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F I S C A L I M P A C T R E P O R T

SPONSOR Varela

ORIGINAL DATE

LAST UPDATED

2/01/06

HB 327

SHORT TITLE Hospitality Training Certification Program

SB

ANALYST Earnest

APPROPRIATION (dollars in thousands)

Appropriation

Recurring

or Non-Rec

Fund

Affected

FY06

FY07

$150.0

Recurring

General Fund

(Parenthesis ( ) Indicate Expenditure Decreases)

Relates to Senate Bills 55 and 276 and House Bill 168.

SOURCES OF INFORMATION

LFC Files

Responses Received From

Tourism Department (TD)

SUMMARY

Synopsis of Bill

House Bill 327 appropriates $150 thousand from the general fund to the Tourism Department to

create and implement a pilot program for statewide hospitality and customer training certifica-

tion.

FISCAL IMPLICATIONS

The appropriation of $150 thousand contained in this bill is a recurring expense to the general

fund. Any unexpended or unencumbered balance remaining at the end of fiscal year 2007 shall

revert to the general fund.

SIGNIFICANT ISSUES

According to the Tourism Department, there is no statewide hospitality training program. The

pilot program will address a significant state-wide need for improved customer service and

broader understanding of the importance of the tourism industry to the state’s economy. The

Tourism Department strongly supports this legislation.

House Bill 327 – Page 2

PERFORMANCE IMPLICATIONS

One of TD’s primary performance measures is tourism market share. A successfully trained

hospitality workforce might significantly impact market share by boosting return business, ex-

tended stays and personal referrals. Long-term effectiveness measures also include increased

hotel occupancy rates, and decreased employee turnover with improved attitude and performance

toward visitors.

ADMINISTRATIVE IMPLICATIONS

The Tourism Department would contract with an industry organization to implement this pilot

program.

CONFLICT, DUPLICATION, COMPANIONSHIP, RELATIONSHIP

HB 327 relates to SB 55, SB 276, and HB 168, which offer hospitality training in public schools

or higher education.

OTHER SUBSTANTIVE ISSUES

According to the Tourism Department, many other states have programs similar to the proposed

pilot program, which is modeled after Oregon’s highly successful “Q” program. The “Q” pro-

gram is administered by the Oregon Tourism Commission, Oregon’s equivalent to NMTD.

POSSIBLE QUESTIONS

Who would pay for the training. Does this appropriation provide funding for employee training.

Where would the training take place.

BE/yr