Brief⁽¹⁾

H.B. 2764, as amended, would fund the State Tourism Fund (STF), created last year. Currently, revenues in the State Gaming Revenues Fund in excess of $50 million are deposited in the State General Fund (SGF). The bill would credit 25 percent of the revenues in excess of $50 million to the STF, and 75 percent to the SGF.

The Council on Travel and Tourism would recommend expenditures from the STF with final approval by the Secretary of Commerce and Housing. No expenditures could be made from the STF without the Council's recommendation. If the Secretary vetoes a recommendation, the council could override the secretary's veto by a two-thirds vote. Under current law, such expenditures would go through the appropriations process.

The Secretary of Commerce and Housing would be required to submit as part of the annual report of the Department of Commerce and Housing detailed information on expenditures from the STF during the prior year.

Background

As introduced, H.B. 2764 would have credited the first $5 million of revenues in excess of $50 million from the State Gaming Revenues Fund to the STF. At its hearing, H.B. 2764 was supported by the Secretary of Commerce and Housing, a representative of the Travel Industry Association of Kansas, and local tourism organizations. The Secretary suggested removing expenditures from the appropriations process because of the long time lag entailed and crediting 25 percent of the revenues in excess of $50 million to the STF.

The Council on Travel and Tourism has 17 members. Appointments to the Council are controlled by K.S.A. 1997 Supp. 74-9001.

Shown below is the disposition of the State Gaming Revenues Fund for FY 1999 under current law, as taken from the Governor's Budget Report, Vol. 1, p. 38:

1. *Supplemental notes are prepared by the Legislative Research Department and do not express legislative intent. The supplemental note and fiscal note for this bill may be accessed on the Internet at http://www.ink.org/public/legislative/fulltext-bill.html.