under Subsections (4)(c), (e), and (f).
103
(ii) The governor shall request additional recommendations if recommendations are
104
disregarded under Subsection (4)(g)(i).
105
(5) When a vacancy occurs in the membership for any reason, the replacement shall be
106
appointed for the unexpired term from the same geographic area or industry representation as
107
the member whose office was vacated.
108
(6) [Five] Seven members of the board [constitutes] constitute a quorum for
109
conducting board business and exercising board powers.
110
(7) The governor shall select one of the board members as chair and one of the board
111
members as vice chair, each for a [two-year] four-year term as recommended by the board for
112
the governor's consideration.
113
(8) (a) Members shall receive no compensation or benefits for their services, but may
114
receive per diem and expenses incurred in the performance of the member's official duties at
115
the rates established by the Division of Finance under Sections
63A-3-106
and
63A-3-107
.
116
(b) Members may decline to receive per diem and expenses for their service.
117
(9) The board shall meet [at least once each quarter] monthly or as often as the board
118
determines to be necessary at various locations throughout the state.
Text Box
- 5 -
119
(10) Members who may have a potential conflict of interest in consideration of fund
120
allocation decisions shall identify the potential conflict prior to voting on the issue.
121
(11) (a) The board shall determine attendance requirements for maintaining a
122
designated board seat.
123
(b) If a board member fails to attend according to the requirements established
124
pursuant to Subsection (11)(a), the board member shall be replaced upon written certification
125
from the board chair or vice chair to the governor.
126
(c) A replacement appointed by the governor under Subsection (11)(b) shall serve for
127
the remainder of the board member's unexpired term.
128
[(10)] (12) The board's office shall be in Salt Lake City.
129
Section 3.
Section
63-38f-1408 (Effective 07/01/05)
is amended to read:
130
63-38f-1408 (Effective 07/01/05). Board duties.
131
(1) The board shall:
132
(a) [review] have authority to approve a tourism program of [information,] out-of-state
133
advertising, [and publicity relating to the recreational, scenic, historic, highway, and tourist
134
attractions of the state at large; and] marketing, and branding, taking into account the long-term
135
strategic plan, economic trends, and opportunities for tourism development on a statewide
136
basis, as a condition of the distribution of funds to the office from the Tourism Marketing
137
Performance Account under Section
63-38f-1411
;
138
[(b) encourage and assist in the coordination of the activities of persons, firms,
139
associations, corporations, civic groups, and governmental agencies engaged in publicizing,
140
developing, and promoting the scenic attractions and tourist advantages of the state.]
141
(b) review the office programs for coordination and integration of advertising and
142
branding themes to be used whenever possible in all office programs, including recreational,
143
scenic, historic, and tourist attractions of the state at large;
144
(c) encourage and assist in coordination of the activities of persons, firms, associations,
145
corporations, civic groups, and governmental agencies engaged in publicizing, developing, and
146
promoting the scenic attractions and tourist advantages of the state; and
147
(d) (i) advise the office in establishing a Cooperative Program from the monies in the
148
Tourism Marketing Performance Account under Section
63-38f-1411
for use by cities,
149
counties, nonprofit destination marketing organizations, and similar public entities for the
Text Box
- 6 -
150
purpose of supplementing monies committed by these entities for advertising and promotion to
151
and for out-of-state residents to attract them to visit sites advertised by and attend events
152
sponsored by these entities;
153
(ii) the Cooperative Program shall be allocated 20% of the revenues appropriated to the
154
office from the Tourism Marketing Performance Account;
155
(iii) the office, with approval from the board, shall establish eligibility, advertising, and
156
timing requirements and criteria and provide for an approval process for applications;
157
(iv) an application from an eligible applicant to receive monies from the Cooperative
158
Program must be submitted on or before the appropriate date established by the office; and
159
(v) Cooperative Program monies not used in each fiscal year shall be returned to the
160
Tourism Marketing Performance Account.
161
(2) The board may:
162
(a) solicit and accept contributions of moneys, services, and facilities from any other
163
sources, public or private and shall use these funds for promoting the general interest of the
164
state in [travel and] tourism[.]; and
165
(b) establish subcommittees for the purpose of assisting the board in an advisory role
166
only.
167
(3) The board may not, except as otherwise provided in Subsection (1)(a), make policy
168
related to the management or operation of the office.
169
Section 4.
Section
63-38f-1409 (Effective 07/01/05)
is amended to read:
170
63-38f-1409 (Effective 07/01/05). Powers and duties of office related to tourism
171
development plan -- Annual report and survey.
172
(1) The office shall:
173
(a) be the tourism development authority of the state;
174
(b) develop a tourism [promotion] advertising, marketing, and branding program for
175
the state;
176
(c) receive approval from the Board of Tourism Development under Subsection
177
63-38f-1408
(1)(a) before implementing the out-of-state advertising, marketing, and branding
178
campaign;
179
[(c)] (d) develop a plan to increase the economic contribution by tourists visiting the
180
state;
Text Box
- 7 -
181
[(d)] (e) plan and conduct a program of information, advertising, and publicity relating
182
to the recreational, scenic, historic, [highway,] and tourist advantages and attractions of the
183
state at large; and
184
[(e)] (f) encourage and assist in the coordination of the activities of persons, firms,
185
associations, corporations, travel regions, counties, and governmental agencies engaged in
186
publicizing, developing, and promoting the scenic attractions and tourist advantages of the
187
state.
188
(2) Any plan provided for under Subsection (1) shall address, but not be limited to,
189
enhancing the state's image, promoting Utah as a year-round destination, encouraging
190
expenditures by visitors to the state, and expanding the markets where the state is promoted.
191
[(3) The office is encouraged to:]
192
[(a) conduct surveys on tourism promotion activities undertaken by cities and counties
193
within the state; and]
194
[(b) in collaboration with the cities and counties surveyed, make an annual report to the
195
Legislature on the economic benefit of those activities to the state and the cities and counties
196
surveyed by the office.]
197
(3) The office shall conduct a regular and ongoing research program to identify
198
statewide economic trends and conditions in the tourism sector of the economy and to provide
199
an annual evaluation of the economic efficiency of the advertising and branding campaigns
200
conducted under this part to the Legislature's Workforce Services and Community and
201
Economic Development Interim Committee and the Economic Development and Human
202
Resources Appropriations Subcommittee.
203
Section 5.
Section
63-38f-1411
is enacted to read:
204
63-38f-1411. Tourism Marketing Performance Account.
205
(1) There is created within the General Fund a restricted account known as the Tourism
206
Marketing Performance Account.
207
(2) The account shall be administered by the office for the purposes listed in
208
Subsection (5).
209
(3) (a) The account shall earn interest.
210
(b) All interest earned on account monies shall be deposited into the account.
211
(c) Monies in the account are nonlapsing.
Text Box
- 8 -
Senate 2nd Reading Amendments 4-20-2005 rd/jlw
212
(4) The account shall be funded by appropriations made to the account by the
213
Legislature in accordance with this section.
214
(5) The director may use account monies S. appropriated to the office .S to pay for the
214a
statewide advertising,
215
marketing, and branding campaign for promotion of the state as conducted by the office.
216
(6) (a) For the fiscal year beginning July 1, 2005, the director shall allocate 7.5% of the
217
account monies appropriated to the office, but not to exceed $750,000, to be distributed to a
218
sports organization for advertising, marketing, branding, and promoting Utah in attracting
219
sporting events into the state as determined by the office.
220
(b) For a fiscal year beginning on or after July 1, 2006, the amount distributed under
221
Subsection (6)(a) shall be indexed from the July 1, 2005 fiscal year to reflect a percent increase
222
or decrease of monies set aside into the account as compared to the previous fiscal year.
223
(c) The monies distributed under Subsections (6)(a) and (b) are nonlapsing.
224
(d) The office shall provide for an annual accounting to the director and the board by a
225
sports organization of the use of monies it receives under Subsection (6)(a) or (b).
226
(e) For purposes of this Subsection (6), "sports organization " means an organization
227
that is:
228
(i) exempt from federal income taxation in accordance with Section 501(c)(3), Internal
229
Revenue Code; and
230
(ii) created to foster national and international amateur sports competition to be held in
231
the state and sports tourism throughout the state, to include advertising, marketing, branding,
232
and promoting Utah for the purpose of attracting sporting events into the state.
233
(7) (a) Monies set aside into the account shall be as follows:
234
(i) for the fiscal year beginning July 1, 2005 only, an amount appropriated in Section 7
235
of this bill;
236
(ii) for the fiscal year beginning July 1, 2006 S. [
,
] :
236a
(A) .S the S. [
$8,000,000 from
] .S beginning
237
nonlapsing appropriation balances S. , if any, .S in the Tourism Marketing Performance
237a
Account S. [
, a
] ;
237b
(B) any .S
238
legislative appropriation from the sales and use tax revenue increases identified in Subsection
239
(8) S. [
, plus
] ; and
239a
(C) .S any appropriation made by the Legislature from the General Fund to the account in
239b
an
240
appropriations bill S. [
.
] ; and .S
241
(iii) for the fiscal year beginning July 1, 2007, and for each fiscal year thereafter, a
242
$1,000,000 reduction in the prior year's appropriation sources other than the sales and use tax
Text Box
- 9 -
243
revenue increases identified in Subsection (8), plus a legislative appropriation from the
244
cumulative sales and use tax revenue increases identified in Subsection (8).
245
(b) Monies in the account are nonlapsing.
246
(8) (a) In fiscal years 2006 through 2015, a portion of the state sales and use tax
247
revenues determined under this Subsection (8) shall be certified as a set-aside for the account
248
by the State Tax Commission and reported to the Office of Legislative Fiscal Analyst.
249
(b) The State Tax Commission shall determine the set-aside under this Subsection (8)
250
in each fiscal year by applying the following formula: if the increase in the state sales and use
251
tax revenues derived from the retail sales of tourist-oriented goods and services in the fiscal
252
year two years prior to the fiscal year in which the set-aside is to be made for the account is at
253
least 3% over the state sales and use tax revenues derived from the retail sales of
254
tourist-oriented goods and services generated in the fiscal year three years prior to the fiscal
255
year in which the set-aside is to be made, an amount equal to 1/2 of the state sales and use tax
256
revenues generated above the 3% increase shall be calculated by the commission and set aside
257
by the state treasurer for appropriation to the account.
258
(c) Total monies to be appropriated to the account in any fiscal year under Subsections
259
(8)(a) and (b) may not exceed the amount in the account under this section in the fiscal year
260
immediately preceding the current fiscal year by more than $3,000,000.
261
(d) As used in this Subsection (8), "sales of tourism-oriented goods and services" are
262
those sales by businesses registered with the State Tax Commission under the following codes
263
of the 1997 North American Industry Classification System of the federal Executive Office of
264
the President, Office of Management and Budget:
265
(i) NAICS Code 453 Miscellaneous Store Retailers;
266
(ii) NAICS Code 481 Passenger Air Transportation;
267
(iii) NAICS Code 487 Scenic and Sightseeing Transportation;
268
(iv) NAICS Code 711 Performing Arts, Spectator Sports and Related Industries;
269
(v) NAICS Code 712 Museums, Historical Sites and Similar Institutions;
270
(vi) NAICS Code 713 Amusement, Gambling and Recreation Industries;
271
(vii) NAICS Code 721 Accommodations;
272
(viii) NAICS Code 722 Food Services and Drinking Places;
273
(ix) NAICS Code 4483 Jewelry, Luggage, and Leather Goods Stores;
Text Box
- 10 -
Senate 2nd Reading Amendments 4-20-2005 rd/jlw
274
(x) NAICS Code 4853 Taxi and Limousine Service;
275
(xi) NAICS Code 4855 Charter Bus;
276
(xii) NAICS Code 5616 Travel Arrangement and Reservation Services;
277
(xiii) NAICS Code 44611 Pharmacies and Drug Stores;
278
(xiv) NAICS Code 45111 Sporting Goods Stores;
279
(xv) NAICS Code 45112 Hobby Toy and Game Stores;
280
(xvi) NAICS Code 45121 Book Stores and News Dealers;
281
(xvii) NAICS Code 445120 Convenience Stores without Gas Pumps;
282
(xviii) NAICS Code 447110 Gasoline Stations with Convenience Stores;
283
(xix) NAICS Code 447190 Other Gasoline Stations;
284
(xx) NAICS Code 532111 Passenger Car Rental; and
285
(xxi) NAICS Code 532292 Recreational Goods Rental.
286
Section 6. Repealer.
287
This bill repeals:
288
Section 63-38f-1401 (Effective 07/01/05), Purpose.
289
Section 63-38f-1402 (Effective 07/01/05), Definitions.
290
Section 63-38f-1403 (Effective 07/01/05), Creation and administration of fund.
291
Section 63-38f-1404 (Effective 07/01/05), Appropriations to the fund.
292
Section 63-38f-1405 (Effective 07/01/05), Distribution of fund monies --
293
Determination of recipients.
294
Section 7. Appropriation.
295
(1) There is appropriated to the Tourism Marketing Performance Account for the fiscal
296
year beginning July 1, 2005, and ending June 30, 2006 only, S. [
$18,000,000
] $14,000,000 .S
296a
from the General
297
Fund, one-time; and S. [
($8,000,000)
] ($4,000,000) .S from Closing Nonlapsing Appropriations
297a
Balances to help
298
pay for the statewide advertising, marketing, and branding campaign for promotion of the state.
299
(2) There is appropriated to the Governor's Office of Economic Development for the
300
fiscal year beginning July 1, 2005, and ending June 30, 2006 only, $10,000,000 from the
301
Tourism Marketing Performance Account for the statewide advertising, marketing, and
302
branding campaign for tourism promotion of the state.
302a
S. (3) If at the end of fiscal year 2004-05, after the Division of Finance has transferred monies
302b
to the Budget Reserve Account in accordance with Section 63-38-2.5, held back monies for the
302c
payment of additional debt service in accordance with Section 63-38-2.5, and subtracted
302d
monies earmarked to the Industrial Assistance Fund in accordance with Section 63-38f-904,
302e
there remains a General Fund surplus for fiscal year 2004-05, there is appropriated from the
302f
General Fund to the Tourism Marketing Performance Account an amount equal to the lesser
302g
of: .S
Text Box
- 10a -
Senate 2nd Reading Amendments 4-20-2005 rd/jlw
302h
S. (a) the amount of the General Fund surplus that remains for fiscal year 2004-05 after
302i
the Division of Finance has:
302j
(i) transferred and held back the monies in accordance with Section 63-38-2.5; and
302k
(ii) subtracted the monies in accordance with Section 63-38f-904; or
302l
(b) $4,000,000 .S
303
Section 8. Effective date.
304
This bill takes effect on July 1, 2005.
[Bill Documents][Bills Directory]