Get Full Government Meeting Transcripts, Videos, & Alerts Forever!
Get email alerts on the Economic Development topic
No spam. Unsubscribe anytime.
Senate backs tourism marketing fund with $10 million start and performance trigger
Summary
The Utah Senate advanced SB7 to create a Tourism Marketing Performance Fund seeded with a $10 million general‑fund appropriation that declines over 10 years; the fund pairs a baseline appropriation with a growth‑sharing mechanism triggered after 3% growth and includes a $3 million annual cap and a $750,000 sports allocation.
The Utah Senate on Jan. 19 advanced Senate Bill 7, a plan to create a Tourism Marketing Performance Fund intended to boost statewide branding and advertising. The bill received widespread floor support and was read for the third time by roll call (27–0).
Sponsor Senator Jenkins described the measure as creating a fund that begins with a $10 million general‑fund allocation in its first year and declines by $1 million each year for up to 10 years so the fund will become self-sustaining. The fund distributes money in three ways: (1) primary advertising and brand campaigns administered by the Board of Travel Development; (2) a co‑op program allowing local entities to brand with state campaigns; and (3) an allocation for sports promotion, capped at $750,000 annually.
Under the bill, the state Tax Commission would monitor a defined set of nexus codes; once growth for that basket exceeds a 3% baseline (averaged over three years), the incremental growth is split 50/50 between the state general fund and the tourism fund, subject to a $3 million annual cap on the fund's share.
Lawmakers asked for clearer baseline and dollar‑amount examples. Senator Hilliard and others noted the bill borrows from a Missouri model; Senator Walker said prior advertising yielded strong returns and characterized the program as an investment. "We were able to track the return on that investment, and it was dramatic, with very an 8 to 1 return on investment of these dollars," Walker said, arguing the fund is intended to generate economic benefit if the state's advertising is effective.
Opponents raised concerns about duplication of existing industry promotion. Senator Maine asked whether the measure would duplicate earlier programs that supported ski‑industry promotion; the sponsor and other supporters said the ski industry remains a private investor in promotion and would be eligible to apply for co‑op funds but the bill is intended to brand the entire state, not a single industry.
The Senate completed floor debate and placed SB7 to be read for the third time. The floor debate on Jan. 19 did not include final fiscal details beyond the appropriation and the cap; appropriation timing and House consideration remain the next steps.
