EXEMPT S.B. 477 - *SB477* SENATE BILL NO. 477–COMMITTEE ON FINANCE (ON BEHALF OF THE OFFICE OF FINANCE IN THE OFFICE OF THE GOVERNOR) MAY 11, 2023 ____________ Referred to Committee on Finance SUMMARY—Makes various changes relating to the Department of Tourism and Cultural Affairs. (BDR 18-1066) FISCAL NOTE: Effect on Local Government: No. Effect on the State: Executive Budget. ~ EXPLANATION – Matter in bolded italics is new; matter between brackets [omitted material] is material to be omitted. AN ACT relating to tourism; authorizing the Director of the Department of Tourism and Cultural Affairs to appoint a Deputy Director of the Division of Tourism; creating the Fund for Tourism and Cultural Affairs; eliminating the ex officio, nonvoting members of the Commission on Tourism; revising provisions relating to the Nevada Magazine; and providing other matters properly relating thereto. Legislative Counsel’s Digest: Existing law creates the Department of Tourism and Cultural Affairs, 1 consisting of: (1) the Division of Tourism; (2) the Division of Museums and 2 History; (3) the Board of Museums and History, (4) the Nevada Arts Council; (5) 3 the Nevada Indian Commission; (6) the Board of the Nevada Arts Council; and (7) 4 the Commission on Tourism. (NRS 231.167) The Director of the Department has 5 various powers and duties relating to tourism and cultural affairs and is appointed 6 by the Governor from a list of three persons submitted to the Governor by the 7 Lieutenant Governor from recommendations made by: (1) voting members of the 8 Commission on Tourism; (2) the Chair of the Board of Museums and History; (3) 9 the Chair of the Nevada Indian Commission; and (4) the Chair of the Board of the 10 Nevada Arts Council. (NRS 231.210, 231.220) 11 Under existing law, the Department, through the Director, may employ certain 12 staff and consultants. (NRS 231.230) Section 2 of this bill authorizes the Director 13 to appoint a Deputy Director, who is in the unclassified service of the State, to carry 14 out the duties set forth in existing law for the Division of Tourism. Section 7 of this 15 bill makes a conforming change relating to the Deputy Director being in the 16 unclassified service. 17 – 2 – - *SB477* Under existing law, the Commission on Tourism is composed of 11 voting 18 members and certain ex officio, nonvoting members who are the Chair of the Board 19 of Museums and History, the Chair of the Nevada Indian Commission and the 20 Chair of the Board of the Nevada Arts Council. (NRS 231.170) Section 5 of this 21 bill eliminates the ex officio, nonvoting members of the Commission on Tourism. 22 Under existing law, the Department, through the Division of Tourism, is 23 required to publish or cause to be published a magazine known as Nevada 24 Magazine, which must contain materials which educate the general public about 25 this State and thereby foster awareness and appreciation of Nevada’s heritage, 26 culture, historical monuments, natural wonders and natural resources. (NRS 27 231.260, 231.290) Sections 6, 8 and 9 of this bill rename such publication to be the 28 Nevada Magazine and Visitor Guide. 29 Existing law creates the Fund for the Nevada Magazine as an enterprise fund 30 for all receipts from publication of the Nevada Magazine. (NRS 231.290) Section 3 31 of this bill creates the Fund for Tourism and Cultural Affairs, to be administered by 32 the Director. Section 9: (1) eliminates the Fund for the Nevada Magazine; (2) 33 requires that receipts from the publication of the Nevada Magazine and Visitor 34 Guide be deposited in the Fund for Tourism and Cultural Affairs; and (3) authorizes 35 revenue from the publication of the Nevada Magazine and Visitor Guide to be used 36 to publish and distribute to schools educational materials relating to the natural and 37 cultural resources of this State. 38 Sections 4 and 7 of this bill make conforming changes to indicate the proper 39 placement of sections 2 and 3 in the Nevada Revised Statutes. 40 THE PEOPLE OF THE STATE OF NEVADA, REPRESENTED IN SENATE AND ASSEMBLY, DO ENACT AS FOLLOWS: Section 1. Chapter 231 of NRS is hereby amended by adding 1 thereto the provisions set forth as sections 2 and 3 of this act. 2 Sec. 2. 1. The Director may appoint a Deputy of the 3 Division of Tourism in the unclassified service of the State. 4 2. If appointed pursuant to subsection 1, the Deputy shall: 5 (a) Carry out the duties of the Division set forth in NRS 6 231.260, 231.270 and 231.290. 7 (b) Except as otherwise provided in NRS 284.143, devote his or 8 her entire time to the duties of his or her office and shall not 9 follow any other gainful employment or occupation. 10 Sec. 3. 1. The Fund for Tourism and Cultural Affairs is 11 hereby created in the State Treasury, to be administered by the 12 Director. 13 2. Money in the Fund must be used to support the operations 14 of the Department in administering the provisions of NRS 231.161 15 to 231.360, inclusive, and sections 2 and 3 of this act. The money 16 in the Fund must remain in the Fund and does not revert to the 17 State General Fund at the end of any fiscal year. 18 3. Claims against the Fund must be paid as other claims 19 against the State are paid. 20 – 3 – - *SB477* 4. Interest and income earned on money in the Fund must be 1 credited to the Fund. 2 Sec. 4. NRS 231.161 is hereby amended to read as follows: 3 231.161 As used in NRS 231.161 to 231.360, inclusive, and 4 sections 2 and 3 of this act, unless the context otherwise requires, 5 the words and terms defined in NRS 231.163 and 231.165 have the 6 meanings ascribed to them in those sections. 7 Sec. 5. NRS 231.170 is hereby amended to read as follows: 8 231.170 1. The Commission on Tourism is composed of [: 9 (a) Eleven] eleven voting members as follows: 10 [(1)] (a) The Lieutenant Governor, who is its Chair; 11 [(2)] (b) Eight members, appointed by the Governor, who 12 are informed on and have experience in travel and tourism, 13 including the business of gaming; and 14 [(3)] (c) The chief administrative officers of the county fair 15 and recreation boards or, if there is no county fair and recreation 16 board in the county, the chair of the board of county commissioners, 17 of the two counties that paid the largest amount of the proceeds 18 from the taxes imposed on the revenue from the rental of transient 19 lodging to the Department of Taxation for deposit with the State 20 Treasurer for credit to the Fund for the Promotion of Tourism 21 created by NRS 231.250 for the previous fiscal year. 22 [(b) The following ex officio, nonvoting members: 23 (1) The Chair of the Board of Museums and History; 24 (2) The Chair of the Nevada Indian Commission; and 25 (3) The Chair of the Board of the Nevada Arts Council.] 26 2. A change in any member of the Commission who serves 27 pursuant to [subparagraph (3) of] paragraph [(a)] (c) of subsection 1 28 that is required because of a change in the amount of the proceeds 29 paid to the Department of Taxation by each county must be effective 30 on January 1 of the calendar year immediately following the fiscal 31 year in which the proceeds were paid to the Department of Taxation. 32 3. Of the members appointed by the Governor pursuant to 33 [subparagraph (2) of] paragraph [(a)] (b) of subsection 1: 34 (a) At least one member must be a resident of a county whose 35 population is 700,000 or more. 36 (b) At least one member must be a resident of a county whose 37 population is 100,000 or more but less than 700,000. 38 (c) At least two members must be residents of counties whose 39 population is less than 100,000. 40 (d) Four members may be residents of any county in this State. 41 Sec. 6. NRS 231.200 is hereby amended to read as follows: 42 231.200 The Commission on Tourism: 43 1. Shall establish the policies and approve the programs and 44 budgets of the Division of Tourism concerning: 45 – 4 – - *SB477* (a) The promotion of tourism and travel in this State; and 1 (b) The publication of Nevada Magazine and Visitor Guide and 2 other promotional material. 3 2. May adopt regulations to administer and carry out the 4 policies and programs of the Division of Tourism. 5 3. May from time to time create special advisory committees to 6 advise it on special problems of tourism. Members of special 7 advisory committees, other than members of the Commission, may 8 be paid the per diem allowance and travel expenses provided for 9 state officers and employees, as the budget of the Commission 10 permits. 11 Sec. 7. NRS 231.230 is hereby amended to read as follows: 12 231.230 1. The Department through the Director may: 13 (a) Employ such professional, technical, clerical and operational 14 employees as the operation of the Department may require; and 15 (b) Employ such experts, researchers and consultants and enter 16 into such contracts with any public or private entities as may be 17 necessary to carry out the provisions of NRS 231.161 to 231.360, 18 inclusive [.] , and sections 2 and 3 of this act. 19 2. Except as otherwise provided in subsection 3, the clerical 20 employees of the Department are in the classified service of the 21 State. 22 3. [The] Except as otherwise provided in section 2 of this act, 23 the Director may appoint to the Department employees in either the 24 classified or unclassified service of the State, in accordance with the 25 historical manner of categorization, unless state or federal law or 26 regulation requires otherwise. 27 Sec. 8. NRS 231.260 is hereby amended to read as follows: 28 231.260 The Department, through the Division of Tourism, 29 shall: 30 1. Promote this State so as to increase the number of domestic 31 and international tourists. 32 2. Promote special events and exhibitions which are designed 33 to increase tourism. 34 3. Develop a State Plan to Promote Travel and Tourism in 35 Nevada. 36 4. Develop a comprehensive program of marketing and 37 advertising, for both domestic and international markets, which 38 publicizes travel and tourism in Nevada in order to attract more 39 visitors to this State or lengthen their stay. 40 5. Provide and administer grants of money or matching grants 41 to political subdivisions of the State, to fair and recreation boards, 42 and to local or regional organizations which promote travel and 43 tourism, to assist them in: 44 – 5 – - *SB477* (a) Developing local programs for marketing and advertising 1 which are consistent with the State Plan. 2 (b) Promoting specific events and attractions in their 3 communities. 4 (c) Evaluating the effectiveness of the local programs and 5 events. 6 Each recipient must provide an amount of money, at least equal 7 to the grant, for the same purpose, except, in a county whose 8 population is less than 55,000, the Division of Tourism may, if 9 convinced that the recipient is financially unable to do so, provide a 10 grant with less than equal matching money provided by the 11 recipient. 12 6. Coordinate and assist the programs of travel and tourism of 13 counties, cities, local and regional organizations for travel and 14 tourism, fair and recreation boards and transportation authorities in 15 the State. Local governmental agencies which promote travel and 16 tourism shall coordinate their promotional programs with those of 17 the Division of Tourism. 18 7. Encourage cooperation between public agencies and private 19 persons who have an interest in promoting travel and tourism in 20 Nevada. 21 8. Compile or obtain by contract, keep current and disseminate 22 statistics and other marketing information on travel and tourism in 23 Nevada. 24 9. Prepare and publish brochures, travel guides, directories and 25 other materials which promote travel and tourism in Nevada. 26 10. Publish or cause to be published a magazine to be known 27 as the Nevada Magazine [.] and Visitor Guide. The Nevada 28 Magazine and Visitor Guide must contain materials which educate 29 the general public about this State and thereby foster awareness and 30 appreciation of Nevada’s heritage, culture, historical monuments, 31 natural wonders and natural resources. 32 Sec. 9. NRS 231.290 is hereby amended to read as follows: 33 231.290 1. [The Fund for the Nevada Magazine is hereby 34 created as an enterprise fund. 35 2.] All receipts from publication of the Nevada Magazine and 36 Visitor Guide and from any other operation conducted by the 37 magazine must be deposited with the State Treasurer for credit to 38 the Fund [,] for Tourism and Cultural Affairs created pursuant to 39 section 3 of this act, and all other financial activities related to the 40 publication or other operations of the magazine must be accounted 41 for in the Fund. [Claims against the Fund must be paid as other 42 claims against the State are paid.] Revenue from the publication of 43 the Nevada Magazine and Visitor Guide may be used for the 44 – 6 – - *SB477* publication and distribution to schools of educational materials 1 relating to the natural and cultural resources of this State. 2 [3.] 2. This section does not preclude Nevada Magazine and 3 Visitor Guide from trading its advertising services for services or 4 products that promote or benefit Nevada Magazine [,] and Visitor 5 Guide, including, without limitation, travel services which are 6 required by Nevada Magazine [,] and Visitor Guide, circulation 7 services, sponsorship of awards, memberships, entry fees for trade 8 shows and advertising services with other publications, if: 9 (a) A fair market value can be established for the service or 10 product; 11 (b) The trade is accounted for in the Fund; and 12 (c) The State Board of Examiners approves the trade. 13 Sec. 10. On July 1, 2023, the State Controller shall transfer 14 any unexpended balance in the Fund for the Nevada Magazine 15 created by NRS 231.290 to the Fund for Tourism and Cultural 16 Affairs created pursuant to section 3 of this act. 17 Sec. 11. This act becomes effective on July 1, 2023. 18 H