1Amending Title 53 (Municipalities Generally) of the Pennsylvania
2Consolidated Statutes, further providing for initiative of
3electors seeking consolidation or merger with new home rule
4charter<-.; providing for a hotel room rental tax in certain 
5third class counties; and making an editorial change.

6The General Assembly of the Commonwealth of Pennsylvania
7hereby enacts as follows:

8Section 1. Section 735.1(c) <-735.1(a), (c), (d)(3), (e)(3), 
9(g)(1) and (l)(6) and (7) of Title 53 of the Pennsylvania 
10Consolidated Statutes are amended and subsection (l) is amended 
11by adding a paragraph to read:

12§ 735.1. Initiative of electors seeking consolidation or merger
13with new home rule charter.

<-14(a) General rule.--In order for a commission and
15consolidation or merger proceedings to be initiated by petition
16of electors, petitions containing signatures of at least 5% of
17the number of electors voting for the office of Governor in the
18last gubernatorial general election in each municipality
19proposed to be consolidated or merged shall be filed with the

1county board of elections of the county in which the
2municipality, or the greater portion of its territory, is
3located. The petition shall set forth:

4(1) The name of the municipality from which the signers
5of the petition were obtained.

6(2) The names of the municipalities proposed to be
7consolidated or merged.

8(3) An estimated cost of the study commission.

9(4) The number of persons to compose the commission.

10(5) The petition question which shall read as follows:

11Shall a Government Study Commission of (seven, nine
12or eleven) members be elected to study the issue of
13consolidation or merger of (municipalities to be
14consolidated or merged); to provide a recommendation
15on consolidation or merger; to consider the
16advisability of the adoption of a new home rule
17charter; and to draft a new home rule charter, if
18recommended in the report of the commission?

19(6) The petition shall also include the following
20statement:

21Only municipalities voting in the affirmative on the
22question will be held responsible for the costs of
23the study commission.

24* * *

<-25[(c) Contents.--A petition shall set forth:

26(1) The name of the municipality from which the signers
27of the petition were obtained.

28(2) The names of the municipalities proposed to be
29consolidated or merged.

<-30(2.1) An estimated cost of the study commission.

1(3) The number of persons to compose the commission.

2(4) The petition question which shall read as follows:

3Shall a Government Study Commission of (seven, nine
4or eleven) members be elected to study the issue of
5consolidation or merger of (municipalities to be
6consolidated or merged); to provide a recommendation
7on consolidation or merger; to consider the
8advisability of the adoption of a new home rule
9charter; and to draft a new home rule charter, if
10recommended in the report of the commission?<-]

<-11(5) The petition shall also include the following
12statement:

13Only municipalities voting in the affirmative on the
14question will be held responsible for the costs of
15the study commission.

16(d) Filing of petition and duty of election board.--

17* * *

18(3) At the next general, municipal or primary election
19occurring not less than the 13th Tuesday after the filing of
20the petition with the county board of elections, it shall
21cause the appropriate question and statement listed under 
<-22subsection (c)(4) and (5) subsection (a)(5) and (6) to be
23submitted to the electors of each of the municipalities
24proposed to be consolidated or merged in the same manner as
25other questions are submitted under the act of June 3, 1937 
26(P.L.1333, No.320), known as the Pennsylvania Election Code.

27(e) Election of members of commission.--

28* * *

29(3) Each elector shall be instructed to vote on the
30question and, regardless of the manner of his vote on the

1question, to vote for the designated number of members of the
2commission who shall serve if the question is or has been
3determined in the affirmative by the majority of the whole of 
4those voting in all the municipalities impacted by the 
5consolidation or merger.

6* * *

7(g) Results of election.--

8(1) The result of the votes cast for and against the
9question as to the election of a commission and consolidation
10and merger proceedings shall be returned by the election
11officers, and a canvass of the election had, as is provided
12by law in the case of other public questions put to the
13electors. The votes cast for members of the commission shall
14be counted and the result returned by the county board of
15electors of the county in which the municipality, or the
16greater portion of its territory, is located, and a canvass
17of the election had, as is provided by law in the case of
18election of members of municipal councils or boards. If a 
19majority of the whole in the municipalities proposed to be 
20consolidated or merged vote in the affirmative on the 
21question, then the commission shall be formed to study the 
22issue of consolidation or merger and to make recommendations 
23as set forth in the question. The designated number of
24candidates receiving the greatest number of votes shall be
25elected and shall constitute the commission. If a majority of
26[those] the whole in the municipalities voting on the
27question vote against the election of the commission, none of
28the candidates shall be elected. If two or more candidates
29for the last seat shall be equal in number of votes, they
30shall draw lots to determine which one shall be elected.

1* * *

2(l) Compensation, personnel and commission budget.--

3* * *

4(6) No later than 15 days after the submission of a
5budget in accordance with paragraphs (4) or (5), a joint
6public hearing of the commission and the governing bodies of
7the municipalities shall be held. The governing bodies of the
8municipalities to be consolidated or merged may, by
9agreement, modify any budget submitted by the commission. A
10governing body of a municipality to be consolidated or merged
11may approve appropriations to the commission in conformity
12with its share of the modified budget as determined in
13accordance with paragraph (7) or (7.1). Any unreasonable
14modification of the budget may be subject to an action as
15provided in paragraph (8) in the court of common pleas of any
16county wherein a municipality to be consolidated or merged
17lies.

18(7) [The] If a majority in each of the municipalities to 
19be consolidated or merged vote in favor of establishing a 
20commission, the municipalities [to be consolidated or merged]
21may, by agreement, determine the share that each municipality
22shall appropriate to fund the estimated budget of the
23commission. If no agreement as to the respective amount that
24each municipality shall appropriate is reached, each
25municipality shall appropriate funds equal to its pro rata
26share of the total estimated budget of the commission based
27upon its share of population to the total population of the
28municipalities to be consolidated or merged.

29(7.1) When a commission is formed to study consolidation 
30or merger by a vote of the whole in the municipalities
 

1considering the question, the municipalities that vote in the 
2affirmative shall be responsible for funding the budget of 
3the commission. Any municipalities that vote in the negative 
4on the question shall not be responsible for the budget costs 
5of the commission.

6* * *

<-7Section 2. The heading of section 8721 of Title 53 is
8amended to read:

9§ 8721. Hotel room rental in counties of the second class and 
10second class A.

11* * *

12Section 3. Title 53 is amended by adding a section to read:

13§ 8722. Hotel room rental tax in certain third class counties.

14(a) General rule.--A county may, by ordinance, impose a tax

15which shall be known as a hotel room rental tax on the

16consideration received by each operator of a hotel within the

17county from each transaction of renting a room or rooms to

18accommodate transients. The tax shall be collected by the

19operator from the patron of the room and paid over to the county

20where the hotel is located as provided under this section.

21(b) Rate.--The rate of the tax imposed under this section
22shall not exceed 5%.

23(c) Collection.--The treasurer of each county electing to
24impose the tax authorized under this section shall collect the
25tax and deposit the revenues received from the tax in a special
26fund established for that purpose. Subsequent to the deduction
27for administrative costs established in subsection (f), the
28county shall distribute to the recognized tourist promotion
29agency all revenues received from the tax not later than 60 days
30after receipt of the tax revenues. The revenues from the special

1fund shall be used by the recognized tourist promotion agency
2for any or all of the following purposes:

3(1) Convention promotion.

4(2) Marketing the area served by the agency as a leisure

5travel destination.

6(3) Marketing the area served by the agency as a
7business travel destination.

8(4) Using all appropriate marketing tools to accomplish

9these purposes, including, but not limited to, advertising,

10publicity, publications, direct marketing, direct sales and

11participation in industry trade shows.

12(5) Projects or programs that are directly and
13substantially related to tourism within the county, augment
14and do not unduly compete with private sector tourism efforts
15and improve and expand the county as a destination market.

16(6) Any other tourism marketing or promotion program
17deemed necessary by the recognized tourist promotion agency.

18(d) Tax year.--Each tax year for any tax imposed under this
19section shall run concurrently with the county's fiscal year.

20(e) Report.--An audited report on the income and
21expenditures incurred by a recognized tourist promotion agency
22receiving any revenues from the tax authorized under this
23section shall be submitted annually by the recognized tourist
24promotion agency to the county commissioners.

25(f) Administrative fee.--For the purposes of defraying costs
26associated with the collection of the tax imposed under this
27section and otherwise performing its obligations under this
28section, a county is hereby authorized to deduct and retain an
29administrative fee from the taxes collected hereunder. Such
30administrative fee shall be established by the county but shall

1not exceed in any tax year the lesser of:

2(1) two percent of all taxes collected under this
3section; or

4(2) fifty thousand dollars, which amount shall be

5adjusted annually, beginning one year after the date of

6enactment, by the the percentage growth in the Consumer Price

7Index for All Urban Consumers as determined by the United
8States Department of Labor.

9(g) Definitions.--As used in this section, the following
10words and phrases shall have the meanings given to them in this
11subsection unless the context clearly indicates otherwise:

12"Consideration." Receipts, fees, charges, rentals, leases,

13cash, credits, property of any kind or nature or other payment

14received by operators in exchange for or in consideration of the

15use or occupancy by a transient of a room or rooms in a hotel

16for a temporary period.

17"County." Any county of the third class having a population

18under the 2010 Federal Decennial Census in excess of 430,000

19residents but less than 440,000 residents.

20"Hotel." A hotel, motel, inn, guesthouse or other structure

21which holds itself out by any means, including advertising,

22license, registration with an innkeepers' group, convention

23listing association, travel publication or similar association

24or with a government agency, as being available to provide

25overnight lodging for consideration to persons seeking temporary

26accommodation; any place which advertises to the public at large

27or any segment thereof that it will provide beds, sanitary

28facilities or other space for a temporary period to members of

29the public at large; or any place recognized as a hostelry. The

30term does not include any portion of a facility that is devoted

1to persons who have an established permanent residence or a

2college or university student residence hall or any private

3campground or any cabins, public campgrounds or other facilities

4located on State land.

5"Operator." Any individual, partnership, nonprofit or

6profit-making association or corporation or other person or

7group of persons who maintain, operate, manage, own, have

8custody of or otherwise possess the right to rent or lease

9overnight accommodations in a building to the public for

10consideration.

11"Patron." Any person who pays the consideration for the

12occupancy of a room or rooms in a hotel.

13"Permanent resident." Any person who has occupied or has the

14right to occupy a room or rooms in a hotel as a patron or

15otherwise for a period exceeding 30 consecutive days.

16"Recognized tourist promotion agency." The nonprofit

17corporation, organization, association or agency which is

18engaged in planning and promoting programs designed to stimulate

19and increase the volume of tourist, visitor and vacation

20business within counties served by the agency as that term is

21provided under the act of July 4, 2008 (P.L.621, No.50), known 
22as the Tourism Promotion Act.

23"Room." A space in a building set aside for use and
24occupancy by patrons, or otherwise, for consideration, having at
25least one bed or other sleeping accommodations provided.

26"Temporary resident." Any person who has occupied or has the

27right to occupy a room or rooms in a hotel as a patron or

28otherwise for a period of time not exceeding 30 consecutive

29days.

30"Transaction." The activity involving the obtaining by a

1transient or patron of the use or occupancy of a hotel room from

2which consideration emanates to the operator under an expressed

3or implied contract.

4"Transient." Any person who obtains an accommodation in any
5hotel for the person by means of registering at the facility for

6the temporary occupancy of a room for the personal use of that

7person by paying to the operator of the facility a fee in

8consideration therefor.

9Section <-2 4. This act shall take effect in 60 days.