Conference report recommends the following changes to 3rd edition to reconcile matters in controversy.
Provides that the Senate recedes from Senate Amendment #1 (6/28/12) and deletes the 3rd edition and replaces it with a Proposed Conference Committee Substitute with provisions as follows.
Retains amendments SL 1987-172, as amended, to authorize the Henderson County Board of Commissioners (Board) to levy a room occupancy and tourism development tax of no less than 3% or more than 5%. Also retains provision authorizing the Board to levy an additional room occupancy and tourism development tax of up to 1%. Provides that both the existing and additional tax must be levied, administered, collected, and repealed as provided in GS 153A-155 (uniform provisions for room occupancy taxes). Prohibits Henderson County from levying the additional 1% tax unless it also levies the existing room occupancy and tourism development tax.
Directs the county to remit the net proceeds of the room occupancy and tourism development tax to the Authority on a quarterly basis. Directs the Authority to use at least two-thirds of the net proceeds (the first 5%) of the room occupancy tax to promote travel and tourism in Henderson County and to use the remainder for tourism-related expenses. Directs the Authority to use the net proceeds of the additional 1% tax for the maintenance, operation, renovation, and promotion of The Vagabond School of the Drama, Inc. including the Mainstage and the Playhouse Downtown locations.
Retains definitions for the following terms as they apply in this act: (1) net proceeds, (2) promote travel and tourism, and (3) tourism related expenditures.
Directs the Board to adopt a resolution creating the Henderson Tourism Development Authority (Authority) (was, Henderson Travel and Tourism Committee) at the same time that it adopts a resolution levying a room occupancy tax under this act. Requires the resolution to provide for membership, terms of office, and the filling of vacancies on the Authority. Prohibits any member serving more than five consecutive years on the Authority. Provides that the Authority is to have nine voting members and that at least one-third of the members must be individuals who are affiliated with businesses that collect tax in the county and at minimum one-half of the members must be persons who are active in the promotion of tourism and travel in the county. Provides additional guidelines regarding the composition of the membership of the Authority. Provides specific duties of the Authority and requires the Authority to quarterly reports and an end of the fiscal year report to the Board.
Adds a provision directing the Vagabond School of the Drama to submit financial statements of its expenditures of funds it receives under this act on an annual basis to the Authority by October 1. Directs the Board to adopt a resolution establishing the Authority and to make changes to the membership as required by this section on or before September 1, 2012.
Effective July 1, 2014, amends the use of the tax revenue to require the Authority to use at least two-thirds of the tax proceeds to promote travel and tourism in the county and the remainder for other tourism–related expenditures. Deletes provisions that allocated the tax revenue for use of the first 5% to promote travel and tourism and related expenses, and provisions assigning the additional 1% tax proceeds to The Vagabond School of the Drama.
Amends GS 153A-155(g) to include Henderson among the counties and county districts that levy an occupancy tax.
Except as otherwise indicated, this act is effective when it becomes law.

Senate committee substitute makes the following changes to 2nd edition. Amends authority for levy of occupancy and tourism development tax by Henderson County Board of Commissioners to require that net proceeds of additional 1% room occupancy tax be remitted on a quarterly basis until July 1, 2015, to the Flat Rock Playhouse to be used for maintenance, operation, renovation and promotion of mainstage and downtown locations; limits members of the Henderson Tourism Development Authority to serve for no more than five consecutive years; changes one member of the Authority appointed by the Henderson County Board of Commissioners to be upon the recommendation of the Henderson County Chamber of Commerce (was, Greater Hendersonville Chamber of Commerce) and makes other technical and conforming changes.