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:
19 Other Special Clauses:
20 This bill provides a special effective date.
21 Utah Code Sections Affected:
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
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 [
30 (a) [
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 [
40 (ii) Stay Another Day and Bounce Back Account, created in Section 63M-1-3411;
42 coordinate and integrate advertising and branding themes [
44 attractions of the state [
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
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
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 [
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 [
99 the statewide advertising, marketing, and branding campaign for promotion of the state as
100 conducted by [
101 (6) (a) For [
102 shall annually allocate 10% of the account money appropriated to [
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 [
107 accounting of the use of money the sports organization receives under this Subsection (6); and
108 (ii) partner with [
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 [
118 (7) Money deposited into the account shall [
119 appropriation from the cumulative sales and use tax revenue increases [
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 [
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.
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 [
162 (8)(a) and (b) may not exceed the amount [
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).
168 services" are [
169 sales from each business registered with the State Tax Commission under one of the following
170 codes of the [
171 Executive Office of the President, Office of Management and Budget:
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.