Senate Bill Report — SB 5492, Sustainable State Tourism Promotion (Business, Financial Services & Trade)

Summary

A Senate Bill Report on SB 5492, as of January 27, 2025, for the Senate Committee on Business, Financial Services & Trade, with committee activity listed as 1/29/25. The bill concerns sustainable state tourism promotion and establishes a tourism self-supported assessment advisory group of representatives from sectors of the Washington tourism industry. The group must submit written recommendations to the Legislature by November 1, 2025, including on assessment methodology and the assessment rate for each business classification. The background describes the Washington Tourism Marketing Authority, created in 2018, and the Statewide Tourism Marketing Account. The report lists the appropriation as None and a fiscal note requested on January 25, 2025.

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                            SENATE BILL REPORT
                                  SB 5492

                                      As of January 27, 2025

Title: An act relating to sustainable state tourism promotion.

Brief Description: Concerning sustainable state tourism promotion.

Sponsors: Senators Riccelli, Chapman, Cleveland, Dozier, Goehner, Harris, Krishnadasan and
    Wilson, C..

Brief History:
     Committee Activity: Business, Financial Services & Trade: 1/29/25.


                                     Brief Summary of Bill
           • Establishes a tourism self-supported assessment advisory group,
             composed of representatives from various sectors of the Washington
             tourism industry.
           • Requires the advisory group to report recommendations to the
             Legislature by November 1, 2025.


SENATE COMMITTEE ON BUSINESS, FINANCIAL SERVICES & TRADE

     Staff: Clint McCarthy (786-7319)

     Background: The Legislature created the Washington Tourism Marketing Authority
     (Authority) in 2018 as a public entity to manage financial resources and contract for
     statewide tourism marketing services. The Authority is governed by a board of directors,
     with assistance from a nonvoting advisory committee.

     Up to $3 million from revenue per biennium from a 0.2 percent of tax collected on retail
     sales of lodging, car rentals, and restaurants may be deposited into the Statewide Tourism
     Marketing Account (Account). Money in the Account can only be spent after appropriation.




     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.

Senate Bill Report                              -1-                                             SB 5492
     A match of one-to-one nonstate or state fund, other than general fund state, must be
     provided for all expenditures from the Account. The Account may be used for the operation
     of the Authority, the Statewide Tourism Marketing Program, and for certain allowable
     expenses.

     Allowable expenses include entering into a contract for a multiple-year statewide tourism
     marketing plan with an existing statewide nonprofit organization, which must include
     focuses on:
        • rural tourism-dependent counties;
        • natural wonders and outdoor recreation opportunities of the state;
        • attraction of international tourists;
        • identification of local offerings for tourists;
        • assistance for tourism areas adversely impacted by natural disasters;
        • contracting for the evaluation of the impact of the statewide tourism marketing
           program; and
        • administrative expenses of the Authority.

     Summary of Bill: Establishes a tourism self-supported assessment advisory group,
     composed of representatives from various sectors of the Washington tourism industry. The
     advisory group must include:
        • two members of the lodging sector;
        • one member of the beverage sector;
        • one member representing the arts and culture sector;
        • one member representing the tour operators sector;
        • one member representing the attractions sector;
        • one member representing the transportation sector; and
        • one member representing a statewide Washington tourism promotion nonprofit.

     The advisory group must submit written recommendations to the Legislature by November
     1, 2025, on key elements related to a self-supported assessment, including:
         • classification structure of businesses proposed to be included in the assessment;
         • assessment methodology, including a petition process for businesses to approve the
           assessment;
         • assessment rate for each business classification;
         • characteristics of businesses within each classification that would benefit from the
           assessment; and
         • creation of an oversight board for ratepayers of the assessment.

     Appropriation: None.

     Fiscal Note: Requested on January 25, 2025.

     Creates Committee/Commission/Task Force that includes Legislative members: No.



Senate Bill Report                           -2-                                       SB 5492
     Effective Date: Ninety days after adjournment of session in which bill is passed.




Senate Bill Report                            -3-                                        SB 5492


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