JKM S.B. 893 75(R)BILL ANALYSIS ECONOMIC DEVELOPMENT S.B. 893 By: Moncrief (Lewis, Glenn) 4-15-97 Committee Report (Unamended) BACKGROUND Currently, the law provides for cities with a population of 1,500,000 or more to pledge certain hotel tax revenues for the acquisition and construction of a convention center hotel. Recently, a hotel study confirmed that Fort Worth currently lacks adequate hotel space to accommodate and compete for medium to large conventions. This bill authorizes cities with a population of 440,000 or more to have the ability to use hotel occupancy taxes and sales and use taxes collected at a municipallyowned hotel project that is within an enterprise zone and within 1,000 feet of a city-or county-owned convention center, to be rebated for a period of 10 years to the municipality to pay the bonds to construct the hotel. PURPOSE As proposed, S.B. 893 authorizes cities with a population of 440,000 or more to have the ability to use hotel occupancy taxes and sales and use taxes collected at a municipally-owned hotel project that is within an enterprise zone and within 1,000 feet of a city-or county-owned convention center, to be rebated for a period of 10 years to the municipality to pay the bonds to construct the hotel. 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. SECTION BY SECTION ANALYSIS SECTION 1. Amends Section 351.001(2), Tax Code, to redefine "convention center facilities." SECTION 2. Amends Section 351.102(a), Tax Code, to authorize a municipality with a population of 440,000 or more, rather than 1,500,000 or more, to pledge revenue for payment of obligations of the municipality. SECTION 3. Amends Section(2)(a), Chapter 63, Article 1269j-4.1, V.T.C.S., to provide that certain facilities owned by a county or municipality with a population of 440,000 or more, rather than 1,500,000 or more, to take certain actions on buildings or recreational facilities. SECTION 4. Amends Section 2303.003(8), Government Code, to redefine "qualified hotel project." SECTION 5. Amends Section 2303.5055(b), Government Code, to authorize a municipality with a population of 440,000 or more to agree to guarantee obligations of the municipality from certain taxes. SECTION 6. Emergency clause. Effective date: upon passage.