Puerto Rico Hotel & Tourism Association Government Affairs
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Puerto Rico Hotel & Tourism Association Government Affairs Report December 14, 2017 I. Events/Meetings I. The PRHTA had a meeting with Rep. Victor Pares to signal our support for House Bill 28 (Airline Incentives). Although it is not a perfect bill, it gives additional resources to increase air-access. The Representative had a wide range of questions on the Tourism industry, and Miguel Vega was present to answer them. II. On November 17th, 2017 the PRHTA had a meeting with the Police Superintendent to discuss how best use resources, and any additional resources in the tourism areas. III. On November 27th, 2017 the PRHTA participated in an executive public hearing on Senate Bill 686 (Waiver Penalties/Interests Room Tax). Miguel Vega and Tomas Ramirez were instrumental on getting important amendments included in the project in- order for it to move forward with out support. IV. The PRHTA has participated actively in a wide-range of public hearings on different bills. Although we are not always participating as deponents’: our presence is important to let the Legislature know that we are active in various committees. V. On December 13th, 2017 the PRHTA held a Vieques/Culebra committee meeting to discuss issues facing the island and tourism community. II. New Legislation Report October 27 – Present House Resolution 665 (DMO Investigation): To order the Commission of Tourism and Social Welfare of the House of Representatives to conduct a thorough investigation in relation to the actions carried out by the members of the Corporation for the Promotion of Puerto Rico as a Destination, Inc., as created by Law No. 17- 2017, for the purpose of designing and executing the tourism marketing strategy for Puerto Rico, analyzing the use given to the promotion funds and evaluating the effectiveness and effectiveness of the Destination Marketing Organization (DMO for its acronym in English ) to safeguard the potential that the tourism industry has had in the economic development of Puerto Rico. Referred to Committee on Internal Affairs. House Bill 1299 (Food discount for disabled): To create the "Discount Law for People with Disabilities in Food Expense Establishments" according to which all fast food establishments, restaurants, cafeterias and any other food retail establishments will grant a 25% discount to people with impediments that are thus identified; and for other related purposes. Referred to Tourism/Social Welfare and Small Business Committee. Senate Bill 685: To add Article 1.3 to Act No. 4-2017, known as the "Labor Transformation and Flexibility Law", in order to exempt people who have lost their jobs after Hurricane Maria, and who are hired by previous employers of its application. Referred to Government Committee. Senate Bill 686 (Pay Room Tax Now – Get 100% waiver on penalties): To create the Law "Get up-to-date on the payment of the Tax on the Occupancy Tax", and establish for a term of one hundred and sixty days (160) days, an incentive that promotes the accelerated payment of the collections " Occupancy Tax for the Commonwealth of Puerto Rico"; grant a relief equal to one hundred percent (100%) of the total fines, interest, penalties and surcharges accrued to any hotelier who pays in full the canon by occupation on the effective date of this Act. PRHTA submitted position paper in favor, suggesting amendments. Senate Bill 693: To add a new subsection (q) to Section 5 of Act 17 of April 17, 1931, as amended, so that an employer may deduct or withhold part of the salary that employees or workers will earn prospectively from granting them a payroll advance, loan or delivery of any equipment, material or property whose use and enjoyment is directly related to an emergency and is consented to by the employee; and for other purposes. Approved in Senate. In House Labor Committee. ****Puerto Rico already has Qualified Payments for Disaster. Senate Bill 697: To establish a tax deduction, for purposes of Section 1033.01 (a) of the Internal Revenue Code for a New Puerto Rico, Act 1-2011, as amended, for the relocation of a micro, small or medium business enterprise; establish a tax credit, for purposes of sections 1021.01 of the Internal Revenue Code for a New Puerto Rico, Law 1-2011, as amended, in the case of individuals or 1022.01 and 1022.02 in the case of corporations, for micro, small or medium-sized companies, to be applied against the income tax for its taxable year that includes the month of September 2017, determined before the credits set forth in Subchapter C of Chapter 5 of Subtitle A of the Internal Revenue Code for a New Port Rico, Law 1-2011, as amended (sections 1053.01 to 1053.10); to establish a tax deduction for the actual cost incurred in the purchase of a fixed or portable electricity generator, with the purpose of continuing to operate a micro, small or medium-sized business in Puerto Rico after September 6, 2017 and before December 31, 2017 January 2018, or the date before which the electric power service had been restored at the Business Place, whichever comes first; and for other related purposes. Referred to PR Treasury Committee. Senate Bill 709 (Two-hours for PTA activities): To amend subsection (e) of Section 3.04 of Act No. 110-2006 for the purpose of establishing two (2) working hours at the beginning and end of each school semester, without reduction of pay or of your license balances so that parents who work in private companies actively involve themselves in their children's school activities; and for other purposes. Referred to Government Committee. Senate Bill 760 (Room Tax Info with CRIM): To amend Section 26 of Act 272-2003, as amended, known as the "Tax Act on the Occupancy Tax for the Commonwealth of Puerto Rico," for the purpose of ordering the Tourism Company to provide it the registration of hostels and / or hostels to the Municipal Tax Collection Center and to the municipalities where said properties are located. PRHTA submitted position paper in favor of bill. III. Pending Legislation A. Committee on Tourism and Social Welfare House House Bill 1223 • The Bill proposes to amend Article 4 of Law 10 of 1970, for creating specific functions that the Executive Director of PRTC should comply with, like promoting the island as a tourist destination and maximize current resources. House Bill 1224 • The Bill proposes to amend Article 11 of Law 10 of 1970, with the purpose of requiring the publication of trimester reports on marketing strategies and the costs of these efforts. House Bill 1131 The Bill declares Highway PR-167 that runs from PR-165, Km 12.0, until PR-165, with the intersection Highway PR-816 of the Municipality of Bayamos as “Zona de Turismo Gastronómico”; and declare the following zone with the name “Ruta Brisas del Lago La Plata”. Referred to Tourism Committee. Senate Bill 544: To declare the section of Highway PR-187 that runs in the neighborhoods Piñones and Torrecilla Baja of the Municipality of Loíza as a Gastronomic Tourism Route that will be known as: "Ruta de la Tradición Loiceña"; authorize the Tourism Company of Puerto Rico on its own or in conjunction with other public agencies or private entities, to develop marketing plans, promotion, regulations and any type of initiative that supports the purposes of the route created in this Act; and for other related purposes. Approved in Senate, House calendar for vote. Senate Bill 519 (Regional Airport Incentives): To create the "Law of Incentives to Air Lines and for the Development of the Regional Airports of Puerto Rico"; to establish an Incentive Program for Commercial Airlines assigned to the Department of Economic Development and Commerce, and the Tourism Company of Puerto Rico; provide incentives to commercial airlines; to promote Tourism in Puerto Rico; and for other related purposes. Approved in Senate. In House Economic Development and Tourism Committee. B. Committee on Tourism and Culture Senate Senate Bill 624 Bill proposes to create a Fund for the maintenance of Touristic Areas in the PRTC. Funds will come out of the Room Tax paid by Short-Term Rentals. Referred to Turismo & Culture Committee. Senate Bill 645 Bill proposes to add language to subsection (iv) of article 31 of Law 272 – 2003 (“Room Tax”), to direct a portion of said collections 25% to the municipalities. Referred to Treasury Committee. Senate Bill 650 Bill amends Law 85 – 1956 “Ley de Hosteleros”, to add a new section 23 – with the purpose of requiring all hotels with 30 or more rooms to have available an external defibrillator y personnel certified in cardio-pulmonary resuscitation. The PRHTA submitted a position paper against the approval of this bill. House Concurrent Resolution 11: Bill order the PRTC to conduct inventory on all hotel properties by region. Approved by the House on 10/24/17. Referred to Senate Tourism Committee. We prepared a statement in favor of the Resolution because it included language to do an inventory of all short-term rentals (Airbnb, FlipKey). Senate Bill 605 The bill proposes to amend Article 31 of Law 272-2003, with the express purpose of excluding the “room tax” generated in the municipality of Vieques and Culebra from the distribution done by the PRTC. Senate Resolution 359 Orders Tourism, Culture, Youth and Sports Committees to investigate the implementation of Law Number 280-2008, the status of Sports Tourism, and to establish new strategies to develop the sector. Approved. In Tourism & Culture Committee. Senate Bill 144 Bill intends to establish "Act to Promote Handicrafts in Hotels and Paradores of Puerto Rico" which will require hotels and Paradores to provide open spaces on weekends and holidays to artisans, so they can exhibit and sell their handicrafts to tourists and the general public visiting or staying at the place.