ENROLLED
COMMITTEE SUBSTITUTE
FOR
H. B. 4210
[Passed March 10, 2006; in effect from passage.]
AN ACT
to amend and reenact article 10, chapter 64 of the code of
West Virginia, 1931, as amended; all relating generally to the
promulgation of administrative rules by the Department of
Commerce and the procedures relating thereto; legislative
mandate or authorization for the promulgation of certain
legislative rules by various executive or administrative
agencies of the state; authorizing certain of the agencies to
promulgate certain legislative rules in the form that the
rules were filed in the State Register; authorizing certain of
the agencies to promulgate certain legislative rules with
various modifications presented to and recommended by the
Legislative Rule-Making Review Committee; authorizing certain
of the agencies to promulgate certain legislative rules as
amended by the Legislature; authorizing certain of the
agencies to promulgate certain legislative rules with various
modifications presented to and recommended by the Legislative Rule-Making Review Committee and as amended by the
Legislature; authorizing the Division of Forestry to
promulgate a legislative rule relating to ginseng; authorizing
the Office of Miners Health, Safety and Training to promulgate
a legislative rule relating to safety provisions for clearing
crews; authorizing the Division of Natural Resources to
promulgate a legislative rule relating to commercial
whitewater outfitters; authorizing the Division of Natural
Resources to promulgate a legislative rule relating to
boating; authorizing the Division of Natural Resources to
promulgate a legislative rule relating to the rules governing
the public use of West Virginia State Parks, State Forests and
State Wildlife Management Areas under the Division;
authorizing the Division of Natural Resources to promulgate a
legislative rule relating to terms defining the terms to be
used concerning all hunting and trapping rules; authorizing
the Division of Natural Resources to promulgate a legislative
rule relating to wild boar hunting; authorizing the Division
of Natural Resources to promulgate a legislative rule relating
to special waterfowl hunting; authorizing the Division of
Natural Resources to promulgate a legislative rule relating to
falconry; authorizing the Division of Natural Resources to
promulgate a legislative rule relating to lifetime hunting,
trapping and fishing licenses; authorizing the Division of Natural Resources to promulgate a legislative rule relating to
miscellaneous permits and licenses; authorizing the Division
of Labor to promulgate a legislative rule relating to the West
Virginia Manufactured Housing Construction and Safety
Standards Board; authorizing the Division of Labor to
promulgate a legislative rule relating to nurse overtime
complaints; and authorizing the Division of Tourism to
promulgate a legislative rule relating to the Direct
Advertising Grants Program.
Be it enacted by the Legislature of West Virginia:

That article 10, chapter 64 of the code of West Virginia,
1931, as amended, be amended and reenacted to read as follows:
ARTICLE 10. AUTHORIZATION FOR BUREAU OF COMMERCE TO PROMULGATE
LEGISLATIVE RULES.
§64-10-1. Division of Forestry.

The legislative rule filed in the State Register on the
twenty-ninth day of July, two thousand five, authorized under the
authority of section three, article one-a, chapter nineteen of this
code, modified by the Division of Forestry to meet the objections
of the Legislative Rule-Making Review Committee and refiled in the
State Register on the eighteenth day of October, two thousand five,
relating to the Division of Forestry (Ginseng, 22 CSR 1), is
authorized, with the following amendment:

On page six, by striking out subsection 13.1 in its entirety and renumbering the remaining subsections.
§64-10-2. Office of Miners Health, Safety and Training.

The legislative rule filed in the State Register on the
sixteenth day of March, two thousand five, authorized under the
authority of section six, article one, chapter twenty-two-a of this
code, modified by the Office of Miners Health, Safety and Training
to meet the objections of the Legislative Rule-Making Review
Committee and refiled in the State Register on the tenth day of
June, two thousand five, relating to the Office of Miners Health,
Safety and Training (Safety provisions for clearing crews, 56 CSR
2), is authorized, with the following amendments:

On page twelve, section twenty-one, following subsection 21.2,
by inserting the following:

"21.3. The employer shall provide annual continuing training
of at least eight hours covering the subjects listed in subdivision
21.1.b for each employee, including supervisors, at no cost to the
employee."
§64-10-3. Division of Natural Resources.

(a) The legislative rule filed in the State Register on the
twenty-ninth day of July, two thousand five, authorized under the
authority of section twenty-three-a, article two, chapter twenty of
this code, modified by the Division of Natural Resources to meet
the objections of the Legislative Rule-Making Review Committee and
refiled in the State Register on the seventeenth day of October, two thousand five, relating to the Division of Natural Resources
(Commercial whitewater outfitters, 58 CSR 12), is authorized.

(b) The legislative rule filed in the State Register on the
twenty-ninth day of July, two thousand five, authorized under the
authority of sections thirteen, twenty-two, twenty-two-a and
twenty-three, article seven, chapter twenty of this code, modified
by the Division of Natural Resources to meet the objections of the
Legislative Rule-Making Review Committee and refiled in the State
Register on the seventeenth day of October, two thousand five,
relating to the Division of Natural Resources (Boating, 58 CSR 25),
is authorized.

(c) The legislative rule filed in the State Register on the
twenty-ninth day of July, two thousand five, authorized under the
authority of section seven, article one, chapter twenty of this
code, modified by the Division of Natural Resources to meet the
objections of the Legislative Rule-Making Review Committee and
refiled in the State Register on the eighteenth day of October, two
thousand five, relating to the Division of Natural Resources
(Public use of West Virginia State Parks, State Forests and State
Wildlife Management Areas under the Division of Natural Resources,
58 CSR 31), is authorized with the amendments set forth below:

On page one, subsection 1.1, after the words, "Division of
Natural Resources" by inserting the words "Parks and Recreation
Section";

On page three, subsection 2.21, after the words "Chief Logan,"
by changing the comma to a colon, striking out "except in the" and
inserting following: "Provided, That beer, wine and alcoholic
beverages may be served in the restaurant,";

On page three, subsection 2.21, after the words "conference
center" by inserting the words "without prior written authorization
from the Director";

And,

On page four, subsection 2.21, after the words "prohibited by
posted signs" by changing the period to a colon and inserting the
following: "Provided, That any person, group or association
sponsoring a private party at the multi-purpose log barn at
Prickett's Fort State Park may provide beer, wine, liquor and all
other alcoholic beverages for guests at a private party as long as
the party is not open to the general public."

(d) The legislative rule filed in the State Register on the
twenty-ninth day of July, two thousand five, authorized under the
authority of section seven, article one, chapter twenty of this
code, modified by the Division of Natural Resources to meet the
objections of the Legislative Rule-Making Review Committee and
refiled in the State Register on the seventeenth day of October,
two thousand five, relating to the Division of Natural Resources
(Terms defining the terms to be used concerning all hunting and
trapping rules, 58 CSR 46), is authorized, with the following amendment:

On page two, subsection 2.10, after the words "Individual
Permanently Disabled in the Lower Extremities" by striking out the
remainder of subsection 2.10 and inserting in lieu thereof the
following: "means an individual who is permanently and totally
disabled due to paralysis or disease in the lower half of the body,
which makes it impossible to ambulate successfully more than two
hundred feet without assistance".

(e) The legislative rule filed in the State Register on the
twenty-ninth day of July, two thousand five, authorized under the
authority of section seven, article one, chapter twenty of this
code, relating to the Division of Natural Resources (Wild boar
hunting, 58 CSR 52), is authorized.

(f) The legislative rule filed in the State Register on the
twenty-ninth day of July, two thousand five, authorized under the
authority of section seven, article one, chapter twenty of this
code, relating to the Division of Natural Resources (Special
waterfowl hunting, 58 CSR 58), is authorized.

(g) The legislative rule filed in the State Register on the
twenty-ninth day of July, two thousand five, authorized under the
authority of section seven, article one, chapter twenty of this
code, relating to the Division of Natural Resources (Miscellaneous
permits and licenses, 58 CSR 64), is authorized, with the following
amendments:

On page four, subsection 3.6, by striking out the words "A
pubic hearing will be conducted" and inserting in lieu thereof the
words "The Division of Natural Resources will conduct a public
hearing";

On page four, subsection 3.7, after the period, by inserting
the following: "If the chief accepts a recommendation to deny the
granting of a permit or license, he must notify the applicant of
the denial and the reasons therefor." and by striking out
subdivision 3.7.1 in its entirety;

On page four, subsection 4.1, by striking out the words
"Except as provided in Section 4.1.1 of this rule, all" and
inserting in lieu thereof the words "A commercial shooting preserve
license issued under W. Va. Code §20-2-54 expires on June 30 of the
fiscal year of issue. All other";

On page four, subsection 4.1, by striking out the word "will";

On page four, by striking out subdivision 4.1.1 in its
entirety;

On page five, subsection 5.3, by striking out the word "as";

On page five, subsection 6.2, by striking out "A captive deer
facility must be inspected by both Division of Natural Resources,
Wildlife Resources and Law Enforcement personnel and an inspection
form completed." and inserting in lieu thereof the following:
"Personnel from both the Division of Natural Resources, Wildlife
Resources Section and the Division of Natural Resources, Law Enforcement Section will inspect captive cervid facilities and
complete an inspection form.";

On page eleven, subsection 7.4, by striking out the word
"will";

On page eleven, subsection 7.4, by striking out the words "or
not the license" and inserting in lieu thereof the word "it";

On page eleven, subsection 7.4.1, by striking out "There shall
be a" and inserting in lieu thereof "The";

On page eleven, subsection 7.4.1, by striking out "of" and
inserting in lieu thereof "is";

On page eleven, subsection 7.4.1, by adding the following
sentence at the end of the subdivision: "The fee for renewal of a
captive cervid facility license is $250.";

On page eleven, subdivision 7.4.2, by striking out the words
"A pubic hearing will be conducted" and inserting in lieu thereof
the words "The Division of Natural Resources will conduct a public
hearing";

On page eleven, by striking out subdivision 7.4.3 in its
entirety and inserting in lieu thereof the following:

"7.4.3. "A unique and permanent identifying license number,
corresponding to the number assigned to the premises by the
National Animal Identification System, shall be issued to each
licensed captive cervid facility. The applicant must supply this
number to the West Virginia Division of Natural Resources with the application for a captive cervid facility license.";

On page eleven, subdivision 7.4.5, by striking out the words
"direct or";

On pages eleven and twelve, by striking out all of subdivision
7.4.7 and by renumbering the remaining subdivisions;

On page twelve, subdivision 7.4.8, by striking out the words
"posts must be spaced at 20 feet maximum for T post or 30 feet
maximum for rigid post; brace posts must be buried at least 4 feet
in rocky soil and 6 feet in sandy soil or concrete must be used to
provide equal stability; line posts must be buried to 3 feet" and
inserting in lieu thereof the words "posts must be properly spaced
and anchored";

On page twelve, subdivision 7.4.13, by striking out the word
"daily";

On page twelve, subdivision 7.4.13, after the word "pests" by
striking out the words "Food and water containers shall be kept
clean. Hay, straw or other bedding material must be replaced as
needed. All waste must be disposed of in a legal manner." and
inserting in lieu thereof "and is in accordance with best
management practices";

On page twelve, subdivision 7.4.14, by striking out the word
"state" and inserting in lieu thereof the words "West Virginia";

On page twelve, subdivision 7.4.14, by striking out the word
"accredited" and inserting in lieu thereof the words "West Virginia licensed";

On page twelve, at the end of subdivision 7.4.14, after the
words "brucellosis testing." by inserting the following: "The
collection of samples for CWD testing shall be performed by trained
personnel within the West Virginia Division of Natural Resources or
by a trained veterinarian employed by the West Virginia Department
of Agriculture. For the purpose of collecting tissue for CWD
testing, the captive cervid facility licensee has four options:
(1) the licensee may deliver to a West Virginia Division of Natural
Resources District Office the head of the cervid; (2) the licensee
may deliver to a West Virginia Division of Natural Resources
District Office the entire cervid with the head intact; (3) the
licensee may contact the West Virginia Division of Natural
Resources and a trained representative of the West Virginia
Division of Natural Resources and/or a trained veterinarian
employed by the West Virginia Department of Agriculture shall go to
the facility and obtain the tissue samples; or (4) the licensee may
deliver the entire cervid with the head intact to the West Virginia
Department of Agriculture lab in Moorefield, West Virginia, and
upon delivery of the cervid carcass, the West Virginia Department
of Agriculture shall notify the West Virginia Division of Natural
Resources of the delivery. After the West Virginia Division of
Natural Resources and/or the West Virginia Department of
Agriculture have obtained sufficient and necessary tissue samples, the remaining tissue may be shared with the captive cervid facility
licensee.";

On page twelve, subdivision 7.4.15, by striking out "The co-
mingling of different Cervid species or Cervid species and
livestock will not be permitted in the same pens without written
approval of the Director. If different Cervid species are housed
at the same facility, they must be separated into different pens
that are double-fenced or otherwise prohibit contact between the
different species." and inserting in lieu thereof the following:
"Co-mingling of different cervid species will be allowed if the
population density is at least 20,000 square feet per animal and if
all best management practices are followed by the captive cervid
facility.";

On page twelve, subdivision 7.4.15, after the words "material
from" by striking out "different Cervid species" and inserting in
lieu thereof the words "captive cervids";

On page twelve, subdivision 7.4.15, after the word "exposed"
by striking out "to other Cervids in separate pens or";

On page thirteen, subdivision 7.4.16, by striking out the word
"shall" and inserting in lieu thereof the word "may";

On page thirteen, subdivision 7.4.16, by striking out the
words "such verification";

On page thirteen, subdivision 7.4.18, after the words "50
yards" by striking out the words "Except that a" and inserting in lieu thereof the word "A";
On page thirteen, subdivision 7.4.18, after the words "in the
ear" by striking out the word "shall" and inserting in lieu thereof
the word "is";

On page thirteen, subdivision 7.4.19, by striking out the word
"An" and inserting in lieu thereof the words "A licensee shall
maintain an";

On page thirteen, subdivision 7.4.19, by striking out the
words "will be maintained";

On page thirteen, subdivision 7.4.19, after the word "permits"
by striking out the period and the words "Records shall show" and
inserting in lieu thereof the words "and shall include";

On page thirteen, subdivision 7.4.20, by striking out the word
"A" and inserting in lieu thereof the words "A licensee shall
forward a";

On page thirteen, subdivision 7.4.20, by striking out the
words "shall be forwarded";

On page thirteen, subdivision 7.4.20, by striking out the
words "Prior approval shall be obtained from the Director for the
movement of captive cervids, and shall be conditional on negative
test results and herd accreditation for TB and brucellosis as
defined by the USDA." and inserting in lieu thereof the following:
"A licensee must obtain prior approval from the Director to move
captive cervids. The Director may grant approval on a case-by-case basis. All captive cervid facilities must enroll the cervid herds
in accreditation programs for brucellosis and TB as defined by the
USDA: Provided, That captive cervid facilities licensed after
August 9, 2005 may only accept cervids from TB accredited herds
that also meet all requirement of CWD monitoring and surveillance
programs";
On page thirteen, subdivision 7.4.20, after the words
"performed by" by striking out the words "an accredited" and
inserting in lieu thereof the words "a West Virginia licensed";

On page thirteen, by striking out subdivision 7.4.21 in its
entirety and inserting in lieu thereof the following:

"7.4.20. A captive cervid facility licensed after August 9,
2005, may receive animals coming from a herd within the state only
if the proposed transfer is from a herd that has an ongoing and
appropriate CWD surveillance record for at least 60 months. If a
licensee has a monitoring program which has been in effect for at
least 36 months, the Director may, after reviewing the facility's
monitoring records, approve intra-state movement of cervids from
the facility's herd: Provided, That intra-state movement of
captive cervids may be approved by the Director on a case-by-case
basis.";

On page thirteen, by striking out subdivision 7.4.22 in its
entirety and inserting in lieu thereof the following:

"7.4.21. A captive cervid facility in this state may not receive animals that have originated from or been housed with
animals originating from any state that has a confirmed CWD or
tuberculosis (TB) positive cervid in the last 60 months. A captive
cervid facility in this state may not receive genetic material that
originates from any state that has a confirmed CWD or tuberculosis
(TB) positive cervid in the last 60 months.";

On page thirteen, subdivision 7.4.23, by striking out the
words "an accredited" and inserting in lieu thereof the words "a
West Virginia licensed";

On page thirteen, at the end of subdivision 7.4.24, by
changing the period to a colon and adding the following proviso:
"Provided, That fawns below the age of six (6) months may be moved
or transferred if the fawn originates from a certified tuberculous
free herd and is tagged with a unique marker visible from 50
yards.";

On page fourteen, subdivision 7.4.25, by striking out the word
"Every" and inserting the word "A licensee will make every";

On page fourteen, subdivision 7.4.25, by striking out the
words "will be made;

On page fourteen, subdivision 7.4.25, by striking out the word
"All" and inserting in lieu thereof the words "A licensee shall
report all known";

On page fourteen, subdivision 7.4.25, by striking out the
words "shall be reported";

On page fourteen, subdivision 7.4.25, by striking out "24" and
inserting in lieu thereof "8";

On page fourteen, subdivision 7.4.25, after the word "Captain"
by changing the period to a comma and inserting the following:
"District WRS Game Biologist or the county conservation officer.";

On page fourteen, subdivision 7.4.25, after the words "captive
Cervid license"by striking out the remainder of the subdivision and
inserting in lieu thereof the following: "Any negligent act that
results in captive cervids escaping is a violation of the
license.";

On page fourteen, subdivision 7.4.26, after the words
"transmissible diseases." by striking out the remainder of the
subdivision and inserting in lieu thereof the following: "All
costs for killing an animal that escapes due to a negligent act,
including collecting samples and testing, are the responsibility of
the licensee.";

On page fourteen, subdivision 7.4.27, by striking out "shall"
and inserting in lieu thereof the word "may";

On page fourteen, subdivision 7.4.28, by striking out the
words "The" and inserting in lieu thereof the words "An authorized
representative of the Director shall periodically inspect the";

On page fourteen, subdivision 7.4.28, by striking out the
words "shall be periodically inspected by an authorized
representative of the Director";

On page fourteen, subdivision 7.4.30, by striking out the word
"Any" and inserting in lieu thereof the words "The licensee shall
report any";

On page fourteen, subdivision 7.4.30, by striking out the
words "shall be reported";

On page fourteen, subdivision 7.4.31, by striking out the word
"Appropriate" and inserting in lieu thereof the words "The licensee
shall submit appropriate";

On page fourteen, subdivision 7.4.31, by striking out the word
"must be submitted";

On page fourteen, subdivision 7.4.31, by striking out the
words "may also be required." and inserting in lieu thereof the
following: "is also required. Any captive cervid that is fourteen
months of age or older that dies or is slaughtered must be tested
for TB and brucellosis by a USDA certified, West Virginia licensed
veterinarian if sufficient samples are available. These test
results shall be made available to the West Virginia Department of
Agriculture and the West Virginia Division of Natural Resources.";

On page fourteen, subdivision 7.4.32, by striking out the
words "It shall be the licensee's responsibility to ensure that"
and insert in lieu thereof "The licensee shall notify";

On page fourteen, subdivision 7.4.32, by striking out the
words "is notified";

On page fourteen, subdivision 7.4.33, after the words "outside the infected captive Cervid facility." by striking out the
remainder of the subdivision.

And,

On page fourteen, after subdivision 7.4.33, by adding a new
subdivision to read as follows:

"7.4.33. The West Virginia Department of Agriculture and the
West Virginia Division of Natural Resources shall work together to
develop accreditation programs for captive cervids for diseases
including Tuberculosis (TB), brucellosis, and chronic wasting
disease (CWD). Captive cervid facilities are required to enroll
their herds in the USDA-APHIS CWD herd certification program, when
the program becomes effective. In addition, a herd plan shall be
developed that minimally includes actions described in the USDA-
APHIS final rule, or if not available the proposed rule, that apply
to the positive herd, epidemiologically linked herds, and the
facility."

(h) The legislative rule filed in the State Register on the
twenty-ninth day of July, two thousand five, authorized under the
authority of section seven, article one, chapter twenty of this
code, modified by the Division of Natural Resources to meet the
objections of the Legislative Rule-Making Review Committee and
refiled in the State Register on the thirteenth day of October, two
thousand five, relating to the Division of Natural Resources
(Falconry, 58 CSR 65), is authorized.

(i) The legislative rule filed in the State Register on the
twenty-ninth day of July, two thousand five, authorized under the
authority of section seven, article two-b, chapter twenty of this
code, relating to the Division of Natural Resources (Lifetime
hunting, trapping and fishing licenses, 58 CSR 67), is authorized.
§64-10-4. Division of Labor.

(a) The legislative rule filed in the State Register on the
twenty-ninth day of July, two thousand five, authorized under the
authority of section four, article nine, chapter twenty-one of this
code, modified by the Division of Labor to meet the objections of
the legislative rule-making review committee and refiled in the
State Register on the first day of November, two thousand five,
relating to the Division of Labor (West Virginia Manufactured
Housing Construction and Safety Standards Board, 42 CSR 19), is
authorized, with the following amendments:

On page thirteen, section ten-a, subsection two, subdivision
(a), paragraph (iii), by striking the words "American National
Standards Institute, A225.1 Installation Standard for Manufactured
Homes" and inserting in lieu thereof the words "National Fire
Protection Association 225 Model Manufactured Home Installation
Standard";

On page nineteen, section fifteen, by striking subsection 15.1
in its entirety;

On page twenty, section fifteen, by striking subsections 15.4 and 15.5 in their entirety;

On page twenty-one, section fifteen, by striking subsection
15.12 in its entirety; and

By renumbering the remaining subsections in section fifteen of
the Legislative rule.

(b) The legislative rule filed in the State Register on the
tenth day of February, two thousand five, authorized under the
authority of section four, article five-f, chapter twenty-one of
this code, modified by the Division of Labor to meet the objections
of the legislative rule-making review committee and refiled in the
State Register on the eighteenth day of January, two thousand six,
relating to the Division of Labor (nurse overtime complaints, 42
CSR 30), is authorized.
§64-10-5. Division of Tourism.

The legislative rule filed in the State Register on the
twenty-seventh day of July, two thousand five, authorized under the
authority of section nine, article two, chapter five-b of this
code, modified by the Division of Tourism to meet the objections of
the legislative rule-making review committee and refiled in the
State Register on the eleventh day of January, two thousand six,
relating to the Division of Tourism (Direct Advertising Grants
Program, 144 CSR 1), is authorized, with the following amendments:

On page one, following section 144-1-1, by striking out all of
section 144-1-2 and inserting in lieu thereof the following:
"§144-1-2. Definitions.

2.1 "Applicant" means a for profit or non-profit entity or
organization located within the state that promotes tourism within
the state and is also a destination. The term "applicant" may not
include vendors that would be supplying services paid for out of
grant funds, schools or camps.

2.2 "Application" means a written request for tourism
promotion funds pursuant to this rule containing all forms,
information and attachments executed by the applicant and all
partners, if applicable.

2.3. "Amenity" includes spa services, golf courses, full-
service restaurants, skiing or snow activities, tennis, horseback
riding, hiking trails, boating or fishing.

2.4. "Attraction" means an entity which is at least one of
the following:

2.4.1. A cultural or historic site or event which includes,
but is not limited to, fairs or festivals, heritage and historic
sites and museums;

2.4.2. Entertainment establishments which include, but are
not limited to, pari-mutuel gaming establishments, live performing
art centers, sporting organizations or arenas, vineyards or
wineries;

2.4.3. Scenic or natural areas such as show caves or caverns;

2.4.4. Theme or Amusement Parks;

2.4.5. Zoos, Aquariums or Wild Animal Parks;

2.4.6. Recreational Activities, including but not limited to
whitewater rafting, skiing and snow activities, mountain biking,
hunting and fishing.

2.5. "Code" means the Code of West Virginia.

2.6. "Commission" means the Tourism Commission created
pursuant to §5B-2-8 of the Code.

2.7. "Destination" means one of the following:

2.7.1. A region or area located within the state containing
three or more attractions;

2.7.2. An independent activity located within the state;

2.7.3. A cultural or historic site or event which includes,
but is not limited to, fairs or festivals, heritage and historic
sites and museums;

2.7.4. Entertainment establishments which include, but are
not limited to, pari-mutuel gaming establishments, live performing
art centers, sporting organizations or arenas, vineyards or
wineries;

2.7.5. Scenic or natural sites such as show caves or caverns;

2.7.6. Theme or Amusement Parks; or

2.7.7. Zoos, Aquariums or Wild Animal Parks;

2.8. "Destination Inn or Bed and Breakfast" means a lodging
facility located within the state whose recognized reputation for
service and amenities are the primary motivating factor for visitors to travel to the area where it is located.

2.9. "Division" means the Division of Tourism created
pursuant to §5B-2-8 of the code.

2.10. "Fulfillment" means printed materials used to respond
to an inquiry requesting additional information generated by direct
advertising or printed materials provided to the division, a state
park, the national park service or other government agency for
direct advertising.

2.11. "Grant Period" means the twelve month period running
from the beginning project date through the ending project date and
any extensions granted by the commission pursuant to subdivision
8.4.3. of this rule.

2.12. "Independent Activity" means an entity or organization
which attracts a minimum of eighty-five percent (85%) of its
visitors from outside the local market and is at least one of the
following:

2.12.1. An entity or organization which provides recreational
activities including, but not limited to, whitewater rafting,
skiing and snow activities, mountain biking, hunting and fishing,
bus tours, dinner cruises and sightseeing tours;

2.12.2. A Resort;

2.12.3. A Destination Inn or Bed and Breakfast;

2.12.4. An entity or organization offering vacation rentals;
or

2.12.5. Destination shopping.

2.13. "Local Market" means the geographic area within fifty
(50) miles of a destination.

2.14. "Partner" means an entity or organization located
within the state making a financial contribution toward the
applicant's match requirement for an application for grant funds
for a collaborative marketing program with a central advertising
message directing tourists to a destination being represented by
the applicant. The term "partner" may not include vendors that
would be supplying services paid for out of grant funds.

2.15. "Resort" means a full-service lodging facility that is
frequented for relaxation or recreational purposes and offers at
least two amenities.

2.16. "Return on Investment" means the measure of a project's
ability to use grant funds to generate additional value, including,
but not limited to additional bookings and reservations.

2.17. "Total project cost" means the total of all proposed
eligible expenditures contained within an application.

2.18. "Vacation Rental" means a lodging facility including
chalets, cabins or condominiums. The term "vacation rental" may
not include hotels or motels.";

On page two, subsection 3.2, following the word "destination"
by striking "/attraction";

On page two, subsection 3.7, following the word "destination" by striking the words "or attraction";

On page four, subdivision 4.3.4., following the word "funding"
and the period, by adding the following:

"Applications for projects that include repeat marketing
efforts shall contain information demonstrating that such repeat
marketing efforts are in addition to regular ongoing advertising
activities.";

On page four, following subdivision 4.3.9. by adding the
following:

"4.3.10. The project supports advertising activities that are
over and above regular ongoing advertising activities.";

On page four, following section 144-1-5, by striking out all
of section 144-1-6 and inserting in lieu thereof the following:
"§144-1-6. Eligible and ineligible expenditures of grant funds.

6.1.
Grant funds may only be used to pay for eligible
expenditures for direct advertising. Eligible expenses for direct
advertising include, but are not limited to the following:

6.1.1. The costs of advertising on television, radio, or
other telecommunications media, in newspapers, magazines or other
print media, direct mail advertising, and outdoor advertising or
any combination thereof;

6.1.2. The costs of purchasing and using mailing lists for
direct mail promotions;

6.1.3. The costs for United States postage used for direct mail and fulfillment for direct advertising: Provided, That if bulk
mail is appropriate, the applicant must use bulk mail and
reimbursement will be limited to the bulk mail rate; and if bulk
mail is not appropriate, reimbursement will be limited to the cost
of United States mail first class postage;

6.1.4. The costs of printing travel related literature:
Provided, That sixty percent (60%) of such literature is used as
fulfillment for direct advertising within the approved application
or approved request for modification of an approved application; or

6.1.5. Registration fees for consumer and trade shows:
Provided, That the participation in such shows is for the purpose
of attracting visitors to the state.

6.2. Eighty percent (80%) of a project's direct advertising
must be directed toward areas outside of the local market or in
major out-of-state markets, except for direct advertising for a
fair or festival grant authorized by subsection 7.3 of this rule.

6.3. Notwithstanding the provisions of subsection 6.2 of this
rule, all direct advertising in the form of billboards must be
directed toward areas outside of the local market or in major out-
of-state markets, except billboards for a fair or festival grant
authorized by subsection 7.3 of this rule.

6.4. All direct advertising in the form of billboards must
have a creative concept or layout approved by the Division in order
for any of its cost to be considered an eligible expenditure.

6.5. Any direct advertising related to real estate must be
for vacation rentals only. Any portion of direct advertising
relating to the sale of real estate must be pro-rated. A creative
concept must be submitted with any application or request for
modification of an approved application for direct advertising
relating to real estate. Advertisements for the sale of real
estate in visitor guides and brochures must be grouped on a
specific page or pages and those pages pro-rated from the grant at
the time of the submission of the application. (Example: CVB X has
a 32 page visitor guide and has determined that area realtors will
take up 2 pages - CVB X must disclose this in its grant application
and media breakout and the totals must request funding for only 30
pages.) No direct advertising for real estate sales or realty
agencies are permitted within cooperative advertising, unless such
ads are specifically and clearly delineated as vacation rentals
only.

6.6. Direct advertising may be in the form of cooperative
advertising which is advertising that represents a community,
region, county, multi-county or statewide organization and may
include tourism businesses or organizations that enhance the
destination for which the grant is to cover. Cooperative
advertising must be entirely directed toward areas outside the
local market or in major out-of-state markets. All cooperative
advertising must have a creative concept approved by the Division in order for any of its cost to be considered an eligible
expenditure.

6.7. Eligible expenses may include production expenses for
direct advertising in the media categories provided in this
subsection. The total cost of such production expenses may not
exceed fifteen (15%) of the total cost of the direct advertising
and in no event may the total cost of such production expenses
exceed $22,500, for any one of the following media categories:

6.7.1. Printed material, including the printing of direct
mail and travel related literature;

6.7.2. Print media;

6.7.3. Television and radio; and

6.7.4. Billboards.

6.8. Grant funds may not be used to pay for ineligible
expenditures. Ineligible expenditures include, but are not limited
to the following:

6.8.1. Regular and ordinary business costs of the applicant
including, but not limited to, supplies, personnel, phone, normal
postage, distribution and shipping expenses or travel costs;

6.8.2. Any costs associated with preparation of the direct
advertising grant application;

6.8.3. Costs for the rental or purchase of real estate;

6.8.4. Construction costs;

6.8.5. Costs of political or lobbying activities of any kind;

6.8.6. Membership fees or dues to any organization, or
solicitation of membership to any organization through advertising
within a grant program authorized by this rule;

6.8.7. Costs associated with the start up of any business or
publication even if the business or publication may be totally or
partially devoted to the promotion of tourism in the state;

6.8.8. The cost of purchase of audio/visual equipment;

6.8.9. Costs of alcoholic beverages;

6.8.10. Costs for any expenditure not identified in the
application, unless the Commission grants prior approval in
writing;

6.8.11. Costs of any public relations or research expense;

6.8.12. Costs for key rings, bumper stickers, mugs or any
other similar promotional item;

6.8.13. Event production expenses, including costs for audio
equipment, awards, entertainment, portable restrooms, labor or
refreshments;

6.8.14. Costs relating to fund-raising activities;

6.8.15. Costs associated with retail advertising, except for
destination shopping which is able to produce verification that
said destination attracts a minimum of eighty-five (85%) of its
visitors from outside the local market: Provided, That no retail
advertising may include price point advertising;

6.8.16. Costs of Tourist Oriented Directional Signs (TODS) and logo signs for gas, food, lodging and camping;

6.8.17. Costs of sponsorships; or

6.8.18. Costs of items for resale.";

On page six, in the fourth line of section 7.2, following the
word "exceed" by striking "2,500" and inserting in lieu thereof
"7,500";

On page six, in the fourth line of section 7.2, following the
word "applicant" by striking "in any given quarter as defined from
time to time by the Division" and inserting in lieu thereof "and no
applicant shall receive more than two grants per fiscal year";

On page six, in the seventh line of section 7.2, following the
words "minimum of" by striking "50" and inserting in lieu thereof
"25";

On page six, in the ninth line of section 7.2, following the
word "exceed" by striking "750,000" and inserting in lieu thereof
"2,000,000";

On page six, in the fourteenth line of section 7.2, following
the word "date" and the period by inserting the following:

"No applicant who has received a grant larger than $7,500 in
any fiscal year may apply for a small grant under this section
during the same fiscal year: Provided, That a nonprofit entity may
apply for and receive small grants even if it has received large
grants in the same fiscal year."