1-1 By: Rodriguez, et al. (Senate Sponsor - Madla) H.B. No. 1264 1-2 (In the Senate - Received from the House April 20, 1993; 1-3 April 21, 1993, read first time and referred to Committee on 1-4 Finance; May 13, 1993, reported favorably by the following vote: 1-5 Yeas 12, Nays 0; May 13, 1993, sent to printer.) 1-6 COMMITTEE VOTE 1-7 Yea Nay PNV Absent 1-8 Montford x 1-9 Turner x 1-10 Armbrister x 1-11 Barrientos x 1-12 Bivins x 1-13 Ellis x 1-14 Haley x 1-15 Moncrief x 1-16 Parker x 1-17 Ratliff x 1-18 Sims x 1-19 Truan x 1-20 Zaffirini x 1-21 A BILL TO BE ENTITLED 1-22 AN ACT 1-23 relating to the rate at which certain municipalities may impose the 1-24 hotel occupancy tax and to the use of the revenue from the tax. 1-25 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: 1-26 SECTION 1. Section 351.001, Tax Code, is amended by adding 1-27 Subdivision (8) to read as follows: 1-28 (8) "Eligible central municipality" means a 1-29 municipality with a population of more than 850,000 that has 1-30 adopted a capital improvement plan for the expansion of an existing 1-31 convention center facility. 1-32 SECTION 2. Section 351.003, Tax Code, is amended by adding 1-33 Subsection (c) to read as follows: 1-34 (c) The rate in an eligible central municipality may not 1-35 exceed nine percent of the price paid for a room. This subsection 1-36 does not apply to a municipality to which Section 351.1015 or 1-37 351.106 applies. 1-38 SECTION 3. Subchapter B, Chapter 351, Tax Code, is amended 1-39 by adding Section 351.1065 to read as follows: 1-40 Sec. 351.1065. ALLOCATION OF REVENUE: ELIGIBLE CENTRAL 1-41 MUNICIPALITY. (a) An eligible central municipality shall use the 1-42 amount of revenue from the tax that is derived from the application 1-43 of the tax at a rate of more than seven percent of the cost of a 1-44 room only for: 1-45 (1) the construction of an expansion of an existing 1-46 convention center facility; and 1-47 (2) pledging payment of revenue bonds and revenue 1-48 refunding bonds issued under Chapter 63, Acts of the 59th 1-49 Legislature, Regular Session, 1965 (Article 1269j-4.1, Vernon's 1-50 Texas Civil Statutes), for the construction of the expansion. 1-51 (b) Any interest income derived from the application of the 1-52 tax at a rate of more than seven percent of the cost of a room may 1-53 be used only for the purposes provided by this section. 1-54 (c) An eligible central municipality expending tax revenue 1-55 under this section shall attempt to include minority-owned 1-56 businesses in the issuance of at least 32 percent of the total 1-57 dollar value of the bonds issued, and in at least 32 percent of the 1-58 total fees paid by the issuer, in connection with the construction. 1-59 SECTION 4. If on or after the effective date of this Act a 1-60 municipality increases the rate of the tax authorized by Section 1-61 351.003(c), Tax Code, as added by this Act, the increased tax rate 1-62 does not apply to the tax imposed on the use or possession of a 1-63 room under a contract executed before the effective date of this 1-64 Act that provides for the payment of the tax at the rate in effect 1-65 when the contract was executed, unless the contract is subject to 1-66 change or modification by reason of the tax rate increase. The tax 1-67 rate applicable to the use or possession of a room under the 1-68 contract is the rate in effect when the contract was executed, and 2-1 the law governing that rate is continued in effect for that 2-2 purpose. 2-3 SECTION 5. The importance of this legislation and the 2-4 crowded condition of the calendars in both houses create an 2-5 emergency and an imperative public necessity that the 2-6 constitutional rule requiring bills to be read on three several 2-7 days in each house be suspended, and this rule is hereby suspended, 2-8 and that this Act take effect and be in force from and after its 2-9 passage, and it is so enacted. 2-10 * * * * * 2-11 Austin, 2-12 Texas 2-13 May 13, 1993 2-14 Hon. Bob Bullock 2-15 President of the Senate 2-16 Sir: 2-17 We, your Committee on Finance to which was referred H.B. No. 1264, 2-18 have had the same under consideration, and I am instructed to 2-19 report it back to the Senate with the recommendation that it do 2-20 pass and be printed. 2-21 Montford, 2-22 Chairman 2-23 * * * * * 2-24 WITNESSES 2-25 FOR AGAINST ON 2-26 ___________________________________________________________________ 2-27 Name: Don Hansen x 2-28 Representing: Texas Hotel & Motel Assn 2-29 City: Austin 2-30 -------------------------------------------------------------------