Page 1 of 7
Coding: Words which are struck through are deletions from existing law;
words in boldface type and underscored are additions.
Regular Session, 2013 ENROLLED
SENATE BILL NO. 242
BY SENATOR MURRAY AND REPRESENTATI VE LEGER
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
§201. Legislative findings18
The legislature hereby finds and declares all of the following:19
(1) There is a direct correlation between the amount of funds spent on20
destination-based marketing, sales and promotion of a locality and an increase21
in the number of conventions, meetings, visitors, occupancy of hotels, retail sales22
of food, beverages and other items, admissions to cultural and other23
entertainment venues, collections of related state and local sales and use taxes,24
job creation, and a resulting general economic vitality of the traveler economy25
and related businesses in the locality.26
ACT No. 410 SB NO. 242 ENROLLED
Page 2 of 7
Coding: Words which are struck through are deletions from existing law;
words in boldface type and underscored are additions.
(2) It is in the state's public interest and vital to the welfare of the state's1
economy to facilitate and encourage cooperating public-private partnerships for2
the enhancement and expansion of the traveler economy and to provide for3
increased hotel occupancy, tourism, economic development and job creation in4
Orleans Parish.5
§202. Purpose6
This Chapter is enacted for the purpose of facilitating the collection and7
use of private sector originated supplementary funds to market and promote8
greater New Orleans as a traveler destination and to provide for increased9
economic activity within its traveler economy, including an increased number10
of conventions, meetings, visitors, hotel occupancy, food, beverage and other11
retail sales, tourism, including cultural and family tourism, job creation and12
other economic development and related purposes through an optional, self-13
generated, private-sector hotel self-assessment program.14
§203. Definitions15
For the purposes of this Chapter, the following terms shall have the16
following meanings unless the context clearly indicates otherwise:17
(1) "Assessed hotel" means a person operating a hotel and required to18
pay a hotel assessment pursuant to this Chapter and, until the hotel assessment19
is first levied, any person operating a hotel authorized to vote in the20
referendum.21
(2) "City" means the city of New Orleans.22
(3) "Hotel" means any establishment engaged in the business of23
furnishing or providing rooms intended or designed for dwelling, lodging, or24
sleeping purposes to transient guests where such establishment consists of ten25
or more guest rooms but does not include any hospital, convalescent or nursing26
home or sanitarium, or any hotel-like facility operated by or in connection with27
a hospital or medical clinic providing rooms exclusively for patients and their28
families.29
(4) "Hotel assessment" means any assessment that is: (a) levied under30 SB NO. 242 ENROLLED
Page 3 of 7
Coding: Words which are struck through are deletions from existing law;
words in boldface type and underscored are additions.
this Chapter by a tourism organization on its members that are operators of1
hotels located in Orleans Parish; (b) calculated by reference either to room2
occupancy or room sales; and (c) for the general purposes of the organization,3
or otherwise for the direct or indirect benefit of the tourism industry and4
economic development, for sales, marketing and promotion, and for driving and5
hosting tourism growth and visitors.6
(5) "Operator of a hotel" means the person in whose name the7
occupational license for the hotel is issued by the city.8
(6) "Person" means an individual, public entity, firm, corporation,9
partnership, limited liability company, trust, association, or any other business10
entity or juridical person, whether operating on a for-profit or nonprofit basis.11
(7) "Referendum" means any vote by assessed hotels by mailed ballot of12
measures proposed by the tourism organization in accordance with the13
provisions of this Chapter.14
(8) "Surcharge" means any charge in addition to the daily room charge15
for services to a hotel guest that is required to be paid in order to occupy a room16
and any hotel assessment that is passed through to hotel guests as a charge on17
the guest folio. Surcharge does not include charges for food and beverages,18
Internet access, spa access or other goods or services sold at the hotel unless the19
payment for the goods or services is required in connection with the use of the20
hotel room.21
(9) "Tourism organization" means any private nonprofit corporation22
domiciled in Orleans Parish that is a nationally accredited comprehensive23
membership based organization engaged in destination sales and marketing,24
visitor support and other tourism related activities including the New Orleans25
Convention and Visitors Bureau.26
§204. Levy of hotel assessments; use of proceeds27
A. A tourism organization, under authority of its articles or bylaws, may28
levy a hotel assessment of up to one and three quarters percent of the daily29
room charge upon its hotel members in Orleans Parish under this Chapter for30 SB NO. 242 ENROLLED
Page 4 of 7
Coding: Words which are struck through are deletions from existing law;
words in boldface type and underscored are additions.
destination marketing, sales, public relations and for other matters deemed by1
the tourism organization to benefit directly or indirectly economic development,2
the traveler economy, and tourism growth, as shall be approved by resolution3
of the board of directors of the tourism organization and ratified by a vote of4
the assessed hotels in a referendum conducted in accordance with R.S. 21:206.5
B. A hotel assessment proposed to be levied under this Chapter by a6
tourism organization (1) shall be authorized by its board of directors or other7
governing body by resolution that describes in general terms the hotel8
assessment to be levied and includes a statement that the hotel assessment is to9
be levied under this Chapter and (2) shall be approved in a referendum of the10
assessed hotels as provided in R.S. 21:206.11
C. A hotel operator shall not be liable for payment of a hotel assessment12
under this Chapter for any time period in which it is not a member of the13
tourism organization.14
D. Notwithstanding any other provision of law, an assessed hotel shall15
place the hotel assessment as a mandatory surcharge on the folio and in so doing16
shall comply with R.S. 21:205(C). Receipts from any such surcharge for hotel17
assessments levied pursuant to this Chapter are not part of gross receipt or18
gross revenue for any purpose, including the calculation of hotel sales or19
occupancy taxes or state income taxes and are not part of income pursuant to20
any lease or operator agreement. Payment of the assessment to the tourism21
organization shall not be taken as a deduction from income for state income tax22
purposes.23
E. Any hotel assessment levied and passed through to a guest as a24
surcharge in accordance with this Chapter is an enforceable obligation of the25
guest to the same extent as daily room charges and other lawful surcharges.26
F. Procedures for collection of hotel assessments, interest charges and27
penalties for delinquent remittance of hotel assessments to the tourism28
organization or other matters incident to the hotel assessment shall be as29
provided by resolution or in the bylaws of the tourism organization. The state,30 SB NO. 242 ENROLLED
Page 5 of 7
Coding: Words which are struck through are deletions from existing law;
words in boldface type and underscored are additions.
the city, and any and all of their agencies and political subdivisions may, upon1
the request of a tourism organization, enter into a cooperative endeavor2
agreement with the tourism organization for the collection of hotel assessments3
on behalf of the tourism organization.4
§205. Disclosure of surcharges5
A. Rate schedules setting forth room charges and any surcharges as6
required by this Chapter for hotels shall be posted or disclosed in all hotels and7
shall be delivered to the director of the department of finance of the city as8
required by applicable local ordinances.9
B. Each operator of a hotel shall comply with applicable local10
ordinances relating to furnishing a schedule of charges for the rental or use of11
hotel rooms and shall include therein surcharges in effect for the following year,12
a schedule of binding rates, applicable surcharges, and length-of-stay13
requirements.14
C. An operator of a hotel shall place line itemization of any hotel15
assessment for which the operator is responsible on the guest folio as a charge16
to the guest immediately after, or included in, the itemization of hotel tax and17
occupancy tax. All hotel assessments to be passed through to guests as18
surcharges shall be disclosed on all information or communication platforms of19
the hotel in the same manner as are other surcharges and hotel and occupancy20
taxes as required by applicable laws and regulations.21
D. The provisions of this Chapter shall not supersede or limit the22
authority of a tourism organization to levy assessments on its members under23
the Nonprofit Corporation Law or other applicable law and apply only to24
assessments that are declared by resolution of the board of directors or other25
governing body of the tourism organization to be made under this Chapter.26
§206. Referendum27
A. Any hotel assessment to be levied pursuant to this Chapter shall be28
approved by a vote of the assessed hotels in a referendum conducted in29
accordance with this Section. A referendum of all assessed hotels shall be called30 SB NO. 242 ENROLLED
Page 6 of 7
Coding: Words which are struck through are deletions from existing law;
words in boldface type and underscored are additions.
by the president of the Greater New Orleans Hotel and Lodging Association,1
Inc., by written notice mailed to all hotel operators identified by the tourism2
organization as its members in accordance with such procedures as the tourism3
organization may establish in its discretion. In any referendum, each assessed4
hotel shall have a number of votes equal to the number of its hotel rooms as5
shown on its occupational license. In any referendum, two-thirds of the votes6
cast shall be required to approve or ratify any hotel assessment.7
B. The written notice of the referendum shall include a description of any8
proposed hotel assessment, including the effective date thereof, a ballot, and a9
statement of the referendum period, which shall be not less than thirty days10
from the date of the mailing of the notice and a ballot. Ballots may be delivered11
to the Greater New Orleans Hotel and Lodging Association, Inc., or any other12
person designated for the purpose of receiving, tabulating and counting ballots13
at any time during the referendum period. The Greater New Orleans Hotel and14
Lodging Association, Inc., may in its discretion extend the referendum period15
not more than fifteen additional days. At the close of the referendum period, the16
Greater New Orleans Hotel and Lodging Association, Inc., or other person17
designated for the purpose of receiving, tabulating and counting ballots shall18
count and tabulate the ballots received during the referendum period. All19
ballots shall be presumed to be valid. A notice of the results of the referendum20
shall be mailed by the Greater New Orleans Hotel and Lodging Association,21
Inc., or any other person designated for the purpose of receiving, tabulating and22
counting ballots to the tourism organization and the assessed hotels.23
C. Referendum costs. The costs of the referendum, in the first instance,24
shall be paid by the tourism organization and shall be reimbursed from hotel25
assessments as received.26
§207. Liberal construction27
This Chapter, being necessary for the welfare of the state, the city, the28
parish and its residents, shall be liberally construed to effect the purposes29
thereof.30 SB NO. 242 ENROLLED
Page 7 of 7
Coding: Words which are struck through are deletions from existing law;
words in boldface type and underscored are additions.
§208. Severability1
The provisions of this Chapter are severable. It is intended that if any2
provision of this Chapter should be adjudged invalid or unenforceable, then3
such provision shall be ineffective to the extent of such invalidity or4
unenforceability without invalidating the remaining provisions of this Chapter.5
Section 2. This Act shall become effective upon signature by the governor6
or, if not signed by the governor, upon expiration of the time for bills to become law7
without signature by the governor, as provided by Article III, Section 18 of the8
Constitution of Louisiana. If vetoed by the governor and subsequently approved by9
the legislature, this Act shall become effective on the day following such approval.10
PRESIDENT OF THE SENATE
SPEAKER OF THE HOUSE OF REPRESENTATIVES
GOVERNOR OF THE STATE OF LOUISIANA
APPROVED: