AN ACT to make various occupancy tax changes affecting the cities of hickory and conover.

The General Assembly of North Carolina enacts:

SECTION 1.  Section 1(d) of S.L. 2009‑169, as amended by Section 4.1 of Part IV of S.L. 2017‑202, reads as rewritten:

SECTION 1.(d)  Distribution and Use of Tax Revenue. – The City of Hickory shall, on a quarterly basis, remit the net proceeds of the occupancy tax to the Hickory‑Conover Tourism Development Authority. The funds remitted under this subsection must be used as follows:

(1)        Through December 31, 2029. 2039. – Prior to and through December 31, 2029, 2039, the Authority may use two‑thirds of the funds remitted to it under this subsection for improving, leasing, constructing, financing, operating, or acquiring facilities and properties as needed to provide for a convention center facility, including parking facilities for the convention center. The remainder of the funds must be used to promote travel and tourism. Debt issued to finance these improvements or facilities and that is secured by occupancy tax proceeds remitted under this subdivision must mature on or before December 31, 2029.2039.

(2)        After December 31, 2029. 2039. – After December 31, 2029, 2039, the Authority must use at least two‑thirds of the funds remitted to it under this subsection to promote travel and tourism in the area and must use the remainder for tourism‑related expenditures.

SECTION 2.  Section 3(d) of S.L. 2009‑169, as amended by Section 4.1 of Part IV of S.L. 2017‑202, reads as rewritten:

SECTION 3.(d)  Distribution and Use of Tax Revenue. – The City of Conover shall, on a quarterly basis, remit the net proceeds of the occupancy tax to the Hickory‑Conover Tourism Development Authority. The funds remitted under this subsection must be used as follows:

(1)        Through December 31, 2029. 2039. – Prior to and through December 31, 2029, 2039, the Authority may use two‑thirds of the funds remitted to it under this subsection for improving, leasing, constructing, financing, operating, or acquiring facilities and properties as needed to provide for a convention center facility, including parking facilities for the convention center. The remainder of the funds must be used to promote travel and tourism. Debt issued to finance these improvements or facilities and that is secured by occupancy tax proceeds remitted under this subdivision must mature on or before December 31, 2029.2039.

(2)        After December 31, 2029. 2039. – After December 31, 2029, 2039, the Authority must use at least two‑thirds of the funds remitted to it under this subsection to promote travel and tourism in the area and must use the remainder for tourism‑related expenditures.

SECTION 3.  This act is effective when it becomes law.