Session of 1998
                   
HOUSE BILL No. 2593
         
By Special Committee on Tourism
         
12-17
            9             AN ACT relating to travel and tourism; establishing the division of travel
10             and tourism development supplemental revenue fund, the transfer of
11             moneys to such fund and the use and making of expenditures from
12             such fund; and providing for the administration of the act.
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14       Be it enacted by the Legislature of the State of Kansas:
15           Section 1. (a) There is hereby created the division of travel and tour-
16       ism development supplemental revenue fund. All moneys credited to
17       such fund shall be expended or transferred only for the purposes and in
18       the manner provided by this act and all expenditures from such fund shall
19       be made in accordance with appropriation acts.
20           (b) On August 1, 1998, and on August 1, of each year thereafter, the
21       director of accounts and reports shall make transfers from the state gen-
22       eral fund to the division of travel and tourism development supplemental
23       revenue fund in an amount determined in the following manner. The
24       secretary of revenue shall compute the total retail sales taxes credited to
25       the state general fund pursuant to article 36 of chapter 79 of the Kansas
26       Statutes Annotated and amendments thereto, which were derived from
27       the retail sale of tourist-oriented goods and services, as defined by sub-
28       section (c), in the second and third fiscal years prior to the fiscal year in
29       which each transfer is made under this section and shall certify such
30       amounts to the director of accounts and reports. If the sales taxes derived
31       from the retail sale of tourist-oriented goods and services credited in the
32       fiscal year two years prior to the fiscal year in which the transfer is to be
33       made is more than 3% in excess of the sales taxes derived from the retail
34       sales of tourist-oriented goods and services credited in the fiscal year
35       three years prior to the fiscal year in which the transfer is to be made,
36       then the director of accounts and reports shall transfer an amount equal
37       to 1/2 of the sales tax revenues from the second fiscal year prior to such
38       transfer, which is more than 3% in excess of the sales tax revenues from
39       the third fiscal year prior to such transfer, to the division of travel and
40       tourism development supplemental revenue fund. Transfers shall not ex-
41       ceed $1,500,000 in any one fiscal year. All transfers made in accordance
42       with the provisions of this section shall be considered to be demand trans-
43       fers from the state general fund.

HB 2593

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  1           (c) As used in this act, ``sales of tourist-oriented goods and services''
  2       shall mean and include all sales by businesses identified under the fol-
  3       lowing standard industrial classification codes:
  4           (1) SIC code 5812;
  5           (2) SIC code 5813;
  6           (3) SIC code 7011;
  7           (4) SIC code 7021;
  8           (5) SIC code 7032;
  9           (6) SIC code 7033;
10           (7) SIC code 7041;
11           (8) SIC code 7922;
12           (9) SIC code 7929;
13           (10) SIC code 7933;
14           (11) SIC code 7941;
15           (12) SIC code 7948;
16           (13) SIC code 7991;
17           (14) SIC code 7992;
18           (15) SIC code 7996;
19           (16) SIC code 7999;
20           (17) SIC code 8412; and
21           (18) SIC code 8422.
22           Sec. 2. Moneys in the division of travel and tourism development
23       supplemental revenue fund shall be used by the division of travel and
24       tourism development only for the performance of powers and duties of
25       the division as prescribed by law and shall be in addition to the budget
26       base of such division in each fiscal year. The budget base of the division
27       for a fiscal year shall be the amount budgeted and appropriated for the
28       operation of the division from all other sources for the preceding fiscal
29       year plus an amount equal to 90% of any moneys transferred to the di-
30       vision of travel and tourism development supplemental revenue fund in
31       such preceding fiscal year.
32           Sec. 3. Prior to each appropriation from the division of travel and
33       tourism development supplemental revenue fund, the division of travel
34       and tourism development shall present to the committee on tourism of
35       the house of representatives and to the committee on transportation and
36       tourism of the senate, a targeted promotional marketing strategy within
37       the state's tourism marketing and business development program to be
38       financed from the fund including, but not limited to, targeted markets,
39       duration of market plans, ensuing market strategies, and the actual and
40       estimated investment return, if any, resulting therefrom.
41           Sec. 4. This act shall take effect and be in force from and after its
42       publication in the statute book.
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