S.B. 127

1

TOURISM MARKETING PERFORMANCE
2 RESTRICTED SPECIAL REVENUE FUND
3 2007 GENERAL SESSION
4 STATE OF UTAH
5 Chief Sponsor: Scott K. Jenkins
6 House Sponsor: David Clark
7
8 LONG TITLE
9 General Description:
10 This bill modifies provisions of the Governor's Office of Economic Development by
11 replacing the Tourism Marketing Performance Account with a restricted special
12 revenue fund known as the Tourism Marketing Performance Fund as the funding source
13 for the state's advertising, marketing, and branding campaign and for promotion of the
14 state as conducted by the office.
15 Highlighted Provisions:
16 This bill:
17 . creates a restricted special revenue fund to replace the Tourism Marketing
18 Performance Account as the state's funding source for the statewide advertising,
19 marketing, and branding campaign for promotion of the state by the Governor's
20 Office of Economic Development; and
21 . makes certain technical changes.
22 Monies Appropriated in this Bill:
23 None
24 Other Special Clauses:
25 None
26 Utah Code Sections Affected:
27 AMENDS:

28 63-38f-1408, as last amended by Chapter 12, Laws of Utah 2005, First Special Session
29 63-38f-1411, as last amended by Chapter 46, Laws of Utah 2006
30
31 Be it enacted by the Legislature of the state of Utah:
32 Section 1. Section 63-38f-1408 is amended to read:
33 63-38f-1408. Board duties.
34 (1) The board shall:
35 (a) have authority to approve a tourism program of out-of-state advertising, marketing,
36 and branding, taking into account the long-term strategic plan, economic trends, and
37 opportunities for tourism development on a statewide basis, as a condition of the distribution of
38 funds to the office from the Tourism Marketing Performance [Account] Fund under Section
39 63-38f-1411 ;
40 (b) review the office programs for coordination and integration of advertising and
41 branding themes to be used whenever possible in all office programs, including recreational,
42 scenic, historic, and tourist attractions of the state at large;
43 (c) encourage and assist in coordination of the activities of persons, firms, associations,
44 corporations, civic groups, and governmental agencies engaged in publicizing, developing, and
45 promoting the scenic attractions and tourist advantages of the state; and
46 (d) (i) advise the office in establishing a Cooperative Program from the monies in the
47 Tourism Marketing Performance [Account] Fund under Section 63-38f-1411 for use by cities,
48 counties, nonprofit destination marketing organizations, and similar public entities for the
49 purpose of supplementing monies committed by these entities for advertising and promotion to
50 and for out-of-state residents to attract them to visit sites advertised by and attend events
51 sponsored by these entities;
52 (ii) the Cooperative Program shall be allocated 20% of the revenues [appropriated to
53 the office from] in the Tourism Marketing Performance [Account] Fund;
54 (iii) the office, with approval from the board, shall establish eligibility, advertising, and
55 timing requirements and criteria and provide for an approval process for applications;
56 (iv) an application from an eligible applicant to receive monies from the Cooperative
57 Program must be submitted on or before the appropriate date established by the office; and
58 (v) Cooperative Program monies not used in each fiscal year shall be returned to the

59 Tourism Marketing Performance [Account] Fund.
60 (2) The board may:
61 (a) solicit and accept contributions of moneys, services, and facilities from any other
62 sources, public or private and shall use these funds for promoting the general interest of the
63 state in tourism; and
64 (b) establish subcommittees for the purpose of assisting the board in an advisory role
65 only.
66 (3) The board may not, except as otherwise provided in Subsection (1)(a), make policy
67 related to the management or operation of the office.
68 Section 2. Section 63-38f-1411 is amended to read:
69 63-38f-1411. Tourism Marketing Performance Fund.
70 (1) There is created [within the General Fund] a restricted [account] special revenue
71 fund known as the Tourism Marketing Performance [Account] Fund.
72 [(2) The account shall be administered by the office for the purposes listed in
73 Subsection (5).]
74 [(3) (a) The account shall earn interest.]
75 [(b) All interest earned on account monies shall be deposited into the account.]
76 [(c) Monies in the account are nonlapsing.]
77 [(4) The account shall be funded by appropriations made to the account by the
78 Legislature in accordance with this section.]
79 [(5) The director may use account monies appropriated to the office to pay for the
80 statewide advertising, marketing, and branding campaign for promotion of the state as
81 conducted by the office.]
82 (2) The Tourism Marketing Performance Fund shall consist of:
83 (a) increases in state sales and use tax revenues as detailed in Subsection (7);
84 (b) any monies appropriated by the Legislature pursuant to this section; and
85 (c) interest earned on fund monies.
86 (3) The office shall authorize the expenditure of fund monies to pay for the statewide
87 advertising, marketing, and branding campaign for promotion of the state as conducted by the
88 office under this Part 14.
89 (4) Monies in the fund are nonlapsing.

90 [(6)] (5) (a) For the fiscal year beginning July 1, 2005, the director of the office shall
91 allocate 7.5% of the [account] fund monies [appropriated to the office], but not to exceed
92 $750,000, to be distributed to a sports organization for advertising, marketing, branding, and
93 promoting Utah in attracting sporting events into the state as determined by the office.
94 (b) For a fiscal year beginning on or after July 1, 2006, the amount distributed under
95 Subsection [(6)] (5)(a) shall be indexed from the July 1, 2005 fiscal year to reflect a percent
96 increase or decrease of monies [set aside into the account] in the fund as compared to the
97 previous fiscal year.
98 (c) The monies distributed under Subsections [(6)] (5)(a) and (b) are nonlapsing.
99 (d) The office shall provide for an annual accounting to the director and the board by a
100 sports organization of the use of monies it receives under Subsection [(6)] (5)(a) or (b).
101 (e) For purposes of this Subsection [(6)] (5), "sports organization" means an
102 organization that is:
103 (i) exempt from federal income taxation in accordance with Section 501(c)(3), Internal
104 Revenue Code; and
105 (ii) created to foster national and international amateur sports competitions to be held
106 in the state and sports tourism throughout the state, to include advertising, marketing, branding,
107 and promoting Utah for the purpose of attracting sporting events into the state.
108 [(7) (a)] (6) Monies [set aside into the account] shall be directed into the fund as
109 follows:
110 [(i) for the fiscal year beginning July 1, 2005 only, an amount appropriated in Section 7
111 of this bill;]
112 [(ii)] (a) for the fiscal year beginning July 1, 2006:
113 [(A)] (i) the beginning nonlapsing [appropriation] balances, if any, in the Tourism
114 Marketing Performance [Account] Fund;
115 [(B)] (ii) [any legislative appropriation from] the sales and use tax revenue increases
116 identified in Subsection [(8)] (7); and
117 [(C)] (iii) any appropriation made by the Legislature [from the General Fund] to the
118 [account] fund in an appropriations bill; and
119 [(iii)] (b) for the fiscal year beginning July 1, 2007, and for each fiscal year thereafter, a
120 $1,000,000 reduction in the prior year's appropriation sources other than the sales and use tax

121 revenue increases identified in Subsection [(8)] (7), [plus a legislative appropriation from]
122 interest on fund monies, and the cumulative sales and use tax revenue increases identified in
123 Subsection [(8)] (7).
124 [(b) Monies in the account are nonlapsing.]
125 [(8)] (7) (a) In fiscal years 2006 through 2015, a portion of the state sales and use tax
126 revenues determined under this Subsection [(8)] (7) shall be certified as a set-aside for the
127 [account] fund by the State Tax Commission and reported to the Office of Legislative Fiscal
128 Analyst.
129 (b) The State Tax Commission shall determine the set-aside under this Subsection [(8)]
130 (7) in each fiscal year by applying the following formula: if the increase in the state sales and
131 use tax revenues derived from the retail sales of tourist-oriented goods and services in the fiscal
132 year two years prior to the fiscal year in which the set-aside is to be made for the [account]
133 fund is at least 3% over the state sales and use tax revenues derived from the retail sales of
134 tourist-oriented goods and services generated in the fiscal year three years prior to the fiscal
135 year in which the set-aside is to be made, an amount equal to 1/2 of the state sales and use tax
136 revenues generated above the 3% increase shall be calculated by the commission and [set
137 aside] deposited by the state treasurer [for appropriation to the account] into the fund.
138 (c) Total monies to be [appropriated to the account] deposited in the fund in any fiscal
139 year under Subsections [(8)] (7)(a) and (b) may not exceed the amount in the [account] fund
140 under this section in the fiscal year immediately preceding the current fiscal year by more than
141 $3,000,000.
142 (d) As used in this Subsection [(8)] (7), "sales of tourism-oriented goods and services"
143 are those sales by businesses registered with the State Tax Commission under the following
144 codes of the 1997 North American Industry Classification System of the federal Executive
145 Office of the President, Office of Management and Budget:
146 (i) NAICS Code 453 Miscellaneous Store Retailers;
147 (ii) NAICS Code 481 Passenger Air Transportation;
148 (iii) NAICS Code 487 Scenic and Sightseeing Transportation;
149 (iv) NAICS Code 711 Performing Arts, Spectator Sports and Related Industries;
150 (v) NAICS Code 712 Museums, Historical Sites and Similar Institutions;
151 (vi) NAICS Code 713 Amusement, Gambling and Recreation Industries;

152 (vii) NAICS Code 721 Accommodations;
153 (viii) NAICS Code 722 Food Services and Drinking Places;
154 (ix) NAICS Code 4483 Jewelry, Luggage, and Leather Goods Stores;
155 (x) NAICS Code 4853 Taxi and Limousine Service;
156 (xi) NAICS Code 4855 Charter Bus;
157 (xii) NAICS Code 5615 Travel Arrangement and Reservation Services;
158 (xiii) NAICS Code 44611 Pharmacies and Drug Stores;
159 (xiv) NAICS Code 45111 Sporting Goods Stores;
160 (xv) NAICS Code 45112 Hobby Toy and Game Stores;
161 (xvi) NAICS Code 45121 Book Stores and News Dealers;
162 (xvii) NAICS Code 445120 Convenience Stores without Gas Pumps;
163 (xviii) NAICS Code 447110 Gasoline Stations with Convenience Stores;
164 (xix) NAICS Code 447190 Other Gasoline Stations;
165 (xx) NAICS Code 532111 Passenger Car Rental; and
166 (xxi) NAICS Code 532292 Recreational Goods Rental.




Legislative Review Note
as of 1-2-07 9:09 AM

Office of Legislative Research and General Counsel