MISSISSIPPI LEGISLATURE

2023 Regular Session

To: Appropriations

By: Senator(s) Chassaniol, Williams, DeLano, Carter, Butler (36th), Horhn

Senate Bill 2511

(As Passed the Senate)

AN ACT TO BRING FORWARD SECTION 57-123-7, MISSISSIPPI CODE OF 1972, WHICH IS THE PROVISION OF LAW THAT REQUIRES THE DEPARTMENT OF FINANCE AND ADMINISTRATION TO ESTABLISH A PROGRAM FOR THE PURPOSE OF PROVIDING FUNDS TO ASSIST DESTINATION MARKETING ORGANIZATIONS, FOR POSSIBLE AMENDMENT; AND FOR RELATED PURPOSES.

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

     SECTION 1.  Section 57-123-7, Mississippi Code of 1972, is brought forward as follows:

     57-123-7.  (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:

               (i)  Special local governmental units created by local and private laws of the State of Mississippi for the purpose of tourism promotion, funded by special local tax levies, and staffed with professionals engaged in out-of-state tourism marketing and tourism product development for municipalities, counties and/or regions; or

               (ii)  Publicly-funded local organizations that engage in out-of-state tourism marketing and tourism development for municipalities, counties and/or regions.

          (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 Chapter 399, Laws of 2022.

     (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.  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)  Within fifteen (15) days after July 1, 2022, the Department of Finance and Administration shall distribute the funds allocated under paragraph (a) of this subsection (2) to eligible destination marketing organizations.  Before receiving funds under this subsection (2), 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

               (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 (2) shall keep and maintain records related to expenditures.  Destination marketing organizations receiving funds under this subsection (2) 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.

     (3)  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.