SRC-JJJ S.B. 790 76(R)   BILL ANALYSIS


Senate Research Center   S.B. 790
76R8187 DAK-FBy: Moncrief
Intergovernmental Relations
3/17/1999
As Filed


DIGEST 

Currently, Texas law allows 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.  Cities in the five counties accounting for
most of the travel expenditures in the state have or are currently updating
their convention center facilities, due to a lack of up-to-date convention
center infrastructure.  S.B. 790 would authorize each eligible municipality
to use hotel occupancy taxes collected at a hotel project that is owned by
or located on land owned by a municipality or by a nonprofit corporation
acting on behalf of a municipality, and which is located within 1,000 feet
of a city- or county-owned convention center, to pay the bonds to construct
the hotel. 

PURPOSE

As proposed, S.B. 790 sets forth certain provisions regarding hotel
facilities. 

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

SECTION 2.  Amends Section 351.001(2), Tax Code, to redefine "convention
center facilities" or "convention center complex." 

SECTION 3.  Amends Section 351.102, Tax Code, by adding Subsection (c), to
authorize an eligible central municipality to pledge the revenue derived
from the tax imposed under this chapter from a hotel that is owned by or
located on land owned by the municipality or by certain nonprofit
corporations and is located 1,000 feet of a convention center facility
owned by the municipality for the payment of bonds issued for the
construction of the hotel. 

SECTION 4.  Amends Section 2303.003(8), Government Code, to redefine
"qualified hotel project." 
 
SECTION 5.  Amends Chapter 63(2), Article 1269j-4.1, V.T.C.S., by adding
Subsection (c), to authorize an eligible central municipality to establish,
acquire, purchase, or maintain a hotel that is owned by or located on land
owned by the municipality or certain nonprofit corporations and is located
within 1,000 feet of a convention center facility owned by the
municipality.  Authorizes the eligible central municipality to issue bonds
or incur other obligations to acquire, lease, construct, or equip a hotel
that is located on that land. 

SECTION 6.  Effective date: September 1, 1999.

SECTION 7.  Emergency clause.