H.B. 88

1

TOURISM MARKETING PERFORMANCE FUND
2 1997 GENERAL SESSION
3 STATE OF UTAH
4 Sponsor: Sheryl L. Allen
5 AN ACT RELATING TO COMMUNITY AND ECONOMIC DEVELOPMENT; CREATING
6 THE TOURISM MARKETING PERFORMANCE FUND; PROVIDING DEFINITIONS;
7 PROVIDING CRITERIA TO DETERMINE ECONOMIC GROWTH IN THE TRAVEL AND
8 TOURISM INDUSTRY; PROVIDING FOR ALLOCATION OF FUNDS TO THE DIVISION
9 OF TRAVEL DEVELOPMENT; CREATING THE FUND'S COMMITTEE, ITS
10 MEMBERSHIP AND PURPOSE; AND h [ UTILIZING SURPLUS GENERAL FUND MONIES ]
10a h [ ANNUALLY ] h APPROPRIATING h [ $1,000,000 ] $200,000 h FROM THE GENERAL FUND
10a S FOR FISCAL YEAR 1997-1998 s TO THE TOURISM MARKETING
10b PERFORMANCE FUND h .
11 This act affects sections of Utah Code Annotated 1953 as follows:
12 ENACTS:
13 9-2-1701, Utah Code Annotated 1953
14 9-2-1702, Utah Code Annotated 1953
15 9-2-1703, Utah Code Annotated 1953
16 9-2-1704, Utah Code Annotated 1953
17 9-2-1705, Utah Code Annotated 1953
18 Be it enacted by the Legislature of the state of Utah:
19 Section 1. Section 9-2-1701 is enacted to read:
20 9-2-1701. Purpose.
21 The Legislature finds and declares that the development of travel and tourism in Utah is
22 a state public purpose necessary to assure the welfare of its citizens, the growth of its economy,
23 and adequate employment of its citizens.
24 Section 2. Section 9-2-1702 is enacted to read:
25 9-2-1702. Definitions.
26 As used in this part:
27 (1) "Administrator" means the Department of Community and Economic Development.
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1 (2) "Commissioners" means the board of commissioners on the Division of Travel
2 Development.
3 (3) "Committee" means the Tourism Marketing Performance Fund Committee as created
4 in Section 9-2-1705.
5 (4) "Department" means the Department of Community and Economic Development.
6 (5) "Fund" means the restricted account known as the Tourism Marketing Performance
7 Fund created in Section 9-2-1703.
8 (6) "Industry" means the travel and tourism industry h GROUPS AS DESCRIBED IN
8a SUBSECTION 9-2-1703 (2)(c)(ii)(A) THROUGH (E) h .
9 (7) "Institutional advertising" means advertising of Utah's cultural, historical, recreational,
10 scenic, and tourist attractions to consumers outside of Utah.
11 (8) "Performance measurement" means a standard to measure the economic growth in the
12 travel and tourism industry in comparison with the previous year's sales tax receipts based on
13 criteria as provided in Section 9-2-1703.
14 Section 3. Section 9-2-1703 is enacted to read:
15 9-2-1703. Creation of the fund -- Performance measurement -- Criteria -- Staff.
16 (1) There is created within the General Fund a restricted account known as the "Tourism
17 Marketing Performance Fund." The fund shall be administered by the administrator upon the
18 advice and recommendations of the committee.
19 (2) (a) The annual appropriation for the fund shall be determined by measuring the
20 economic growth in the travel and tourism industry in excess of the previous year's h [sales tax
21 receipts ] TAXABLE SALES h . In no event shall the annual appropriation exceed h [$2,000,000 ]
21a h [ $1,000,000 ] $200,000 h h .
22 (b) If the economic growth in the travel and tourism industry exceeds h [3% ] 4% h growth
22a h , AS MEASURED BY TAXABLE SALES, h based
23 on the previous year's h [sales tax receipts ] TAXABLE SALES h , the administrator may receive
23a funding through distribution
24 of revenues from the fund.
25 (c) The department shall utilize this criteria to h [determine economic growth ] QUALIFY
25 a FOR AN ANNUAL APPROPRIATION h :
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26 (i) h [the accounting of business invoices for expenditures provided to the State Tax
27 Commission from those businesses in the industry who promoted and marketed Utah's

27a cultural, ] THE EXPENDITURES BY THE INDUSTRY FOR PROMOTING AND MARKETING
2 7b UTAH'S CULTURAL, h
28 recreational, and scenic attractions to consumers outside of Utah in the previous fiscal year;
28a h (A) AS REPORTED TO THE STATE TAX COMMISSION ON A FORM DESIGNED BY THE STATE
28 b TAX COMMISSION;
28 c (B) FOR THE YEAR BEGINNING JULY 1 AND ENDING JUNE 30; AND
28 d (C) FILED WITH THE STATE TAX COMMISSION PRIOR TO JULY 31 OF EACH YEAR; h
28e and
29 (ii) the amount of sales tax collected from the following industry groups:
30 (A) retail/eating and drinking;
31 (B) services/ hotels and lodging;















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1 (C) services/automotive rental;
2 (D) services/ amusement and recreation; and
3 (E) transportation.
4 (d) If the department determines the industry's economic growth exceeds the previous
5 year's h [ sales tax receipts ] TAXABLE SALES h by h [3% ] 4% h , h [ the department shall
5a request ] h the Legislature h [ to ] SHALL h
5b appropriate h h [ $1,000,000 ] $200,000 h h S FOR THE UPCOMING FISCAL YEAR s
6 h [ designated surplus General Fund balances ] h S [as provided in Subsection (3)] s . The
6a appropriation shall
7 be the amount determined under Subsection (2)(c)(i) or (ii), whichever is the lesser amount.
8 h [ (3) (a) At the end of each fiscal year, any additional unrestricted, undesignated General
9 Fund balance shall be earmarked for the Tourism Marketing Performance Fund in an amount not
10 to exceed h [$2,000,000 ] $1,000,000 h if the criteria of Section 9-2-1703 have been satisfied as
10a determined and
11 reported by the administrator.
12 (b) The earmark for the Tourism Marketing Performance Fund may occur only after the
13 transfer of:
14 (i) surplus General Fund revenues to the Budget Reserve Account as provided in Section
15 63-38-2.5; and
16 (ii) remaining surplus General Fund revenues to the Industrial Assistance Fund as provided
17 in Subsection 9-2-1204(5), and to the Waste Tire Recycling Industrial Assistance Loan Program
18 as provided in Section 9-2-1208.
19 (c) This amount may not be used for purposes of the fund as provided in this part until
20 appropriated by the Legislature. ] h
21 Section 4. Section 9-2-1704 is enacted to read:
22 9-2-1704. Distribution of fund monies -- Determination of recipients -- Nonlapsing.
23 The appropriation to the Tourism Marketing Performance Fund shall be distributed in the
24 following manner:
25 (1) the administrator shall distribute the monies in the fund to the Division of Travel
26 Development to be used for the purposes as provided in Section 9-3-204 h , WITH 75% OF THE FUNDS
26a ALLOCATED TO MARKETING AND 25% OF THE FUNDS ALLOCATED TO INFRASTRUCTURE h ; and
27 (2) any undistributed appropriation at the end of the fiscal year shall be nonlapsing except
28 any balance greater than h [ $2,000,000 ] h [ $1,000,000 ] $200,000 h h shall lapse to the General
28a Fund
29 Section 5. Section 9-2-1705 is enacted to read:
30 9-2-1705. Creation of Tourism Marketing Performance Fund Committee -- Members
31 -- Appointment -- Qualifications --Terms -- Quorum -- Duties -- Per diem and expenses.
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1 (1) There is created a Tourism Marketing Performance Fund Committee which shall
2 consist of 21 members.
3 (2) The members of the committee shall include:
4 (a) five members appointed by the Board of Commissioners of the Division of Travel
5 Development, three of whom are members of the Board of Commissioners; and
6 (b) 16 members of a private coalition of the industry known as the Utah Tourism Industry
7 Coalition recommended by the board of directors of the coalition.
8 (3) The governor shall appoint the committee members in Subsection (2)(b).
9 (4) The first committee appointments shall be for terms as follows:
10 (a) seven members shall be appointed for terms of two years;
11 (b) seven members shall be appointed for terms of three years; and
12 (c) seven members shall be appointed for terms of four years.
13 (5) If a vacancy occurs, the Board of Commissioners or the governor shall appoint a
14 qualified replacement to fill the unexpired term.
15 (6) The committee shall elect a chair and a vice chair from its membership.
16 (7) Eleven members of the committee shall constitute a quorum.
17 (8) The committee shall advise the administrator on the recommended allocation of the
18 monies in the fund as provided in Section 9-2-1704. The administrator shall distribute the monies
19 in the fund to the Division of Travel Development.
20 (9) The committee shall determine the time and place of meetings and any other
21 procedural matter not specified in this chapter.
22 (10) Members shall receive no compensation or benefits for their services, and shall
23 receive no per diem and expenses incurred in the performance of the member's official duties.
23a h Section 6.
23b THERE IS APPROPRIATED h [ ANNUALLY ] h FROM THE GENERAL FUND S FOR FISCAL
23bi YEAR 1997-1998 $200,000 s TO THE TOURISM
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Amend on 3_goldenrod March 5, 1997 23c MARKETING PERFORMANCE FUND h $1,000,000 ] S [$200,000] s h . h



Legislative Review Note
as of 1-15-97 3:43 PM

A limited legal review of this bill raises no obvious constitutional or statutory concerns.

Office of Legislative Research and General Counsel

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