SRC-SLL H.B. 2844 76(R)   BILL ANALYSIS


Senate Research Center   H.B. 2844
By: Brimer (Moncrief)
Economic Development
5/13/1999
Engrossed


DIGEST 

Last session, the "stadium bill" clarified the fact that voter approval is
needed before municipal hotel occupancy taxes are used for stadium
construction.  However, in 1998, the city of Round Rock considered
financing a new baseball stadium without voter approval, by dedicating
existing hotel occupancy taxes for "convention center facilities" to the
stadium.  H.B. 2844 sets forth provisions regarding the purposes for which
the municipal hotel occupancy tax may be used.  

PURPOSE

As proposed, H.B. 2844 sets forth provisions regarding the purposes for
which the municipal hotel occupancy tax may be used.  

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" and "convention center complex."  

SECTION 2.  Amends Section 151.429, Tax Code, to provide that the rebate,
refund, or payment of sales and use taxes does not apply to a qualified
hotel project described under Subsection (i).  Authorizes a qualified hotel
project, after January 1, 1999, to be constructed in each eligible central
municipality (municipality), as defined by Section 351.001.  Provides that
this subsection does not apply to a municipality with a population of
1,500,000 or more. 

SECTION 3.  Amends Section 351.102, Tax Code, to authorize a municipality
to pledge the revenue derived from the tax imposed under this chapter from
certain qualified hotel projects for the payment of bonds or other
obligations issued or incurred to acquire, lease, construct, and equip the
hotel. Authorizes a municipality, for bonds or other obligations issued
under this subsection, to only pledge revenue or other assets of the
qualified hotel project benefitting from those bonds or other obligations. 

SECTION 4.  Amends Section 2303.003(8), Government Code, to define
"qualified hotel project." 

SECTION 5.  Amends Section 2, Article 1269j-4.1, V.T.C.S., to authorize a
municipality to take certain actions in regards to certain hotels.
Authorizes a municipality to issue bonds or incur other obligations to
acquire, lease, construct, or equip certain hotels. 

SECTION 6.  Effective date: September 1, 1999.
            Makes application of this Act prospective.

SECTION 7.  Emergency clause.