Washington State
House of Representatives
Office of Program Research
BILL
ANALYSIS
Technology, Economic Development, & Veterans Committee
SSB 5492
Brief Description: Concerning sustainable state tourism promotion.
Sponsors: Senate Committee on Business, Financial Services & Trade (originally sponsored by Senators Riccelli, Chapman, Cleveland, Dozier, Goehner, Harris, Krishnadasan and Wilson, C.).
Brief Summary of Substitute Bill
  • Requires the Chair of the Washington Tourism Marketing Authority to appoint an eight-member advisory group composed of representatives from various sectors of the tourism industry.
  • Requires the advisory group to report recommendations for a self-supported assessment on business sectors of the tourism industry by November 1, 2025.
Hearing Date: 3/18/25
Staff: Martha Wehling (786-7067).
Background:

The Washington Tourism Marketing Authority (WTMA) contracts for marketing services that promote tourism.  The WTMA is governed by a Board of Directors (Board) made up of 13 members who receive staff support from the Department of Commerce (Commerce).  The Board selects a Chair from its membership.  The Chair must be a member from the tourism industry or related business.  The Board also has a nonvoting four-member advisory committee.

 

Board membership includes two representatives, two senators, and nine members with expertise in the tourism industry and related businesses, including hotel, restaurant, outdoor recreation, attractions, retail, and rental car businesses.  The advisory committee includes representatives from Commerce, the State Parks and Recreation Commission, the Department of Transportation, and a federally recognized Indian tribe.

 

The WTMA was created by legislation enacted in 2018, and contains directives related to the formation of the first Board, as well as ongoing appointments and operations.

 

The Statewide Tourism Marketing Account (Account) is funded from tax revenues on lodging, car rentals, and restaurants.  Expenditures from the Account are limited to implementation of the statewide tourism program and the operation of the WTMA.  A match of one-to-one nonstate or state fund, other than general fund state, must be provided for all expenditures from the Account.  Until July 1, 2025, 0.2 percent of taxes on retail sales of lodging, car rentals, and restaurants are deposited into the Account.  The Legislature must authorize the deposit, and it is limited to $3 million per biennium.  After July 1, 2025, the Legislature is not required to authorize the deposit.
Summary of Bill:

The Chair of the Board of Directors of the Washington Tourism Marketing Authority is required to appoint at least eight members to a Tourism Self-Supported Assessment Advisory Group (TSSAAG) within two weeks of the effective date of the legislation.  The TSSAAG is required to evaluate the viability of an industry self-supported assessment to fund statewide tourism promotion, recommend procedures to establish the self-supported assessment, and report to the Legislature.  Members of the TSSAAG must represent tourism industry sectors, including lodging, beverage, arts and culture, tour operators, attractions, transportation, and a statewide Washington tourism promotion nonprofit.

 

The TSSAAG is required to make recommendations to the Legislature by November 1, 2025, regarding:

  • classification of businesses included in a self-supported assessment;
  • methodology to conduct the self-supported assessment, including the petition process for businesses to approve the assessment;
  • rate of self-supported assessment for each business classification;
  • characteristics of the businesses that will benefit from the self-supported assessment;
  • duration of the self-supported assessment; and
  • establishment of an oversight board.

 

The TSSAAG will expire on June 1, 2026, and must comply with the appointment requirements in RCW 43.18A.020.  The Department of Commerce must comply with the reporting requirements to the Office of Equity in RCW 43.18A.030.

 

Funds in the Statewide Tourism Marketing Account may be used to pay the administrative costs of the TSSAAG until June 30, 2026.

 

The directives describing the formation of the first Board of Directors and first contract with a statewide nonprofit organization are removed.
Appropriation: None.
Fiscal Note: Requested on March 10, 2025.
Effective Date: The bill takes effect 90 days after adjournment of the session in which the bill is passed.