House Bill 419

(As Sent to Governor)

AN ACT TO REQUIRE THE DEPARTMENT OF FINANCE AND ADMINISTRATION TO ESTABLISH A PROGRAM FOR THE PURPOSE OF PROVIDING FUNDS TO ASSIST CERTAIN MUSEUMS IN PAYING CERTAIN COSTS AND PROVIDING FUNDS TO DESTINATION MARKETING ORGANIZATIONS TO ASSIST IN PAYING COSTS OF CERTAIN MARKETING ACTIVITIES; TO DEFINE THE TERMS "DESTINATION MARKETING ORGANIZATION" AND "MARKETING ACTIVITIES" FOR THE PURPOSES OF THIS ACT; TO REQUIRE THE DEPARTMENT OF FINANCE AND ADMINISTRATION TO ESTABLISH A PROGRAM FOR THE PURPOSE OF PROVIDING FUNDS TO NARRATRIP LLC, TO USE TO ASSIST MUNICIPALITIES IN THE STATE IN PAYING COSTS TO PARTICIPATE IN AND BE PROMOTED AS PART OF THE BUSINESS'S MOBILE APPS GEARED TOWARD PROMOTING TOURISM IN THE STATE; AND FOR RELATED PURPOSES.

BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MISSISSIPPI:

SECTION 1. The COVID-19 public health emergency has had a significant negative impact on Mississippi's tourism industry. American Rescue Plan Act funds are specifically targeted toward assisting in the recovery of the tourism and hospitality sectors. The funds provided in this act are necessary expenditures related to COVID-19, the purpose of which is to publicize the resumption of tourism activities and steps taken to ensure a safe tourism experience and to support the travel and hospitality economy of Mississippi. It is the intention of the Legislature that the activities defined in this act will address the negative economic impacts of COVID-19 on the tourism, travel, and hospitality industries as allowed by the American Rescue Plan Act of 2021 and subsequent guidance issued by the United States Department of Treasury.

SECTION 2. (1) As used in this section, the following words and phrases shall have the meanings ascribed in this section unless the context clearly indicates otherwise:

(a) "Destination marketing organization" means an organization that received funds under Section 57-123-7, Mississippi Code of 1972.

(b) "Marketing activities" means multimedia marketing and advertising, including digital media, broadcast media and printed media, including travel publications, production, travel market sector analysis, consumer travel sentiment, public relations, communication strategy, direct sales bookings, group tour bookings, tourism development and administrative costs to execute marketing activities related to the business disruption effects of the Coronavirus Disease 2019 as expressed in Section 1 of this act.

(2) (a) The Department of Finance and Administration shall establish a program for the purpose of providing funds to assist destination marketing organizations in paying costs for marketing activities as provided in this section and to assist certain museums as provided in this section. Monies disbursed by the Department of Finance and Administration under this section shall be disbursed in compliance with all requirements and/or conditions on funds appropriated from the Coronavirus State Fiscal Recovery Fund for the program established under this section. Monies in the fund shall be disbursed by the Department of Finance and Administration as follows:

(i) Twenty-one Million Dollars ($21,000,000.00) shall be disbursed as provided in paragraph (b) of this subsection (2) to assist destination marketing organizations in paying costs for marketing activities; and

(ii) One Million Dollars ($1,000,000.00) shall be disbursed to the GRAMMY® Museum Mississippi, in Cleveland, Mississippi, to assist in paying costs associated with advertising and other forms of promoting and publicizing the museum and museum related activities, and repairs and renovations of and upgrades and improvements to the museum for health and safety purposes related to the Coronavirus Disease 19.

(b) (i) The Department of Finance and Administration shall determine, in conjunction with the destination marketing organizations, the allocation of funds under paragraph (a)(i) of this subsection (2) and shall disburse funds as follows:

1. Not more than Nine Million Four Hundred Twenty-seven Thousand Five Hundred Fifty-seven Dollars ($9,427,557.00) of such monies shall be allocated to destination marketing organizations in a manner that will provide monies to a destination marketing organization in an amount equal to seventy-five percent (75%) of the destination marketing organization's marketing and advertising expenditures during the 2019 fiscal year, and

2. Not more than Eleven Million Five Hundred Seventy-two Thousand Four Hundred Forty-three Dollars ($11,572,443.00) of such monies shall be allocated to destination marketing organizations based on the proportion that a destination marketing organization's contribution toward total tourism visitors in the state according to the 2019 Fiscal Year Visit Mississippi Visitors Profile Report bears to all destination marketing organizations' contributions toward total tourism visitors in the state according to the 2019 Fiscal Year Visit Mississippi Visitors Profile Report. However, a destination marketing organization shall not receive an amount less than One Hundred Twenty-five Thousand Dollars ($125,000.00) under this item 2.

(ii) Destination marketing organizations receiving funds under this paragraph (b) shall provide details related to their planned expenditures to the Department of Finance and Administration prior to funds being disbursed. If the plans submitted by the destination marketing organizations include activities described in this section as eligible under this program, the department shall approve the plan within thirty (30) days of receipt of the plans.

(iii) Before receiving funds under this paragraph (b), a destination marketing organization must certify to the Department of Finance and Administration that:

1. The funds will only be used for marketing activities, and

2. The destination marketing organization will comply with applicable federal and state regulations and requirements related to American Rescue Plan Act funds, and

3. The destination marketing organization will obligate all funds by December 31, 2024, and fully expend all funds by December 31, 2026.

(iv) Destination marketing organizations receiving funds under this paragraph (b) shall keep and maintain records related to expenditures. Destination marketing organizations receiving funds under this paragraph (b) shall also track impacts of their marketing activities through special levy tax receipts, hotel occupancy indicators, other tourism industry metrics, and analytics from marketing campaigns, as appropriate. Such destination marketing organizations shall provide semi-annual reports on expenditures and economic impacts of their marketing activities to the Department of Finance and Administration, the Governor, the Lieutenant Governor, the Speaker of the House of Representatives and the Department of Audit.

(v) Subject to applicable purchasing laws, destination marketing organizations will give preference, when available and practical, to Mississippi-based companies for any new contracts entered into for marketing activities.

(3) The Department of Finance and Administration and the Department of Audit shall have all powers necessary for the implementation of this section.

SECTION 3. (1) The Department of Finance and Administration shall establish a program for the purpose of providing funds to certain entities as provided in this section. The Department of Finance and Administration shall disburse One Million Dollars ($1,000,000.00) under this section to NarraTrip LLC, to use to assist municipalities in the state in paying costs to participate in and be promoted as part of the business's mobile apps geared toward promoting tourism in the state, including, but not limited to, providing information regarding historic sites, roadside markers and dining, music and art experiences.

(2) The Department of Finance and Administration shall have all powers necessary for the implementation of this section.

SECTION 4. This act shall take effect and be in force from and after July 1, 2023.