SENATE AMENDED

THE GENERAL ASSEMBLY OF PENNSYLVANIA

HOUSE BILL

INTRODUCED BY SIMMONS, CREIGHTON, CUTLER, EMRICK, GABLER, GILLEN, KAUFFMAN, LAWRENCE, ROAE, SACCONE, SAYLOR, SWANGER AND CALTAGIRONE, SEPTEMBER 22, 2011

SENATOR VOGEL, LOCAL GOVERNMENT, IN SENATE, AS AMENDED, JUNE 25, 2012    

AN ACT

Amending Title 53 (Municipalities Generally) of the Pennsylvania

Consolidated Statutes, in general provisions relating to

indebtedness and borrowing, further providing for home rule; 

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and, in other subjects of taxation, further providing for

hotel room rental.

The General Assembly of the Commonwealth of Pennsylvania

hereby enacts as follows:

Section 1.  Section 8008 of Title 53 of the Pennsylvania

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Consolidated Statutes is amended to read:

Section 1.  Sections 8008 and 8721(b) of Title 53 of the

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Pennsylvania Consolidated Statutes are amended to read:

§ 8008.  Home rule.

(a)  General rule.--Every local government unit obtaining a

home rule charter after July 12, 1972, shall be subject to the

substantive provisions of this subpart applicable to it as if it

were a local government unit and may adopt the procedural

provisions of this subpart, by incorporation thereof by

reference, in its home rule charter.

(b)  Referendum.--A home rule charter may contain referendum

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requirements to incur debt with approval of the electors, in

addition to any requirements contained in this subpart.

(b)  Referendum requirements.--The home rule charter of a

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county may establish limitations pertaining to incurring debt

without the approval of electors which are more restrictive than

the provisions contained in section 8022 (relating to

limitations on incurring of other debt).

§ 8721.  Hotel room rental.

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(b)  Counties of the second class.--The treasurer of each

county of the second class electing to impose the tax authorized

under this section is directed to collect the tax and to deposit

the revenue received from the tax in a special fund. The

revenues shall be distributed by the county commissioners as

follows:

(1)  Except as set forth in paragraph (4), two-fifths of

the revenue received by the county from the excise tax shall

be distributed to a tourist promotion agency pursuant to

section 2199.14 of the act of July 28, 1953 (P.L.723,

No.230), known as the Second Class County Code.

(2)  Except as set forth in paragraph (4), one-third of

the tax collected by hotels within a municipality where a

convention center or exhibition hall is located, less the

cost of collecting the tax, shall, at the request of that

municipality, be returned to that municipality for deposit in

that municipality's special fund established solely for

purposes of paying for promotional programs implemented by a

nonprofit organization which are designed to stimulate and

increase the volume of conventions and visitors within the

municipality or as provided in paragraph (5), subject to the

following requirements:

(i)  An audited report on the income and expenditures

incurred by the municipality receiving funds from the

excise tax on hotel room rentals shall be made annually

to county.

(ii)  The members of the board of directors or other

governing body of the nonprofit organization utilized by

the municipality to provide the promotional programs

shall be appointed by the governing body of the

municipality.

(2.1)  Except as set forth in paragraph (4), a 5% fee

shall be paid to the county for collecting the tax.

(3)  Except as set forth in paragraph (4), all remaining

revenue from the tax received by the county, after paying the

amounts set forth in paragraphs (1), (2) and (2.1), shall be

used for operational and maintenance expenditures of the

convention center or exhibition hall as provided in

subsection (d) and for regional tourist promotion activities.

(4)  Subject to paragraph (4.1), if bonds are issued by

the public authority to provide permanent financing or

refinancing of the expansion of and capital improvements to

the convention center or exhibition hall, the revenue

received from the tax and deposited in the special fund shall

not be distributed as set forth in paragraphs (1) through (3)

but shall be distributed by the county commissioners in the

order of priority as follows:

(i)  First, to the payment of all amounts set forth

in paragraph (2).

(ii)  Second:

(A)  to the trustee for the bonds in accordance

with the provisions of the indenture pursuant to

which the bonds are issued, to be used for the

payment of debt service on the bonds; and

(B)  to the payment of all amounts set forth in

paragraph (2.1):

(I)  in full; or

(II)  if the revenues are insufficient to

make the payment in full, pro rata.

(iii)  Third, to the payment of all amounts set forth

in paragraph (1).

(iv)  Fourth, as set forth in paragraph (3).

(4.1)  Paragraph (4) shall not apply to bonds issued

subsequent to the permanent financing for purposes of

completion or subsequent expansions or capital improvements.

(5)  If a convention center or exhibition hall

discontinues operation in a municipality in which a

convention center or exhibition hall is located, the

municipality shall continue to collect and receive the tax

[for a period of three years from the date of discontinuation

of operation or closure. The following apply:

(i)  During this period, the municipality may use

revenue from the tax for debt service on the

construction, reconstruction, operation or maintenance of

a convention center or exhibition hall in the

municipality.

(ii)  If, during this period, no convention center or

exhibition hall is operating or under construction, the

municipality shall hold the revenue in the special

account under paragraph (2), which is separate from all

other municipal revenue, solely for the purpose of the

construction of a convention center or exhibition hall in

the municipality.

(iii)  At the end of this period, if a convention

center or exhibition hall does not operate or if the

construction of a new convention center or exhibition

hall in the municipality has not reached substantial

completion, the revenue from the tax shall be deposited

by the county in the economic development, community

infrastructure and tourism fund maintained by the county]

which shall be deposited by the municipality and used for

the purposes as provided for in paragraph (2).

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Section 2.  This act shall take effect in 60 days.