PRIOR PRINTER'S NOS. 3225, 3569               PRINTER'S NO. 3777

THE GENERAL ASSEMBLY OF PENNSYLVANIA


HOUSE BILL

No. 2330 Session of 1986


        INTRODUCED BY F. TAYLOR, BATTISTO, L. E. SMITH, BELARDI, STUBAN,
           MOEHLMANN, AFFLERBACH, NOYE, LUCYK, FARGO, HONAMAN, PETRONE,
           BRANDT, BOWSER, DORR AND BLAUM, APRIL 8, 1986

        AS AMENDED ON THIRD CONSIDERATION, HOUSE OF REPRESENTATIVES,
           JUNE 25, 1986

                                     AN ACT

     1  Amending the act of April 28, 1961 (P.L.111, No.50), entitled
     2     "An act providing for assistance to agencies promoting
     3     tourist travel and vacation business in Pennsylvania;
     4     authorizing the Department of Commerce to make grants and
     5     provide assistance to properly designated tourist promotion
     6     agencies; conferring powers and imposing duties on the
     7     governing bodies of certain political subdivisions," adding
     8     definitions; and further providing for grants to tourist
     9     promotion agencies.

    10     The General Assembly of the Commonwealth of Pennsylvania
    11  hereby enacts as follows:
    12     Section 1.  Section 3 of the act of April 28, 1961 (P.L.111,
    13  No.50), known as the Tourist Promotion Law, is amended to read:
    14     Section 3.  Definitions.--[The term "governing bodies" shall
    15  mean as to any county, city, borough, town or township, the body
    16  empowered to enact ordinances or to adopt resolutions for the
    17  governance of such county, city, borough, town or township.
    18     The term "tourist promotion agency" shall mean any nonprofit
    19  corporation, organization, association or agency which shall be
    20  designated by ordinance in cities of the first class and by


     1  proper resolution of the governing body of any county concurred
     2  in by resolution of the governing bodies of cities, boroughs,
     3  towns or townships within said county having in the aggregate
     4  over fifty per centum of the population of said county, as
     5  determined by the last preceding decennial United States Census,
     6  as the agency authorized to make application to and receive
     7  grants from the Department of Commerce of the Commonwealth for
     8  the purposes specified in this act. Any two or more counties
     9  may, by the procedures herein provided, designate a single
    10  tourist promotion agency to represent such counties for the
    11  purposes of this act.] The following words and phrases when used
    12  in this act shall have the meanings given to them in this
    13  section unless the context clearly indicates otherwise:
    14     "County tourist promotion agency."  A nonprofit corporation,
    15  organization, association or agency which is designated by
    16  ordinance in cities of the first class and by proper resolution
    17  of the governing body of a county, concurred in by resolution of
    18  the governing bodies of cities, boroughs, towns or townships
    19  within the county which have an aggregate of more than fifty per
    20  centum of the total population of the county, as determined by
    21  the most recently completed decennial United States Census, as
    22  the agency authorized to make application to and receive grants
    23  from the Department of Commerce of the Commonwealth for the
    24  purpose of representing a single governmental entity in
    25  accordance with this act, except as otherwise provided in
    26  section 3(5).
    27     "Department."  The Department of Commerce of the
    28  Commonwealth.
    29     "Eligible costs."  Expenses incurred by a tourist promotion
    30  agency in connection with advertising and promotional
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     1  activities, including, but not limited to, consultants and
     2  contractual services, travel, postage, printing and
     3  reproduction, advertising, promotion and public relations. The
     4  term does not include overhead expenses, salaries, benefits,
     5  wages, rent, utilities, office supplies, insurance and vehicle
     6  expenses.
     7     "Governing bodies."  The elected unit empowered to enact
     8  ordinances or adopt resolutions in order to govern a particular
     9  county, city, borough, town or township.
    10     "Governmental entity."  A city of the first class or a
    11  county.
    12     "Regional tourist promotion agency."  A nonprofit
    13  corporation, organization, association or agency which is
    14  designated in accordance with the provisions of section 3(1) as
    15  the agency to make application to and receive grants from the
    16  department for the purpose of representing any of the following
    17  in accordance with this act:
    18         (1)  Two or more governmental entities.
    19         (2)  Allegheny County.
    20         (3)  Philadelphia County.
    21     "Tourist promotion agency."  Either a county or regional
    22  tourist promotion agency, as defined in this section.
    23     Section 2.  Section 5 of the act, amended July 20, 1974
    24  (P.L.581, No.200), is amended to read:
    25     Section 5.  Applications for and Approval of Grants to
    26  Tourist Promotion Agencies.--[The Department of Commerce is
    27  hereby authorized to make grants to recognized tourist promotion
    28  agencies, to assist such agencies in the financing of their
    29  operational costs for the purposes of making studies, surveys
    30  and investigations and in planning and carrying out of their
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     1  promotional programs and projects: Provided, That before any
     2  such grant may be made:
     3     (1)  The tourist promotion agency shall have made application
     4  to the Department of Commerce for such grant, and shall have
     5  therein set forth the studies, surveys and investigations
     6  proposed to be made, and the promotional program and projects
     7  proposed to be undertaken for the purpose of encouraging and
     8  stimulating tourist, visitor and vacation business in the county
     9  or counties. The application shall further state, under oath or
    10  affirmation, with evidence thereof satisfactory to the
    11  department, the amount of funds held by or committed or
    12  subscribed to the tourist promotion agency for application to
    13  the purposes herein described and the amount of the grant for
    14  which application is made; and
    15     (2)  The Department of Commerce, after review of the
    16  application, if satisfied that the program of the tourist
    17  promotion agency appears to be in accord with the purposes of
    18  this act, shall authorize the making of a matching grant to such
    19  tourist promotion agency equal to funds of the agency allocated
    20  by it to the program described in its application: Provided,
    21  however, That such State grant shall not exceed an amount equal
    22  to one-tenth of one dollar for each inhabitant of the city,
    23  county or counties represented by such agency as determined by
    24  the last preceding decennial United States Census or an amount
    25  equal to the local funds expended by such agency for tourist
    26  promotion in the previous fiscal year, whichever is greater:
    27  Provided, That no tourist promotion agency shall be eligible for
    28  more than twenty per centum of the appropriation to the
    29  Department of Commerce for the purposes set forth in this act.
    30  Any funds appropriated and eligible for allocation which a
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     1  tourist promotion agency has not certified will be used by March
     2  1 of any fiscal year shall be redistributed to the tourist
     3  promotion agencies which show adequate documentation that such
     4  funds can be utilized for projects initiated in the present
     5  fiscal year and that such funds so redistributed shall be
     6  considered encumbered for the purposes set forth in this act.]
     7     (a)  The department is hereby authorized to make grants to
     8  recognized tourist promotion agencies to assist the agencies in
     9  the financing of their operational costs for the purposes of
    10  making studies, surveys and investigations and in planning and
    11  carrying out of their promotional programs and projects.
    12     (b)  Before any such grant may be made:
    13     (1)  The tourist promotion agency shall apply to the
    14  department for the grant. In the application, the tourist
    15  promotion agency shall set forth the studies, surveys and
    16  investigations proposed to be made and the promotional program
    17  and projects proposed to be undertaken for the purpose of
    18  encouraging and stimulating tourist, visitor and vacation
    19  business in the county or counties. The application shall
    20  further state, under oath or affirmation, with evidence
    21  satisfactory to the department, the amount of funds held by or
    22  committed or subscribed to the tourist promotion agency for
    23  application to the purposes herein described and the amount of
    24  the grant for which application is made.
    25     (2)  The department, after reviewing the application, if
    26  satisfied that the program of the tourist promotion agency
    27  appears to be in accord with the purposes of this act, shall
    28  authorize the making of a matching grant to the tourist
    29  promotion agency equal to:
    30     (i)  In the case of a regional tourist promotion agency, two
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     1  and one-quarter times the funds which the agency allocates to
     2  eligible costs incurred in connection with the program described
     3  in its application.
     4     (ii)  In the case of a county tourist promotion agency, two
     5  times the funds which the agency allocates to eligible costs
     6  incurred in connection with the program described in its
     7  application.
     8     (c)  An awarded grant shall not exceed the greater of the
     9  following:
    10     (1)  An amount equal to one-tenth of one dollar for each
    11  inhabitant of the city, county or counties represented by the
    12  agency as determined by the last preceding decennial United
    13  States Census.
    14     (2)  An amount equal to either of the following:
    15     (i)  In the case of a regional tourist promotion agency, two
    16  and one-quarter times the local funds expended by the agency for
    17  eligible costs in the previous fiscal year.
    18     (ii)  In the case of a county tourist promotion agency, two
    19  times the local funds expended by the agency for eligible costs
    20  in the previous fiscal year.
    21     (d)  No tourist promotion agency shall be eligible for more
    22  than thirty per centum of the appropriation to the department
    23  for the purposes set forth in this act.
    24     (e)  Funds appropriated and eligible for allocation which a
    25  tourist promotion agency has not certified will be used by March
    26  1 of the fiscal year shall be redistributed to the tourist
    27  promotion agencies which show adequate documentation that the
    28  funds can be utilized for projects initiated in the present
    29  fiscal year and that the funds so redistributed shall be
    30  considered encumbered for the purposes set forth in this act.
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     1     Section 3.  The act is amended by adding a section to read:
     2     Section 5.1.  Funding.--In order to fund eligible costs of
     3  cooperative marketing projects undertaken by two or more
     4  recognized tourist promotion agencies, the department shall set
     5  aside five per centum of the annual appropriation to the
     6  department appropriated to carry out the provisions of this act.
     7  Grants for these projects shall be made in accordance with
     8  section 5 and shall be in addition to other grants made to carry
     9  out the provisions of that section, except that funds set aside
    10  under this section which have not been allocated to a
    11  cooperative marketing project by January 1 of a fiscal year
    12  shall be distributed to eligible tourist promotion agencies to
    13  fund eligible costs.
    14     Section 4.  Tourist promotion agencies that can demonstrate
    15  to the Department of Commerce that they cannot carry out their
    16  obligated assignments without overhead expenses, salaries,
    17  benefits, wages, rent, utilities, office supplies, insurance and
    18  vehicle expenses, and without receiving matching funds for these
    19  purposes, shall continue to be eligible for grants under the
    20  provisions of the act in effect prior to this amendatory act for
    21  up to a period of two years after the effective date of this
    22  amendatory act. During this two-year period, any such tourist     <--
    23  promotion agency must show progress toward aligning itself with
    24  one or more counties. At the end of said two-year period, all
    25  grants to tourist promotion agencies shall be in accordance with
    26  this amendatory act.
    27     Section 5.  This act shall take effect July 1, 1986.


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