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