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


Senate Research CenterC.S.S.B. 790
76R10185 DAK-DBy: Moncrief
Intergovernmental Relations
3/25/1999
Committee Report (Substituted)


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.  C.S.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, C.S.S.B. 790 sets forth provisions regarding certain 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 imposed tax from a qualified hotel project that is owned by or
located on land owned by the municipality or by certain nonprofit
corporations and is located within 1,000 feet of a convention center
facility owned by the municipality for the payment of bonds or other
obligations issued or incurred for acquiring, leasing, constructing, or
equipping the hotel.  Authorizes an eligible central municipality to only
pledge revenue or other assets of the qualified hotel project benefiting
from those bonds or other obligations. 

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.

SUMMARY OF COMMITTEE CHANGES

SECTION 3.

Amends Section 351.102, Tax Code, 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 an eligible central
municipality to only pledge revenue or other assets of the qualified hotel
project benefiting from those bonds or other obligations.