Sections 81-3701 to 81-3730 shall be known and may be cited as the Nebraska Visitors Development Act.

The purposes of the Nebraska Visitors Development Act are (1) to create the Nebraska Tourism Commission to promote Nebraska as a tourism destination and to administer programs to attract an increasing number of visitors to Nebraska and further the use of travel and tourism facilities in Nebraska, (2) to provide for a lodging tax on hotels for the purpose of establishing a State Visitors Promotion Cash Fund, and (3) to authorize the governing body of any county to appoint a visitors committee and impose a lodging tax on hotels for the purpose of establishing a County Visitors Promotion Fund and a County Visitors Improvement Fund.

For purposes of the Nebraska Visitors Development Act, unless the context otherwise requires, the definitions found in sections 81-3704 to 81-3709.01 apply.

Commission means the Nebraska Tourism Commission.

Committee means the visitors committee appointed as provided in section 81-3717 for the purpose of advising the county board in administering the County Visitors Promotion Fund and the County Visitors Improvement Fund established pursuant to such section and carrying out the purposes of the Nebraska Visitors Development Act.

Consideration means the monetary charge for the use of space in a hotel only if the space is one ordinarily used for accommodations and shall not include the charge for any food or beverage served or personal services rendered to the occupant of such space.

Highway tourism marker means a marker of a particular style authorized by the commission to designate tourism attractions.

Hotel means any facility in which the public may, for a consideration, obtain sleeping accommodations. Hotel includes hotels, motels, tourist homes, campgrounds, courts, lodging houses, inns, state-operated hotels, and nonprofit hotels but does not include hospitals, sanitariums, nursing homes, chronic care centers, or dormitories or facilities operated by an educational institution and regularly used to house students.

Occupancy means the use or possession or the right to the use or possession of any space in a hotel if the space is one ordinarily used for accommodations and if the occupant's use, possession, or right to the use or possession is for less than a period of thirty days.

Occupant means anyone who, for a consideration, uses, possesses, or has a right to use or possess any space in a hotel if the space is one ordinarily used for accommodations.

Tourism industry includes any person or other entity, whether for-profit or not-for-profit, that promotes an activity, an event, or a site which attracts both instate and out-of-state visitors, including, but not limited to, a chamber of commerce, a convention and visitors bureau, the hospitality industry, the food and beverage industry, the hotel industry, a passenger transportation provider, any business or organization engaged in recreational, historical, cultural, artistic, or entertainment pursuits, and any person who owns or operates any such activity, event, or site.

(1) The Nebraska Tourism Commission is created. The terms of the members serving pursuant to subsection (2) of this section terminate thirty days after August 24, 2017. The terms of the members serving pursuant to subsection (3) of this section begin thirty days after August 24, 2017.

(2) Until thirty days after August 24, 2017, the commission shall consist of the following members:

(a) One representative from the Game and Parks Commission;

(b) One representative from the Nebraska Travel Association;

(c) One representative from the Nebraska Hotel and Motel Association;

(d) One representative from a tourism attraction that records at least two thousand out-of-state visitors per year;

(e) One representative from the Nebraska Association of Convention and Visitors Bureaus;

(f) One representative from the Western Nebraska Tourism Coalition;

(g) One representative who resides in eastern Nebraska and is employed by a business that derives a majority of its revenue from out-of-state visitors;

(h) One representative from the Central Nebraska Tourism Partnership; and

(i) One representative of a business that derives a majority of its revenue from out-of-state visitors.

(3)(a) The Governor shall, within thirty days after August 24, 2017, appoint the members of the commission to begin serving at such time, prior to approval by the Legislature. The members shall consist of eleven residents of the State of Nebraska. Four of the members shall have professional, volunteer, or public service experience that contributes to the fiduciary and governance duties of the commission. Seven of the members shall be affiliated with the tourism industry. One member shall be appointed from each of the eleven districts designated in subdivision (b) of this subsection.

(b) For purposes of this section, the state is hereby divided into eleven districts. The limits and designations of the eleven districts shall be as follows:

(i) District No. 1. Douglas County;

(ii) District No. 2. Lancaster County;

(iii) District No. 3. The counties of Richardson, Pawnee, Nemaha, Johnson, Otoe, Gage, Saline, and Jefferson;

(iv) District No. 4. The counties of Cass and Sarpy;

(v) District No. 5. The counties of Saunders, Washington, Dodge, Colfax, Stanton, Cuming, Burt, Thurston, Wayne, Cedar, Dixon, and Dakota;

(vi) District No. 6. The counties of Butler, Polk, Platte, Merrick, Nance, Boone, Madison, Pierce, Antelope, Knox, Holt, and Boyd;

(vii) District No. 7. The counties of Thayer, Nuckolls, Webster, Adams, Clay, Fillmore, Seward, York, Hamilton, Franklin, and Harlan;

(viii) District No. 8. The counties of Kearney, Phelps, Hall, Howard, Greeley, Wheeler, Buffalo, Sherman, Valley, and Garfield;

(ix) District No. 9. The counties of Lincoln, Keya Paha, Rock, Brown, Loup, Blaine, Custer, Logan, McPherson, Arthur, Grant, Hooker, Thomas, and Cherry;

(x) District No. 10. The counties of Furnas, Red Willow, Hitchcock, Dundy, Chase, Hayes, Frontier, Gosper, Dawson, Perkins, and Keith; and

(xi) District No. 11. The counties of Deuel, Garden, Sheridan, Cheyenne, Morrill, Box Butte, Dawes, Sioux, Scotts Bluff, Banner, and Kimball.

(c) The Governor shall appoint members representing district numbers 1, 6, 8, and 11 to serve for terms ending April 1, 2019; members representing district numbers 2, 5, 7, and 10 to serve for terms ending April 1, 2021; and members representing district numbers 3, 4, and 9 to serve for terms ending April 1, 2023. The terms of their successors shall be four years. The Governor shall appoint their successors with the approval of the majority of the members of the Legislature. A person appointed to serve pursuant to this subsection may serve only two successive terms.

The commission shall:

(1) Administer the Nebraska Visitors Development Act;

(2) Prepare and approve a budget;

(3) Elect a chairperson and vice-chairperson;

(4) Procure and evaluate data and information necessary for the proper administration of the act;

(5) Appoint an executive director at a salary to be fixed by the commission to conduct the day-to-day operations of the commission;

(6) Employ personnel and contract for services which are necessary for the proper operation of the commission;

(7) Establish a means by which any interested person has the opportunity at least annually to offer his or her ideas and suggestions relative to the commission's duties for the upcoming year;

(8) Authorize the expenditure of funds and contracting of expenditures to carry out the act;

(9) Keep minutes of its meetings and other books and records which clearly reflect all of the actions and transactions of the commission and keep such records open to examination during normal business hours;

(10) Prohibit any funds appropriated to the commission from being expended directly or indirectly to promote or oppose any candidate for public office or to influence state or federal legislation;

(11) Have authority to mark significant tourism attractions as provided in section 81-3711.01;

(12) Have authority to develop and approve state marketing campaigns;

(13) Adopt and promulgate rules and regulations to carry out the Nebraska Visitors Development Act;

(14) Develop and administer a program to provide promotional services, technical assistance, and state aid to local governments and the tourism industry;

(15) Establish written policies and procedures governing the executive director and the personnel of the commission in the expenditure and use of funds appropriated to the commission;

(16) Cooperate with federal, state, and local governments and private individuals and organizations to carry out any of the functions of the commission and purposes of the Nebraska Visitors Development Act; and

(17) Actively coordinate and develop working partnerships with other state agencies, including, but not limited to, the Commission on Indian Affairs, the Department of Economic Development, the Game and Parks Commission, the Nebraska Arts Council, the Nebraska State Historical Society, and the University of Nebraska.

(1) The commission may mark significant tourism attractions in Nebraska.

(2) The commission may (a) determine what tourism attractions are significant to the State of Nebraska, (b) expend funds for the purchase of highway tourism markers, (c) designate the approximate location of highway tourism markers, (d) preserve, replace, or modify highway tourism markers, and (e) accept gifts and encourage local participation in and contribution to the erection of highway tourism markers through the use of gifts and matching-fund agreements. Such funds shall be deposited into the State Visitors Promotion Cash Fund. The commission shall not expend funds for the purchase of highway tourism markers until funding has been secured through gifts or otherwise.

(3) The commission may appoint and delegate to a special committee the duties of research and investigation to assist in the determination of tourism attractions that should be designated by highway tourism markers. The Department of Transportation shall erect and maintain highway tourism markers and shall determine the exact location of highway tourism markers with consideration given for the safety and welfare of the public.

(4) The commission may secure payment to the state for the actual replacement cost of any highway tourism markers damaged or destroyed, accidentally or otherwise. Any funds so collected shall be remitted to the State Treasurer for credit to the State Visitors Promotion Cash Fund for the procurement of highway tourism markers.

(5) Nothing in this section shall be construed to restrict the placement of any marker or signage on private property.

For purposes of transition, employees of the Travel and Tourism Division of the Department of Economic Development shall be considered employees of the commission and shall retain their rights under the state personnel system or pertinent bargaining agreement, and their service shall be deemed continuous. This section does not grant employees any new rights or benefits not otherwise provided by law or bargaining agreement or preclude the commission from exercising any of the prerogatives of management set forth in section 81-1311 or as otherwise provided by law. This section is not an amendment to or substitute for the provisions of any existing bargaining agreements.

The commission shall develop a statewide strategic plan to cultivate and promote tourism in Nebraska. The commission shall review the plan annually and update as necessary. The plan shall include:

(1) A review of revenue in the State Visitors Promotion Cash Fund available for tourism development at the state level;

(2) An examination of best management practices for the tourism industry;

(3) Marketing strategies for promoting tourism;

(4) Methods to expand existing tourism capacity which may include encouraging regional cooperation, collaboration, or privatization; and

(5) Recommended strategies to provide technical assistance, marketing services, and state aid to local governments and the tourism industry in Nebraska.

The State Visitors Promotion Cash Fund is created. The fund shall be administered by the commission. The fund shall consist of revenue deposited into the fund pursuant to section 81-3715 and money donated as gifts, bequests, or other contributions from public or private entities. Funds made available by any department or agency of the United States may also be credited to the fund if so directed by such department or agency. The commission shall use the proceeds of the fund to generally promote, encourage, and attract visitors to and within the State of Nebraska, to erect and replace highway tourism markers, to enhance the use of travel and tourism facilities within the state, to provide grants to communities and organizations, and to contract with the Department of Administrative Services to provide support services to the commission, including, but not limited to, accounting and personnel functions. The proceeds of the fund shall be in addition to funds appropriated to the commission from the General Fund. Transfers may be made from the State Visitors Promotion Cash Fund to the General Fund at the direction of the Legislature. The State Treasurer shall transfer one million dollars from the State Visitors Promotion Cash Fund to the General Fund on or before June 30, 2019, on such dates and in such amounts as directed by the budget administrator of the budget division of the Department of Administrative Services. Any money in the State Visitors Promotion Cash Fund available for investment shall be invested by the state investment officer pursuant to the Nebraska Capital Expansion Act and the Nebraska State Funds Investment Act.

There is hereby imposed an additional sales tax of one percent upon the total consideration charged for occupancy of any space furnished by any hotel in this state. The proceeds from such tax shall be paid to the State Visitors Promotion Cash Fund.

(1) The governing body of any county may after a public hearing adopt a resolution to impose an additional sales tax of not to exceed two percent upon the total consideration charged for occupancy of any space furnished by any hotel if such county has created a County Visitors Promotion Fund and a visitors committee pursuant to section 81-3717. The proceeds from such tax shall be paid to the County Visitors Promotion Fund.

(2) The governing body of any county may after a public hearing adopt a resolution to impose an additional sales tax of not to exceed two percent upon the total consideration charged for occupancy of any space furnished by any hotel if such county has created a County Visitors Improvement Fund and a visitors committee pursuant to section 81-3717. The proceeds from such tax shall be paid to the County Visitors Improvement Fund.

(3) The taxes authorized by this section shall be in addition to the tax authorized in section 81-3715 or any other sales tax imposed or authorized.

(1) The governing body of the county shall after a public hearing adopt a resolution establishing a County Visitors Promotion Fund and a visitors committee which shall serve as an advisory committee to the governing body in administering the proceeds from the taxes provided to the county by the Nebraska Visitors Development Act. The governing body of a county may also after a public hearing adopt a resolution establishing a County Visitors Improvement Fund. The proceeds of the County Visitors Promotion Fund shall be used generally to promote, encourage, and attract visitors to come to the county and use the travel and tourism facilities within the county. The proceeds of the County Visitors Improvement Fund shall be used to improve the visitor attractions and facilities in the county, except that no proceeds shall be used to improve a facility in which parimutuel wagering is conducted unless such facility also serves as the site of a state fair or district or county agricultural society fair. If the visitors committee determines that the visitor attractions in the county are adequate and do not require improvement, the governing body of the county, with the advice of the committee, may only use the County Visitors Improvement Fund to promote, encourage, and attract visitors to the county to use the county's travel and tourism facilities or, with the advice of the visitors committee, make grants to organizations to promote, encourage, and attract visitors to the county to use the county's travel and tourism facilities. The committee shall consist of five or seven members appointed by the governing body of the county. If the committee has five members, at least one but no more than two members of the committee shall be in the hotel industry. If the committee has seven members, at least two but no more than three members of the committee shall be in the hotel industry.

(2) The members of the committee shall serve without compensation, except for reimbursement for necessary expenses. Committee members shall serve for terms of four years, except that at least half of those appointed shall be appointed for initial terms of two years. Vacancies shall be filled in the same manner as the initial appointments. The committee shall elect a chairperson and vice-chairperson from among its members to serve for terms of two years.

The governing body of the county shall annually set the budget, if any, under which the committee shall operate.

The county board may contract with any person, firm, association, or corporation to carry out its powers and duties under the Nebraska Visitors Development Act.

(1)(a) The County Visitors Improvement Fund shall be administered by the governing body of the county with the advice of the visitors committee created pursuant to section 81-3717. The fund shall be used to make grants for expanding and improving facilities at any existing visitor attraction, acquiring or expanding exhibits for existing visitor attractions, constructing visitor attractions, or planning or developing such expansions, improvements, or construction.

(b) Grants shall be available for any visitor attraction in the county owned by the public or any nonprofit organization, the primary purpose of which is to operate the visitor attraction.

(c) Grants may be made for a specified annual amount not to exceed the proceeds derived from a sales tax rate of one percent imposed by a county for a County Visitors Improvement Fund for a term of years not to exceed twenty years and may be pledged by the recipient to secure bonds issued to finance expansion, improvement, or construction of a visitor attraction. Any grant made for a term of years shall be funded each year in accordance with any agreement contained in the grant contract.

(d) No bonds issued by a grant recipient which pledges grant funds shall constitute a debt, liability, or general obligation of the county levying the tax or a pledge of the faith and credit of the county levying the tax but shall be payable solely from grant funds. Each bond issued by any grant recipient which pledges grant funds shall contain on the face thereof a statement that neither the faith and credit nor the taxing power of the county levying the tax is pledged to the payment of the principal of or the interest on such bond.

(2) For purposes of this section and section 81-3717, visitor attraction means a defined location open to the public, which location is of educational, cultural, historical, artistic, or recreational significance or provides entertainment or in which are exhibits, displays, or performances of educational, cultural, historic, artistic, or entertainment value.

All contracts awarded by the commission shall be subject to sections 73-501 to 73-510. The commission shall comply with the rules, regulations, procedures, and guidelines established by the Department of Administrative Services for contracts.

Unless otherwise specifically provided, any sales tax on transient lodging imposed under the Nebraska Visitors Development Act is in addition to that sales tax imposed under the provisions of Chapter 77, article 27, and shall be interpreted, collected, remitted, and enforced by the Tax Commissioner under the provisions of such article. Any sales tax on transient lodging imposed under the Nebraska Visitors Development Act shall be due and payable to the Tax Commissioner monthly on or before the twenty-fifth day of the month next succeeding each monthly period.

The amount the Tax Commissioner shall remit, as taxes collected for a County Visitors Promotion Fund, shall be reduced by three percent as an administrative fee necessary to defray the cost of collecting the tax and the expenses incident to such collection.

The Tax Commissioner shall adopt and promulgate rules and regulations to carry out the collection of lodging taxes under the Nebraska Visitors Development Act.

(1) The commission shall develop a program to provide marketing assistance grants to communities and organizations hosting national or international-caliber events held in Nebraska that have the potential to attract a significant percentage of out-of-state visitors and to generate favorable national or international press coverage for Nebraska.

(2) A community or organization applying for a marketing assistance grant shall provide a plan to the commission that includes: (a) Documentation that the event will attract out-of-state visitors; (b) details regarding the type of marketing that would be carried out with state funds; (c) methodologies used to track the impact of marketing efforts and the number of out-of-state visitors attending the event; and (d) details regarding the potential national or international press coverage that will be generated by the event.

(3) The commission shall develop a program to provide innovative tourism grants to communities or organizations that provide tourism and visitor promotion services, host events, or promote attractions which result in either (a) an increased number of nonlocal, instate visitors or (b) an increased number of both nonlocal, instate visitors and out-of-state visitors. Innovative tourism grants may include, but not be limited to, marketing assistance, planning assistance, basic support, and regional cooperation. Innovative tourism grants shall not be used for equipment or capital facility development or improvements.

(4) The executive director shall convene a technical review committee of no fewer than three individuals representing the public sector, the private sector, and citizens at large. The technical review committee and the executive director shall review and score applications for marketing assistance grants and innovative tourism grants and forward recommendations to the commission for approval by the commission or a subcommittee of the commission.

(5) Communities and organizations receiving marketing assistance grants or innovative tourism grants authorized under this section shall provide a final report to the commission within ninety days after the completion date of the event that includes event attendance, the use of funds, and marketing impact information.

(6) The commission shall adopt and promulgate rules and regulations governing the grant programs authorized under this section.

The Tourism Conference Cash Fund is created. The fund shall be administered by the commission. All sums of money received from fees from any conference or event held by the commission shall be deposited in the fund. The commission shall use the fund to defray expenses related to any conference or event sponsored by the commission. Any money in the fund available for investment shall be invested by the state investment officer pursuant to the Nebraska Capital Expansion Act and the Nebraska State Funds Investment Act.

(1) Vendors under contract with the commission to develop, print, and distribute publications and promotional materials or produce, sell, and distribute tourism promotional products on behalf of the commission shall, on a monthly basis, submit to the commission all revenue received from the sale of advertising space in such publications or from the sale of such tourism promotional products. Monthly submissions shall include an itemization of the sources of revenue in a format as designated by the commission. Revenue from such sales shall be remitted to the State Treasurer for credit to the Nebraska Tourism Commission Promotional Cash Fund.

(2) The commission may enter into agreements directly with retailers to sell tourism promotional products. If a retailer pays for such products in full at the time of acquisition, the retailer shall have no further reporting requirements. The commission shall remit payments received from retailers acquiring such products to the State Treasurer for credit to the Nebraska Tourism Commission Promotional Cash Fund.

The Nebraska Tourism Commission Promotional Cash Fund is hereby created. The fund shall consist of revenue submitted by vendors and retailers under section 81-3728. Revenue from the sale of advertising shall be remitted to the State Treasurer for credit to the fund. The commission shall use the fund to carry out its purposes under the Nebraska Visitors Development Act. Any money in the fund available for investment shall be invested by the state investment officer pursuant to the Nebraska Capital Expansion Act and the Nebraska State Funds Investment Act.