AB 714

This bill changes the definition, and membership of the governing body, of a

tourism entity under the room tax.

Under the bill, and subject to two exceptions, a tourism entity is defined as a

nonprofit organization that came into existence before January 1, 2015, spends at

least 51 percent of its revenues on tourism promotion and development, and provides

tourism staff and services in a municipality. If no such organization exists, the bill

authorizes a municipality to contract with a nonprofit entity that has either of the

following sets of attributes:

1. An organization that spends at least 51 percent of its revenues on tourism

promotion and development and provides tourism staff and services in a

municipality.

2. An organization that was incorporated before January 1, 2015, spends 100

percent of the room tax revenues it receives from a municipality on tourism

promotion and development, and provides tourism staff and services in a

municipality.

The bill also expands the allowable required membership of the governing body

of a tourism entity. Current law requires the membership to include at least one

owner or operator of a lodging facility that collects room tax and that is located in the

municipality for which the room tax is collected. Under the bill, a tourism entity's

membership must include either the current required membership or at least four

owners or operators of lodging facilities that are located in the tourism zone for which

the room tax is collected. Under current law, a tourism zone is an area made up of

two or more municipalities that, those municipalities agree, is a single destination

as perceived by the traveling public.