Senate BillNo. 1119


Introduced by Senator Leno

February 19, 2014


An act to amend Section 13995.1 of the Government Code, relating to tourism.

LEGISLATIVE COUNSEL’S DIGEST

SB 1119, as introduced, Leno. California Travel and Tourism Commission.

The California Tourism Marketing Act sets forth the findings and declarations of the Legislature with regard to travel and tourism in the state generally, including findings regarding state funding of marketing.

This bill would make technical, nonsubstantive changes to these provisions.

Vote: majority. Appropriation: no. Fiscal committee: no. State-mandated local program: no.

The people of the State of California do enact as follows:

P1    1

SECTION 1.  

Section 13995.1 of the Government Code is
2amended to read:

3

13995.1.  

The Legislature hereby finds and declares all of the
4following:

5(a) Tourism is among California’s biggest industries,
6contributing over fifty-two billion dollars ($52,000,000,000) to
7the state economy and employing nearly 700,000 Californians in
81995.

9(b) In order to retain and expand the tourism industry in
10California, it is necessary to market travel to and within California.

P2    1(c) State funding, while an important component of marketing,
2has been unable to generate sufficientbegin delete fundsend deletebegin insert fundingend insert to meet the
3threshold levelsbegin delete of fundingend delete necessary to reverse recent losses of
4California’s tourism market share.

5(d) In regard to the need for a cooperative partnership between
6business and industry:

7(1) It is in the state’s public interest and vital to the welfare of
8the state’s economy to expand the market for, and develop,
9California tourism through a cooperative partnership funded in
10part by the state that will allow generic promotion and
11communication programs.

12(2) The mechanism established by this chapter is intended to
13play a unique role in advancing the opportunity to expand tourism
14in California, and it is intended to increase the opportunity for
15tourism to the benefit of the tourism industry and the consumers
16of the State of California.

17(3) Programs implemented pursuant to this chapter are intended
18to complement the marketing activities of individual competitors
19within the tourism industry.

20(4) While it is recognized that smaller businesses participating
21in the tourism market often lack the resources or market power to
22conduct these activities on their own, the programs are intended
23to be of benefit to businesses of all sizes.

24(5) These programs are not intended to, and they do not, impede
25the right or ability of individual businesses to conduct activities
26designed to increase the tourism market generally or their own
27respective shares of the California tourism market, and nothing in
28the mechanism established by this chapter shall prevent an
29individual business or participant in the industry from seeking to
30expand its market through alternative or complementary means,
31or both.

32(6) (A) An individual business’s own advertising initiatives are
33typically designed to increase its share of the California tourism
34market rather than to increase or expand the overall size of that
35market.

36(B) In contrast, generic promotion of California as a tourism
37destination is intended and designed to maintain or increase the
38overall demand for California tourism and to maintain or increase
39the size of that market, often by utilizing promotional methods
P3    1and techniques that individual businesses typically are unable, or
2have no incentive, to employ.

3(7) This chapter creates a mechanism to fund generic promotions
4that, pursuant to the required supervision and oversight of the
5secretary as specified in this chapter, further specific state
6governmental goals, as established by the Legislature, and result
7in a promotion program that produces nonideological and
8commercial communication that bears the characteristics of, and
9is entitled to all the privileges and protections of, government
10speech.

11(8) The programs implemented pursuant to this chapter shall
12be carried out in an effective and coordinated manner that is
13designed to strengthen the tourism industry and the state’s economy
14as a whole.

15(9) Independent evaluation of the effectiveness of the programs
16will assist the Legislature in ensuring that the objectives of the
17programs as set out in this section are met.

18(e) An industry-approved assessment provides a private-sector
19financing mechanism that, in partnership with state funding, will
20provide the amount of marketing necessary to increase tourism
21marketing expenditures by California.

22(f) The goal of the assessments is to assess the least amount per
23business, in the least intrusive manner, spread across the greatest
24practical number of tourism industry segments.

25(g) The California Travel and Tourism Commission shall target
26an amount determined to be sufficient to market effectively travel
27and tourism to and within the state.

28(h) In the course of developing its written marketing plan
29pursuant to Section 13995.45, the California Travel and Tourism
30Commission shall, to the maximum extent feasible, do both of the
31following:

32(1) Seek advice and recommendations from all segments of
33California’s travel and tourism industry and from all geographic
34regions of the state.

35(2) Harmonize, as appropriate, its marketing plan with the travel
36and tourism marketing activities and objectives of the various
37industry segments and geographic regions.

38(i) The California Travel and Tourism Commission’s marketing
39budget shall be spent principally to bring travelers and tourists into
40the state. No more than 15 percent of the commission’s assessed
P4    1funds in any year shall be spent to promote travel within California,
2unless approved by at least two-thirds of the commissioners.



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