PENNSYLVANIA CONVENTION CENTER AUTHORITY ACT - REPEALED — 1986 Pa. Act 70 (historical enacted text)

Historical Act text

PRIOR PRINTER'S NOS. 748, 991, 1237, PRINTER'S NO. 1850
1283
Report of the Committee of Conference
To the Members of the Senate and House of Representatives:
We, the undersigned, Committee of Conference on the part of
the Senate and House of Representatives for the purpose of
considering Senate Bill No. 655, entitled:
"An act making an appropriation from a restricted revenue
account within the General Fund to the Department of State for
use by the Bureau of Professional and Occupational Affairs.
PROVIDING FOR THE CAPITAL BUDGET FOR THE FISCAL YEAR 1985-1986,"
respectfully submit the following bill as our report:
JOHN STAUFFER
FRANK A. SALVATORE
HARDY WILLIAMS
(Committee on the part of the Senate.)
JAMES J. MANDERINO
MAX PIEVSKY
MATTHEW J. RYAN
(Committee on the part of the House of Representatives.)
AN ACT
1 To provide a convention center facility in cities of the first
2 class; creating the Pennsylvania Convention Center Authority;
3 defining its powers and duties; and authorizing a hotel room
4 rental tax.
5 TABLE OF CONTENTS
6 Section 1. Short title.
7 Section 2. Findings and declaration of policy.
8 Section 3. Definitions.
9 Section 4. Authority created.
10 Section 5. Purposes and powers; general.
11 Section 6. Capital and operating budgets.
12 Section 7. Purposes and powers; bonds.
13 Section 8. Provisions of bonds, trusts, indentures and
14 mortgages.
15 Section 9. Remedies of an obligee of the authority.
16 Section 10. Additional remedies conferrable by the authority.
17 Section 11. Governing board.
18 Section 12. Sovereign immunity.
19 Section 13. Moneys of the authority.
20 Section 14. Transfer of existing facilities or funds; making
21 of annual grants and lease payments to the
22 authority; Commonwealth bonds.
23 Section 15. Award of contracts.
24 Section 16. Interests of public officers, public employees and
25 party officers.
26 Section 17. Acquisition of lands.
27 Section 18. Use and operation of convention center.
28 Section 19. Limitation of powers.
29 Section 20. Exemption from taxation.
30 Section 21. Lease by authorities.
1 Section 22. Cooperation.
2 Section 23. Hotel room rental tax.
3 Section 24. Repeals.
4 Section 25. Effective date.
5 The General Assembly of the Commonwealth of Pennsylvania
6 hereby enacts as follows:
7 Section 1. Short title.
8 This act shall be known and may be cited as the Pennsylvania
9 Convention Center Authority Act.
10 Section 2. Findings and declaration of policy.
11 It is hereby determined and declared as a matter of
12 legislative finding:
13 (1) That the health, safety and general welfare of the
14 people of this Commonwealth are directly dependent upon the
15 continual encouragement, development, growth and expansion of
16 business, industry, commerce and tourism within this
17 Commonwealth.
18 (2) That unemployment, the spread of indigency, and the
19 heavy burden of public assistance and unemployment
20 compensation can be avoided by the promotion, attraction,
21 stimulation, development and expansion of business, industry,
22 commerce and tourism in this Commonwealth.
23 (3) That development of a major convention center is
24 most appropriate in a city of the first class which because
25 of size is capable of attracting major national conventions
26 and that the attraction of business to this Commonwealth as a
27 result of such development is an important factor in the
28 continual encouragement, promotion, attraction, stimulation,
29 development, growth and expansion of business, industry,
30 commerce and tourism within such a city, the surrounding
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1 counties and this Commonwealth as a whole.
2 (4) That the purpose of such a convention center should
3 be the promotion, attraction, stimulation, development and
4 expansion of business, industry, commerce and tourism in such
5 a city, the surrounding counties and this Commonwealth as a
6 whole.
7 (5) That the development of such a convention center
8 will provide benefits to the hotel industry throughout the
9 entire area of such a city where such a center is developed.
10 (6) That the development of such a convention center
11 will also provide benefits to the restaurant and
12 entertainment industries throughout the entire area of such
13 city where such a center is located, to all other businesses
14 and individuals benefited by the attraction of major
15 conventions and tourists, to other individual businesses
16 whose livelihood is dependent thereon and to the general
17 public.
18 (7) That the need for the type of facility and the
19 promotion thereof which will provide significant benefits to
20 the general public will require the expenditure of public
21 money and that it is therefore appropriate to authorize such
22 a city to impose and collect a tax, applicable within the
23 entire territorial limits of such city, to facilitate the
24 development of a convention facility and the promotion of
25 tourism within such cities.
26 (8) That to promote the development of such a convention
27 center within this Commonwealth it is necessary to provide
28 additional and flexible means of developing, constructing,
29 designing, managing, financing and operating such a
30 convention center.
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1 (9) That an important aspect of the development of such
2 a convention center should be the removal of blighted areas
3 and the redevelopment thereof.
4 Therefore, it is hereby declared to be the policy of this
5 Commonwealth to promote the health, safety, employment, business
6 opportunities and general welfare of the people thereof by
7 providing for the creation of a convention center authority
8 which shall exist and operate as a public instrumentality of
9 this Commonwealth for the public purpose of promoting,
10 attracting, stimulating, developing and expanding business,
11 industry, commerce and tourism in this Commonwealth. Such
12 purpose is hereby declared to be a public purpose supporting the
13 enactment of all provisions of this act and for which public
14 money may be spent, taxes may be imposed and private property
15 may be acquired by the exercise of the power of eminent domain.
16 Section 3. Definitions.
17 The following words and phrases when used in this act shall
18 have the meanings given to them in this section unless the
19 context clearly requires otherwise:
20 "Authority" or "Pennsylvania Convention Center Authority."
21 An agency and public instrumentality of this Commonwealth and a
22 body politic and corporate created pursuant to this act.
23 "Board." The governing body of an authority.
24 "Bonds." Notes, bonds, refunding notes and bonds, interim
25 certificates, debentures and other evidence of indebtedness or
26 obligations which the authority is authorized to issue pursuant
27 to this act.
28 "City." Any city or county of the first class.
29 "Construct," "to construct" or "construction." The
30 acquisition, design, erection, extension, renovation,
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1 rehabilitation, conversion, furnishing, fixturing, equipping,
2 enlargement or substantial repair of a convention center, or
3 part thereof, and activities substantially related to such
4 acquisition, design, erection, extension, renovation,
5 rehabilitation, conversion, furnishing, fixturing, equipping,
6 enlargement or substantial repair of a convention center, or
7 part thereof.
8 "Convention center." Any land, improvement, structure,
9 building, or part thereof, or property interest therein, whether
10 owned by or leased by or to or otherwise acquired by the
11 authority, appropriate for any of the following: large public
12 assemblies, the holding of conventions, conferences, trade
13 exhibitions, and other business, social, cultural, scientific
14 and public interest events, and all facilities, furniture,
15 fixtures and equipment necessary or incident thereto, including
16 meeting rooms, dining rooms, kitchens, ballrooms, reception
17 areas, registration and prefunction areas, truck loading areas
18 (including access thereto), access ways, common areas, lobbies,
19 offices, and areas appurtenant to any of the aforesaid (together
20 hereinafter "Main Convention Area") and also including other
21 buildings, structures or facilities for use in conjunction with
22 the foregoing including, but not limited to, provision for
23 offstreet parking, retail areas and other improvements related
24 to the center owned by or leased by or to the authority for the
25 purpose of producing revenues to assist in defraying any costs
26 or expenses of the convention center.
27 "Cost of a project." All or any part of the cost of
28 construction, acquisition, alteration, enlargement, furnishing,
29 fixturing and equipping, reconstruction and rehabilitation of a
30 convention center project, including, without limitation, the
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1 cost of all lands, structures, real or personal property,
2 rights, rights-of-way, roads, franchises, easements and
3 interests acquired or used for or in connection with a project,
4 the cost of demolishing or removing any buildings or structures
5 on land so acquired, including the cost of acquiring any lands
6 to which such buildings or structures may be moved or located,
7 the cost of all utility lines, structures or equipment, the
8 charges, interest prior to, during and for a period of six
9 months after completion of such construction and acquisition,
10 provisions for reserves for principal and interest and for
11 extensions, enlargements, additions and improvements, cost of
12 architectural, engineering, financial and legal services, plans,
13 specifications, studies, surveys, estimates of cost and of
14 revenues, expenses necessary or incident to determining the
15 feasibility or practicability of constructing the project and
16 such other capital cost or expense as may be necessary or
17 incident to the construction, development and acquisition of the
18 project, the financing of such construction, development and
19 acquisition and the placing of the project in operation,
20 including, without limitation, a proper allowance for
21 contingencies and the provisions of reasonable initial working
22 capital for operating the project.
23 "Federal agency" or "Federal Government." The United States
24 of America, the President of the United States of America and
25 any department or corporation, agency or instrumentality
26 heretofore or hereafter created, designated or established by
27 the United States of America.
28 "Obligee of the authority" or "obligee." Any bondholder,
29 trustee or trustees for any bondholders when a party to any
30 contract with the authority.
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1 "Philadelphia Metropolitan Statistical Area." The
2 Pennsylvania part of the Philadelphia Standard Metropolitan
3 Statistical Area as determined by the United States Census
4 Bureau, 1980 Census, comprising the Pennsylvania counties of
5 Philadelphia, Delaware, Bucks, Montgomery and Chester.
6 "Project." Any site, building, structure, equipment,
7 furnishing, and other facilities or undertaking in respect of a
8 convention center which the authority is authorized to acquire,
9 construct, improve, install, maintain or operate under the
10 provisions of this act.
11 "State public body." The Commonwealth and its agencies
12 (executive, administrative and independent), departments,
13 officers, boards, authorities, commissions and
14 instrumentalities.
15 "Substantial completion." Construction that is sufficiently
16 completed in accordance with contract documents and certified by
17 the convention center authority's architect or engineer, as
18 modified by change orders which are subject to review and
19 approval by the Secretary of the Budget of the Commonwealth and
20 the chief financial officer of the city, so that the main
21 convention area can be used, occupied or operated for its
22 intended use. In no event shall a project be certified as
23 substantially complete until at least 90% of the work on the
24 main convention area is completed.
25 Section 4. Authority created.
26 A body corporate and politic, named the Pennsylvania
27 Convention Center Authority, is hereby created as a public
28 authority and government instrumentality to have continuing
29 succession until its existence shall be terminated by law. The
30 exercise by the authority of the powers conferred by this act is
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1 hereby declared to be and shall for all purposes be deemed and
2 held to be the performance of an essential public function.
3 Section 5. Purposes, powers and duties; general.
4 (a) General powers.--Every authority created by this act
5 shall be a public body, corporate and politic, exercising public
6 powers of the Commonwealth as an agency and instrumentality
7 thereof, and shall be for the purpose, without limitation, by
8 itself or by agreement in cooperation with others, of acquiring,
9 holding, developing, designing, constructing, improving,
10 maintaining, managing, operating, financing, furnishing,
11 fixturing, equipping, repairing, leasing or subleasing either in
12 the capacity of lessor or lessee or sublessor or sublessee, and
13 owning a convention center or parts thereof.
14 (b) Specific powers.--The authority is granted all powers
15 necessary or convenient for the carrying out of the aforesaid
16 purposes, including, without limiting the generality of the
17 foregoing, the following rights and powers:
18 (1) To have continuing succession.
19 (2) To sue and be sued, implead and be impleaded,
20 complain and defend in all courts.
21 (3) To adopt, use and alter at will a corporate seal.
22 (4) To acquire by gift or otherwise, purchase, hold,
23 receive, lease, sublease, and use any license, franchise or
24 property, real, personal or mixed, tangible or intangible, or
25 any interest therein, including a convention center, or parts
26 thereof.
27 (5) To sell, transfer or dispose of any property or
28 interest therein with adequate and fair consideration.
29 (6) To acquire, hold, develop, design, construct,
30 improve, maintain, manage, operate, furnish, fixture, equip,
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1 repair, own, lease or sublease a convention center, or parts
2 thereof, and to make, enter into and award contracts with any
3 person, association, partnership or corporation for the
4 development, design, financing, construction, improvement,
5 maintenance, operation, management, furnishing, fixturing,
6 equipping and repair of a convention center, or parts
7 thereof.
8 (7) To make bylaws for the management and regulation of
9 its affairs and issue rules, regulations and policies in
10 connection with the performance of its functions and duties.
11 (8) To appoint officers, agents, employees and servants,
12 to prescribe their duties and to fix their compensation.
13 (9) To fix, alter, charge and collect rentals,
14 admissions, license fees and other charges.
15 (10) To borrow money for the purpose of paying the costs
16 of any project, and to evidence the same, make and issue
17 negotiable bonds of the authority; secure the payment of such
18 bonds, or any part thereof, by pledge or deed of trust of all
19 or any of its revenues, rentals, receipts and contract
20 rights; make such agreements with the purchasers or holders
21 of such bonds or with other obligees of the authority in
22 connection with any bonds, whether issued or to be issued, as
23 the authority shall deem advisable, which agreements shall
24 constitute contracts with such holders or purchasers; obtain
25 such credit enhancement or liquidity facilities in connection
26 with any bonds as the authority shall determine to be
27 advantageous; and, in general, provide for the security for
28 said bonds and the rights of the holders thereof.
29 (11) To make, enter into and award contracts of every
30 name and nature and to execute all instruments necessary or
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1 convenient for the carrying out of its business.
2 (12) To borrow money and accept grants and to enter into
3 contracts, leases, subleases, licenses or other transactions
4 with any Federal agency, State public body, political
5 subdivision, person, association, partnership or corporation.
6 (13) To have the power of eminent domain within a city
7 of the first class. Any condemnation by the authority shall
8 be in the manner provided by the act of June 22, 1964
9 (Sp.Sess., P.L.84, No.6), known as the Eminent Domain Code.
10 (14) To pledge, hypothecate or otherwise encumber any of
11 its property, real, personal or mixed, tangible or
12 intangible, and its revenues or receipts, including, but not
13 limited to, any interest the authority may have in any lease
14 or sublease of a convention center, or parts thereof.
15 (15) To procure such insurance containing such
16 coverages, including, without limitation, insurance covering
17 the timely payment in full of principal of and interest on
18 bonds of the authority, in such amounts, from such insurers,
19 as the authority may determine to be necessary or desirable
20 for its purposes.
21 (16) To invest its money.
22 (17) To cooperate with any Federal agency, State public
23 body or political subdivision.
24 (18) To invest any funds held in reserve or sinking
25 funds, or any funds not required for immediate disbursements,
26 as authorized by section 13(d).
27 (19) To appoint all officers, agents and employees
28 required for the performance of its duties, and fix and
29 determine their qualifications, duties and compensation and
30 retain or employ other agents or consultants, including, but
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1 not limited to, architects, auditors, engineers, private
2 counsel and private consultants on a contract basis or
3 otherwise for rendering professional or technical services
4 and advice.
5 (20) To enroll its employees in an existing retirement
6 system of the State, city or other governmental entity.
7 (21) To appoint and fix the compensation of chief
8 counsel and such assistant counsel to provide it with legal
9 assistance, for which purpose the authority shall not be
10 considered either an executive agency or an independent
11 agency for the purpose of the act of October 15, 1980
12 (P.L.950, No.164), known as the Commonwealth Attorneys Act,
13 but shall possess the same status for such purpose as the
14 Auditor General, State Treasurer and the Pennsylvania Public
15 Utility Commission, except that the provisions of section
16 204(b) and (f) of the act of October 15, 1980 (P.L.950,
17 No.164), known as the Commonwealth Attorneys Act, shall not
18 apply to the authority and, notwithstanding the provisions of
19 42 Pa.C.S. § 8525 (relating to legal assistance), the
20 authority through its counsel shall defend actions brought
21 against the authority and its officers and employees when
22 acting within the scope of their official duties.
23 (22) To maintain an office in the city.
24 (23) To appoint an executive director, who shall be the
25 chief executive officer of the authority, who shall devote
26 his full time during business hours to the duties of his
27 office, and who shall receive compensation as the board shall
28 determine.
29 (24) To do all acts and things necessary or convenient
30 for the promotion of its purposes and the general welfare of
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1 the authority and to carry out the powers granted to it by
2 this act or any other acts.
3 (c) Limitation.--The authority shall have no power to pledge
4 the credit or taxing powers of any State public body, any
5 political subdivision or the city, nor shall any of its
6 obligations be deemed obligations of any State public body, any
7 political subdivision or the city nor shall any State public
8 body, any political subdivision or the city be liable for the
9 payment of principal or interest on such obligations.
10 (d) Affirmative action.--The authority shall develop and
11 implement an affirmative action plan to assure that all persons
12 are accorded equality of opportunity in employment and
13 contracting by the authority, its contractors, subcontractors,
14 assignees, lessees, agents, vendors and suppliers.
15 Section 6. Capital and operating budgets.
16 (a) Capital budget.--At least 90 days before the commencing
17 of the ensuing fiscal year of the authority, the board shall
18 cause to be prepared and submitted to it a recommended capital
19 budget. The capital budget shall show in detail the capital
20 expenditures to be made or incurred in the next fiscal year
21 which are to be financed from funds subject to control or
22 appropriation by the board. The capital budget shall be prepared
23 with the aid of the Secretary of the Budget of the Commonwealth
24 and the chief financial officer of the city and shall be in form
25 and detail satisfactory to them. In the event that the capital
26 budget is not in form and detail satisfactory to either the
27 Secretary of the Budget of the Commonwealth or the chief
28 financial officer of the city, either official may require that
29 the capital budget be redrafted and resubmitted and such
30 official or officials shall not be considered in receipt of the
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1 capital budget or any amendments thereto unless the form and
2 detail of the capital budget is satisfactory. For each separate
3 purpose, project, facility or other property, there shall show
4 the amount and the source of the money that has been spent,
5 encumbered or is intended to be spent or encumbered during the
6 fiscal year. No later than the date of the adoption of the
7 annual operating budget, the board shall, by a majority vote of
8 its members, adopt a capital budget.
9 (b) Operating budget.--At least 90 days before the
10 commencing of the ensuing fiscal year of the authority, the
11 board shall cause to be prepared and submitted to it a
12 recommended operating budget. The operating budget shall be
13 prepared with the aid of the chief financial officer of the city
14 and shall be in form and detail satisfactory to him. In the
15 event that the operating budget is not in form and detail
16 satisfactory to the chief financial officer of the city, such
17 official may require that the operating budget be redrafted and
18 resubmitted and such official shall not be considered to be in
19 receipt of the operating budget or any amendments thereto unless
20 the form and detail is to the official's satisfaction. The
21 operating budget should set forth the estimated receipts and
22 revenues of the authority during the next fiscal year. The board
23 shall, at least 30 days before the end of the fiscal year,
24 adopt, by a majority vote of its members, an operating budget
25 for the next fiscal year.
26 (c) Additional approvals or disapprovals.--If the Secretary
27 of the Budget of the Commonwealth or the chief financial officer
28 of the city in which the convention center is located are among
29 the members appointed to the board of the authority, or if they
30 sit as ex officio members of the board, each shall have the
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1 right to approve or disapprove each line item of the capital
2 budget of the authority and any amendments thereto as well as
3 all change orders. In addition, the chief financial officer of
4 the city shall have the right to approve or disapprove the total
5 amount of the operating budget of the authority and any
6 amendments increasing the aggregate amount thereto. In the case
7 of both the capital and operating budgets and change orders of
8 the authority, approval shall be presumed unless the chief
9 financial officer of the city has disapproved the entire
10 operating budget, or relevant amendments thereto, or either the
11 chief financial officer of the city or the Secretary of the
12 Budget has disapproved all or part of the capital budget of the
13 authority or amendments thereto or change orders, within 30 days
14 of the receipt of the respective budgets, amendments thereto or
15 change orders. The Secretary of the Budget of the Commonwealth
16 or the chief financial officer of the city may, from time to
17 time, establish a threshold level below which such officers will
18 not exercise their right to disapprove change orders and may
19 identify categories or types of change orders for which they
20 will not exercise such right.
21 (d) Project design.--Notwithstanding any other provisions of
22 this law to the contrary, and until substantial completion of
23 the main convention area and for one year thereafter, the design
24 for any capital project undertaken by the authority shall be
25 submitted to the Secretary of the Budget of the Commonwealth and
26 the chief financial officer of the city for approval. No such
27 capital project may be undertaken by the authority unless and
28 until the schematic design and the preliminary design
29 development documents have been approved by the Secretary of the
30 Budget of the Commonwealth and the chief financial officer of
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1 the city: Provided, however, That the design and construction of
2 the center may be divided into stages or phases for which
3 schematic design and preliminary design development documents
4 may be approved separately by the Secretary of the Budget of the
5 Commonwealth and the chief financial officer of the city and
6 which may be undertaken by the authority as if each stage or
7 phase was a separate capital project. In the case of the
8 schematic design and preliminary design development documents
9 for any capital project or any stage or phase of a capital
10 project, approval shall be presumed unless the Secretary of the
11 Budget of the Commonwealth or the chief financial officer of the
12 city has disapproved the design, and expressly set forth his
13 objections to the documents, within 45 days of the receipt of
14 the documents. Further design approval shall not be required
15 provided the construction documents are consistent with the
16 design set forth in the schematic and preliminary design
17 development documents.
18 (e) On-site inspectors.--Until the main convention area is
19 substantially complete, and for one year thereafter the
20 Secretary of the Budget of the Commonwealth may appoint and
21 designate an inspector or inspectors who shall have complete
22 authority to inspect any and all aspects of the construction of
23 any capital project undertaken by the authority. Any inspection
24 shall be made during normal business hours and shall be
25 conducted in such a manner as to not disrupt the work of
26 constructing the center and shall be made solely for the purpose
27 of observing the construction of the project. The inspectors
28 shall report to the Secretary of the Budget for the purpose of
29 assisting the secretary in carrying out his duties and
30 responsibilities as provided by this section.
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1 Section 7. Purposes and powers; bonds.
2 (a) Bond issues to be authorized.--The bonds of any
3 authority hereinabove referred to and authorized to be issued
4 shall be authorized by resolution of the board thereof and shall
5 be of such series, bear such date or dates, mature at such time
6 or times not exceeding 40 years from their respective dates,
7 bear interest at such rate or rates as shall be determined by
8 the board as necessary to issue and sell the authorized bonds,
9 be in such denominations, be in such form, either coupon or
10 fully registered without coupons, carry such registration,
11 exchangeability and interchangeability privileges, be payable in
12 such medium of payment and at such place or places, be subject
13 to such terms of redemption, and be entitled to such priorities
14 in the revenues or receipts of the authority, as such resolution
15 or resolutions may provide. The bonds shall be signed by or
16 shall bear the facsimile signatures of such officers as the
17 authority shall determine, and coupon bonds shall have attached
18 thereto interest coupons bearing the facsimile signature of the
19 treasurer of the authority, and all bonds shall be authenticated
20 by an authenticating agent, fiscal agent or trustee, all as may
21 be prescribed in such resolution or resolutions. Any such bonds
22 may be issued and delivered notwithstanding that one or more of
23 the officers signing such bonds or the treasurer whose facsimile
24 signature shall be upon the coupon or any thereof shall have
25 ceased to be such officer or officers at the time when such
26 bonds shall actually be delivered.
27 (b) Sale of bonds.--Said bonds may be sold at public sale
28 for such price or prices and at such rate of interest as the
29 authority shall determine. Pending the preparation of the
30 definitive bonds, interim receipts may be issued to the
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1 purchaser or purchasers of such bonds and may contain such terms
2 and conditions as the authority may determine. Such bonds may be
3 sold at private sale only if:
4 (1) the authority makes a written public explanation of
5 the circumstances and justification for the private sale; and
6 (2) the board approves the private sale by a vote of at
7 least seven members.
8 (c) Bonds to be negotiable instruments.--Said bonds shall
9 have the qualities of negotiable instruments under 13 Pa.C.S.
10 known as the Commercial Code.
11 (d) Use of net proceeds.--The net proceeds of the issue of
12 bonds or notes may be used to pay the costs of the project or to
13 reimburse any costs initially paid by any State public body, the
14 city, other political subdivision, agency, organization or
15 person.
16 (e) Refunding authorized.--
17 (1) Subject to the provisions of the outstanding bonds,
18 notes or other obligations and subject to the provisions of
19 this act, the authority shall have the right and power to
20 refund any outstanding debt in whole or in part at any time
21 and shall have the right and power to refund any outstanding
22 notes with bonds or bonds with notes.
23 (2) The term "refund" and its variations shall mean the
24 issuance and sale of obligations the proceeds of which are
25 used or are to be used for the payment or redemption of
26 outstanding obligations upon or prior to maturity.
27 Section 8. Provisions of bonds, trusts, indentures and
28 mortgages.
29 (a) Additional powers.--In connection with the issuance of
30 bonds or the incurring of obligations under leases, and in order
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1 to secure the payment of such bonds and obligations, the
2 authority in addition to its other powers shall have the power
3 to:
4 (1) Pledge all or any part of its gross or net revenues
5 to which its right then exists or may thereafter come into
6 existence.
7 (2) Mortgage all or any part of its real or personal
8 property then owned or thereafter acquired.
9 (3) Covenant against pledging all or any part of its
10 revenues, or against mortgaging all or any part of its real
11 or personal property to which its right or title exists or
12 may thereafter come into existence, or against permitting or
13 suffering any lien on such revenues or property, to covenant
14 with respect to limitations on its right to sell, lease or
15 otherwise dispose of any of its real property, and to
16 covenant as to what other or additional debts or obligations
17 may be incurred by it.
18 (4) Covenant as to the bonds to be issued and as to the
19 issuance of such bonds, in escrow, or otherwise, and as to
20 the use and disposition of the proceeds thereof, to provide
21 for the replacement of lost, destroyed or mutilated bonds, to
22 covenant against extending the time for the payment of its
23 bonds or interest thereon, and to redeem the bonds, and to
24 covenant for their redemption, and to provide the terms and
25 conditions thereof.
26 (5) Covenant as to the amount of revenues to be raised
27 each year or other period of time by the authority, as well
28 as to the use and disposition to be made thereof, to create
29 or to authorize the creation of special funds for debt
30 service or other purposes, and to covenant as to the use and
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1 disposition of the moneys held in such funds.
2 (6) Prescribe the procedure, if any, by which the terms
3 of any contract with bondholders may be amended or abrogated,
4 the amount of bonds, the holders of which must consent
5 thereto, and the manner in which such consent may be given.
6 (7) Covenant as to the use of any or all of its real or
7 personal property, to warrant its title, and to covenant as
8 to the maintenance of its real and personal property, the
9 replacement thereof, the insurance to be carried thereon, and
10 the use and disposition of insurance moneys.
11 (8) Covenant as to the rights, liabilities, powers and
12 duties arising upon the breach by it of any covenant,
13 condition or obligation, and to covenant and prescribe, in
14 the event of default, as to terms and conditions upon which
15 any or all of its bonds or obligations shall become or may be
16 declared due before maturity, and as to the terms and
17 conditions upon which such declaration and its consequences
18 may be waived.
19 (9) Vest in a trustee, or the holders of bonds, or any
20 proportion of them, the right to enforce the payment of the
21 bonds or any covenants securing or relating to the bonds, to
22 vest in a trustee the right, in the event of a default by the
23 authority, to take possession and use, operate and manage any
24 real property and to collect the rents and revenues arising
25 therefrom and to dispose of such moneys in accordance with
26 the agreement of the authority with said trustee, to provide
27 for the powers and duties of a trustee and to limit
28 liabilities thereof, and, to provide the terms and conditions
29 upon which the trustee or the holders of bonds or any
30 proportion of them may enforce any covenant or rights
19850S0655B1850 - 19 -
1 securing or relating to the bonds.
2 (10) Obtain letters of credit and bond insurance.
3 (11) Exercise all or any part or combination of the
4 powers herein granted, to make covenants other than and in
5 addition to the covenants herein expressly authorized, to
6 make such covenants and to do any and all such acts and
7 things as may be necessary or convenient or desirable in
8 order to secure its bonds, or, in the absolute discretion of
9 the authority, as will tend to accomplish the purposes of
10 this act, by making the bonds more marketable notwithstanding
11 that such covenants, acts or things may not be specifically
12 enumerated herein.
13 Section 9. Remedies of an obligee of the authority.
14 An obligee of the authority shall have the right, in addition
15 to all other rights which may be conferred on such obligee,
16 subject only to any contractual restrictions binding upon such
17 obligee:
18 (1) By mandamus, suit, action or proceeding at law or in
19 equity to compel the authority and the members, officers,
20 agents or employees thereof to perform each and every term,
21 provision and covenant contained in any bond or contract of
22 the authority with or for the benefit of such obligee, and to
23 require the carrying out of any or all such covenants and
24 agreements of the authority, and the fulfillment of all
25 duties imposed upon the authority by this act.
26 (2) By proceeding in equity to obtain an injunction
27 against any acts or things which may be unlawful or the
28 violation of any of the rights of such obligee of the
29 authority.
30 Section 10. Additional remedies conferrable by the authority.
19850S0655B1850 - 20 -
1 (a) Additional remedies.--The authority shall have power by
2 its resolution, trust, indenture or mortgage to confer upon any
3 obligees holding or representing a specified percentage of
4 bonds, the right, in addition to all rights that may otherwise
5 be conferred, upon the happening of an event of default as
6 defined in such resolution or instrument, by suit, action or
7 proceeding in any court of competent jurisdiction:
8 (1) to obtain the appointment of a receiver of any real
9 property or leasehold interest of the authority and of the
10 rents and profits therefrom (if such receiver be appointed,
11 he may enter and take possession of such real property or any
12 leasehold interest, operate the same and collect and receive
13 all revenues or other income thereafter arising therefrom,
14 and shall keep such moneys in a separate account and apply
15 the same in accordance with the obligations of the authority
16 as the court shall direct); or
17 (2) to require the authority and the members thereof to
18 account as if it and they were the trustees of an express
19 trust.
20 (b) Authority of receiver.--Nothing in this section or any
21 other section of this act shall authorize any receiver appointed
22 pursuant to this act for the purpose of operating and
23 maintaining any facilities of the authority to sell, assign,
24 mortgage or otherwise dispose of any of the assets, of whatever
25 kind or character, belonging to the authority. It is the
26 intention of this act to limit the powers of such receiver to
27 the operation and maintenance of the facilities of the authority
28 as the court shall direct, and no holder or holders of bonds of
29 the authority nor any trustee or other obligee shall ever have
30 the right in any suit, action or proceeding, at law or in
19850S0655B1850 - 21 -
1 equity, to compel a receiver, nor shall any receiver ever be
2 authorized, or any court be empowered to direct the receiver, to
3 sell, assign, mortgage or otherwise dispose of any assets, of
4 whatever kind or character, belonging to the authority.
5 Section 11. Governing board.
6 (a) Power.--The power of the authority shall be exercised by
7 a governing board (hereinafter called the "board") composed of
8 nine members.
9 (1) The Governor shall appoint two members who shall be
10 residents of counties within the Philadelphia Metropolitan
11 Statistical Area, excluding counties which are coterminous
12 with cities of the first class. The members initially
13 appointed pursuant to this clause shall serve until
14 substantial completion of the main convention area. Upon
15 substantial completion of the main convention area, or the
16 occurrence of any vacancy in the seat of a gubernatorial
17 appointee which occurs prior to substantial completion of the
18 main convention area, the members provided by this subsection
19 shall be appointed by the boards of county commissioners or
20 county councils of counties within the Philadelphia
21 Metropolitan Statistical Area, excluding counties which are
22 coterminous with cities of the first class, by majority vote
23 of the boards of county commissioners or county councils.
24 Each board of county commissioners or county council shall
25 cast one vote in the process of selecting members, which vote
26 shall be determined by a majority vote of the members of each
27 such board of county commissioners or county council. The
28 term of appointment of members appointed by the boards of
29 county commissioners or county councils shall be four years,
30 except that the initial term of members appointed after
19850S0655B1850 - 22 -
1 substantial completion of the main convention area, shall
2 expire on the third January 31 following the commencement of
3 the term of office of the Governor.
4 (2) The Governor shall appoint two members who shall
5 represent the Commonwealth at large, who shall not be members
6 of the same political party. The members initially appointed
7 pursuant to this paragraph shall serve until substantial
8 completion of the main convention area, and thereafter shall
9 serve for terms coincident with the term of the Governor.
10 Upon substantial completion of the main convention area, the
11 Governor shall appoint two members, who shall not be members
12 of the same political party, from each of two lists of at
13 least four nominees, each prepared and submitted to the
14 Governor respectively by the floor leaders of the Senate and
15 the House of Representatives who belong to the same political
16 party. Each floor leader may contribute at least two names to
17 the appropriate list and shall submit such nominees to the
18 Governor. The Governor shall select a member from each list
19 within 30 days of receipt of each list, or else may request
20 one substitute list of nominees from both or either group of
21 floor leaders. If both or either group of floor leaders fail
22 to submit a list of nominees within 30 days of substantial
23 completion of the main convention area, or fail to submit a
24 substitute list within 30 days of receipt of a request to do
25 so, the Governor may appoint such member or members, for
26 which lists of nominees were not submitted, at his
27 discretion. In the event one of the two floor leaders
28 responsible for the submission of nominees for a list fails
29 to submit such nominees, the Governor shall act upon the
30 nominees submitted by the other floor leader as if he had
19850S0655B1850 - 23 -
1 received nominees from both floor leaders. If the Governor
2 fails to select a member from either list of nominees within
3 30 days of receipt of such list and fails to request a
4 substitute list, or fails to select a member from the
5 substitute list within 30 days of receipt of such list, the
6 floor leaders who prepared the list may appoint a member to
7 serve on the board. Whenever a vacancy occurs prior to the
8 completion of the term of office of a member appointed
9 pursuant to this subsection, the floor leaders belonging to
10 the same political party as the board member whose seat has
11 become vacant did at the time of appointment of such member
12 shall submit a list of nominees to replace such member to the
13 Governor. In the event of a vacancy in the office of an
14 initial gubernatorial appointee, which occurs prior to
15 substantial completion of the main convention area, a
16 replacement member shall be appointed pursuant to the
17 procedures set forth in this subsection for the appointment
18 of members after substantial completion of the convention
19 center.
20 (3) The chief executive officer of the city in which the
21 convention center is located shall appoint two members. The
22 terms of office of such members shall run concurrently with
23 the term of office of such appointing authority.
24 (4) The council of the city in which the convention
25 center is located shall appoint two members as provided
26 herein. One member shall be appointed for the council by the
27 president of the council and one shall be appointed for the
28 council by the minority leader of the council. The terms of
29 office of such members shall run concurrently with the term
30 of office of the chief executive officer of the city.
19850S0655B1850 - 24 -
1 (5) The initial appointment of board members shall have
2 no force and effect unless and until the eight members
3 provided by paragraphs (1), (2), (3) and (4) have been
4 appointed, which event shall constitute the formation of the
5 board.
6 (6) The eight members so appointed shall appoint a ninth
7 member, who shall serve as chairman of the board, by a vote
8 of at least six members of the board. The initial term of the
9 chairman shall be until substantial completion of the main
10 convention area. Thereafter, the chairman shall serve for a
11 term coincident with the term of members appointed pursuant
12 to paragraph (3). In the event that the members cannot agree
13 on the initial ninth member within 90 days of the creation of
14 the authority, or the members cannot agree upon the selection
15 of a chairman in the event the office of chairman becomes
16 vacant within 90 days of the occurrence of such vacancy, the
17 Governor shall appoint said member, which appointment shall
18 be subject to the advice and consent of two-thirds of the
19 members elected to the Senate. The member so appointed by
20 either the members or the Governor shall serve as chairman of
21 the board of the authority until his successor is duly
22 appointed. Said chairman may be removed and a new chairman
23 may be selected by the vote of seven members of the board.
24 (7) If, at any time prior to one year after substantial
25 completion of the main convention area, the Secretary of the
26 Budget of the Commonwealth is not an appointed member of the
27 board, he shall serve as a nonvoting ex officio member of the
28 board. If, at any time the chief financial officer of the
29 city in which the convention center is located is not an
30 appointed member of the board, he shall serve as a nonvoting
19850S0655B1850 - 25 -
1 ex officio member of the board.
2 (b) Terms and vacancies.--Except as otherwise provided,
3 initial board members shall serve until substantial completion
4 of the main convention area and until their successors have been
5 appointed and qualified. Thereafter, except as otherwise
6 provided, members shall serve a term from the date of their
7 appointment and until their successors have been appointed and
8 qualified. If a vacancy shall occur by means of the death,
9 disqualification, resignation or removal of a member, or the
10 chairman, subject to the provisions of subsection (a), the
11 appointing authority shall appoint a successor to fill his
12 unexpired term.
13 (c) Compensation.--Subject to such aggregate per annum
14 limitation and any other rules and regulations as the board
15 shall determine, a member shall receive $125 per diem when
16 engaged in the exercise of his duties for the authority and
17 shall also be entitled to necessary expenses, including
18 traveling expenses, incurred in the discharge of his duties. In
19 addition, the chairman of the board of the authority shall be
20 entitled to receive such additional compensation as the board
21 shall determine. No other member of the board shall be entitled
22 to any additional compensation for extra service provided to the
23 authority. The per diem amount may be increased by a vote of
24 seven members of the board, but any such increase shall not
25 apply during the term of office of board members voting or
26 eligible to vote on such per diem increase.
27 (d) Organization.--The members of the board shall select
28 from among themselves a vice chairman and such other officers as
29 the board may determine. Except as otherwise provided, all
30 actions of the board shall be taken by a vote of at least five
19850S0655B1850 - 26 -
1 members of the board, which shall constitute a majority of the
2 board, unless the bylaws of the authority shall provide for a
3 greater vote. The board shall have full authority to manage the
4 properties and business of the authority and to prescribe, amend
5 and repeal bylaws, rules and regulations governing the manner in
6 which the business of the authority may be conducted and the
7 powers granted to it may be exercised and embodied.
8 Notwithstanding any other law, court decision, precedent or
9 practice to the contrary, no actions by or on behalf of the
10 board shall be taken by any officer of the board except upon the
11 approval of a majority of the board. The term "actions by or on
12 behalf of the board" means any action whatsoever of the board,
13 including, but not limited to, the hiring, appointment, removal,
14 transfer, promotion or demotion of any officers and employees,
15 the retention, use or remuneration of any advisors, counsel,
16 auditors, architects, engineers or consultants, the initiation
17 of any legal action, the making of any contracts, leases,
18 agreements, bonds, notes or covenants, the approval of
19 requisitions, purchase orders, investments and reinvestments,
20 and the adoption, amendment, revision or rescission of any rules
21 and regulations, orders or other directives. The chairman, vice
22 chairman or any other officer, committee or employee of the
23 board may take actions by or on behalf of the board as
24 authorized at least annually by a vote of six members of the
25 board, and subject always to the supervision and control of the
26 board.
27 (e) Nonliability of members.--Members of the board shall not
28 be liable personally on the bonds or other obligations of the
29 authority and the rights of creditors shall be solely against
30 such authority. The authority, itself or by contract, shall
19850S0655B1850 - 27 -
1 defend board members and the authority shall indemnify and hold
2 harmless board members, whether currently employed by the
3 authority or not, against and from any and all personal
4 liabilities, actions, causes of action, and any and all claims
5 made against them for whatever actions they perform within the
6 scope of their duties as board members.
7 Section 12. Sovereign immunity.
8 It is hereby declared to be the intent of the General
9 Assembly that the authority created pursuant to this act, and
10 its officers, officials and employees shall enjoy sovereign and
11 official immunity, as provided in 1 Pa.C.S. § 2310 (relating to
12 sovereign immunity; reaffirmed; specific waiver), and remain
13 immune from suit except as provided by and subject to the
14 provisions of 42 Pa.C.S. §§ 8501 (relating to definitions)
15 through 8528 (relating to limitations on damages).
16 Notwithstanding the provisions of 42 Pa.C.S. § 8525 (relating to
17 legal assistance), the authority through its counsel shall
18 defend actions brought against the authority and its officers
19 and employees when acting within the scope of their official
20 duties.
21 Section 13. Moneys of the authority.
22 (a) Paid to treasurer.--All moneys of the authority, from
23 whatever source derived, shall be paid to the treasurer of the
24 authority.
25 (b) Funds to be invested.--The board shall invest authority
26 funds consistent with sound business practice.
27 (c) Investment program.--The board shall provide for an
28 investment program subject to restrictions contained in this act
29 and in any other applicable statute and any rules and
30 regulations adopted by the board.
19850S0655B1850 - 28 -
1 (d) Authorized types of investments.--Authorized types of
2 investments for authority funds shall be:
3 (1) Direct obligations of or obligations guaranteed by
4 the United States of America.
5 (2) Any bond, debenture, note, participation certificate
6 or other similar obligation issued by any one or combination
7 of the following agencies: Government National Mortgage
8 Corporation, Federal Land Banks, Federal Home Loan Banks,
9 Federal Intermediate Credit Banks, Banks for Cooperatives,
10 Tennessee Valley Authority, United States Postal Service,
11 Farmers Home Administration, the Student Loan Marketing
12 Association and Export-Import Bank of the United States.
13 (3) Any bond, debenture, note, participation certificate
14 or other similar obligation issued by the Federal National
15 Mortgage Corporation to the extent such obligations are
16 guaranteed by the Government National Mortgage Corporation or
17 issued by any other Federal agency and backed by the full
18 faith and credit of the United States of America.
19 (4) Deposits in interest-bearing time or demand
20 deposits, or certificates of deposit, fully insured by the
21 Federal Deposit Insurance Corporation or its successors or
22 the Federal Savings and Loan Insurance Corporation or its
23 successor or fully secured by any of the obligations
24 described above to the extent not so insured.
25 (5) Repurchase agreements relating to, or investment
26 agreements secured by or providing for the acquisition of
27 and, if applicable, resale of, obligations described in
28 paragraphs (1) through (4) or obligations of Federal Home
29 Loan Mortgage Corporation or Federal National Mortgage
30 Association, with:
19850S0655B1850 - 29 -
1 (i) banks or trust companies (which may include any
2 banking entity or depository);
3 (ii) brokers or broker-dealers registered under the
4 Securities Exchange Act of 1934 (48 Stat. 881, 15 U.S.C.
5 §§ 78a-78jj) acceptable to the authority; or
6 (iii) insurance companies rated A+ or better by
7 Best's having a net capital and surplus of at least
8 $25,000,000 or certificates of deposit with such banks or
9 trust companies fully secured as to principal and accrued
10 interest by obligations described in paragraphs (1)
11 through (4) deposited with or subject to the control of
12 the authority.
13 (6) Money market deposit accounts of banks or trust
14 companies having a net capital and surplus of at least
15 $25,000,000 (which may include any banking entity or
16 depository).
17 (7) The description of authorized investments as set
18 forth herein in paragraphs (5) and (6) shall only be met if
19 the agreements referenced therein provide for the repayment
20 of the principal amount invested at an amount not less than
21 that so invested. Whenever security is required as set forth
22 herein in paragraphs (4) through (6), such security shall be
23 deposited with the treasurer of the authority, or be held by
24 a trustee or agent satisfactory to the authority. Moneys of
25 the authority shall be paid out on the warrant or other order
26 of the chairman of the authority, or of such other person or
27 persons as the authority may authorize to execute such
28 warrants or orders.
29 (e) Annual report to be filed; annual audits.--Every
30 authority shall file an annual report with the Department of
19850S0655B1850 - 30 -
1 Commerce and with the city which shall make provisions for the
2 accounting of revenues and expenses. The authority shall have
3 its books, accounts and records audited annually in accordance
4 with generally accepted auditing standards by an independent
5 auditor who shall be a certified public accountant or competent
6 public accountant and a copy of his audit report shall be
7 attached to and be made a part of the aforesaid annual report. A
8 concise financial statement shall be published annually in the
9 Pennsylvania Bulletin. If the authority fails to make such an
10 audit, then the controller, auditors or accountants designated
11 by the city are hereby authorized and empowered from time to
12 time to examine, at the expense of the authority, the accounts
13 and books of the authority, including its receipts,
14 disbursements, contracts, leases, sinking funds, investments,
15 and any other matters relating to its finances, operations and
16 affairs.
17 (f) Power of inspection.--The Attorney General, Auditor
18 General, Secretary of the Budget and the Chairmen and Minority
19 Chairmen of the House of Representatives and Senate
20 Appropriations Committees shall have the right to examine the
21 books, accounts and records of the authority.
22 Section 14. Transfer of existing facilities or funds; making of
23 annual grants and lease payments to the
24 authority; Commonwealth bonds.
25 (a) Authority granted.--Any State public body, political
26 subdivision or the city may and it is hereby authorized to sell,
27 lease or sublease from or to, lend, grant, convey, or otherwise
28 transfer or pay over to the authority, with or without
29 consideration, a convention center, or parts thereof, or any
30 interest in property, real, personal or mixed, tangible or
19850S0655B1850 - 31 -
1 intangible, or any funds available, needed or obligated for
2 development, acquisition, design, maintenance, management,
3 operation, financing, leasing or subleasing construction or
4 improvement purposes, including the proceeds of bonds previously
5 or hereafter issued for construction or improvement of a
6 convention center, or parts thereof. Any such property, funds or
7 convention center, or parts thereof, received by the authority
8 may be used for any lawful purpose of the authority. Nothing in
9 this act nor in any other law shall be deemed to make any such
10 authority or any persons, State-supported or State-aided
11 institutions under any laws of this Commonwealth.
12 (b) Grants authorized.--The city may and it is hereby
13 authorized to make grants from current revenues to the authority
14 and to assist in defraying the costs of management, operation,
15 maintenance, financing and debt service of a convention center
16 or parts thereof, and to enter into long-term agreements
17 providing for the payment of the same and to enter into long-
18 term leases or subleases as lessee or sublessee of all or part
19 of a convention center: Provided, That obligations of the city
20 to make grants, lease or sublease payments to an authority shall
21 not, even if based on debt obligations of an authority,
22 constitute debts of the city within the meaning of any
23 constitutional or statutory provision and shall be payable only
24 to the extent that current revenues of the city are available.
25 The city may issue general obligation bonds for the purpose of
26 obtaining funds for local contributions pertaining to convention
27 centers or part thereof.
28 (c) Redevelopment assistance project.--The Commonwealth may
29 contribute to the capital costs of constructing a convention
30 center by the issuance of Commonwealth bonds and notes pursuant
19850S0655B1850 - 32 -
1 to Article XVI-B of the act of April 9, 1929 (P.L.343, No.176),
2 known as The Fiscal Code. A convention center project undertaken
3 by the authority is hereby deemed to be a redevelopment
4 assistance project for which capital funds of the Commonwealth
5 may be expended pursuant to the provisions of the act of May 20,
6 1949 (P.L.1633, No.493), known as the Housing and Redevelopment
7 Assistance Law and, notwithstanding any provisions of the
8 Housing and Redevelopment Assistance Law, the Department of
9 Community Affairs of the Commonwealth is hereby authorized to
10 make capital grants directly to the authority in furtherance of
11 this act.
12 Section 15. Award of contracts.
13 (a) Lowest responsible bidder.--All construction,
14 reconstruction, repairs or work of any nature made by the
15 authority, where the entire cost, value or amount of such
16 construction, reconstruction, repairs or work, including labor
17 and materials, shall exceed $4,000, except construction,
18 reconstruction, repairs or work done by employees of the
19 authority, or by labor supplied under agreement with any Federal
20 agency, State public body, political subdivision or city, with
21 supplies and materials purchased as hereinafter provided, shall
22 be done only under contract or contracts to be entered into by
23 the authority with the lowest responsible bidder upon proper
24 terms, after due public notice has been given asking for
25 competitive bids as hereinafter provided but the authority shall
26 have the right to reject any or all bids or select a single item
27 from any bid. No contract shall be entered into for construction
28 or improvement or repair of any project or portion thereof,
29 unless the contractor shall provide sufficient surety or
30 sureties approved by the authority, and in an amount fixed by
19850S0655B1850 - 33 -
1 the authority, for the performance of the contract. All such
2 contracts shall provide among other things that the person or
3 corporation entering into such contract with the authority will
4 pay for all materials furnished and services rendered for the
5 performance of the contract, and that any person or corporation
6 furnishing such materials or rendering such services may
7 maintain an action to recover for the same against the obligor
8 in the undertaking, as though such person or corporation was
9 named therein, provided the action is brought within one year
10 after the time the cause of action accrued. Nothing in this
11 section shall be construed to limit the power of the authority
12 to construct, repair or improve any project or portion thereof,
13 or any addition, betterment or extension thereto, directly by
14 the officers and employees of the authority. The authority may
15 award the construction of a convention center as a single bid
16 project without regard to the provisions of the act of May 1,
17 1913 (P.L.155, No.104), entitled "An act regulating the letting
18 of certain contracts for the erection, construction, and
19 alteration of public buildings," and shall not be subject to the
20 act of November 26, 1978 (P.L.1309, No.317), entitled "An act
21 regulating the awarding and execution of certain public
22 contracts; providing for contract provisions relating to the
23 retention, interest, and payment of funds payable under the
24 contracts; and repealing inconsistent acts." Nothing in this
25 section or any other law of this Commonwealth shall require the
26 authority to competitively bid architectural design,
27 engineering, construction management or other professional
28 services required by the authority.
29 (b) Supplies and materials.--All supplies and materials
30 costing $4,000 or more to be acquired directly by the authority
19850S0655B1850 - 34 -
1 shall be purchased only after due advertisement as hereinafter
2 provided. The authority shall accept the lowest bid or bids,
3 from a responsible bidder, kind, quality and material being
4 equal, but the authority shall have the right to reject any or
5 all bids or select a single item from any bid. The provisions as
6 to bidding shall not apply to the purchase of unique supplies
7 and materials or supplies and materials which cannot be obtained
8 in the open market.
9 (c) Management prerogatives.--Nothing in this section or in
10 any other law of the Commonwealth shall preclude the board, with
11 the approval of six members, from negotiating contracts for
12 management, operation, concession services, licensing or leasing
13 of a convention center or any part thereof. The authority shall
14 not award any contract to any manager, operator, concessionaire,
15 licensee, lessee or lessor that exceeds three years in duration
16 unless six members of the board approve the awarding of a
17 contract for a greater period of time.
18 (d) Application of city ordinances.--The authority, its
19 contractors, subcontractors, assignees, lessees, agents, vendors
20 and suppliers shall not be subject to any city laws, ordinances,
21 rules or regulations relating to any limits or preferences with
22 regard to employment, contracting or procurement in the
23 construction and operation of the convention center.
24 (e) Steel products.--The authority shall be subject to the
25 act of March 3, 1978 (P.L.6, No.3), known as the Steel Products
26 Procurement Act, and the act of April 4, 1984 (P.L.193, No.40),
27 known as the Motor Vehicle Procurement Act.
28 (f) Definitions.--As used in this section the terms
29 "advertisement" or "public notice" means a notice published at
30 least ten days before the award of any contract, in a newspaper
19850S0655B1850 - 35 -
1 of general circulation published in the city: Provided, That
2 such notice may be waived where the authority determines an
3 emergency exists, and such supplies and materials must be
4 immediately purchased by the authority.
5 Section 16. Interests of public officers, public employees and
6 party officers.
7 (a) Restrictions upon authority management level
8 employees.--
9 (1) No party officer, public officer, public official,
10 public employee or a member of the immediate family of a
11 party officer, public officer or public official shall be
12 employed as a management-level authority employee.
13 Notwithstanding the provisions of this paragraph, the
14 Secretary of the Budget of the Commonwealth and any other
15 member of the Governor's cabinet, and the chief financial
16 officer of the city in which the convention center is located
17 and any other member of the Mayor's cabinet may serve on the
18 governing board of the authority as provided by section 11.
19 (2) No person convicted of an infamous crime shall be
20 employed as a management-level employee by the authority.
21 (b) Restricted activities; statement of financial interests;
22 public meetings and records.--The provisions of the act of
23 October 4, 1978 (P.L.883, No.170), referred to as the Public
24 Official and Employee Ethics Law, and the act of July 19, 1957
25 (P.L.1017, No.451), known as the State Adverse Interest Act, are
26 hereby made specifically applicable to board members, officers
27 and employees of the authority. For the purposes of application
28 of such acts, employees of the authority shall be regarded as
29 public employees of the Commonwealth and officers or board
30 members of the authority shall be regarded as public officials
19850S0655B1850 - 36 -
1 of the Commonwealth, whether or not they receive compensation.
2 The authority shall also be subject to the act of July 19, 1974
3 (P.L.486, No.175), referred to as the Public Agency Open Meeting
4 Law, relating to open meetings and the act of June 21, 1957
5 (P.L.390, No.212), referred to as the Right-to-Know Law,
6 relating to the inspection and copying of public records.
7 (c) Conflicts of interest.--Notwithstanding the provisions
8 of subsection (b) the following prohibitions shall apply to the
9 authority created by this act:
10 (1) No management level employee or other employee of
11 the authority shall use his position with the authority or
12 any confidential information received through his position
13 with the authority to obtain financial gain other than
14 compensation provided by law for himself, a member of his
15 immediate family, or a business with which he is associated.
16 (2) No person shall offer or give to a management level
17 employee or other employee of the board or a member of his
18 immediate family or a business with which he is associated,
19 and no management level employee or other employee of the
20 board shall solicit or accept, anything of value, including a
21 gift, loan, political contribution, reward or promise of
22 future employment based on any understanding that the vote,
23 official action, or judgment of the management level employee
24 or other employee of the board would be influenced thereby.
25 (3) No management level employee or other employee of
26 the board or a member of his immediate family or any business
27 in which the person or a member of the person's immediate
28 family is a director, officer, owner or holder of stock
29 exceeding 5% of the equity at fair market value of the
30 business shall enter into any contract valued at $500 or more
19850S0655B1850 - 37 -
1 to provide goods or services to the authority unless the
2 contract has been awarded to the lowest responsible bidder
3 through an open and public process, including prior public
4 notice and subsequent public disclosure of all proposals
5 considered and contracts awarded.
6 (4) No former management level employee or other
7 employee of the board shall represent a person, with or
8 without compensation, on any matter before the authority with
9 which he has been associated for one year after he leaves the
10 authority.
11 (5) Any individual who is a State, city or county public
12 officer or public official or any party officer or member of
13 the immediate family of any such individuals, or business
14 with which such individuals or members of their immediate
15 families are associated shall not have a financial interest
16 in any contract valued at $500 or more to provide goods or
17 services to the authority either during the time such person
18 holds such office, or for two years after such person
19 terminates such office, unless such contract is executed
20 pursuant to the provisions of subsection (c)(3). For purposes
21 of this paragraph, the term "financial interest" shall not
22 include employment by, association with or ownership of a
23 business association unless the public officer, public
24 official, party officer or member of the immediate family of
25 such individual owns shares of stock in any such corporation
26 in an amount in excess of 5% of the total issue for the stock
27 of any said corporation, or has an ownership interest in any
28 noncorporate business association in an amount in excess of
29 5% of the total ownership of such a noncorporate business
30 association.
19850S0655B1850 - 38 -
1 (6) No management level employee or other employee of
2 the board or an advisor or consultant to the city, a county,
3 or the State having recommended to the authority which he
4 serves, either the making of a contract relating to a
5 convention center authority or a course of action of which
6 the making of such a contract is an express or implied part,
7 shall, at any time thereafter, have an adverse interest in
8 such contract.
9 (7) No management level employee or other employee of
10 the authority, the city, a county, or the State shall
11 influence, or attempt to influence, the making of or
12 supervise or in any manner deal with any contract with the
13 authority in which he has an adverse interest.
14 (8) No management level employee or other employee shall
15 have an adverse interest in any contract with the authority.
16 (9) No person having an adverse interest in a contract
17 with the authority, shall become a management level employee
18 or other employee of the authority until such adverse
19 interest shall have been wholly divested.
20 (10) No management level employee or other employee of
21 the authority, the city, a county, or the State, except in
22 the performance of his duties as such employee, shall, for
23 remuneration, directly or indirectly, represent any other
24 person upon any matter pending before the authority.
25 (d) Enforcement; penalties.--
26 (1) Any person who violates the provisions of this
27 section shall have his employment by the authority
28 immediately terminated by the appropriate person having the
29 power to terminate and shall be liable to the authority to
30 reimburse the authority for all compensation received by him
19850S0655B1850 - 39 -
1 from the authority while employed in violation of subsection
2 (a).
3 (2) Any person who violates the provisions of subsection
4 (c)(1) or (2) is guilty of a felony and shall be fined not
5 more than $10,000 or imprisoned for not more than five years,
6 or be both fined and imprisoned.
7 (3) Any person who violates the provision of subsection
8 (c)(3) through (10) is guilty of a misdemeanor and shall be
9 fined not more than $1,000 or imprisoned for not more than
10 one year, or be both fined and imprisoned.
11 (4) Any person who obtains financial gain from violating
12 any provisions of subsection (c), in addition to any other
13 penalty provided by law, shall pay into the accounts of the
14 authority a sum of money equal to three times the financial
15 gain resulting from such violation.
16 (5) Any person who violates the provisions of subsection
17 (c) shall be barred for a period of five years from engaging
18 in any business or contract with the authority, the city, the
19 State and any political subdivision.
20 (6) Any employee of the city, State or any political
21 subdivision or any public officer or public official who
22 violates any of the provisions of subsection (c) shall
23 automatically forfeit any such office or employment he may
24 then hold.
25 (7) The penalties and sanctions provided by this section
26 shall supersede any similar penalties and sanctions provided
27 by the Public Official and Employee Ethics Law and State
28 Adverse Interest Act.
29 (e) Definitions.--As used in this section the following
30 words and phrases shall have the meanings given to them in this
19850S0655B1850 - 40 -
1 subsection:
2 "Business." Any corporation, partnership, sole
3 proprietorship, firm, enterprise, franchise, association,
4 organization, self-employed individual, holding company, joint
5 stock company, receivership, trust or any legal entity organized
6 for profit or as a not-for-profit corporation or organization.
7 "Business with which he is associated." Any business in
8 which the person or a member of the person's immediate family is
9 a director, officer, owner, employee or holder of stock.
10 "County." A county within the Philadelphia Metropolitan
11 Statistical Area as defined in this act.
12 "Immediate family." A parent, spouse, child, brother, sister
13 or like relative-in-law.
14 "Infamous crime." Any violation and conviction for an
15 offense which would disqualify an individual from holding public
16 office pursuant to section 6 of Article II of the Constitution
17 of Pennsylvania, or any conviction for a violation of this
18 section, 18 Pa.C.S. § 4113 (relating to misapplication of
19 entrusted property and property of government or financial
20 institutions), 18 Pa.C.S. Ch. 47 (relating to bribery and
21 corrupt influence), 49 (relating to falsification and
22 intimidation), 51 (relating to obstructing governmental
23 operations), 53 (relating to abuse of office) or any other
24 violation of the laws of the Commonwealth for which an
25 individual has been convicted within the preceding ten years and
26 which is classified as a felony, and any similar violations of
27 the laws of any other state or the Federal government.
28 "Management-level authority employee." The chairman and
29 members of the board of the authority, counsel employed by the
30 authority, the executive director of the authority and any
19850S0655B1850 - 41 -
1 authority employee with discretionary powers which may affect
2 the outcome of the authority's decision in relation to a private
3 corporation or business or any employee who by virtue of his job
4 function could influence the outcome of such a decision.
5 "Party officer." The following members or officers of any
6 political party:
7 (1) a member of a national committee;
8 (2) a chairman, vice chairman, secretary, treasurer or
9 counsel of a State committee or member of the executive
10 committee of a State committee;
11 (3) a county chairman, vice chairman, counsel, secretary
12 or treasurer of a county committee; or
13 (4) a city chairman, vice chairman, counsel, secretary
14 or treasurer of a city committee.
15 "Person." A business, individual, corporation, union,
16 association, firm, partnership, committee, club or other
17 organization or group of persons.
18 "Public employee." Any individual employed by the
19 Commonwealth or a political subdivision who is responsible for
20 taking or recommending official action of a nonministerial
21 nature with regard to:
22 (1) contracting or procurement;
23 (2) administering or monitoring grants or subsidies;
24 (3) planning or zoning;
25 (4) inspecting, licensing, regulating or auditing any
26 person; or
27 (5) any other activity where the official action has an
28 economic impact of greater than a de minimus nature on the
29 interest of any person.
30 A public employee shall not include individuals who are employed
19850S0655B1850 - 42 -
1 by the State or any political subdivision thereof in teaching as
2 distinguished from administrative duties.
3 "Public officer." Every person elected to any public office
4 of the Commonwealth or any political subdivision thereof.
5 "Public official." Any elected or appointed official in the
6 Executive, Legislative or Judicial Branch of the State or any
7 political subdivision thereof, provided that it shall not
8 include members of advisory boards that have no authority to
9 expend public funds other than reimbursement for personal
10 expense, or to otherwise exercise the power of the State or any
11 political subdivision thereof. "Public official" shall not
12 include any appointed official who receives no compensation
13 other than reimbursement for actual expenses.
14 Section 17. Acquisition of lands.
15 The authority shall have the power to acquire, by purchase or
16 eminent domain proceedings, either the fee or such right, title,
17 interest or easement or any combination thereof in such lands
18 within the city as the authority may deem necessary for the
19 purpose mentioned in this act. The right of eminent domain shall
20 be exercised by the authority in the manner provided by the act
21 of June 22, 1964 (Sp.Sess., P.L.84, No.6), known as the Eminent
22 Domain Code.
23 Section 18. Use and operation of convention center.
24 The use and operation of the convention center, and any parts
25 thereof, and the operation of the business of the authority
26 shall be subject to the rules and regulations from time to time
27 adopted by the authority: Provided, however, That the authority
28 shall not be authorized to do anything which will impair the
29 security of the obligees of the authority or violate any
30 agreements with them or for their benefit, or violate any
19850S0655B1850 - 43 -
1 contracts, leases or other agreements awarded, made or entered
2 into by the authority.
3 Section 19. Limitation of powers.
4 (a) Commonwealth pledge.--The Commonwealth does hereby
5 pledge to and agree with any person, the city, political
6 subdivision, or Federal agency, subscribing to or acquiring the
7 bonds to be issued by the authority for the construction or
8 improvement of a convention center or parts thereof, that the
9 Commonwealth will not limit or alter the rights hereby vested in
10 the authority in any manner inconsistent with the obligations to
11 such bondholders until all bonds at any time issued, together
12 with the interest thereon, are fully paid and discharged. The
13 Commonwealth does further pledge to and agree with any Federal
14 agency that in the event that any Federal agency shall construct
15 or contribute any funds for the construction or improvement of a
16 convention center, or parts thereof, that the Commonwealth will
17 not alter or limit the rights and powers of the authority in any
18 manner which would be inconsistent with the due performance of
19 any agreements between the authority and any such Federal
20 agency.
21 (b) Additional Commonwealth pledge.--The Commonwealth does
22 hereby pledge to and agree with any person who, as owner
23 thereof, leases or subleases a convention center or parts
24 thereof to or from an authority created pursuant to this act,
25 that the Commonwealth will not limit or alter the rights and
26 powers hereby vested in the authority or otherwise created by
27 this act in any manner which impairs the obligations of the
28 authority until all such obligations of the authority under such
29 lease or sublease are fully met and discharged.
30 Section 20. Exemption from taxation.
19850S0655B1850 - 44 -
1 The effectuation of the authorized purposes of authorities
2 created under this act shall and will be in all respects for the
3 benefit of the people of this Commonwealth, for the increase of
4 their commerce and prosperity and for the improvement of their
5 health and living conditions, and, since authorities will, as
6 public instrumentalities of the Commonwealth, be performing
7 essential governmental functions in effectuating such purposes,
8 such authorities shall not be required to pay any taxes or
9 assessments upon a convention center or parts thereof or any
10 property acquired or used or permitted to be used by them for
11 such purposes, and the bonds issued by any authority, their
12 transfer and the income therefrom (including any profits made on
13 the sale thereof) shall, at all times, be free from State and
14 local taxation within this Commonwealth. This exemption shall
15 not extend to gift, estate, succession or inheritance taxes or
16 any other taxes not levied directly on the bonds, the transfer
17 thereof, the income therefrom or the realization of profits on
18 the sale thereof.
19 Section 21. Lease by authorities.
20 A convention center or part thereof established under this
21 act may be leased or subleased by the authority to and from the
22 city and the said city is hereby empowered to enter into leases,
23 subleases, or both, for such purpose. Any such lease or sublease
24 may be made for a specified or unlimited time and on any terms
25 and conditions which may be approved by the city and which may
26 be agreed to by the authority in conformity with its contracts
27 with the holders of any bonds.
28 Section 22. Cooperation.
29 (a) State public bodies and political subdivisions may
30 cooperate.--For the purpose of aiding and cooperating with the
19850S0655B1850 - 45 -
1 authority and in the planning, acquisition, clearance,
2 relocation, development, design, construction, rehabilitation,
3 leasing, subleasing, alteration, expansion, financing,
4 improvement, management or operation of a convention center or
5 parts thereof, any State public body, political subdivision or
6 the city may, upon such terms, with or without consideration, as
7 it may determine:
8 (1) Dedicate, sell, convey, lease or otherwise transfer
9 any of its property or any interest therein, real, personal
10 or mixed, tangible or intangible, to the authority.
11 (2) Cause parking, recreational or community facilities,
12 or any other works, which it is otherwise empowered to
13 undertake, to be furnished in or adjacent to any area
14 selected for a convention center or parts thereof.
15 (3) Furnish, dedicate, close, pave, install, grade,
16 regrade, plan or replan streets, roads, roadways, alleys,
17 sidewalks or other places which it is otherwise empowered so
18 to do.
19 (4) Enter into agreements, extending over any period,
20 with the authority or with the Federal Government respecting
21 action to be taken by any State public body, pursuant to any
22 of the powers granted by this section.
23 (5) Do any and all things necessary or convenient to aid
24 and cooperate in the development, acquisition, design,
25 construction, improvement, maintenance, management,
26 operation, furnishing, fixturing, equipping, repairing,
27 financing, owning, leasing, and subleasing of a convention
28 center or parts thereof.
29 (6) In connection with any public improvements made by
30 any State public body, political subdivision or the city, in
19850S0655B1850 - 46 -
1 exercising the powers herein granted, any State public body,
2 political subdivision or the city may incur the entire
3 expense thereof.
4 (7) The Secretary of General Services is authorized,
5 with the approval of the Governor and Attorney General, to
6 execute and deliver on behalf of the Commonwealth,
7 conveyances, deeds and leases authorized under this act.
8 (b) City may contract with authority.--In connection with a
9 convention center or parts thereof the city may contract with
10 the authority or the Federal Government with respect to any sums
11 which the said authority or the Federal Government may agree to
12 pay during any year or period of years to such city for the
13 improvements, services and facilities to be provided by it for
14 the benefit of the authority, convention center or parts
15 thereof, or the persons occupying such area: Provided, however,
16 That the absence of a contract for such payments shall, in no
17 way, relieve the city from the duty to furnish for the benefit
18 of the authority, convention center or parts thereof or the
19 persons occupying such area, customary improvements and such
20 services and facilities as the city usually furnishes without a
21 service fee.
22 (c) City and State may designate authority as its agent.--
23 The State or the city may, by written agreement, designate the
24 authority as its agent within the authority's field of operation
25 to perform any specified activity or to administer any specified
26 program which the State or the city is authorized by law to do:
27 Provided, however, That any such activities or programs shall be
28 in furtherance of the public purposes specified in this act.
29 Such activities may include, without being limited to,
30 development, acquisition, design, construction, improvement,
19850S0655B1850 - 47 -
1 maintenance, leasing, management or operation of a convention
2 center or parts thereof.
3 (d) Powers in addition to other powers.--The powers
4 conferred by this section shall be in addition and supplemental
5 to the powers conferred by any other law.
6 Section 23. Hotel room rental tax.
7 (a) Definitions.--In addition to the definitions provided by
8 section 3, the following words and phrases when used in this
9 section shall have the meanings given to them in this section
10 unless the context clearly requires otherwise:
11 "Consideration." Receipts, fees, charges, rentals, leases,
12 cash, credits, property of any kind or nature, or other payment
13 received by operators in exchange for or in consideration of the
14 use or occupancy by a transient of a room or rooms in a hotel
15 for any temporary period.
16 "Hotel." A hotel, motel, inn, guesthouse or other building
17 located within the city which holds itself out by any means
18 including advertising, license, registration with any
19 innkeeper's group, convention listing association, travel
20 publication or similar association or with any government agency
21 as being available to provide overnight lodging or use of
22 facility space for consideration to persons seeking temporary
23 accommodation; any place which advertises to the public at large
24 or any segment thereof that it will provide beds, sanitary
25 facilities or other space for a temporary period to members of
26 the public at large; any place recognized as a hostelry,
27 provided that portions of such facility which are devoted to
28 persons who have established permanent residence shall not be
29 included in this definition.
30 "Occupancy." The use or possession or the right to the use
19850S0655B1850 - 48 -
1 or possession by any person other than a permanent resident of
2 any room in a hotel for any purpose or the right to the use or
3 possession of the furnishings or to the services accompanying
4 the use and possession of the room.
5 "Operator." Any individual, partnership, nonprofit or
6 profit-making association or corporation or other person or
7 group of persons who maintain, operate, manage, own, have
8 custody of, or otherwise possess the right to rent or lease
9 overnight accommodations in any hotel to the public for
10 consideration.
11 "Patron." Any person who pays the consideration for the
12 occupancy of a room or rooms in a hotel.
13 "Permanent resident." Any person who has occupied or has the
14 right to occupy any room or rooms in a hotel as a patron or
15 otherwise for a period exceeding 30 consecutive days.
16 "Room." A space in a hotel set aside for use and occupancy
17 by patrons, or otherwise, for consideration, having at least one
18 bed or other sleeping accommodations provided therein.
19 "Temporary." A period of time not exceeding 30 consecutive
20 days.
21 "Tourist promotion agency." The agency designated by the
22 council of the city in which the convention center is located to
23 be eligible for grants from the Department of Commerce pursuant
24 to the act of April 28, 1961 (P.L.111, No.50), known as the
25 Tourist Promotion Law.
26 "Transaction." The activity involving the obtaining by a
27 transient or patron of the use or occupancy of a hotel room from
28 which consideration emanates to the operator under an express or
29 an implied contract.
30 "Transient." Any individual who obtains an accommodation in
19850S0655B1850 - 49 -
1 any hotel for himself by means of registering at the facility
2 for the temporary occupancy of any room for the personal use of
3 that individual by paying to the operator of the facility a fee
4 in consideration therefor.
5 (b) Imposition of tax.--The council of the city in which the
6 convention center is located is hereby authorized to impose an
7 excise tax on the consideration received by each operator of a
8 hotel within the city from each transaction of renting a room or
9 rooms to accommodate transients. The tax shall be collected by
10 the operator from the patron of the room and paid over to the
11 city pursuant to subsection (e) and shall be known as the Hotel
12 Room Rental Tax.
13 (c) Rate of tax.--The rate of tax imposed under this section
14 by the council of the city in which the convention center is
15 located shall not exceed:
16 (1) three percent on the effective date of this act;
17 (2) five percent effective July 1, 1986;
18 (3) six percent effective 30 days after the substantial
19 completion of the main convention area; and
20 (4) in the event that construction of the main
21 convention center proper is not commenced by December 31,
22 1988, the maximum rate of tax shall be 3% subject to the
23 terms and conditions of subsection (d).
24 The total rate of tax imposed pursuant to this section and
25 section 202 of Article II of the act of March 4, 1971 (P.L.6,
26 No.2), known as the Tax Reform Code of 1971 shall not exceed
27 12%. In the event the rate of tax imposed pursuant to section
28 202 of Article II of the Tax Reform Code of 1971 shall exceed 6%
29 and the rate of tax imposed pursuant to this section shall have
30 reached 6%, the rate of tax imposed pursuant hereto shall be
19850S0655B1850 - 50 -
1 reduced in order that the aggregate tax rate not exceed 12%.
2 (d) Distribution of tax revenues.--There shall be annually
3 deposited in a special fund, established pursuant to subsection
4 (e), for the use of tourist promotion agencies for tourist
5 promotion activities 100% of all revenues to be received from
6 taxes imposed pursuant to this section prior to July 1, 1986.
7 Thereafter, there shall be annually deposited in the special
8 fund, established pursuant to subsection (e), for the use of
9 tourist promotion agencies for tourist promotion agency
10 activities:
11 (1) Sixty percent of all revenues received from taxes
12 imposed pursuant to this section for the fiscal year of the
13 city commencing July 1, 1986, until the next fiscal year of
14 the city following substantial completion of the main
15 convention area.
16 (2) Forty-one and two-thirds percent of all revenues
17 received pursuant to this section for the next fiscal year of
18 the city commencing after the substantial completion of the
19 main convention area and each fiscal year thereafter ending
20 prior to July 1, 1999.
21 (3) Thirty-three and one-third percent of all revenues
22 received pursuant to this section for the fiscal year of the
23 city commencing on or after July 1, 1999, and each fiscal
24 year thereafter ending prior to July 1, 2010.
25 (4) Twenty-nine and one hundred and sixty-six one
26 thousandths percent of all revenues received pursuant to this
27 section for the fiscal year of the city commencing on or
28 after July 1, 2010, and each fiscal year thereafter ending
29 prior to July 1, 2015.
30 (5) Twenty-five percent of all revenues received
19850S0655B1850 - 51 -
1 pursuant to this section for the fiscal year of the city
2 commencing July 1, 2015, and thereafter.
3 The balance of revenues to be received from taxes imposed
4 pursuant to this section shall be deposited annually in the
5 special fund, established pursuant to subsection (e), for the
6 use of the authority for convention center purposes, provided
7 that, notwithstanding the other provisions of this subsection,
8 in the event that construction of the main convention area is
9 not commenced by December 31, 1988, all revenues received
10 pursuant to this section for the period after December 31, 1988,
11 shall be used for tourist promotion agency purposes.
12 (e) Deposit.--The tax collector of each city electing to
13 impose the tax authorized under this section is hereby directed
14 to collect the tax and to deposit the revenues received from the
15 tax in special funds established for purposes set forth herein.
16 Interest on moneys deposited in the funds shall accrue
17 proportionately to the respective funds as provided herein. The
18 tax collector is hereby authorized to establish rules and
19 regulations concerning the collection of the tax.
20 (f) Expenditures.--Expenditures from the funds established
21 pursuant to subsection (e) for the tourist promotion agency
22 shall be used by the designated tourist promotion agency for:
23 (1) advertising and publicizing tourist attractions in
24 the area served by the agency;
25 (2) promoting and attracting conventions, exhibitions
26 and other functions to utilize facilities in the area served
27 by the agency;
28 (3) promoting and otherwise encouraging the use of the
29 facilities in the area served by the agency by the public as
30 a whole; and
19850S0655B1850 - 52 -
1 (4) costs associated with the development and operation
2 of the convention center.
3 (g) Expenditures for convention center purposes.--
4 Expenditures from the fund established pursuant to subsection
5 (e) for the authority shall be used by the authority for the
6 following uses:
7 (1) Projected annual debt service or lease payments of
8 the convention center authority.
9 (2) Costs associated with financing, constructing,
10 improving, maintaining, furnishing, fixturing and equipping
11 the convention center.
12 (3) Costs associated with the development of the
13 convention center, including, but not limited to, design,
14 engineering and feasibility costs.
15 (4) Costs associated with the operation and management
16 of the convention center.
17 (5) Costs associated with promoting, marketing and
18 otherwise encouraging use of the convention center.
19 (6) General purposes of the convention center.
20 (h) Pledge to bondholders.--If and to the extent that the
21 authority pledges its share of the proceeds of the tax
22 authorized by this section as security for the payment of bonds
23 issued by the authority for convention center purposes, the
24 Commonwealth does hereby pledge to and agree with any person,
25 firm or corporation subscribing to or acquiring bonds to be
26 issued by the authority for convention center purposes that the
27 Commonwealth itself will not, except to the extent provided in
28 subsection (c), nor will it authorize any city to reduce the
29 rate of tax imposed for convention center purposes until all
30 bonds so secured by the pledge of the authority, together with
19850S0655B1850 - 53 -
1 the interest thereon, are fully met and discharged.
2 (i) Tax year.--Each tax year for any tax imposed hereunder
3 shall run concurrently with the city's fiscal year.
4 Section 24. Repeals.
5 (a) Specific repeal.--The act of December 7, 1982 (P.L.808,
6 No.226), known as the First Class City Hotel Room Rental Tax
7 Act, is repealed upon the effective date of any ordinance
8 adopted by the council of the city in which the convention
9 center is located enacting the tax authorized by section 23.
10 (b) General.--All acts and parts of acts are repealed
11 insofar as they are inconsistent with this act.
12 Section 25. Effective date.
13 This act shall take effect immediately.
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