Regular Session 2017-2018 House Bill 0520 P.N. 0544

PRINTER'S NO. 544

THE GENERAL ASSEMBLY OF PENNSYLVANIA

HOUSE BILL

No.

520

Session of

2017

INTRODUCED BY MUSTIO, DERMODY, ENGLISH, LONGIETTI, ORTITAY,

MATZIE, MOUL, DEASY, DIAMOND, BRIGGS, A. HARRIS, KULIK,

EVANKOVICH, D. COSTA, RAVENSTAHL, READSHAW, KORTZ, GERGELY,

FRANKEL, DeLUCA, NEILSON, D. MILLER AND P. COSTA,

FEBRUARY 15, 2017

REFERRED TO COMMITTEE ON TOURISM AND RECREATIONAL DEVELOPMENT,

FEBRUARY 15, 2017

AN ACT

Authorizing a tourism promotion fee for counties of the second

class; providing for Second Class County Tourism Promotion

Fund and for distribution of money from the Second Class

County Tourism Promotion Fund; and establishing the Sports

Commission in a county of the second class.

The General Assembly of the Commonwealth of Pennsylvania

hereby enacts as follows:

Section 1. Short title.

This act shall be known and may be cited as the Second Class

County Tourism Promotion Fee Act.

Section 2. Definitions.

The following words and phrases when used in this act shall

have the meanings given to them in this section unless the

context clearly indicates otherwise:

"Commission." The Sports Commission established under

section 6(a).

"Consideration." A receipt, fee, charge, rental, lease,

cash, credit, property of any kind or nature or other payment

received by an operator in exchange for or in consideration of

the use or occupancy by a transient of a room in a hotel for any

temporary period.

"Convention center or exhibition hall." A building that:

(1) is not used for the retail sale of merchandise or

part of a shopping center, mall or other retail center,

including any land appurtenant to a part of the shopping

center, mall or other retail center;

(2) has a major function of housing meetings,

exhibitions, shows, conventions, assemblies, convocations or

other similar gatherings; and

(3) contains no less than 300,000 gross square feet of

exhibition space for shows and conventions.

"Fund." The Second Class County Tourism Promotion Fund

established under section 4(a).

"Hotel."

(1) As follows:

(i) a hotel, motel, inn, guest house or other

building located within the taxing jurisdiction which

holds itself out by any means, including advertising,

license, registration with any innkeeper's group,

convention listing association, travel publication or

similar association or with any government agency as

being available to provide overnight lodging or use of

facility space for consideration to persons seeking

temporary accommodation;

(ii) a place which advertises to the public at large

that it will provide beds, sanitary facilities or other

space for a temporary period to members of the public at

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large; or

(iii) a place recognized as a hostelry.

(2) The term does not include portions of a facility

which are devoted to persons who have established permanent

residence at the facility.

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

or possession by a 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.

"Operator." An individual, a partnership, nonprofit or

profit-making association or corporation or other person or

group of persons that maintains, operates, manages, owns, has

custody of or otherwise possesses the right to rent or lease

overnight accommodations in a hotel to the public for

consideration.

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

occupancy of a room in a hotel.

"Permanent resident." A person who has occupied or has the

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

for a period of more than 30 consecutive days.

"Regional tourism promotion agency." As defined under 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 which has at least one

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bed or other sleeping accommodation.

"Temporary." A period of time of no more than 30 consecutive

days.

"Tournament." An organized amateur sporting event consisting

of participants who are engaged without remuneration in

regional, State and national sporting activities, which

encourage travel for overnight lodging in a county of the second

class.

"Transaction." An 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 a

hotel by means of registering at the facility for the temporary

occupancy of a room for the personal use of the individual by

paying to the operator of the facility a fee in consideration

for the accommodation.

Section 3. Second class county tourism promotion fee.

A county of the second class may impose a tourism promotion

fee of no more than 2% on the consideration received by an

operator of a hotel within the county from a transaction of

renting a room to accommodate a transient. The operator shall

collect the fee authorized under this section from the patron of

the room and transmit the fee to the county.

Section 4. Second Class County Tourism Promotion Fund.

(a) Tourism promotion fund.--A county of the second class

opting to impose the fee under section 3 shall establish a

Second Class County Tourism Promotion Fund as a special fund in

the county treasury.

(b) Deposits.--The treasurer of a county of the second class

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opting to impose the fee under section 3 shall collect the fee

and deposit the money in the fund.

promotion fee shall make annual audited reports of the receipts

and expenditures of such funds to the county executive,

president of county council, county controller, county

treasurer, President pro tempore of the Senate, Speaker of the

House of Representatives, Minority Leader of the Senate and

Minority Leader of the House of Representatives.

(d) Audits.--The county controller of a county of the second

class may conduct audits of the use of funds generated by the

tourist promotion fee.

Section 5. Distribution of money.

(a) Reserve fund deposit.--

(1) Before money in the fund established under section

4(a) is distributed under subsection (b), 10% of the money in

the fund shall be deposited in a sports commission reserve

fund established by a sports commission in a county of the

second class.

(2) The amount deposited under paragraph (1) shall not

exceed the following:

(i) Three million dollars.

(ii) The amount specified under subparagraph (i) as

adjusted for inflation annually according to the Consumer

Price Index for All Urban Consumers.

(b) Distribution.--The money in the fund shall be

distributed by the treasurer of a county of the second class as

follows:

(1) Two percent to a home rule charter municipality

where a recognized tourist promotion agency is established by

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the home rule charter municipality in a county of the second

class, at the request of that municipality, shall be returned

to that municipality for deposit in that municipality's

special fund, which is separate from all other municipal

revenue and 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, meetings and visitors within the municipality.

Money under this paragraph shall be used for, but not limited

to, the following purposes:

(i) Capital improvements and advertising the area

served by the recognized tourist promotion agency as a

convention and business travel destination.

(ii) Marketing and advertising the area served by

the recognized tourist promotion agency as a convention

and business travel destination.

(iii) Marketing and advertising the area served by

the recognized tourist promotion agency to the public as

a whole for use of its tourist and convention facilities.

(iv) Marketing and advertising the area served by

the recognized tourist promotion agency as a leisure

travel destination.

(v) Using all appropriate marketing and advertising

tools to accomplish the purposes designated under

subparagraphs (i), (ii), (iii) and (iv), including, but

not limited to, advertising, publicity, publications,

direct marketing, direct sales and participating in

travel trade shows.

(2) Ten percent to the film office that is recognized by

the Association of Film Commissioners International which is

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located in a county of the second class to grow the regional

film industry for the purpose of attracting movie, television

and commercial productions through marketing initiatives.

(3) Eighteen percent to the Sports and Exhibition

Authority established under Article XXV-A of the act of July

28, 1953 (P.L.723, No.230), known as the Second Class County

Code, for capital improvements to a convention center or

exhibition hall located in a city of the second class,

including all of the following:

(i) Capital cosmetic improvements to enhance the

convention and sports experience for clients.

(ii) The purchase and maintenance of physical

improvements, including, but not limited to, permanent

marquees, integrated electronic informational boards and

signage, event signage, stadium-style seating, multiuse

sports courts and related assets to include NCAA-quality,

tournament-ready equipment for various sports, including,

but not limited to, basketball, volleyball, soccer,

lacrosse and other sports assets and equipment that would

attract additional events.

(iii) Upgrades to programmable space that enhance

the customer experience through improved functionality,

aesthetics and upgraded technology.

(4) Twenty-two percent to a regional tourism promotion

agency in a city of the second class for the purpose of

establishing a sports commission in a county of the second

class.

(5) Twenty-five percent to a regional tourism promotion

agency in a city of the second class for the purpose of

establishing a convention promotion and marketing fund. The

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regional tourism promotion agency shall use the money in the

convention promotion and marketing fund for, but not limited

to, any of the following purposes:

(i) Securing future meetings and conventions for a

convention center or exhibition hall in a city of the

second class that provides for the use of multiple

hotels.

(ii) Transportation associated with the production

of meetings and conventions held within a county of the

second class.

(iii) Operating costs associated with the production

of meetings and conventions held within a county of the

second class.

(6) Five percent to the treasurer of a county of the

second class for costs of collecting the tourism promotion

fee under section 4(b).

(7) Eighteen percent to the Sports Commission

established under section 6(a) for regional tourist promotion

activities. The revenue shall be used by the commission for

any of the following purposes in a county of the second

class:

(i) Construction, upgrades and maintenance of

amateur sports-related tournament locations in parks

throughout a county of the second class to a standard

which would attract hosting of regional, State and

national sporting tournaments.

(ii) Swimming pool upgrades for competitive

tournament-level events in parks owned by a county of the

second class.

(iii) Enhancing the marketability of sports-related

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events in parks owned by a county of the second class to

a standard which would attract hosting of regional, State

and national sporting tournaments.

(1) An entity that received money under subsection (b)

may deposit any unused money received by the entity under

subsection (b) in a fiscal year into a reserve account in the

county treasury of a county of the second class.

(2) Money in the reserve account under paragraph (1) may

be withdrawn by the entity that deposited the money for the

purposes specified under subsection (b) for subsequent fiscal

years.

Section 6. Sports Commission.

(a) Establishment.--The Sports Commission is established in

a county of the second class.

(b) Members.--The commission shall consist of, but not be

limited to, the following members:

(1) The county executive or the county executive's

designee, who resides in a county of the second class.

(2) The mayor of a city of the second class, or the

mayor's designee, who resides in a county of the second

class.

(3) One member appointed by the President pro tempore of

the Senate, who resides in a county of the second class.

(4) One member appointed by the Speaker of the House of

Representatives, who resides in a county of the second class.

(5) One member appointed by the Minority Leader of the

Senate, who resides in a county of the second class.

(6) One member appointed by the Minority Leader of the

House of Representatives, who resides in a county of the

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second class.

(7) Five members appointed by the recognized regional

tourism promotion agency of a county of the second class.

(8) Four members representing hotels and lodging

appointed by the recognized hotel association located in a

county of the second class.

(9) Three members representing professional sports

franchise teams located in the county of the second class,

which shall include the following:

(i) One member from the National Football League.

(ii) One member from the National Hockey League.

(iii) One member from Major League Baseball.

(10) Three members representing Division I sports

programs, as identified by the National Collegiate Athletic

Association (NCAA), from colleges or universities located in

a county of the second class, to be appointed by those NCAA

Division I sports programs.

conduct business.

(d) Executive committee.--The commission shall establish an

executive committee not to exceed 11 members.

(e) Meetings.--The commission shall meet at least annually

and from time to time as it determines necessary.

(f) Powers and duties.--The commission shall appropriate the

revenue distributed under section 5(b)(7).

Section 7. Effective date.

This act shall take effect in 90 days.

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