H. B. 2490


(By Delegates Campbell and Canterbury)
[Introduced January 22, 2003; referred to the
Committee on Finance.]




A BILL to amend and reenact section fourteen, article eighteen, chapter seven of the code of West Virginia, one thousand nine hundred thirty-one, as amended, relating to expanding permissible expenditures from the hotel occupancy tax proceeds to include library or other educational facility construction; setting a funding limitation for such construction; and, setting forth various criteria that must be met within a county before the funding may be provided.

Be it enacted by the Legislature of West Virginia:
That section fourteen, article eighteen, chapter seven of the code of West Virginia, one thousand nine hundred thirty-one, as amended, be amended and reenacted to read as follows:
 ARTICLE 18. HOTEL OCCUPANCY TAX.
§7-18-14. Proceeds of tax; application of proceeds.

(a) Application of proceeds. -- The net proceeds of the tax collected and remitted to the taxing authority pursuant to this article shall be deposited into the general revenue fund of such the municipality or county commission and, after appropriation thereof, shall be expended only as provided in subsections (b) and (c) of this section.
(b) Required expenditures. -- At least fifty percent of the net revenue receivable during the fiscal year by a county or a municipality pursuant to this article shall be expended in the following manner for the promotion of conventions and tourism:
(1) Municipalities. -- If a convention and visitor's bureau is located within the municipality, county or region, the governing body of such the municipality shall appropriate the percentage required by this subsection to that bureau. If a convention and visitor's bureau is not located within such the municipality, county or region, then the percentage appropriation required by this subsection shall be appropriated as follows:
(i) Any hotel located within such the municipality, county or region may apply to such the municipality for an appropriation to such the hotel of a portion of the tax authorized by this article and collected by such the hotel and remitted to such the municipality, for uses directly related to the promotion of tourism and travel, including advertising, salaries, travel, office expenses, publications and similar expenses. The portion of such tax allocable to such the hotel shall not exceed seventy-five percent of that portion of such the tax collected and remitted by such the hotel which is required to be expended pursuant to this subsection: Provided, That prior to appropriating any moneys to such the hotel such the municipality shall require the submission of, and give approval to, a budget setting forth the proposed uses of such the moneys.
(ii) If there is more than one convention and visitor's bureau located within a municipality, county or region, the city council may allocate the tax authorized by this article to one or more of such the bureaus in such a portion as the city council in its sole discretion determines. If there is one entity that provides in excess of one million dollars in taxes, then the county commission will allocate all tax revenues of that entity.
(iii) The balance of net revenue required to be expended by this subsection shall be appropriated to the regional travel council serving the area in which the municipality is located.
(2) Counties. -- If a convention and visitor's bureau is located within a county or region, the county commission shall appropriate the percentage required by this subsection to that convention and visitor's bureau. If a convention and visitor's bureau is not located within such the county or region, then the percentage appropriation required by this subsection shall be appropriated as follows:
(i) Any hotel located within such the county or region may apply to such the county for an appropriation to such the hotel of a portion of the tax authorized by this article and collected by such the hotel and remitted to such the county, for uses directly related to the promotion of tourism and travel, including advertising, salaries, travel, office expenses, publications and similar expenses. The portion of such tax allocable to such the hotel shall not exceed seventy-five percent of that portion of such the tax collected and remitted by such the hotel which is required to be expended pursuant to this subsection: Provided, That prior to appropriating any moneys to such the hotel such the county shall require the submission of, and give approval to, a budget setting forth the proposed uses of such the moneys.
(ii) If there is more than one convention and visitor's bureau located within a county or region, the county commission may allocate the tax authorized by this article to one or more of such the bureaus in such a portion as the county commission in its sole discretion determines.
(iii) The balance of net revenue required to be expended by this subsection shall be appropriated to the regional travel council serving the area in which the county is located.
(3) Legislative finding. -- The Legislature hereby finds that the support of convention and visitor's bureaus, hotels and regional travel councils is a public purpose for which funds may be expended. Local convention and visitor's bureaus, hotels and regional travel councils receiving funds under this subsection may expend such the funds for the payment of administrative expenses, and for the direct or indirect promotion of conventions and tourism, and for any other uses and purposes authorized by subdivisions (1) and (2) of this subsection.
(c) Permissible expenditures. -- After making the appropriation required by subsection (b) of this section, the remaining portion of the net revenues receivable during the fiscal year by such the county or municipality, pursuant to this article, may be expended for one or more of the purposes set forth in this subsection, but for no other purpose. The purposes for which expenditures may be made pursuant to this subsection are as follows:
(1) The planning, construction, reconstruction, establishment, acquisition, improvement, renovation, extension, enlargement, equipment, maintenance, repair and operation of publicly owned convention facilities, including, but not limited to, arenas, auditoriums, civic centers and convention centers;
(2) The payment of principal or interest or both on revenue bonds issued to finance such the convention facilities;
(3) The promotion of conventions;
(4) The construction, operation or maintenance of public parks, tourist information centers and recreation facilities (including land acquisition);
(5) The promotion of the arts;
(6) Historic sites;
(7) Beautification projects; or
(8) Medical care, in an amount not exceeding one hundred thousand dollars, in any county where: (i) There is an urgent necessity to preserve the delivery of acute medical care services; (ii) there is an increase in need for acute medical care services directly related to tourism; (iii) recurrent flooding in the county significantly disrupts, on a periodic basis, the delivery of acute medical care services; (iv) there is an inadequate economic base within the county from any source other than tourism to preserve the delivery of acute medical care services; (v) there is an inadequate economic base directly related to low population in the county, specifically, a population of less than ten thousand persons according to the census of the year one thousand nine hundred ninety; and (vi) there is one and only one hospital within the county; and the county commission makes specific findings, by resolution, that all of the foregoing conditions within the county exist; or
(9) Construction of a library or other facility to be used for educational purposes, in an amount not exceeding one hundred thousand dollars, in any county where: (i) There exists a postsecondary institution of higher learning, or a branch campus thereof, with at least three hundred full-time equivalent students; (ii) there exists an organized library that is willing to consolidate facilities with the institution of higher learning; (iii) the revenue received pursuant to the tax imposed in this article is at least five hundred thousand dollars from a single hotel or motel source; and (iv) the county commission makes specific findings, by resolution, that all of the foregoing conditions within the county exist. The one hundred thousand dollars provided by this provision shall come only from the entity, whether county or municipal, that has taxing authority over the one hotel or motel that provides at least five hundred thousand dollars in tax pursuant to this article. The amount provided pursuant to this subsection can be used to service debt that was incurred to construct the library or other educational facility, and this subdivision cannot be repealed or changed so as to affect the repayment of that debt.
(d) Definitions. -- For purposes of this section, the following terms are defined:
(1) Convention and visitor's bureau and visitor's and convention bureau. -- "Convention and visitor's bureau" and "visitor's and convention bureau" are interchangeable and either shall mean a nonstock, nonprofit corporation with a full-time staff working exclusively to promote tourism and to attract conventions, conferences and visitors to the municipality, county or region in which such the convention and visitor's bureau or visitor's and convention bureau is located or engaged in business within.
(2) Convention center. -- "Convention center" means a convention facility owned by the state, a county, a municipality or other public entity or instrumentality and shall include all facilities, including armories, commercial, office, community service and parking facilities and publicly owned facilities constructed or used for the accommodation and entertainment of tourist and visitors, constructed in conjunction with the convention center and forming reasonable appurtenances thereto.
(3) Fiscal year. -- "Fiscal year" means the year beginning the first day of July and ending the thirtieth day of June of the next calendar year.
(4) Net proceeds. -- "Net proceeds" means the gross amount of tax collections less the amount of tax lawfully refunded.
(5) Promotion of the arts. -- "Promotion of the arts" means activity to promote public appreciation and interest in one or more of the arts. It includes the promotion of music for all types, the dramatic arts, dancing, painting and the creative arts through shows, exhibits, festivals, concerts, musicals and plays.
(6) Recreational facilities. -- "Recreational facilities" means and includes any public park, parkway, playground, public recreation center, athletic field, sports arena, stadium, skating rink or arena, golf course, tennis courts and other park and recreation facilities, whether of a like or different nature, that are owned by a county or municipality.
(7) Region. -- "Region" means an area consisting of one or more counties that have agreed by contract to fund a convention and visitor's bureau to promote those counties.
(8) Regional travel council. -- "Regional travel council" means a nonstock, nonprofit corporation, with a full-time staff working exclusively to promote tourism and to attract conventions, conferences and visitors to the region of this state served by the regional travel council.
(9) Historic site. -- "Historic site" means any site listed on the United States national register of historic places, or listed by a local historical landmarks commission, established under state law, when such the sites are owned by a city, a county or a nonprofit historical association and are open from time to time to accommodate visitors.
NOTE: The purpose of this bill is to expand permissible expenditures from the hotel occupancy tax proceeds to include library or other educational facility construction. The bill sets forth a funding limitation of $100,000 while including various criteria that must be met before the proceeds may be used for the intended purpose.

Strike-throughs indicate language that would be stricken from the present law, and underscoring indicates new language that would be added.