SENATE AMENDED

THE GENERAL ASSEMBLY OF PENNSYLVANIA

HOUSE BILL

INTRODUCED BY GINGRICH, BOYD, COHEN, D. COSTA, GEIST, HENNESSEY, M. K. KELLER, KORTZ, MAJOR, MILLER, ROSS, SWANGER, MURT, YOUNGBLOOD, SACCONE AND HARHART, JANUARY 24, 2011

SENATOR EICHELBERGER, LOCAL GOVERNMENT, IN SENATE, AS AMENDED, JUNE 19, 2012   

AN ACT

Amending Title 53 (Municipalities Generally) of the Pennsylvania

Consolidated Statutes, in area government and

intergovernmental cooperation, further providing for review

of agreement by Local Government Commission; 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 2314 of Title 53 of the Pennsylvania

<--

Consolidated Statutes is amended to read:

Section 1.  Sections 2314 and 8721(b) of Title 53 of the

<--

Pennsylvania Consolidated Statutes are amended to read:

§ 2314.  [Review of agreement by Local Government Commission.

Every agreement between a local government and the

Commonwealth, any other state, government of another state or

the Federal Government under the provisions of this subchapter

shall, prior to and as a condition precedent to enactment of an

ordinance, be submitted to the Local Government Commission for

review and recommendation. The commission shall within 60 days

of receipt of the agreement determine whether it is in proper

form and compatible with the laws of this Commonwealth. Failure

of the commission to make recommendations within 60 days of

receipt of the agreement shall constitute a recommendation in

favor of the agreement.] Required review of specified

agreements.

(a)  General rule.--An agreement between a local government

and the Federal Government, the Commonwealth, any other state or

government of another state under the provisions of this

subchapter shall, prior to and as a condition precedent to

enactment of an ordinance, be submitted to the Local Government

Commission for review and recommendation.

(b)  Commission review.--

(1)  The commission shall, within 90 days of receipt of

the agreement, provide to the local government or other party

submitting the agreement an advisory written response of its

review of, and any recommended changes to, the agreement with

regard to form and compatibility with the laws of this

Commonwealth.

(2)  If an agreement has been submitted to the commission

for review as required by this subsection, the failure of the

commission to provide an advisory written response within 90

days of receipt of the agreement shall not bar or impede the

effectiveness or implementation of the agreement.

(c)  Committee review.--

(1)  In all cases involving an agreement between a local

government and the Commonwealth, in addition to the

requirements of subsection (b), the Commonwealth, after

receipt of the commission's advisory written response or

after 90 days have elapsed without a written response from

the commission, whichever is sooner, shall submit the

agreement to the Appropriations Committee of the Senate and

the Appropriations Committee of the House of Representatives

for their review, preparation of a fiscal note and, if deemed

necessary by either committee, a public hearing.

(2)  (i)  Notwithstanding the passage of an ordinance in

accordance with section 2315 (relating to effect of joint

cooperation agreements), no agreement between a local

government and the Commonwealth may be deemed in force

and binding as to either the Commonwealth or a local

government until 180 days have elapsed from the date that

the agreement has been submitted by the Commonwealth to

the committees.

(ii)  The requirements of subparagraph (i) shall not

apply to any agreement necessary to respond to a disaster

emergency or local emergency as those terms are defined

in 35 Pa.C.S. § 7102 (relating to definitions).

(d)  Exceptions.--This section shall not apply to the

following contracts, agreements or transactions:

(1)  Contracts or agreements between a local government

and the Commonwealth that are of a routine nature or are

performed on a periodic basis, such as those for public

improvements or maintenance.

(2)  State grants and loans that are administered by the

Commonwealth pursuant to statute or regulation.

(3)  Contracts or agreements for cooperative purchasing.

(4)  Contracts, agreements or memoranda of understanding

between the Commonwealth and a local government that are

expressly authorized by statute or regulation and by which

the Commonwealth delegates all or a portion of its

enforcement duties or responsibilities to a local government.

(5)  Contracts or agreements between the Commonwealth and

a local government that are expressly authorized by statute

or regulation and through which the local government provides

a service on behalf of the Commonwealth.

(6)  Contracts or agreements relating to the purchase,

<--

right to capacity, sale, exchange, interchange, wheeling,

pooling, transmission or development of electric power and

associated energy and related services.

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

<--

§ 8721.  Hotel room rental.

<--

* * *

(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.]

* * *

Section 2.  This act shall take effect as follows:

(1)  The amendment of 53 Pa.C.S. § 2314 shall take effect

in 60 days.

(2)  The remainder of this act shall take effect

immediately.