First Substitute H.B. 34

Senator Scott K. Jenkins proposes the following substitute bill:





Chief Sponsor: Brad R. Wilson

Senate Sponsor: Scott K. Jenkins

             8      LONG TITLE
             9      General Description:
             10          This bill modifies Title 63M, Chapter 1, Governor's Office of Economic Development,
             11      by amending provisions related to the Tourism Marketing Performance Account and
             12      related provisions.
             13      Highlighted Provisions:
             14          This bill:
             15          .    extends from fiscal year 2015 to fiscal year 2019 the number of years that growth in
             16      tourism-oriented sales tax revenue is calculated as part of a formula to potentially
             17      increase annual funding for the Tourism Marketing Performance Account;
             18          .    requires certain one-time reporting by the Governor's Office of Economic
             19      Development;
             20          .    provides for the repeal of the one-time reporting requirement; and
             21          .    makes technical changes.
             22      Money Appropriated in this Bill:
             23          None
             24      Other Special Clauses:
             25          None

             26      Utah Code Sections Affected:
             27      AMENDS:
             28           63I-2-263 , as last amended by Laws of Utah 2013, Second Special Session, Chapters 1
             29      and 2
             30           63M-1-1406 , as last amended by Laws of Utah 2011, Chapters 303 and 342
             32      Be it enacted by the Legislature of the state of Utah:
             33          Section 1. Section 63I-2-263 is amended to read:
             34           63I-2-263. Repeal dates, Title 63A to Title 63M.
             35          (1) Section 63A-1-115 is repealed on July 1, 2014.
             36          (2) Subsection 63J-1-218 (3) is repealed on December 1, 2013.
             37          (3) Subsection 63J-1-218 (4) is repealed on December 1, 2013.
             38          (4) Subsection 63M-1-903 (1)(d) is repealed on July 1, 2015.
             39          (5) Subsection 63M-1-1406 (9) is repealed on January 1, 2015.
             40          Section 2. Section 63M-1-1406 is amended to read:
             41           63M-1-1406. Tourism Marketing Performance Account.
             42          (1) There is created within the General Fund a restricted account known as the Tourism
             43      Marketing Performance Account.
             44          (2) The account shall be administered by the office for the purposes listed in
             45      Subsection (5).
             46          (3) (a) The account shall earn interest.
             47          (b) All interest earned on account money shall be deposited into the account.
             48          (4) The account shall be funded by appropriations made to the account by the
             49      Legislature in accordance with this section.
             50          (5) The director [may] shall use account money appropriated to the office to pay for the
             51      statewide advertising, marketing, and branding campaign for promotion of the state as
             52      conducted by the office.
             53          (6) (a) For the fiscal year beginning July 1, 2007, the director shall allocate 10% of the
             54      account money appropriated to the office to be distributed to a sports organization for
             55      advertising, marketing, branding, and promoting Utah in attracting sporting events into the
             56      state as determined by the office.

             57          (b) For a fiscal year beginning on or after July 1, 2008, the amount distributed under
             58      Subsection (6)(a) shall be indexed from the July 1, 2007 fiscal year to reflect a percent increase
             59      or decrease of money set aside into the account as compared to the previous fiscal year.
             60          (c) The office shall provide for an annual accounting to the office by a sports
             61      organization of the use of money it receives under Subsection (6)(a) or (b).
             62          (d) For purposes of this Subsection (6), "sports organization" means an organization
             63      that is:
             64          (i) exempt from federal income taxation in accordance with Section 501(c)(3), Internal
             65      Revenue Code; and
             66          (ii) created to foster national and international amateur sports competitions to be held
             67      in the state and sports tourism throughout the state, to include advertising, marketing, branding,
             68      and promoting Utah for the purpose of attracting sporting events into the state.
             69          (7) Money deposited into the account shall consist of a legislative appropriation from
             70      the cumulative sales and use tax revenue increases identified in Subsection (8), plus any
             71      appropriation made by the Legislature.
             72          (8) (a) In fiscal years 2006 through [2015] 2019, a portion of the state sales and use tax
             73      revenues determined under this Subsection (8) shall be certified as a set-aside for the account
             74      by the State Tax Commission and reported to the Office of Legislative Fiscal Analyst.
             75          (b) The State Tax Commission shall determine the set-aside under this Subsection (8)
             76      in each fiscal year by applying the following formula: if the increase in the state sales and use
             77      tax revenues derived from the retail sales of tourist-oriented goods and services, in the fiscal
             78      year two years prior to the fiscal year in which the set-aside is to be made for the account, is at
             79      least 3% over the state sales and use tax revenues derived from the retail sales of
             80      tourist-oriented goods and services generated in the fiscal year three years prior to the fiscal
             81      year in which the set-aside is to be made, an amount equal to 1/2 of the state sales and use tax
             82      revenues generated above the 3% increase shall be calculated by the commission and set aside
             83      by the state treasurer for appropriation to the account.
             84          (c) [Total] The total money [to be] appropriated to the account in any fiscal year under
             85      Subsections (8)(a) and (b) may not exceed the amount in the account under this section in the
             86      fiscal year immediately preceding the current fiscal year by more than $3,000,000.
             87          (d) As used in this Subsection (8), "sales of [tourism-oriented] tourist-oriented goods

             88      and services" are those sales by businesses registered with the State Tax Commission under the
             89      following codes of the 1997 North American Industry Classification System of the federal
             90      Executive Office of the President, Office of Management and Budget:
             91          (i) NAICS Code 453 Miscellaneous Store Retailers;
             92          (ii) NAICS Code 481 Passenger Air Transportation;
             93          (iii) NAICS Code 487 Scenic and Sightseeing Transportation;
             94          (iv) NAICS Code 711 Performing Arts, Spectator Sports and Related Industries;
             95          (v) NAICS Code 712 Museums, Historical Sites and Similar Institutions;
             96          (vi) NAICS Code 713 Amusement, Gambling and Recreation Industries;
             97          (vii) NAICS Code 721 Accommodations;
             98          (viii) NAICS Code 722 Food Services and Drinking Places;
             99          (ix) NAICS Code 4483 Jewelry, Luggage, and Leather Goods Stores;
             100          (x) NAICS Code 4853 Taxi and Limousine Service;
             101          (xi) NAICS Code 4855 Charter Bus;
             102          (xii) NAICS Code 5615 Travel Arrangement and Reservation Services;
             103          (xiii) NAICS Code 44611 Pharmacies and Drug Stores;
             104          (xiv) NAICS Code 45111 Sporting Goods Stores;
             105          (xv) NAICS Code 45112 Hobby Toy and Game Stores;
             106          (xvi) NAICS Code 45121 Book Stores and News Dealers;
             107          (xvii) NAICS Code 445120 Convenience Stores without Gas Pumps;
             108          (xviii) NAICS Code 447110 Gasoline Stations with Convenience Stores;
             109          (xix) NAICS Code 447190 Other Gasoline Stations;
             110          (xx) NAICS Code 532111 Passenger Car Rental; and
             111          (xxi) NAICS Code 532292 Recreational Goods Rental.
             112          (e) The Division of Finance shall for each fiscal year transfer the first $6,000,000 of
             113      ongoing money in the account to the General Fund.
             114          (9) By October 1, 2014, the office shall provide a written report to the Economic
             115      Development and Workforce Services Interim Committee containing:
             116          (a) a recommendation, based on economic modeling, for an updated definition of
             117      "sales of tourist-oriented goods and services" to replace the definition in Subsection (8)(d); and
             118          (b) information describing the extent to which the state benefits annually from

             119      activities funded by the Tourism Marketing Performance Account.

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