California tourism: assessments: restaurants and retail industry.
The passage of AB 1664 is expected to impact California laws concerning tourism-related assessments. By exempting many small businesses from these assessments, the bill aims to support local economies which may be struggling due to high operating costs related to travel and tourism. This regulatory change underscores an acknowledgement of the diverse revenue models that small restaurants and retail establishments operate under, particularly those with minimal engagement in the tourism sector. Furthermore, the bill brings about refinements to existing laws regarding consumer loans to enhance transparency and protect consumers from predatory lending practices.
Assembly Bill 1664, introduced by Assembly Member Chiu, seeks to amend specific provisions related to consumer loans and assessments in the California tourism sector. The bill is primarily focused on exempting certain businesses in the restaurant and retail industries from tourism assessments if they derive less than 20% of their gross revenue from travel and tourism activities within the state. Such businesses will have the option to participate in these assessments voluntarily unless they opt-out, beginning January 1, 2020. This amendment intends to provide a financial relief mechanism for smaller businesses in response to the evolving landscape of the tourism market in California.
The general sentiment surrounding AB 1664 is one of support among small business advocates and the restaurant and retail sectors, who view the bill as a necessary step to mitigate burdens that can hinder their economic viability. Conversely, there may be concerns from stakeholders who emphasize the importance of tourism funding, arguing that exemptions could lead to a decrease in revenue necessary to promote California as a travel destination. Overall, the sentiment reflects a balance between supporting local businesses and ensuring adequate funding for tourism promotion.
Notable points of contention surrounding AB 1664 may include debates over the appropriateness of exempting businesses with varying levels of engagement in the tourism industry from what many consider crucial assessments. Critics could argue that such exemptions could reduce overall funding for vital tourism promotion initiatives, affecting broader economic impacts on the state's economy. Furthermore, the adequacy of protections against potential abuses in consumer loans remains an important point of discussion, focusing on how these changes will protect consumers while still allowing the lending industry to function efficiently.