AN ACT relating to tourism and declaring an emergency.

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AN ACT relating to tourism and declaring an emergency. 1
Be it enacted by the General Assembly of the Commonwealth of Kentucky: 2
Section 1. KRS 142.406 is amended to read as follows: 3
(1) The Tourism, Arts and Heritage Cabinet shall promulgate administrative 4
regulations in accordance with KRS Chapter 13A to establish the criteria to 5
administer a regional ma rketing and matching funds program. The program 6
shall provide financial and marketing assistance for projects that directly support 7
the promotion and marketing efforts of a tourism attraction, event, or geographic 8
area. 9
(2) Tourism regions are established in the Commonwealth as follows: 10
(a) Tourism Region 1, the Western Lakes and Rivers Region, consisting of 11
Ballard, Caldwell, Calloway, Carlisle, Christian, Crittenden, Fulton, 12
Graves, Hickman, Livingston, Lyon, Marshall, McCracken, Todd, and 13
Trigg Counties; 14
(b) Tourism Region 2, the Green River Region, consisting of Daviess, Hancock, 15
Henderson, Hopkins, McLean, Muhlenberg, Ohio, Union, and Webster 16
Counties; 17
(c) Tourism Region 3, the Cave Region, consisting of Allen, Barren, Butler, 18
Edmonson, Hart, Logan, Metcalfe, Monroe , Simpson, and Warren 19
Counties; 20
(d) Tourism Region 4, the Louisville -Lincoln Region, consisting of 21
Breckinridge, Bullitt, Grayson, Hardin, Henry, Jefferson, Larue, Marion, 22
Meade, Nelson, Oldham, Shelby, Spencer, Trimble, and Washington 23
Counties; 24
(e) Tourism Region 5, the Southern Kentucky Lakes and Rivers Region, 25
consisting of Adair, Casey, Clinton, Cumberland, Green, McCreary, 26
Pulaski, Russell, Taylor, and Wayne Counties; 27
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(f) Tourism Region 6, the Northern Kentucky Region, consisting of Boone, 1
Bracken, Cam pbell, Carroll, Fleming, Gallatin, Grant, Kenton, Lewis, 2
Mason, Owen, Pendleton, and Robertson Counties; 3
(g) Tourism Region 7, the Bluegrass Region, consisting of Anderson, Bourbon, 4
Boyle, Clark, Fayette, Franklin, Garrard, Harrison, Jessamine, Lincoln, 5
Madison, Mercer, Nicholas, Scott, and Woodford Counties; 6
(h) Tourism Region 8, the Eastern Highlands -North Region, consisting of 7
Bath, Boyd, Carter, Elliott, Floyd, Greenup, Johnson, Lawrence, Magoffin, 8
Martin, Menifee, Montgomery, Morgan, Pike, and Rowan Counties; and 9
(i) Tourism Region 9, the Eastern Highlands -South Region, consisting of Bell, 10
Breathitt, Clay, Estill, Harlan, Jackson, Knott, Knox, Laurel, Lee, Leslie, 11
Letcher, Owsley, Perry, Powell, Rockcastle, Whitley, and Wolfe Counties. 12
(3) (a) To qualify for regional marketing and matching funds, a tourism regional 13
committee shall be established for each tourism region. 14
(b) Each tourist and convention commission established under KRS 91A.350 15
within each tourism region shall appoint a person to serve on t he tourism 16
regional committee. 17
(c) If a tourist and convention commission has not been established by the local 18
governing bodies of a county, or cities within a county, the county 19
judge/executive of each county shall appoint a person to serve on the 20
tourism regional committee. 21
(d) Counties with multiple tourist and convention commissions may have a 22
representative from each tourist and convention commission on the tourism 23
region committee. 24
(e) The Tourism, Arts and Heritage Cabinet shall promulgate of admini strative 25
regulations in accordance with KRS Chapter 13A to establish the terms and 26
operating policies of the tourism region committees. 27
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(4) (a) There is hereby created and established in the State Treasury a trust and 1
agency account to be known as the tour ism, meeting, and convention 2
marketing fund. 3
(b) The fund shall be administered by the Tourism, Arts and Heritage Cabinet, 4
with the approval of the Governor's Office for Policy and Management. 5
(c)[(2)] All tax receipts from the tax imposed under KRS 142.4 00 shall be 6
deposited into the [tourism, meeting, and convention marketing ] fund[,] and 7
used[shall be appropriated] for the purposes set forth in this subsection[ (3) of 8
this section] . The fund shall also contain any other money contributed, 9
allocated, or appropriated to it from any other source. 10
(d) Moneys[Money] in the fund shall be invested by the Finance and 11
Administration Cabinet in instruments authorized under KRS 42.500. 12
Investment proceeds shall be deposited to the credit of the fund. [ Money in 13
the fund shall not lapse but shall be carried forward to the next fiscal year or 14
biennium.] 15
(e)[(3)] The tourism, meeting, and convention marketing fund shall be used for 16
the sole purpose of marketing and promoting tourism in the Commonwealth , 17
including expend itures to market and promote events and venues related to 18
meetings, conventions, trade shows, cultural activities, historical sites, 19
recreation, entertainment, natural phenomena, areas of scenic beauty, craft 20
marketing, and any other economic activity that brings tourists and visitors to 21
the Commonwealth. Marketing and promoting tourism shall not include 22
expenditures on capital construction projects. 23
(f) Notwithstanding KRS 45.229, any fund balance at the close of the fiscal 24
year shall not lapse but shall be carried forward to the next fiscal year. 25
(g) 1. At least twenty-five percent (25%) of the moneys available in the fund 26
shall be equally divided among the nine (9) tourism regions for 27
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payment of the following eligible expenses related to marketing and 1
promoting tourism within the tourism regions: 2
a. Tourism publications, digital content, and videos; 3
b. Media advertisements and press kits; 4
c. Billboards and signage; 5
d. Brochure distribution services; 6
e. Postage and freight expenses; 7
f. Meeting and convention advertising expenses; 8
g. Group tour marketplace, meeting and convention, and consumer 9
travel show expenses; 10
h. Sponsorship or a bid fee of tourism trade shows, conventions, 11
sporting events, and other events; 12
i. Website design; and 13
j. Research studies and analysis. 14
2. Administrative expenses shall not be included in the payment of 15
eligible expenses. 16
3. The Tourism, Arts and Heritage Cabinet shall work in partnership 17
with the tourism regional committees to determine the best use of the 18
money provided to the tourism regions. 19
(h) At least ten percent (10%) of the moneys available in the fund shall be 20
dedicated to the re gional marketing and matching funds program 21
established under subsection (1) of this section for use by a convention and 22
visitors' bureau, a tourism commission, or designated marketing 23
organization. 24
(i)[(4)] By September 1 of each year, the secretary of th e Tourism, Arts and 25
Heritage Cabinet shall report to the Governor and the Legislative Research 26
Commission concerning the receipts, expenditures, and carryforwards of the 27
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fund for the preceding fiscal year. 1
(5) By September 1, 2026, the Tourism, Arts and He ritage Cabinet shall implement 2
initial strategic plans for marketing and promoting tourism in each tourism 3
region. The cabinet's strategic plan may include a request for proposal process 4
for selecting vendors to administer spending, create a strategic plan , or manage 5
day-to-day operations. 6
(6) By September 1 of each year, the secretary of the Tourism, Arts and Heritage 7
Cabinet shall submit a report to the Legislative Research Commission for referral 8
to the Interim Joint Committee on Tourism, Small Business, and Information 9
Technology on the regional tourism strategies and regional strategic plans. 10
SECTION 2. A NEW SECTION OF KRS CHAPTER 148 IS CREATED TO 11
READ AS FOLLOWS: 12
Beginning on September 1, 2026, and every September 1 thereafter, the Commissioner 13
shall submit a report to the Legislative Research Commission for referral to the 14
Interim Joint Committee on Tourism, Small Business, and Information Technology on 15
the occupancy rate for each state park with lodging or a campg round from the 16
previous fiscal year. 17
Section 3. Whereas tourism is an important aspect of Kentucky's economy, an 18
emergency is declared to exist, and this Act takes effect upon its passage and approval by 19
the Governor or upon its otherwise becoming a law. 20