BILL ANALYSIS

C.S.H.B. 2209

By: King, Tracy O.

Ways & Means

Committee Report (Substituted)

BACKGROUND AND PURPOSE

It has been noted that many municipalities in Texas currently have the authority to use certain municipal hotel occupancy tax revenue for constructing, improving, repairing, and operating a recreational facility or an arena used for rodeos, livestock shows, and agricultural expositions. This allows these municipalities the opportunity to improve facilities year-round and not just when in use for tourism purposes. There have been calls to extend this authority to additional municipalities, such as Carrizo Springs. C.S.H.B. 2209 seeks to address this issue by authorizing certain municipalities to use municipal hotel occupancy tax revenue for enhancing and upgrading sports facilities and fields.

CRIMINAL JUSTICE IMPACT

It is the committee's opinion that this bill does not expressly create a criminal offense, increase the punishment for an existing criminal offense or category of offenses, or change the eligibility of a person for community supervision, parole, or mandatory supervision.

RULEMAKING AUTHORITY

It is the committee's opinion that this bill does not expressly grant any additional rulemaking authority to a state officer, department, agency, or institution.

ANALYSIS

C.S.H.B. 2209 amends the Tax Code to authorize a municipality that is the county seat of a county with a population of at least 8,500 that contains part of the Chaparral Wildlife Management Area to use revenue derived from the municipal hotel occupancy tax to promote tourism by enhancing and upgrading an existing sports facility or field, subject to certain conditions.

EFFECTIVE DATE

On passage, or, if the bill does not receive the necessary vote, September 1, 2021.

COMPARISON OF ORIGINAL AND SUBSTITUTE

While C.S.H.B. 2209 may differ from the original in minor or nonsubstantive ways, the following summarizes the substantial differences between the introduced and committee substitute versions of the bill.

The original authorized the municipality to use all or any portion of the tax revenue for the construction and maintenance of a sports facility or the purchase or conversion of a building to serve as a city hall and visitor center, whereas the substitute authorizes the municipality to use the tax revenue to promote tourism by enhancing and upgrading an existing sports facility or field, subject to certain conditions.