16 Pa.C.S. Ch. 173

in effect

16 Pa.C.S. § 17301 Scope of subchapter.

This subchapter relates to third class county convention center authorities.

16 Pa.C.S. § 17302 Findings, declaration of policy and scope.

(a) Findings.--The General Assembly finds as follows: (1) The health, safety and general welfare of the people of this Commonwealth are directly dependent upon the continual encouragement, development, growth and expansion of business, industry, commerce and tourism within this Commonwealth. (2) Unemployment, the spread of indigency and the heavy burden of public assistance and unemployment compensation can be avoided by the promotion, attraction, stimulation, development and expansion of business, industry, commerce and tourism in this Commonwealth. (3) Development of convention centers is appropriate within the redevelopment assistance eligible area of a third class county and that the attraction of business to this Commonwealth as a result of the development is an important factor in the continual encouragement, promotion, attraction, stimulation, development, growth and expansion of business, industry, commerce and tourism within the county seat, the surrounding counties and this Commonwealth as a whole. (4) The purpose of a convention center should be the promotion, attraction, stimulation, development and expansion of business, industry, commerce and tourism in the county seat, the surrounding counties and this Commonwealth as a whole. (5) The development of a convention center will provide benefits to the hotel industry throughout the entire area of the county in which the convention center is developed. (6) The development of a convention center will also provide benefits to the restaurant and entertainment industries throughout the entire county in which the convention center is located, to all other businesses and individuals benefited by the attraction of major conventions and tourists, to other individual businesses whose livelihood is dependent on major conventions and tourists and to the general public. (7) The need for and promotion of the type of facility which will provide significant benefits to the general public will require the expenditure of public money, and it is appropriate to authorize a county to impose and collect a tax applicable within the entire territorial limits of the county to facilitate the development of a convention facility and the promotion of tourism within the county. (8) To promote the development of convention centers within this Commonwealth, it is necessary to provide additional and flexible means of developing, constructing, designing, managing, financing and operating convention centers. (9) An important aspect of the development of convention centers should be the removal and redevelopment of blighted areas. (b) Declaration.--It is declared to be the policy of the Commonwealth to promote the health, safety, employment, business opportunities and general welfare of the people of this Commonwealth by providing for the creation of third class county convention center authorities, which shall exist and operate as public instrumentalities of the Commonwealth for the public purpose of promoting, attracting, stimulating, developing and expanding business, industry, commerce and tourism in this Commonwealth. This purpose is declared to be a public purpose supporting the enactment of all provisions of this subchapter for which public money may be spent and taxes may be imposed. (c) Scope of subchapter.-- (1) This subchapter shall not apply to a county which has an existing convention center owned, leased or operated by an existing authority or the Commonwealth, which covers an area of more than 40,000 square feet. (2) This subchapter shall not apply to a county which is served, together with one or more other counties, by a joint planning commission. (3) No provision of this subchapter other than section 17323 (relating to hotel room rental tax) shall apply to an existing authority.

16 Pa.C.S. § 17303 Definitions.

The following words and phrases when used in this subchapter shall have the meanings given to them in this section unless the context clearly indicates otherwise: "Authority." An agency and public instrumentality of the Commonwealth and a body politic and corporate created under this subchapter. "Board." The governing body of an authority. "Bonds." Notes, bonds, refunding notes and bonds, interim certificates, debentures and other evidence of indebtedness or obligations which an authority may issue under this subchapter. "Construction." The acquisition, design, erection, extension, renovation, rehabilitation, conversion, furnishing, fixturing, equipping, enlargement or substantial repair of a convention center, or part of a convention center, and activities substantially related to the acquisition, design, erection, extension, renovation, rehabilitation, conversion, furnishing, fixturing, equipping, enlargement or substantial repair of a convention center or part of a convention center. "Convention center." Includes: (1) Any land, improvement, structure, building or part of a land, improvement, structure or building, or property interest in any land, improvement, structure, building or part of a land, improvement, structure or building, whether owned by or leased by or to or otherwise acquired by an authority, appropriate for any of the following: (i) Large public assemblies. (ii) The holding of conventions, conferences, trade exhibitions and other business, social, cultural, scientific and public interest events. (2) All facilities, furniture, fixtures and equipment necessary or incident to any property or property interest under paragraph (1), including meeting rooms, dining rooms, kitchens, ballrooms, reception areas, registration and prefunction areas, truck loading areas, including access thereto, accessways, common areas, lobbies, offices and areas appurtenant to any of the preceding, together referred to as the main convention area. (3) Other buildings, structures or facilities for use in conjunction with the main convention area, including provision for off-street parking, retail areas and other improvements related to the convention center owned by or leased by or to an authority for the purpose of producing revenues to assist in defraying the costs or expenses of the convention center. "Cost of a project." All or any part of the cost of construction, acquisition, alteration, enlargement, furnishing, fixturing and equipping, reconstruction and rehabilitation of a convention center project. The term includes: (1) The cost of all lands, structures, real or personal property, rights, rights-of-way, roads, franchises, easements and interests acquired or used for or in connection with a project. (2) The cost of demolishing or removing buildings or structures on land acquired, including the cost of acquiring lands to which the buildings or structures may be moved or located. (3) The cost of all utility lines, structures or equipment. (4) The charges, interest prior to, during and for a period of six months after completion of construction and acquisition. (5) Provisions for reserves for principal and interest and for extensions, enlargements, additions and improvements. (6) The cost of architectural, engineering, financial and legal services, plans, specifications, studies, surveys, estimates of cost and revenues. (7) Expenses necessary or incident to determining the feasibility or practicability of constructing the project. (8) Other capital cost or expense as may be necessary or incident to the construction, development and acquisition of the project, the financing of construction, development and acquisition and the placing of the project in operation, including, without limitation, a proper allowance for contingencies and the provision of reasonable initial working capital for operating the project. "County." A county of the third class or a county which was a county of the third class at the time the county took action to create an authority under this subchapter. "Existing authority." An authority incorporated by a county of the third class prior to November 1, 1994, under the former act of May 2, 1945 (P.L.382, No.164), known as the Municipality Authorities Act of 1945, for the principal purpose of owning or operating a convention center. "Federal Government." The United States, the President of the United States and any department or corporation, agency or instrumentality created, designated or established by the United States. "Obligee." A bondholder or a trustee for a bondholder party to a contract with an authority. "Project." A site, building, structure, equipment, furnishing and other facilities or undertaking in respect to a convention center which an authority may acquire, construct, improve, install, maintain or operate under the provisions of this subchapter. "Redevelopment assistance eligible area." An area determined by the Department of Community and Economic Development to be eligible as a site for a facility receiving a grant under the Redevelopment Assistance Capital Program. "State public body." The Commonwealth and its executive, administrative and independent agencies, departments, officers, boards, authorities, commissions and instrumentalities. "Substantial completion." Construction that is sufficiently completed in accordance with contract documents and certified by the convention center authority's architect or engineer, as modified by change orders so that the main convention area can be used, occupied or operated for its intended use. In no event shall a project be certified as substantially complete until at least 90% of the work on the main convention area is completed.

16 Pa.C.S. § 17304 Authority creation.

The governing bodies of a third class county and the political subdivision constituting the county seat or the county acting alone may create a body corporate and politic to be named the ......... County Convention Center Authority to be created as a public authority and government instrumentality to have continuing succession until its existence shall be terminated by law. If the convention center to be constructed by an authority created under this subchapter shall be located within the jurisdictional limits of the county seat of the county, the authority shall be a joint authority of the county and the county seat. If the convention center shall be located outside the jurisdictional limits of the county seat of the county, the authority may be created solely by the county. The exercise by the authority of the powers conferred by this subchapter is an essential public function.

16 Pa.C.S. § 17305 Purposes and powers in general.

16 Pa.C.S. § 17306 Capital and operating budgets.

(a) Capital budget.--At least 90 days before the commencing of the ensuing fiscal year of the authority, a recommended capital budget shall be prepared and submitted to the board. The capital budget shall show in detail the capital expenditures to be made or incurred in the next fiscal year and financed from money subject to control or appropriation by the board. For each separate purpose, project, facility or other property, the amount and the source of the money that has been spent, encumbered or is intended to be spent or encumbered during the fiscal year shall be shown. No later than the date of the adoption of the annual operating budget, the board shall by a majority vote of its members adopt a capital budget. (b) Operating budget.--At least 90 days before the commencing of the ensuing fiscal year of the authority, a recommended operating budget shall be prepared and submitted to the board. The operating budget shall be prepared with the aid of the governing bodies of the county and county seat. In the event that the operating budget is not in a form and detail satisfactory to a governing body, the governing body may require that the operating budget be redrafted and resubmitted, and the governing body shall not be considered to be in receipt of the operating budget or any amendments unless the form and detail is to the governing body's satisfaction. The operating budget shall set forth the estimated receipts and revenues of the authority during the next fiscal year. The board shall, at least 30 days before the end of the fiscal year, adopt by a majority vote of its members an operating budget for the next fiscal year.

16 Pa.C.S. § 17307 Authorization to issue bonds.

(a) Authorization.-- (1) The authority may authorize the issuance of bonds by resolution of the board. A resolution authorizing the issuance of bonds must specify all of the following: (i) Series. (ii) Date of maturity not exceeding 40 years from the date of issue. (iii) Interest rate, as determined by the board as necessary to issue and sell the authorized bonds. (iv) Denomination. (v) Form, either coupon or fully registered without coupons. (vi) Registration, exchangeability and interchangeability privileges. (vii) Medium of payment and place of payment. (viii) Terms of redemption. (ix) Priorities in the revenue or receipts of the authority. (2) The bonds shall be signed by or shall bear the facsimile signatures of officers the authority determines, and coupon bonds shall have attached to them interest coupons bearing the facsimile signature of the treasurer of the authority, and all bonds shall be authenticated by an authenticating agent, fiscal agent or trustee, as may be prescribed in a resolution of the board. The bonds may be issued and delivered regardless of whether one or more of the officers who signed the bonds or the treasurer who, by facsimile, signed the coupon are not officers at the time the bonds are delivered. (b) Sale of bonds.--The bonds may be sold at public sale or private negotiated sale for the price or prices and at the rate of interest as the authority determines. Pending the preparation of the definitive bonds, interim receipts may be issued to the purchaser or purchasers of the bonds and may contain terms and conditions as the authority determines. (c) Negotiability.--The bonds shall have the qualities of negotiable instruments under 13 Pa.C.S. (relating to commercial code). (d) Use of net proceeds.--The net proceeds of the issue of bonds or notes may be used to pay the costs of the project or to reimburse costs initially paid by a State public body, the county, another political subdivision, an agency, an organization or an individual. (e) Refunding authorized.-- (1) Subject to the provisions of the outstanding bonds, notes or other obligations and subject to the provisions of this subchapter, the authority shall have the right and power to refund outstanding debt, in whole or in part, at any time and shall have the right and power to refund outstanding notes with bonds or bonds with notes. (2) As used in this subsection, the term "refund" and its variations means the issuance and sale of obligations the proceeds of which are used or are to be used for the payment or redemption of outstanding obligations upon or prior to maturity.

16 Pa.C.S. § 17308 Provisions of bonds, trusts, indentures and mortgages.

In connection with the issuance of bonds or the incurring of obligations under leases and in order to secure the payment of the bonds and obligations, the authority, in addition to its other powers, shall have the power to: (1) Pledge all or part of the gross or net revenues to which the authority's right then exists or may come into existence. (2) Mortgage all or part of the authority's real or personal property. (3) Covenant the following: (i) Against pledging all or part of the authority's revenues or against mortgaging all or part of the authority's real or personal property or permitting or suffering a lien on the revenues or property. (ii) With respect to limitations on the authority's right to sell, lease or otherwise dispose of real property. (iii) Other or additional debts or obligations incurred by the authority. (4) Do the following: (i) Covenant as to the bonds to be issued and as to the issuance of the bonds, in escrow or otherwise, and as to the use and disposition of the proceeds. (ii) Provide for the replacement of lost, destroyed or mutilated bonds. (iii) Covenant against extending the time for the payment of its bonds or interest. (iv) Redeem the bonds and to covenant for and provide the terms and conditions for redemption. (5) Do the following: (i) Covenant as to the amount and the use and disposition of revenues to be raised each year or other period of time by the authority. (ii) Create or authorize the creation of special funds for debt service or other purposes. (iii) Covenant as to the use and disposition of the money held in the funds for debt service or other purposes. (6) Prescribe the procedure, if any, by which the terms of a contract with bondholders may be amended or abrogated, the amount of bonds, to which bondholders must consent, and the manner in which consent may be given. (7) Do the following: (i) Covenant as to the use of its real or personal property. (ii) Warrant its title. (iii) Covenant as to the maintenance and replacement of its real and personal property, the insurance to be carried on the property and the use and disposition of insurance money. (8) Do the following: (i) Covenant as to the rights, liabilities, powers and duties arising upon the breach by it of any covenant, condition or obligation. (ii) Covenant and prescribe in the event of default as to terms and conditions upon which authority bonds or obligations are due before maturity and as to the terms and conditions upon which a declaration and its consequences may be waived. (9) Do the following: (i) Vest in a trustee or bondholders or any proportion of the bondholders the right to enforce the payment of the bonds or any covenants securing or relating to the bonds and vest in a trustee the right in the event of a default by the authority to take possession and use, operate and manage any real property and collect the rents and revenues that arise from the real property and to dispose of the money collected in accordance with the agreement of the authority with the trustee. (ii) Provide for the powers and duties of a trustee and limit the trustee's liabilities. (iii) Provide the terms and conditions upon which the trustee or bondholders or any proportion of bondholders may enforce covenants or rights securing or relating to the bonds. (10) Obtain letters of credit and bond insurance. (11) Exercise all, any part or combination of the powers granted in this section. (12) Make covenants other than and in addition to the covenants expressly authorized in this section. (13) Make covenants and perform acts necessary, convenient or desirable in order to secure the authority's bonds or, in the absolute discretion of the authority, that will accomplish the purpose of this subchapter by making the bonds more marketable even if the covenants or acts may not be specifically enumerated in this section.

16 Pa.C.S. § 17309 Remedies of obligee of authority.

An obligee of the authority shall have the right, in addition to all other rights which may be conferred on the obligee, subject only to contractual restrictions binding upon the obligee: (1) By mandamus, suit, action or proceeding at law or in equity, to compel the authority and authority members, officers, agents or employees to perform each term, provision and covenant contained in any bond or contract of the authority with or for the benefit of the obligee and require the carrying out of any or all covenants and agreements of the authority and the fulfillment of all duties imposed upon the authority by this subchapter. (2) By proceeding in equity, to obtain an injunction against any acts or things which may be unlawful or the violation of any of the rights of the obligee.

16 Pa.C.S. § 17310 Additional remedies conferrable by authority.

(a) Default.--The authority shall have power by resolution, trust, indenture or mortgage to confer upon an obligee holding or representing a specified percentage of bonds the right, in addition to all rights that may otherwise be conferred, upon the happening of an event of default as defined in the resolution or instrument, by suit, action or proceeding in a court of competent jurisdiction: (1) to obtain the appointment of a receiver of any real property or leasehold interest of the authority and of the rents and profits from the real property or leasehold interest. If a receiver is appointed, the receiver may enter and take possession of the real property or any leasehold interest, operate the property of leasehold interest and collect and receive all revenues or other income arising from the operation and shall keep the money in a separate account and apply the money in accordance with the obligations of the authority as the court shall direct; or (2) to require the authority and authority members to account as if it and they were the trustees of an express trust. (b) Authority of receiver.--Nothing in this subchapter shall authorize a receiver appointed under this subchapter for the purpose of operating and maintaining facilities of the authority to sell, assign, mortgage or otherwise dispose of the assets of the authority. It is the intention of this subchapter to limit the powers of the receiver to the operation and maintenance of the facilities of the authority as the court directs, and the following apply: (1) Receivers may not sell, assign, mortgage or otherwise dispose of any assets of the authority. (2) Bondholders, trustees and other obligees do not have the right in any suit, action or proceeding, at law or in equity, to compel a receiver to sell, assign, mortgage or otherwise dispose of any assets of the authority. (3) A court may not direct a receiver to sell, assign, mortgage or otherwise dispose of any assets of the authority.

16 Pa.C.S. § 17311 Governing board.

(a) Appointment.--The power of the authority shall be exercised by a governing board. The following apply: (1) The governing body of the county seat of the county in which the convention center is located shall appoint three members. The terms of the first three members appointed shall be allocated between them for a two-year, three-year and four-year term, respectively. (2) The governing body of the county in which the convention center is located shall appoint three members. The terms of the first three members appointed shall be allocated between them for a two-year, three-year and four-year term, respectively. (3) The two governing bodies shall alternate in the appointment of the seventh board member. The governing body of the county shall make the first appointment of the seventh board member, whose term shall be four years. (b) Terms.--Except as otherwise provided, members shall serve a four-year term from the date of appointment and until successors have been appointed and qualified. Subject to subsection (a), if a vacancy occurs by means of the death, disqualification, resignation or removal of a member, the appointing authority shall appoint a successor to fill the unexpired term. (c) Compensation.--Subject to an aggregate per annum limitation and other rules and regulations as the board determines, a member shall receive $100 per board meeting. (d) Organization.-- (1) The members of the board shall select from the members a chairperson and other officers as the board may determine. (2) Except as otherwise provided, all actions of the board shall be taken by a vote of at least four members of the board, which shall constitute a majority, unless the bylaws of the authority provide for a majority vote by a present quorum in the absence of a full board. (3) The board shall have full authority to manage the properties and business of the authority and to prescribe, amend and repeal bylaws, rules and regulations governing the manner in which the business of the authority may be conducted and the powers granted to it may be exercised and embodied. (4) Notwithstanding any other law, court decision, precedent or practice to the contrary, actions by or on behalf of the board shall not be taken by an officer of the board except upon the approval of the board. (5) As used in this subsection, the term "actions by or on behalf of the board" means any action of the board, including: (i) the hiring, appointment, removal, transfer, promotion or demotion of officers and employees; (ii) the retention, use or remuneration of advisors, counsel, auditors, architects, engineers or consultants; (iii) the initiation of legal action; (iv) the making of contracts, leases, agreements, bonds, notes or covenants; (v) the approval of requisitions, purchase orders, investments and reinvestments; and (vi) the adoption, amendment, revision or rescission of rules and regulations, orders or other directives. (e) Nonliability of members.--Members of the board may not be held personally liable for the bonds or other obligations of the authority and the rights of creditors shall be solely against the authority. The authority, itself or by contract, shall defend board members, and the authority shall indemnify and hold harmless board members, regardless of whether currently serving as an authority member, against and from personal liabilities, actions, causes of action and claims made against the authority for actions performed within the scope of duties as board members.

16 Pa.C.S. § 17312 Sovereign immunity.

The following apply: (1) The authority created under this subchapter and its officers, officials and employees shall have sovereign and official immunity, as provided in 1 Pa.C.S. § 2310 (relating to sovereign immunity reaffirmed; specific waiver). (2) The authority shall remain immune from suit except as provided by and subject to 42 Pa.C.S. §§ 8501 (relating to definitions), 8502 (relating to enforcement proceedings), 8521 (relating to sovereign immunity generally), 8522 (relating to exceptions to sovereign immunity), 8523 (relating to venue and process), 8524 (relating to defenses), 8525 (relating to legal assistance), 8526 (relating to counterclaim by the Commonwealth), 8527 (relating to indemnity relating to inmate health care) and 8528 (relating to limitations on damages). (3) Notwithstanding 42 Pa.C.S. § 8525, the authority shall defend actions brought against the authority and the authority's officers and employees if acting within the scope of their official duties.

16 Pa.C.S. § 17313 Money of authority.

(a) Payment to treasurer.--All money of the authority shall be paid to the treasurer of the authority. (b) Investment of money.--The board shall invest authority money consistent with sound business practice. (c) Investment program.--The board shall provide for an investment program subject to restrictions contained in this subchapter, any other applicable statute and rules or regulations adopted by the board. (d) Authorized types of investments.--Authorized types of investments for authority money shall be: (1) Direct obligations of or obligations guaranteed by the United States. (2) A bond, debenture, note, participation certificate or other similar obligation issued by any one or a combination of the following agencies: (i) Government National Mortgage Corporation. (ii) Federal Land Banks. (iii) Federal Home Loan Banks. (iv) Federal Intermediate Credit Banks. (v) Banks for Cooperatives. (vi) Tennessee Valley Authority. (vii) United States Postal Service. (viii) Farmers Home Administration. (ix) Student Loan Marketing Association. (x) Export-Import Bank of the United States. (3) A bond, debenture, note, participation certificate or other similar obligation issued by the Federal National Mortgage Corporation to the extent the obligations are guaranteed by the Government National Mortgage Corporation or issued by another Federal agency and backed by the full faith and credit of the United States. (4) Deposits in interest-bearing time or demand deposits or certificates of deposit fully insured by the Federal Deposit Insurance Corporation or its successors or the Federal Savings and Loan Insurance Corporation or its successors or fully secured by any of the obligations described in paragraphs (1), (2) and (3) to the extent not so insured. (5) Repurchase agreements relating to, or investment agreements secured by or providing for the acquisition of and, if applicable, the resale of, obligations described in paragraphs (1), (2), (3) and (4) or obligations of the Federal Home Loan Mortgage Corporation or the Federal National Mortgage Association with: (i) banks or trust companies, which may include a banking entity or depository; (ii) brokers or broker-dealers registered under the Securities Exchange Act of 1934 (48 Stat. 881, 15 U.S.C. §§ 78a-78jj) acceptable to the authority; or (iii) insurance companies rated A+ or better by Best's and having a net capital and surplus of at least $25,000,000 or certificates of deposit with banks or trust companies fully secured as to principal and accrued interest by obligations described in paragraphs (1), (2), (3) and (4) deposited with or subject to the control of the authority. (6) Money market deposit accounts of banks or trust companies having a net capital and surplus of at least $25,000,000, which may include a banking entity or depository. (7) The description of authorized investments under paragraphs (5) and (6) shall be met only if the agreements referenced in paragraph (5) or (6) provide for the repayment of the principal amount invested at an amount not less than that invested. If security is required under paragraph (4), (5) or (6), the security shall be deposited with the treasurer of the authority or be held by a trustee or agent satisfactory to the authority. Money of the authority shall be paid out on the warrant or other order of the chairperson of the authority or other person as the authority may authorize to execute warrants or orders. (e) Annual report and audit.--An authority created under this subchapter shall file an annual report with the Department of Community and Economic Development, with the county and with the political subdivision constituting the county seat, which shall make provisions for the accounting of revenues and expenses. Authority books, accounts and records shall be audited annually in accordance with generally accepted auditing standards by an independent auditor who shall be a certified public accountant and a copy of the audit report shall be attached to and be made a part of the annual report. A concise financial statement shall be published annually in a newspaper of general circulation in the county in which the authority is located. (f) Power of inspection.--The Attorney General, the Auditor General, the Secretary of the Budget, the chairperson and minority chairperson of the Appropriations Committee of the Senate and the chairperson and minority chairperson of the Appropriations Committee of the House of Representatives shall have the right to examine the books, accounts and records of the authority. Cross References. Section 17313 is referred to in section 17305 of this title.

16 Pa.C.S. § 17314 Transfer of existing facilities or money, making of annual grants and lease payments to authority.

(a) Authority to transfer.-- (1) A State public body or political subdivision may sell, lease or sublease from or to, lend, grant, convey or otherwise transfer or pay over to the authority, with or without consideration, any of the following: (i) A convention center or part of a convention center. (ii) An interest in property, real, personal or mixed, tangible or intangible. (iii) Any money available, needed or obligated for development, acquisition, design, maintenance, management, operation, financing, leasing or subleasing, construction or improvement purposes, including the proceeds of bonds issued before or after November 3, 1999, for construction or improvement of a convention center or part of a convention center. (2) Property, money, a convention center or part of a convention center received by the authority may be used for any lawful purpose of the authority. (3) Nothing in this subchapter or in any other law shall be deemed to make an authority or person a State-supported or State-aided institution under any law of this Commonwealth. (b) Grants authorized.-- (1) Subject to paragraph (2), the governing bodies of the county and county seat are authorized to: (i) Make grants from current revenues to the authority. (ii) Assist in defraying the costs of management, operation, maintenance, financing and debt service of a convention center or part of a convention center. (iii) Enter into long-term agreements providing for payments under subparagraph (i) or (ii). (iv) Enter into long-term leases or subleases as lessee or sublessee of all or part of a convention center. (2) Obligations of the county and county seat to make grants, lease or sublease payments to an authority shall not, even if based on debt obligations of an authority, constitute debts of the county and county seat within the meaning of any constitutional or statutory provision and shall be payable only to the extent that current revenues of the county and county seat are available. (3) The county and county seat may issue general obligation bonds for the purpose of obtaining money for local contributions pertaining to a convention center or part of a convention center. (c) Capital costs.--The Commonwealth may contribute to the capital costs of constructing a convention center by the issuance of Commonwealth bonds and notes under Article XIX-B of the act of March 4, 1971 (P.L.6, No.2), known as the Tax Reform Code of 1971, or under Chapter 3 of the act of February 9, 1999 (P.L.1, No.1), known as the Capital Facilities Debt Enabling Act. A convention center project undertaken by the authority is deemed to be a redevelopment assistance project for which capital funds of the Commonwealth may be expended under the provisions of the act of May 20, 1949 (P.L.1633, No.493), known as the Housing and Redevelopment Assistance Law, and, notwithstanding any provisions of the Housing and Redevelopment Assistance Law, the Department of Community and Economic Development may make capital grants directly to the authority in furtherance of this subchapter.

16 Pa.C.S. § 17315 Award of contracts.

(a) General rule.--All construction, reconstruction, repairs or work of any nature made by an authority in which the entire cost, value or amount of the construction, reconstruction, repairs or work, including labor and materials, shall exceed the adjusted base amount under section 15101(a) (relating to commissioners sole contractors for county generally) for which bids are required for counties, except construction, reconstruction, repairs or work done by employees of the authority or by labor supplied under agreement with a Federal agency, State public body or political subdivision, with supplies and materials purchased as provided under this section, shall be done only under contract or contracts to be entered into by the authority with the lowest responsible bidder upon proper terms after due public notice has been given asking for competitive bids as provided under this section and in accordance with the following: (1) The authority shall have the right to reject any or all bids or select a single item from any bid. (2) Contracts may not be entered into for construction or improvement or repair of a project or portion of a project unless the contractor provides sufficient surety or sureties approved by the authority in an amount fixed by the authority for the performance of the contract. (3) All contracts shall provide that the person or corporation entering into the contract with the authority pay for all materials furnished and services rendered for the performance of the contract and that a person or corporation furnishing materials or rendering services may maintain an action to recover for the same against the obligor in the undertaking as though the person or corporation was named in the contract if the action is brought within one year after the time the cause of action accrued. (4) Nothing in this section shall be construed to limit the power of the authority to construct, repair or improve a project or portion of a project or an addition, betterment or extension to a project directly by the officers and employees of the authority. (5) The authority shall award the construction of a convention center according to the provisions of the act of May 1, 1913 (P.L.155, No.104), referred to as the Separations Act, and shall be subject to 62 Pa.C.S. Pt. I (relating to Commonwealth procurement code). (6) Nothing in this section or any other law shall require the authority to competitively bid architectural design, engineering or other professional services required by the authority. (b) Purchasing of supplies and materials.--All supplies and materials the cost of which exceed the adjusted base amount under section 15101(a) for which bids are required for counties to be acquired directly by the authority shall be purchased only after due advertisement. The authority shall accept the lowest bid or bids from a responsible bidder, kind, quality and material being equal, but the authority shall have the right to reject any bid or select a single item from a bid. The provisions as to bidding shall not apply to the purchase of unique supplies and materials or supplies and materials which cannot be obtained in the open market. (c) Construction.--Nothing in this section or in any other law shall preclude the board with the approval of five members from negotiating contracts for management, operation, concession services, licensing or leasing of a convention center or any part of a convention center. The authority may not award a contract to a manager, operator, concessionaire, licensee, lessee or lessor which exceeds three years in duration unless five members of the board approve the awarding of a contract for a greater period of time. (d) Local regulation.--The authority and authority contractors, subcontractors, assignees, lessees, agents, vendors and suppliers are not subject to county or county seat laws, ordinances, rules or regulations relating to limits or preferences with regard to employment, contracting or procurement in the construction and operation of the convention center. (e) Applicability of other acts.--The authority shall be subject to the act of August 15, 1961 (P.L.987, No.442), known as the Pennsylvania Prevailing Wage Act, the act of March 3, 1978 (P.L.6, No.3), known as the Steel Products Procurement Act, and 62 Pa.C.S. Ch. 37 Subch. B (relating to motor vehicles). (f) Definitions.--As used in this section, the following words and phrases shall have the meanings given to them in this subsection unless the context clearly indicates otherwise: "Advertisement." A public notice. "Public notice." A notice published at least 10 days before the award of a contract in a newspaper of general circulation published in the county, which may be waived if the authority determines an emergency exists and supplies and materials must be immediately purchased by the authority. Special Provisions in Appendix. See section 6(3) of Act 14 of 2024 in the appendix to this title for special provisions relating to continuation of prior law.

16 Pa.C.S. § 17316 Interests of public officers, public employees and party officers.

(a) Management level employees.-- (1) A party officer, public officer, public official or public employee may not be employed as a management-level authority employee. (2) A person convicted of an infamous crime may not be employed as a management-level employee by the authority. (b) Other laws applicable.-- (1) The provisions of the act of July 19, 1957 (P.L.1017, No.451), known as the State Adverse Interest Act, and 65 Pa.C.S. Ch. 11 (relating to ethics standards and financial disclosure) are made specifically applicable to board members, officers and employees of the authority. For the purposes of application of these acts, employees of the authority shall be regarded as public employees of the Commonwealth, and officers and board members of the authority shall be regarded as public officials of the Commonwealth, regardless of whether the employee, officer or board member receive compensation. (2) The authority is subject to the act of February 14, 2008 (P.L.6, No.3), known as the Right-to-Know Law, and 65 Pa.C.S. Ch. 7 (relating to open meetings). (c) Conflicts of interest.--Notwithstanding the provisions of subsection (b), the following prohibitions shall apply: (1) A management-level employee or other employee of the authority may not use the employee's position with the authority or confidential information received through the employee's position with the authority to obtain financial gain other than compensation provided by law for the employee, a member of the employee's immediate family or a business with which the employee is associated. For purposes of this paragraph, the term "business with which the employee is associated" shall mean a business in which the employee or a member of the employee's immediate family is a director, officer, owner, employee or stockholder. (2) A person may not offer or give to a management-level employee or other employee of the authority or a member of the employee's immediate family or a business with which the employee is associated, and management-level employees or other employees of the board may not solicit or accept, anything of value, including a gift, loan, political contribution, reward or promise of future employment, based on an understanding that the vote, official action or judgment of the employee would be influenced thereby. For purposes of this paragraph, the term "business with which the employee is associated" shall mean a business in which the person or a member of the person's immediate family is a director, officer, owner, employee or stockholder. (3) A management-level employee or other employee of the authority or a member of the employee's immediate family or a business in which the employee or a member of the employee's immediate family is a director, officer, owner or stockholder exceeding 5% of the equity at fair market value of the business may not enter into a contract valued at $500 or more to provide goods or services to the authority unless the contract has been awarded to the lowest responsible bidder through an open and public process, including prior public notice and subsequent public disclosure of all proposals considered and contracts awarded. (4) A former management-level employee or other former employee of the authority may not represent a person, with or without compensation, on any matter before the authority with which the employee has been associated for one year after the employee leaves employment with the authority. (5) An individual who is a State, county seat or county public officer or public official or a party officer, a member of the immediate family of the individual or a business with which the individual or immediate family member is associated shall not have a financial interest in a contract valued at $500 or more to provide goods or services to the authority either during the time the individual holds the office or for two years after the individual terminates the office unless the contract is executed under paragraph (3). For purposes of this paragraph: (i) The term "financial interest" does not include employment by, association with or ownership of a business association unless the public officer, public official, party officer or immediate family member owns shares of stock in the corporation in an amount in excess of 5% of the total issue of the stock of the corporation or has an ownership interest in a noncorporate business association in an amount in excess of 5% of the total ownership of the noncorporate business association. (ii) The term "business with which the individual or immediate family member is associated" shall mean a business in which the person or a member of the person's immediate family is a director, officer, owner, employee or holder of stock. (6) An employee of the authority or an advisor or consultant to the county seat, the county or the State who has recommended to the authority which the employee serves either entering into a contract relating to a convention center authority or a course of action of which entering into the contract is an express or implied part may not have an adverse interest in the contract. (7) A management-level employee or other employee of the authority, the county seat, the county or the State may not influence or attempt to influence the making of or supervise or in any manner deal with a contract with the authority in which the employee has an adverse interest. (8) A management-level employee or other employee of the authority may not have an adverse interest in a contract with the authority. (9) An individual having an adverse interest in a contract with the authority may not become a management-level employee or other employee of the authority until the adverse interest is wholly divested. (10) A management-level employee or other employee of the Commonwealth, authority, county seat or county, except in the performance of the employee's duties for the authority, may not, directly or indirectly, represent a person upon a matter pending before the authority for remuneration. (d) Penalties.-- (1) An individual who violates this section shall be immediately terminated from employment with the authority by the appropriate individual having the power to terminate and shall be liable to the authority to reimburse the authority for all compensation received by the employee from the authority while employed in violation of subsection (a). (2) An individual who violates subsection (c)(1) or (2) commits a felony and, upon conviction, shall be sentenced to pay a fine of not more than $10,000 or to imprisonment for not more than five years, or both. (3) An individual who violates subsection (c)(3), (4), (5), (6), (7), (8), (9) or (10) commits a misdemeanor and, upon conviction, shall be sentenced to pay a fine of not more than $1,000 or to imprisonment for not more than one year, or both. (4) An individual who obtains financial gain from violating subsection (c), in addition to any other penalty provided by law, shall pay into the accounts of the authority a sum of money equal to three times the financial gain resulting from the violation. (5) An individual who violates subsection (c) shall be barred for a period of five years from engaging in any business or contract with the authority, the county seat, the county, the Commonwealth and all political subdivisions of the Commonwealth. (6) An employee of the county seat, the county or the Commonwealth or any political subdivision of the Commonwealth or a public officer or public official who violates subsection (c) must automatically forfeit the office or employment the employee, officer or official holds. (7) The penalties and sanctions provided by this section shall supersede any similar penalties and sanctions provided by 65 Pa.C.S. Ch. 11 and the State Adverse Interest Act. (e) Definitions.--As used in this section, the following words and phrases shall have the meanings given to them in this subsection unless the context clearly indicates otherwise: "Business." A corporation, partnership, sole proprietorship, firm, enterprise, franchise, association, organization, self-employed individual, holding company, joint-stock company, receivership, trust or any legal entity organized for profit or as a not-for-profit corporation or organization. "Immediate family." A parent, spouse, child, brother, sister or like relative-in-law. "Infamous crime." A violation and conviction for an offense which would disqualify an individual from holding public office pursuant to section 6 of Article II of the Constitution of Pennsylvania or a conviction for a violation of this section, 18 Pa.C.S. § 4113 (relating to misapplication of entrusted property and property of government or financial institutions) or 18 Pa.C.S. Ch. 47 (relating to bribery and corrupt influence), 49 (relating to falsification and intimidation), 51 (relating to obstructing governmental operations) or 53 (relating to abuse of office) or any other violation of the laws of this Commonwealth for which an individual has been convicted within the preceding 10 years and which is classified as a felony, and similar violations of the laws of another state or the Federal Government. "Management-level authority employee." The chairperson and members of the board, counsel employed by the authority, the executive director of the authority and authority employees with discretionary powers which may affect the outcome of the authority's decision in relation to a private corporation or business or employees who, by virtue of the employee's job function, have the ability to influence the outcome of the decision. "Party officer." Any of following members or officers of a political party: (1) A member of a national committee. (2) A chairperson, vice chairperson, secretary, treasurer or counsel of a State committee or member of the executive committee of a State committee. (3) A city chairperson or vice chairperson or counsel, secretary or treasurer of a city committee. (4) A county chairperson or vice chairperson or counsel, secretary or treasurer of a county committee. "Person." A business, individual, corporation, union, association, firm, partnership, committee, club or other organization or group of persons. "Public employee." As follows: (1) The term includes an individual employed by the Commonwealth or a political subdivision of the Commonwealth who is responsible for taking or recommending official action of a nonministerial nature with regard to: (i) contracting or procurement; (ii) administering or monitoring grants or subsidies; (iii) planning or zoning; (iv) inspecting, licensing, regulating or auditing any person; or (v) any other official action which has an economic impact of greater than a de minimis nature on the interest of any person. (2) The term does not include individuals who are employed by the Commonwealth or a political subdivision of the Commonwealth in teaching, as distinguished from administrative duties. "Public officer." An individual elected to any public office of the Commonwealth or a political subdivision of the Commonwealth. "Public official." An elected or appointed official in the executive, legislative or judicial branch of the Commonwealth or a political subdivision of the Commonwealth. The term does not include any of the following: (1) Members of advisory boards who have no authority to expend public money other than reimbursement for personal expense or to otherwise exercise the power of the Commonwealth or a political subdivision of the Commonwealth. (2) An appointed official who receives no compensation other than reimbursement for actual expenses.

16 Pa.C.S. § 17317 Acquisition of lands.

The authority shall have the power to acquire by purchase either the fee or a right, title, interest or easement, or any combination, in land within the county or county seat as the authority may deem necessary for the purpose mentioned in this subchapter, except that a convention center constructed pursuant to the terms of this subchapter must be located in a redevelopment assistance eligible area.

16 Pa.C.S. § 17318 Use and operation of convention center.

The use and operation of the convention center, including all parts of a convention center, and the operation of the business of the authority shall be subject to the rules and regulations adopted by the authority. The authority is not authorized to take any action which may impair the security of the obligees of the authority or violate any agreements with the obligees or for the benefit of the obligees or violate any contracts, leases or other agreements awarded, made or entered into by the authority.

16 Pa.C.S. § 17319 Limitation of powers.

(a) Commonwealth pledge.-- (1) The Commonwealth pledges to and agrees with any person, the county, county seat, political subdivision or Federal agency subscribing to or acquiring the bonds issued by the authority for the construction or improvement of a convention center or part of a convention center that the Commonwealth will not limit or alter the rights vested in the authority in any manner inconsistent with the obligations to the bondholders until all bonds issued, together with the interest, are fully paid and discharged. (2) The Commonwealth further pledges to and agrees with any Federal agency that in the event that the Federal agency constructs or contributes money to construct or improve a convention center or part of a convention center that the Commonwealth will not alter or limit the rights and powers of the authority in any manner which would be inconsistent with the due performance of any agreements between the authority and the Federal agency. (b) Additional Commonwealth pledge.--The Commonwealth pledges to and agrees with any person that as owner leases or subleases a convention center or part of a convention center to or from an authority created under this subchapter that the Commonwealth will not limit or alter the rights and powers vested in the authority or otherwise created under this subchapter in any manner which impairs the obligations of the authority until all obligations of the authority under the lease or sublease are fully met and discharged.

16 Pa.C.S. § 17320 Exemption from taxation.

The effectuation of the authorized purposes of an authority shall be in all respects for the benefit of the residents of this Commonwealth, for the increase of commerce and prosperity and for the improvement of health and living conditions. Since an authority, as a public instrumentality of the Commonwealth, performs essential governmental functions in effectuating these purposes, the authority shall not be required to pay any taxes or assessments upon a convention center, or part of a convention center, or property acquired or used or permitted to be used by them for these purposes. The bonds issued by an authority, their transfer and the income from the bonds, including any profits made on the sale of the bonds, shall be free from State and local taxation within this Commonwealth. This exemption may not extend to gift, estate, succession or inheritance taxes or any other taxes not levied directly on the bonds, the transfer or the income from the bond, or the realization of profits on the sale of the bonds.

16 Pa.C.S. § 17321 Lease by authorities.

A convention center or part of a convention center may be leased or subleased by the authority to and from the county or county seat, and the county or county seat may enter into leases or subleases, or both, for this purpose. A lease or sublease may be made for a specified or unlimited time and on terms and conditions as may be approved by the county or county seat and agreed to by the authority in conformity with the authority's contracts with the holders of any bonds.

16 Pa.C.S. § 17322 Cooperation.

(a) General rule.--The following shall apply: (1) For the purpose of aiding and cooperating with the authority and in the planning, acquisition, clearance, relocation, development, design, construction, rehabilitation, leasing, subleasing, alteration, expansion, financing, improvement, management or operation of a convention center or part of a convention center, any State public body or political subdivision or the county or county seat may, upon terms, with or without consideration: (i) Dedicate, sell, convey, lease or otherwise transfer property or any interest therein, real, personal or mixed, tangible or intangible, to the authority. (ii) Cause parking, recreational or community facilities or any other works, which it is otherwise empowered to undertake, to be furnished in or adjacent to any area selected for a convention center or part of a convention center. (iii) Furnish, dedicate, close, pave, install, grade, regrade, plan or replan streets, roads, roadways, alleys, sidewalks or other places which it is otherwise empowered to do. (iv) Enter into agreements, extending over any period, with the authority or with the Federal Government pertaining to an action to be taken by a State public body under this section. (v) Aid and cooperate in the development, acquisition, design, construction, improvement, maintenance, management, operation, furnishing, fixturing, equipping, repairing, financing, owning, leasing and subleasing of a convention center or part of a convention center. (vi) In connection with public improvements made by a State public body, political subdivision, county or the county seat, in exercising the powers granted, incur the entire expense. (2) The Secretary of General Services is authorized, with the approval of the Governor and Attorney General, to execute and deliver, on behalf of the Commonwealth, conveyances, deeds and leases authorized under this subchapter. (b) Contract.--In connection with a convention center or part of a convention center, the county or county seat may contract with the authority or the Federal Government with respect to sums which the authority or the Federal Government may agree to pay during any year or period of years to the county or county seat for the improvements, services and facilities to be provided by it for the benefit of the authority, convention center or part of a convention center, or the persons occupying the area. The absence of a contract for these payments shall not relieve the county or county seat from the duty to furnish for the benefit of the authority, convention center or part of a convention center or the persons occupying the area, customary improvements and services and facilities as the county or county seat usually furnishes without a service fee. (c) Agent.--The Commonwealth, county or county seat may, by written agreement, designate the authority as its agent within the authority's field of operation to perform any specified activity or to administer any specified program which the Commonwealth, county or county seat is authorized by law to do, except that any activity or program shall be in furtherance of the public purposes specified in this chapter. The activities may include development, acquisition, design, construction, improvement, maintenance, leasing, management or operation of a convention center. (d) Powers.--The powers conferred by this section shall be in addition and supplemental to the powers conferred by any other law.

16 Pa.C.S. § 17323 Hotel room rental tax.

(a) Imposition.--The county in which a convention center is located may impose an excise tax on the consideration received by each operator of a hotel within the market area from each transaction of renting a room or rooms to accommodate transients. The tax shall be collected by the operator from the patron of the room and paid over to the county under subsection (e) and shall be known as the Hotel Room Rental Tax. (b) Rate.--The rate of tax imposed under this section by the county in which the convention center is located may not exceed 5%. (c) Deposit.--Eighty percent of revenues received from taxes imposed under this section shall be annually deposited in the special fund required under subsection (d) for the use of the authority for convention center purposes. Twenty percent of the revenues received from taxes imposed under this section shall be deposited within 30 days of collection into the tourist promotion agency fund required under subsection (d) until disbursed as provided below. (d) Collection.--The following shall apply: (1) The treasurer of each county electing to impose the tax authorized under this section is directed to collect the tax and: (i) to deposit 80% of the revenues received from the tax in special funds established for purposes in this section; and (ii) to deposit 20% of the revenues received by the tax in the tourist promotion agency fund until disbursed under subsection (g). (2) Interest on money deposited in the funds shall accrue proportionately to the respective funds as provided in this section. The treasurer may establish rules and regulations concerning the collection of the tax, which collection shall occur not more than monthly nor less than quarterly. (e) Expenditures.--Expenditures from the fund established under subsection (d) for the authority shall be used by the authority for the following purposes: (1) Projected annual debt service or lease payments of the convention center authority. (2) Costs associated with financing, constructing, improving, maintaining, furnishing, fixturing and equipping the convention center. (3) Costs associated with the development of the convention center, including design, engineering and feasibility costs. (4) Costs associated with the operation and management of the convention center. (5) Costs associated with promoting, marketing and encouraging the use of the convention center. (6) General purposes of the convention center. (f) Security.--If and to the extent that the authority pledges its share of the proceeds of the tax authorized by this section as security for the payment of bonds issued by the authority for convention center purposes, the Commonwealth pledges to and agrees with any person, firm or corporation subscribing to or acquiring bonds to be issued by the authority for convention center purposes that the Commonwealth will not, nor will it authorize a county to, reduce the rate of tax imposed for convention center purposes until all bonds secured by the pledge of the authority, together with interest, are fully met and discharged. (g) Tourist promotion agency.-- (1) If default has not occurred or is continuing with respect to any bonds, notes or other indebtedness of an authority incurred to finance the construction of a convention center, revenues received from the tax deposited into the tourist promotion agency fund required under subsection (d) shall be disbursed by each county to the tourist promotion agency within 10 days of receipt. (2) The county shall have no obligation to invest any money deposited into the tourist promotion agency fund. (h) Tax year.--Each tax year for any tax imposed under this section shall run concurrently with the county's fiscal year. (i) Report.--An audited report on the income and expenditures incurred by a tourist promotion agency receiving revenue from the tax authorized under this section shall be submitted annually by the tourist promotion agency to the county commissioners. (j) Expiration.--The tax levied under this section shall expire when all bonds issued by a county under this subchapter have been fully met and discharged. (k) Definitions.--As used in this section, the following words and phrases shall have the meanings given to them in this subsection unless the context clearly indicates otherwise: "Consideration." Receipts, fees, charges, rentals, leases, cash, credits, property of any kind or nature or other payment received by operators in exchange for or in consideration of the use or occupancy by a transient of a room or rooms in a hotel for a temporary period. "Convention center." (1) Any land, improvement, structure, building or property interest, whether owned by or leased by or to or otherwise acquired by an existing authority, appropriate for any of the following: (i) Large public assemblies. (ii) Holding of conventions, conferences, trade exhibitions and other business. (iii) Social, cultural, scientific and public interest events. (2) All facilities, furniture, fixtures and equipment necessary or incident to any item listed in paragraph (1), including meeting rooms, dining rooms, kitchens, ballrooms, reception areas, registration and prefunction areas, truck loading areas, including access, accessways, common areas, lobbies, offices and areas appurtenant to any of the preceding, together referred to as the main convention area, and also including other buildings, structures or facilities for use in conjunction with the foregoing, including, but not limited to, provisions for off-street parking, retail areas and other improvements related to the center owned by or leased by or to an existing authority for the purpose of producing revenues to assist in defraying the costs or expenses of the convention center. "Hotel." As follows: (1) A hotel, motel, inn, guest house or other building located within the market area which holds itself out by any means, including advertising, license, registration with an innkeeper's group, convention listing association, travel publication or similar association or with a government agency, as being available to provide overnight lodging or use of facility space for consideration to persons seeking temporary accommodation. The term includes: (i) A place which advertises to the general public or a segment of the general public that it will provide beds, sanitary facilities or other space for a temporary period to members of the general public. (ii) A place recognized as a hostelry, provided that portions of a facility which are devoted to persons who have established permanent residence shall not be included in this definition. (2) The term does not include a bed and breakfast homestead or inn as defined in 3 Pa.C.S. § 5702 (relating to definitions). "Market area." As follows: (1) With respect to a county in which there is more than one city of the third class, the entire county. (2) With respect to a county in which there is only one city of the third class, one of the following: (i) The city and the area within the county which is not more than 15 miles from the site of the convention center. (ii) The city and the area within the county which, as determined by the board of county commissioners imposing the tax, derives a material benefit from the existence of the convention center within the county. The owner of a hotel affected by a determination by the board under this subparagraph may challenge the determination by filing a petition in the court of common pleas in the judicial district in which the determination was made. "Occupancy." The use or possession, or the right to the use or possession, by an individual other than a permanent resident of a room in a hotel for any purpose or the right to the use or possession of the furnishings or to the services accompanying the use and possession of the room. "Operator." Any individual, partnership, nonprofit or profit-making association or corporation or other person or group of persons that maintain, operate, manage, own, have custody of or otherwise possess the right to rent or lease overnight accommodations in a hotel to the public for consideration. "Patron." An individual who pays the consideration for the occupancy of a room or rooms in a hotel. "Permanent resident." An individual who has occupied or has the right to occupy a room or rooms in a hotel as a patron or otherwise for a period exceeding 30 consecutive days. "Room." A space in a hotel set aside for use and occupancy by patrons, or otherwise, for consideration, having at least one bed or other sleeping accommodations provided therein. "Temporary." A period of time not exceeding 30 consecutive days. "Tourist promotion agency." The agency designated by the governing body of a county or county seat in which the convention center is located to be eligible for grants from the Department of Community and Economic Development under the act of July 4, 2008 (P.L.621, No.50), known as the Tourism Promotion Act. "Transaction." The activity involving the obtaining by a transient or patron of the use or occupancy of a hotel room from which consideration emanates to the operator under an express or implied contract. "Transient." An individual who obtains an accommodation in any hotel by means of registering at the facility for the temporary occupancy of a room for the personal use of that individual by paying to the operator of the facility a fee. Cross References. Section 17323 is referred to in section 17302 of this title.

16 Pa.C.S. § 17331 Scope of subchapter.

This subchapter relates to third class county convention center authorities, alternative provisions.

16 Pa.C.S. § 17332 Findings, declaration of policy and scope.

(a) Findings.--It is determined and declared that: (1) The health, safety and general welfare of the people of this Commonwealth are directly dependent upon the continual encouragement, development, growth and expansion of business, industry, commerce and tourism within this Commonwealth. (2) Unemployment, the spread of indigence and the heavy burden of public assistance and unemployment compensation can be avoided by the promotion, attraction, stimulation, development and expansion of business, industry, commerce and tourism in this Commonwealth. (3) Development of convention centers is appropriate within a third class county and the attraction of business to this Commonwealth as a result of such development is an important factor in the continual encouragement, promotion, attraction, stimulation, development, growth and expansion of business, industry, commerce and tourism within the county seat, the surrounding municipalities and this Commonwealth as a whole. (4) The purpose of a convention center should be the promotion, attraction, stimulation, development and expansion of business, industry, commerce and tourism in the county seat, the surrounding municipalities and this Commonwealth as a whole. (5) The development of a convention center will provide benefits to the hotel industry throughout the entire area of the county in which the center is developed. (6) The development of a convention center will also provide benefits to the restaurant and entertainment industries throughout the entire county in which the center is located, to all other businesses and individuals benefited by the attraction of major conventions and tourists, to other individual businesses whose livelihood is dependent on major conventions and tourists and to the general public. (7) The need for and promotion of the type of facility which will provide significant benefits to the general public will require the expenditure of public money and it is therefore appropriate to authorize a county to impose and collect a tax applicable within the entire territorial limits of the county to facilitate the development of a convention facility and the promotion of tourism within the county. (8) To promote the development of convention centers within this Commonwealth, it is necessary to provide additional and flexible means of developing, constructing, designing, managing, financing and operating convention centers. (9) An important aspect of the development of convention centers should be the removal and redevelopment of blighted areas. (b) Declaration of policy.--It is declared to be the policy of the Commonwealth to promote the health, safety, employment, business opportunities and general welfare of the people of this Commonwealth by providing for the creation of third class county convention center authorities which exist and operate as public instrumentalities of the Commonwealth for the public purpose of promoting, attracting, stimulating, developing and expanding business, industry, commerce and tourism in this Commonwealth. The purpose is declared to be a public purpose supporting the enactment of this subchapter for which public money may be spent and taxes may be imposed. (c) Scope.-- (1) This subchapter shall apply to counties of the third class. (2) This subchapter may not apply to: (i) A county which has created, either individually or jointly with its county seat, a third class county convention center authority under this subchapter or the former act of December 27, 1994 (P.L.1375, No.162), known as the Third Class County Convention Center Authority Act, prior to January 1, 2000. (ii) A county which is served, together with one or more other counties, by a joint planning commission. (d) Option.--The following shall apply: (1) A county which has created, either individually or jointly with its county seat, a third class county convention center authority under Subchapter A (relating to third class county convention center authorities) after January 1, 2000, may opt to have the authority treated as having been organized under the provisions of this subchapter. The option shall be exercised by the adoption of a resolution by the governing body of the county. The exercise of the option under this paragraph may not be revoked. (2) If an authority is organized under paragraph (1), the following transitional provisions shall apply to the authority, the county, the county seat, State public bodies and political subdivisions: (i) all acts of the authority shall be considered granted under the authority of this subchapter, regardless of whether the acts were taken prior to or after December 18, 2000; (ii) all acts of the county and, if applicable, the county seat in organizing the authority shall be considered granted under the authority of this subchapter, regardless of whether the acts were taken prior to or after December 18, 2000; (iii) all acts of the county taken or purported to be taken under the authority of Subchapter A, including the enactment of a hotel room rental tax, shall be considered granted under the authority of this subchapter, regardless of whether the acts were taken prior to or after December 18, 2000; and (iv) all acts with respect to the authority of a State public body or a political subdivision taken or purported to be taken under the authority of Subchapter A, including the transfer of existing convention center facilities to the authority and the funding of a convention center project as a redevelopment assistance project by the Commonwealth, shall be considered granted under the authority of this subchapter, regardless of whether the acts were taken prior to or after December 18, 2000. (3) If an authority is organized under paragraph (1), all acts taken or purported to be taken by the county, the county seat, the authority and State public body or any political subdivision under the authority of Subchapter A are ratified and affirmed in their entirety, regardless of whether the acts were taken prior to or after December 18, 2000. (4) If an authority is organized under paragraph (1), the members of the board of the authority shall continue in office and shall be treated as if they had been appointed under this subchapter.

16 Pa.C.S. § 17333 Definitions.

The following words and phrases when used in this subchapter shall have the meanings given to them in this section unless the context clearly indicates otherwise: "Authority." An agency and public instrumentality of the Commonwealth and a body politic and corporate created under this subchapter. "Board." The governing body of an authority. "Bonds." Notes, bonds, refunding notes and bonds, interim certificates, debentures and other evidence of indebtedness or obligations which the authority may issue. "Construct." The acquisition, design, erection, extension, renovation, rehabilitation, conversion, furnishing, fixturing, equipping, enlargement or substantial repair of a convention center or part of a convention center and activities substantially related to the acquisition, design, erection, extension, renovation, rehabilitation, conversion, furnishing, fixturing, equipping, enlargement or substantial repair of a convention center or part of a convention center. "Convention center." The following: (1) Any land, improvement, structure or building or property interest, whether owned or acquired by or leased by or to an authority, appropriate for any of the following: (i) Large public assemblies. (ii) Holding of conventions, conferences, trade exhibitions and other business. (iii) Social, cultural, scientific, sports, recreational, artistic and public interest events. (iv) Performances and exhibitions. (2) Facilities, furniture, fixtures and equipment necessary or incident to an item listed under paragraph (1), including, but not limited to: (i) hotels, including meeting rooms, dining rooms, kitchens, ballrooms, reception areas, registration and prefunction areas, locker rooms, practice areas and equipment, training areas and equipment and truck loading areas, including access to the truck loading areas; (ii) accessways, including tunnels, overhead walkways, escalators, elevators and other connections to nearby or adjoining buildings or facilities, regardless of whether the buildings or facilities constitute convention center facilities or are owned or controlled by the authority; (iii) common areas, lobbies, offices and areas appurtenant to any of the items listed under this paragraph; and (iv) other land, buildings, structures or facilities for use or planned for use in conjunction with the items listed under this paragraph, including, but not limited to, landscaping, buffer areas, off-street parking, retail areas and other improvements related to a convention center facility owned by or leased by or to an authority, regardless of whether the improvements are for the purpose of producing revenues to assist in defraying the costs or expenses of the convention center facility. "Cost of a project." The following: (1) All or any part of the cost of construction, acquisition, alteration, enlargement, furnishing, fixturing and equipping, reconstruction and rehabilitation of a convention center project. (2) An item listed under paragraph (1) shall include the cost of: (i) all lands, structures, real or personal property, rights, rights-of-way, roads, franchises, easements and interests acquired or used for or in connection with a project; (ii) demolishing or removing buildings or structures on land acquired, including the cost of acquiring lands to which the buildings or structures may be moved or located; (iii) all utility lines; (iv) structures or equipment; (v) charges and interest prior to, during and after completion of construction and acquisition; (vi) provisions for reserves for principal and interest and for extensions, enlargements, additions and improvements; (vii) architectural, engineering, financial and legal services; (viii) plans, specifications, studies, surveys, estimates of cost and revenues; (ix) expenses necessary or incident to determining the feasibility or practicability of constructing the project; (x) other capital cost or expense as may be necessary or incident to the construction, development and acquisition of the project; and (xi) the financing of construction, development and acquisition and the placing of the project in operation, including, without limitation, a proper allowance for contingencies and the provision of reasonable initial working capital for operating the project. "County." A county of the third class or a county which was a county of the third class at the time the county took action to create an authority under this subchapter. "Obligee." A bondholder or a trustee for a bondholder party to a contract with the authority. "Political subdivision." A governmental body other than a State public body or a Federal agency. The term includes a county, city, borough, township, school district, municipal authority, transit authority, parking authority or other authority of any type. "Project." A site, building, structure, equipment, furnishing and other facilities or undertaking in respect of a convention center facility which the authority may acquire, construct, improve, install, maintain or operate under the provisions of this subchapter. "State public body." The Commonwealth and its executive, administrative and independent agencies, departments, officers, boards, authorities, commissions and instrumentalities. "Substantial completion." Construction that is sufficiently completed in accordance with contract documents and certified by the convention center authority's architect or engineer, as modified by change orders so that any project being constructed by the convention center authority can be used, occupied or operated for its intended use. In no event shall a project be certified as substantially complete until at least 90% of the work on the project area is completed.

16 Pa.C.S. § 17334 Authority creation.

(a) General rule.--The following shall apply: (1) The governing bodies of a third class county and the political subdivision constituting the county seat or the county acting alone may create a body corporate and politic to be named the ....... County Convention Center Authority to be created as a public authority and government instrumentality to have continuing succession until its existence shall be terminated by law. (2) If any part of the convention center facilities constructed by an authority created under this subchapter shall be located within the jurisdictional limits of the county seat of the county, the authority shall be a joint authority of the county and the county seat. If the convention center facilities of an authority are located entirely outside the jurisdictional limits of the county seat of the county, the authority may be created solely by the county. (3) The exercise by the authority of the powers conferred by this subchapter is declared to be an essential public function. (b) Adoption.--An authority shall be created by an ordinance or equivalent enactment, adopted by the county or, for a joint authority, ordinances or equivalent enactments, adopted by the county and the county seat providing that an authority is created under this subchapter and specifying the articles of incorporation of the authority. The articles of incorporation shall be filed by the county with the Secretary of the Commonwealth, who shall issue a certificate of incorporation to the authority. The authority shall be deemed to come into existence on the later of the following dates: (1) the date on which the ordinance is enacted, or, for a joint authority, on the date that the second ordinance is enacted; or (2) a later date as may be specified in the articles of incorporation. (c) Amendment.--Articles of incorporation of an authority may only be amended in the manner specified above for the adoption of articles of incorporation and may not: (1) impair the rights or security of any creditors of the authority or any party contracting with the authority; or (2) be inconsistent with the provisions of this subchapter.

16 Pa.C.S. § 17335 Purpose and powers of authorities.

(a) Purposes.--An authority created under this subchapter shall be a public body, corporate and politic, exercising public powers of the Commonwealth as an agency and instrumentality and shall be for the purpose by itself or by agreement in cooperation with others, of acquiring, holding, developing, designing, constructing, improving, maintaining, managing, operating, financing, furnishing, fixturing, equipping, repairing, leasing or subleasing, either in the capacity of lessor or lessee or sublessor or sublessee, and owning convention centers or parts of convention centers. The convention centers shall not be required to comprise a single, integrated complex but may be located at one or more locations within the county and may function independently of one another. (b) Powers.--The authority is granted all powers necessary or convenient for carrying out the purposes in subsection (a), including, without limiting the generality of the foregoing, the right and power to: (1) Have continuing succession. (2) Sue and be sued, implead and be impleaded, complain and defend in all courts. (3) Adopt, use and alter at will a corporate seal. (4) Acquire by gift or otherwise purchase, hold, receive, lease, sublease and use a license, franchise or property, real, personal or mixed, tangible or intangible, or any interest therein, including convention center facilities, or parts thereof, and to assume any obligations associated therewith, including leases, concession agreements, indebtedness and other contractual obligations which the authority deems necessary to accomplish the purpose of this subchapter. (5) Sell, transfer or dispose of property or an interest in the property with adequate and fair consideration. (6) Acquire, hold, develop, design, construct, improve, maintain, manage, operate, furnish, fixture, equip, repair, own, lease or sublease convention centers, or parts of convention centers, and to make, enter into and award contracts with any person, association, partnership or corporation for the development, design, financing, construction, improvement, maintenance, operation, management, furnishing, fixturing, equipping and repair of convention centers or parts of convention centers. (7) Make bylaws for the management and regulation of authority affairs and issue rules, regulations and policies in connection with the performance of its functions and duties. (8) Appoint officers, agents, employees and servants to prescribe their duties and to fix compensation. (9) Fix, alter, charge and collect rentals, admissions, license fees and other charges. (10) Do the following: (i) Borrow money for the purpose of paying the costs of a project and to evidence the same. (ii) Make and issue negotiable bonds of the authority. (iii) Secure payment of the bonds or any part of a bond, by pledge or deed of trust of authority revenues, including any hotel room rental tax, rentals, receipts and contract rights. (iv) Make agreements with the purchasers or holders of the bonds or with other obligees of the authority in connection with the bonds, whether issued or to be issued, as the authority shall deem advisable, which agreements shall constitute contracts with the holders or purchasers. (v) Obtain credit enhancement or liquidity facilities in connection with the bonds as the authority determines advantageous. (vi) In general, provide for the security of the bonds and the rights of the bondholders. (11) Make, enter into and award contracts and to execute all instruments necessary or convenient for the carrying out of its business. (12) Borrow money and accept grants and to enter into contracts, leases, subleases, licenses or other transactions with a Federal agency, State public body, political subdivision, person, association, partnership or corporation. (13) Pledge, hypothecate or otherwise encumber authority property, real, personal or mixed, tangible or intangible, and its revenues or receipts, including interest the authority may have in a lease or sublease of convention centers or parts of convention centers. (14) Procure insurance containing coverages, including insurance covering the timely payment in full of principal of and interest on bonds of the authority, in amounts and from insurers as the authority determines necessary or desirable. (15) Invest authority money. (16) Cooperate with a Federal agency, State public body or political subdivision. (17) Invest money held in reserve or sinking funds or money not required for immediate disbursements as authorized by section 17343(d) (relating to money of authority). (18) Appoint all officers, agents and employees required for the performance of its duties and compensation and retain or employ other agents or consultants, including architects, auditors, engineers, private legal counsel and private consultants, on a contract basis or otherwise for rendering professional or technical services and advice. (19) Enroll authority employees in an existing retirement system of the State, county, city or other governmental entity. (20) Appoint and fix the compensation of chief counsel and assistant counsel to provide the authority with legal assistance, and the authority, through counsel, shall defend actions brought against the authority and authority officers and employees if acting within the scope of official duties. (21) Maintain an office in the county seat. (22) Appoint an executive director who shall: (i) be the chief executive officer of the authority; (ii) devote his or her full time during business hours to the duties of the office; and (iii) receive compensation as the board shall determine. (23) Make grants to the county in accordance with the provisions of subsection (e). (24) Do all acts and things necessary or convenient for the promotion of its purposes and the general welfare of the authority and to carry out the powers granted to the authority by this subchapter or any other act. (c) Prohibitions.--The following apply: (1) The authority shall have no power to pledge the credit or taxing powers of a State public body, a political subdivision or the county, nor shall authority obligations be deemed obligations of any State public body, a political subdivision or the county and a State public body, a political subdivision or the county shall not be liable for the payment of principal or interest on such obligations. (2) The authority shall have no power of eminent domain. (d) Affirmative action plan.--The authority shall develop and implement an affirmative action plan to assure that all individuals are accorded equality of opportunity in employment and contracting by the authority and authority contractors, subcontractors, assignees, lessees, agents, vendors and suppliers. (e) Grants.--The following apply: (1) The authority shall have the power to make grants to the county for the financial support of regional assets located within the county. Grants made under this subsection shall be included in the capital budget adopted by the authority under section 17336(a) (relating to capital and operating budgets) and may only be made if the authority finds, by resolution adopted by a majority vote of authority members, that the making of such grants shall not adversely affect the short-term or long-term capital, operational or financial needs of the authority or otherwise impair the ability of the authority to meet any contractual or legal obligations of the authority, including obligations owed to bondholders issued by the authority. Grants made under the authority of this paragraph: (i) may not obligate money of the authority beyond a single fiscal year of the authority; (ii) shall be payable to the county in a single lump sum or in installments during the fiscal year in question, as determined by the authority; and (iii) may be rescinded or reduced by the authority if the authority, prior to payment of the grant, determines that the current or projected financial needs of the authority require reduction or rescission of the grant. (2) Grants received by the county from the authority under paragraph (1) shall be deposited into a segregated account identified as the regional asset fund. The regional asset fund shall be used by the county solely for the purpose of making grants of financial support to regional assets located within the county in accordance with and subject to the limitations of this subsection. Money deposited into the regional asset fund shall be invested only in those types of investments in which a county of the third class may invest general money of the county under applicable law. Earnings on the investments shall become a part of the regional asset fund and may not be used for purposes other than those permitted under this subsection. The county shall not be required to disburse all of the money in the regional asset fund during a particular fiscal year but may accumulate money within the regional asset fund if the county determines that the accumulation of the money, in whole or in part, is appropriate for the effective and efficient long-term funding of regional assets. (3) The county shall have the authority to make grants of financial support for regional assets from the regional asset fund established under paragraph (2). Grants made by the county from the regional asset fund shall be subject to all of the following terms, conditions and limitations: (i) grants may only be made to: (A) political subdivisions located within the county; and (B) organizations which have been determined by the Internal Revenue Service to be organizations described in section 501(c)(3) of the Internal Revenue Code of 1986 (Public Law 99-514, 26 U.S.C. § 501(c)(3)) or any successor provision of law; (ii) grants may only be made for the purpose of supporting a specific regional asset located within the county and which is owned by the grantee or for which the grantee has operational and financial responsibility; (iii) grants may only be made pursuant to written grant agreements and executed by authorized officers of the county and the grantee specifying the terms and conditions of the grant; (iv) the grant agreement shall describe, with specificity, the purpose for which the grant is being made; (v) the grant agreement shall set forth other terms and conditions as the county may prescribe, including requirements with respect to matching funds and continued financial support of the grantee for the regional asset with respect to which the grant is being made; and (vi) no grant may obligate money from the regional asset fund beyond a single 12-month period. (4) For purposes of this subsection, the term "regional asset" means a civic, recreational, sports or cultural facility, including zoos, museums and performing arts facilities, function or activity which is owned or provided by a political subdivision or section 501(c)(3) of the Internal Revenue Code of 1986 organization, or with respect to which a political subdivision or section 501(c)(3) of the Internal Revenue Code of 1986 organization has operational and financial responsibility. Notwithstanding the foregoing, the following may not be considered regional assets: (i) a health care facility; (ii) an institution which predominantly provides elementary, secondary or higher education or other training; (iii) a Federal or State park; (iv) an airport or public transportation system or facility; (v) a library; (vi) a paid or volunteer public safety organization and facility; (vii) an authority created under this subchapter and any facilities owned or operated by such an authority; or (viii) an asset which fails to serve a significant number of individuals who are not residents of the city, borough or township within which the asset is located. (5) The county shall have the authority to prescribe reasonable rules, regulations and procedures for: (i) the administration of the regional asset fund and the segregated account in which the regional asset fund is deposited; (ii) the making of grants from the regional asset fund; and (iii) the administration of grants made from the regional asset money. (f) Naming or designation revenue.--Net revenues received from the sale of rights for the naming or designation of a convention center or part of a convention center shall be allocated as follows: (1) Fifty percent of revenues shall be distributed to the county for deposit into a segregated account identified as the regional asset fund to be utilized as provided in subsection (e)(3). (2) Fifty percent of revenues shall be retained by the convention center authority established under this subchapter. (g) Application.--Subsection (f) may not apply to a sale of rights occurring prior to the enactment of this subchapter. Revenues from the sale of naming rights for items of a de minimis nature, including the sale of plaques, individualized bricks or furniture, may not be subject to allocation under this section. Cross References. Section 17335 is referred to in section 17352 of this title.

16 Pa.C.S. § 17336 Capital and operating budgets.

(a) Capital budget.--At least 90 days before the commencing of the ensuing fiscal year of the authority, a recommended capital budget shall be prepared and submitted to the board. The capital budget shall show in detail the capital expenditures to be made or incurred in the next fiscal year which are to be financed from money subject to control or appropriation by the board. For each separate purpose, project, facility or other property, the amount and the source of the money that has been spent, encumbered or is intended to be spent or encumbered during the fiscal year shall be shown. No later than the date of the adoption of the annual operating budget, the board shall by a majority vote of its members adopt a capital budget. (b) Operating budget.--At least 90 days before the commencing of the ensuing fiscal year of the authority, a recommended operating budget shall be prepared and submitted to the board. The operating budget shall be prepared with the aid of the governing bodies of the county and county seat. In the event that the operating budget is not in form and detail satisfactory to the governing body, the governing body may require that the operating budget be redrafted and resubmitted, and the governing body shall not be considered to be in receipt of the operating budget or any amendments unless the form and detail is to the governing body's satisfaction. The operating budget shall set forth the estimated receipts and revenues of the authority during the next fiscal year. The board shall, at least 30 days before the end of the fiscal year, adopt by a majority vote of its members an operating budget for the next fiscal year. Cross References. Section 17336 is referred to in section 17335 of this title.

16 Pa.C.S. § 17337 Authority to issue bonds.

(a) Bonds generally.--The bonds of an authority created under this subchapter and authorized to be issued: (1) Shall be authorized by resolution of the board of the authority and shall be of a series, bear a date, mature at a time not exceeding 40 years from the respective date, bear interest at a rate as shall be determined by the board as necessary to issue and sell the authorized bonds, be in denominations, be in a form, either coupon or fully registered without coupons, carry registration, exchangeability and interchangeability privileges, be payable in a medium of payment and at a place, be subject to terms of redemption and be entitled to priorities in the revenues or receipts of the authority as the resolution may provide. (2) Shall be signed by or shall bear the facsimile signatures of officers as the authority shall determine, and coupon bonds shall have interest coupons bearing the facsimile signature of the treasurer of the authority attached to the bond, and all bonds shall be authenticated by an authenticating agent, fiscal agent or trustee, as may be prescribed in the resolution. (3) May be issued and delivered regardless of whether one or more of the officers who signed the bonds or the treasurer who, by facsimile, signed the coupon are not officers when the bonds are delivered. (b) Sale.--The bonds may be sold at public sale or private negotiated sale for a price or prices and at a rate of interest as the authority determines. Pending the preparation of the definitive bonds, interim receipts may be issued to the purchaser or purchasers of the bonds and may contain terms and conditions as the authority may determine. (c) Negotiable instrument.--The bonds shall have the qualities of negotiable instruments under 13 Pa.C.S. (relating to commercial code). (d) Proceeds.--The net proceeds of the issuance of bonds or notes may be used to pay the costs of a project or to reimburse costs initially paid by a State public body, the county, another political subdivision, an agency, an organization or an individual. (e) Refund.--The following apply: (1) Subject to the provisions of the outstanding bonds, notes or other obligations and subject to the provisions of this subchapter, the authority shall have the right and power to refund outstanding debt, in whole or in part, at any time and shall have the right and power to refund outstanding notes with bonds or bonds with notes. (2) As used in this subsection, the term "refund" means the issuance and sale of obligations the proceeds of which are used or are to be used for the payment or redemption of outstanding obligations upon or prior to maturity.

16 Pa.C.S. § 17338 Provisions of bonds, trusts, indentures and mortgages.

In connection with the issuance of bonds or the incurring of obligations under leases and in order to secure the payment of such bonds and obligations, the authority, in addition to other powers, shall have the power to: (1) Pledge all or part of the gross or net revenues of the authority to which its right exists or may thereafter exist. (2) Mortgage all or part of the authority's real or personal property owned or acquired. (3) Do the following: (i) Covenant against pledging all or part of the authority's revenues or against mortgaging all or part of the authority's real or personal property to which the right or title exists or may thereafter exist or against permitting or suffering a lien on the revenues or property. (ii) Covenant with respect to limitations on the authority's right to sell, lease or otherwise dispose of real property. (iii) Covenant as to what other or additional debts or obligations may be incurred by it. (4) Do the following: (i) Covenant as to the bonds to be issued and as to the issuance of the bonds, in escrow or otherwise, and as to the use and disposition of the proceeds. (ii) Provide for the replacement of lost, destroyed or mutilated bonds. (iii) Covenant against extending the time for the payment of authority bonds or interest. (iv) Redeem the bonds and to covenant for and provide the terms and conditions for bond redemption. (5) Do the following: (i) Covenant as to the amount and the use and disposition of revenues to be raised each year or other period of time by the authority. (ii) Create or authorize the creation of special funds for debt service or other purposes. (iii) Covenant as to the use and disposition of the money held in funds under subparagraph (ii). (6) Prescribe the procedure, if any, by which the terms of a contract with bondholders may be amended or abrogated, the amount of bonds, with the consent of the bondholders, and the manner in which consent may be given. (7) Do the following: (i) Covenant as to the use of the authority's real or personal property. (ii) Warrant title of the property. (iii) Covenant as to the maintenance and replacement of its real and personal property, the insurance to be carried on the property and the use and disposition of insurance money. (8) Do the following: (i) Covenant as to the rights, liabilities, powers and duties arising upon the breach by the authority of any covenant, condition or obligation. (ii) Covenant and prescribe in the event of default as to terms and conditions upon which the authority's bonds or obligations shall become or may be declared due before maturity and as to the terms and conditions upon which the declaration and the authority's consequences may be waived. (9) Do the following: (i) Vest in a trustee or the bondholders the right to enforce the payment of the bonds or any covenants securing or relating to the bonds. (ii) Vest in a trustee the right in the event of a default by the authority to take possession and use, operate and manage any real property and to collect the rents and revenues arising from the property and to dispose of the money in accordance with the agreement of the authority with the trustee. (iii) Provide for the powers and duties of a trustee and to limit the trustee's liabilities. (iv) Provide the terms and conditions upon which the trustee or the bondholders may enforce covenants or rights securing or relating to the bonds. (10) Obtain letters of credit and bond insurance. (11) Do the following: (i) Exercise all or any part or combination of the powers granted in this section. (ii) Make covenants and perform acts necessary, convenient or desirable to secure bonds or, in the absolute discretion of the authority, to accomplish the purposes of this subchapter by making the bonds more marketable regardless of whether the covenants or acts are specifically enumerated under this section.

16 Pa.C.S. § 17339 Remedies of obligee of authority.

An obligee of the authority shall have the right, in addition to all other rights which may be conferred on the obligee, subject only to any contractual restrictions binding upon the obligee: (1) By mandamus, suit, action or proceeding at law or in equity, to compel the authority and authority members, officers, agents or employees to perform each and every term, provision and covenant contained in any bond or contract of the authority with or for the benefit of the obligee and to require the carrying out of covenants and agreements of the authority and the fulfillment of all duties imposed upon the authority by this subchapter. (2) By proceeding in equity, to obtain an injunction against any acts or things which may be unlawful or the violation of any of the rights of the obligee.

16 Pa.C.S. § 17340 Additional remedies conferrable by authority.

(a) General rule.--The authority shall have the power by resolution, trust, indenture or mortgage to confer upon any obligees holding or representing a specified percentage of bonds the right, in addition to all rights that may otherwise be conferred, upon the happening of an event of default as defined in the resolution or instrument, by suit, action or proceeding in a court of competent jurisdiction to: (1) obtain the appointment of a receiver of any real property or leasehold interest of the authority and of the rents and profits from the property. If a receiver is appointed, the receiver may enter and take possession of the real property or any leasehold interest, operate the real property or leasehold interest and collect and receive all revenues or other income arising from the operation and shall keep the money in a separate account and apply the same in accordance with the obligations of the authority as the court shall direct; or (2) require the authority and its members to account as if the authority and authority members were the trustees of an express trust. (b) Prohibition.--For the purpose of operating and maintaining facilities of the authority, nothing in this subchapter shall authorize a receiver appointed under this subchapter to sell, assign, mortgage or otherwise dispose of authority assets. It is the intention of this subchapter to limit the powers of the receiver to the operation and maintenance of the facilities of the authority as the court directs, and the following apply: (1) Receivers may not sell, assign, mortgage or otherwise dispose of any assets of the authority. (2) Bondholders, trustees and other obligees do not have the right in any suit, action or proceeding, at law or in equity, to compel a receiver to sell, assign, mortgage or otherwise dispose of any assets of the authority. (3) A court may not direct a receiver to sell, assign, mortgage or otherwise dispose of any assets of the authority.

16 Pa.C.S. § 17341 Governing board.

(a) Composition.--The power of the authority shall be exercised by a governing board composed of 11 members appointed as follows: (1) The mayor or, if there is no mayor, the governing body of the municipality in which a convention center is located shall appoint two members. Subject to subsection (b), the terms of the first two members appointed shall be for a two-year and four-year term, respectively. In all cases, the beginning of the term shall be January 1 of the year of appointment, subject to subsection (b). (2) The county council or, if there is no county council, the governing body of the county in which a convention center is located shall appoint seven members. Subject to subsection (b), the beginning of the term shall be January 1 of the year of appointment. The terms of the first seven members appointed shall be allocated as follows: (i) One one-year term. (ii) Two two-year terms. (iii) Two three-year terms. (iv) Two four-year terms. (3) Two members shall be appointed by the Governor with the advice and consent of a majority of the members of the Senate. (b) Terms.--Except as otherwise provided and subject to subsection (a), members shall serve a four-year term from the date of appointment and until their successors have been appointed and qualified. If a vacancy occurs by death, disqualification, resignation or removal of a member, the appointing authority shall appoint a successor to fill the unexpired term. (c) Compensation.--The members of the board may not be compensated for service on the board or for any other position in which the members may serve the authority. The authority may reimburse members for reasonable and necessary out-of-pocket expenses incurred by members in carrying out the business of the authority. (d) Powers and duties.-- (1) The following shall apply: (i) The members of the board shall select a chairperson and other officers as the board determines from among the members. (ii) Except as otherwise provided, all actions of the board shall be taken by a vote of at least six members of the board, which shall constitute a majority of the board, unless the bylaws of the authority provide for a majority vote by a present quorum of not less than six members in the absence of a full board. (iii) The board shall have full authority to manage the properties and business of the authority and to prescribe, amend and repeal bylaws, rules and regulations governing the manner in which the business of the authority may be conducted and the powers granted to the authority may be exercised and embodied. Notwithstanding any other law, court decision, precedent or practice to the contrary, no actions by or on behalf of the board shall be taken by an officer of the board or the authority except upon the approval or prior authorization of the board. (iv) As used in this subsection, the term "actions by or on behalf of the board" means any action of the board, including the hiring, appointment, removal, transfer, promotion or demotion of any officers and employees, the retention, use or remuneration of advisors, counsel, auditors, architects, engineers or consultants, the initiation of legal action, the making of contracts, leases, agreements, bonds, notes or covenants, the approval of requisitions, purchase orders, investments and reinvestments and the adoption, amendment, revision or rescission of rules and regulations, orders or other directives. (2) The board shall appoint an executive director who shall act as the chief executive officer of the authority. The executive director shall not be a member of the board. Notwithstanding the provisions of paragraph (1), the board may, by bylaw or by resolution, delegate to the executive director the authority and power to carry out the day-to-day operations of the authority and to exercise those powers which are normal, customary and necessary to perform the duties of a chief executive officer. (3) The board may appoint an assistant and other officers, including assistant secretaries and assistant treasurers, as the board determines to be appropriate to carry out the business of the authority. Assistant secretaries and assistant treasurers may be members of the board. (4) The board may appoint one or more deputy executive directors who, to the extent authorized by the board, may exercise the duties and powers of the executive director in the executive director's absence or incapacity or in the event of a vacancy in the office of executive director. (e) Liability.--Members of the board may not be held personally liable for the bonds or other obligations of the authority, and the rights of creditors shall be solely against the authority. The authority shall defend board members and the authority shall indemnify and hold harmless board members, whether currently serving as a member of the authority, against and from personal liabilities, actions, causes of action and claims made against them for actions performed within the scope of board member duties.

16 Pa.C.S. § 17342 Sovereign immunity.

The following apply: (1) An authority created under this subchapter, and the authority's officers, officials and employees, shall have sovereign and official immunity, as provided under 1 Pa.C.S. § 2310 (relating to sovereign immunity reaffirmed; specific waiver). (2) An authority created under this subchapter, and the authority's officers, officials and employees, shall remain immune from suit, except as provided by and subject to 42 Pa.C.S. §§ 8501 (relating to definitions), 8502 (relating to enforcement proceedings), 8521 (relating to sovereign immunity generally), 8522 (relating to exceptions to sovereign immunity), 8523 (relating to venue and process), 8524 (relating to defenses), 8525 (relating to legal assistance), 8526 (relating to counterclaim by the Commonwealth), 8527 (relating to indemnity relating to inmate health care) and 8528 (relating to limitations on damages). (3) Notwithstanding 42 Pa.C.S. § 8525, the authority, through the authority's counsel, shall defend actions brought against the authority and the authority's officers and employees when acting within the scope of the officers and employees' official duties.

16 Pa.C.S. § 17343 Money of authority.

(a) Payment of money.--All money of the authority shall be paid to the treasurer of the authority or other officer or officers of the authority as the authority may designate. (b) Duty of board.--The board shall invest authority money consistent with sound business practice. (c) Investment program.--The board shall provide for an investment program subject to restrictions contained in this subchapter, in any other applicable statute and in rules and regulations adopted by the board. (d) Authorized investments.--The following shall apply: (1) Authorized types of investments for authority money shall be: (i) Direct obligations of or obligations guaranteed by the United States. (ii) A bond, debenture, note, participation certificate or other similar obligation issued by any one or combination of the following agencies: (A) Government National Mortgage Corporation. (B) Federal Land Banks. (C) Federal Home Loan Banks. (D) Federal Intermediate Credit Banks. (E) Banks for Cooperatives. (F) Tennessee Valley Authority. (G) United States Postal Service. (H) Farmers Home Administration. (I) Student Loan Marketing Association. (J) Export-Import Bank of the United States. (iii) A bond, debenture, note, participation certificate or other similar obligation issued by the Federal National Mortgage Corporation to the extent the obligations are guaranteed by the Government National Mortgage Corporation or issued by another Federal agency and backed by the full faith and credit of the United States. (iv) Deposits in interest-bearing time deposits, demand deposits or certificates of deposit fully insured by the Federal Deposit Insurance Corporation or its successors or the Federal Savings and Loan Insurance Corporation or its successors or fully secured by any of the obligations described in this paragraph to the extent not so insured. (v) Repurchase agreements relating to, or investment agreements secured by or providing for the acquisition of and, if applicable, resale of, obligations described in subparagraphs (i), (ii), (iii) and (iv) or obligations of the Federal Home Loan Mortgage Corporation or the Federal National Mortgage Association with: (A) banks or trust companies, which may include a banking entity or depository; (B) brokers or broker-dealers registered under the Securities Exchange Act of 1934 (48 Stat. 881, 15 U.S.C. §§ 78a-78jj) acceptable to the authority; or (C) insurance companies rated A+ or better by Best's and having a net capital and surplus of at least $25,000,000 or certificates of deposit with banks or trust companies fully secured as to principal and accrued interest by obligations described in subparagraphs (i), (ii), (iii) and (iv) deposited with or subject to the control of the authority. (vi) Money market deposit accounts of banks or trust companies having a net capital and surplus of at least $25,000,000, which may include a banking entity or depository. (2) The description of authorized investments as set forth in paragraph (1)(v) and (vi) shall be met only if the agreements referenced provide for the repayment of the principal amount invested at an amount not less than the amount invested. If a security is required as set forth in paragraph (1)(iv), (v) and (vi), the security shall be deposited with the treasurer of the authority or be held by a trustee or agent satisfactory to the authority. Money of the authority shall be paid out on the warrant or other order of the chairperson of the authority or of other individuals as the authority may authorize to execute warrants or orders. (e) Reports.--The following shall apply: (1) An authority created under this subchapter shall file an annual report with the Department of Community and Economic Development and with the county and political subdivision constituting the county seat, which shall make provisions for the accounting of revenues and expenses. Authority books, accounts and records shall be audited annually in accordance with generally accepted auditing standards by an independent auditor who shall be a certified public accountant, and a copy of the audit report shall be attached to and be made a part of the annual report. A concise financial statement shall be published annually in a newspaper of general circulation in the county in which the authority is located. (2) An authority created under this subchapter shall, upon request by the county or the political subdivision constituting the county seat, file a report with the requesting entity listing the names of authority employees and the amount of compensation received by each employee, the names of authority independent contractors and the amount of remuneration received by the employees and the names of any providers of professional services and the value of the contracts for professional services. (f) Right of examination.--The Attorney General, Auditor General, Secretary of the Budget, the chairperson and minority chairperson of the Appropriations Committee of the Senate and the chairperson and minority chairperson of the Appropriations Committee of the House of Representatives shall have the right to examine the books, accounts and records of the authority. Cross References. Section 17343 is referred to in section 17335 of this title.

16 Pa.C.S. § 17344 Transfer of existing facilities or money and making of annual grants and lease payments to authority.

(a) Transfer.-- (1) A State public body or political subdivision may sell, lease or sublease from or to, lend, grant, convey or otherwise transfer or pay over to the authority, with or without consideration, a convention center or part of a convention center, or an interest in property, real, personal or mixed, tangible or intangible, or any money available, needed or obligated for development, acquisition, design, maintenance, management, operation, financing, leasing or subleasing, construction or improvement purposes, including the proceeds of bonds issued for construction or improvement of a convention center or part of a convention center. (2) Property, money, a convention center or part of a convention center received by the authority may be used for any lawful purpose of the authority. Nothing in this subchapter or any other law shall be deemed to make an authority or person a State-supported or State-aided institution under the laws of this Commonwealth. (b) Grants.-- (1) Subject to paragraph (2), the governing bodies of the county and county seat may: (i) Make grants from current revenues to the authority. (ii) Assist in defraying the costs of management, operation, maintenance, financing and debt service of convention center facilities or parts of facilities. (iii) Enter into long-term agreements providing for the payment of the grants and assistance under subparagraphs (i) and (ii). (iv) Enter into long-term leases or subleases as lessee or sublessee of convention centers or parts of convention centers. (2) Obligations of the county and county seat to make grants, lease or sublease payments to an authority may not, even if based on debt obligations of an authority, constitute debts of the county and county seat within the meaning of any constitutional or statutory provision and shall be payable only to the extent that current revenues of the county and county seat are available. (3) The county and county seat may issue general obligation bonds for the purpose of obtaining money for local contributions pertaining to convention centers or parts of convention centers. (c) Bonds.--The Commonwealth may contribute to the capital costs of constructing a convention center by the issuance of Commonwealth bonds and notes under Chapter 3 of the act of February 9, 1999 (P.L.1, No.1), known as the Capital Facilities Debt Enabling Act. A convention center project undertaken by the authority is deemed to be a redevelopment assistance project for which capital money of the Commonwealth may be expended under the act of May 20, 1949 (P.L.1633, No.493), known as the Housing and Redevelopment Assistance Law, and, notwithstanding any provisions of the Housing and Redevelopment Assistance Law, the Department of Community and Economic Development may make capital grants directly to the authority in furtherance of this subchapter.

16 Pa.C.S. § 17345 Award of contracts.

(a) Bids.-- (1) All construction, reconstruction, repairs or work of any nature made by the authority in which the entire cost, value or amount exceeds the adjusted base amount under section 15101(a) (relating to commissioners sole contractors for county generally) for which bids are required for counties shall be approved only under contract. (2) For a contract under paragraph (1), the authority shall: (i) provide public notice to solicit competitive bids as provided under this section; and (ii) enter into the contract with the lowest responsible bidder. (3) The authority shall have the right to reject any bid or select a single item from any bid in accordance with paragraph (2). (b) Contracts.-- (1) Subsection (a) shall not apply to construction, reconstruction, repairs or work done by employees of the authority or by labor supplied under agreement with a Federal agency, State public body or political subdivision. (2) No contract shall be entered into under subsection (a) for construction, improvement or repair of a project unless the contractor provides sufficient surety approved by the authority in an amount fixed by the authority for the performance of the contract. (3) All contracts entered into under subsection (a) shall provide that the individual or corporation entering into the contract with the authority pay for all materials furnished and services rendered for the performance of the contract and that an individual or corporation furnishing materials or rendering services may maintain an action to recover against its obligor providing materials or services within one year. (4) Nothing in this section shall be construed to limit the power of the authority to construct, repair or improve a project or portion of a project or any addition, betterment or extension of a project directly by the officers and employees of the authority. (5) The authority shall award the construction of a convention center according to the provisions of the act of May 1, 1913 (P.L.155, No.104), referred to as the Separations Act, and shall be subject to 62 Pa.C.S. Pt. I (relating to Commonwealth Procurement Code). (6) Nothing in this section or other law of this Commonwealth shall require the authority to competitively bid architectural design, engineering or other professional services required by the authority. (c) Notice.--The authority shall provide due public notice to receive bids for contracts for supplies and materials that exceed the adjusted base amount under subsection 15101(a) for which bids are required for counties. (d) Accepted bid.--The authority shall accept the lowest bid from a responsible bidder when kind, quality and material is equal, and the following apply: (1) The authority shall have the right to reject any bid or select a single item from a bid. (2) This subsection shall not apply to the purchase of unique supplies and materials or supplies and materials which cannot be obtained in the open market. (e) Convention center facilities.--The board, upon the approval of six members, may negotiate contracts for management, operation, concession services, licensing or leasing of convention center facilities, or any part. The authority shall not award a contract to a manager, operator, concessionaire, licensee, lessee or lessor that exceeds three years in duration unless six members of the board approve the awarding of a contract for a greater period of time. The authority and the authority's contractors, subcontractors, assignees, lessees, agents, vendors and suppliers shall not be subject to county or county seat laws, ordinances, rules or regulations relating to limits or preferences with regard to employment, contracting or procurement in the construction and operation of convention center facilities. (f) Governing law.--The authority shall be subject to the act of August 15, 1961 (P.L.987, No.442), known as the Pennsylvania Prevailing Wage Act, the act of March 3, 1978 (P.L.6, No.3), known as the Steel Products Procurement Act, and 62 Pa.C.S. Ch. 37 Subch. B (relating to motor vehicles). (g) Definitions.--As used in this section, the following words and phrases shall have the meanings given to them in this subsection unless the context clearly indicates otherwise: "Advertisement or public notice." A notice published at least 10 days before the award of a contract in a newspaper of general circulation published in the county. The notice may be waived if the authority determines an emergency exists and supplies and materials must be immediately purchased by the authority. Special Provisions in Appendix. See section 6(3) of Act 14 of 2024 in the appendix to this title for special provisions relating to continuation of prior law.

16 Pa.C.S. § 17346 Interests of public officers, public employees and party officers.

(a) Employment.--Party officers, public officers, public officials, public employees or individuals convicted of an infamous crime may not be employed as a management-level authority employee. (b) Public employees.--The act of July 19, 1957 (P.L.1017, No.451), known as the State Adverse Interest Act, and 65 Pa.C.S. Ch. 11 (relating to ethics standards and financial disclosure) apply to board members, officers and employees of the authority, and the following apply: (1) For the purposes of application of these acts and regardless of compensation, the employees of the authority shall be regarded as public employees and officers or board members of the authority shall be regarded as public officials. (2) The authority shall be subject to the act of February 14, 2008 (P.L.6, No.3), known as the Right-to-Know Law, and to 65 Pa.C.S. Ch. 7 (relating to open meetings). (c) Prohibitions.--Notwithstanding subsection (b), the following prohibitions shall apply to the authority created under this subchapter: (1) A management-level employee or other employee of the authority may not use the employee's position or confidential information received through the employee's position to obtain financial gain other than compensation provided by law for the employee, a member of the employee's immediate family or a personal business. (2) A management-level employee or other employee of the board or a member of the employee's immediate family or a personal business may not solicit or accept anything of value, including a gift, loan, political contribution, reward or promise of future employment, based on an understanding that the vote, official action or judgment of the employee would be influenced. (3) A management-level employee or other employee of the board or a member of the employee's immediate family or a business in which the person or a member of the person's immediate family is a director, officer, owner or holder of stock exceeding 5% of the equity at fair market value of the business may not enter into a contract valued at $500 or more to provide goods or services to the authority unless the contract has been awarded to the lowest responsible bidder through an open and public process, including prior public notice and subsequent public disclosure of all proposals considered and contracts awarded. (4) A former management-level employee or other former employee of the board may not represent a person, with or without compensation, on any matter before the authority with which a former management-level employee or other former employee of the board has been associated for one year after separation from the authority. (5) (i) An individual who is a State, county seat or county public officer or public official or party officer or a member of the individual's immediate family or the individual's personal business may not have a financial interest in a contract valued at $500 or more to provide goods or services to the authority either during the time the individual holds the office or for two years after termination unless the contract is executed under paragraph (3). (ii) For purposes of this paragraph, the term "financial interest" does not include employment by, association with or ownership of a business association unless the public officer, public official, party officer or immediate family member owns shares of stock in the corporation or has an ownership interest in a noncorporate business association in an amount in excess of 5% of the total ownership of the noncorporate business association. (6) A management-level employee, other employee of the board, an advisor or consultant to the county seat, the county or the State, having recommended to the authority either making a contract relating to a convention center authority or a course of action of which the making of the contract is an express or implied part, may not, at any time after making the recommendation, possess an adverse interest in the contract. (7) A management-level employee or other employee may not have an adverse interest in a contract with an authority. The following shall apply: (i) A management-level employee or other employee of the authority, the county seat, the county or the State may not influence or attempt to influence the making of or supervise or in any manner deal with a contract with the authority in which the employee has an adverse interest. (ii) A person having an adverse interest in a contract with the authority may not become a management-level employee or other employee of the authority until the adverse interest has been wholly divested. (8) A management-level employee or other employee of the authority, the county seat, the county or the State, except in the performance of his or her duties as an employee, may not for remuneration, directly or indirectly, represent a person in a matter pending before the authority. (d) Penalties.--An individual who violates this section shall have the individual's employment by the authority immediately terminated by the appropriate person having the power to terminate and shall be liable to the authority to reimburse the authority for all compensation received by the employee from the authority while employed in violation of subsection (b). The following shall apply: (1) An individual who violates subsection (c)(1) or (2) commits a felony and, upon conviction, shall be sentenced to pay a fine of not more than $10,000 or to imprisonment for not more than five years, or both. (2) An individual who violates subsection (c)(3), (4), (5), (6), (7) or (8) commits a misdemeanor and, upon conviction, shall be sentenced to pay a fine of not more than $1,000 or to imprisonment for not more than one year, or both. (3) An individual who obtains financial gain from violating subsection (c), in addition to any other penalty provided by law, shall pay into the accounts of the authority a sum of money equal to three times the financial gain resulting from the violation. (4) An individual who violates subsection (c) shall be barred for a period of five years from engaging in any business or contract with the authority, the county seat, the county, the State and all political subdivisions. (5) An employee of the county seat, county, State or any political subdivision or a public officer or public official who violates subsection (c) shall automatically forfeit the office or employment. (6) The penalties and sanctions under this section shall supersede any similar penalties and sanctions provided by 65 Pa.C.S. Ch. 11 and the State Adverse Interest Act. (e) Definitions.--The following words and phrases shall have the meanings given to them in this section unless the context clearly indicates otherwise: "Business." A corporation, partnership, sole proprietorship, firm, enterprise, franchise, association, organization, self-employed individual, holding company, joint-stock company, receivership, trust or any legal entity organized for profit or as a not-for-profit corporation or organization. "Immediate family." A parent, spouse, child, brother, sister or like relative-in-law. "Infamous crime." A violation and conviction for an offense which would disqualify an individual from holding public office under section 6 of Article II of the Constitution of Pennsylvania or a conviction for a violation of this section, 18 Pa.C.S. § 4113 (relating to misapplication of entrusted property and property of government or financial institutions) or 18 Pa.C.S. Ch. 47 (relating to bribery and corrupt influence), 49 (relating to falsification and intimidation), 51 (relating to obstructing governmental operations) or 53 (relating to abuse of office) or any other violation of the laws of this Commonwealth for which an individual has been convicted within the preceding 10 years and which is classified as a felony, and similar violations of the laws of the Federal Government or another state. "Management-level authority employee." The chairperson and members of the board of the authority, counsel employed by the authority, the executive director of the authority and any authority employee with discretionary powers which may affect the outcome of the authority's decision in relation to a private corporation or business or any employee who by virtue of the employee's job function could influence the outcome of the decision. "Party officer." The following members or officers of a political party: (1) a member of a national committee; (2) a chairperson, vice chairperson, secretary, treasurer or counsel of a State committee or member of the executive committee of a State committee; (3) a city chairperson or vice chairperson or counsel, secretary or treasurer of a city committee; or (4) a county chairperson or vice chairperson or counsel, secretary or treasurer of a county committee. "Person." A business, individual, corporation, union, association, firm, partnership, committee, club or other organization or group of persons. "Public employee." (1) An individual employed by the Commonwealth or a political subdivision who is responsible for taking or recommending official action of a nonministerial nature with regard to: (i) contracting or procurement; (ii) administering or monitoring grants or subsidies; (iii) planning or zoning; (iv) inspecting, licensing, regulating or auditing any person; or (v) any official action which has an economic impact of greater than a de minimis nature on the interest of any person. (2) The term does not include individuals who are independent contractors or persons that are employed by the State or a political subdivision in teaching, as distinguished from administrative duties. "Public officer." An individual elected to any public office of the Commonwealth or a political subdivision. "Public official." (1) An elected or appointed official in the executive, legislative or judicial branch of the State or a political subdivision. (2) The term does not include members of advisory boards that have no authority to expend public money other than reimbursement for personal expenses or to otherwise exercise the power of the State or a political subdivision. (3) The term does not include an appointed official who receives no compensation other than reimbursement for actual expenses.

16 Pa.C.S. § 17347 Use and operation of convention center facilities.

(a) General rule.--The use and operation of a convention center and the operation of the business of the authority shall be subject to the rules and regulations adopted by the authority. (b) Limitation.--The authority may not impair the security of the obligees of the authority, violate any agreements with the obligees or for the obligee's benefit or violate any contracts, leases or other agreements awarded, made or entered into by the authority.

16 Pa.C.S. § 17348 Limitation of powers.

(a) Bonds.--The Commonwealth pledges to and agrees with any: (1) person, county, county seat, political subdivision or Federal agency subscribing to or acquiring the bonds to be issued by the authority for the construction or improvement of a convention center that the Commonwealth will not limit or alter the rights vested in the authority under law in any manner inconsistent with the obligations to the bondholders until all bonds issued, together with the interest, are fully paid and discharged; and (2) Federal agency that in the event that a Federal agency shall construct or contribute money for the construction or improvement of a convention center that the Commonwealth shall not alter or limit the rights and powers of the authority in any manner which would be inconsistent with the due performance of any agreements between the authority and the Federal agency. (b) Leases.--The Commonwealth pledges to and agrees with any person that, as owner, leases or subleases a convention center to or from an authority created pursuant to this subchapter that the Commonwealth will not limit or alter the rights and powers vested in the authority or otherwise created by this subchapter in any manner which impairs the obligations of the authority until all obligations of the authority under the lease or sublease are fully met and discharged.

16 Pa.C.S. § 17349 Exemption from taxation.

(a) Purpose of exemption.--The authorized purposes of authorities created under this subchapter shall in all respects be for the benefit of the residents of this Commonwealth, for the increase of commerce and prosperity and for the improvement of health and living conditions. (b) Authority exempt.--An authority, as public instrumentality of the Commonwealth and performing essential governmental functions in effectuating these purposes, is exempt from the payment of any taxes or assessments upon a convention center or a part of a convention center, or property acquired or used or permitted to be used by a convention center for these purposes. (c) Bonds exempt.--Bonds issued by an authority, transfer of the bonds and the income from the bonds, including any profits made on the sale of the bonds, shall be exempt from State and local taxation within this Commonwealth. (d) Limitation.--The exemptions under subsections (b) and (c) shall not extend to gift, estate, succession or inheritance taxes or any other taxes not levied directly on the bonds, the transfer or the income of bonds from or the realization of profits on the sale of the bonds.

16 Pa.C.S. § 17350 Lease by authorities.

A convention center may be leased or subleased by the authority to and from the county or county seat, and the county or county seat is empowered to enter into leases or subleases, or both, for this purpose. A lease or sublease may be made for a specified or unlimited time and on any terms and conditions approved by the county or county seat and agreed to by the authority in conformity with its contracts with the bondholders.

16 Pa.C.S. § 17351 Cooperation.

(a) Rights given authority.--For the purpose of aiding and cooperating with the authority and in the planning, acquisition, clearance, relocation, development, design, construction, rehabilitation, leasing, subleasing, alteration, expansion, financing, improvement, management or operation of a convention center, any public body or political subdivision of the Commonwealth or the county or county seat may, with or without consideration: (1) Dedicate, sell, convey, lease or otherwise transfer property or any interest, real, personal or mixed, tangible or intangible, to the authority. (2) Cause parking, recreational or community facilities or any other works, which the political body or political subdivision is otherwise empowered to undertake, to be furnished in or adjacent to any area selected for a convention center or part of a convention center. (3) Furnish, dedicate, close, pave, install, grade, regrade, plan or replan streets, roads, roadways, alleys, sidewalks or other places which the political body or political subdivision is empowered to act. (4) Enter into agreements, extending over any period, with the Federal Government or the authority with respect to action by a State public body pursuant to the powers granted by this section. (5) Incur the entire expense in connection with public improvements made by a State public body, political subdivision, county or the county seat, in exercising the powers granted under this section. (6) Aid and cooperate in the development, acquisition, design, construction, improvement, maintenance, management, operation, furnishing, fixturing, equipping, repairing, financing, owning, leasing and subleasing of a convention center or part of a convention center. (b) Power of Secretary of General Services.--The Secretary of General Services is authorized, with the approval of the Governor and Attorney General, to execute and deliver, on behalf of the Commonwealth, conveyances, deeds and leases authorized under this subchapter. (c) Payments.-- (1) In connection with a convention center, the county or county seat may contract with the authority or the Federal Government with respect to sums which the Federal Government or the authority may agree to pay during any year or period of years to the county or county seat for the improvements, services and facilities to be provided by the county or county seat for the benefit of the authority, convention center facility or the persons occupying the area. (2) The absence of a contract for payments under paragraph (1) does not relieve the county or county seat from the duty to furnish for the benefit of the authority, convention center or the persons occupying the area customary improvements and services and facilities as the county or county seat usually furnish without a service fee. (d) Agency.--The Commonwealth, county or county seat may, by written agreement, designate the authority as an agent within the authority's field of operation to perform any specified activity or to administer any specified program which the Commonwealth, county or county seat is authorized by law to do if these activities or programs are in furtherance of the public purposes specified in this subchapter. Activities include development, acquisition, design, construction, improvement, maintenance, leasing, management or operation of a convention center or part of a convention center. (e) Supplemental powers.--Powers granted under this section shall be in addition and supplemental to the powers conferred by any other law.

16 Pa.C.S. § 17352 Hotel room rental tax.

(a) Imposition.--The county in which the authority's convention centers are located or will be located may impose an excise tax on the consideration received by each operator of a hotel within the market area from each transaction of renting a room or rooms to accommodate transients. (b) Collection.--The tax shall be collected by the operator from the patron of the room and paid over to the county and shall be known as the Hotel Room Rental Tax. (c) Rate.--The rate of tax imposed under this section by the county in which the authority's convention centers are located may not exceed 7%. (d) Distribution of revenue.--Subject to the deduction of the administrative fee authorized by subsection (o), the revenues shall be distributed as follows: (1) The revenues from the special funds required under subsection (e) attributable to the levy of the first 5% of the tax shall be distributed as follows: (i) Eighty percent shall be deposited within two working days into the special fund required under subsection (e) for the use of the authority. (ii) Twenty percent shall be deposited within two working days into the tourist promotion agency fund required under subsection (e) until disbursed under subsection (j). (2) The revenues from the special fund attributable to the levy of the remaining 2% of the tax shall be deposited into the tourist promotion agency fund required under subsection (e) until disbursed under subsection (j). (e) Duty of treasurer.--The treasurer of each county electing to impose the tax authorized under this section shall collect the tax and, subject to the deduction of the administrative fee authorized by subsection (o): (1) deposit 80% of the revenues attributable to the levy of the first 5% of the tax in a special fund established for the purposes set forth in this section; (2) deposit 20% of the revenues attributable to the levy of the first 5% of the tax in the tourist promotion agency fund until disbursed under subsection (j); and (3) deposit the revenues attributable to the levy of the remaining 2% of the tax in the tourist promotion agency fund until disbursed under subsection (j). (f) Deposit of interest.--Interest on money deposited into the funds shall accrue proportionately as provided under subsection (e). (g) Rules and regulations.--The treasurer may establish rules and regulations concerning the collection of the tax, which may not occur more than monthly nor less than quarterly. (h) Special fund.--The authority shall have the right to draw upon the special fund established under subsection (e)(1) for the authority. Expenditures from the special fund shall be used by the authority for the following purposes: (1) Projected annual debt service or lease payments of the convention center authority. (2) Costs associated with financing, constructing, expanding, improving, maintaining, furnishing, fixturing and equipping convention centers. (3) Costs associated with the development of convention centers, including design, engineering and feasibility costs. (4) Costs associated with the operation and management of convention centers. (5) Costs associated with promoting, marketing and otherwise encouraging use of the convention centers. (6) General purposes of the authority. (7) Grants authorized under section 17335(e) (relating to purpose and powers of authorities). (i) Security.--If and to the extent that the authority pledges the authority's share of the proceeds of the tax authorized by this section as security for the payment of bonds issued by the authority for convention centers, the following shall apply: (1) The Commonwealth pledges to and agrees with any person, firm or corporation subscribing to or acquiring bonds to be issued by the authority for convention center purposes that the Commonwealth will not, nor will the Commonwealth authorize a county to, reduce the rate of tax imposed for convention centers until all bonds secured by the pledge of the authority, together with interest, are fully met and discharged. (2) The county may not reduce the rate of tax imposed for convention centers until all bonds secured by the pledge of the authority, together with interest, are fully met and discharged. (j) Disbursement of money.--Revenues received from the tax deposited into the tourist promotion agency fund required under subsection (f) shall be disbursed by each county to the tourist promotion agency within 10 days of receipt of the revenues. (k) Fiscal year.--Each tax year any tax imposed under this section shall run concurrently with the county's fiscal year. (l) Audit.--An audited report on the income and expenditures incurred by a tourist promotion agency receiving revenues from the tax authorized under this section shall be submitted annually by the tourist promotion agency to the county commissioners. (m) Penalty.--Notwithstanding any provision of law to the contrary, in counties of the third class having a population under the 1990 Federal decennial census in excess of 415,000 residents but less than 500,000 residents, a penalty of 1.5% per month shall be imposed for failure to timely remit the tax authorized by this section. (n) Lien.--In addition to other remedies available for collection of debts, the county may also file a lien upon the hotel in the name of and for the use of the county as provided by law for municipal claims. (o) Administrative fee.--For purposes of defraying the costs of collecting the tax imposed under this section and otherwise performing the county's obligations under this subchapter, the county may deduct and retain an administrative fee from the taxes collected under this subsection. The administrative fee shall be established by the county but may not exceed in any tax year the lesser of: (1) 2% of all taxes collected hereunder; or (2) $40,000, which amount shall be adjusted biannually, beginning two years after the date of enactment, by the percentage growth in the Consumer Price Index for All Urban Consumers as determined by the United States Department of Labor. (p) Regulations.--The county shall have the authority to prescribe rules and regulations as the county determines are appropriate to administer the provisions of this section. (q) Definitions.--As used in this section, the following words and phrases shall have the meanings given to them in this subsection: "Consideration." Receipts, fees, charges, rentals, leases, cash, credits, property of any kind or nature or other payment received by operators in exchange for or in consideration of the use or occupancy by a transient of a room or rooms in a hotel for a temporary period. "Convention center or convention center facility." Any land, improvement, structure, building or part thereof, or property interest, whether owned by or leased by or to or otherwise acquired by an authority, appropriate for any of the following: large public assemblies, the holding of conventions, conferences, trade exhibitions and other business, social, cultural, scientific, sports, recreational, artistic and public interest events, performances and exhibitions and all facilities, furniture, fixtures and equipment necessary or incident thereto, including hotels, meeting rooms, dining rooms, kitchens, ballrooms, reception areas, registration and prefunction areas, locker rooms, practice areas and equipment, training areas and equipment, truck loading areas, including access and accessways, including, but not limited to, tunnels, overhead walkways, escalators, elevators and other connections to nearby or adjoining buildings or facilities, regardless of whether the buildings or facilities constitute convention centers or are owned or controlled by the authority, common areas, lobbies, offices and areas appurtenant to any of the preceding, and also including other land, buildings, structures or facilities for use or planned for use in conjunction with the foregoing, including landscaping, buffer areas, off-street parking, retail areas and other improvements related to a convention center owned by or leased by or to an authority, regardless of whether the improvements are for the purpose of producing revenues to assist in defraying the costs or expenses of a convention center. "Hotel." A hotel, motel, inn, guest house or other building or complex of buildings located within the market area which holds itself out by any means, including advertising, license, registration with an innkeeper's group, convention listing association, travel publication or similar association or with a government agency, as being available to provide overnight lodging or use of facility space for consideration to persons seeking temporary accommodation, and the following shall apply: (1) The term includes: (i) A place which advertises to the general public or a segment of the general public that it will provide beds, sanitary facilities or other space for a temporary period to members of the general public. (ii) A place recognized as a hostelry. (2) The term does not include portions of a facility which are devoted to individuals who have established permanent residence. (3) The term does not include a bed and breakfast homestead or inn as defined in the former act of May 23, 1945 (P.L.926, No.369), referred to as the Public Eating and Drinking Place Law. "Market area." With respect to a county in which there is more than one city of the third class, the entire county. With respect to a county in which there is only one city of the third class, one of the following, as selected by the governing body of the county: (1) That city and the area within the county which is not more than 15 miles from the city limits of the county seat. (2) That city and the area within the county which, as determined by the governing body of the county imposing the tax, derives a material benefit from the existence of the convention center within the county. The owner of a hotel affected by a determination by the governing body under this subparagraph may challenge the determination by filing a petition in the court of common pleas in the judicial district in which the determination was made. "Occupancy." The use or possession or the right to the use or possession by a person other than a permanent resident of a room in a hotel for any purpose, or the right to the use or possession of the furnishings or to the services accompanying the use and possession of the room. "Operator." Any individual, partnership, nonprofit or profit-making association or corporation or other person or group of persons that maintain, operate, manage, own, have custody of or otherwise possess the right to rent or lease overnight accommodations in a hotel to the public for consideration. "Patron." An individual who pays the consideration for the occupancy of a room or rooms in a hotel. "Permanent resident." An individual who has occupied or has the right to occupy a room or rooms in a hotel as a patron or otherwise for a period exceeding 30 consecutive days. "Room." A space in a hotel set aside for use and occupancy by patrons, or otherwise, for consideration, having at least one bed or other sleeping accommodations provided therein. "Temporary." A period of time not exceeding 30 consecutive days. "Tourist promotion agency." The agency designated by the governing body of a county or county seat in which the convention centers are located to be eligible for grants from the Department of Community and Economic Development under the act of July 4, 2008 (P.L.621, No.50), known as the Tourism Promotion Act. "Transaction." The activity involving the obtaining by a transient or patron of the use or occupancy of a hotel room from which consideration emanates to the operator under an express or implied contract. "Transient." An individual who obtains an accommodation in any hotel for the individual by means of registering at the facility for the temporary occupancy of a room for the personal use of that individual by paying to the operator of the facility a fee in consideration for the accommodation. "Treasurer." The elected treasurer of the county or, if there is no elected treasurer, another official or agent of the county as may be designated by the county to collect and account for the tax authorized by this section.

16 Pa.C.S. § 17353 Construction.

Nothing in this subchapter shall be construed to limit any action taken under Subchapter A (relating to third class county convention center authorities).

Source: Open US Law by Vaquill AI (CC BY 4.0)URL: https://www.palegis.us/statutes/consolidated/view-statute?txtType=HTM&ttl=16Fetched: 10/16/2026