BILL REQ. #:  S-1501.5 

READ FIRST TIME 03/05/03.   

     AN ACT Relating to the use of hotel-motel taxes for tourism promotions; and amending RCW 67.28.080 and 67.28.1817.

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

Sec. 1   RCW 67.28.080 and 1997 c 452 s 2 are each amended to read as follows:
     The definitions in this section apply throughout this chapter unless the context clearly requires otherwise.
     (1) "Acquisition" includes, but is not limited to, siting, acquisition, design, construction, refurbishing, expansion, repair, and improvement, including paying or securing the payment of all or any portion of general obligation bonds, leases, revenue bonds, or other obligations issued or incurred for such purpose or purposes under this chapter.
     (2) "Municipality" means any county, city or town of the state of Washington.
     (3) "Operation" includes, but is not limited to, operation, management, and marketing.
     (4) "Person" means the federal government or any agency thereof, the state or any agency, subdivision, taxing district or municipal corporation thereof other than county, city or town, any private corporation, partnership, association, or individual.
     (5) "Tourism" means economic activity resulting from tourists, which may include sales of overnight lodging, meals, tours, gifts, or souvenirs.
     (6) "Tourism promotion" means activities and expenditures designed to increase tourism, including but not limited to advertising, publicizing, or otherwise distributing information for the purpose of attracting and welcoming tourists; developing strategies to expand tourism; operating tourism promotion agencies; and funding marketing of special events and festivals designed to attract tourists.
     (7) "Tourism-related facility" means real or tangible personal property with a usable life of three or more years, or constructed with volunteer labor, and used to support tourism, performing arts, or to accommodate tourist activities. Only facilities primarily intended to attract tourists shall be eligible for funding under this chapter.
     (8) "Tourist" means a person who travels from a place of residence to a different town, city, county, state, or country, for purposes of business, pleasure, recreation, education, arts, heritage, or culture.

Sec. 2   RCW 67.28.1817 and 1998 c 35 s 3 are each amended to read as follows:
     (1) Any municipality that has imposed a tax under this chapter or before proposing imposition of a new tax under this chapter, an increase in the rate of a tax imposed under this chapter, repeal of an exemption from a tax imposed under this chapter, or a change in the use of revenue received under this chapter, a municipality ((with a population of five thousand or more)) where more than five thousand dollars were generated during the previous calendar year for the fund established under RCW 67.28.1815 shall establish a lodging tax ((advisory)) committee under this section. A lodging tax ((advisory)) committee shall consist of ((at least five)) up to seven members, appointed by the legislative body of the municipality, unless the municipality has a charter providing for a different appointment authority. The committee membership shall ((include)) consist of the following: (a) ((At least two)) Up to three members who are representatives of businesses required to collect tax under this chapter; ((and)) (b) ((at least two)) up to three members who are persons involved in activities authorized to be funded by revenue received under this chapter; and (c) one member who is an elected official of the municipality. The members of the committee shall select their chair. Persons who are eligible for appointment under (a) of this subsection are not eligible for appointment under (b) of this subsection. ((Persons who are eligible for appointment under (b) of this subsection are not eligible for appointment under (a) of this subsection.)) Organizations representing businesses required to collect tax under this chapter, organizations involved in activities authorized to be funded by revenue received under this chapter, and local agencies involved in tourism promotion may submit recommendations to the municipality for membership on the committee. The number of members who are representatives of businesses required to collect tax under this chapter shall equal the number of members who are involved in activities authorized to be funded by revenue received under this chapter. ((One member shall be an elected official of the municipality who shall serve as chair of the committee. An advisory)) A committee for a county may include one nonvoting member who is an elected official of a city or town in the county. ((An advisory)) A committee for a city or town may include one nonvoting member who is an elected official of the county in which the city or town is located. The appointing authority shall review the membership of the advisory committee annually and make changes as appropriate.
     (2) Any municipality that proposes imposition of a tax under this chapter, an increase in the rate of a tax imposed under this chapter, repeal of an exemption from a tax imposed under this chapter, or a change in the use of revenue received under this chapter ((shall)), including a change in the proportional allocation of funds, may submit the proposals to the lodging tax ((advisory)) committee for review ((and)), comment, and approval. ((The submission shall occur at least forty-five days before final action on or passage of the proposal by the municipality.)) The ((advisory)) committee shall submit comments on the proposals, including recommendations for approval or rejection, in a timely manner after soliciting public comment through generally applicable public comment procedures. The comments shall include an analysis of the extent to which the proposal will accommodate activities for tourists or increase tourism, and the extent to which the proposal will affect the long-term stability of the fund created under RCW 67.28.1815. ((Failure of the advisory committee to submit comments before final action on or passage of the proposal shall not prevent the municipality from acting on the proposal. A municipality is not required to submit an amended proposal to an advisory committee under this section.)) A municipality may accept or reject proposals approved by the lodging tax committee, but shall not add to the approved proposal list, notwithstanding the municipality's ability to submit a proposal to the committee for review, comment, and approval.
     (3) The lodging tax committee shall recommend the use of at least seventy-five percent of the funds generated every calendar year. Funds pledged on or after July 1, 2003, and not used within the seven years shall revert back to the fund. All expenditures including multiyear allocations from the fund for a project or proposal shall be reviewed by the lodging tax committee and submitted to the legislative authority of the municipality for their approval, except if an allocation is to secure financing or to retire debt for a tourist-related facility. The lodging tax committee shall meet annually or as often as the lodging tax committee deems appropriate.