HBA-JRA, RBT H.B. 2844 76(R)BILL ANALYSIS Office of House Bill AnalysisH.B. 2844 By: Brimer Ways & Means 7/26/1999 Enrolled BACKGROUND AND PURPOSE 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 redefines "convention center facilities" or "convention center complex." RULEMAKING AUTHORITY It is the opinion of the Office of House Bill Analysis that this bill does not expressly delegate 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" or "convention center complex." SECTION 2. Amends Section 351. 102, Tax Code, by adding Subsection (c), as follows: (c) Authorizes an eligible central municipality to pledge the revenue derived from municipal hotel occupancy taxes from a hotel project that is owned by or located on land owned by the municipality or by a nonprofit corporation acting on behalf of an eligible central municipality and that is located within 1,000 feet of a convention center owned by the municipality for payment of bonds or other obligations issued or incurred to acquire, lease, construct, and equip the hotel and any facilities ancillary to the hotel. Authorizes an eligible central municipality, for bonds or other obligations issued under this subsection, to pledge only revenue or other assets of the hotel project benefitting from those bonds or other obligations. SECTION 3. Amends Section 2, Chapter 63, Acts of the 59th Legislature, Regular Session, 1965 (Article 1269j-4.1, V.T.C.S.), by adding Subsection (c), as follows: (c) Authorizes an eligible central municipality to establish, acquire, lease as lessee or lessor, purchase, construct, improve, enlarge, equip, repair, operate, or maintain a hotel, and any facilities ancillary to the hotel that are owned by or located on land owned by the municipality or by a nonprofit corporation acting on behalf of an eligible central municipality and that is located within 1,000 feet of a convention center owned by the municipality and to issue bonds or incur other obligations to do so. SECTION 4. Effective date: September 1, 1999. Makes application of this Act prospective in regard to the use of tax revenue pledged to secure bonds; pledged or dedicated for the acquisition of sites and the construction, improvement, enlarging, equipping, repairing, operation, and maintenance of convention center facilities; and for a convention center complex or minor league baseball stadium. SECTION 5. Emergency clause.