BILL REQ. #:  S-3344.1 

Read first time 01/17/14.   Referred to Committee on Trade & Economic Development.

     AN ACT Relating to long-term funding for a state tourism marketing program; creating new sections; providing an effective date; and declaring an emergency.

BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF WASHINGTON:

NEW SECTION.  Sec. 1   (1) The legislature finds that after the termination of funding for the state tourism office, the Washington tourism alliance, a statewide industry organization with members from all sectors of the tourism industry, has maintained a basic state tourism marketing program. In spite of that, competition from other states and provinces has caused Washington state's percentage growth of tourism to be below the national average. Tourism is the fourth largest export industry in Washington state, employs more than one hundred fifty-three thousand individuals, and contributes significantly to state and local tax revenues. It is composed of large and small businesses from all corners of Washington state. Because of the number and diversity of businesses in the tourism industry and the desire to prevent further decline in the state's tourism industry, the legislature finds that it is in the state's best interest to identify a long-term, significant source of funding that can only be used for implementing a state tourism marketing program. The program should be supported by contributions from the primary business sectors of the state's tourism industry. The legislature also finds that a state tourism marketing program is best governed by the businesses and entities that contribute funding, including in-kind contributions.
     (2) It is the intent of the legislature to enact the structure of a mechanism that will provide funding for a state tourism marketing program, including the sources of funding and governance organization which will determine the specific use and allocation of the funds. Further, it is the intent of the legislature that appropriate state agencies will work with the Washington tourism alliance to devise a plan to collect funds necessary for a state tourism marketing program and ensure that the funds are used only for that purpose.

NEW SECTION.  Sec. 2   (1) The Washington tourism alliance has determined that a reasonable amount to initially implement a state tourism marketing program is seven million five hundred thousand dollars. This amount must be raised from five major sectors of the tourism industry. These sectors are lodging, food service, attractions and entertainment, retail, and transportation. Based on annual economic studies that identify each sector's contribution to tourism revenues and the North American classification system codes that make up each sector, these sectors must contribute the following amounts in a manner to be described in the report required under subsection (2) of this section:
     (a) Lodging - two million four hundred thousand dollars;
     (b) Food service - two million one hundred thousand dollars;
     (c) Attractions and entertainment - nine hundred seventy-five thousand dollars;
     (d) Retail - one million four hundred twenty-five thousand dollars; and
     (e) Transportation - six hundred thousand dollars.
     (2) By December 1, 2014, a report must be submitted to the appropriate legislative committees from the Washington tourism alliance proposing the manner in which the amounts allocated to each sector will be collected and the mechanism that can be used to ensure that the funds are used only by the Washington tourism alliance for a state tourism marketing program including its administration. The legislature must direct the appropriate agencies of state government to work with the Washington tourism alliance to assist in developing the collection method. These agencies include but are not limited to the department of revenue, department of commerce, the state treasurer's office, and the secretary of state.
     (3) In addition to the five sectors in subsection (1) of this section, the Washington tourism alliance must identify and include in the report other tourism sectors, businesses, and government entities which are part of the tourism industry and could provide additional funding for a state marketing program.

NEW SECTION.  Sec. 3   (1) As part of the report to the legislature required under section 2(2) of this act, the Washington tourism alliance must include a proposal for a governance structure which will determine the use of the funds, including a method to report on the effectiveness of the state tourism marketing plan. The report must also include a method for stopping the collection of funds from the sectors noted in section 2(1) of this act if the board determines that the funds are not being used in an appropriate manner.
     (2) The governance structure must include a board with a majority of representatives from the five sectors noted in section 2(1) of this act. Representatives from destination marketing organizations must also be included on the board. The board members must be chosen to ensure broad geographic representation and diversity in the size of businesses. Other representatives may be chosen from businesses and entities that voluntarily make a significant contribution to state tourism marketing funding. All board members must represent the interests of the entire state.
     (3) Initial board appointments must be made by the current Washington tourism alliance board. Statewide trade associations that represent any of the sectors noted in section 2(1) of this act must submit nominations from their sector for the board. The nominations must reflect the size and geographic diversity of the sector represented by the trade association and must be at least twice the number of positions to be filled by the nominations. Initial and subsequent board appointments must be made from these nominations.
     (4) The governance structure must include a proposal for a marketing committee and an executive committee. The marketing committee may include representatives from the tourism industry who are not members of the board.

NEW SECTION.  Sec. 4   This act is necessary for the immediate preservation of the public peace, health, or safety, or support of the state government and its existing public institutions, and takes effect April 1, 2014.