California Code of Regulations
Title 10 - Investment
Chapter 7.65 - Tourism Marketing Act
Subchapter 1 - Definitions
Section 5350 - Definitions

Universal Citation: 10 CA Code of Regs 5350

Current through Register 2024 Notice Reg. No. 38, September 20, 2024

(a) "Accommodation Location" is any passenger car rental location on the property of a hotel, motel or other accommodation facility.

(b) "Act" means the California Tourism Marketing Act, Government Code Section 13995 et seq.

(c) "Airport Location" is any passenger car rental location on an airport property or servicing an airport and subject to either an airport concession agreement or an airport access fee agreement.

(d) "Assessed Business" means a Business which derives any California Gross Receipts from a California Business Location from one or more Industry Segments and participates in the Tourism Assessment Program by paying an annual Assessment pursuant to the Act.

(e) "Assessment" means the amount of Business Location annual fees owed by the Assessed Business to the Office pursuant to the Act.

(f) "Assessment Rate" for the Passenger Rental Car Industry Segment shall be set forth in Section 5357.1 below. For all other segments, the "Assessment Rate" shall be as determined by referendum under the Act.

(g) "Authorized Representative" means a person authorized by the Business to sign and provide the information required in the Registration Form and the Ballot. Examples of authorized representatives include sole proprietor, corporate officers, general partners and fiduciaries.

(h) "Ballot" means the written document sent to Assessed Businesses consisting of the information listed in Section 5355.

(i) "Business" means an individual (sole proprietorship), partnership, fiduciary, corporation, association, or any other business organization, whether operating on a profit or nonprofit basis.

(j) "Business Location" means the California street address where Travel and Tourism Revenues are generated by a Business. If the Business has more than one business license for a single address, then each activity requiring a business license is a separate Business Location.

(k) California Travel and Tourism Commission ("CTTC") is the commission that promotes California as a tourism destination, both domestically and internationally. It is headquartered at 980 9th Street, Suite 480, Sacramento, CA 95814.

(l) "California Gross Receipts" means gross receipts minus returns and allowances from sales in California. Examples of California Gross Receipts are the amount shown on line 1c of Schedule F, Form 100 of the California Franchise Tax Board, 1996 revision date, line 3 on Schedule C, Form 1040 of the Internal Revenue Service, 1996 revision date, or for multi-state operations, column (b) on line 3, "total sales" of schedule R-1 of the California Franchise Tax Board, 1996 revision date.

(m) "Commissioner" means a member of the board of commissioners of the California Travel and Tourism Commission, established pursuant to Government Code Section 13995.40.

(n) "Estimated Amount" means for a given fiscal year the sum of the amount estimated by the Office to be (i) payable as Assessments by all Assessed Businesses other than the Passenger Car Rental Industry Segment and (ii) contributed by the State of California general funding.

(o) "Expenditures" shall mean the total amount of dollars budgeted in a given fiscal year to be spent by CTTC, including without limitation utilities, rent, insurance, services, products, goods, advertising, salaries, building equipment, fixed, tangible and intangible assets.

(p) "Exempt Business" means a Business meeting one or both of the following requirements:

(1) The Business is an Exempt Travel Agent/Tour Operator; and/or

(2) The Business is a Public Body.

(q) "Exempt Business Location" means a Business Location meeting one or more of the following:

(1) The Business Location derives less than one percent (1%) of its California Gross Receipts from Travel and Tourism Revenue within Industry Segment(s);

(2) The Business Location derives California Gross Receipts from any of the following Industry Segments within the attractions and recreation Industry Category where the business does not charge an admission fee or gate: museums and art galleries, arts or science center, historical society, planetarium, botanical and zoological gardens, aquarium, animal and reptile exhibit and arboretum;

(3) The Business Location derives Revenue from any Industry Segment(s) in the restaurants and retail Industry Category, where the business activity meets one or more of the following definitions:
(A) Contract feeders serving hospitals, schools, prisons, employee cafeterias and/or restaurants;

(B) Catering vendor trucks serving job sites and other employment locations; and/or

(C) Restaurants on university campuses and military bases; and/or

(4) The Business Location has California Gross Receipts under one million dollars ($1,000,000) for the accounting period listed in the Business' most recent income tax return. If the accounting period is less than twelve (12) months, California Gross Receipts shall be annualized using the formula described in section 5353(d)(2).

(r) "Exempt Revenues" means:

(1) Within the attractions and recreation Industry Category, California Gross Revenue from rentals of the following for more than thirty (30) days: canoes, houseboats, pleasure boats, rowboats, sailboats, surfing equipment and spaces in marine basins and/or yacht basins.

(2) Within the travel and transportation Industry Category, California Gross Revenue from interstate transportation and/or sales of diesel fuel.

(3) Within the travel and transportation Industry Category, California Gross Revenue from regular route intrastate and interstate bus service; provided, however that Exempt Revenues shall not include California Gross Revenue derived from bus service which is of a type that requires authority (whether in the form of a certificate of public convenience and necessity or a permit) to operate as a charter-party carrier of passengers pursuant to Chapter 8 (commencing with Section 5351) of Division 2 of the Public Utilities Code.

(s) "Exempt Travel Agent/Tour Operator" means a Business which meets both of the following requirements:

(1) It derives at least 51% of its California Gross Receipts from one or more of the following Industry Segments: travel agencies and/or tour operator/packager & wholesaler ("Travel Agent"); and

(2) It derives less than twenty percent (20%) of its Travel Agent California Gross Receipts from Travel and Tourism Revenue where the travel occurs within California.

(t) "Industry Category" means the following classifications within the tourism industry:

(1) Accommodations.

(2) Restaurants and retail.

(3) Attractions and recreation.

(4) Transportation and travel services.

(5) Passenger Car Rental Industry.

The definition of each Industry Category is the sum of all Industry Segments contained within that Industry Category. For example, the accommodations Industry Category is the sum of its Industry Segments, including motel, vacation lodges and ski lodges.

(u) "Industry Segment" means those subsets of Industry Categories contained in Section 5352.

(v) "Office" means the Office of Tourism of the State of California, Business, Transportation and Housing Agency that administers the California Travel and Tourism Assessment including processing of all payments. It is also located at 980 9th Street, Suite 480, Sacramento, CA 95814.

(w) "Paid in Full" means the Assessed Business has paid all past and current annual Assessments, late fees and/or penalties due.

(x) "Passenger Car Rental Industry Segment" is defined as those companies renting passenger vehicles at an Airport Location or Accommodation Location in California. Passenger Vehicle is as defined in Section 465 of the California Vehicle Code.

(y) "Public Body" means a public entity or a corporation where a majority of the corporation's board of directors is appointed by a public official or public entity, or serves on the corporation's board of directors by virtue of being elected to public office, or both. As used herein, a "public entity" is an agency, department or instrumentality of the United States, State of California, or any political subdivision thereof. As used herein, a "public official" is an employee of a public body or a person elected to the public body, who serves as a representative of that public body when making the appointment.

(z) "Referendum" means any vote by mailed ballot of measures recommended by the Commission and approved by the Secretary pursuant to Government Code Section 13995.60 and/or 13995.92.

(aa) "Referendum Request" means the method used by Assessed Businesses to place on a Referendum additional Commissioner candidates and/or a different assessment level pursuant to Government Code Section 13995.62 and section 5354.1 of this chapter except for the initial referendum, which shall consist of measures contained in the selection committee report, discussed in Section 13995.30.

(bb) "Revenue" is all paid time and/or mileage charges only, including upgrades, as shown on each concluded Rental Agreement, net of any discount at California Airport Locations and Accommodation Locations. Revenue shall not include "replacement rentals". A "replacement rental" is defined as any rental which is a temporary replacement of an individual's primary vehicle arising from loss of use due to maintenance, repairs, physical damage, or theft.

(cc) "Secretary" means the Secretary of the Business, Transportation and Housing Agency, or his/her designee.

(dd) "Tourism Assessment Form" means the form described in Section 5353.

(ee) "Travel and Tourism Revenue" means California Gross Receipts derived from expenditures to and/or within California by people who (1) travel at least fifty (50) miles from home, one way, for purposes other than commuting to work or school; or (2) have an overnight accommodation as part of the travel, regardless of the distance or purpose traveled. "Home" as used in this definition means the place where the person has resided for the most recent 31 consecutive days.

(ff) "Voluntary Participant" means a Business which participates in the Tourism Assessment Program pursuant to Government Code Sections 13995.49 or 13995.77.

(gg) "Weighted Vote" means a vote equal to the Assessment paid by the Assessed Business; used to determine issues on a Referendum pursuant to Government Code Section 13995.64.

1. New chapter 7.65 (sections 5350-5354) and section filed 1-29-97 as an emergency; operative 1-29-97 (Register 97, No. 5). A Certificate of Compliance must be transmitted to OAL by 5-29-97 or emergency language will be repealed by operation of law on the following day.
2. Amendment of subsection (k)(2) filed 2-24-97 as an emergency; operative 2-24-97 (Register 97, No. 9). A Certificate of Compliance must be transmitted to OAL by 6-24-97 or emergency language will be repealed by operation of law on the following day.
3. Certificate of Compliance as to 1-29-97 and 2-24-97 orders, including amendment of subsections (g), (k)(4) and (o) and of NOTE, transmitted to OAL 3-26-97 and filed 5-6-97 (Register 97, No. 19).
4. Amendment of subsection (d), new subsections (e) and (i) and subsection relettering filed 7-1-97; operative 7-1-97 pursuant to Government Code section 11343.4(d) (Register 97, No. 27).
5. Change without regulatory effect adding new subsections (k)(5) and (l)(3) filed 8-29-97 pursuant to section 100, title 1, California Code of Regulations (Register 97, No. 35).
6. Amendment of subsection (e) filed 12-8-99 as an emergency; operative 12-8-99 (Register 99, No. 50). A Certificate of Compliance must be transmitted to OAL by 4-6-2000 or emergency language will be repealed by operation of law on the following day.
7. Reinstatement of section as it existed prior to 12-8-99 emergency amendment by operation of Government Code section 11346.1(f) (Register 2000, No. 25).
8. Amendment of subsection (e) filed 7-17-2000; operative 7-17-2000 pursuant to Government Code section 11343.4(d) (Register 2000, No. 29).
9. Amendment of section and NOTE filed 8-7-2001; operative 9-6-2001 (Register 2001, No. 32).
10. New subchapter 1 heading and amendment of section and NOTE filed 12-29-2006 as an emergency; operative 1-1-2007 (Register 2006, No. 52). A Certificate of Compliance must be transmitted to OAL by 5-1-2007 or emergency language will be repealed by operation of law on the following day.
11. New subchapter 1 heading and amendment of section and NOTE refiled 4-26-2007 as an emergency; operative 5-2-2007 (Register 2007, No. 17). A Certificate of Compliance must be transmitted to OAL by 8-30-2007 or emergency language will be repealed by operation of law on the following day.
12. Certificate of Compliance as 4-26-2007 order, including further amendment of subsections (f), (w) and (z)-(bb), transmitted to OAL 7-2-2007 and filed 8-13-2007 (Register 2007, No. 33).
13. Amendment of subsection (p)(4), repealer of subsection (y), subsection relettering and new subsection (cc) filed 2-8-2012; operative 3-9-2012 (Register 2012, No. 6).
14. Amendment of subsection (f), new subsection (o) and subsection relettering filed 7-29-2015; operative 10-1-2015 (Register 2015, No. 31).

Note: Authority cited: Section 13995.69, Government Code. Reference: Sections 13995.20, 13995.40, 13995.49, 13995.60, 13995.64, 13995.65.5, 13995.77 and 13995.92, Government Code.

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