1-1 By: Coleman (Senate Sponsor - Henderson) H.B. No. 2282
1-2 (In the Senate - Received from the House April 26, 1993;
1-3 April 27, 1993, read first time and referred to Committee on
1-4 Intergovernmental Relations; April 29, 1993, reported adversely,
1-5 with favorable Committee Substitute by the following vote: Yeas 8,
1-6 Nays 0; April 29, 1993, sent to printer.)
1-7 COMMITTEE VOTE
1-8 Yea Nay PNV Absent
1-9 Armbrister x
1-10 Leedom x
1-11 Carriker x
1-12 Henderson x
1-13 Madla x
1-14 Moncrief x
1-15 Patterson x
1-16 Rosson x
1-17 Shapiro x
1-18 Wentworth x
1-19 Whitmire x
1-20 COMMITTEE SUBSTITUTE FOR H.B. No. 2282 By: Henderson
1-21 A BILL TO BE ENTITLED
1-22 AN ACT
1-23 relating to certain hotel facilities.
1-24 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
1-25 SECTION 1. Section 351.001(2), Tax Code, is amended to read
1-26 as follows:
1-27 (2) "Convention center facilities" or "convention
1-28 center complex" means civic centers, civic center buildings,
1-29 auditoriums, exhibition halls, and coliseums that are owned by the
1-30 municipality or other governmental entity or that are managed in
1-31 whole or part by the municipality, hotels owned by the municipality
1-32 or a nonprofit municipally sponsored local government corporation
1-33 created pursuant to the Texas Transportation Corporation Act
1-34 (Article 1528l, Vernon's Texas Civil Statutes) within 1,000 feet of
1-35 a convention center owned by a municipality with a population of
1-36 1,500,000 or more. The term includes parking areas or facilities
1-37 that are for the parking or storage of conveyances and that are
1-38 located at or in the <immediate> vicinity of other convention
1-39 center facilities.
1-40 SECTION 2. Section 352.101(a), Tax Code, is amended to read
1-41 as follows:
1-42 (a) The revenue from a tax imposed under this chapter by a
1-43 county having a population of more than two million may be used
1-44 only for:
1-45 (1) the acquisition of sites for and the construction,
1-46 improvement, enlarging, equipping, repairing, operation, and
1-47 maintenance of public improvements such as civic centers, civic
1-48 center buildings, auditoriums, exhibition halls, coliseums, and
1-49 stadiums, including sports and other facilities that serve the
1-50 purpose of attracting visitors and tourists to the county, and
1-51 parking areas or facilities for the parking or storage of motor
1-52 vehicles or other conveyances, hotels owned by a municipality or a
1-53 nonprofit municipally sponsored local government corporation
1-54 created pursuant to the Texas Transportation Corporation Act
1-55 (Article 1528l, Vernon's Texas Civil Statutes) within 1,000 feet of
1-56 a convention center owned by a municipality with a population of
1-57 1,500,000 or more <located at or in the immediate vicinity of the
1-58 facilities>;
1-59 (2) the furnishing of facilities, personnel, and
1-60 materials for the registration of convention delegates or
1-61 registrants; and
1-62 (3) general promotion and tourist advertising of the
1-63 county and its vicinity and conducting a solicitation program to
1-64 attract conventions and visitors, any of which may be conducted by
1-65 the county or through contracts with persons or organizations
1-66 selected by the county.
1-67 SECTION 3. Section 351.102(a), Tax Code, is amended to read
1-68 as follows:
2-1 (a) Subject to the limitations provided by this subchapter,
2-2 a municipality may pledge the revenue derived from the tax imposed
2-3 under this chapter for the payment of bonds that are issued under
2-4 Section 3, Chapter 63, Acts of the 59th Legislature, Regular
2-5 Session, 1965 (Article 1269j-4.1, Vernon's Texas Civil Statutes),
2-6 for one or more of the purposes provided by Section 351.101 or, in
2-7 the case of a municipality of 1,500,000 or more, for the payment of
2-8 principal of or interest on bonds or other obligations of a
2-9 municipally sponsored local government corporation created pursuant
2-10 to the Texas Transportation Corporation Act (Article 1528l,
2-11 Vernon's Texas Civil Statutes) that were issued to pay the cost of
2-12 the acquisition and construction of a convention center hotel;
2-13 provided, however, such pledge may only be that portion of the tax
2-14 collected at such hotel.
2-15 SECTION 4. Section 2(a), Chapter 63, Acts of the 59th
2-16 Legislature, Regular Session, 1965 (Article 1269j-4.1, Vernon's
2-17 Texas Civil Statutes), is amended to read as follows:
2-18 (a) Any such city is hereby authorized to establish,
2-19 acquire, lease as lessee or lessor, purchase, construct, improve,
2-20 enlarge, equip, repair, operate or maintain (any or all) <public>
2-21 improvements such as civic centers, civic center buildings,
2-22 auditoriums, opera houses, music halls, exhibition halls,
2-23 coliseums, museums, libraries, or other city buildings (either or
2-24 all), <and> golf courses, tennis courts, and other similar
2-25 recreational facilities, hotels owned by a municipality or a
2-26 nonprofit municipally sponsored local government corporation
2-27 created pursuant to the Texas Transportation Corporation Act
2-28 (Article 1528l, Vernon's Texas Civil Statutes) within 1,000 feet of
2-29 a convention center owned by a municipality with a population of
2-30 1,500,000 or more, and to establish, acquire, lease as lessee or
2-31 lessor, purchase, construct, improve, enlarge, equip, repair,
2-32 operate or maintain (any or all) structures, parking areas, or
2-33 facilities, located at or in the immediate vicinity of such public
2-34 improvements, to be used in connection with such <public>
2-35 improvements for off-street parking or storage of motor vehicles or
2-36 other conveyances; and provided that any such lease shall be on
2-37 such terms and conditions as said city shall deem appropriate.
2-38 SECTION 5. Section 3(a)(11), Texas Enterprise Zone Act
2-39 (Article 5190.7, Vernon's Texas Civil Statutes), is amended to read
2-40 as follows:
2-41 (11) "Qualified business" means a person, including a
2-42 corporation or other entity, that the department, for purposes of
2-43 state benefits under this Act, and a governing body, for purposes
2-44 of local benefits, certifies to have met the following criteria:
2-45 (A) the person is engaged in or has provided
2-46 substantial commitment to initiate the active conduct of a trade or
2-47 business in the zone; and
2-48 (B) at least 25 percent of the business's new
2-49 employees in the zone are residents of any zone within the
2-50 governing body's or bodies' jurisdiction or economically
2-51 disadvantaged individuals; or
2-52 (C) is a qualified hotel project that is owned
2-53 by a municipality with a population of 1,500,000 or more or a
2-54 nonprofit municipally sponsored local government corporation
2-55 created pursuant to the Texas Transportation Corporation Act
2-56 (Article 1528l, Vernon's Texas Civil Statutes).
2-57 SECTION 6. Section 3(a), Texas Enterprise Zone Act (Article
2-58 5190.7, Vernon's Texas Civil Statutes), is amended by adding
2-59 Subdivisions (14) and (15) to read as follows:
2-60 (14) "Qualified hotel project" means a hotel proposed
2-61 to be constructed by a municipality or a nonprofit municipally
2-62 sponsored local government corporation created pursuant to the
2-63 Texas Transportation Corporation Act (Article 1528l, Vernon's Texas
2-64 Civil Statutes) that is within 1,000 feet of a convention center
2-65 owned by a municipality having a population of 1,500,000 or more,
2-66 including all facilities ancillary thereto such as shops and
2-67 parking facilities.
2-68 A qualified hotel project shall be deemed to have met the
2-69 employment, income, and other criteria of a qualified business and
2-70 an enterprise project, and the enterprise zone in which the
3-1 qualified hotel project is located shall be deemed to have met all
3-2 qualifications of this Act to permit the department to designate
3-3 the qualified hotel project as an enterprise project.
3-4 (15) "Eligible taxable proceeds" means taxable
3-5 proceeds generated, paid, or collected by a qualified hotel project
3-6 or a business at a qualified hotel project, including hotel
3-7 occupancy taxes, ad valorem taxes, sales and use taxes, and mixed
3-8 beverage taxes.
3-9 SECTION 7. Section 13, Texas Enterprise Zone Act (Article
3-10 5190.7, Vernon's Texas Civil Statutes), is amended to read as
3-11 follows:
3-12 Sec. 13. REDUCTION OR ELIMINATION OF FEES AND TAXES.
3-13 (a) To promote the public health, safety, or welfare, the
3-14 governing body of a municipality or county may establish a program
3-15 by which it reduces or eliminates any fees or taxes, other than
3-16 sales and use or property taxes, that it imposes on a qualified
3-17 business or qualified employee. The governing body of a
3-18 municipality or county may not reduce or eliminate local sales and
3-19 use taxes except to the extent it grants a rebate or refund or
3-20 provides a payment under this section or Section 12 of this Act.
3-21 (b) A municipality, county, political subdivision, or other
3-22 governmental body may enter into an agreement to rebate, refund, or
3-23 pay eligible taxable proceeds to the owner of the qualified hotel
3-24 project at which such eligible taxable proceeds were generated or
3-25 collected for a period not to exceed ten years. A municipality
3-26 with a population of 1,500,000 or more may enter into an agreement
3-27 to guarantee from hotel occupancy taxes the bonds or other
3-28 obligations of a municipally sponsored local government corporation
3-29 created pursuant to the Texas Transportation Corporation Act
3-30 (Article 1528l, Vernon's Texas Civil Statutes) that were issued or
3-31 incurred to pay the cost of constructing, remodeling, or
3-32 rehabilitating a qualified hotel project. Any agreement must be in
3-33 writing, contain an expiration date, and require the beneficiary to
3-34 provide documentation necessary to support a claim. The
3-35 municipality, county, political subdivision, or other governmental
3-36 body that enters into any such agreement shall make the rebate,
3-37 refund, or payment directly to the beneficiary set out in the
3-38 agreement.
3-39 SECTION 8. The Texas Enterprise Zone Act (Article 5190.7,
3-40 Vernon's Texas Civil Statutes) is amended by adding Section 10A to
3-41 read as follows:
3-42 Sec. 10A. DESIGNATION OF QUALIFIED HOTEL PROJECT AS
3-43 ENTERPRISE PROJECT. A qualified hotel project may be designated by
3-44 the department as an enterprise project prior to or after August
3-45 31, 1993. New permanent jobs created by the qualified hotel
3-46 project shall not be considered in determining the number of
3-47 enterprise projects that the department may approve pursuant to the
3-48 other provisions of this Act.
3-49 SECTION 9. Section 151.429(e), Tax Code, is amended to read
3-50 as follows:
3-51 (e) In this section, "enterprise project," "enterprise
3-52 zone," "qualified hotel project," "new permanent job," and
3-53 "qualified employee" have the meanings assigned to those terms by
3-54 Section 3, Texas Enterprise Zone Act (Article 5190.7, Vernon's
3-55 Texas Civil Statutes).
3-56 SECTION 10. Section 151.429, Tax Code, is amended by adding
3-57 Subsection (h) to read as follows:
3-58 (h) Notwithstanding the other provisions of this section,
3-59 the owner of a qualified hotel project shall receive a rebate,
3-60 refund, or payment of 100 percent of the sales and use taxes paid
3-61 or collected by the qualified hotel project or businesses located
3-62 in the qualified hotel project pursuant to this chapter and 100
3-63 percent of the hotel occupancy taxes paid by persons for the use or
3-64 possession of or for the right to the use or possession of a room
3-65 or space at the qualified hotel project pursuant to the provisions
3-66 of Chapter 156 during the first seven years after such qualified
3-67 hotel project is open for initial occupancy.
3-68 SECTION 11. The legislature recommends to the governing body
3-69 of a municipality having a population of 1.5 million or more
3-70 operating a qualified hotel project under this Act that it adopt
4-1 the aggregate goals for the municipality's contracting with
4-2 minority and women enterprises set forth in the June 1992, report
4-3 of Texas Southern University as specified for the categories of
4-4 construction, procurement, and professional services. A cause of
4-5 action may not be maintained to enforce this Section or to recover
4-6 damages based on the failure of the municipality to follow the
4-7 recommendation of this Section.
4-8 SECTION 12. The importance of this legislation and the
4-9 crowded condition of the calendars in both houses create an
4-10 emergency and an imperative public necessity that the
4-11 constitutional rule requiring bills to be read on three several
4-12 days in each house be suspended, and this rule is hereby suspended,
4-13 and that this Act take effect and be in force from and after its
4-14 passage, and it is so enacted.
4-15 * * * * *
4-16 Austin,
4-17 Texas
4-18 April 29, 1993
4-19 Hon. Bob Bullock
4-20 President of the Senate
4-21 Sir:
4-22 We, your Committee on Intergovernmental Relations to which was
4-23 referred H.B. No. 2282, have had the same under consideration, and
4-24 I am instructed to report it back to the Senate with the
4-25 recommendation that it do not pass, but that the Committee
4-26 Substitute adopted in lieu thereof do pass and be printed.
4-27 Armbrister,
4-28 Chairman
4-29 * * * * *
4-30 WITNESSES
4-31 FOR AGAINST ON
4-32 ___________________________________________________________________
4-33 Name: Morgan A. Hill x
4-34 Representing: Self
4-35 City: Houston
4-36 -------------------------------------------------------------------
4-37 Name: Michael White x
4-38 Representing: Greater Houston Partnership
4-39 City: Houston
4-40 -------------------------------------------------------------------
4-41 Name: Robert R. Randolph x
4-42 Representing: Central Houston Inc.
4-43 City: Houston
4-44 -------------------------------------------------------------------
4-45 Name: Jordy Tollett x
4-46 Representing: City of Houston
4-47 City: Houston
4-48 -------------------------------------------------------------------
4-49 Name: Eddie Webster x
4-50 Representing: Houston Convention Visitor B.
4-51 City: Houston
4-52 -------------------------------------------------------------------
4-53 Name: Robert Eury x
4-54 Representing: Central Houston, Inc.
4-55 City: Houston
4-56 -------------------------------------------------------------------
4-57 Name: Jim Short x
4-58 Representing: Self
4-59 City: Fulshear
4-60 -------------------------------------------------------------------