1     
TOURISM MARKETING PERFORMANCE AMENDMENTS

2     
2015 GENERAL SESSION

3     
STATE OF UTAH

4     
Chief Sponsor: Brad R. Wilson

5     
Senate Sponsor: Evan J. Vickers

6     

7     LONG TITLE
8     General Description:
9          This bill modifies provisions of the Tourism Marketing Performance Account.
10     Highlighted Provisions:
11          This bill:
12          ▸     modifies the duties of the Board of Tourism Development and the duties of the
13     Governor's Office of Economic Development related to tourism;
14          ▸     modifies the formula for determining potential increases in legislative
15     appropriations for the Tourism Marketing Performance Account; and
16          ▸     makes technical changes.
17     Money Appropriated in this Bill:
18          None
19     Other Special Clauses:
20          This bill provides a special effective date.
21     Utah Code Sections Affected:
22     AMENDS:
23          63M-1-1403, as last amended by Laws of Utah 2014, Chapter 429
24          63M-1-1406, as last amended by Laws of Utah 2014, Chapter 423
25     

26     Be it enacted by the Legislature of the state of Utah:
27          Section 1. Section 63M-1-1403 is amended to read:
28          63M-1-1403. Board duties.
29          (1) The board [shall]:
30          (a) [have] has authority to approve a tourism program of out-of-state advertising,
31     marketing, and branding, taking into account the long-term strategic plan, economic trends, and
32     opportunities for tourism development on a statewide basis, as a condition of the distribution of
33     funds to the office from the:
34          (i) Tourism Marketing Performance Account [under] created in Section 63M-1-1406;
35     and
36          [(b) have authority to approve a tourism program of advertising, marketing, and
37     branding of the state, taking into account the long-term strategic plan, economic trends, and
38     opportunities for tourism development on a statewide basis, as a condition of the distribution of
39     money to the office from the]
40          (ii) Stay Another Day and Bounce Back Account, created in Section 63M-1-3411;
41          [(c)] (b) shall review [the] office programs [for coordination and integration of] to
42     coordinate and integrate advertising and branding themes [to be used whenever possible in all
43     office programs, including], which may include recreational, scenic, historic, and tourist
44     attractions of the state [at large], to be used in office programs;
45          [(d)] (c) shall encourage and assist in [coordination of the] coordinating activities of
46     persons, firms, associations, corporations, civic groups, and governmental agencies that are
47     engaged in publicizing, developing, and promoting the scenic attractions and tourist advantages
48     of the state; and
49          [(e) (i)] (d) shall advise the office in establishing a [Cooperative Program from the
50     money in] cooperative program using funds from the Tourism Marketing Performance Account
51     [under] created in Section 63M-1-1406 [for use by cities, counties, nonprofit destination
52     marketing organizations, and similar public entities for the purpose of supplementing money
53     committed by these entities for advertising and promotion to and for out-of-state residents to
54     attract them to visit sites advertised by and attend events sponsored by these entities;].
55          [(ii) the Cooperative Program shall be allocated 20% of the revenues appropriated to
56     the office from the Tourism Marketing Performance Account;]
57          [(iii) the office, with approval from the board, shall establish eligibility, advertising,
58     and timing requirements and criteria and provide for an approval process for applications;]
59          [(iv) an application from an eligible applicant to receive money from the Cooperative
60     Program must be submitted on or before the appropriate date established by the office; and]
61          [(v) Cooperative Program money not used in each fiscal year shall be returned to the
62     Tourism Marketing Performance Account.]
63          (2) The board may:
64          (a) solicit and accept contributions of money, services, and facilities from any other
65     sources, public or private and shall use these funds for promoting the general interest of the
66     state in tourism; and
67          (b) establish subcommittees for the purpose of assisting the board in an advisory role
68     [only].
69          (3) The board may not, except as otherwise provided in Subsection (1)(a), make policy
70     related to the management or operation of the office.
71          (4) (a) For each fiscal year, the office shall allocate 20% of the funds appropriated to
72     the Tourism Marketing and Performance Account created in Section 63M-1-1406 to the
73     cooperative program described in Subsection (1)(d) and this Subsection (4).
74          (b) Money allocated to the cooperative program may be awarded to cities, counties,
75     nonprofit destination marketing organizations, and similar public entities for the purpose of
76     supplementing money committed by these entities for advertising and promoting sites and
77     events in the state.
78          (c) The office, with approval from the board, shall establish:
79          (i) an application and approval process for an entity to receive a cooperative program
80     award, including an application deadline;
81          (ii) the criteria for awarding a cooperative program award, which shall emphasize
82     attracting out-of-state visitors, and may include attracting in-state visitors, to sites and events in
83     the state; and
84          (iii) eligibility, advertising, timing, and reporting requirements of an entity that
85     receives a cooperative program award.
86          (d) Money allocated to the cooperative program that is not used in each fiscal year shall
87     be returned to the Tourism Marketing Performance Account.
88          Section 2. Section 63M-1-1406 is amended to read:
89          63M-1-1406. Tourism Marketing Performance Account.
90          (1) There is created within the General Fund a restricted account known as the Tourism
91     Marketing Performance Account.
92          (2) The account shall be administered by [the office] GOED for the purposes listed in
93     Subsection (5).
94          (3) (a) The account shall earn interest.
95          (b) All interest earned on account money shall be deposited into the account.
96          (4) The account shall be funded by appropriations made to the account by the
97     Legislature in accordance with this section.
98          (5) The director shall use account money appropriated to [the office] GOED to pay for
99     the statewide advertising, marketing, and branding campaign for promotion of the state as
100     conducted by [the office] GOED.
101          (6) (a) For [a] each fiscal year beginning on or after July 1, 2007, [the office] GOED
102     shall annually allocate 10% of the account money appropriated to [the office] GOED to a
103     sports organization for advertising, marketing, branding, and promoting Utah in attracting
104     sporting events into the state.
105          (b) The sports organization shall:
106          (i) provide an annual written report to [the office] GOED that gives [a complete] an
107     accounting of the use of money the sports organization receives under this Subsection (6); and
108          (ii) partner with [the office] GOED to promote the state and to encourage economic
109     growth in the state.
110          (c) For purposes of this Subsection (6), "sports organization" means an organization
111     that is:
112          (i) exempt from federal income taxation in accordance with Section 501(c)(3), Internal
113     Revenue Code; and
114          (ii) created to foster national and international sports competitions in the state,
115     including competitions related to Olympic sports, and to promote and encourage sports tourism
116     throughout the state, including advertising, marketing, branding, and promoting Utah for the
117     purpose of attracting, expanding, and retaining sporting events [into] in the state.
118          (7) Money deposited into the account shall [consist of] include a legislative
119     appropriation from the cumulative sales and use tax revenue increases [identified] described in
120     Subsection (8), plus any additional appropriation made by the Legislature.
121          (8) (a) In fiscal years 2006 through 2019, a portion of the state sales and use tax
122     revenues determined under this Subsection (8) shall be certified [as a set-aside for the account
123     by the State Tax Commission and reported to the Office of Legislative Fiscal Analyst] by the
124     State Tax Commission as a set-aside for the account, and the State Tax Commission shall
125     report the amount of the set-aside to the office, the Office of Legislative Fiscal Analyst, and the
126     Division of Finance, which shall set aside the certified amount for appropriation to the account.
127          [(b) The State Tax Commission shall determine the set-aside under this Subsection (8)
128     in each fiscal year by applying the following formula: if the increase in the state sales and use
129     tax revenues derived from the retail sales of tourist-oriented goods and services, in the fiscal
130     year two years prior to the fiscal year in which the set-aside is to be made for the account, is at
131     least 3% over the state sales and use tax revenues derived from the retail sales of
132     tourist-oriented goods and services generated in the fiscal year three years prior to the fiscal
133     year in which the set-aside is to be made, an amount equal to 1/2 of the state sales and use tax
134     revenues generated above the 3% increase shall be calculated by the commission and set aside
135     by the state treasurer for appropriation to the account.]
136          (b) For fiscal years 2016 through 2019, the State Tax Commission shall calculate the
137     set-aside under this Subsection (8) in each fiscal year by applying one of the following
138     formulas: if the annual percentage change in the Consumer Price Index for All Urban
139     Consumers, as published by the Bureau of Labor Statistics of the United States Department of
140     Labor, for the fiscal year two years before the fiscal year in which the set-aside is to be made is:
141          (i) greater than 3%, and if the annual percentage change in the state sales and use tax
142     revenues attributable to the retail sales of tourist-oriented goods and services from the fiscal
143     year three years before the fiscal year in which the set-aside is to be made to the fiscal year two
144     years before the fiscal year in which the set-aside is to be made is greater than the annual
145     percentage change in the Consumer Price Index for the fiscal year two years before the fiscal
146     year in which the set-aside is to be made, then the difference between the annual percentage
147     change in the state sales and use tax revenues attributable to the retail sales of tourist-oriented
148     goods and services and the annual percentage change in the Consumer Price Index shall be
149     multiplied by an amount equal to the state sales and use tax revenues attributable to the retail
150     sales of tourist-oriented goods and services from the fiscal year three years before the fiscal
151     year in which the set-aside is to be made; or
152          (ii) 3% or less, and if the annual percentage change in the state sales and use tax
153     revenues attributable to the retail sales of tourist-oriented goods and services from the fiscal
154     year three years before the fiscal year in which the set-aside is to be made to the fiscal year two
155     years before the fiscal year in which the set-aside is to be made is greater than 3%, then the
156     difference between the annual percentage change in the state sales and use tax revenues
157     attributable to the retail sales of tourist-oriented goods and services and 3% shall be multiplied
158     by an amount equal to the state sales and use tax revenues attributable to the retail sales of
159     tourist-oriented goods and services from the fiscal year three years before the fiscal year in
160     which the set-aside is to be made.
161          (c) The total money appropriated to the account in [any] a fiscal year under Subsections
162     (8)(a) and (b) may not exceed the amount [in the account under this section in the fiscal year
163     immediately preceding the current] appropriated to the account in the preceding fiscal year by
164     more than $3,000,000.
165          (d) As used in this Subsection (8), "state sales and use tax revenues" are revenues
166     collected under Subsections 59-12-103(2)(a)(i)(A) and 59-12-103(2)(c)(i).
167          [(d)] (e) As used in this Subsection (8), "retail sales of tourist-oriented goods and
168     services" are [those sales by businesses] calculated by adding the following percentages of
169     sales from each business registered with the State Tax Commission under one of the following
170     codes of the [1997] 2012 North American Industry Classification System of the federal
171     Executive Office of the President, Office of Management and Budget:
172          [(i) NAICS Code 453 Miscellaneous Store Retailers;]
173          [(ii) NAICS Code 481 Passenger Air Transportation;]
174          [(iii) NAICS Code 487 Scenic and Sightseeing Transportation;]
175          [(iv) NAICS Code 711 Performing Arts, Spectator Sports and Related Industries;]
176          [(v) NAICS Code 712 Museums, Historical Sites and Similar Institutions;]
177          [(vi) NAICS Code 713 Amusement, Gambling and Recreation Industries;]
178          [(vii) NAICS Code 721 Accommodations;]
179          [(viii) NAICS Code 722 Food Services and Drinking Places;]
180          [(ix) NAICS Code 4483 Jewelry, Luggage, and Leather Goods Stores;]
181          [(x) NAICS Code 4853 Taxi and Limousine Service;]
182          [(xi) NAICS Code 4855 Charter Bus;]
183          [(xii) NAICS Code 5615 Travel Arrangement and Reservation Services;]
184          [(xiii) NAICS Code 44611 Pharmacies and Drug Stores;]
185          [(xiv) NAICS Code 45111 Sporting Goods Stores;]
186          [(xv) NAICS Code 45112 Hobby Toy and Game Stores;]
187          [(xvi) NAICS Code 45121 Book Stores and News Dealers;]
188          [(xvii) NAICS Code 445120 Convenience Stores without Gas Pumps;]
189          [(xviii) NAICS Code 447110 Gasoline Stations with Convenience Stores;]
190          [(xix) NAICS Code 447190 Other Gasoline Stations;]
191          [(xx) NAICS Code 532111 Passenger Car Rental; and]
192          [(xxi) NAICS Code 532292 Recreational Goods Rental.]
193          [(e) The Division of Finance shall for each fiscal year transfer the first $6,000,000 of
194     ongoing money in the account to the General Fund.]
195          (i) 80% of the sales from each business under NAICS Codes:
196          (A) 532111 Passenger Car Rental;
197          (B) 53212 Truck, Utility Trailer, and RV (Recreational Vehicle) Rental and Leasing;
198          (C) 5615 Travel Arrangement and Reservation Services;
199          (D) 7211 Traveler Accommodation; and
200          (E) 7212 RV (Recreational Vehicle) Parks and Recreational Camps;
201          (ii) 25% of the sales from each business under NAICS Codes:
202          (A) 51213 Motion Picture and Video Exhibition;
203          (B) 532292 Recreational Goods Rental;
204          (C) 711 Performing Arts, Spectator Sports, and Related Industries;
205          (D) 712 Museums, Historical Sites, and Similar Institutions; and
206          (E) 713 Amusement, Gambling, and Recreation Industries;
207          (iii) 20% of the sales from each business under NAICS Code 722 Food Services and
208     Drinking Places;
209          (iv) 18% of the sales from each business under NAICS Codes:
210          (A) 447 Gasoline Stations; and
211          (B) 81293 Parking Lots and Garages;
212          (v) 14% of the sales from each business under NAICS Code 8111 Automotive Repair
213     and Maintenance; and
214          (vi) 5% of the sales from each business under NAICS Codes:
215          (A) 445 Food and Beverage Stores;
216          (B) 446 Health and Personal Care Stores;
217          (C) 448 Clothing and Clothing Accessories Stores;
218          (D) 451 Sporting Goods, Hobby, Musical Instrument, and Book Stores;
219          (E) 452 General Merchandise Stores; and
220          (F) 453 Miscellaneous Store Retailers.
221          Section 3. Effective date.
222          This bill takes effect on July 1, 2015.