Kentucky Administrative Regulations, Chapter 1, Section 300 KAR 1:010 - Procedure for Regional Marketing and Matching Funds Program | Kentucky Administrative Regulations

Section 1. of Definitions.

(1) "Designated Marketing Organization" means the organization designated by a county's fiscal court, such as Chamber of Commerce or Fiscal Court, to receive Regional Marketing and Matching funds when no Convention & Visitors Bureau or Tourism Commission exists in the county.

(2) "Number of rooms" means total number of rooms within a county or city for which transient room tax is collected from an overnight stay at the property.

(3) "Program Year" means the Regional Marketing and Matching Funds Program Year that:

(a) Runs for a fiscal year;

(b) Has one (1) application deadline of June 1; and

(c) Has two (2) final reimbursement deadlines:

1. February 1 for projects completed July through December; and

2. August 1 for projects completed January through June.

(4) "Promotional project" means a project that:

(a) Promotes tourism opportunities throughout one (1) of the nine (9) tourism regions designated by the Department of Tourism as a tourism region.

Section 2. Subject to the availability of funds, the Regional Marketing and Matching Funds Program shall provide financial and marketing assistance for projects that are in direct support of the promotion and marketing efforts of a tourism attraction, event, or geographic area.

Section 3. Tourism Region Committees.

(1) To qualify for regional marketing and matching funds, a tourism region shall establish a tourism region committee.

(a) Each tourist and convention commission established pursuant to KRS 91A.350 in a tourism region shall appoint a person to serve on the tourism region committee.

(b) If a tourism and convention commission has not been established pursuant to KRS 91A.350 by the local governing bodies of a county, or cities within a county, in a tourism region, the county judge executive of each county shall appoint a person to serve on the tourism region committee.

(c) Counties with multiple tourism commissions are able to have a representative from each tourism commission on the committee.

(2) A member of the tourism region committee:

(a) Shall serve a two (2) year term; and

(b) May be reappointed for successive two (2) year terms.

(3) A tourism region committee shall be incorporated as a nonprofit, nonstock corporation, pursuant to KRS 273.161 through 273.405.

(4) A tourism region committee shall:

(a) Elect a chairperson, vice chairperson, secretary, and treasurer; and

(b) Establish bylaws that shall include:

1. Purpose, mission, and limitations of committee;

2. Composition and duties of the board of directors and officers;

3. Procedures for election, removal of directors and officers, and filling of vacancies;

4. When meetings shall be held;

5. Quorum and voting requirements;

6. Financial and contractual procedures;

7. Preparation of annual budget and financial report; and

8. Procedure for amendment of bylaws.

Section 4. Tourism Regions. Nine (9) tourism regions, as specified on the Tourism Regions Map, are established, as follows:

(1) Tourism Region 1, Western Lakes and Rivers, shall consist of the following counties:

(a) Ballard;

(b) Caldwell;

(c) Calloway;

(d) Carlisle;

(e) Christian;

(f) Crittenden;

(g) Fulton;

(h) Graves;

(i) Hickman;

(j) Livingston;

(k) Lyon;

(l) Marshall;

(m) McCracken;

(n) Todd; and

(o) Trigg.

(2) Tourism Region 2, Green River, shall consist of the following counties:

(a) Daviess;

(b) Hancock;

(c) Henderson;

(d) Hopkins;

(e) McLean;

(f) Muhlenberg;

(g) Ohio;

(h) Union; and

(i) Webster.

(3) Tourism Region 3, Cave, shall consist of the following counties:

(a) Allen;

(b) Barren;

(c) Butler;

(d) Edmonson;

(e) Hart;

(f) Logan;

(g) Metcalfe;

(h) Monroe;

(i) Simpson; and

(j) Warren.

(4) Tourism Region 4, Louisville-Lincoln, shall consist of the following counties:

(a) Breckinridge;

(b) Bullitt;

(c) Grayson;

(d) Hardin;

(e) Henry;

(f) Jefferson;

(g) Larue;

(h) Marion;

(i) Meade;

(j) Nelson;

(k) Oldham;

(l) Shelby;

(m) Spencer;

(n) Trimble; and

(o) Washington.

(5) Tourism Region 5, Southern Kentucky Lakes and Rivers, shall consist of the following counties:

(a) Adair;

(b) Casey;

(c) Clinton;

(d) Cumberland;

(e) Green;

(f) McCreary;

(g) Pulaski;

(h) Russell;

(i) Taylor; and

(j) Wayne.

(6) Tourism Region 6, Northern Kentucky, shall consist of the following counties:

(a) Boone;

(b) Bracken;

(c) Campbell;

(d) Carroll;

(e) Fleming;

(f) Gallatin;

(g) Grant;

(h) Kenton;

(i) Lewis;

(j) Mason;

(k) Owen;

(l) Pendleton; and

(m) Robertson.

(7) Tourism Region 7, Bluegrass, shall consist of the following counties:

(a) Anderson;

(b) Bourbon;

(c) Boyle;

(d) Clark;

(e) Fayette;

(f) Franklin;

(g) Garrard;

(h) Harrison;

(i) Jessamine;

(j) Lincoln;

(k) Madison;

(l) Mercer;

(m) Nicholas;

(n) Scott; and

(o) Woodford.

(8) Tourism Region 8, Eastern Highlands-North, shall consist of the following counties:

(a) Bath;

(b) Boyd;

(c) Carter;

(d) Elliott;

(e) Floyd;

(f) Greenup;

(g) Johnson;

(h) Lawrence;

(i) Magoffin;

(j) Martin;

(k) Menifee;

(l) Montgomery;

(m) Morgan;

(n) Pike; and

(o) Rowan.

(9) Tourism Region 9, Eastern Highlands-South, shall consist of the following counties:

(a) Bell;

(b) Breathitt;

(c) Clay;

(d) Estill;

(e) Harlan;

(f) Jackson;

(g) Knott;

(h)Knox;

(i) Laurel;

(j) Lee;

(k) Leslie;

(l) Letcher;

(m) Owsley;

(n) Perry;

(o) Powell;

(p) Rockcastle;

(q) Whitley; and

(r) Wolfe.

Section 5. Regional Marketing and Matching Funds Program Application and Applicants.

(1) An application may be submitted by an organization that is a tourism region, a convention and visitors' bureau, a tourism commission, or a designated marketing organization that is a nonprofit 501C(3) or 501C(6) tourism entity prior to June 1 for eligible:

(a) Projects that are listed and will be completed during the program year;

(b) Expenses totaling at least $1,000 for a project, or several projects;

(c) Promotion projects in markets outside local area;

(d) Meet the eligibility requirements of this administrative regulation; and

(e) Complete and submit the Affidavit for Bidders, Offerors, and Contractors.

(2) An applicant shall submit proof of nonprofit status with the application.

(3) A local tourism commission shall submit a copy of the ordinance establishing the commission and one (1) of the following:

(a) Federal or State determination of tax exempt status;

(b) A copy of the organization's W9; or

(c) A letter from the fiscal court, including the fiscal court's Federal ID number, stating the applying organization is part of city or county government.

(4) A newly established Tourist Commission shall:

(a) Not be eligible for funding for two (2) years;

(b) Have at least a part-time paid director;

(c) Have a source of funding; and

(d) Have an established budget and marketing plan.

(5) An applicant shall not be affiliated with:

(a) A state agency;

(b) A state agency nonprofit affiliate;

(c) A federal agency;

(d) An organization that receives funds from other state agencies for the purpose of sponsorship or advertising;

(e) An organization that receives line item funding through the Executive Budget;

(f) A statewide organization; or

(g) An organization that receives state or federal grants in order to match the Regional Marketing and Matching Funds Program.

(6) An applicant shall be a Kentucky based organization.

Section 6. Approval of Applications.

(1) The state program manager shall review each application and determine the applicant's eligibility for reimbursement in accordance with applicable Kentucky Revised Statutes and this administrative regulation;

(2) The state program manager or assistant program manager shall hold allocation meetings in each of the nine (9) tourism regions with the tourism region committee for the region to:

(a) Discuss the Regional Marketing and Matching Funds Program;

(b) Review and establish priorities for the region;

(c) Vote and approve the distribution of funds to organizations within the region; and

(d) Review and discuss the tourism region application if submitted.

(3) The state program manager shall base the allocation determination on:

(a) A formula derived from county economic impact figures and number of rooms within the county; and

(b) The availability of funds.

(4) The state program manager shall mail each applicant:

(a) A Project Agreement form stating the amount of the state funds allocation for the program year; or

(b) A letter stating why an applicant's projects have been denied funding; and

(c) A copy of the application submitted by each applicant, indicating approved and disapproved projects.

(5) An applicant shall sign and return the Project Agreement form to the state program manager by the dates mandated in Section 1 of this administrative regulation.

Section 7. Reimbursement Percentages and Requirements.

(1) Convention and visitor bureaus, tourism commissions, and designated marketing organizations shall be eligible to receive funding.

(2) Multiple tourism commissions within a county and distribution of funds.

(a) After the county allocation has been determined, a formula calculating the number of rooms located within its city will be used to determine individual tourist commission funding.

(b) If there is less than twenty-five (25) percent of rooms within a city the tourism commission will automatically be eligible for twenty-five (25) percent of the allotment.

(3) Reimbursement Percentage of eligible cost for Kentucky Department of Tourism cooperative opportunities.

(a) Up to ninety (90) percent of the costs of an eligible co-op project may be available.

(b) Up to seventy-five (75) percent of the cost with participation with selected vendor outside of co-ops may be available.

(4) Reimbursement percentage of eligible cost for promotional projects other than cooperative opportunities.

(a) Up to eighty (80) percent of the costs for promotional projects may be available to a tourism region.

(b) Up to fifty (50) percent of the costs of an eligible promotional project may be available to all applicants not specified in paragraph (a) of this subsection.

(5) Convention sponsorship or a bid fee that guarantees room nights within the state may be reimbursed up to eighty (80) percent of the cost.

(6) A new event that has been brought to the state through a sponsorship or bid fee may be reimbursed up to seventy (70) percent of the cost. Recurring events may be reimbursed up to fifty (50) percent of the cost.

(7) Applicants shall be eligible for reimbursement for expenditures that do not exceed the amount allocated by the Regional Marketing and Matching Funds Program.

(8) Requests for reimbursement shall not be made unless:

(a) At least $1,000 has been expended; or

1. Applicant's original estimated expenses fall under $1,000 within a program year and can be submitted to utilize an applicant's allotment; or

2. Applicant has submitted reimbursements through program year and remaining amount available was under $1,000.

(b) Projects were included on the application or amendments had prior approval from program manager;

(c) Projects were compliant with the eligibility and reimbursement requirements; and

(d) Projects have been completed.

(9) A request for reimbursement shall be made on the Reimbursement Request form which shall:

(a) Be submitted to the state program manager by February 1 or August 1, with applicants being permitted to submit multiple reimbursement requests for completed projects by these same final reimbursement deadlines;

(b) Be signed; and

(c) Include the federal identification number of the organization.

(10) Checks submitted as documentation shall be issued by the organization that applied for regional marketing and matching funds.

(11) The following information shall be attached to the Reimbursement Request form:

(a) A copy of each vendor's invoice;

(b) A copy of the front and back of each canceled check;

(c) Proof of payment of all expenditures;

(d) For tourism region projects:

1. Proof of payment of twenty (20) percent of expenditures;

2. Proof of payment of the remaining eighty (80) percent of expenditures shall be submitted after receipt of marketing and matching funds; and

3. Completion of Regional Ad Sale form, if ads were sold in the region visitor's guide.

(e) Four (4) completed brochures;

(f) Four (4) publications or videos, a copy of invoices, with a breakdown of layout and design costs, the number of copies printed, and other related expenses;

(g) If printing costs exceed $1,000, a copy of three (3) written bids;

(h) One (1) duplicate of a completed video, CD, or DVD;

(i) One (1) original tear sheet of advertisements as they appeared in the print media including date of issue;

(j) One (1) typed transcript or a tape of a radio, television, or videotape, CD, or DVD travelogue advertisement;

(k) A copy of a press kit;

(l) Documentation of the distance of media from the event, attraction, or area promoted;

(m) One (1) photograph of a completed billboard and signage rentals;

(n) Documentation of the location and dates of service for billboard and signage rentals;

(o) Documentation of location, distribution routes, and dates for distribution services;

(p) Documentation of postage expenses, including postage invoices or paid receipts, list of names, addresses, and material mailed (for regional committees only);

(q) Verification of attendance at consumer travel shows or group tour marketplaces, including signed agreements or contracts; and

(r) Verification of regional travel show or group tour marketplace per diem, including a completed and signed Tourism Region Per Diem reimbursement form.

Section 8. Types of Promotional Projects.

(1) The types of promotional projects eligible for funding shall be:

(a) Tourism publications, CDs, DVDs, and videos;

(b) Media advertisements and press kits;

(c) Billboards and signage;

(d) Brochure distribution services;

(e) Postage and freight expenses (only available to regional committee);

(f) Meeting and convention advertising expenses;

(g) Group tour marketplace, meeting and conventions, and consumer travel show expenses;

(h) Sponsorship or a bid fee of tourism trade shows, conventions, sporting events and other events;

(i) Web site design; and

(j) Research studies and analysis.

(2) Other projects not listed above may be considered on a case by case basis if they are consistent with the purpose of the Regional Marketing and Matching Funds Program.

Section 9. Requirements for Tourism Publications, CDs, DVDs, Video Projects, Allowable Costs, and Bid Requirements.

(1) Types of travel related brochures, CDs, DVDs, and videos that highlight the attractions, facilities, meeting and convention, sports-marketing capabilities, and special events that encourage travelers to stop and visit, shall be eligible for reimbursement and include:

(a) Visitor's guides;

(b) General festival brochures;

(c) Group tour publications;

(d) Sports Publications;

(e) Meeting or convention publications; and

(f) Brochures, videos, CDs, and DVDs promoting tourist attractions open to the public for regular hours.

(2) Costs that exceed the advertising revenue shall be eligible for reimbursement if the expenditures were for brochures or other publications.

(3) Brochures, other publications, and videos shall include:

(a) A four (4) color cover, if applicable, and a distribution plan, in accordance with the distribution sources of Section 10 of this administrative regulation, to receive reimbursement for print items;

(b) On the front or back cover the Kentucky state official tourism brand, according to the Graphics Standards, obtained from the Kentucky Department of Tourism; and A tag line stating: "Paid in Part by the Kentucky Department of Tourism".

(4) An advertisement may be sold to a business and included in a tourism region brochure to supplement the cost of a tourism region brochure if the ratio of advertising to editorial space does not exceed 2:3.

(5) Printing or publications shall:

(a) Require three (3) written bids if the total printing cost of a publication, excluding layout and design expenses, exceeds $1,000.

(b) Not require bids for reprints made with only minor changes.

(c) Require that a publication, video, CD, or DVD be submitted to the program manager for review and approval, prior to completion.

(6) The Department of Tourism reserves the right to deny reimbursement for any brochure submitted that does not follow guidelines. Questions regarding layout, design, or necessity will be reviewed by the Department of Tourism for final approval or denial.

(7) Only one (1) visitors guide per county is eligible unless there are multiple convention and visitors bureau offices within the county; and if so, one (1) guide per office is eligible. If more than one (1) attraction or festival brochure is requested for reimbursement, the applicant shall give an explanation as to why individual brochures are needed.

Section 10. Distribution Plan and Services. Funds available for brochure distribution expenses. A distribution plan shall be developed for the distribution of brochures to potential tourists with the following distribution sources:

(1) Tourist Commissions;

(2) State and local welcome centers;

(3) State Travel Department;

(4) Consumer travel shows;

(5) Meeting planning expos;

(6) Marketplaces; and

(7) Brochure distribution rack services.

Section 11. Advertisements and Press Kits.

(1) A tourism advertisement may be placed:

(a) In a newspaper, magazine, or other periodical;

(b) On the radio or television;

(c) On video tape, CD, or DVD travelogue;

(d) On electronic media such as the Internet;

(e) On sports media; or

(f) With meeting or convention media outlets.

(2) Except for advertisements in conjunction with a Department of Tourism co-op, tourism advertisements shall include the official state advertising brand according to the Graphic Standards established by the Kentucky Department of Tourism.

(3) Costs for tourism advertisements, including media time, production costs, and placement, may be eligible for reimbursement.

(4) Major media markets and reimbursement percentages.

(a) Advertisement costs will qualify if the advertisement is located within a fifty (50) mile radius of a major media market. The reimbursement may be up to twenty-five (25) percent of media costs.

(b) Major media markets shall be:

1. Cincinnati, Ohio;

2. Evansville, Indiana;

3. Huntington, West Virginia;

4. Louisville, Kentucky;

5. Lexington, Kentucky;

6. Paducah, Kentucky; and

7. Bowling Green, Kentucky.

(c) Except as provided by this subsection, advertising costs with non-major media markets located within a fifty (50) mile radius shall not be eligible for reimbursement.

(d) Advertisement costs shall not be eligible for reimbursement if incurred for advertisements that are sponsored or advertised by tourism organizations in tourism region brochures that have been allocated state marketing and matching funds or funded through other cooperative advertising programs of the Kentucky Department of Tourism.

(e) Costs associated with media press kits and media relations programs shall be reimbursable.

Section 12. Billboards and Signage.

(1) Rental of a billboard, tourist-oriented directional signage (TODS), fifth legends or attraction logos, including related artwork, design, and production costs shall be eligible for reimbursement if it:

(a) Promotes specific attractions, events, availability of food, lodging, camping or other services;

(b) Is placed on interstates or other major access highways outside a twenty (20) mile radius; and

(c) Does not consist solely of language welcoming a visitor to a community or region.

(2) A photo of the billboard shall be submitted with reimbursement request.

(3) The Department of Tourism brand shall be included on billboards.

(4) Cost associated with construction of any permanent signage structure is not reimbursable.

(5) Only new signs shall be eligible for reimbursement; previously existing signs or maintenance of signs shall not be eligible for reimbursement.

Section 13. Postage and Freight. Only region committees can be reimbursed for postage, freight, and mailing firm fees incurred in:

(1) Response to tourist requests, media or group tour operator inquiries; or

(2) Shipping tourism literature and displays for use at consumer travel shows, group tour marketplaces, or sports-marketing expenses.

Section 14.

(1) Consumer travel show, group tour marketplace, meeting or convention trade show, sports marketing, or exposition expenses shall qualify if they:

(a) Are promoting an attraction, event, or geographic area;

(b) Are not a county fair or festival;

(c) Are not expended for booth space costs at industrial solicitation events;

(d) Are not registration expenses to attend a conference or meeting.

(e) Are expended for the purchase and maintenance of exhibits such as display assembly, artwork, transparencies, photographs, brochure racks, consumer travel show, or group tour marketplace booth space, or furniture rental; or

(f) Are rental fees for equipment and material.

(2) If membership is required to participate in advertising or promotional ventures, a tourism region shall be eligible for reimbursement of membership dues for major tourism associations.

(3) A tourism region shall be eligible for a seventy (70) dollar per diem, for a maximum of two (2) persons who serve as staff for tourism region travel booths at a consumer travel show or group tour marketplace if:

(a) Booths are staffed continuously during event hours; and

(b) The header, transparencies, photos, and regional or local tourism brochures are representative of the tourism region or local areas within the tourism region.

(c) Transportation costs related to a tourism region's attendance at a consumer travel show or group tour marketplace shall not be eligible for reimbursement.

Section 15. Web site.

(1) Region committees are eligible to claim reimbursement for the expenses of design, hosting, and maintenance of a regional tourism website.

(2) Applicants are eligible to claim reimbursement for the expenses for the design of tourism related websites.

(3) An applicant's home page shall include the current state tourism branding with a link to the Department of Tourism Web site and regional website.

(4) Except for regional committees, Web sites that contain paid advertisements shall not be eligible for reimbursement.

Section 16. Sponsorship or bid Fees of Tourism Trade Shows, Conventions, and Other Events.

(1) Sponsorship of tourism trade shows, conferences, and events are eligible for reimbursement if:

(a) The sponsorship opportunity may create an economic impact for the state;

(b) The sponsorship is for overall convention partners or a total event sponsor;

(c) The event is brought to the county or state by way of sponsorship or bid fee; or

(d) The sponsorship is for a meal function or educational sessions at a trade show or convention.

(2) Expenditures that shall not be covered include:

(a) In-kind amenities;

(b) Expenses for hospitality events that include alcohol;

(c) Gratuities, service charges, and tips;

(d) Tourism industry events such as:

1. Kentucky Tourism Council; and

2. Kentucky Association of Convention & Visitor Bureaus;

(e) In-state or local events and conferences; and

(f) Kentucky Association meetings and conferences.

(3) Convention sponsorship or bid fee reimbursement percentages. A sponsorship or bid fee that guarantees room nights within the state may be reimbursed up to eighty (80) percent of costs.

(4) Event sponsorship or bid fee reimbursement percentages:

(a) A new event or sporting event that is brought to the state through a sponsorship or bid fee may be reimbursed up to seventy (70) percent of the cost; and

(b) Recurring events brought to the state through a sponsorship or bid fee may be reimbursed up to fifty (50) percent of the cost.

Section 17. Research.

(1) Marketing and matching funds may be used for research and analysis. Use of funds for these purposes shall have a clear relationship to planning and executing tourism marketing and promotion.

(2) Economic impact research and research related to future capital projects shall not be allowed..

(3) To be engaged in research and analysis activity, outside firms, organizations, or individuals shall:

(a) Be in operation at least two (2) years, if a firm or organization;

(b) Have at least five (5) years of relevant experience, if an individual;

(c) Provide at least three (3) references; and

(d) Demonstrate expertise in the type of services to be rendered.

(4) Research funded pursuant to this Section shall be approved in advance.

Section 18. Ineligible Project and Expenses. Expenses for the following items shall not be eligible for reimbursement:

(1) Industrial incentive brochures;

(2) General community relocation and development brochures;

(3) City or county maps or directories that list businesses and services;

(4) Programs;

(5) Playbills;

(6) Posters;

(7) Table tents;

(8) Membership and subscription solicitation;

(9) Registration and entry forms;

(10) Event and contest category or regulation material;

(11) Quick print materials such as flyers, handbills, and circulars;

(12) Entertainment;

(13) Bumper stickers, banners, flags, postcards, lapel pins, or bags, unless requested in advance by a tourism region;

(14) Prizes, trophies, plaques, decorations, paint supplies, and poster board;

(15) Items for resale;

(16) Amounts paid for Kentucky sales tax;

(17) Stationery, letterhead, envelopes, general office supplies and materials, unless for a tourism region organization;

(18) Salaries or other compensation for the staff or personnel of a tourism region committee;

(19) General operating and administrative costs;

(20) Finance charges or late payment fees;

(21) In-kind contributions, which also shall not be included as part of an applicant's match; and

(22) Expenditures in violation of law.

Section 19. Forfeited and Unused Funds.

(1) Funds allocated to an approved project shall be forfeited if:

(a) Documentation required by the provisions of this administrative regulation is not submitted timely;

(b) An approved project does not materialize; or

(c) A completed project did not remain in compliance with program requirement;

(2) At the end of a Regional Marketing and Matching Funds Program year, forfeited and unused funds shall remain in the Tourism, Meeting, and Convention Fund, to be used by the Department of Tourism for advertising and marketing promotions.

Section 20. Audits. The department may request the State Auditor to audit a tourism project governed by this administrative regulation.

Section 21. Incorporation by Reference.

(1) The following material is incorporated by reference:

(a) "Regional Marketing and Matching Funds Program Application", December 2019;

(b) "Application Project Description Form", August 2019;

(c) "Regional Marketing and Matching Funds Program Reimbursement Request", December 2019;

(d) Reimbursement Project Description Form", August 2019;

(e) "Regional Ad Sale Form", one (1) page, August 2019;

(f) "Tourism Region Per Diem Reimbursement Form", August 2019; and

(g) "Tourism Regions Map", 1996; and

(h) "Designated Marketing Organization", August 2019.

(2) This material may be inspected, copied, or obtained, subject to applicable copyright law, from the Department of Tourism, Division of Tourism Services, 500 Mero Street, 5th Floor, Frankfort Kentucky 40601, phone (502) 564-4930, fax (502) 564-5695, Monday through Friday, 8 a.m. to 4:30 p.m. This material is also available at the Department of Tourism's Web site at www.kytourism.com/industry/mfunds.

Kentucky Administrative RegulationsTitle 300 - TOURISM, ARTS AND HERITAGE CABINETChapter 1 - Department of Travel DevelopmentSection 300 KAR 1:010 - Procedure for Regional Marketing and Matching Funds Program

Kentucky Administrative Regulations
Title 300 - TOURISM, ARTS AND HERITAGE CABINET
Chapter 1 - Department of Travel Development
Section 300 KAR 1:010 - Procedure for Regional Marketing and Matching Funds Program