HB 419 — Tourism; provide assistance to destination marketing organizations and other entities.

419 (As PassedSent theto House)Governor) AN ACT TO REQUIRE THE DEPARTMENT OF FINANCE AND ADMINISTRATION TO ESTABLISH A PROGRAM FOR THE PURPOSE OF PROVIDING FUNDS TO ASSIST CERTAIN MUSEUMS IN PAYING CERTAIN COSTS AND PROVIDING FUNDS TO DESTINATION MARKETING ORGANIZATIONS TO ASSIST IN PAYING COSTS OF CERTAIN MARKETING ACTIVITIES AND TOURISM DEVELOPMENT ACTIVITIES;

TO DEFINE THE TERMS "DESTINATION MARKETING ORGANIZATIONS",ORGANIZATION" "MARKETING ACTIVITIES" AND "TOURISM"MARKETING DEVELOPMENT ACTIVITIES" FOR THE PURPOSES OF THIS ACT;

TO REQUIRE THE DEPARTMENT OF FINANCE AND ADMINISTRATION TO ESTABLISH A PROGRAM FOR THE PURPOSE OF PROVIDING FUNDS TO NARRATRIP LLC, TO USE TO ASSIST MUNICIPALITIES IN THE STATE IN PAYING COSTS TO PARTICIPATE IN AND BE PROMOTED AS PART OF THE BUSINESS'S MOBILE APPS GEARED TOWARD PROMOTING TOURISM IN THE STATE;

It is the intention of the Legislature that the activities defined in this act will address the negative economic impacts of COVID-19 on the tourism, travel, and hospitality industries as allowed by the American Rescue Plan Act of 2021 and H.

419 *HR26/R1481PH**HR26/R1481SG* ~ OFFICIAL ~ G1/2 23/HR26/R1481PH23/HR26/R1481SG PAGE 1 (BS\KW) impacts of COVID-19 on the tourism, travel, and hospitality industries as allowed by the American Rescue Plan Act of 2021 and subsequent guidance issued by the United States Department of Treasury.

(a) "Destination marketing organization" means an organization that received funds under Section 257-123-7, ofMississippi ChapterCode 399, Laws of 2022.1972.

(c)(2) "Tourism(a) developmentThe activities"Department meansof planningFinance for and investmentsAdministration intoshall improvementsestablish ata cultural,program recreationalfor andthe sportingpurpose attractions,of enhancingproviding outdoorfunds venuesto andassist parksdestination thatmarketing serveorganizations asin tourismpaying attractions,costs orfor newmarketing oractivities enhanced quality of place experiences insofar as theprovided purposein ofthis thesesection activitiesand is to resultassist incertain newmuseums andas repeatprovided tourismin visitation.this section.

(2)Monies (a)disbursed Theby the Department of Finance and Administration shallunder establishthis asection programshall for the purpose of providing funds to assist H.

419 *HR26/R1481PH**HR26/R1481SG* ~ OFFICIAL ~ 23/HR26/R1481PH23/HR26/R1481SG PAGE 2(BS\KW) destinationbe marketingdisbursed organizations in payingcompliance costswith forall marketingrequirements activitiesand/or asconditions providedon infunds appropriated from the Coronavirus State Fiscal Recovery Fund for the program established under this section.

Monies disbursedin by the Departmentfund of Finance and Administration under this section shall be disbursed inby compliance with all requirements and/or conditions on funds appropriated from the CoronavirusDepartment Stateof FiscalFinance Recoveryand FundAdministration foras thefollows: program established under this section.

The(i) DepartmentTwenty-one ofMillion FinanceDollars and($21,000,000.00) Administration shall determine,be indisbursed conjunctionas withprovided thein destinationparagraph marketing(b) organizations,of thethis allocationsubsection of(2) fundsto underassist thisdestination sectionmarketing andorganizations shallin disbursepaying fundscosts asfor follows:marketing activities;

(i)and Not(ii) moreOne than Nine Million Four Hundred Twenty-seven Thousand Five Hundred Fifty-seven Dollars ($9,427,557.00)($1,000,000.00) of such monies shall be allocateddisbursed to destinationthe marketingGRAMMY® organizationsMuseum Mississippi, in aCleveland, mannerMississippi, that will provide monies to aassist destination marketing organization in anpaying amountcosts equalassociated towith seventy-fiveadvertising percentand (75%)other forms of thepromoting destination marketing organization's marketing and advertisingpublicizing expenditures during the 2019museum fiscal year, and (ii)museum Notrelated moreactivities, thanand Twentyrepairs Millionand Fiverenovations Hundred Seventy-two Thousand Four Hundred Forty-three Dollars ($20,572,443.00) of suchand moniesupgrades shalland beimprovements allocated to destination marketing organizations based on the proportionmuseum thatfor ahealth destinationand marketingsafety organization'spurposes contributionrelated toward total tourism visitors in the state according to the 2019Coronavirus FiscalDisease Year19. Visit Mississippi Visitors Profile Report bears to all destination H.

(b) (i) The Department of Finance and Administration shall determine, in conjunction with the destination marketing organizations, the allocation of funds under paragraph (a)(i) of this subsection (2) and shall disburse funds as follows:

1.

Not more than Nine Million Four Hundred Twenty-seven Thousand Five Hundred Fifty-seven Dollars ($9,427,557.00) of such monies shall be allocated to destination marketing organizations in a manner that will provide monies to a destination marketing organization in an amount equal to H.

419 *HR26/R1481PH**HR26/R1481SG* ~ OFFICIAL ~ 23/HR26/R1481PH23/HR26/R1481SG PAGE 3(BS\KW) marketingseventy-five organizations'percent contributions(75%) towardof totalthe tourismdestination visitorsmarketing inorganization's themarketing stateand accordingadvertising toexpenditures during the 2019 Fiscalfiscal Yearyear, Visitand Mississippi2. Visitors Profile Report.

However,Not more than Eleven Million Five Hundred Seventy-two Thousand Four Hundred Forty-three Dollars ($11,572,443.00) of such monies shall be allocated to destination marketing organizations based on the proportion that a destination marketing organizationorganization's shallcontribution nottoward receivetotal antourism amountvisitors lessin thanthe Twostate Hundredaccording Fiftyto Thousandthe Dollars2019 ($250,000.00)Fiscal underYear thisVisit subparagraphMississippi (ii).Visitors Profile Report bears to all destination marketing organizations' contributions toward total tourism visitors in the state according to the 2019 Fiscal Year Visit Mississippi Visitors Profile Report.

(b)However, Destinationa destination marketing organizationsorganization receiving funds under this subsection (2) shall providenot detailsreceive relatedan toamount theirless plannedthan expendituresOne toHundred theTwenty-five DepartmentThousand ofDollars Finance($125,000.00) andunder Administrationthis prioritem to2. funds being disbursed.

If(ii) theDestination plans submitted by the destination marketing organizations includereceiving activitiesfunds describedunder in this actparagraph as(b) eligibleshall underprovide thisdetails program,related theto departmenttheir shallplanned approveexpenditures to the planDepartment withinof thirtyFinance (30)and daysAdministration ofprior receiptto offunds thebeing plans.disbursed.

(c)If Beforethe receivingplans fundssubmitted underby the destination marketing organizations include activities described in this subsectionsection (2),as aeligible destinationunder marketingthis organizationprogram, mustthe certifydepartment toshall approve the Departmentplan within thirty (30) days of Financereceipt andof Administrationthe that:plans.

(i) The funds will only be used for marketing activities and/or tourism development activities, and (ii) The destination marketing organization will comply with applicable federal and state regulations and requirements related to American Rescue Plan Act funds, and (iii) The destination marketing organization will obligate all funds by December 31, 2024, and fully expend all funds by December 31, 2026.

419 *HR26/R1481PH**HR26/R1481SG* ~ OFFICIAL ~ 23/HR26/R1481PH23/HR26/R1481SG PAGE 4(BS\KW) (d)(iii) DestinationBefore marketing organizations receiving funds under this subsectionparagraph (2)(b), shalla keepdestination andmarketing maintainorganization recordsmust relatedcertify to expenditures.the Department of Finance and Administration that:

Destination1. marketing organizations receiving funds under this subsection (2) shall also track impacts of their marketing activities through special levy tax receipts, hotel occupancy indicators, other tourism industry metrics, and analytics from marketing campaigns, as appropriate.

The funds will only be used for marketing activities, and 2.

The destination marketing organization will comply with applicable federal and state regulations and requirements related to American Rescue Plan Act funds, and 3.

The destination marketing organization will obligate all funds by December 31, 2024, and fully expend all funds by December 31, 2026.

(iv) Destination marketing organizations receiving funds under this paragraph (b) shall keep and maintain records related to expenditures.

Destination marketing organizations receiving funds under this paragraph (b) shall also track impacts of their marketing activities through special levy tax receipts, hotel occupancy indicators, other tourism industry metrics, and analytics from marketing campaigns, as appropriate.

(e)(v) Subject to applicable purchasing laws, destination marketing organizations will give preference, when availableH. and practical, to Mississippi-based companies for any new contracts entered into for marketing activities.

B.

No.

419 *HR26/R1481SG* ~ OFFICIAL ~ 23/HR26/R1481SG PAGE 5(BS\KW) available and practical, to Mississippi-based companies for any new contracts entered into for marketing activities.

This(1) actThe shallDepartment takeof effectFinance and beAdministration inshall forceestablish froma andprogram afterfor Julythe 1,purpose 2023,of andproviding shallfunds standto repealedcertain onentities Juneas 30,provided 2023.in this section.

The Department of Finance and Administration shall disburse One Million Dollars ($1,000,000.00) under this section to NarraTrip LLC, to use to assist municipalities in the state in paying costs to participate in and be promoted as part of the business's mobile apps geared toward promoting tourism in the state, including, but not limited to, providing information regarding historic sites, roadside markers and dining, music and art experiences.

(2) The Department of Finance and Administration shall have all powers necessary for the implementation of this section.

SECTION 4.

This act shall take effect and be in force from and after July 1, 2023.

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provide assistance to destination PAGE 5(BS\KW)6(BS\KW) marketing organization.organizations and other entities.