Engrossed Substitute Senate Bill 6592 - Tourism Authorities (State of Washington, 66th Legislature)

Summary

Engrossed Substitute Senate Bill 6592 of the State of Washington, 66th Legislature, by Senate Local Government (originally sponsored by Senators Holy, Hunt, Takko, and Keiser), read first time 02/05/20. It is an act relating to tourism authorities, amending RCW 35.101.010 and 35.101.130, adding new sections to chapter 35.101 RCW and providing an expiration date. The text defines a lodging business as a person that furnishes lodging taxable by the state that has forty or more lodging units. It also requires an assessment of whether additional tourism promotion area charges above two dollars contributed to an actual increase in the number of tourists.

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                     ENGROSSED SUBSTITUTE SENATE BILL 6592


     State of Washington         66th Legislature     2020 Regular Session

     By Senate Local Government (originally sponsored by Senators Holy,
     Hunt, Takko, and Keiser)

     READ FIRST TIME 02/05/20.




1        AN ACT Relating to tourism authorities; amending RCW 35.101.010
2    and 35.101.130; adding new sections to chapter 35.101 RCW; and
3    providing an expiration date.


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


 5       Sec. 1.   RCW 35.101.010 and 2015 c 131 s 1 are each amended to
 6   read as follows:
 7       Unless the context clearly requires otherwise, the definitions in
 8   this section apply throughout this chapter.
 9       (1) "Area" means a tourism promotion area.
10       (2)(a)   Except  as   otherwise  provided  in   this  subsection,
11   "legislative authority" means the legislative authority of any county
12   ((with a population greater than forty thousand)), or of any city or
13   town within such a county, including unclassified cities or towns
14   operating under special charters.
15       (b) Except as provided in (c) of this subsection, in any county
16   with a population of one million or more, "legislative authority"
17   means two or more jurisdictions acting jointly as the legislative
18   authority under an interlocal agreement created under chapter 39.34
19   RCW for the joint establishment and operation of a tourism promotion
20   area.


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 1       (c) For a city incorporated after January 1990, with a population
 2   greater than eighty-nine thousand, and located in a county described
 3   in (b) of this subsection, "legislative authority" means the city's
 4   legislative authority.
 5       (3) "Lodging business" means a person that furnishes lodging
 6   taxable by the state under chapter 82.08 RCW that has forty or more
 7   lodging units.
 8       (4) "Tourism promotion" means activities and expenditures
 9   designed to increase tourism and convention business, including but
10   not limited to advertising, publicizing, or otherwise distributing
11   information for the purpose of attracting and welcoming tourists, and
12   operating tourism destination marketing organizations.
13       (5) "Tourist" means a person who travels for business or pleasure
14   on a trip:
15       (a) Away from the person's place of residence or business and
16   stays overnight in paid accommodations;
17       (b) To a place at least fifty miles away one way by driving
18   distance from the person's place of residence or business for the day
19   or stays overnight. However, island communities without land access
20   are exempt from the mileage requirement under this subsection (5)(b);
21   or
22       (c) To another country or state outside of the person's place of
23   residence or business.


24       NEW SECTION. Sec. 2. A new section is added to chapter 35.101
25   RCW to read as follows:
26       (1) In addition to the two dollar charge authorized by RCW
27   35.101.050, a legislative authority may impose an additional charge
28   of up to three dollars per night of stay on the furnishing of lodging
29   by a lodging business located in the area.
30       (2) This section expires July 1, 2027.


31       Sec. 3. RCW 35.101.130 and 2003 c 148 s 13 are each amended to
32   read as follows:
33       (1) The legislative authority imposing the charge shall have sole
34   discretion as to how the revenue derived from the charge is to be
35   used to promote tourism that increases the number of tourists to the
36   area. However, the legislative authority may appoint existing
37   advisory boards or commissions to make recommendations as to its use,


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 1   or the legislative authority may create a new advisory board or
 2   commission for ((the [that])) that purpose.
 3       (2)   The  legislative   authority  may   contract  with  tourism
 4   destination marketing organizations or other similar organizations to
 5   administer the operation of the area, so long as the administration
 6   complies with all applicable provisions of law, including this
 7   chapter, and with all county, city, or town resolutions and
 8   ordinances, and with all regulations lawfully imposed by the state
 9   auditor or other state agencies.
10       (3) If a majority of those lodging businesses assessed the
11   charges imposed under RCW 35.101.050 or section 2 of this act
12   petition in writing to the legislative authority that the charge be
13   removed, the legislative authority must remove the charge.
14       (4) Any legislative authority with a charge in place under RCW
15   35.101.050 as of January 1, 2020, shall not have the charge be
16   amended as provided under subsection (3) of this section unless the
17   legislative authority has adopted an increase to the charge as
18   authorized in section 2 of this act.


19       NEW SECTION. Sec. 4. A new section is added to chapter 35.101
20   RCW to read as follows:
21       Each tourism promotion area must conduct a program review of the
22   additional tourism promotion area charge established in section 2 of
23   this act. The review must be completed and submitted to the
24   appropriate committees of the legislature by January 1, 2026. The
25   review must:
26       (1) Analyze how tourism promotion area charge funds were used
27   during the period when the additional charge was imposed;
28       (2) Identify additional marketing and promotional measures
29   conducted or purchased with additional funds beyond the current two
30   dollar charge;
31       (3) Assess whether additional tourism promotion area charges
32   above two dollars contributed to an actual increase in the number of
33   tourists, as defined in RCW 35.101.010; and
34       (4) Assess the average additional cost per visit per tourist due
35   to additional tourism promotion area charges above two dollars.

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