MISSISSIPPI LEGISLATURE
2013 Regular Session
To: Tourism; Appropriations
By: Senator(s) Sojourner, Chassaniol, Butler (36th), Butler (38th), Gandy, Horhn, Jackson (11th), Jordan, Watson
AN ACT TO CREATE THE MISSISSIPPI TOURISM ADVISORY BOARD TO ADVISE THE MISSISSIPPI DEVELOPMENT AUTHORITY ON STRATEGIES FOR ADVERTISING AND MARKETING TOURISM IN THIS STATE; TO PROVIDE FOR THE MEMBERSHIP OF THE BOARD; TO CREATE A SPECIAL FUND IN THE STATE TREASURY TO BE DESIGNATED THE TOURISM ADVERTISING AND MARKETING FUND; TO PROVIDE THAT MONEY IN THE FUND SHALL BE USED TO DEFRAY COSTS INCURRED BY THE MISSISSIPPI DEVELOPMENT AUTHORITY IN ADVERTISING AND MARKETING MISSISSIPPI AS A TOURISM DESTINATION; TO ESTABLISH A FIVE-YEAR PILOT PROGRAM TO TEST A NEW FUNDING MECHANISM FOR THE STATE'S TRAVEL AND TOURISM ADVERTISING AND MARKETING BEGINNING IN FISCAL YEAR 2015; TO PROVIDE THAT STARTING IN FISCAL YEAR 2014 AND ENDING IN FISCAL YEAR 2018 THE COMMISSIONER OF REVENUE SHALL CALCULATE THE GROWTH IN FISCAL YEAR SALES TAX REVENUE FROM CERTAIN DEFINED CATEGORIES THAT ARE RELATED TO TOURISM AND CERTIFY THAT AMOUNT TO THE EXECUTIVE DIRECTOR OF THE DEPARTMENT OF FINANCE AND ADMINISTRATION; TO PROVIDE THAT IF THE AMOUNT SO CERTIFIED IS GREATER THAN ZERO, THE EXECUTIVE DIRECTOR SHALL TRANSFER THAT AMOUNT TO THE TOURISM ADVERTISING AND MARKETING FUND CREATED BY THIS ACT; TO PROVIDE THAT THE AMOUNT SO TRANSFERRED SHALL NOT EXCEED $15,000,000.00 IN ANY FISCAL YEAR ADJUSTED FOR INFLATION; TO PROVIDE THAT THE EXECUTIVE DIRECTOR OF THE MISSISSIPPI DEVELOPMENT AUTHORITY, IN CONSULTATION WITH THE EXECUTIVE DIRECTOR OF THE DEPARTMENT OF FINANCE AND ADMINISTRATION AND THE COMMISSIONER OF REVENUE, SHALL REVIEW THE PILOT PROGRAM AND MAKE RECOMMENDATIONS TO THE GOVERNOR AND THE LEGISLATURE ON WHETHER TO MAKE THE FUNDING MECHANISM PERMANENT AND, IF SO, WHETHER ANY CHANGES SHOULD BE MADE TO IT; TO AMEND SECTION 57-1-59, MISSISSIPPI CODE OF 1972, TO REVISE THE MISSISSIPPI DEVELOPMENT AUTHORITY'S GENERAL POWERS AND DUTIES WITH RESPECT TO TOURISM AND TO REQUIRE THE MISSISSIPPI DEVELOPMENT AUTHORITY TO PERFORM AN ANNUAL RETURN-ON-INVESTMENT STUDY ANALYZING THE DEPARTMENT'S SUCCESS PROMOTING MISSISSIPPI TOURISM AND FILE A REPORT CONTAINING THE FINDINGS OF THE STUDY WITH THE GOVERNOR, THE SECRETARY OF THE SENATE AND THE CLERK OF THE HOUSE OF REPRESENTATIVES; AND FOR RELATED PURPOSES.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MISSISSIPPI:
SECTION 1. (1) The Mississippi Tourism Advisory Board is established. The board shall consist of the Executive Director of the Mississippi Development Authority, the Director of the Division of Tourism of Mississippi Development Authority, the President of the Mississippi Tourism Association and seven (7) members to be appointed by the Governor as provided in subsection (2) of this section. All members of the board except the Executive Director of the Mississippi Development Authority and the Director of the Mississippi Development Authority Tourism Development Division, shall be voting members.
(2) The Governor shall, within sixty (60) days after the effective date of this act, appoint to the Mississippi Tourism Advisory Board one (1) individual who is a representative of convention and visitors' bureaus, one (1) individual who is a representative of the lodging industry, one (1) individual who is a representative of the restaurant industry, one (1) individual who is a representative of attractions, one (1) individual who is a representative of special events and festivals, one (1) individual who is a representative of agritourism, and one (1) individual who is a representative of the gaming industry. Of the initial appointments, two (2) individuals shall serve a term of one (1) year, three (3) individuals shall serve a term of two (2) years and the remainder shall serve a term of three (3) years. All members shall serve at the will and pleasure of the Governor. Thereafter, terms of office shall be for three (3) years. Each individual appointed to the board shall be a United States citizen.
(3) (a) Each member of the Mississippi Tourism Advisory Board shall hold office from the date of the member's appointment until the end of the term for which the member is appointed. Vacancies that occur on the board shall be filled in the manner prescribed for regular appointments to the board for the remainder of the unexpired term. A member shall continue in office subsequent to the expiration date of the member's term until the member's successor takes office or until sixty (60) days have elapsed, whichever occurs first. Any member appointed to the board is eligible for reappointment.
(b) The Governor shall designate one (1) member of the board as chairperson. The board shall meet upon the call of the chairman and shall elect such additional officers determined to be necessary. Four (4) members of the board shall constitute a quorum.
(c) Members of the board shall serve without compensation.
(d) The board shall make and from time to time amend and repeal bylaws.
(4) The duties and responsibilities of the Mississippi Tourism Advisory Board consist of:
(a) Advising the Mississippi Development Authority on strategies for advertising and marketing tourism in this state.
(b) Advising and provide input on the annual plan for the expenditure of funds in the Tourism Advertising and Marketing.
(c) Such other duties and responsibilities as directed by the Director of the Division of Tourism of the Mississippi Development Authority.
SECTION 2. (1) There is hereby created in the State Treasury a special fund to be designated as the Tourism Advertising and Marketing Fund which shall consist of money credited or transferred or appropriated to it and grants, gifts and contributions made directly to the fund. Money in the fund shall be used to defray costs incurred by the Mississippi Development Authority in advertising and marketing Mississippi as a tourism destination. Money in the fund shall not be used for salaries, operational expenses or for construction or repair and renovation of facilities.
(2) Money in the fund shall be expended by the Mississippi Development Authority for the purposes provided for in subsection (1) of this section upon appropriation by the Legislature. Within the fund there shall be created a reserve fund to be developed and adopted according to the authority of the Director of the Division of Tourism of Mississippi Development Authority and the advisory board. Unexpended amounts remaining in the fund at the end of a fiscal year shall not lapse and any investment earnings on amounts in the fund shall be deposited to the credit of the fund.
SECTION 3. (1) There is established a five-year pilot program to test a new funding mechanism for the state's travel and tourism advertising and marketing. The funding mechanism shall begin operation in fiscal year 2015 and be calculated as follows:
(a) (i) Not later than the twentieth day of October of each year, starting in 2014 and ending in 2018, the Commissioner of Revenue shall calculate the growth in fiscal year sales tax revenue from certain defined categories that are related to tourism and certify that amount to the Executive Director of the Department of Finance and Administration.
(ii) Not later than the twentieth day of October of each year, starting in 2014 and ending in 2018, the Commissioner of Revenue shall calculate and certify to the Executive Director of the Department of Finance and Administration the difference, if greater than zero, between the revenue collected from the tax imposed under the Mississippi Sales Tax Law during the twelve-month period ending on the last day of the preceding June and the revenue collected during the same twelve-month period one (1) year earlier, for all vendors classified under the industry codes identified in paragraph (b) of this subsection. On or before the last day of October of each year, starting in 2014 and ending in 2018, the Executive Director of the Department of Finance and Administration shall transfer from the State General Fund to the Tourism Advertising and Marketing Fund created in Section 2 of this act the amount certified by the Commissioner of Revenue under this paragraph; however, the transfer shall not exceed Fifteen Million Dollars ($15,000,000.00) for any fiscal year.
(iii) Each fiscal year, beginning in fiscal year 2016, the Commissioner of Revenue shall adjust the Fifteen Million Dollar ($15,000,000.00) annual limit on transfers to the Tourism Advertising and Marketing Fund. The adjustment shall be made by adding to the annual limit the product of multiplying the limit for the preceding fiscal year by the sum of one (1) plus the percentage increase in the Consumer Price Index for all urban consumers for the Southeast region, as determined by the United States Bureau of Labor Statistics, for the twelve-month period corresponding to the preceding fiscal year. The result shall be rounded to the nearest One Thousand Dollars ($1,000.00). The calculation of the percentage increase in the Consumer Price Index shall be done by taking the average index value over the twelve (12) months of the last completed fiscal year and comparing that to the average index value over the twelve (12) months of the immediately preceding fiscal year.
(b) The following industries included in the industrial classification system used by the Commissioner of Revenue shall be used in the computations under paragraph (a) of this section: air transportation; water transportation; interurban and rural bus transportation; taxi service; limousine service; other transit and ground passenger transportation; scenic and sightseeing transportation; support activities for air transportation; automotive equipment rental and leasing; travel arrangement and reservation services; performing arts companies; spectator sports; independent artists, writers, and performers; museums, historical sites, and similar institutions; amusement parks and arcades; gambling industries; hotels and motels; casino hotels; bed-and-breakfast inns; other travel accommodations; recreational vehicle parks and recreational camps; full-service restaurants; limited-service eating places; and drinking places (alcoholic beverages).
(2) The pilot program shall terminate when the last transfer of funds made in accordance with subsection (1)(a)(ii) of this section occurs in fiscal year 2018, specifically in October 2018. Prior to October 1, 2018, the Executive Director of the Mississippi Development Authority, in consultation with the Executive Director of the Department of Finance and Administration and the Commissioner of Revenue, shall review the pilot program and make recommendations to the Governor and the Legislature on whether to make the funding mechanism permanent and, if so, whether any changes should be made to it.
(3) It is the intent of the Legislature that the funds generated under the pilot program authorized by this section shall be in addition to, and not in lieu of, other funds appropriated to the Mississippi Development Authority for its activities related to tourism.
SECTION 4. Section 57-1-59, Mississippi Code of 1972, is amended as follows:
57-1-59. The Mississippi Development Authority shall have the following general powers and duties with respect to tourism:
(a) To promote and advertise the image of Mississippi both within and without the boundaries of this state;
* * *
( * * *b) To develop and maintain an
information services system to adequately guide tourists and the traveling
public within the boundaries of the state;
( * * *c) To develop and maintain an
extensive media program to adequately inform the national and international
consumer about Mississippi;
( * * *d) To enter into contracts and other
agreements with local tourism commissions or similar entities for the purpose
of developing regional strategies for tourism promotion. The Mississippi
Development Authority, in conjunction with the formulation of regional
strategies for tourism promotion, may require that local tourism commissions or
similar entities enter into agreements with the authority as a condition for
receiving any state grants to promote tourism; * * *
( * * *e) To develop programs and projects
promoting the state's heritage, history, culture, literature and arts,
including the positive recovery of the state after damages caused by natural
disasters, and demonstrating the state's attractiveness as a tourism
destination for those and other reasons * * *; and
(f) To perform an annual return-on-investment study analyzing the department's success promoting Mississippi tourism and file a report containing the findings of the study with the Governor, the Secretary of the Senate and the Clerk of the House of Representatives. The report shall also be made available to the public.
SECTION 5. This act shall take effect and be in force from and after July 1, 2013.