HB 2325: Establishing a tourism self-supported assessment program to fund statewide tourism promotion. - Washington

Engrossed Second Substitute Bill → Second Substitute Passed Legislature · 9 edits

MAJOR

This bill establishes a new tourism assessment program funded by a fee on large tourism businesses, replacing the previous model where the industry funded its own review board. Key changes include shifting the power to appoint the oversight board from the industry to the state authority, adding state oversight of the board's budget, and creating a new reimbursement account to fund state administrative costs. The bill also expands the definition of 'tourism promotion' to include a broader range of marketing activities and adjusts the expiration date of the interim advisory group.

Scope change

The bill's scope expanded from a purely industry-funded and managed program to a hybrid model where the state Department of Commerce and its authority have significant oversight, including the power to appoint board members and approve budgets, while the industry retains a seat at the table through the oversight board.

DEFINITION

Added definitions for 'Department' and 'Director' to clarify the role of the state Department of Commerce in the new program.

REQUIREMENT

Changed the Ratepayer Oversight Board appointment process so the state authority appoints members from an industry-nominated list, rather than the industry appointing itself.

Required the Ratepayer Oversight Board to develop its budget, which must then be approved by the state authority, limiting the board's ability to independently set spending policies.

Added a requirement that the state authority conduct the ratification referendum instead of the oversight board.

Updated the composition of the Tourism Marketing Authority board to include additional representatives for trade associations and tourism businesses subject to assessments.

FISCAL

Created a new 'tourism assessment program reimbursement account' to reimburse the state for administrative costs, funded by a portion of the collected assessments.

ENFORCEMENT

Clarified that the authority, with director review, can remove board members for cause, adding a layer of state accountability.

TIMELINE

Extended the expiration date of the interim tourism self-supported assessment advisory group from June 1, 2026, to June 1, 2027.

SCOPE

Expanded the definition of 'tourism promotion' to explicitly include hosting travel trade events, organizing conferences, and deploying digital marketing content.

Second Substitute Bill → Engrossed Second Substitute Bill · 5 edits · Mar 11, 2026

MODERATE

The bill was formally adopted as the 'Engrossed' version, adding a new section to the official title. The primary substantive change is the addition of RCW 43.384.050, which authorizes the tourism authority to spend funds on a multi-year marketing plan that must specifically include diverse communities, rural areas, and sustainable whale watching. The bill also updates the chapter reference from Section 15 to Section 16 and expands the list of amended statutes.

Scope change

The bill's scope was expanded to explicitly include 'sustainable whale watching' and 'micro-communities' as required elements of the statewide tourism marketing plan, ensuring these areas receive specific attention in state promotion efforts.

REQUIREMENT

Added a new statute (RCW 43.384.050) authorizing expenditures for a statewide tourism marketing plan that must equitably include diverse communities, rural areas, and sustainable whale watching.

Modified the legislative intent to require tourism development that 'enhances and does not detract from the unique character of communities, including micro-communities'.

DEFINITION

Added a specific definition for 'sustainable whale watching' requiring experiences that reduce impact on whales and promote marine conservation.

TECHNICAL

Updated the bill title to 'Engrossed Second Substitute House Bill' and changed the new chapter reference from Section 15 to Section 16.

SCOPE

Added RCW 43.384.050 to the list of statutes amended in the act title.

Substitute Bill → Second Substitute Bill · 3 edits

MINOR

The bill was renumbered and its committee assignment changed from Technology to Finance. The most significant policy change is the addition of a specific exemption for federally recognized Indian tribes and tribal businesses, ensuring they are not subject to the new tourism assessment unless they voluntarily opt in.

Scope change

The bill's scope was expanded to explicitly exclude federally recognized Indian tribes and tribal enterprises from the assessment program, unless those entities choose to participate.

TECHNICAL

The bill number changed from H-3247.1 to H-3512.1, and the committee assignment shifted from House Technology to House Finance, while the reading date was updated.

ELIGIBILITY

A new provision was added to Section 3 to exempt federally recognized Indian tribes, tribal-owned enterprises, and businesses operating on tribal land from the assessment, unless they officially opt to participate.

A new provision was added to Section 5 to reinforce the exemption for Indian tribes and tribal businesses from the annual assessment levy.

Bill → Substitute Bill · 6 edits

MODERATE

This bill was amended to expand the definition of 'tourism business' to include large full-service restaurants and retailers, requiring them to pay the tourism assessment fee. The changes also clarify how the assessment program is administered and enforced, while adjusting the composition of the governing board to reflect the new business categories.

Scope change

The bill now applies to full-service restaurant locations and retailer locations with annual revenues exceeding $5,000,000, in addition to the previously listed sectors.

ELIGIBILITY

Added full-service restaurant locations and retailer locations with revenues over $5,000,000 per year to the list of businesses subject to the tourism assessment.

REQUIREMENT

Updated the authority's rule-making process to consider the design developed under the new section of this act, in addition to previous recommendations.

Removed the requirement for the authority to give substantial weight to the 2025 advisory report, replacing it with a requirement to consider the new design developed under this act.

Changed the board governance rules to state that the authority's primary activities are governed by the authority itself, rather than a separate board.

Increased the maximum number of tourism business appointments allowed per county from two to four to accommodate the expanded business categories.

ENFORCEMENT

Clarified that unpaid assessments constitute a personal debt and specified that penalties are limited to costs for enforcement rather than a flat percentage.

Establishing a tourism self-supported assessment program to fund statewide tourism promotion.

What changed between versions

How they voted

Actions timeline

Sponsors