HOUSE BILL No. 4562

 

 

May 2, 2019, Introduced by Reps. Calley, Brixie, Paquette and Lilly and referred to the Committee on Commerce and Tourism.

 

     A bill to amend 2007 PA 25, entitled

 

"Convention and tourism promotion act,"

 

by amending sections 2 and 4 (MCL 141.1322 and 141.1324), section 2

 

as amended by 2018 PA 464.

 

THE PEOPLE OF THE STATE OF MICHIGAN ENACT:

 

     Sec. 2. As used in this act:

 

     (a) "Assessment" means the amount levied against an owner of a

 

transient facility within an assessment district computed by

 

application of the applicable percentage against aggregate room

 

charges with respect to that transient facility during the

 

applicable assessment period.

 

     (b) "Assessment district" means a municipality or a

 

combination of municipalities as described in a marketing program.


     (c) "Assessment revenues" means the money derived from the

 

assessment, including any interest and penalties on the assessment,

 

imposed by this act.

 

     (d) "Board" means the board of directors of a bureau.

 

     (e) "Bureau" means a nonprofit corporation incorporated under

 

the laws of this state existing solely to promote convention

 

business and tourism within this state or a portion of this state

 

and that complies with all of the following:

 

     (i) Has not less than 200 dues-paying members, of which not

 

fewer than 25 are owners of transient facilities.

 

     (ii) Has been actively engaged in promoting convention

 

business and tourism for not less than 10 years.

 

     (iii) Has a board of directors elected by its members.

 

     (iv) Has a full-time chief executive officer and not fewer

 

than 14 full-time equivalent employees.

 

     (v) Is a member of 1 or more nationally recognized

 

associations of travel and convention bureaus.

 

     (vi) Regularly books conventions at the community's largest

 

convention center, which generate hotel room nights throughout the

 

surrounding area.

 

     (f) "Director" means the chief executive officer of the

 

Michigan economic development corporation or his or her designee.

 

     (g) "Marketing program" means a program established by a

 

bureau to develop, encourage, solicit, and promote convention

 

business and tourism within this state or a portion of this state

 

within which the bureau operates. The encouragement and promotion

 

of convention business and tourism shall include any service,


function, or activity, whether or not performed, sponsored, or

 

advertised by a bureau, that intends to attract transient guests to

 

the assessment district.

 

     (h) "Marketing program notice" means the notice described in

 

section 3.

 

     (i) "Master plan" means the comprehensive, long-range master

 

plan developed by the Michigan travel commission and the travel

 

bureau under section 2c of the Michigan tourism policy act, 1945 PA

 

106, MCL 2.102c.

 

     (j) "Municipality" means a city, county, village, or township.

 

     (k) "Owner" means the owner of a transient facility located

 

within the assessment district or, if the transient facility is

 

operated or managed by a person other than the owner, then the

 

operator or manager of that transient facility.

 

     (l) "Room" means a room or other space provided for sleeping,

 

including the furnishings and other accessories in the room.

 

     (m) "Room charge" means the charge imposed for a short-term

 

rental or the use or occupancy of a room, excluding charges for

 

food, beverages, state use tax, telephone service or like services

 

paid in connection with the charge, and reimbursement of the

 

assessment imposed by this act.

 

     (n) "Short-term rental" and "short-term transient facilities"

 

mean those terms as defined in the Michigan short-term rental

 

promotion act.

 

     (o) (n) "Transient facility" means a short-term transient

 

facility or a building that contains 35 or more rooms used in the

 

business of providing dwelling, lodging, or sleeping to transient


guests, whether or not membership is required for the use of the

 

rooms. A transient facility shall not include a hospital or nursing

 

home.

 

     (p) (o) "Transient guest" means a natural person who occupies

 

a room in a transient facility for less than 30 consecutive days

 

regardless of who pays the room charge.

 

     (q) (p) "Travel bureau" means the Michigan travel bureau

 

created under section 2a of the Michigan tourism policy act, 1945

 

PA 106, MCL 2.102a.

 

     (r) (q) "Use tax" means the tax imposed under the use tax act,

 

1937 PA 94, MCL 205.91 to 205.111.

 

     Sec. 4. A marketing program may include all or any of the

 

following:

 

     (a) Provisions for establishing and paying the costs of

 

advertising, marketing, and promotional programs to encourage

 

convention business and tourism in the assessment district.

 

     (b) Provisions for assisting transient facilities within the

 

assessment district in promoting convention business and tourism.

 

     (c) Provisions for the acquisition of personal property

 

considered appropriate by the bureau in furtherance of the purposes

 

of the marketing program.

 

     (d) Provisions for the hiring of and payment for personnel

 

employed by the bureau to implement the marketing program.

 

     (e) Provisions for contracting with organizations, agencies,

 

or persons for carrying out activities in furtherance of the

 

purposes of the marketing program.

 

     (f) Programs for establishing and paying the costs of research


designed to encourage convention business and tourism in the

 

assessment district.

 

     (g) Provisions clarifying the assessment on room charges for

 

short-term rentals of short-term transient facilities.

 

     Enacting section 1. This amendatory act does not take effect

 

unless Senate Bill No.____ or House Bill No. 4554 (request no.

 

01509'19) of the 100th Legislature is enacted into law.