SB-1515, As Passed Senate, November 10, 2010

SUBSTITUTE FOR

SENATE BILL NO. 1515

     A bill to amend 1980 PA 395, entitled

"Community convention or tourism marketing act,"

by amending sections 3 and 6 (MCL 141.873 and 141.876), section 3

as amended by 1996 PA 589.

THE PEOPLE OF THE STATE OF MICHIGAN ENACT:

     Sec. 3. (1) A bureau that intends to establish a marketing

program and assessment district shall file a marketing program

notice with the director. The marketing program notice shall state

that the bureau proposes to create a marketing program under this

act and cause an assessment to be collected from owners of

transient facilities within the assessment district to pay the

costs of the marketing program.

     (2) The marketing program notice shall describe the structure,

membership, and activities of the bureau.

     (3) The marketing program notice shall describe the marketing

program to be implemented by the bureau with the assessment

revenues, specify the amount of the assessment proposed to be

levied, which, except as provided in this subsection, shall not

exceed 2% 5% of the room charges in the applicable payment period,

and describe the municipalities comprising the assessment district.

A bureau described in subsection (8) may impose an assessment of 4%

if the assessment and marketing program are approved by a majority

of the transient facilities located within a township described in

subsection (8) at a written referendum held by the director

pursuant to section 3a by mail or in person for the purpose of

which each owner shall have 1 vote for each room in an owner's

transient facility.

     (4) Except as provided in section 10, an area shall not be

included in the marketing program notice filed under this act and

the assessment district specified in the notice if the area is part

of an existing assessment district under this act for which a

marketing program is in effect.

     (5) If on the date of the mailing of the marketing program

notice under this act an excise tax or other tax based on a room

charge is not being collected, a municipality included in the

marketing program notice shall not be subject to the collection of

an excise tax imposed under Act No. 263 of the Public Acts of 1974,

being sections 141.861 to 141.867 of the Michigan Compiled Laws

1974 PA 263, MCL 141.861 to 141.867, or another tax based on a room

charge.

     (6) If a part of a municipality is subject to an assessment

under the convention and tourism marketing act, Act No. 383 of the

Public Acts of 1980, being sections 141.881 to 141.889 of the

Michigan Compiled Laws 1980 PA 383, MCL 141.881 to 141.889, that

part of the municipality shall not be included in a marketing

program notice or assessment district under this act.

     (7) Simultaneously with the filing of the marketing program

notice with the director, the bureau shall mail a copy of the

notice, by registered or certified mail, to each owner of a

transient facility located in the assessment district specified in

the notice, in care of the respective transient facility. In

assembling the list of owners to whom the notices shall be mailed,

the bureau shall use any data that is reasonably available to the

bureau.

     (8) A bureau that is located within a township that is a

municipality and, except for the assessment made under this

subsection, that does not assess a room charge on the owners of a

transient facility may impose an assessment of 4% if it meets all

of the following:

     (a) The assessment district is a township that is contiguous

to a county that levies an excise tax of 5% under Act No. 263 of

the Public Acts of 1974.

     (b) The owners representing not less than 80% of the rooms in

the assessment district are members of a nonprofit organization

formed to promote convention business or tourism that receives

funding from a tax levied under Act No. 263 of the Public Acts of

1974, in the contiguous county.

     (c) The bureau contracts with the nonprofit organization

formed to promote convention business or tourism that receives

funding from a tax levied under Act No. 263 of the Public Acts of

1974, in the contiguous county to promote convention business or

tourism and pays that nonprofit organization all of the assessment

revenues collected under this act for the promotion of convention

business or tourism.

     (d) The owners representing not less than 80% of the rooms in

the assessment district voluntarily contributed during the

nonprofit organization's preceding fiscal year to the nonprofit

organization formed to promote convention business or tourism that

receives funding from a tax levied under Act No. 263 of the Public

Acts of 1974, in the contiguous county, an amount equivalent to the

2% assessment permitted under this act for the promotion of

convention business or tourism.

     Sec. 6. (1) The assessment revenues collected pursuant to this

act shall not be state funds. The money shall be deposited in a

bank or other depository in this state, in the name of the bureau,

and shall be disbursed only for the expenses properly incurred by

the bureau with respect to the marketing programs developed by the

bureau under this act.

     (2) The financial statements of the bureau shall be audited at

least annually by a certified public accountant. A copy of the

audited financial statements shall be mailed to each owner not more

than 150 days after the close of the bureau's fiscal year. The

financial statements shall include a statement of all assessment

revenues received by the bureau during the fiscal year in question

and include the amount of wages and benefits for each full-time

employee of the bureau and shall be accompanied by a detailed

report, certified as correct by the chief operating officer of the

bureau, describing the marketing programs implemented or, to the

extent then known, to be implemented by the bureau.

     (3) Copies of the audited financial statements and the

certified report shall simultaneously be mailed to the director,

who shall make it available to the public on the internet. If the

bureau fails to submit copies of the audited financial statements

and the certified report to the director as provided in this

subsection, the director or his or her designee shall mail a demand

letter to the bureau requesting copies of the audited financial

statements and the certified report with a copy of that demand

letter forwarded to the attorney general. If the director or his or

her designee does not receive copies of the audited financial

statement and the certified report described in this subsection

within 90 days of the demand letter, upon notice by the director or

the attorney general, for the period of noncompliance with this

subsection, the bureau shall not expend any portion of the

assessment collected during the period of noncompliance with this

subsection. The attorney general may assist the director in

enforcing the provisions of this act.

     (4) If the bureau fails to provide the copies of the audited

financial statement and the certified report within 90 days of the

demand letter as provided in subsection (3), the bureau is

responsible for a state civil infraction and may be ordered to pay

a civil fine of not more than $10,000.00 and, in addition, the

attorney general may bring action to dissolve the bureau as

provided by law.