BILL ANALYSIS                                                                                                                                                                                                    Ó



                                                                     AB 836


                                                                    Page  1





          Date of Hearing:  May 20, 2015


                        ASSEMBLY COMMITTEE ON APPROPRIATIONS


                                 Jimmy Gomez, Chair


          AB  
          836 (Rendon) - As Amended April 15, 2015


           ----------------------------------------------------------------- 
          |Policy       |Business and Professions       |Vote:|12 - 1       |
          |Committee:   |                               |     |             |
          |             |                               |     |             |
          |             |                               |     |             |
          |-------------+-------------------------------+-----+-------------|
          |             |Arts, Entertainment, Sports,   |     |5 - 2        |
          |             |Tourism, and Internet Media    |     |             |
          |             |                               |     |             |
          |             |                               |     |             |
          |-------------+-------------------------------+-----+-------------|
          |             |                               |     |             |
          |             |                               |     |             |
          |             |                               |     |             |
           ----------------------------------------------------------------- 


          Urgency:  No  State Mandated Local Program:  NoReimbursable:  No


          SUMMARY:


          This bill would establish the California Tour Guide Act and  
          provide for the certification and regulation of tour guides by  
          the California Travel and Tourism Commission (Commission).  








                                                                     AB 836


                                                                    Page  2





          Requires tour guides providing tours to multiple sites in  
          California to have adequate training and knowledge, and pass a  
          criminal background check. Requires the Commission to provide a  
          list of certified tour guides to individuals seeking to hire a  
          tour guide in California upon request. 


          FISCAL EFFECT:


          1)One-time cost of $250,000 (GF) for the Commission to establish  
            and implement a tour guide certification program. 


          2)On-going costs of $550,000 (GF), including six positions, to  
            run the program. This may be partially or fully offset in  
            future years by fees charged to cover the costs of the  
            program.


          3)Costs to the Department of Justice (DOJ) of up to $150,000  
            (Fingerprint Fees Account) to process the anticipated  
            fingerprint submissions for background checks. The Bureau of  
            Labor Statistics indicates there are 3,060 tour guides  
            employed in California.


          COMMENTS:


          1)Purpose. According to the author, "Every year, California  
            attracts millions of tourists from all around the world.  Many  
            come on or take organized tours with tour guides.  In order  
            for these tour passengers to get the most out of their visit  
            and return to the Golden State, it is necessary to ensure that  
            their tour guides have knowledge of California's history,  
            culture and sights, as well as knowledge of safe tour guiding  
            practices." 









                                                                     AB 836


                                                                    Page  3






          2)Background. According to the California Travel Association,  
            the travel industry generated $106.4 billion in revenue from  
            visitors and contributes to $6.6 billion in state and local  
            taxes in 2012.  The revenue stream is predicted to grow to  
            over $135.6 million by 2016.  In 2013, California hosted  
            nearly 16 million international visitors and it is forecasted  
            to grow at over 5% per year through 2016.  To support this  
            volume of visitors, the travel and tourism industry maintains  
            over 950,000 jobs.  


            The tour guide market is unregulated in California, and thus,  
            any individual, regardless of training or knowledge about  
            California's history, culture, and special interests, can be  
            hired as a tour guide. Tour guides can work independently or  
            with a tour guide company, and operate in various venues  
            throughout California including local attractions, historical  
            buildings, and museums.  


            The California Travel and Tourism Commission, known as Visit  
            California, is non-profit mutual benefit corporation formed in  
            1998 to market California as a desirable tourist destination.   
            Visit California works in close coordination with California's  
            Division of Tourism which oversees the assessment program that  
            helps to fund these initiatives. The budget for California's  
            tourism marketing is funded by investors in five industry  
            segments (Accommodations, Attractions, Passenger Car Rental,  
            Restaurants & Retail, and Travel Services). The primary  
            mission of the Commission is to promote travel to and within  
            California.  


            The Governor's Office of Business and Economic Development  
            (GO-Biz) Director serves as chairperson of the organization.  
            The 37-member Visit California Commission comprises  
            individuals from all 12 regions of California with  
            representation from all five industry segments. The Commission  








                                                                     AB 836


                                                                    Page  4





            meets three times a year and directs and approves the  
            marketing plan, expenditures and the overall strategic course  
            for California tourism.





          Analysis Prepared by:Jennifer Swenson / APPR. / (916)  
          319-2081