TOURISM PROMOTION H.B. 6606: FLOOR ANALYSIS
House Bill 6606 (as reported without amendment)
Sponsor: Representative Dave Hildenbrand
House Committee: Commerce
Senate Committee: Commerce and Labor
CONTENT
The bill would enact the "Convention and Tourism Promotion Act" to permit a bureau (a nonprofit membership organization) to create a marketing program to promote convention business and tourism, and collect an assessment of up to 2% of the revenue generated from transient facilities in an assessment district for the expenses of the program. "Assessment district" would mean a county having a population of more than 570,000 and less than 775,000 (Kent County). "Transient facility" would mean a building with 35 or more rooms used to provide dwelling, lodging, or sleeping to transient guests.
The bureau could file with the Michigan Economic Development Corporation (MEDC) a notice of its intent to create a marketing program and collect an assessment, and would have to mail a copy of the notice to each owner of a transient facility in the district. The assessment would take effect on the first day of the month following the expiration of 40 days after notice was mailed, unless the MEDC received written requests for a referendum by at least 40% of the total number of owners, or those owners representing at least 40% of the total number of rooms in all of the transient facilities. In that case, the MEDC director would have to conduct a referendum among all owners of transient facilities in the district. Each owner would have one vote for each sleeping room in its facilities within the district.
If a majority approved of the assessment, it would take effect for all owners of transient facilities in the assessment district on the first day of the month following the expiration of 30 days after the director certified the referendum results. If the assessment were defeated, the bureau could file a new notice after at least 60 days had passed from the date the results of the earlier referendum had been certified.
Legislative Analyst: Patrick Affholter
FISCAL IMPACT
The bill could increase the administrative costs of the Michigan Economic Development Corporation (an independent agency within the Michigan Department of Treasury-Michigan Strategic Fund) by a minimal amount due to the requirement for the MEDC to determine if the application to levy an assessment met the criteria that would be established by the bill. The MEDC also could incur expenses if sufficient transient facility operators petitioned for the conduct of a referendum on the question of imposition of an assessment.
Other expenses due to administering the assessment would be borne by the bureau levying the assessment, which would retain all assessment revenue.
Date Completed: 12-7-06 Fiscal Analyst: Elizabeth Pratt
Maria Tyszkiewicz
Analysis was prepared by nonpartisan Senate staff for use by the Senate in its deliberations and does not constitute an official statement of legislative intent. hb6606/0506