It is enacted by the General Assembly as follows:

Section 1. Sections 42-63.1-3 and 42-63.1-4 of the General Laws in Chapter 42-63.1 entitled "Rhode Island Tourism and Development" are hereby repealed in their entirety.

42-63.1-3. Distribution of tax. -- Except as provided in section 42-63.1-12 the proceeds of the hotel tax shall be distributed as follows by the division of taxation and the city of Newport:

(d) (As amended by P.L. 1995, ch. 370, art. 40, section 139.) Twenty seven percent (27%) of the hotel tax shall be deposited as general revenues.

42-63.1-4. Use of funds. -- ›As amended by P.L. 1995, ch. 370, art. 40, section 139.! Any entity which receives funds pursuant to this chapter shall use the funds to promote and encourage tourism in Rhode Island, to coordinate tourism activities and to further economically develop the state by and through tourism activities.

42-63.1-4. Use of funds. -- (As amended by P.L. 1995, ch. 371, section 1.) Subject to sections 42-63.1-3(b), 42-63.1-3(c) and 42-63.1-12, an entity which receives funds pursuant to this chapter shall use the funds to promote and encourage tourism in Rhode Island, to coordinate tourism activities to further economically develop the state by and through tourism activities, and to promote and develop conventions and related exhibition, meeting, banquet and other events customarily incident thereto in facilities established pursuant to chapter 99 of this title.

Section 2. Chapter 42-63.1 entitled "Rhode Island Tourism & Development" is hereby amended by adding the following sections:

{ADD 42-63.1-3. Distribution of tax. -- ADD} {ADD Except as provided in section 42-63.1-12 the proceeds of the hotel tax shall be distributed as follows by division of taxation and the city of Newport:

(a) Forty-seven percent (47%) of the tax generated by the hotels in the district except as otherwise provided in this chapter shall be given to the regional tourism district wherein the hotel is located; provided however, that from the tax generated by the hotels in the city of Warwick, thirty-one percent (31%) of said tax shall be given to the Warwick regional tourism district established in section 42-63.1-5(5) and sixteen percent (16%) of said tax shall be given to the Greater Providence-Warwick Convention and Visitors' Bureau established in section 42-63.1-11 and provided further, that from the tax generated by the hotels in the city of Providence, thirty-nine and one-half percent (39.5%) of said tax shall be given to the Greater Providence-Warwick Convention and Visitors' Bureau established by section 42-63.1-11 of the general laws, and seven and one-half percent (7.5%) of said tax shall be given to the Convention Authority of the city of Providence established pursuant to the provisions of chapter 84 of the public laws of January, 1980, provided, however, that the receipts attributable to the district as defined in section 42-63.1-5(7) shall be deposited as general revenues:

(b) Twenty percent (20%) of the hotel tax shall be given to city or town wherein the hotel which generated the tax is physically located to be used for whatever purpose the city or town decides.

(c) Thirty-three (33%) of the hotel tax shall be deposited as general revenues. ADD}

{ADD 42-63.1-4. Use of funds. -- ADD} {ADD Subject to sections 42-63.1-3(b), 42-63.1-3(c), 42-63.1-3(d) and 42-63.1-12 an entity which receives funds pursuant to this chapter shall use the funds to promote and encourage tourism to coordinate tourism activities and to further economically develop the state by and through tourism activities, and to promote and develop conventions and related exhibition, meeting, banquet and other events customarily incident thereto in facilities established pursuant to Chapter 99 of this title. ADD}

Section 3. Section 42-63.1-12 of the General Laws entitled "Rhode Island Tourism and Development" is hereby amended as follows:

42-63.1-12. Distribution of tax to Rhode Island Convention Center Authority. -- (a) The proceeds of the hotel tax generated by any and all hotels in which the Rhode Island Convention Center Authority maintains a majority ownership interest therein shall be distributed as follows: twenty-seven percent (27%) shall be given to the department of economic development to be spent and applied for statewide tourism promotion; {ADD deposited as general revenues; ADD} forty-three percent (43%) shall be given to the greater Providence-Warwick Convention and Visitor's Bureau; thirty percent (30%) shall be given to the Rhode Island Convention Center Authority to be used in furtherance of the purposes set forth in this chapter.

(b) The Rhode Island Convention Center Authority is hereby authorized and empowered to enter into contracts with the Greater Providence-Warwick Convention and Visitors' Bureau in furtherance of the purposes set forth in this chapter.

Section 4. This act shall take effect upon passage and be retroactive to August 7, 1995.