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Regular Session, 2013
SENATE BILL NO. 242
BY SENATOR MURRAY AND REPRESENTATI VE LEGER
TOURISM. Authorizes the levy of an optional hotel assessment by a tourism organization
upon its hotel members and provides for treating such assessment as a surcharge to hotel
guests. (gov sig)
AN ACT1
To enact Chapter 4 of Title 21 of the Louisiana Revised Statutes of 1950, to be comprised2
of R.S. 21:201 through 208, relative to hotels and lodging houses; to provide with3
respect to optional assessments on hotels that are levied by a comprehensive4
membership based tourism organization on its members that are operators of hotels5
or motels located in the parish of Orleans; to provide that hotel and income taxes6
shall not apply to such surcharges; to provide for a hotel referendum to approve such7
an optional assessment; to provide for enhancement of the sales and marketing8
capabilities and other general purposes of the organization; to provide for the direct9
or indirect benefit of growing the traveler economy; to provide for levying hotel10
assessments as surcharges on hotel or motel folios; to provide for terms and11
definitions; to provide for an effective date; and to provide for related matters.12
Notice of intention to introduce this Act has been published as provided by13
Article III, Section 13 of the Constitution of Louisiana.14
Be it enacted by the Legislature of Louisiana:15
Section 1. Chapter 4 of Title 21 of the Louisiana Revised Statutes of 1950,16
comprised of R.S. 21:201 through 208 is hereby enacted to read as follows:17 SB NO. 242
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§201. Legislative findings1
The legislature hereby finds and declares all of the following:2
(1) There is a direct correlation between the amount of funds spent on3
destination-based marketing, sales and promotion of a locality and an increase4
in the number of conventions, meetings, visitors, occupancy of hotels, retail sales5
of food, beverages and other items, admissions to cultural and other6
entertainment venues, collections of related state and local sales and use taxes,7
job creation, and a resulting general economic vitality of the traveler economy8
and related businesses in the locality.9
(2) It is in the state's public interest and vital to the welfare of the state's10
economy to facilitate and encourage cooperating public-private partnerships for11
the enhancement and expansion of the traveler economy and to provide for12
increased hotel occupancy, tourism, economic development and job creation in13
Orleans Parish.14
§202. Purpose15
This Chapter is enacted for the purpose of facilitating the collection and16
use of private sector originated supplementary funds to market and promote17
greater New Orleans as a traveler destination and to provide for increased18
economic activity within its traveler economy, including an increased number19
of conventions, meetings, visitors, hotel occupancy, food, beverage and other20
retail sales, tourism, including cultural and family tourism, job creation and21
other economic development and related purposes through an optional, self-22
generated, private-sector hotel self-assessment program.23
§203. Definitions24
For the purposes of this Chapter, the following terms shall have the25
following meanings unless the context clearly indicates otherwise:26
(1) "Assessed hotel" means a person operating a hotel and required to27
pay a hotel assessment pursuant to this Chapter and, until the hotel assessment28
is first levied, any person operating a hotel authorized to vote in the29 SB NO. 242
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referendum.1
(2) "City" means the city of New Orleans.2
(3) "Hotel" means any establishment engaged in the business of3
furnishing or providing rooms intended or designed for dwelling, lodging, or4
sleeping purposes to transient guests where such establishment consists of ten5
or more guest rooms but does not include any hospital, convalescent or nursing6
home or sanitarium, or any hotel-like facility operated by or in connection with7
a hospital or medical clinic providing rooms exclusively for patients and their8
families.9
(4) "Hotel assessment" means any hotel assessment that is: (a) levied10
under this Chapter by a tourism organization on its members that are operators11
of hotels located in Orleans Parish; (b) calculated by reference either to room12
occupancy or room sales; and (c) for the general purposes of the organization,13
or otherwise for the direct or indirect benefit of the tourism industry and14
economic development, for sales, marketing and promotion, and for driving and15
hosting tourism growth and visitors.16
(5) "Operator of a hotel" means the person in whose name the17
occupational license for the hotel is issued by the city.18
(6) "Person" means an individual, public entity, firm, corporation,19
partnership, limited liability company, trust, association, or any other business20
entity or juridical person, whether operating on a for-profit or nonprofit basis.21
(7) "Referendum" means any vote by assessed hotels by mailed ballot of22
measures proposed by the tourism organization in accordance with the23
provisions of this Chapter.24
(8) "Surcharge" means any charge in addition to the daily room charge25
for services to a hotel guest that is required to be paid in order to occupy a room26
and any hotel assessment that is passed through to hotel guests as a charge on27
the guest folio. Surcharge does not include charges for food and beverages,28
Internet access, spa access or other goods or services sold at the hotel unless the29 SB NO. 242
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payment for the goods or services is required in connection with the use of the1
hotel room.2
(9) "Tourism organization" means any private nonprofit corporation3
domiciled in Orleans Parish that is a nationally accredited comprehensive4
membership based organization engaged in destination sales and marketing,5
visitor support and other tourism related activities including the New Orleans6
Convention and Visitors Bureau.7
§204. Levy of hotel assessments; use of proceeds.8
A. A tourism organization, under authority of its articles or bylaws, may9
levy a hotel assessment of up to one and three quarters percent of the daily10
room charge upon its hotel members in Orleans Parish under this Chapter for11
destination marketing, sales, public relations and for other matters deemed by12
the tourism organization to benefit directly or indirectly economic development,13
the traveler economy, and tourism growth, as shall be approved by resolution14
of the board of directors of the tourism organization and ratified by a vote of15
the assessed hotels in a referendum conducted in accordance with R.S. 21:206.16
B. A hotel assessment proposed to be levied under this Chapter by a17
tourism organization (1) shall be authorized by its board of directors or other18
governing body by resolution that describes in general terms the hotel19
assessment to be levied and includes a statement that the hotel assessment is to20
be levied under this Chapter and (2) shall be approved in a referendum of the21
assessed hotels as provided in R.S. 21:206.22
C. A hotel operator shall not be liable for payment of a hotel assessment23
under this Chapter for any time period in which it is not a member of the24
tourism organization.25
D. Notwithstanding any other provision of law, an assessed hotel shall26
place the hotel assessment as a mandatory surcharge on the folio and in so doing27
shall comply with R.S. 21:205(C). Receipts from any such surcharge for hotel28
assessments levied pursuant to this Chapter are not part of gross receipt or29 SB NO. 242
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gross revenue for any purpose, including the calculation of hotel sales or1
occupancy taxes or state income taxes and are not part of income pursuant to2
any lease or operator agreement. Payment of the assessment to the tourism3
organization shall not be taken as a deduction from income for state income tax4
purposes.5
E. Any hotel assessment levied and passed through to a guest as a6
surcharge in accordance with this Chapter is an enforceable obligation of the7
guest to the same extent as daily room charges and other lawful surcharges.8
F. Procedures for collection of hotel assessments, interest charges and9
penalties for delinquent remittance of hotel assessments to the tourism10
organization or other matters incident to the hotel assessment shall be as11
provided by resolution or in the bylaws of the tourism organization. The state,12
the city, and any and all of their agencies and political subdivisions may, upon13
the request of a tourism organization, enter into a cooperative endeavor14
agreement with the tourism organization for the collection of hotel assessments15
on behalf of the tourism organization.16
§205. Disclosure of surcharges17
A. Rate schedules setting forth room charges and any surcharges as18
required by this Chapter for hotels shall be posted or disclosed in all hotels and19
shall be delivered to the director of the department of finance of the city as20
required by applicable local ordinances.21
B. Each operator of a hotel shall comply with applicable local22
ordinances relating to furnishing a schedule of charges for the rental or use of23
hotel rooms and shall include therein surcharges in effect for the following year,24
a schedule of binding rates, applicable surcharges, and length-of-stay25
requirements.26
C. An operator of a hotel shall place line itemization of any hotel27
assessment for which the operator is responsible on the guest folio as a charge28
to the guest immediately after, or included in, the itemization of hotel tax and29 SB NO. 242
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occupancy tax. All hotel assessments to be passed through to guests as1
surcharges shall be disclosed on all information or communication platforms of2
the hotel in the same manner as are other surcharges and hotel and occupancy3
taxes as required by applicable laws and regulations.4
D. The provisions of this Chapter shall not supersede or limit the5
authority of a tourism organization to levy assessments on its members under6
the Nonprofit Corporation Law or other applicable law and apply only to7
assessments that are declared by resolution of the board of directors or other8
governing body of the tourism organization to be made under this Chapter.9
§206. Referendum10
A. Any hotel assessment to be levied pursuant to this Chapter shall be11
approved by a vote of the assessed hotels in a referendum conducted in12
accordance with this Section. A referendum of all assessed hotels shall be called13
by the president of the Greater New Orleans Hotel and Lodging Association,14
Inc., by written notice mailed to all hotel operators identified by the tourism15
organization as its members in accordance with such procedures as the tourism16
organization may establish in its discretion. In any referendum, each assessed17
hotel shall have a number of votes equal to the number of its hotel rooms as18
shown on its occupational license. In any referendum, two-thirds of the votes19
cast shall be required to approve or ratify any hotel assessment.20
B. The written notice of the referendum shall include a description of any21
proposed hotel assessment, including the effective date thereof, a ballot, and a22
statement of the referendum period, which shall be not less than thirty days23
from the date of the mailing of the notice and a ballot. Ballots may be delivered24
to the Greater New Orleans Hotel and Lodging Association, Inc., or any other25
person designated for the purpose of receiving, tabulating and counting ballots26
at any time during the referendum period. The Greater New Orleans Hotel and27
Lodging Association, Inc., may in its discretion extend the referendum period28
not more than fifteen additional days. At the close of the referendum period, the29 SB NO. 242
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Greater New Orleans Hotel and Lodging Association, Inc., or other person1
designated for the purpose of receiving, tabulating and counting ballots shall2
count and tabulate the ballots received during the referendum period. All3
ballots shall be presumed to be valid. A notice of the results of the referendum4
shall be mailed by the Greater New Orleans Hotel and Lodging Association,5
Inc., or any other person designated for the purpose of receiving, tabulating and6
counting ballots to the tourism organization and the assessed hotels.7
C. Referendum costs. The costs of the referendum, in the first instance,8
shall be paid by the tourism organization and shall be reimbursed from hotel9
assessments as received.10
§207. Liberal construction11
This Chapter, being necessary for the welfare of the state, the city, the12
parish and its residents, shall be liberally construed to effect the purposes13
thereof.14
§208. Severability15
The provisions of this Chapter are severable. It is intended that if any16
provision of this Chapter should be adjudged invalid or unenforceable, then17
such provision shall be ineffective to the extent of such invalidity or18
unenforceability without invalidating the remaining provisions of this Chapter.19
Section 2. This Act shall become effective upon signature by the governor20
or, if not signed by the governor, upon expiration of the time for bills to become law21
without signature by the governor, as provided by Article III, Section 18 of the22
Constitution of Louisiana. If vetoed by the governor and subsequently approved by23
the legislature, this Act shall become effective on the day following such approval.24
The original instrument was prepared by Angela Lockett De Jean. The
following digest, which does not constitute a part of the legislative
instrument, was prepared by Michelle Broussard-Johnson.
DIGEST
Murray (SB 242)
Proposed law provides that there is a direct correlation between the amount of funds spent
on destination-based marketing, sales and promotion of a locality and an increase in the SB NO. 242
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words in boldface type and underscored are additions.
number of conventions, meetings, visitors, occupancy of hotels, retail sales of food,
beverages and other items, admissions to cultural and other entertainment venues, collections
of related state and local sales and use taxes, job creation and a resulting general economic
vitality of the traveler economy and related businesses in the locality.
Proposed law provides that it is in the state's public interest and vital to the welfare of the
state's economy to facilitate and encourage cooperating public-private partnerships for the
enhancement and expansion of the traveler economy and to provide for increased hotel
occupancy, tourism, economic development and job creation in Orleans Parish.
Proposed law provides that proposed law is enacted for the purpose of facilitating the
collection and use of private sector originated supplementary funds to market and promote
greater New Orleans as a traveler destination and to provide for increased economic activity
within its traveler economy, including an increased number of conventions, meetings,
visitors, hotel occupancy, food, beverage and other retail sales, tourism, including cultural
and family tourism, new job creation and other economic development and related purposes
through an optional, self-generated, private-sector hotel self-assessment program.
Proposed law provides that for the purposes of proposed law, the following terms shall have
the following meanings unless the context clearly indicates otherwise:
(1)"Assessed hotel" means a person operating a hotel and required to pay an hotel
assessment pursuant to proposed law and, until the hotel assessment is first levied,
any person operating a hotel authorized to vote for in referendum.
(2)"City" means the city of New Orleans.
(3)"Hotel" means any establishment engaged in the business of furnishing or providing
rooms intended or designed for dwelling, lodging, or sleeping purposes to transient
guests where such establishment consists of ten or more guest rooms but does not
include any hospital, convalescent or nursing home or sanitarium, or any hotel-like
facility operated by or in connection with a hospital or medical clinic providing
rooms exclusively for patients and their families.
(4)"Hotel assessment" means any hotel assessment that is: (a) levied under this Chapter
by a tourism organization on its members that are operators of hotels located in
Orleans Parish; (b) calculated by reference either to room occupancy or room sales;
and (c) for the general purposes of the organization, or otherwise for the direct or
indirect benefit of the tourism industry and economic development, for sales,
marketing and promotion, and for driving and hosting tourism growth and visitors.
(5)"Operator of a hotel" means the person in whose name the occupational license for
the hotel is issued by the city.
(6)"Person" means an individual, public entity, firm, corporation, partnership, limited
liability company, trust, association, or any other business entity or juridical person,
whether operating on a for-profit or nonprofit basis.
(7)"Referendum" means any vote by assessed hotels by mailed ballot of measures
proposed by the tourism organization in accordance with the provisions of proposed
law.
(8)"Surcharge" means any charge in addition to the daily room charge for services to
a hotel guest that is required to be paid in order to occupy a room and any hotel
assessment that is passed through to hotel guests as a charge on the guest folio.
Surcharge does not include charges for food and beverages, Internet access, spa
access or other goods or services sold at the hotel unless the payment for the goods
or services is required in connection with the use of the hotel room. SB NO. 242
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words in boldface type and underscored are additions.
(9)"Tourism organization" means any private nonprofit corporation domiciled in
Orleans Parish that is a nationally accredited comprehensive membership based
organization engaged in destination sales and marketing, visitor support and other
tourism related activities including the New Orleans Convention and Visitors
Bureau.
Proposed law provides that a tourism organization, under authority of its articles or bylaws,
may levy a hotel assessment of up to one and three quarters percent of the daily room charge
upon its hotel members in Orleans Parish pursuant to proposed law for destination
marketing, sales, public relations and for other matters deemed by the tourism organization
to benefit directly or indirectly economic development, the traveler economy and tourism
growth as shall be approved by resolution of the board of directors of the tourism
organization and ratified by a vote of the assessed hotels in a referendum conducted in
accordance with proposed law.
Proposed law provides that a hotel assessment proposed to be levied pursuant to proposed
law by a tourism organization (1) shall be authorized by its board of directors or other
governing body by resolution that describes in general terms the hotel assessment to be
levied and includes a statement that the hotel assessment is to be levied pursuant to proposed
law and (2) shall be approved in a referendum of the assessed hotels as provided in proposed
law.
Proposed law provides that a hotel operator shall not be liable for payment of a hotel
assessment under proposed law for any time period in which it is not a member of the
tourism organization.
Proposed law provides that in addition to the right to resign from the tourism organization
as provided in the bylaws or other governing documents of the tourism organization, an
assessed hotel shall have the right to resign its membership in the tourism organization by
written notice given to the tourism organization within 30 days of the announcement of the
results of the referendum approving the hotel assessment and, for purposes of proposed law,
such resignation shall be effective as of the date of the referendum.
Proposed law provides that a hotel operator shall not be an assessed hotel liable for payment
of a hotel assessment under proposed law during any time period in which it is not a member
of the tourism organization.
Proposed law provides that an assessed hotel shall place the hotel assessment as a mandatory
surcharge on the folio and in so doing shall comply with proposed law.
Proposed law provides that receipts from any hotel assessments levied pursuant to proposed
law are not part of gross receipts or gross revenue for any purpose, including the calculation
of hotel sales or occupancy taxes or state income taxes and are not part of income pursuant
to any lease or operator agreement.
Proposed law provides that payment of the assessment to the tourism organization shall not
be taken as a deduction from income for state income tax purposes.
Proposed law provides that any hotel assessment levied and passed through to a guest as a
surcharge in accordance with proposed law is an enforceable obligation of the guest to the
same extent as daily room charges and other lawful surcharges.
Proposed law provides that procedures for collection of hotel assessments, interest charges
and penalties for delinquent remittance of hotel assessments to the tourism organization or
other matters incident to the hotel assessment shall be as provided by resolution or in the
bylaws of the tourism organization.
Proposed law provides that the state, the city, and any and all of their agencies and political SB NO. 242
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subdivisions may, upon the request of a tourism organization, enter into a cooperative
endeavor agreement with the tourism organization for the collection of hotel assessments on
behalf of the tourism organization.
Proposed law provides that rate schedules setting forth room charges and any surcharges as
required by proposed law for hotels shall be posted or disclosed in all hotels and shall be
delivered to the director of the department of finance of the city as required by applicable
local ordinances.
Proposed law provides that each operator of a hotel shall comply with applicable local
ordinances relating to furnishing a schedule of charges for the rental or use of hotel rooms
and shall include therein surcharges in effect for the following year, a schedule of binding
rates, applicable surcharges, and length-of-stay requirements.
Proposed law provides that an operator of a hotel shall place line itemization of any hotel
assessment for which the operator is responsible on the guest folio as a charge to the guest
immediately after, or included in, the itemization of hotel tax and occupancy tax.
Proposed law provides that all hotel assessments to be passed through to guests as surcharges
shall be disclosed on all information or communication platforms of the hotel in the same
manner as are other surcharges and hotel and occupancy taxes as required by applicable laws
and regulations.
Proposed law provides that the provisions of proposed law shall not supersede or limit the
authority of a tourism organization to levy assessments on its members under the Nonprofit
Corporation Law or other applicable law and apply only to assessments that are declared by
resolution of the board of directors or other governing body of the tourism organization to
be made under proposed law.
Proposed law provides that any hotel assessment to be levied pursuant to proposed law shall
be approved by a vote of the assessed hotels in a referendum conducted in accordance with
proposed law.
Proposed law provides that a referendum of all assessed hotels shall be called by the
president of the Greater New Orleans Hotel and Lodging Association, Inc., by written notice
mailed to all hotel operators identified by the tourism organization as its members in
accordance with such procedures as the tourism organization may establish in its discretion.
Proposed law provides that in any referendum, each assessed hotel shall have a number of
votes equal to the number of its hotel rooms as shown on its occupational license. In any
referendum, 2/3 of the votes cast shall be required to approve or ratify any hotel assessment.
Proposed law provides that the written notice of the referendum shall include a description
of any hotel assessment, including the effective date thereof, a ballot, and a statement of the
referendum period, which shall be not less than 30 days from the date of the mailing of the
notice and a ballot.
Proposed law provides that ballots may be delivered to the Greater New Orleans Hotel and
Lodging Association, Inc., or any other person designated for the purpose of receiving,
tabulating and counting ballots at any time during the referendum period. The Greater New
Orleans Hotel and Lodging Association, Inc., may in its discretion extend the referendum
period not more than 15 additional days.
Proposed law provides that at the close of the referendum period, the Greater New Orleans
Hotel and Lodging Association, Inc., or other person designated for the purpose of receiving,
tabulating and counting ballots shall count and tabulate the ballots received during the
referendum period. All ballots shall be presumed to be valid. SB NO. 242
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Coding: Words which are struck through are deletions from existing law;
words in boldface type and underscored are additions.
Proposed law provides that a notice of the results of the referendum shall be mailed by the
Greater New Orleans Hotel and Lodging Association, Inc. or any other person designated
for the purpose of receiving, tabulating and counting ballots to the tourism organization and
the assessed hotels.
Proposed law provides that the costs of the referendum, in the first instance, shall be paid
by the tourism organization and shall be reimbursed from hotel assessments as received.
Proposed law provides that proposed law shall be liberally construed to effect the purposes
of proposed law.
Proposed law provides that the provisions of proposed law are severable.
Effective upon signature of the governor or lapse of time for gubernatorial action.
(Adds R.S. 21:201-208)
Summary of Amendments Adopted by Senate
Senate Floor Amendments to engrossed bill
1. Provides that the optional hotel assessment can be levied up to one and three
quarters percent of the daily room charge.