SRC-AAA S.B. 893 75(R)BILL ANALYSIS


Senate Research CenterS.B. 893
By: Moncrief
Finance
3-25-97
Committee Report (Amended)


DIGEST 

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

This bill does not grant any additional rulemaking authority to a state
officer, institution, or agency. 

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 440,00 or more, rather than 1,500,00 or
more,  to pledge revenue for payment of obligations of the municipality. 

SECTION 3. Amends Section(2)(a), Article 1269j-4.1, V.T.C.S.,  to provide
that certain facilities owned by a county with a population of 440,000 or
more, rather than 1,500,00 or more, to take certain actions on buildings
or recreational facilities.  Makes a conforming change. 

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.

SUMMARY OF COMMITTEE CHANGES

Amendment 1.

On Page 4, line 18 to Page 5, line 20, strike SECTION 6.