House committee substitute makes the following changes to the 2nd edition.

Amends Section 7(d) of SL 2006-167 to modify the use of the 3 percent occupancy tax currently levied in the unincorporated areas of New Hanover County (New Hanover County District U). For purposes of this subsection, defines the term Authorityto mean the Cape Fear Coast Convention and Visitors Bureau, established as a tourism development authority.

Provides that within 30 days of the effective date of this act, the New Hanover County District U (District U) must remit net proceeds from the room occupancy and tourism development tax that have been collected by the district before July 1, 2014, to the Authority. Requires the Authority to use 100 percent of the funds remitted for tourism-related expenditures in the district. Provides that after July 1, 2014, District U is to remit the net proceeds of the collected tax to the Authority on a quarterly basis. Directs the Authority to use at least 2/3 of the funds remitted to it for tourism promotion and use the remainder for tourism-related expenditures in District U (was, required that the funds from the tax be used for beach renourishment or inlet maintenance but prohibited the use of the tax proceeds for those purposes outside of New Hanover County District U).