HB 1179 — Hotel Motel Taxes: Changing a DMO

House Bill 1179 changes the procedures for a local government to designate a destination marketing organization (DMO). The bill removes the $500,000 threshold required for a local government to reach an agreement with the DMO before changing the designated private sector nonprofit organization engaged to promote tourism, trade shows, and conventions for the local government. If an agreement cannot be reached, the bill requires the proposed change to be considered by the Hotel Motel Tax Performance Review Board. 

The bill requires the Hotel Motel Tax Performance Review Board to meet quarterly to consider cases of local governments changing the designated private sector nonprofit organization that promotes tourism without an agreement with the DMO. The bill requires the board to consider the following factors in the case: whether the current tourism promoting organization is meeting its goals, purpose of the current and proposed tourism promoting organizations as it relates to driving tourism, tenure of the current tourism promoting organization, community involvement of the current tourism promoting organization as it relates to driving tourism, investment made by the current tourism promoting organization to develop business relationships, and future risk of change to the tourism promoting organization. The bill also gives the Hotel Motel Tax Performance Review Board 90 days to hold a hearing for complaints received.