SENATE BILL REPORT

SB 5819

This analysis was prepared by non-partisan legislative staff for the use of legislative members in their deliberations. This analysis is not a part of the legislation nor does it constitute a statement of legislative intent.

Majority Report: Do pass.

Signed by Senators Brown, Chair; Braun, Vice Chair; Chase, Ranking Minority Member; Angel, Ericksen, Frockt and McCoy.

Background: In 2003 the Legislature authorized the creation of tourism promotion areas for the purpose of welcoming tourists and operating tourism destination marketing organizations. Legislative authorities of counties with populations between 40,000 and 1 million, and all incorporated cities and towns located in such counties, were authorized to establish tourism promotion areas and impose a charge on lodging to increase tourism and conventions within such areas. A fee may be assessed on lodging businesses of up to $2 per night of stay. Funding must be used for advertising, publicizing, or otherwise distributing information to attract and welcome tourists, and operating tourism destination marketing organizations, to increase convention and tourism business.

In 2009 tourism promotion areas in a county with a population of 1 million or more were authorized. A legislative authority for such a county is two or more jurisdictions acting under an interlocal agreement to jointly establish and operate a tourism promotion area.

Summary of Bill: The requirement for jurisdictions within a county with a population of 1 million or more to act jointly for the purposes of establishing and operating a tourism promotion area is eliminated for cities incorporated after January 1990 with a population greater than 89,000.

Staff Summary of Public Testimony: PRO: Federal Way has a robust hotel industry that wants to establish a tourism promotion area to support tourism efforts in the community, including a new performance arts center. Since there are not neighboring jurisdictions that wish to jointly establish a tourism promotion area, this modification would allow Federal Way to establish their own tourism promotion area to support the local hotel industry.