Amendment 6516 to House Bill 794 P.N. 2459, Regular Session 2015-2016

H0794B2459A06516 MSP:CMD 04/05/16 #90 A06516

AMENDMENTS TO HOUSE BILL NO. 794

Sponsor: SENATOR TOMLINSON

Printer's No. 2459

Amend Bill, page 1, line 8, by inserting after "initiatives,"

in preliminary provisions, further providing for applicability;

Amend Bill, page 1, line 10, by striking out "and" where it

occurs the first time and inserting

, further providing for authorization of 5% hotel tax, repealing

provisions relating to

Amend Bill, page 1, line 10, by striking out the semicolon

after "tax"

Amend Bill, page 1, line 12, by striking out "and" and

inserting a comma

Amend Bill, page 1, line 13, by striking out the period after

"agencies" and inserting

and for hotel room rental in second class and second class A

counties; and repealing related provisions of Title 53 of the

Pennsylvania Consolidated Statutes regarding hotel room

rental in second class A counties.

Amend Bill, page 1, lines 16 through 18, by striking out all

of said lines and inserting

Section 1. Section 102(a) of the act of August 9, 1955

(P.L.323, No.130), known as The County Code, amended May 6, 2013

(P.L.22, No.4), is amended to read:

Section 102. Applicability.--(a) Except incidentally, as in

sections 108, 201, 210, 211, 401 and 1401 or as provided in

section 1770.12 and Article XXX, this act does not apply to

counties of the first, second A, or second classes.

* * *

Section 2. Section 1770.2 of the act is repealed:

2016/90MSP/HB0794A06516 - 1 -

Amend Bill, page 6, line 8, by inserting after "operator."

]

Section 2.1. Section 1770.5(c)(3) and (c.2) of the act,

amended December 18, 2007 (P.L.465, No.72), are amended to read:

Section 1770.5. Authorization of Five Per Centum Hotel

Tax.--* * *

the entity or agency responsible to collect and to enforce the

collection of the tax on their behalf. All revenues received

from the tax shall be deposited into a special fund, which is to

be established by the county's treasurer. The disposition of the

revenues from the special fund attributable to the levy of the

first two per centum of the tax shall be as follows:

* * *

(3) seventy per centum of all revenue received per annum

shall be distributed by the treasurer to qualified authorities

located within the county of the third class imposing the tax

for payment of the debt service on bonds issued for the

construction of [the] a county regional sports facility having a

seating capacity of [ten] two and one-half thousand to fourteen

thousand seats, which is owned, in whole or in part, or leased

by the applicable authority, and which is located within the

county of the third class imposing the tax. The following are

qualified authorities for purposes of this clause:

(i) an authority incorporated pursuant to the former act of

May 2, 1945 (P.L.382, No.164), known as the "Municipality

Authorities Act of 1945";

(ii) an industrial or commercial development authority

incorporated pursuant to the act of August 23, 1967 (P.L.251,

No.102), known as the "Economic Development Financing Law"; and

(iii) a redevelopment authority incorporated pursuant to the

act of May 24, 1945 (P.L.991, No.385), known as the "Urban

Redevelopment Law."

* * *

(c.2) The disposition of the revenues from the special fund

attributable to the levy of the remaining two per centum of the

tax shall be distributed by the treasurer as follows:

(1) fifty per centum shall be distributed to the TPA for the

appropriate and reasonable marketing and promotional expenses

for promoting tourism in the county imposing the tax; and

(2) fifty per centum shall be distributed as follows:

(i) Seventy-five per centum to an authority incorporated

pursuant to the former "Municipality Authorities Act of 1945"

located within the county of the third class currently imposing

a tax for payment of the debt service on bonds issued for the

construction of [the] a county regional sports facility having a

seating capacity of [ten] two and one-half thousand to fourteen

thousand seats, which is owned, in whole or in part, or leased

by the applicable authority, and which is located within the

2016/90MSP/HB0794A06516 - 2 -

county of the third class imposing the tax. Such authority shall

use the tax distribution identified in this section for the

improvement, support, rehabilitation, revitalization,

construction, fit-out and reconstruction of one or more tourism

or tourism infrastructure-related facilities, including, but not

limited to, the payment of debt service on bonds related

thereto.

(ii) Twenty-five per centum shall be distributed to the TPA

for the appropriate and reasonable marketing and promotional

expenses of promoting tourism in a city of the third class

located within the county of the third class imposing the tax,

and the same shall be used in accordance with a plan approved by

the TPA.

* * *

Section 2.2. Section 1770.6 of the act is repealed:

[

Amend Bill, page 10, line 13, by striking out "2" and

inserting

Amend Bill, page 13, lines 26 through 30, by striking out all

of said lines

Amend Bill, page 15, line 4, by striking out "; or any

cabins"

Amend Bill, page 15, line 11, by striking out the comma after

"hospital" and inserting

Amend Bill, page 15, lines 11 and 12, by striking out "or

part of a campground that is not a cabin "

Amend Bill, page 17, by inserting between lines 23 and 24

Section 1770.12. Hotel Room Rental in Second Class and

Second Class A Counties.--

(a) (1) The county commissioners in each county of the

second class are authorized to impose an excise tax at five per

centum on the consideration received by each operator of a hotel

within the county from each transaction of renting a room or

rooms to accommodate transients.

(2) The county commissioners in each county of the second

class A are authorized to impose an excise tax not to exceed

five per centum on the consideration received by each operator

of a hotel within the county from each transaction of renting a

2016/90MSP/HB0794A06516 - 3 -

room or rooms to accommodate transients.

(3) The tax shall be collected by the operator from the

patron of the room and paid over to the county as in provided in

this section.

(b) 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 clause (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 clause (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 clause (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 clause (4), a five per centum

fee shall be paid to the county for collecting the tax.

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

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

set forth in clauses (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 clause (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 clauses (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 clause

(2).

(ii) Second:

(A) to the trustee for the bonds in accordance with the

provisions of the indenture pursuant to which the bonds are

2016/90MSP/HB0794A06516 - 4 -

issued, to be used for the payment of debt service on the bonds;

and

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

clause (1).

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

(4.1) Clause (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, which shall be deposited by the

municipality and used for the purposes as provided in clause

(2).

electing to impose the tax authorized under this section is

directed to collect the tax and to deposit the revenue in a

special fund established solely for purposes of travel and

tourism promotion and advertising related to travel and tourism

promotion. The treasurer is authorized to establish rules and

regulations concerning the collection of the tax.

(d) (1) In counties of the second class, expenditures from

the fund established under subsection (b) shall be used for all

purposes which a public authority may determine to be reasonably

necessary to the support, operation and maintenance of a

convention center or exhibition hall, including the following:

(i) Advertising and publicizing tourist attractions in the

area served by the recognized tourist promotion agency.

(ii) Promoting and otherwise encouraging the use of the

facilities in the area served by the recognized tourist

promotion agency by the public as a whole.

(iii) Promoting and attracting conventions, exhibitions and

other functions to utilize facilities in the area served by the

recognized tourist promotion agency.

(iv) Precompletion advertising and publicizing of any

convention center or exhibition hall.

(v) Promoting and attracting conventions, exhibitions and

other functions to utilize the convention center or exhibition

hall.

(vi) Promoting and otherwise encouraging the use of the

premises by the public as a whole or any segment of the public.

(vii) Operating, furnishing and otherwise maintaining and

equipping the premises and realty appurtenant to the premises.

(viii) Furnishing and equipping the building and grounds.

(2) It is the intention of this subsection that the receipts

from any tax imposed under this section after payment of the

distributions under subsection (b)(1), (2), (2.1), (3) and (4)

2016/90MSP/HB0794A06516 - 5 -

be used in the county to offset the entire operating deficit, if

any, of any convention center or exhibition hall including

equally, shares of any cooperating political subdivision or

agency of government incurred pursuant to any agreement. The

operating deficit shall be determined by the public authority

which is the designated operating agency of the convention

center or exhibition hall.

(e) (1) In counties of the second class A, expenditures from

the fund established under subsection (c) shall be annually

appropriated by the county commissioners for tourist promotion

activities, to be executed by the recognized tourist promotion

agency for the following:

(i) Marketing the area served by the recognized tourist

promotion agency as a leisure travel destination.

(ii) Marketing the area served by the recognized tourist

promotion agency as a convention, business or meeting travel

destination.

(iii) Marketing the area served by the recognized tourist

promotion agency to the public as a whole for use of its tourist

and convention facilities.

(iv) Using all appropriate marketing tools to accomplish

these purposes, including advertising, publicity, publications,

direct marketing, sales, technology and participation in

industry trade shows that attract tourists or travelers to the

area served by the recognized tourist promotion agency.

(v) Programs, expenditures or grants that directly and

substantially relate to tourism or a business, convention or

meeting travel destination within a county of the second class

A, that augment and do not compete with private sector tourism

or travel efforts and that improve and expand a county of the

second class A as a destination market as deemed necessary by

the recognized tourist promotion agency. The following shall

apply to grants awarded under this subclause:

(A) Grants shall have a cash or in-kind local match of at

least twenty-five per centum.

(B) Grants may not be used for signage that promotes a

specific private entity on the situs of the entity, except where

the signage carries the logo of a recognized tourist promotion

agency.

(vi) Any other tourism or travel marketing or promotion

program, expenditure or project that does not compete with

private sector tourism or efforts as deemed necessary by the

recognized tourist promotion agency.

(2) For the purposes of defraying the costs associated with

the collection of the tax imposed under this section and

otherwise performing their obligations under this section, the

county commissioners of a county of the second class A may

deduct and retain an administrative fee from the taxes collected

under this section. The administrative fee shall be established

by the county of the second class A and shall not exceed four

per centum of the taxes collected in any taxable year.

2016/90MSP/HB0794A06516 - 6 -

(3) As determined by a county of the second class A in

consultation with the recognized tourist promotion agency, an

audited report or financial statement of the income and

expenditures incurred by a recognized tourist promotion agency

receiving revenue from the tax authorized under this section

shall be submitted annually by the recognized tourist promotion

agency to the county commissioners.

(4) A penalty of one and one-half per centum per month shall

be imposed upon the operator of a hotel in a county of the

second class A for failure to timely collect and remit the tax

authorized by this section. In addition to other remedies

available for collection of debts, a county of the second class

A may file a lien upon the hotel in the name of the county and

for the use of the county as provided by law.

(f) (1) The provisions of this section relating to counties

of the second class shall remain in force from year to year. The

following apply:

(i) Revenue in excess of amounts needed to pay the

distributions under subsection (b.1)(1), (2), (2.1), (3) and (4)

and to offset operating deficits under subsections (b.1)(3) and

(d) shall be determined by the public authority and may be

accumulated.

(ii) At the discretion of the cooperating political

subdivisions and the public authority, any revenue may be used

to:

(A) provide part or all of an annual payment to be paid by a

county or a political subdivision under an agreement with a

public authority created under the act of July 29, 1953

(P.L.1034, No.270), known as the "Public Auditorium Authorities

Law," which has been designated as the operating agency for a

convention center or exhibition hall; or

(B) effect necessary expansion or further capital

improvements.

(2) The provisions of this section relating to counties of

the second class A shall remain in force and effect for three

years from February 14, 1986, and may be continued thereafter by

ordinance or resolution of the county commissioners of the

respective counties.

(g) Each taxable year for a tax imposed under this section

shall run concurrently with the calendar year.

(h) The following words and phrases when used in this

section shall have the meanings given to them in this subsection

unless the context clearly indicates otherwise:

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

cash, credits, property or other payment received by operators

in exchange for or in consideration of the use or occupancy by a

transient of a room in a hotel for a temporary period.

"Convention center or exhibition hall." A building or series

of buildings:

(1) at least one of which contains a minimum of 75,000 gross

square feet of exhibition space for shows and conventions;

2016/90MSP/HB0794A06516 - 7 -

(2) which are not used for the retail sale of merchandise or

part of any shopping center, mall or other retail center; and

(3) a major function of which is to house meetings,

exhibitions, shows, conventions, assemblies, convocations and

similar gatherings. The term includes land appurtenant to the

building or buildings.

"Cooperating political subdivision or agency of government."

A city or public authority located in a county:

(1) within the boundaries of which a convention center or

exhibition hall is planned or constructed; and

(2) which shares with the county duties, obligations or

privileges with respect to that convention center.

"Hotel." A hotel, motel, inn, guesthouse, rooming house, bed

and breakfast, homestead or other structure which holds itself

out by any means, including advertising, license, registration

with an innkeepers' group, convention listing association,

travel publication or similar association or with a government

agency, as being available to provide overnight lodging for

consideration to persons seeking temporary accommodation; any

place which advertises to the public at large or any segment

thereof that it will provide beds, sanitary facilities or other

space for a temporary period to members of the public at large;

any place recognized as a hostelry. The term does not include

any charitable institution, or portion of a facility that is

devoted to persons who have an established permanent residence

or a college or university student residence hall currently

occupied by students enrolled in a degree program, an

educational or religious institution camp for children, hospital

or nursing home.

"Municipality." Notwithstanding 53 Pa.C.S. § 8401 (relating

to definitions), a township or borough or a home rule

municipality which was formerly a township or borough.

"Occupancy." The use or possession or the right to the use

or possession by any person other than a permanent resident of a

room in a hotel for any purpose or the right to the use or

possession of the furnishings or to the services accompanying

the use and possession of the room.

"Operating deficit." The excess of expenses over receipts

from the operation and management of a convention center or

exhibition hall.

"Operator." Any individual, partnership, nonprofit or

profit-making association or corporation or other person or

group of persons that maintain, operate, manage, own, have

custody of or otherwise possess the right to rent or lease

overnight accommodations in a hotel to the public for

consideration.

"Patron." A person that pays the consideration for the

occupancy of a room in a hotel.

"Permanent resident." An individual who has occupied or has

the right to occupancy of a room in a hotel as a patron or

otherwise for a period exceeding thirty consecutive days.

2016/90MSP/HB0794A06516 - 8 -

"Recognized tourist promotion agency." The nonprofit

corporation, organization, association or agency which is

engaged in planning and promoting programs designed to stimulate

and increase the volume of tourist, visitor and vacation

business within a county and certified by the county pursuant to

the act of July 4, 2008 (P.L.621, No.50), known as the "Tourism

Promotion Act."

"Regional tourist promotion activities." Services,

activities, facilities and events, which result in a significant

number of nonresidents visiting a county of the second class for

recreational, cultural or educational purposes.

"Room." A space in a hotel set aside for use and occupancy

by patrons, or otherwise, for consideration, having at least one

bed or other sleeping accommodation.

"Substantial completion." Construction which is sufficiently

completed in accordance with contract documents and certified by

the convention center authority's architect or engineer, as

modified by change orders so that:

(1) the main convention area can be used, occupied or

operated for its intended use; and

(2) at least 90 per centum of the work on the main

convention or exhibition area is complete.

"Temporary." A period of time not exceeding thirty

consecutive days.

"Transaction." The activity involving the obtaining by a

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

which consideration emanates to the operator under an express or

an implied contract.

"Transient." An individual who obtains accommodation in any

hotel for himself by means of registering at the facility for

the temporary occupancy of any room for the personal use of that

individual by paying to the operator of the facility a fee in

consideration for the accommodation.

Amend Bill, page 17, line 24, by striking out "3" and

inserting

Amend Bill, page 18, by inserting between lines 3 and 4

Section 5. Repeals are as follows:

(1) The General Assembly declares that the repeal under

paragraph (2) is necessary to effectuate the addition of

section 1770.12.

(2) Section 8721 of Title 53 of the Pennsylvania

Consolidated Statutes is repealed.

(3) All acts and parts of acts are repealed insofar as

they are inconsistent with this act.

Section 6. The addition of section 1770.12 is a continuation

of 53 Pa.C.S. § 8721. Except as otherwise provided in section

2016/90MSP/HB0794A06516 - 9 -

1770.12, all activities initiated under 53 Pa.C.S. § 8721 shall

continue and remain in full force and effect and may be

completed under section 1770.12. Orders, regulations, rules and

decisions which were made under 53 Pa.C.S. § 8721 and which are

in effect on the effective date of section 1770.12 shall remain

in full force and effect until revoked, vacated or modified

under section 1770.12. Contracts, obligations and collective

bargaining agreements entered into under 53 Pa.C.S. § 8721 are

not affected by the repeal of 53 Pa.C.S. § 8721.

Amend Bill, page 18, line 4, by striking out "4" and

inserting

2016/90MSP/HB0794A06516 - 10 -