MLTA Government Affairs Update

Michigan Lodging and Tourism Association

Serving the needs of Michigan’s Lodging & Tourism Industries….

Term Limits Impact to be Dramatic

On December 31, 2010 Michigan’s Governor, twenty nine members of the thirty eight member State Senate and thirty four members of the 110 member House of Representatives will be termed out of office. This represents a huge loss of institutional knowledge about Michigan tourism in general, and the importance of Pure Michigan funding specifically.

Amidst all the primary campaigns, and media coverage of partisan politics, MLTA is still actively involved in monitoring and acting on legislation affecting your future. Here’s a brief summary of legislative positions taken by MLTA’s Board of Directors at their June 10^th meeting:

Pure Michigan Funding remains Top MLTA Priority

Passage of legislation providing consistent annual state funding of at least $30 million for Pure Michigan continues to be MLTA’s topmost priority. At its June meeting MLTA’s Board embraced a proposal to keep the issue of Pure Michigan funding high on the Legislature’s list of priorities.

Michigan’s Constitution requires that the State’s budget be adopted on or before October 1, 2010. That means that our industry must keep this issue in front of the current legislators who will determine the 2011 budget for Pure Michigan. At the same time we must educate candidates on the issue of Pure Michigan funding who are running to replace termed-out policymakers at all levels. It is essential that we keep this issue in front of the media and the general public as well. To do that, we must work to make the issue of full and permanent Pure Michigan funding part of the conversation in all campaigns for Governor, Senate, or the House.

It is equally important that MLTA position itself to maintain and grow its current small base of members. All of this must be accomplished within the confines of MLTA’s limited financial and staff resources.

“Pure Michigan Mondays” to air on Major Radio Stations

To achieve this, MLTA’s Board voted to invest $10,000 and to seek industry partners to match this investment to buy radio ads designed to educate policymakers and build support for passage of legislation providing full and permanent funding of a year-round and nationwide Pure Michigan campaign. The ads will run on two of the state’s biggest stations and radio networks and will be produced by two of Michigan’s most well-known radio personalities. Stay tuned for additional news on this initiative. MLTA works creatively and tirelessly for you!

MACVB pursues legislation to amend PA 59

The Michigan Association of Convention & Visitor Bureaus (MACVB) plans to initiate legislation which would amend the statutory cap on the assessment from 2% to 5%. MACVB has retained a multi-client lobbyist and is in the process of securing a legislative sponsor for this proposed legislation. In recent weeks, MACVB has requested all member CVB Directors to approach their respective Boards of Directors to seek adoption of resolutions of support or neutrality on this proposed legislation. If enacted into law, any increase in a CVB’s assessment would still be subject to a referendum of local hoteliers.

MLTA’s Board voted unanimously to adopt a position of neutrality on this legislative proposal unless the legislation is amended to redirect funds to purposes other than local community destination marketing, or in such a way that would present a clear and obvious threat to full and permanent funding of Pure Michigan.

Great Lakes Bay Region’s CVB – HB 6206

The Saginaw County CVB, and the Midland and Bay County CVBs hope to merge operations and create a jointly-funded tri-county convention and visitor bureau. Legislation has been introduced to achieve this end. HB 6206 moves away from the bed tax approach originally proposed to legislation which authorizes Bay and Midland counties to increase their room assessments from 2% to 5%.

The legislation mirrors PA 59, 1984 with several exceptions: 1) It narrowly defines (by population) municipalities contiguous to a hotel tax county (PA 263) that appears to include only Bay and Midland Counties; 2) does not require a majority of innkeepers on their board of directors; 3) must have a full time CEO, two employees and 5 years of existence; 4) also defines ‘Director’ as the CEO of the MEDC; 5) defines transient lodging facility as having 2 or more rooms; 6) defines a 1.5% per month interest on overdue assessments and a 10% per month delinquency charge for assessments over 90 days. The proposed legislation does not appear to require a referendum by local hoteliers before going into effect.

MLTA’s Board unanimously voted that the association should adopt a position of neutrality on HB 6206 unless the legislation is amended to extend beyond its current limited geographic scope or in such a way that would present a clear and obvious threat to full and permanent funding of Pure Michigan.

SB 1204 - Public Act 82, 2010 was signed into law by Governor Granholm deleting the ‘fourth class city’ language from PA 59, 1984 and allowing the opportunity for Mackinac Island to create a 2% room assessment district. The Act further amends the reference to ‘Director’ being the Director of the (extinct) Department of Commerce and changing it to ‘President of the Michigan Strategic Fund’ which is the President of the MEDC (Greg Main).

Similar to the positions adopted above, MLTA took a position of neutrality on this legislation, and would have opposed the bill only if it had presented a clear and obvious threat to full and permanent funding of Pure Michigan.

Save the Dates!

Friday, August 27th

MLTA Government Affairs Golf Outing

Timber Ridge Golf Club

Wednesday, September 22nd

Michigan Lodging and Tourism Legislative Conference

Radisson Hotel, Lansing