BILL REQ. #:  H-2094.1 

Read first time 02/25/2005.   Referred to Committee on Appropriations.

     AN ACT Relating to tourism promotion; and amending RCW 43.330.094, 43.88.093, and 43.88.094.

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

Sec. 1   RCW 43.330.094 and 2003 c 153 s 4 are each amended to read as follows:
     The tourism development and promotion account is created in the state treasury. All receipts from RCW 36.102.060(10) and 43.330.090(3)(a) must be deposited into the account. Moneys in the account received under RCW 36.102.060(10) may be spent only after appropriation. No appropriation is required for expenditures from moneys received under RCW 43.330.090(3)(a). In addition, funds under RCW 43.88.093 shall be deposited in this account and shall be available for the purposes of this act. Expenditures from the account may be used by the department of community, trade, and economic development only for the purposes of expanding and promoting the tourism industry in the state of Washington.

Sec. 2   RCW 43.88.093 and 1998 c 299 s 3 are each amended to read as follows:
     (1) When developing a biennial budget for the tourism development division of the department of community, trade, and economic development, the request for funding submitted to the office of financial management shall be calculated according to the formula in RCW 43.88.094. The request shall be a specific designated amount in the budget request for the department of community, trade, and economic development.
     (2) ((This section expires June 30, 2008)) In the biennial budget, there shall be an amount equal to the funding request developed under subsection (1) of this section appropriated and deposited in the tourism development and promotion account in RCW 43.330.094.

Sec. 3   RCW 43.88.094 and 1998 c 299 s 4 are each amended to read as follows:
     (1) The budget amount designated in RCW 43.88.093(1) is the sum of the base amount and the growth component as calculated under subsection (2) of this section.
     (2) The director of the department of community, trade, and economic development shall calculate the tourism development division budget in consultation with the appropriate agencies in the following manner:
     (a) The base amount, beginning in the budget for the biennium ending June 30, 2001, and for each subsequent biennium thereafter, equals the previous biennial budget, including any supplemental allocations and any growth component amounts from previous biennia.
     (b) For the growth component, beginning in the budget for the biennium ending June 30, 2001: (i) Compute the state retail sales tax revenues for the target business categories for the calendar year two years prior to the beginning of the biennium for which the budget request will be made; (ii) compute the state retail sales tax revenues for the target business categories for the calendar year four years prior to the beginning of the biennium for which the budget request will be made; (iii) calculate the percentage change in these two sales tax revenue amounts; (iv) if the percentage exceeds eight percent growth, calculate the amount of sales tax revenue that represents the excess in revenue growth greater than six percent; and (v) calculate the growth component by dividing the excess revenue growth by two. The amount of the growth component for any biennium shall not exceed two million dollars per fiscal year for the biennium.
     (3) As used in this section:
     (a) "Target business categories" means businesses in standard industrial classification codes 58 (eating and drinking), 70 (lodging), 7514 (auto rental), and 79 (recreation). If at any time the United States office of management and budget or a successor agency should change or replace the present standard industrial classification code system, the department of community, trade, and economic development shall use the code system issued by the office of management and budget or its successor agency to determine codes corresponding to those listed in this definition.
     (b) "Retail sales" means the gross sales subject to the tax imposed in chapter 82.08 RCW received by businesses identified in department of revenue records by standard industrial classification codes 58, 70, 7514, and 79.
     (((4) This section expires June 30, 2008.))