Senate Bill 2511

AN ACT TO CREATE SECTION 57-123-4, MISSISSIPPI CODE OF 1972, TO REQUIRE THE DEPARTMENT OF FINANCE AND ADMINISTRATION TO CREATE THE "MISSISSIPPI TOURISM RECOVERY FUND - ROUND 3" AS A SPECIAL FUND IN THE STATE TREASURY TO BE ADMINISTERED BY THE DEPARTMENT OF FINANCE AND ADMINISTRATION FOR THE PURPOSE OF PROVIDING FUNDS TO DESTINATION MARKETING ORGANIZATIONS; TO ASSIST IN PAYING COSTS OF CERTAIN MARKETING ACTIVITIES AND CERTAIN TOURISM DEVELOPMENT ACTIVITIES; AND TO DEFINE THE TERMS "DESTINATION MARKETING ORGANIZATIONS" AND "MARKETING ACTIVITIES" AND "TOURISM DEVELOPMENT ACTIVITIES" FOR THE PURPOSES OF THIS ACT; AND FOR RELATED PURPOSES.

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

SECTION 1. The following shall be codified as Section 57-123-4, Mississippi Code of 1972:

57-123-4. (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.

(2) 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 funding under the Tourism Recovery Fund – Round 2.

(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 COVID-19 as expressed in subsection (1) of this section.

(c) "Tourism development activities" means planning for and investments into improvements at cultural, recreational, and sporting attractions, enhancing outdoor venues and parks that serve as tourism attractions, or new or enhanced quality of place experiences insofar as the purpose of those activities is to result in new and repeat tourism visitation.

(3) (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 and tourism development activities 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. The Department of Finance and Administration shall determine, in conjunction with the destination marketing organizations, the allocation of funds under this section and shall disburse funds as follows:

(i) 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

(ii) Not more than Twenty Million Five Hundred Seventy-two Thousand Four Hundred Forty-three Dollars ($20,572,443.00) 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 Two Hundred Fifty Thousand Dollars ($250,000.00) under this subparagraph (ii).

(b) Destination marketing organizations receiving funds allocated under paragraph (a) of this subsection (3) shall provide details related to their planned expenditures to the Department prior to funds being disbursed. If the plans submitted by the destination marketing organizations include activities described in this act as eligible under this program, the Department shall approve the plan within thirty (30) days of receipt.

(c) Before receiving funds under this subsection (3), a destination marketing organization must certify to the Department of Finance and Administration that:

(i) The funds will only be used for marketing activities and/or tourism development activities, and

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

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

(c) Destination marketing organizations receiving funds under this subsection (3) shall keep and maintain records related to expenditures. Destination marketing organizations receiving funds under this subsection (3) 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.

(d) 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.

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

SECTION 2. This act shall take effect and be in force from and after July 1, 2023.