CS/CS/HB 3 Summary: Economic Development and Tourism Promotion Accountability

• Authorizes the Auditor General to audit economic development and tourism promotion agencies, with enforcement authority to require compliance with new accountability standards.

• Creates comprehensive operational requirements for economic development agencies including annual financial disclosures by board members, conflict-of-interest protocols, compensation caps, and lodging expense limits ($150/day).

• Establishes new requirements for tourism promotion agencies with similar conflict-of-interest disclosures, compensation restrictions tied to local government officials, and prohibitions on funds benefiting only one business entity.

• Mandates transparency through website publication of all contracts over $5,000, financial reports, board meeting videos, and detailed expenditure records; contracts over $250,000 require 14-day public notice and governing body approval.

• Effective October 1, 2018; violations are misdemeanors of the first degree; allows Governor or Chief Financial Officer to cease distributing tax revenues to noncompliant agencies.