BILL ANALYSIS                                                                                                                                                                                                    �



                                                                  SB 1119
                                                                  Page  1

          Date of Hearing:   August 13, 2014

                        ASSEMBLY COMMITTEE ON APPROPRIATIONS
                                  Mike Gatto, Chair

                     SB 1119 (Leno) - As Amended:  April 2, 2014 

          Policy Committee:                             Arts  Vote:7-0

          Urgency:     No                   State Mandated Local Program:  
          No     Reimbursable:               

           SUMMARY  

          This bill:

             1)   Changes the total expenditure parameter for the state's  
               tourism marketing program, the California Travel and  
               Tourism Commission, from at least $50 million per fiscal  
               year to no more than $70 million per year.

             2)   Limits the contribution of the rental car industry to no  
               more than 70% of the commission's annual expenditures-a  
               maximum of $49 million.

           FISCAL EFFECT  

          No direct state fiscal impact. The tourism marketing program is  
          off-budget and solely funded by self-imposed travel industry  
          assessments. 

           COMMENTS  

              1)   Background  . SB 256 (Johnson)/Statutes of 1995, the  
               California Tourism and Marketing Act, authorized the  
               establishment of a non-profit, public benefit corporation,  
               Visit California, to oversee promotion of the state as a  
               premier travel destination. This promotion is funded  
               through an assessment, as approved by the affected  
               industries, including accommodations, restaurants and  
               retail, attractions and recreation, transportation and  
               travel services, and the passenger car rental industry,  
               which furnishes the lion's share of funding-over $43  
               million (76%) of assessments to fund the $58 million  
               program in 2012-13.








                                                                  SB 1119
                                                                  Page  2


              2)   Purpose . According to the author, SB 1119 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 marketing budget $105 million annually.  The  
               author 
             3)   intends for this bill 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."
           Analysis Prepared by  :    Chuck Nicol / APPR. / (916) 319-2081