fim Justice Goveiner H, Wood Thrasher, cabinet Secretary worwwveommerce.org DEPARTMENT OF COMMERCE (804) 558-2234 January 16, 2018 Rebecca L. Stepto Executive Director West Virginia Ethics Commission 210 Brooks Street, Suite. 300 Charleston, WV 25301 RE: Request for exemption from prohibition against interests ina public contract Dear Ms. Stepto: fyeas® accept ths letter as a formal request on behalf of the West Virginia Tourism Office! oency) 19 teseive an exemption from the prohibition agains: nner in public contracts pursuant i West Virwinia Code § 6B-2-5(a)(4). Specifically, the WVTO anne an exemption from the West qpuBinia Ethics Act to allow The Greenbrier in White Sulphur Springs, WV to purchase advertising in the newly-created cooperative advertising program. As mene fully set forth below, the WVTO believes that the prohibit tion in this context substantially interferes with the agency's core mission, creates an ‘undue burden, and results in excessive cost to the taxpayer. The WTO's mission is 10 help build and promote © world-class tourism destination that Piuides jobs, stimulates investment, grows existing businesses, and Promotes a positive image of West Virginia as a place to visit, go to college, live, work, and seike a part of its mission, the WVTO is mandated to develop and implement a comprehensive touriemn advertising, promotion and development Se B4 for West Virginia, including the requirement to “leverage funding from sources other than the state.” W. Va. § Code 5B-21-4(a). To achieve this mandate, the director of the WVTO is directed to administer a cooperative advertising program? CAP"). See W. Va. Code § SB-21 ~4(a)(4) (directing the ‘rds par of the new strategy 1o improve tourism promotion inthe West Virginia, SB 535, among other things, eliminated Fe ee Advertising Grants Program (commonly referred o as "MAPP" eee oc, CSR I (inactive); W. Va. Code 5B-2- § & 9 repeated) and created the cooperative advensing progam, Sate Cepitel_ | 1800 Kanawha Boulevard East, Building 3, Suite 600, Charleston WY 25305 | Pax: (904) 858-89Program during the past six months, Under the state’s tourism funding and branding to advenising campaign. Moreover, State is reduced. This prohibition overall marketing budget, This framework is fundamentally different as it requires all adver ntising to align dhe ne Site's branding strategy. In addition, the WVTO's “eall vo actions™ will direct consumers to the WVTO's website instead of the private company's web aie eee * More information on CAP is available at htpsuotow.convindusr informatiow/cooperutive-advertising program’ Tgcalso-Action” is aterm ofan in advertising which refers toa Piece of cont Vstener to perform a specific act, suchas “buy now" orehick nein the recent WV Forward® study and is a key priority in the WVTO's new advertising campaign, Limiting CAD in this manner further interferes with the WVTO's mission to ereate more opportunities for the state, Tourism advertising is important because it results in an 8:1 return on investment in state and local tax revenues’. Research also shows that the more out-of-state visitors who vacation in a state, the ‘more positive image the entire state receives*, This positive association changes the overall perception of West Virginia which helps bring more tourists, retirees, and new businese ‘opportunities to West Virginia, For the reasons articulated above, the WVTO respectfully requests that the West Virginia Ethies Commission grant an exemption pursuant to West Virginia Code § 6B. -5(d)(4) from the prohibition against interests in public contracts and allow The Greenbrier to buy into CAP. ‘The CAP began January 1, 2018, and will run through December 31, 2018. The cooperative advertising purchases for the spring/summer are pending and will be finalized soon. Therefore, the WVTO furthe, Fequests that this ‘matter be considered at the next regularly-scheduled commission meeting. Your attention and efforts are greatly appreciated, Very truly yours, Gost, reat Joshua L. Jarrell Deputy Cabinet Secretary/General Counsel ‘ea nnmeeration among the West Virginia Department of Commerce which includes the WVTO, ang Marshall Universit to identify short-term, larger-scale projects that wll boas West Virginia's falleboration was supported by analysis from McKinsey & Company. which was fecused SUV TO necacrzaizations, and novforprofis. McKinsey & Company ented the re of fo attract tothe state to best serve its mission, See pages 18-22 at for more inforration on WY | Forward: | hutps/weforward wu, eduifiles/d/edal | 26-1SRdo4a91-9213 seat s6eh, dives virginie- forward summary-of-findings pt aes enewoods Ineratonal, 2016 West Virginia Image nd Advertsing Accountability Research, slide 122 (uin:olot com/yp-conten/ un sads201 01 AVV-FY 20 6-I MAGE: ROLPINAL-1-20 Bd) * See dd. at slides 125-133.