BILL ANALYSIS Ó
SB 1119
Page 1
SENATE THIRD READING
SB 1119 (Leno)
As Amended August 19, 2014
Majority vote
SENATE VOTE :36-0
ARTS, ENTERTAINMENT, SPORTS 7-0
APPROPRIATIONS 16-1
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|Ayes:|Ian Calderon, Waldron, |Ayes:|Gatto, Bigelow, |
| |Bloom, Brown, Gomez, | |Bocanegra, Bradford, Ian |
| |Levine, Wilk | |Calderon, Campos, Eggman, |
| | | |Gomez, Holden, Jones, |
| | | |Linder, Pan, Quirk, |
| | | |Ridley-Thomas, Wagner, |
| | | |Weber |
| | | | |
|-----+--------------------------+-----+--------------------------|
| | |Nays:|Donnelly |
| | | | |
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SUMMARY : Establishes a limit on the assessment of the passenger
car rental industry to fund the California Travel and Tourism
Commission (Commission) of 3.5%, up to a total of no more than
60% of the funding necessary to fund the Commission's approved
marketing plan and all administrative costs. Specifically, this
bill :
1)Provides that the proposed assessment for the passenger rental
car industry rate shall be set by the Commission, shall be no
more than 3.5%, and shall be set at a level that will generate
no more than 60% of the total funding that will be sufficient,
when aggregated together with other funding for the
Commission, to fund the approved marketing plan and all
administrative costs.
2)Restores the base budget amount for the Commission to no less
than $50 million per fiscal year.
3)Makes technical and clarifying changes.
FISCAL EFFECT : According to the Assembly Appropriations
Committee, no direct state fiscal impact. The tourism marketing
SB 1119
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program is off-budget and solely funded by self-imposed travel
industry assessments.
COMMENTS : According to the sponsors, "The California Tourism
Marketing Act (Government Code Sections 13995 et. seq.) has
successfully increased California's share of the travel and
tourism market. The legislation authorized the self-imposition
of an assessment by businesses that benefit from travel and
tourism. Over the last three years, California has moved from
28th to 2nd among state tourism marketing budgets. In recent
years, this program has raised $60 million annually, allowing
California to greatly expand its tourism marketing programs.
"Funding for the program is split across a variety of industry
segments (Accommodations, Restaurants and Retail, Attractions
and Recreation, Transportation and Travel Services, and
Passenger Car Rental), with funds raised from the passenger
rental car industry accounting for about 74% ($43 million) of
Visit California's annual budget.
The author states, this bill is "an effort to create measured
growth in the demonstrably successful Visit California program
in a manner that does not disproportionately place the burden on
the rental car industry." The author contends that under
current budgeting practice by the Visit California program, once
an annual budget amount is established, estimates are made as to
the amount anticipated to be collected from all industries
except for the rental car industry, claiming, "once that amount
is set, the assessment percentage on rental cars is set to then
fill the gap in the budget." The author notes that while the
current budgeting approach has been widely accepted by the
participants of this successful program, Visit California and
the Visit California Board are currently undertaking an effort
to increase the Visit California marketing budget on an ongoing
basis, including a proposal to increase the program to $105
million annually. Those discussions include Visit California,
the Governor's Office of Business and Economic Development and
representatives of the various industry segments that contribute
to the program's budget.
This bill is meant to facilitate opportunities for the tourism
industry to enhance its support of Visit California and ensure
that assessments are shared by all segments of the industry.
There is no opposition on file.
Please see the policy committee analysis for full discussion of
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this bill.
Analysis Prepared by : Dana Mitchell / A.,E.,S.,T. & I.M. /
(916) 319-3450
FN: 0004972