PRINTER'S NO. 3057
No. 2236 Session of 2003
INTRODUCED BY D. EVANS AND PERZEL, DECEMBER 9, 2003
REFERRED TO COMMITTEE ON TOURISM AND RECREATIONAL DEVELOPMENT,
DECEMBER 9, 2003
AN ACT
1 Amending Title 64 (Public Authorities and Quasi-Public
2 Corporations) of the Pennsylvania Consolidated Statutes,
3 recodifying provisions on the Pennsylvania Convention Center
4 Authority; further providing for definitions, for expansion
5 funding, for bond powers and for jurisdiction of the
6 Pennsylvania Supreme Court; providing for Pennsylvania
7 Convention Center Assistance Fund, for convention center
8 performance audits and for declaration of distress; further
9 providing for the governing board, for moneys of the
10 authority and for awarding of contracts; making conforming
11 amendments; and making related repeals.
12 The General Assembly of the Commonwealth of Pennsylvania
13 hereby enacts as follows:
14 Section 1. Title 64 of the Pennsylvania Consolidated
15 Statutes is amended by adding parts to read:
16 PART I
17 PRELIMINARY PROVISIONS
18 Chapter
19 1. General Provisions (Reserved)
20 PART II
21 PUBLIC AUTHORITIES
22 Chapter
1 60. Pennsylvania Convention Center Authority
2 CHAPTER 60
3 PENNSYLVANIA CONVENTION CENTER AUTHORITY
4 Sec.
5 6001. Scope.
6 6002. Findings and declaration of policy.
7 6003. Definitions.
8 6004. Authority created; existing authority continued.
9 6005. Purposes and powers; general.
10 6006. Capital and operating budgets.
11 6007. Expansion financing.
12 6007.1. Pennsylvania Convention Center Assistance Fund.
13 6008. Purposes and powers; bonds.
14 6009. Provisions of bonds, trusts, indentures and mortgages.
15 6010. Remedies of obligee of authority.
16 6011. Additional remedies conferrable by authority.
17 6012. Governing board.
18 6013. Sovereign immunity.
19 6014. Moneys of authority.
20 6015. Transfer of existing facilities or funds; making
21 of annual grants and lease payments to authority;
22 Commonwealth bonds.
23 6016. Award of contracts.
24 6017. Interests of public officers, public employees and
25 party officers.
26 6018. Acquisition of lands.
27 6019. Use and operation of convention center.
28 6019.1. Convention center performance audits; annual
29 performance reports.
30 6020. Limitation of powers.
20030H2236B3057 - 2 -
1 6021. Exemption from taxation.
2 6022. Lease by authority.
3 6023. Cooperation.
4 6024. Hotel room rental tax; continuation of existing tax.
5 § 6001. Scope of chapter.
6 This chapter deals with convention center authorities.
7 § 6002. Findings and declaration of policy.
8 It is hereby determined and declared as a matter of
9 legislative finding that:
10 (1) The health, safety and general welfare of the people
11 of this Commonwealth are directly dependent upon the
12 continual encouragement, development, growth and expansion of
13 business, industry, commerce and tourism within this
14 Commonwealth.
15 (2) Unemployment, the spread of indigency and the heavy
16 burden of public assistance and unemployment compensation can
17 be avoided by the promotion, attraction, stimulation,
18 development and expansion of business, industry, commerce and
19 tourism in this Commonwealth.
20 (3) Development and continuation of a major convention
21 center is most appropriate in a city of the first class
22 which, because of size, is capable of attracting major
23 national conventions and the attraction of business to this
24 Commonwealth as a result of the development and continuation
25 is an important factor in the continual encouragement,
26 promotion, attraction, stimulation, development, growth and
27 expansion of business, industry, commerce and tourism within
28 a city, the surrounding counties and this Commonwealth as a
29 whole.
30 (4) The purpose of a convention center should be the
20030H2236B3057 - 3 -
1 promotion, attraction, stimulation, development and expansion
2 of business, industry, commerce and tourism in a city, the
3 surrounding counties and this Commonwealth as a whole.
4 (5) The development and continuation of a convention
5 center will provide benefits to the hotel industry throughout
6 the entire area of the city where the convention center is
7 developed.
8 (6) The development and continuation of a convention
9 center will also provide benefits to the restaurant and
10 entertainment industries throughout the entire area of the
11 city where the convention center is located, to all other
12 businesses and individuals benefited by the attraction of
13 major conventions and tourists, to other individual
14 businesses whose livelihood is dependent on the attraction of
15 major conventions and tourists and to the general public.
16 (7) The need for and promotion of the type of facility
17 which provides and will continue to provide significant
18 benefits to the general public will require the expenditure
19 of public money and it is appropriate to authorize a city to
20 impose and collect a tax or continue to impose and collect a
21 tax, applicable within the entire territorial limits of the
22 city, to facilitate the development or continuation of a
23 convention center and the promotion of tourism within the
24 city.
25 (8) To promote the development and continuation of a
26 convention center within this Commonwealth, it is necessary
27 to provide additional and flexible means of developing,
28 constructing, designing, managing, financing and operating
29 such a convention center.
30 (9) An important aspect of the development and
20030H2236B3057 - 4 -
1 continuation of a convention center should be the removal of
2 blighted areas and the redevelopment of blighted areas.
3 (10) The policy of this Commonwealth is to promote the
4 health, safety, employment, business opportunities and
5 general welfare of the people of this Commonwealth by
6 providing for the creation and continuation of a convention
7 center authority, which shall exist and operate as a public
8 instrumentality of this Commonwealth for the public purpose
9 of promoting, attracting, stimulating, developing and
10 expanding business, industry, commerce and tourism in this
11 Commonwealth. This purpose is declared to be a public purpose
12 supporting the enactment of all provisions of this chapter
13 and for which public money may be spent, taxes may be imposed
14 and continued and private property may be acquired by the
15 exercise of the power of eminent domain.
16 § 6003. Definitions.
17 The following words and phrases when used in this chapter
18 shall 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 the Commonwealth and a
22 body politic and corporate created pursuant to this chapter or
23 created under the former provisions of section 4 of the act of
24 June 27, 1986 (P.L.267, No.70), known as the Pennsylvania
25 Convention Center Authority Act, formerly codified at 53 Pa.C.S.
26 Ch. 59 (relating to Pennsylvania Convention Center Authority).
27 "Board." The governing body of an authority.
28 "Bonds." Notes, bonds, refunding notes and bonds, interim
29 certificates, debentures and other evidence of indebtedness or
30 obligations which the authority is authorized to issue pursuant
20030H2236B3057 - 5 -
1 to this chapter or was authorized pursuant to the former
2 provisions of sections 7 and 8 of the act of June 27, 1986
3 (P.L.267, No.70), known as the Pennsylvania Convention Center
4 Authority Act, formerly codified at 53 Pa.C.S. Ch. 59 (relating
5 to Pennsylvania Convention Center Authority).
6 "City." Any city or county of the first class.
7 "Construction." The acquisition, design, erection,
8 extension, renovation, rehabilitation, conversion, furnishing,
9 fixturing, equipping, enlargement or substantial repair of a
10 convention center, or part of a convention center, and
11 activities substantially related to such acquisition, design,
12 erection, extension, renovation, rehabilitation, conversion,
13 furnishing, fixturing, equipping, enlargement or substantial
14 repair of a convention center, or part of a convention center.
15 "Convention center." Any land, improvement, structure,
16 building or part of a building, or a property interest in any
17 land, improvement, structure, building or part of a building,
18 whether owned by or leased by or to or otherwise acquired by the
19 authority, and appropriate for large public assemblies; the
20 holding of conventions; conferences; trade exhibitions; and
21 other business, social, cultural, scientific and public interest
22 events. The term includes the main convention area and other
23 buildings, structures or facilities for use in conjunction with
24 the main convention area, including provision for off-street
25 parking, retail areas and other improvements related to the
26 convention center owned by or leased by or to the authority for
27 the purpose of producing revenue to assist in defraying any
28 costs or expenses of the convention center.
29 "Cost of a project." All or any part of the cost of
30 construction, acquisition, alteration, enlargement, furnishing,
20030H2236B3057 - 6 -
1 fixturing and equipping, reconstruction and rehabilitation of a
2 convention center project. The term includes all of the
3 following:
4 (1) Cost of all lands, structures, real or personal
5 property, rights, rights-of-way, roads, franchises, easements
6 and interests acquired or used for or in connection with a
7 project.
8 (2) Cost of demolishing or removing any buildings or
9 structures on acquired land, including the cost of acquiring
10 lands to which buildings or structures may be moved or
11 located.
12 (3) Cost of all utility lines, structures or equipment.
13 (4) Charges, interest prior to, during and for a period
14 of six months after completion of construction and
15 acquisition.
16 (5) Provisions for reserves for principal and interest
17 and for extensions, enlargements, additions and improvements.
18 (6) Cost of architectural, engineering, financial and
19 legal services, plans, specifications, studies, surveys,
20 estimates of cost and of revenue.
21 (7) Expenses necessary or incident to determining the
22 feasibility or practicability of constructing the project.
23 (8) Other capital cost or expense as necessary or
24 incident to the construction, development and acquisition of
25 the project, to the financing of the construction,
26 development and acquisition and to the placing of the project
27 in operation. This paragraph includes a proper allowance for
28 contingencies and the provisions of reasonable initial
29 working capital for operating the project.
30 "Expansion or substantial renovation." Any construction with
20030H2236B3057 - 7 -
1 an estimated total cost of more than $300,000,000 initiated
2 after substantial completion.
3 "Federal agency" or "Federal Government." The United States
4 of America, the President of the United States of America and
5 any department or corporation, agency or instrumentality
6 designated or established by the United States of America.
7 "Main convention area." All facilities, furniture, fixtures
8 and equipment necessary or incident to the purposes of a
9 convention center. The term includes:
10 (1) meeting rooms, dining rooms, kitchens, ballrooms,
11 reception areas, registration and prefunction areas, truck
12 loading areas and access to truck loading areas, accessways,
13 common areas, lobbies and offices; and
14 (2) areas appurtenant to any of the areas listed in
15 paragraph (1).
16 "Obligee of the authority" or "obligee." Any bondholder,
17 trustee or trustees for any bondholders when a party to any
18 contract with the authority.
19 "Philadelphia Metropolitan Statistical Area." The
20 Philadelphia, Pennsylvania Metropolitan Division of the
21 Philadelphia-Camden-Wilmington, Pennsylvania-New Jersey
22 Delaware-Maryland Metropolitan Statistical Area as announced on
23 June 6, 2003, by the United States Office of Management and
24 Budget pursuant to Standards for Defining Metropolitan and
25 Micropolitan Statistical Areas by the Office of Management and
26 Budget as published in the Federal Register, Vol. 65, No. 249,
27 on December 27, 2000, to the 2000 Decennial Census of the United
28 States Census Bureau, comprising the Pennsylvania counties of
29 Philadelphia, Delaware, Bucks, Montgomery and Chester.
30 "Project." Any site, building, structure, equipment,
20030H2236B3057 - 8 -
1 furnishing and other facilities or undertaking in respect of a
2 convention center which the authority is authorized to acquire,
3 construct, improve, install, maintain or operate under the
4 provisions of this chapter.
5 "State public body." The Commonwealth and its executive,
6 administrative and independent agencies, its departments, its
7 officers, its boards, its authorities, its commissions and its
8 instrumentalities.
9 "Substantial completion." Construction that is sufficiently
10 completed in accordance with contract documents and certified by
11 the convention center authority's architect or engineer, as
12 modified by change orders which are subject to review and
13 approval by the Secretary of the Budget and the chief financial
14 officer of the city, so that the main convention area can be
15 used, occupied or operated for its intended use. In no event
16 shall a project be certified as substantially complete until at
17 least 90% of the work on the main convention area is completed.
18 § 6004. Authority created; existing authority continued.
19 (a) Creation.--A body corporate and politic, named the
20 Pennsylvania Convention Center Authority, is created and
21 continued as a public authority and government instrumentality
22 to have continuing succession until its existence shall be
23 terminated by law. The exercise by the authority of the powers
24 conferred by this chapter or under the former provisions of the
25 act of June 27, 1986 (P.L.267, No.70), known as the Pennsylvania
26 Convention Center Authority Act, formerly codified at 53 Pa.C.S.
27 Ch. 59 (relating to the Pennsylvania Convention Center
28 Authority), is declared to be and shall for all purposes be
29 deemed and held to be the performance of an essential public
30 function.
20030H2236B3057 - 9 -
1 (b) Transition provisions.--
2 (1) The authority established under the former
3 provisions of section 4 of the Pennsylvania Convention Center
4 Authority Act, formerly codified at 53 Pa.C.S. § 5904
5 (relating to authority created), shall be deemed for all
6 purposes to be the authority created under this chapter and
7 shall exercise those powers, functions and duties and be
8 governed by those provisions applicable to the authority
9 created under this chapter. Nothing in this chapter shall be
10 construed to alter or modify in any respect any contract,
11 bond or other obligation of the authority entered into prior
12 to the effective date of this chapter.
13 (2) The authority created or existing under this
14 chapter, including the authority established under the former
15 provisions of section 4 of the Pennsylvania Convention Center
16 Authority Act, formerly codified at 53 Pa.C.S. § 5904, shall,
17 without the necessity of action or assignment by it or any
18 other person:
19 (i) continue in the rights and responsibilities of
20 the authority existing under the former provisions of the
21 Pennsylvania Convention Center Authority Act, formerly
22 codified at 53 Pa.C.S. Ch. 59, for all purposes,
23 including, but not limited to, receipt of all grants,
24 gifts, appropriations, subsidies or other payments;
25 (ii) continue to be the owner, lessor or lessee of
26 any real or personal property and enjoy and be subject to
27 any and all rights and responsibilities appurtenant
28 thereto of the authority existing under the former
29 provisions of the Pennsylvania Convention Center
30 Authority Act, formerly codified at 53 Pa.C.S. Ch. 59,
20030H2236B3057 - 10 -
1 including, but not limited to, all assets, property, real
2 and personal, tangible and intangible, all leases,
3 easements and all evidences of ownership or other
4 interest, in part or in whole, and all records and other
5 evidences pertaining thereto; and
6 (iii) continue to be obligated with respect to all
7 debt, labor agreements and all other contractual
8 obligations of the authority existing under the former
9 provisions of the Pennsylvania Convention Center
10 Authority Act, formerly codified at 53 Pa.C.S. Ch. 59,
11 which debt, labor agreements and other contractual
12 obligations are hereby ratified and shall be valid,
13 binding and enforceable under this chapter.
14 (3) It is hereby declared to be the intent of the
15 General Assembly that the authority created or continuing
16 under this chapter, including the authority established under
17 the former provisions of section 4 of the Pennsylvania
18 Convention Center Authority Act, formerly codified at 53
19 Pa.C.S. Ch. 59, and the members, officers, officials and
20 employees of any of them, shall continue to enjoy sovereign
21 and official immunity as provided in 1 Pa.C.S. § 2310
22 (relating to sovereign immunity reaffirmed; specific waiver)
23 and shall remain immune from suit except as provided by and
24 subject to the provision of 42 Pa.C.S. Ch. 85 (relating to
25 matters affecting government units).
26 § 6005. Purposes and powers; general.
27 (a) General powers.--Every authority created or continued by
28 this chapter shall be a public body, corporate and politic,
29 exercising public powers of the Commonwealth as an agency and
30 instrumentality thereof and shall be for the purpose, without
20030H2236B3057 - 11 -
1 limitation, by itself or by agreement in cooperation with
2 others, of acquiring, holding, developing, designing,
3 constructing, improving, maintaining, managing, operating,
4 financing, furnishing, fixturing, equipping, repairing, leasing
5 or subleasing, either in the capacity of lessor or lessee or
6 sublessor or sublessee, and owning a convention center or parts
7 of a convention center.
8 (b) Specific powers.--The authority is granted all powers
9 necessary or convenient for the carrying out of the purposes in
10 subsection (a), including the following rights and powers:
11 (1) To have continuing succession.
12 (2) To be a party in all courts.
13 (3) To adopt, use and alter at will a corporate seal.
14 (4) To acquire by gift or otherwise, purchase, hold,
15 receive, lease, sublease and use any license, franchise or
16 property, real, personal or mixed, tangible or intangible, or
17 any interest in a license, franchise or property, including a
18 convention center or parts of a convention center.
19 (5) To sell, transfer or dispose of any property or
20 interest in property with adequate and fair consideration.
21 (6) To acquire, hold, develop, design, construct,
22 improve, maintain, manage, operate, furnish, fixture, equip,
23 repair, own, lease or sublease a convention center or parts
24 of a convention center and to make, enter into and award
25 contracts with any person, association, partnership or
26 corporation for the development, design, financing,
27 construction, improvement, maintenance, operation,
28 management, furnishing, fixturing, equipping and repair of a
29 convention center or parts of a convention center.
30 (7) To make bylaws for the management and regulation of
20030H2236B3057 - 12 -
1 its affairs and issue rules, regulations and policies in
2 connection with the performance of its functions and duties.
3 (8) To appoint officers, agents, employees and servants,
4 to prescribe their duties, to fix their compensation and to
5 establish work rules, work assignments and conditions of
6 employment for any officer, agent, employee or servant of the
7 authority.
8 (9) To fix, alter, charge and collect rentals,
9 admissions, license fees and other charges.
10 (10) To borrow money for the purpose of paying the costs
11 of any project and to evidence the debt; make and issue
12 negotiable bonds of the authority; secure the payment of the
13 bonds, or any part of the bonds, by pledge or deed of trust
14 of its revenue, rentals, receipts and contract rights; make
15 contracts with the purchasers or holders of bonds or with
16 other obligees of the authority in connection with any bonds,
17 whether issued or to be issued, as the authority deems
18 advisable; obtain credit enhancement or liquidity facilities
19 in connection with any bonds as the authority determines to
20 be advantageous; and, in general, provide for the security
21 for bonds and the rights of the holders of bonds.
22 (11) To make, enter into and award contracts to execute
23 all instruments necessary or convenient for the carrying out
24 of its business.
25 (12) To borrow money and accept grants and to enter into
26 contracts, leases, subleases, licenses or other transactions
27 with any Federal agency, State public body, political
28 subdivision, person, association, partnership or corporation.
29 (13) To have the power of eminent domain within a city
30 of the first class. Any condemnation by the authority shall
20030H2236B3057 - 13 -
1 be in the manner provided by the act of June 22, 1964
2 (Sp.Sess., P.L.84, No.6), known as the Eminent Domain Code.
3 (14) To pledge, hypothecate or otherwise encumber any of
4 its property, real, personal or mixed, tangible or
5 intangible, and its revenue or receipts, including, but not
6 limited to, any interest the authority may have in any lease
7 or sublease of a convention center or parts of a convention
8 center.
9 (15) To procure insurance containing coverages,
10 including, without limitation, insurance covering the timely
11 payment in full of principal of and interest on bonds of the
12 authority, in amounts and from insurers as the authority may
13 determine to be necessary or desirable for its purposes.
14 (16) To invest its money.
15 (17) To cooperate with any Federal agency, State public
16 body or political subdivision.
17 (18) To invest any funds held in reserve or sinking
18 funds or any funds not required for immediate disbursements,
19 as authorized by section 6014(d)(relating to moneys of
20 authority).
21 (19) To appoint all officers, agents and employees
22 required for the performance of its duties and fix and
23 determine their qualifications, duties and compensation and
24 retain or employ other agents or consultants, including, but
25 not limited to, architects, auditors, engineers, private
26 counsel and private consultants on a contract basis or
27 otherwise for rendering professional or technical services
28 and advice.
29 (19.1) To enroll or to continue to enroll its employees
30 in an existing retirement system of the State, city or other
20030H2236B3057 - 14 -
1 governmental entity.
2 (20) To appoint and fix the compensation of chief
3 counsel and assistant counsel to provide it with legal
4 assistance, for which purpose the authority shall not be
5 considered either an executive agency or an independent
6 agency for the purpose of the act of October 15, 1980
7 (P.L.950, No.164), known as the Commonwealth Attorneys Act,
8 but shall possess the same status for such purpose as the
9 Auditor General, State Treasurer and the Pennsylvania Public
10 Utility Commission, except that the provisions of section
11 204(b) and (f) of the Commonwealth Attorneys Act shall not
12 apply to the authority, and, notwithstanding the provisions
13 of 42 Pa.C.S. § 8525 (relating to legal assistance), the
14 authority through its counsel shall defend actions brought
15 against the authority and its officers and employees when
16 acting within the scope of their official duties.
17 (21) To maintain an office in the city.
18 (22) To appoint an executive director who shall:
19 (i) be the chief executive officer of the authority;
20 (ii) devote full time during business hours to the
21 duties of office; and
22 (iii) receive compensation as the board determines.
23 (23) To contract with an association with experience in
24 managing convention centers for the management of the
25 convention center.
26 (24) To do all acts and things necessary or convenient
27 for the promotion of its purposes and the general welfare of
28 the authority and to carry out the powers granted to it by
29 this chapter or any other acts.
30 (c) Limitation.--The authority shall have no power to pledge
20030H2236B3057 - 15 -
1 the credit or taxing powers of any State public body, any
2 political subdivision or the city, nor shall any of its
3 obligations be deemed obligations of any State public body, any
4 political subdivision or the city, nor shall any State public
5 body, any political subdivision or the city be liable for the
6 payment of principal or interest on the obligations.
7 (d) Affirmative action.--The authority shall develop and
8 implement an affirmative action plan to assure that all persons
9 are accorded equality of opportunity in employment and
10 contracting by the authority, its contractors, subcontractors,
11 assignees, lessees, agents, vendors and suppliers.
12 § 6006. Capital and operating budgets.
13 (a) Capital budget.--At least 90 days before the commencing
14 of the ensuing fiscal year of the authority, the board shall
15 cause to be prepared and submitted to it a recommended capital
16 budget. The capital budget shall show in detail the capital
17 expenditures to be made or incurred in the next fiscal year
18 which are to be financed from funds subject to control or
19 appropriation by the board. The capital budget shall be prepared
20 with the aid of the Secretary of the Budget and the chief
21 financial officer of the city and shall be in a form and detail
22 satisfactory to them. In the event that the capital budget is
23 not in a form and detail satisfactory to either the Secretary of
24 the Budget or the chief financial officer of the city, either
25 official may require that the capital budget be redrafted and
26 resubmitted. The official shall not be considered in receipt of
27 the capital budget or any amendments to it unless the form and
28 detail of the capital budget is satisfactory. For each separate
29 purpose, project, facility or other property, the amount and the
30 source of the money that has been spent, encumbered or is
20030H2236B3057 - 16 -
1 intended to be spent or encumbered during the fiscal year shall
2 be shown. No later than the date of the adoption of the annual
3 operating budget, the board shall adopt a capital budget by a
4 majority vote of its members.
5 (b) Operating budget.--At least 90 days before the
6 commencing of the ensuing fiscal year of the authority, the
7 board shall cause to be prepared and submitted to it a
8 recommended operating budget. The operating budget shall be
9 prepared with the aid of the chief financial officer of the city
10 and shall be in form and detail satisfactory to him. In the
11 event that the operating budget is not in a form and detail
12 satisfactory to the chief financial officer of the city, the
13 officer may require that the operating budget be redrafted and
14 resubmitted. The chief financial officer shall not be considered
15 to be in receipt of the operating budget or any amendments to
16 the operating budget unless the form and detail is to the
17 officer's satisfaction. The operating budget should set forth
18 the estimated receipts and revenue of the authority during the
19 next fiscal year. The board shall, at least 30 days before the
20 end of the fiscal year, adopt, by a majority vote of its
21 members, an operating budget for the next fiscal year.
22 (c) Additional approvals or disapprovals.--If the Secretary
23 of the Budget or the chief financial officer of the city in
24 which the convention center is located are among the members
25 appointed to the board of the authority or if they sit as ex
26 officio members of the board, each shall have the right to
27 approve or disapprove each line item of the capital budget of
28 the authority and any amendments to it as well as all change
29 orders. In addition, the chief financial officer of the city
30 shall have the right to approve or disapprove the total amount
20030H2236B3057 - 17 -
1 of the operating budget of the authority and any amendments
2 increasing the aggregate amount. In the case of both the capital
3 and operating budgets and change orders of the authority,
4 approval shall be presumed unless the chief financial officer of
5 the city has disapproved the entire operating budget or relevant
6 amendments to it or either the chief financial officer of the
7 city or the Secretary of the Budget has disapproved all or part
8 of the capital budget of the authority or amendments to it or
9 change orders within 30 days of the receipt of the respective
10 budgets, amendments to the respective budgets or change orders.
11 The Secretary of the Budget or the chief financial officer of
12 the city may establish a threshold level below which the
13 officers will not exercise their right to disapprove change
14 orders and may identify categories or types of change orders for
15 which they will not exercise that right.
16 (d) Project design.--Notwithstanding any other provisions of
17 this chapter to the contrary, the design for any capital project
18 undertaken by the authority shall be submitted to the Secretary
19 of the Budget and the chief financial officer of the city for
20 approval. No such capital project under this subsection may be
21 undertaken by the authority unless the schematic design and the
22 preliminary design development documents have been approved by
23 the Secretary of the Budget and the chief financial officer of
24 the city. The design and construction of any capital project for
25 the convention center may be divided into stages or phases for
26 which schematic design and preliminary design development
27 documents may be approved separately by the Secretary of the
28 Budget and the chief financial officer of the city and which may
29 be undertaken by the authority as if each stage or phase was a
30 separate capital project. In the case of the schematic design
20030H2236B3057 - 18 -
1 and preliminary design development documents for any capital
2 project or any stage or phase of a capital project, approval
3 shall be presumed unless the Secretary of the Budget or the
4 chief financial officer of the city has disapproved the design
5 and expressly set forth his objections to the documents within
6 45 days of the receipt of the documents. Further design approval
7 shall not be required provided the construction documents are
8 consistent with the design set forth in the schematic and
9 preliminary design development documents.
10 (e) Onsite inspectors.--The Secretary of the Budget may
11 appoint and designate an inspector or inspectors who shall have
12 complete authority to inspect any and all aspects of the
13 construction of any capital project undertaken by the authority.
14 Any inspection shall be made during normal business hours and
15 shall be conducted in such a manner as to not disrupt the work
16 of constructing the convention center and shall be made solely
17 for the purpose of observing the construction of the project.
18 The inspectors shall report to the Secretary of the Budget for
19 the purpose of assisting the secretary in carrying out his
20 duties and responsibilities as provided by this section.
21 § 6007. Expansion financing.
22 (a) Commonwealth funds.--Any grants of Commonwealth funds to
23 the authority or for use by the authority to finance any
24 expansion or substantial renovation of the convention center
25 shall be subject to the requirements of this section.
26 (b) Managerial audit.--
27 (1) If the board has not initiated or completed a
28 managerial audit within 12 months prior to the effective date
29 of this section, the board shall initiate a managerial audit
30 of the convention center to be performed by an independent
20030H2236B3057 - 19 -
1 auditor. The audit shall examine all of the following:
2 (i) payroll and personnel practices;
3 (ii) equipment controls and security;
4 (iii) management activities;
5 (iv) management control systems;
6 (v) cost overruns for conventions held at the
7 convention center;
8 (vi) labor productivity;
9 (vii) comparison of costs with convention centers in
10 other states;
11 (viii) work rules;
12 (ix) appropriate benchmarks for evaluation of
13 convention center performance;
14 (x) rebooking rates; and
15 (xi) any other items proposed by the board.
16 (2) The board shall order subsequent independent
17 managerial audits to evaluate compliance with audit
18 recommendations.
19 (c) Code of conduct.--The board shall establish a code of
20 conduct and a system to enforce the code of conduct.
21 (d) Customer service.--The board shall do all of the
22 following:
23 (1) Establish dispute resolution mechanisms for the use
24 of customers of the convention center.
25 (2) Adopt a plan for documenting, investigating and
26 resolving customer complaints.
27 (3) Implement the systematic collection of customer
28 feedback and monitor customer satisfaction.
29 (4) Adopt a system of program measures and benchmarks to
30 evaluate changes in customer satisfaction over time. The
20030H2236B3057 - 20 -
1 program measures shall include, but are not limited to,
2 customer perspectives on labor jurisdiction disputes, overall
3 labor environment and labor efficiency.
4 (e) Release.--Prior to the release of any Commonwealth funds
5 to finance any expansion or substantial renovation, the
6 Secretary of the Budget in his sole discretion shall certify to
7 the President pro tempore of the Senate and the Speaker of the
8 House of Representatives that the board has complied with
9 subsections (b), (c) and (d).
10 (f) Financial plan.--The authority shall submit a proposed
11 financial plan for an expansion or substantial renovation of the
12 convention center to the Governor, the President pro tempore of
13 the Senate, the Speaker of the House of Representatives and the
14 Pennsylvania Intergovernmental Cooperation Authority. The
15 financial plan shall be considered a public record. The
16 Pennsylvania Intergovernmental Cooperation Authority shall
17 provide a detailed analysis on the fiscal impact and financial
18 risks for the expansion or substantial renovation to the
19 Governor, the President pro tempore of the Senate and the
20 Speaker of the House of Representatives. The analysis shall be
21 considered a public record.
22 § 6007.1. Pennsylvania Convention Center Assistance Fund.
23 (a) Establishment.--There is established a special fund to
24 be known as the Pennsylvania Convention Center Assistance Fund.
25 (b) Operation.--The State Treasurer shall be custodian of
26 the Pennsylvania Convention Center Assistance Fund, which shall
27 be subject to the provisions of law applicable to funds listed
28 in section 302 of the act of April 9, 1929 (P.L.343, No.176),
29 known as The Fiscal Code. Taxes imposed and dedicated to, any
30 special revenues dedicated to, and with any other moneys made
20030H2236B3057 - 21 -
1 available to, the Pennsylvania Convention Center Assistance Fund
2 shall be received by the collector of those taxes or revenues
3 and be paid to the State Treasurer and, along with interest and
4 penalties, less any collection costs allowed by applicable law
5 and any refunds and credits paid, shall be credited to the
6 Pennsylvania Convention Center Assistance Fund not less
7 frequently than every two weeks. During any period prior to the
8 credit of moneys to the Pennsylvania Convention Center
9 Assistance Fund, interest earned on moneys received by the
10 Department of Revenue and paid to the State Treasurer on account
11 of the Pennsylvania Convention Center Assistance Fund shall be
12 deposited into the Pennsylvania Convention Center Assistance
13 Fund. All moneys in the Pennsylvania Convention Center
14 Assistance Fund, including, but not limited to, moneys credited
15 to the fund pursuant to any law that dedicates revenues to the
16 Pennsylvania Convention Center Assistance Fund, prior year
17 encumbrances and the interest earned thereon, shall not lapse or
18 be transferred to any other fund, but shall remain in the
19 Pennsylvania Convention Center Assistance Fund and must be used
20 exclusively for the purposes delineated in subsection (c).
21 Pending disbursement, moneys received on behalf of or deposited
22 into the Pennsylvania Convention Center Assistance Fund shall be
23 invested or reinvested as are other funds in the custody of the
24 State Treasurer in the manner provided by law. All earnings
25 received from the investment or deposit of moneys shall be
26 credited to the Pennsylvania Convention Center Assistance Fund.
27 All moneys and investments on deposit in or credited to the
28 Pennsylvania Convention Center Assistance Fund shall be at all
29 times property of the authority.
30 (c) Distribution of funding.--At least weekly, the State
20030H2236B3057 - 22 -
1 Treasurer shall disburse the total amount of moneys which are,
2 as of the close of business of the previous week, contained in
3 the Pennsylvania Convention Center Assistance Fund as follows:
4 (1) if the taxes or other moneys in or to be received by
5 the Pennsylvania Convention Center Assistance Fund have been
6 pledged by the authority to secure payment of bonds, payment
7 shall be made directly to the bond payment account, any debt
8 service reserve fund or as otherwise provided in any
9 agreement with an obligee of the authority; or
10 (2) if moneys have not been pledged or if additional
11 moneys remain in the Pennsylvania Convention Center
12 Assistance Fund after payment of any amounts pledged by the
13 authority as provided in paragraph (1), then payment shall be
14 made to or upon the order of the authority for its sole and
15 unrestricted use in accordance with the provisions of this
16 chapter. The State Treasurer shall make the initial
17 disbursement pursuant to this subsection at the end of the
18 third week of the month immediately following the first
19 receipt of funds in the Pennsylvania Convention Center
20 Assistance Fund.
21 § 6008. Purposes and powers; bonds.
22 (a) Authorization.--
23 (1) A bond must be authorized by resolution of the
24 board. The resolution may specify all of the following:
25 (i) Series.
26 (ii) Date of maturity not exceeding 40 years from
27 date of issue.
28 (iii) Interest.
29 (iv) Denomination.
30 (v) Form, either coupon or fully registered without
20030H2236B3057 - 23 -
1 coupons.
2 (vi) Registration, exchangeability and
3 interchangeability privileges.
4 (vii) Medium of payment and place of payment.
5 (viii) Terms of redemption.
6 (ix) Priorities in the revenue or receipts of the
7 authority.
8 (2) A bond must be signed by or must bear the facsimile
9 signature of such officers as the authority determines.
10 Coupon bonds must have attached interest coupons bearing the
11 facsimile signature of the treasurer of the authority as
12 prescribed in the authorizing resolution. A bond may be
13 issued and delivered notwithstanding that one or more of the
14 signing officers or the treasurer has ceased to be an officer
15 when the bond is actually delivered. A bond must be
16 authenticated by an authenticating agent, a fiscal agent or a
17 trustee, if required by the authorizing resolution.
18 (3) A bond may be sold at public or private sale for a
19 price determined by the authority. A bond may be sold at
20 private sale only if:
21 (i) the authority makes a written public explanation
22 of the circumstances and justification for the private
23 sale; and
24 (ii) the board approves the private sale by a vote
25 of at least eight members or a majority, whichever is
26 larger.
27 (4) Pending the preparation of a definitive bond,
28 interim receipts may be issued to the purchaser and may
29 contain terms and conditions as the authority determines.
30 (b) Negotiability.--A bond shall have all the qualities of
20030H2236B3057 - 24 -
1 negotiable instruments under 13 Pa.C.S. Div. 3 (relating to
2 negotiable instruments).
3 (c) Use of net proceeds.--The net proceeds of the issue of
4 bonds or notes may be used to pay the costs of the project or to
5 reimburse any costs initially paid by any State public body, the
6 city, other political subdivision, agency, organization or
7 person.
8 (d) Refunding authorized.--
9 (1) Subject to the provisions of the outstanding bonds,
10 notes or other obligations issued under the former provisions
11 of the act of June 27, 1986 (P.L.267, No.70), known as the
12 Pennsylvania Convention Center Authority Act, formerly
13 codified at 53 Pa.C.S. Ch. 59 (relating to Pennsylvania
14 Convention Center Authority), and, if not otherwise
15 inconsistent, subject to the provisions of this chapter, the
16 authority shall have the right and power to refund any
17 outstanding debt, in whole or in part, at any time and shall
18 have the right and power to refund any outstanding notes with
19 bonds or bonds with notes.
20 (2) As used in this subsection, the term "refund" shall
21 mean the issuance and sale of obligations the proceeds of
22 which are used or are to be used for the payment or
23 redemption of outstanding obligations upon or prior to
24 maturity.
25 § 6009. Provisions of bonds, trusts, indentures and mortgages.
26 In connection with the issuance of bonds or the incurring of
27 obligations under leases and in order to secure the payment of
28 such bonds and obligations, the authority, in addition to its
29 other powers, shall have the power to:
30 (1) Pledge all or any part of its gross or net revenue
20030H2236B3057 - 25 -
1 to which its right then exists or may thereafter come into
2 existence.
3 (2) Mortgage all or any part of its real or personal
4 property then owned or thereafter acquired.
5 (3) Covenant against pledging all or any part of its
6 revenue, or against mortgaging all or any part of its real or
7 personal property to which its right or title exists or may
8 come into existence, or against permitting or suffering a
9 lien on the revenue or property; to covenant with respect to
10 limitations on its right to sell, lease or otherwise dispose
11 of any of its real property; and to covenant as to what other
12 or additional debts or obligations may be incurred by it.
13 (4) Covenant as to the bonds to be issued and as to the
14 issuance of the bonds, in escrow or otherwise, and as to the
15 use and disposition of the proceeds of the bonds; to provide
16 for the replacement of lost, destroyed or mutilated bonds; to
17 covenant against extending the time for the payment of its
18 bonds or interest on the bonds; to redeem the bonds and to
19 covenant for their redemption; and to provide the terms and
20 conditions of the bonds.
21 (5) Covenant as to the amount of revenue to be raised
22 each year or other period of time by the authority as well as
23 to the use and disposition to be made of the revenue, to
24 create or to authorize the creation of special funds for debt
25 service or other purposes and to covenant as to the use and
26 disposition of the money held in the special funds.
27 (6) Prescribe the amount of bonds.
28 (7) Prescribe the procedure, if any, by which the terms
29 of a contract with bondholders may be amended or abrogated,
30 the percentage of bonds the consent of the holders of which
20030H2236B3057 - 26 -
1 is required for amendment or abrogation and the manner in
2 which consent of bondholders may be obtained.
3 (8) Covenant as to the use of any or all of its real or
4 personal property, to warrant its title and to covenant as to
5 the maintenance of its real and personal property, the
6 replacement of the property, the insurance to be carried on
7 the property and the use and disposition of insurance money.
8 (9) Covenant as to the rights, liabilities, powers and
9 duties arising upon the breach by it of any covenant,
10 condition or obligation and covenant and prescribe, in the
11 event of default, as to terms and conditions upon which its
12 bonds or obligations shall become or may be declared due
13 before maturity and as to the terms and conditions upon which
14 declaration and its consequences may be waived.
15 (10) Vest in a trustee or the holders of bonds, or any
16 proportion of them, the right to enforce the payment of the
17 bonds or any covenants securing or relating to the bonds; to
18 vest in a trustee the right, in the event of a default by the
19 authority, to take possession and use, operate and manage any
20 real property and to collect the rent and revenue arising
21 from the property and to dispose of the rent and revenue in
22 accordance with the agreement of the authority with the
23 trustee; to provide for the powers and duties of a trustee
24 and to limit liabilities of the trustee; and to provide the
25 terms and conditions upon which the trustee or the holders of
26 bonds, or any proportion of them, may enforce any covenant or
27 rights securing or relating to the bonds.
28 (11) Obtain letters of credit and bond insurance.
29 (12) Exercise all or any part or combination of the
30 powers granted under this chapter or under the former
20030H2236B3057 - 27 -
1 provisions of the act of June 27, 1986 (P.L.267, No.70),
2 known as the Pennsylvania Convention Center Authority Act,
3 formerly codified at 53 Pa.C.S. Ch. 59 (relating to the
4 Pennsylvania Convention Center Authority), to make covenants
5 other than and in addition to the covenants expressly
6 authorized in this chapter, to make covenants and to do any
7 and all such acts and things necessary or convenient or
8 desirable to secure its bonds or, in the absolute discretion
9 of the authority, as will tend to accomplish the purposes of
10 this chapter by making the bonds more marketable or by
11 managing the interest cost of the bonds, notwithstanding that
12 the covenants, acts or things may not be specifically
13 enumerated in this chapter.
14 (13) Negotiate and enter into interest rate exchange
15 agreements, interest rate cap, collar, corridor, ceiling and
16 floor agreements, forward agreements, float agreements and
17 other similar arrangements which, in the judgment of the
18 authority, will assist the authority in managing the interest
19 costs of the authority.
20 § 6010. Remedies of obligee of authority.
21 An obligee of the authority has the right, in addition to all
22 other rights which may be conferred on the obligee, subject only
23 to any contractual restrictions binding upon the obligee:
24 (1) By mandamus, suit, action or proceeding at law or in
25 equity, to compel the authority and the members, officers,
26 agents or employees thereof to perform each and every term,
27 provision and covenant contained in any bond or contract of
28 the authority with or for the benefit of the obligee and to
29 require the carrying out of any or all covenants and
30 agreements of the authority and the fulfillment of all duties
20030H2236B3057 - 28 -
1 imposed upon the authority by this chapter or under the
2 former provisions of the act of June 27, 1986 (P.L.267,
3 No.70), known as the Pennsylvania Convention Center Authority
4 Act, formerly codified at 53 Pa.C.S. Ch. 59 (relating to
5 Pennsylvania Convention Center Authority).
6 (2) By proceeding in equity, to obtain an injunction
7 against any acts or things which may be unlawful or the
8 violation of any of the rights of the obligee of the
9 authority.
10 § 6011. Additional remedies conferrable by authority.
11 (a) Additional remedies.--The authority has the power, by
12 its resolution, trust, indenture or mortgage, to confer upon any
13 obligees holding or representing a specified percentage of bonds
14 the right, in addition to all rights that may otherwise be
15 conferred, upon the happening of an event of default as defined
16 in the resolution or instrument, by suit, action or proceeding
17 in any court of competent jurisdiction:
18 (1) to obtain the appointment of a receiver of real
19 property or a leasehold interest of the authority and of the
20 rents and profits from the property or interest and, if a
21 receiver is appointed, to authorize the receiver to enter and
22 take possession of the real property or leasehold interest,
23 operate it, collect and receive all revenue or other income
24 arising from it and keep the money in a separate account and
25 apply it in accordance with the obligations of the authority
26 as the court directs; or
27 (2) to require the authority and its board members to
28 account as if it and they were the trustees of an express
29 trust.
30 (b) Authority of receiver.--Nothing in this section or any
20030H2236B3057 - 29 -
1 other section of this chapter shall authorize any receiver
2 appointed pursuant to this chapter for the purpose of operating
3 and maintaining any facilities of the authority to sell, assign,
4 mortgage or otherwise dispose of any of the assets, of whatever
5 kind or character, belonging to the authority. It is the
6 intention of this chapter to limit the powers of the receiver to
7 the operation and maintenance of the facilities of the authority
8 as the court shall direct, and no holder or holders of bonds of
9 the authority nor any trustee or other obligee shall ever have
10 the right in any suit, action or proceeding, at law or in
11 equity, to compel a receiver, nor shall any receiver ever be
12 authorized, or any court be empowered to direct the receiver, to
13 sell, assign, mortgage or otherwise dispose of any assets, of
14 whatever kind or character, belonging to the authority.
15 § 6012. Governing board.
16 (a) Appointment.--Except as provided in subsection (j) with
17 respect to the continuation in office of members of the board of
18 the authority established under the former provisions of the act
19 of June 27, 1986 (P.L.267, No.70), known as the Pennsylvania
20 Convention Center Authority Act, formerly codified at 53 Pa.C.S.
21 Ch. 59 (relating to Pennsylvania Convention Center Authority),
22 at any time after the effective date of this chapter, power of
23 the authority shall be exercised by a governing board composed
24 of 15 members.
25 (1) Each board of county commissioners or county
26 councils within the Philadelphia Metropolitan Statistical
27 Area, excluding counties which are coterminous with cities of
28 the first class, shall appoint a resident of the county by a
29 majority vote of the members of each board of county
30 commissioners or county council from a list of four nominees
20030H2236B3057 - 30 -
1 each prepared by each county's respective visitors bureau,
2 specifically the Valley Forge Convention and Visitors Bureau,
3 the Bucks County Conference and Visitors Bureau, the Chester
4 County Convention and Visitors Bureau and the Brandywine
5 Conference and Visitors Bureau. The term of office of members
6 appointed by each board of county commissioners or county
7 councils shall run concurrently with the term of office of
8 the appointing authority.
9 (2) The President pro tempore of the Senate, the
10 Minority Leader of the Senate, the Speaker of the House of
11 Representatives and the Minority Leader of the House of
12 Representatives shall each appoint one member. The term of
13 office of these members shall run concurrently with the term
14 of office of the appointing authority.
15 (3) The chief executive officer of the city in which a
16 convention center is located shall appoint one member who is
17 a resident of the city in which a convention center is
18 located. The term of office of the member shall run
19 concurrently with the term of office of the appointing
20 authority.
21 (4) The chief executive officer of the city in which a
22 convention center is located shall appoint one member from a
23 list of four nominees prepared by each of the following
24 organizations: the Philadelphia Convention and Visitors
25 Bureau, the Multicultural Affairs Congress, the Greater
26 Philadelphia Tourism and Marketing Corporation, the Greater
27 Philadelphia Hotel Association and the Independence Visitors
28 Center Corporation. Each of the four nominees for each list
29 must be a resident of the city in which a convention center
30 is located and must have significant experience in the
20030H2236B3057 - 31 -
1 hospitality industry. The term of office of the member shall
2 run concurrently with the term of office of the appointing
3 authority.
4 (5) The council of the city in which a convention center
5 is located shall appoint two members as provided for in this
6 paragraph. One member shall be appointed for the council by
7 the president of the council, and one shall be appointed for
8 the council by the minority leader of the council. The terms
9 of office of the members shall run concurrently with the term
10 of office of the appointing authority.
11 (6) The Governor shall appoint one member who is a
12 resident of the city in which the convention center is
13 located and one member who is a resident of the Philadelphia
14 Metropolitan Statistical Area and both appointments must be
15 made from lists of four nominees prepared by each of the
16 following organizations: the Philadelphia Convention and
17 Visitors Bureau, the Multicultural Affairs Congress, the
18 Greater Philadelphia Tourism and Marketing Corporation, the
19 Greater Philadelphia Hotel Association and the Independence
20 Visitors Center Corporation. Each nominee must be a resident
21 of the Philadelphia Metropolitan Statistical Area and must
22 have significant experience in the hospitality industry, and
23 no fewer than two nominees on each list must be residents of
24 the city in which the convention center is located. The term
25 of office of the members shall run concurrently with the term
26 of office of the appointing authority.
27 (7) The board members shall, by a vote of at least eight
28 members or a majority, whichever is larger, appoint an
29 additional member who shall serve as a chairman of the board.
30 The chairman shall serve for a term coincident with the term
20030H2236B3057 - 32 -
1 of the member appointed pursuant to paragraph (3). In the
2 event the members of the board cannot agree on a chairman
3 within 60 days of the office of chairman becoming vacant, the
4 Governor shall appoint a member to serve as chairman subject
5 to the advice and consent of 26 members of the Senate. The
6 member appointed by either the members or the Governor shall
7 serve as chairman of the board of the authority until his
8 successor is duly appointed. The chairman may be removed and
9 a new chairman selected by a vote of eight members of the
10 board or a majority, whichever is larger.
11 (8) The Secretary of the Budget shall serve as a
12 nonvoting ex officio member of the board. If the chief
13 financial officer of the city in which the convention center
14 is located is not an appointed member of the board, he shall
15 serve as a nonvoting ex officio member of the board.
16 (b) Certification and oath of office.--The appointing powers
17 shall certify their respective appointments to the Secretary of
18 the Commonwealth. Within 30 days after certification of his
19 appointment and before entering upon the duties of his office,
20 each member of the board shall take and subscribe the
21 constitutional oath of office and file it in the office of the
22 Secretary of the Commonwealth.
23 (c) Terms and vacancies.--Except as otherwise provided,
24 members shall serve a term from the date of their appointment
25 and until their successors have been appointed and qualified. If
26 a vacancy shall occur by means of the death, disqualification,
27 abandonment, resignation or removal of a member or the chairman,
28 subject to the provisions of subsection (a), the appointing
29 authority shall appoint a successor to fill his unexpired term.
30 (d) Compensation.--Subject to an aggregate per annum
20030H2236B3057 - 33 -
1 limitation and any other rules and regulations as the board
2 shall determine, a member shall receive $125 per diem when
3 engaged in the exercise of duties for the authority and shall
4 also be entitled to necessary expenses, including travel
5 expenses, incurred in the discharge of duties. In addition to
6 any other compensation provided under this subsection, the
7 chairman of the board of the authority shall be entitled to
8 receive such additional compensation as the board shall
9 determine. No other member of the board shall be entitled to any
10 additional compensation for extra service provided to the
11 authority. The per diem amount may be increased by a vote of
12 eight members of the board or a majority, whichever is larger,
13 but any increase shall not apply during the term of office of
14 board members voting or eligible to vote on the per diem
15 increase.
16 (e) Organization.--The members of the board shall select a
17 vice chairman and other officers as the board may determine from
18 the members of the board. Except as otherwise provided in this
19 chapter, all actions of the board shall be taken by a vote of
20 eight members of the board or a majority, whichever is larger.
21 The board shall have full authority to manage the properties and
22 business of the authority and to prescribe, amend and repeal
23 bylaws, rules and regulations governing the manner in which the
24 business of the authority may be conducted and the powers
25 granted to it may be exercised and embodied. Notwithstanding any
26 other law, court decision, precedent or practice to the
27 contrary, no actions by or on behalf of the board shall be taken
28 by any officer of the board except upon the approval of a
29 majority of the board. The chairman, vice chairman or any other
30 officer, committee or employee of the board may take actions by
20030H2236B3057 - 34 -
1 or on behalf of the board as authorized on at least an annual
2 basis by a vote of eight members of the board or a majority,
3 whichever is larger, and subject to the supervision and control
4 of the board.
5 (f) Nonliability of members.--Members of the board shall not
6 be liable personally on the bonds or other obligations of the
7 authority. The rights of creditors shall be solely against the
8 authority. The authority, itself or by contract, shall defend
9 board members and shall indemnify and hold harmless board
10 members, whether currently employed by the authority or not,
11 against and from any and all personal liabilities, actions,
12 causes of action and any and all claims made against them for
13 whatever actions they perform within the scope of their duties
14 as board members.
15 (g) Meetings.--Regular meetings of the board shall be held
16 at least once in each calendar month except July or August, the
17 time and place of the meetings to be fixed by the board. A
18 majority of the board shall constitute a quorum for the
19 transaction of business. All action of the board shall be by
20 resolution, and the affirmative vote of a majority of all the
21 members shall be necessary for the adoption of any resolution.
22 (h) Abandonment.--A member of the board shall be deemed to
23 have abandoned his office upon failure to attend any regular or
24 special meeting of the board without excuse approved by
25 resolution of the board for a period of four months or upon
26 removal of his residence from the metropolitan area.
27 (i) Definition.--As used in this section, the term "actions
28 by or on behalf of the board" means any action whatsoever of the
29 board, including the hiring, appointment, removal, transfer,
30 promotion or demotion of any officers and employees, the
20030H2236B3057 - 35 -
1 retention, use or remuneration of any advisors, counsel,
2 auditors, architects, engineers or consultants, the initiation
3 of any legal action, the making of any contracts, leases,
4 agreements, bonds, notes or covenants, the approval of
5 requisitions, purchase orders, investments and reinvestments and
6 the adoption, amendment, revision or rescission of any rules and
7 regulations, orders or other directives.
8 (j) Transition provision.--
9 (1) All members of the board appointed under the former
10 provisions of section 11 of the Pennsylvania Convention
11 Center Authority Act who have not resigned or been replaced
12 as of the effective date of this act shall continue to serve
13 as members of the board of the authority created and
14 continued pursuant to this chapter until their respective
15 terms of office would have expired as provided under the
16 former provisions of the Pennsylvania Convention Center
17 Authority Act and shall exercise the powers, functions and
18 duties of the board of the authority created under this
19 chapter.
20 (2) The appointment of all members of the board
21 appointed pursuant to the former provisions of the
22 Pennsylvania Convention Center Authority Act or the former
23 provisions of 53 Pa.C.S. Ch. 59 are hereby ratified and
24 confirmed. Those board members shall be considered to have
25 been appointed under this act, they shall serve until the end
26 of the terms of office prescribed by the statute pursuant to
27 which they were appointed and their appointments shall be
28 considered valid for all purposes.
29 (3) To the extent that a member of the board continues
30 to serve pursuant to paragraph (2), the appointing authority
20030H2236B3057 - 36 -
1 who originally made the appointment pursuant to the former
2 provisions of 53 Pa.C.S. Ch. 59 shall not have the power to
3 appoint any member to the board pursuant to subsection (a)
4 until the continuing board member completes his term of
5 office.
6 § 6013. Sovereign immunity.
7 It is declared to be the intent of the General Assembly that
8 the authority created pursuant to this chapter and its members,
9 officers, officials and employees shall enjoy sovereign and
10 official immunity as provided in 1 Pa.C.S. § 2310 (relating to
11 sovereign immunity reaffirmed; specific waiver) and shall remain
12 immune from suit except as provided by and subject to the
13 provisions of 42 Pa.C.S. §§ 8501 (relating to definitions)
14 through 8528 (relating to limitations on damages).
15 Notwithstanding the provisions of 42 Pa.C.S. § 8525 (relating to
16 legal assistance), the authority through its counsel shall
17 defend actions brought against the authority and its officers
18 and employees when acting within the scope of their official
19 duties.
20 § 6014. Moneys of authority.
21 (a) Paid to treasurer.--Unless otherwise provided by law,
22 all money of the authority, from whatever source derived, shall
23 be paid to the treasurer of the authority.
24 (b) Funds to be invested.--The board shall invest authority
25 funds consistent with sound business practice.
26 (c) Investment program.--The board shall provide for an
27 investment program subject to restrictions contained in this
28 chapter and in any other applicable statute and any rules and
29 regulations adopted by the board.
30 (d) Authorized types of investments.--Authorized types of
20030H2236B3057 - 37 -
1 investments for authority funds shall be:
2 (1) Direct obligations of or obligations guaranteed by
3 the United States of America.
4 (2) Any bond, debenture, note, participation certificate
5 or other similar obligation issued by any one or combination
6 of the following agencies:
7 (i) Government National Mortgage Corporation.
8 (ii) Federal Land Banks.
9 (iii) Federal Home Loan Banks.
10 (iv) Federal Intermediate Credit Banks.
11 (v) Banks for Cooperatives.
12 (vi) The Tennessee Valley Authority.
13 (vii) The United States Postal Service.
14 (viii) The Farmers Home Administration.
15 (ix) The Student Loan Marketing Association.
16 (x) The Export-Import Bank of the United States.
17 (3) Any bond, debenture, note, participation certificate
18 or other similar obligation issued by the Federal National
19 Mortgage Corporation to the extent the obligations are
20 guaranteed by the Government National Mortgage Corporation or
21 issued by any other Federal agency and backed by the full
22 faith and credit of the United States of America.
23 (4) Deposits in interest-bearing time or demand
24 deposits, or certificates of deposit, fully insured by the
25 Federal Deposit Insurance Corporation or its successor or the
26 Federal Savings and Loan Insurance Corporation or its
27 successor or fully secured by any of the obligations
28 described above to the extent not so insured.
29 (5) Repurchase agreements relating to or investment
30 agreements secured by or providing for the acquisition and
20030H2236B3057 - 38 -
1 resale of obligations described in paragraphs (1) through (4)
2 or obligations of Federal Home Loan Mortgage Corporation or
3 Federal National Mortgage Association, with:
4 (i) banks or trust companies, including any banking
5 entity or depository;
6 (ii) brokers or broker-dealers registered under the
7 Securities Exchange Act of 1934 (48 Stat. 881, 15 U.S.C.
8 §§ 78a-78jj) acceptable to the authority; or
9 (iii) insurance companies rated A+ or better by
10 Best's having a net capital and surplus of at least
11 $25,000,000 or certificates of deposit with banks or
12 trust companies fully secured as to principal and accrued
13 interest by obligations described in paragraphs (1)
14 through (4) deposited with or subject to the control of
15 the authority.
16 (6) Money market deposit accounts of banks or trust
17 companies having a net capital and surplus of at least
18 $25,000,000, including any banking entity or depository.
19 (7) The description of authorized investments as set
20 forth in paragraphs (5) and (6) shall only be met if the
21 agreements referenced in paragraphs (5) and (6) provide for
22 the repayment of the principal amount invested at an amount
23 not less than that invested. Whenever security is required as
24 set forth in paragraphs (4) through (6), security shall be
25 deposited with the treasurer of the authority or be held by a
26 trustee or agent satisfactory to the authority. Money of the
27 authority shall be paid out on the warrant or other order of
28 the chairman of the authority or of any other person the
29 authority authorizes to execute the warrants or orders.
30 (e) Annual report to be filed; annual audits.--Within 90
20030H2236B3057 - 39 -
1 days following the end of the fiscal year, an authority shall
2 file an annual report with the Department of Community and
3 Economic Development, the chairman and minority chairman of the
4 Appropriations Committee of the Senate and the chairman and
5 minority chairman of the Appropriations Committee of the House
6 of Representatives and with the city which shall make provisions
7 for the accounting of revenue and expenses. The authority shall
8 have its books, accounts and records audited annually in
9 accordance with generally accepted auditing standards by an
10 independent auditor who shall be a certified public accountant
11 or competent public accountant, and a copy of the audit report
12 shall be attached to and be made a part of the annual report. A
13 concise financial statement shall be published annually in the
14 Pennsylvania Bulletin. If the authority fails to make an audit,
15 then the controller, auditors or accountants designated by the
16 city are authorized to examine, at the expense of the authority,
17 the accounts and books of the authority, including its receipts,
18 disbursements, contracts, leases, sinking funds, investments and
19 any other matters relating to its finances, operations and
20 affairs.
21 (f) Power of inspection.--The Attorney General, Auditor
22 General, Secretary of the Budget and the chairman and minority
23 chairman of the Appropriations Committee of the Senate and the
24 chairman and minority chairman of the Appropriations Committee
25 of the House of Representatives shall have the right to examine
26 the books, accounts and records of the authority.
27 § 6015. Transfer of existing facilities or funds; making of
28 annual grants and lease payments to authority;
29 Commonwealth bonds.
30 (a) Authority granted.--
20030H2236B3057 - 40 -
1 (1) Any State public body, political subdivision or the
2 city may sell, lease or sublease from or to, lend, grant,
3 convey or otherwise transfer or pay over directly to the
4 authority, with or without consideration, any of the
5 following:
6 (i) A convention center or parts of a convention
7 center.
8 (ii) Any interest in property, real, personal or
9 mixed, tangible or intangible.
10 (iii) Any funds available, needed or obligated for
11 development, acquisition, design, maintenance,
12 management, operation, financing, leasing or subleasing
13 construction, expansion or substantial renovation or
14 improvement purposes. This subparagraph includes the
15 proceeds of bonds previously or hereafter issued for
16 construction or improvement of a convention center or
17 parts of a convention center.
18 (iv) Notwithstanding any other provision of law, any
19 grant shall be made directly to the authority.
20 (2) Any property, funds or convention center or parts of
21 a convention center received by the authority may be used for
22 any lawful purpose of the authority.
23 (3) Nothing in this chapter nor in any other law shall
24 be deemed to make any authority or any persons, State-
25 supported or State-aided institutions under any laws of this
26 Commonwealth.
27 (b) Grants authorized.--
28 (1) The city may do any of the following:
29 (i) Make grants from current revenue to the
30 authority.
20030H2236B3057 - 41 -
1 (ii) Assist in defraying the cost of management,
2 operation, maintenance, financing and debt service of a
3 convention center or parts of a convention center.
4 (iii) Enter into long-term agreements providing for
5 the payment of grants made or costs defrayed under
6 subparagraph (i) or (ii).
7 (iv) Enter into long-term leases or subleases as
8 lessee or sublessee of all or part of a convention
9 center.
10 (2) Obligations of the city to make grants, lease or
11 sublease payments to an authority shall not, even if based on
12 debt obligations of an authority, constitute debts of the
13 city within the meaning of any constitutional or statutory
14 provision and shall be payable only to the extent that
15 current revenues of the city are available.
16 (3) The city may issue general obligation bonds for the
17 purpose of obtaining funds for local contributions pertaining
18 to convention centers or parts of convention centers.
19 § 6016. Award of contracts.
20 (a) Lowest responsible bidder.--All construction,
21 reconstruction, repairs or work of any nature made by the
22 authority where the entire cost, value or amount of
23 construction, reconstruction, repairs or work, including labor
24 and materials, shall exceed $25,000, except construction,
25 reconstruction, repairs or work done by employees of the
26 authority or by labor supplied under agreement with any Federal
27 agency, State public body, political subdivision or city with
28 supplies and materials purchased as provided in this chapter,
29 shall be done only under contract or contracts to be entered
30 into by the authority with the lowest responsible bidder upon
20030H2236B3057 - 42 -
1 proper terms, after due public notice has been given asking for
2 competitive bids as provided in this chapter, but the authority
3 shall have the right to reject any or all bids or select a
4 single item from any bid. No contract shall be entered into for
5 construction or improvement or repair of any project or portion
6 of a project unless the contractor shall provide sufficient
7 surety or sureties approved by the authority, and in an amount
8 fixed by the authority, for the performance of the contract. All
9 contracts shall provide, among other things, that the person or
10 corporation entering into the contract with the authority will
11 pay for all materials furnished and services rendered for the
12 performance of the contract and that any person or corporation
13 furnishing materials or rendering services may maintain an
14 action to recover for the same against the obligor in the
15 undertaking as though the person or corporation was named in the
16 undertaking, provided the action is brought within one year
17 after the time the cause of action accrued. Nothing in this
18 section shall be construed to limit the power of the authority
19 to construct, repair or improve any project or portion of a
20 project or any addition, betterment or extension to a project,
21 directly by the officers and employees of the authority. Whether
22 the costs of the project are being paid for in whole or in part
23 with funds provided under section 6015 (relating to transfer of
24 existing facilities or funds; making of annual grants and lease
25 payments to authority; Commonwealth bonds), the authority may
26 award the construction, expansion or substantial renovation of a
27 convention center as a single bid project without regard to the
28 provisions of the act of May 1, 1913 (P.L.155, No.104), entitled
29 "An act regulating the letting of certain contracts for the
30 erection, construction, and alteration of public buildings," and
20030H2236B3057 - 43 -
1 shall not be subject to the former act of November 26, 1978
2 (P.L.1309, No.317), entitled "An act regulating the awarding and
3 execution of certain public contracts; providing for contract
4 provisions relating to the retention, interest, and payment of
5 funds payable under the contracts; and repealing inconsistent
6 acts," or 62 Pa.C.S. (relating to procurement). Nothing in this
7 section or any other law of this Commonwealth shall require the
8 authority to competitively bid architectural design,
9 engineering, construction management or other professional
10 services required by the authority.
11 (b) Supplies and materials.--All supplies and materials
12 costing $25,000 or more to be acquired directly by the authority
13 shall be purchased only after due advertisement as provided in
14 this chapter. The authority shall accept the lowest bid or bids
15 from a responsible bidder, kind, quality and material being
16 equal, but the authority shall have the right to reject any or
17 all bids or select a single item from any bid. The provisions as
18 to bidding shall not apply to the purchase of unique supplies
19 and materials or supplies and materials which cannot be obtained
20 in the open market.
21 (c) Management prerogatives.--Nothing in this section or in
22 any other law of the Commonwealth shall preclude the board, with
23 the approval of eight members or a majority, whichever is
24 larger, from negotiating contracts for management, operation,
25 concession services, licensing or leasing of a convention
26 center, or any part of a convention center. The authority shall
27 not award any contract to any manager, operator, concessionaire,
28 licensee, lessee or lessor that exceeds three years in duration
29 unless eight members of the board or a majority, whichever is
30 larger, approve the awarding of a contract for a greater period
20030H2236B3057 - 44 -
1 of time.
2 (d) Application of city ordinances.--The authority, its
3 contractors, subcontractors, assignees, lessees, agents, vendors
4 and suppliers shall not be subject to any city laws, ordinances,
5 rules or regulations relating to any limits or preferences with
6 regard to employment, contracting or procurement in the
7 construction and operation of the convention center.
8 (e) Steel products.--The authority shall be subject to the
9 act of March 3, 1978 (P.L.6, No.3), known as the Steel Products
10 Procurement Act, and 62 Pa.C.S. Ch. 37 Subch. B (relating to
11 motor vehicles).
12 (f) Waiver of notice.--Public notice under this section may
13 be waived if the authority determines an emergency exists and
14 the supplies and materials must be purchased immediately by the
15 authority.
16 (g) Definitions.--As used in this section, the term
17 "advertisement" or "public notice" means a notice published at
18 least ten days before the award of any contract in a newspaper
19 of general circulation published in the city.
20 § 6017. Interests of public officers, public employees and
21 party officers.
22 (a) Restrictions upon authority management-level
23 employees.--
24 (1) No party officer, public officer, public official,
25 public employee or a member of the immediate family of a
26 party officer, public officer or public official shall be
27 employed as a management-level authority employee.
28 Notwithstanding the provisions of this paragraph, any member
29 of the Governor's cabinet and the chief financial officer of
30 the city in which the convention center is located and any
20030H2236B3057 - 45 -
1 other member of the mayor's cabinet may serve on the
2 governing board of the authority as provided by section 6011
3 (relating to governing board).
4 (2) No person convicted of an infamous crime shall be a
5 member of the board or employed as a management-level
6 employee by the authority.
7 (b) Restricted activities; statement of financial interests;
8 public meetings and records.--The provisions of 65 Pa.C.S. Ch.
9 11 (relating to ethics standards and financial disclosure) and
10 section 10 of the act of October 4, 1978 (P.L.883, No.170),
11 referred to as the Public Official and Employee Ethics Law, and
12 the act of July 19, 1957 (P.L.1017, No.451), known as the State
13 Adverse Interest Act, are specifically applicable to board
14 members, officers and employees of the authority. For the
15 purposes of application of those acts, employees of the
16 authority shall be regarded as public employees of the
17 Commonwealth, and officers or board members of the authority
18 shall be regarded as public officials of the Commonwealth,
19 whether or not they receive compensation. The authority shall
20 also be subject to 65 Pa.C.S. Ch. 7 (relating to open meetings)
21 and the act of June 21, 1957 (P.L.390, No.212), referred to as
22 the Right-to-Know Law.
23 (c) Conflicts of interest.--Notwithstanding the provisions
24 of subsection (b), the following prohibitions shall apply to the
25 authority created by this chapter:
26 (1) No management-level employee or other employee of
27 the authority shall use his position with the authority, or
28 any confidential information received through his position
29 with the authority, to obtain financial gain other than
30 compensation provided by law for himself, a member of his
20030H2236B3057 - 46 -
1 immediate family or a business with which he is associated.
2 (2) No person shall offer or give to a board member, a
3 management-level employee or other employee of the authority
4 or a member of his immediate family or a business with which
5 he is associated, and no board member, management-level
6 employee or other employee of the authority shall solicit or
7 accept, anything of value, including a gift, loan, political
8 contribution, reward or promise of future employment, based
9 on any understanding that the vote, official action or
10 judgment of the board member, management-level employee or
11 other employee of the authority would be influenced thereby.
12 (3) No board member, management-level employee or other
13 employee of the authority or a member of his immediate family
14 or any business in which the person or a member of the
15 person's immediate family is a director, officer, owner or
16 holder of stock exceeding 5% of the equity at fair market
17 value of the business shall enter into any contract valued at
18 $500 or more to provide goods or services to the authority
19 unless the contract has been awarded to the lowest
20 responsible bidder through an open and public process,
21 including prior public notice and subsequent public
22 disclosure of all proposals considered and contracts awarded.
23 (4) No former board member, management-level employee or
24 other employee of the authority shall represent a person,
25 with or without compensation, on any matter before the
26 authority with which he has been associated for one year
27 after he leaves the authority.
28 (5) Neither an individual who is a State, city or county
29 public officer or public official or any party officer or
30 member of the immediate family of such individual nor a
20030H2236B3057 - 47 -
1 business with which such individual or member of the
2 individual's immediate family is associated shall have a
3 financial interest in any contract valued at $500 or more to
4 provide goods or services to the authority either during the
5 time the person holds office or for two years after the
6 person terminates office unless the contract is executed
7 pursuant to the provisions of paragraph (3). For purposes of
8 this paragraph, the term "financial interest" does not
9 include employment by, association with or ownership of a
10 business association unless the public officer, public
11 official, party officer or member of the immediate family of
12 the individual owns shares of stock in a corporation in an
13 amount in excess of 5% of the total issue for the stock of
14 the corporation or has an ownership interest in any
15 noncorporate business association in an amount in excess of
16 5% of the total ownership of a noncorporate business
17 association.
18 (6) No board member, management-level employee or other
19 employee of the authority or an advisor or consultant to the
20 State, city or the county having recommended to the authority
21 which he serves either the making of a contract relating to a
22 convention center authority or a course of action of which
23 the making of such a contract is an express or implied part
24 shall, at any time thereafter, have an adverse interest in
25 the contract.
26 (7) No board member, management-level employee or other
27 employee of the authority, the State, the city or the county
28 shall influence or attempt to influence the making of or
29 supervise or in any manner deal with any contract with the
30 authority in which the employee has an adverse interest.
20030H2236B3057 - 48 -
1 (8) No board member, management-level employee or other
2 employee of the authority shall have an adverse interest in
3 any contract with the authority.
4 (9) No person having an adverse interest in a contract
5 with the authority shall become a board member, management-
6 level employee or other employee of the authority until the
7 adverse interest has been wholly divested.
8 (10) No board member, management-level employee or other
9 employee of the authority, the State, the city or the county,
10 except in the performance of his duties as such employee,
11 shall for remuneration, directly or indirectly, represent any
12 other person upon any matter pending before the authority.
13 (d) Enforcement; penalties.--
14 (1) Any person who violates the provisions of this
15 section shall have employment by the authority or membership
16 on the board terminated immediately by the appropriate person
17 having the power to terminate and shall be liable to the
18 authority to reimburse the authority for all compensation
19 received from the authority while employed in violation of
20 subsection (a).
21 (2) Any person who violates the provisions of subsection
22 (c)(1) or (2) is guilty of a felony and shall be fined not
23 more than $10,000 or imprisoned for not more than five years
24 or be both fined and imprisoned.
25 (3) Any person who violates the provisions of subsection
26 (c)(3) through (10) is guilty of a misdemeanor and shall be
27 fined not more than $1,000 or imprisoned for not more than
28 one year or be both fined and imprisoned.
29 (4) Any person who obtains financial gain from violating
30 any provisions of subsection (c), in addition to any other
20030H2236B3057 - 49 -
1 penalty provided by law, shall pay into the accounts of the
2 authority a sum of money equal to three times the financial
3 gain resulting from the violation.
4 (5) Any person who violates the provisions of subsection
5 (c) shall be barred for a period of five years from engaging
6 in any business or contract with the authority, the State,
7 the city and any political subdivision.
8 (6) Any employee of the State, city or any political
9 subdivision or any public officer or public official who
10 violates subsection (c) shall automatically forfeit any
11 office or employment the employee holds.
12 (7) The penalties and sanctions provided by this section
13 shall supersede any similar penalties and sanctions provided
14 by the Public Official and Employee Ethics Law and State
15 Adverse Interest Act.
16 (e) Definitions.--As used in this section, the following
17 words and phrases shall have the meanings given to them in this
18 subsection:
19 "Business." Any corporation, partnership, sole
20 proprietorship, firm, enterprise, franchise, association,
21 organization, self-employed individual, holding company, joint-
22 stock company, receivership, trust or any legal entity organized
23 for profit or as a not-for-profit corporation or organization.
24 "Business with which he is associated." Any business in
25 which the person or a member of the person's immediate family is
26 a director, officer, owner, employee or holder of stock.
27 "County." A county within the Philadelphia Metropolitan
28 Statistical Area as defined in this chapter.
29 "Immediate family." A parent, spouse, child, brother, sister
30 or like relative-in-law.
20030H2236B3057 - 50 -
1 "Infamous crime." Any violation and conviction for an
2 offense which would disqualify an individual from holding public
3 office pursuant to section 6 of Article II of the Constitution
4 of Pennsylvania, or any conviction for a violation of this
5 section, 18 Pa.C.S. § 4113 (relating to misapplication of
6 entrusted property and property of government or financial
7 institutions) or 18 Pa.C.S. Ch. 47 (relating to bribery and
8 corrupt influence), 49 (relating to falsification and
9 intimidation), 51 (relating to obstructing governmental
10 operations) or 53 (relating to abuse of office), or any other
11 violation of the laws of this Commonwealth for which an
12 individual has been convicted within the preceding ten years and
13 which is classified as a felony or a similar violation of the
14 law of any other state or the Federal Government.
15 "Management-level authority employee." The counsel employed
16 by the authority, the executive director of the authority and
17 any authority employee with discretionary powers which may
18 affect the outcome of the authority's decision in relation to a
19 private corporation or business or any employee who by virtue of
20 his job function could influence the outcome of such a decision.
21 "Party officer." The following members or officers of any
22 political party:
23 (1) a member of a national committee;
24 (2) a chairman, vice chairman, secretary, treasurer or
25 counsel of a State committee or member of the executive
26 committee of a State committee;
27 (3) a county chairman, vice chairman, counsel, secretary
28 or treasurer of a county committee; or
29 (4) a city chairman, vice chairman, counsel, secretary
30 or treasurer of a city committee.
20030H2236B3057 - 51 -
1 "Person." A business, individual, corporation, union,
2 association, firm, partnership, committee, club or other
3 organization or group of persons.
4 "Public employee." Any individual employed by the
5 Commonwealth or a political subdivision who is responsible for
6 taking or recommending official action of a nonministerial
7 nature with regard to:
8 (1) contracting or procurement;
9 (2) administering or monitoring grants or subsidies;
10 (3) planning or zoning;
11 (4) inspecting, licensing, regulating or auditing any
12 person; or
13 (5) any other activity where the official action has an
14 economic impact of greater than a de minimis nature on the
15 interest of any person. A public employee shall not include
16 individuals who are employed by the State or any political
17 subdivision in teaching as distinguished from administrative
18 duties.
19 "Public officer." Every person elected to any public office
20 of the Commonwealth or any political subdivision.
21 "Public official." Any elected or appointed official in the
22 executive, legislative or judicial branch of the State or any
23 political subdivision. The term does not include members of
24 advisory boards who have no authority to expend public funds
25 other than reimbursement for personal expense or to otherwise
26 exercise the power of the State or any political subdivision.
27 The term does not include any appointed official who receives no
28 compensation other than reimbursement for actual expenses.
29 § 6018. Acquisition of lands.
30 (a) Power.--If the authority deems it necessary for a
20030H2236B3057 - 52 -
1 purpose under this chapter, the authority has the power to
2 acquire any of the following with respect to land within the
3 city by purchase or eminent domain proceedings:
4 (1) A fee.
5 (2) Any right, title, interest or easement.
6 (b) Procedure.--The right of eminent domain shall be
7 exercised by the authority in the manner provided by the act of
8 June 22, 1964 (Sp.Sess., P.L.84, No.6), known as the Eminent
9 Domain Code.
10 § 6019. Use and operation of convention center.
11 The use and operation of the convention center and any parts
12 of a convention center and the operation of the business of the
13 authority shall be subject to the rules and regulations adopted
14 by the authority. The authority shall not be authorized to do
15 anything which will impair the security of the obligees of the
16 authority or violate any agreements with them or for their
17 benefit or violate any contracts, leases or other agreements
18 awarded, made or entered into by the authority.
19 § 6019.1. Convention center performance audits; annual
20 performance reports.
21 (a) Convention center performance audits.--The board shall
22 cause periodic performance audits of the convention center to be
23 conducted and completed at least 90 days after the end of every
24 third fiscal year beginning with the fiscal year ending in 2004
25 and six months prior to the termination of any agreement with
26 any labor organization of which the authority is signatory if
27 the labor agreement terminates more than 18 months after the
28 submission of the previous performance audit, and at such
29 additional times as the board shall determine.
30 (1) The performance audit shall be performed by an
20030H2236B3057 - 53 -
1 independent auditing or consulting firm with recognized
2 experience in the convention industry and shall examine and
3 report on the following:
4 (i) customer satisfaction at the convention center;
5 (ii) labor costs at the convention center, which
6 shall include a comparison of labor costs at the
7 convention center with labor costs at convention centers
8 in this Commonwealth and in other states;
9 (iii) rebooking rates of events at the convention
10 center categorized by size and hotel room nights, which
11 shall include a comparison of rebooking rates of previous
12 years at the convention center and rebooking rates of
13 events at convention centers in this Commonwealth and in
14 other states;
15 (iv) booking rates of events at the convention
16 center categorized by size and hotel room nights, which
17 shall include a comparison of booking rates of previous
18 years at the convention center and booking rates of
19 events at convention centers in this Commonwealth and in
20 other states;
21 (v) hotel booking rates in the Philadelphia
22 Metropolitan Statistical Area related to the convention
23 center industry, which shall include a comparison of
24 hotel booking rates in the Philadelphia Metropolitan
25 Statistical Area during previous years;
26 (vi) compliance with the code of conduct and other
27 work rules at the convention center and enforcement of
28 the code of conduct and other work rules at the
29 convention center by the authority and its designees; and
30 (vii) any other items proposed by the board.
20030H2236B3057 - 54 -
1 (2) No later than 30 days after the completion of the
2 performance audit, the board shall submit the results of the
3 performance audit to the Governor, the Secretary of Community
4 and Economic Development, the President pro tempore of the
5 Senate, the Majority Leader of the Senate, the Minority
6 Leader of the Senate, the Speaker of the House of
7 Representatives, the Majority Leader of the House of
8 Representatives, the Minority Leader of the House of
9 Representatives, the chairperson and minority chairperson of
10 the Appropriations Committee of the Senate, the chairperson
11 and minority chairperson of the Appropriations Committee of
12 the House of Representatives, the chief executive officer of
13 the city in which the convention center is located and the
14 council president of the city in which the convention center
15 is located.
16 (b) Annual performance reports.--The board shall complete a
17 performance report no later than 90 days after the end of each
18 fiscal year beginning with the first fiscal year ending after
19 the effective date of this section, except in years in which the
20 board completes and submits a performance audit as provided for
21 in subsection (a).
22 (1) The performance report shall include a summary of
23 the following:
24 (i) Customer satisfaction at the convention center.
25 (ii) Violations of the code of conduct or other work
26 rules at the convention center, which shall include the
27 identity of any organization whose members or
28 representatives violate the code of conduct or other work
29 rules, a description of each violation and the number of
30 such violations.
20030H2236B3057 - 55 -
1 (iii) Actions taken by the authority or its designee
2 to enforce the code of conduct and other work rules at
3 the convention center.
4 (iv) Complaints of customers and visitors at the
5 convention center, if any, and the response of the
6 authority or its designee to such complaints.
7 (v) A variance of more than 5% in any line item of
8 the authority's approved operating budget for the fiscal
9 year covered by the performance report and the reason for
10 such variance.
11 (vi) Any deficit in the authority's operating budget
12 for the fiscal year covered by the performance report and
13 the reason for such deficit.
14 (vii) Any deficit, estimated deficit or projected
15 year-end deficit in the adopted operating budget for the
16 fiscal year immediately following the fiscal year covered
17 in the performance report and the reason for such
18 deficit.
19 (viii) Booking and rebooking rates of events at the
20 convention center categorized by size and hotel room
21 nights.
22 (ix) Hotel booking rates in the Philadelphia
23 Metropolitan Statistical Area related to the convention
24 center industry.
25 (x) Any other items as the authority shall
26 determine.
27 (2) No later than 120 days after the end of each fiscal
28 year, the board shall submit the performance report to the
29 Governor, the Secretary of Community and Economic
30 Development, the President pro tempore of the Senate, the
20030H2236B3057 - 56 -
1 Majority Leader of the Senate, the Minority Leader of the
2 Senate, the Speaker of the House of Representatives, the
3 Majority Leader of the House of Representatives, the Minority
4 Leader of the House of Representatives, the chairperson and
5 minority chairperson of the Appropriations Committee of the
6 Senate, the chairperson and minority chairperson of the
7 Appropriations Committee of the House of Representatives, the
8 chief executive officer of the city in which the convention
9 center is located and the council president of the city in
10 which the convention center is located.
11 § 6020. Limitation of powers.
12 (a) Commonwealth pledge.--The Commonwealth pledges to and
13 agrees with any person, the city, political subdivision or
14 Federal agency subscribing to or acquiring the bonds to be
15 issued by the authority for the construction or improvement of a
16 convention center or parts of a convention center that the
17 Commonwealth will not limit or alter the rights and powers
18 vested in the authority by this chapter or otherwise created by
19 this chapter in any manner inconsistent with the obligations to
20 the bondholders until all bonds, together with the interest on
21 the bonds, are fully paid and discharged. The Commonwealth
22 further pledges to and agrees with any Federal agency that, in
23 the event any Federal agency shall construct or contribute any
24 funds for the construction or improvement of a convention center
25 or parts of a convention center, the Commonwealth will not alter
26 or limit the rights and powers of the authority in any manner
27 which would be inconsistent with the due performance of any
28 agreements between the authority and the Federal agency.
29 (b) Additional Commonwealth pledge.--The Commonwealth
30 pledges to and agrees with any person that, as owner of a
20030H2236B3057 - 57 -
1 convention center, leases or subleases a convention center or
2 parts of a convention center to or from an authority created or
3 continued pursuant to this chapter, that the Commonwealth will
4 not limit or alter the rights and powers vested by this chapter
5 in the authority or otherwise created by this chapter in any
6 manner which impairs the obligations of the authority until all
7 obligations of the authority under the lease or sublease are
8 fully met and discharged.
9 § 6021. Exemption from taxation.
10 The effectuation of the authorized purposes of an authority
11 created under this chapter shall be in all respects for the
12 benefit of the people of this Commonwealth, for the increase of
13 their commerce and prosperity and for the improvement of their
14 health and living conditions. The authority will, as a public
15 instrumentality of the Commonwealth, be performing essential
16 governmental functions. In effectuating such purposes, the
17 authority shall not be required to pay any taxes or assessments
18 upon a convention center or part of a convention center or upon
19 property acquired or used or permitted to be used by an
20 authority for such purposes. Bonds issued by an authority and
21 the transfer of and income from bonds, including profit made on
22 the sale of bonds, shall be free from State and local taxation
23 within this Commonwealth. This exemption shall not extend to
24 gift, estate, succession or inheritance taxes or any other taxes
25 not levied directly on the bonds, the transfer of bonds, the
26 income from bonds or the realization of profits on the sale of
27 bonds.
28 § 6022. Lease by authority.
29 A convention center or part of a convention center
30 established or continued under this chapter may be leased or
20030H2236B3057 - 58 -
1 subleased by the authority to and from the city. The city is
2 empowered to enter into leases, subleases or both. A lease or
3 sublease may be made for a specified or unlimited time and on
4 any terms and conditions approved by the city and agreed to by
5 the authority in conformity with its contracts with the holders
6 of any bonds.
7 § 6023. Cooperation.
8 (a) State public bodies and political subdivisions may
9 cooperate.--For the purpose of aiding and cooperating with the
10 authority and in the planning, acquisition, clearance,
11 relocation, development, design, construction, rehabilitation,
12 leasing, subleasing, alteration, expansion, financing,
13 improvement, management or operation of a convention center or
14 parts of a convention center, any State public body, political
15 subdivision or the city may, upon terms with or without
16 consideration, as it determines, do any of the following:
17 (1) Dedicate, sell, convey, lease or otherwise transfer
18 any of its property or any interest in its property, real,
19 personal or mixed, tangible or intangible, to the authority.
20 (2) Cause parking, recreational or community facilities
21 or any other works which it is otherwise empowered to
22 undertake to be furnished in or adjacent to any area selected
23 for a convention center or parts of a convention center.
24 (3) Furnish, dedicate, close, pave, install, grade,
25 regrade, plan or replan streets, roads, roadways, alleys,
26 sidewalks or other places which it is otherwise empowered so
27 to do.
28 (4) Enter into agreements extending over any period with
29 the authority or with the Federal Government.
30 (5) Do all things necessary or convenient to aid and
20030H2236B3057 - 59 -
1 cooperate in the development, acquisition, design,
2 construction, improvement, maintenance, management,
3 operation, furnishing, fixturing, equipping, repairing,
4 financing, owning, leasing and subleasing of a convention
5 center or parts of convention center.
6 (6) In connection with any public improvements made by
7 any State public body, political subdivision or the city, in
8 exercising the powers granted in this subsection, to incur
9 the entire expense of the improvement.
10 (a.1) Documents.--The Secretary of General Services is
11 authorized, with the approval of the Governor and Attorney
12 General, to execute and deliver on behalf of the Commonwealth
13 conveyances, deeds and leases authorized under this chapter or
14 under the former provisions of the act of June 27, 1986
15 (P.L.267, No.70), known as the Pennsylvania Convention Center
16 Authority Act, formerly codified at 53 Pa.C.S. Ch. 59 (relating
17 to Pennsylvania Convention Center Authority).
18 (b) City may contract with authority.--In connection with a
19 convention center or parts of a convention center, the city may
20 contract with the authority or the Federal Government with
21 respect to any sums which the authority or the Federal
22 Government may agree to pay during any year or period of years
23 to the city for the improvements, services and facilities to be
24 provided by it for the benefit of the authority, convention
25 center or parts of a convention center or the persons occupying
26 such area. The absence of a contract for such payments shall not
27 relieve the city from the duty to furnish for the benefit of the
28 authority, convention center or parts of a convention center or
29 the persons occupying the area customary improvements and
30 services and facilities as the city usually furnishes without a
20030H2236B3057 - 60 -
1 service fee.
2 (c) State and city may designate authority as its agent.--
3 The State or the city may, by written agreement, designate the
4 authority as its agent within the authority's field of operation
5 to perform any specified activity or to administer any specified
6 program which the State or the city is authorized by law to do.
7 Any such activities or programs must be in furtherance of the
8 public purposes specified in this chapter. Such activities
9 include development, acquisition, design, construction,
10 improvement, maintenance, leasing, management or operation of a
11 convention center or parts of a convention center.
12 (d) Powers in addition to other powers.--The powers
13 conferred by this section shall be in addition and supplemental
14 to the powers conferred by any other law.
15 § 6024. Hotel room rental tax; continuation of existing tax.
16 (a) Imposition of tax.--The council of the city in which the
17 convention center is located is authorized to impose or continue
18 to impose an excise tax on the consideration received by each
19 operator of a hotel within the city from each transaction of
20 renting a room or rooms to accommodate transients. The tax shall
21 be collected by the operator from the patron of the room and
22 paid over to the city pursuant to subsection (e) and shall be
23 known as the hotel room rental tax.
24 (b) Rate of tax.--
25 (1) The rate of tax imposed under this section by the
26 council of the city in which the convention center is located
27 shall not exceed 6%.
28 (2) The total rate of tax imposed pursuant to this
29 section and section 202 of the act of March 4, 1971 (P.L.6,
30 No.2), known as the Tax Reform Code of 1971, shall not exceed
20030H2236B3057 - 61 -
1 12%. In the event the rate of tax imposed pursuant to section
2 202 of the Tax Reform Code of 1971 exceeds 6% and the rate of
3 tax imposed pursuant to this section has reached 6%, the rate
4 of tax imposed pursuant to this section shall be reduced in
5 order that the aggregate tax rate not exceed 12%.
6 (c) Distribution of tax revenue.--There shall be annually
7 deposited in the special fund, established pursuant to
8 subsection (d), for the use of tourist promotion agencies for
9 tourist promotion agency activities:
10 (1) Thirty-three and one-third percent of all revenue
11 received pursuant to this section for the fiscal year of the
12 city commencing on or after July 1, 1999, and each fiscal
13 year thereafter ending prior to July 1, 2010.
14 (2) Twenty-nine and one hundred and sixty-six one
15 thousandths percent of all revenue received pursuant to this
16 section for the fiscal year of the city commencing on or
17 after July 1, 2010, and each fiscal year thereafter ending
18 prior to July 1, 2015.
19 (3) Twenty-five percent of all revenue received pursuant
20 to this section for the fiscal year of the city commencing
21 July 1, 2015, and thereafter. The balance of revenue to be
22 received from taxes imposed pursuant to this section shall be
23 deposited annually in the special fund, established pursuant
24 to subsection (d), for the use of the authority for
25 convention center purposes.
26 (d) Deposit.--The tax collector of each city electing to
27 impose the tax authorized under this section or the tax
28 collector of each city imposing the tax on the effective date of
29 this chapter as authorized under the former provisions of the
30 act of June 27, 1986 (P.L.267, No.70), known as the Pennsylvania
20030H2236B3057 - 62 -
1 Convention Center Authority Act, formerly codified at 53 Pa.C.S.
2 Ch. 59 (relating to Pennsylvania Convention Center Authority),
3 is directed to collect the tax and to deposit the revenue
4 received from the tax in special funds established for purposes
5 set forth in this section. Interest on money deposited in the
6 funds shall accrue proportionately to the respective funds as
7 provided in this section. The tax collector is authorized to
8 establish, maintain and amend already existing rules and
9 regulations concerning the collection of the tax.
10 (e) Expenditures.--Expenditures from the funds established
11 pursuant to subsection (d) for the tourist promotion agency
12 shall be used by the designated tourist promotion agency for:
13 (1) advertising and publicizing tourist attractions in
14 the area served by the agency;
15 (2) promoting and attracting conventions, exhibitions
16 and other functions to utilize facilities in the area served
17 by the agency;
18 (3) promoting and otherwise encouraging the use of the
19 facilities in the area served by the agency by the public as
20 a whole; and
21 (4) costs associated with the development and operation
22 of the convention center.
23 (f) Expenditures for convention center purposes.--
24 Expenditures from the fund established pursuant to subsection
25 (d) for the authority shall be used by the authority for the
26 following uses:
27 (1) Projected annual debt service or lease payments of
28 the convention center authority.
29 (2) Costs associated with financing, constructing,
30 improving, maintaining, furnishing, fixturing and equipping
20030H2236B3057 - 63 -
1 the convention center.
2 (3) Costs associated with the development of the
3 convention center, including design, engineering and
4 feasibility costs.
5 (4) Costs associated with the operation and management
6 of the convention center.
7 (5) Costs associated with promoting, marketing and
8 otherwise encouraging use of the convention center.
9 (6) General purposes of the convention center.
10 (g) Pledge to bondholders.--If and to the extent that the
11 authority pledges its share of the proceeds of the tax
12 authorized by this section as security for the payment of bonds
13 issued by the authority for convention center purposes, the
14 Commonwealth pledges to and agrees with any person, firm or
15 corporation subscribing to or acquiring bonds to be issued by
16 the authority for convention center purposes that the
17 Commonwealth itself will not, except to the extent provided in
18 subsection (b), nor will it authorize any city to reduce the
19 rate of tax imposed for convention center purposes until all
20 bonds secured by the pledge of the authority, together with the
21 interest on the bonds, are fully met and discharged.
22 (h) Tax year.--Each tax year for any tax imposed hereunder
23 shall run concurrently with the city's fiscal year.
24 (i) Continuation of current tax.--The former provisions of
25 section 23 of the Pennsylvania Convention Center Authority Act,
26 formerly codified at 53 Pa.C.S. Ch. 59, are continued by this
27 chapter; and any tax imposition under the former provisions of
28 section 23 of the Pennsylvania Convention Center Authority Act,
29 formerly codified at 53 Pa.C.S. Ch. 59, is specifically
30 continued and is not repealed or modified in any way by the
20030H2236B3057 - 64 -
1 enactment of this chapter.
2 (j) Definitions.--In addition to the definitions provided by
3 section 6003 (relating to definitions), the following words and
4 phrases when used in this section shall have the meanings given
5 to them in this subsection unless the context clearly indicates
6 otherwise:
7 "Consideration." Receipts, fees, charges, rentals, leases,
8 cash, credits, property of any kind or nature, or other payment,
9 received by operators in exchange for or in consideration of the
10 use or occupancy by a transient of a room or rooms in a hotel
11 for any temporary period.
12 "Hotel." As follows:
13 (1) Any hotel, motel, inn, guesthouse or other building
14 located within the city which holds itself out by any means,
15 including advertising, license, registration with any
16 innkeeper's group, convention listing association, travel
17 publication or similar association or with any government
18 agency, as being available to provide overnight lodging or
19 use of facility space for consideration to individuals
20 seeking temporary accommodation.
21 (2) Any place which advertises to the public at large or
22 any segment of the public that it will provide beds, sanitary
23 facilities or other space for a temporary period to members
24 of the public at large.
25 (3) Any place recognized as a hostelry.
26 The term does not include a portion of a facility which is
27 devoted to individuals who have established permanent residence.
28 "Occupancy." The use or possession or the right to the use
29 or possession by any person other than a permanent resident of
30 any room in a hotel for any purpose or the right to the use or
20030H2236B3057 - 65 -
1 possession of the furnishings or to the services accompanying
2 the use and possession of the room.
3 "Operator." Any individual, partnership, nonprofit or
4 profit-making association or corporation or other person or
5 group of persons that maintains, operates, manages, owns, has
6 custody of or otherwise possesses the right to rent or lease
7 overnight accommodations in a hotel to the public for
8 consideration.
9 "Patron." A person that pays the consideration for the
10 occupancy of a room or rooms in a hotel.
11 "Permanent resident." Any person who has occupied or has the
12 right to occupy any room or rooms in a hotel as a patron or
13 otherwise for a period exceeding 30 consecutive days.
14 "Room." A space in a hotel set aside for use and occupancy
15 by patrons, or otherwise, for consideration, having at least one
16 bed or other sleeping accommodations provided in the space.
17 "Temporary." A period of time not exceeding 30 consecutive
18 days.
19 "Tourist promotion agency." The agency designated by the
20 council of the city in which the convention center is located to
21 be eligible for grants from the Department of Community and
22 Economic Development pursuant to the act of April 28, 1961
23 (P.L.111, No.50), known as the Tourist Promotion Law.
24 "Transaction." The activity involving the obtaining by a
25 transient or patron of the use or occupancy of a hotel room from
26 which consideration emanates to the operator under an express or
27 an implied contract.
28 "Transient." An individual who obtains an accommodation in a
29 hotel for the individual by means of registering at the facility
30 for the temporary occupancy of any room for the personal use of
20030H2236B3057 - 66 -
1 that individual by paying to the operator of the facility a fee
2 in consideration for the use.
3 Section 2. Notwithstanding any other provision of law to the
4 contrary, the Supreme Court of Pennsylvania shall have exclusive
5 jurisdiction to hear any challenge to or to render a declaratory
6 judgment concerning the constitutionality of 64 Pa.C.S. Ch. 60.
7 The Supreme Court is authorized to take such action as it deems
8 appropriate, consistent with the Supreme Court retaining
9 jurisdiction over such matter, to find facts or to expedite a
10 final judgment in connection with such a challenge or a request
11 for declaratory relief.
12 Section 3. (a) The following acts and parts of acts are
13 repealed:
14 Act of June 27, 1986 (P.L.267, No.70), known as the
15 Pennsylvania Convention Center Authority Act.
16 53 Pa.C.S. Ch. 59.
17 (b) All other acts and parts of acts are repealed insofar as
18 they are inconsistent with this act.
19 Section 4. This act shall take effect January 5, 2004, or
20 immediately, whichever is later.
L8L64RLE/20030H2236B3057 - 67 -