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House Bill Analysis HB 1258 — Statewide Tourism Marketing Account (Washington Office of Program Research)

Summary

A House Bill Analysis of HB 1258, Increasing tourism to Washington state through enhancement of the statewide tourism marketing account and changing necessary match requirements, prepared by the Washington State House of Representatives Office of Program Research, with a hearing date of 1/17/23. The brief summary says the bill requires a one-to-one, instead of two-to-one, match for expenditures from the Statewide Tourism Marketing Account, and increases the revenue deposited into the Account from up to $3 million per biennium to up to $26 million. The background describes the Washington Tourism Marketing Authority, established in 2018. It lists the appropriation as None and a fiscal note requested on January 12, 2023.

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“House Bill Analysis HB 1258 — Statewide Tourism Marketing Account (Washington Office of Program Research).” Archived at Pandemic Darlings, https://pandemicdarlings.com/source-documents/2023-01-17-a30372-d247828-bill-analysis-30bea44e63/, SHA-256 218902e5c95cb38263ecc6957f4f30475f594918eacaf34be4c015cac028d755.

Full text

Washington State                  BILL
House of Representatives
Office of Program Research   ANALYSIS
Innovation, Community & Economic
Development, & Veterans Committee
                                        HB 1258
Brief Description: Increasing tourism to Washington state through enhancement of the
     statewide tourism marketing account and changing necessary match requirements.

Sponsors: Representatives Ryu, Volz, Steele, Walen, Reeves, Waters, Chambers, Reed,
    Christian, Cortes, Callan, Schmidt, Barkis and Fosse.


                                     Brief Summary of Bill
          • Requires a one-to-one, instead of two-to-one, nonstate or state fund,
            other than state general fund, match for all expenditures from the
            Statewide Tourism Marketing Account (Account).
          • Increases the amount of revenue collected from the tax on the retail sales
            of lodging, car rentals, and restaurants that must be deposited into the
            Account from up to $3 million per biennium to up to $26 million.


Hearing Date: 1/17/23

Staff: Cassie Jones (786-7303).

Background:

Washington Tourism Marketing Authority.

Established in 2018, the Washington Tourism Marketing Authority (Authority) is responsible for
contracting for statewide tourism marketing services that promote tourism in Washington. The
Authority is governed by a board of directors consisting of four members of the Legislature and
nine representatives, appointment by the Governor, with expertise in the tourism industry and




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

House Bill Analysis                             -1-                                         HB 1258
related businesses, including hotel, restaurant, outdoor recreation, attractions, retail, and rental
car businesses. A nonvoting advisory committee advises the board and is comprised of one
representative from the Department of Commerce, the State Parks and Recreation Commission,
the Department of Transportation, representatives of other state agencies as deemed appropriate
by the Authority, and one member from a federally recognized Indian tribe.

Statewide Tourism Marketing Account.

Of the taxes collected on the retail sales of lodging, car rentals, and restaurants, 0.2 percent must
be deposited into the Statewide Tourism Marketing Account (Account). Revenue collections
may be up to $3 million per biennium and must be deposited into the Account. The deposit to
the Account may only occur if the Legislature authorizes the deposit in the biennial omnibus
appropriation act.

Expenditures from the account may only be made for allowable expenses related to
implementation of the statewide tourism program and operation of the Authority. The account is
subject to appropriation. A two-to-one non-state or state fund, other than state general fund,
match must be provided for all expenditures from the Account. A match may consist of nonstate
or state fund, other than state general fund, cash contributions, the value of an advertising
equivalency contribution, or an in-kind contribution. The Authority's board of directors must
determine criteria for what qualifies as an in-kind contribution.

Use of Funds.

From amounts appropriated for the Authority and from other moneys available to it, the
Authority may use funds for the following:
   • entering into a contract for a multiple year statewide tourism marketing plan with a
     statewide nonprofit organization whose sole purpose is marketing Washington to tourists
     which must include focuses on: (1) rural, tourism-dependent counties; (2) natural wonders
     and outdoor recreation opportunities of the state; (3) attraction of international tourists; (4)
     identification of local offerings for tourists; and (5) assistance for tourism areas adversely
     impacted by natural disasters;
   • contracting for the evaluation of the impact of the statewide tourism marketing program;
     and
   • paying for administrative expenses of the Authority, which may not exceed two percent of
     the state portion of funds collected in any fiscal year.

Summary of Bill:

A one-to-one, instead of two-to-one, nonstate or state fund, other than state general fund, match
must be provided for all expenditures from the account.

The amount of revenue collected from the tax on the retail sales of lodging, car rentals, and
restaurants that must be deposited into the account is increased from up to $3 million per


House Bill Analysis                              -2-                                         HB 1258
biennium to up to $26 million.

Appropriation: None.

Fiscal Note: Requested on January 12, 2023.

Effective Date: The bill takes effect 90 days after adjournment of the session in which the bill is
passed.




House Bill Analysis                            -3-                                         HB 1258

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