HBA-KDB H.B. 1772 77(R)BILL ANALYSIS Office of House Bill AnalysisH.B. 1772 By: Brimer State Affairs 8/7/2001 Enrolled BACKGROUND AND PURPOSE Under state law, venue projects include arenas, coliseums, stadiums, convention centers, civic center hotels, museums, and any other economic development projects. However, since economic development was not explicitly defined prior to the 77th Legislature and was subject to broad interpretation, the financing options for such projects might not have been clearly defined. In addition, campaigns for elections for venue projects were not subject to the same requirements as political campaigns, especially for campaign materials. This might have led to both proponents and opponents making accusations and statements that might have been inaccurate or untrue without fear of legal retribution. House Bill 1772 includes in the definition of "venue" certain economic development projects in municipalities regarding venue projects, establishes campaign material guidelines for elections related to such projects, and prohibits a person from printing, broadcasting, or publishing campaign material that contains false and misleading information concerning a venue project. 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. ANALYSIS House Bill 1772 amends the Local Government Code to add, in the definition of "venue," certain economic development projects in cities or counties with specified populations. The bill removes from the definition of "venue" any other economic development project authorized by other law (Sec. 334.001). The bill prohibits a person from printing, broadcasting, or publishing, or causing to be printed, broadcasted, or published, campaign material that contains false and misleading information concerning a venue project. The bill authorizes an individual to file a complaint with the Texas Ethics Commission (commission) alleging a violation of these provisions. The bill authorizes the commission to impose a penalty if the commission determines that campaign materials contain false or misleading information. The bill provides that the commission has jurisdiction to consider and investigate a complaint regarding campaign materials with false or misleading information and to impose a penalty (Secs. 334.025 and 335.055). The bill requires a municipality or county to allow a person who is required to collect and remit the short-term motor vehicle rental tax one percent of the amount collected and required to be remitted as reimbursement to the person for the costs of collecting the tax. The bill provides that a person is not entitled to such a reimbursement unless the municipality or county receives the amount required to be collected not later than the 15th day, or if the 15th day is on a weekend or holiday, then the first working day after the 15th day, after the end of the collection period (Sec. 334.1135). The bill authorizes a municipality that is located in three counties, has a population of less than 120,000, and acquires by purchase or lease with a term of not less than 20 years an interest on real property that by the terms of the acquisition is required to be maintained as park property to use revenue to acquire, construct, improve, and equip a venue project that is a convention center facility or related infrastructure on the real property. The bill also authorizes the municipality to pledge the revenue to the payment of bonds or other obligations the municipality issues to finance the convention center facility infrastructure (Sec. 334.2516). The bill modifies the statement on each bill or receipt for a hotel charge subject to the hotel occupancy tax. If a hotel charge is subject to any additional hotel occupancy taxes, the statement must be modified to state each additional entity that imposes a hotel occupancy tax and the rate of that tax (Sec. 334.256). H.B. 1772 amends the Development Corporation Act of 1979 to specify that provisions authorizing a city to submit to the voters of the city a ballot proposition that authorizes a corporation to use the sales and use tax for a specific sports venue project do not affect the authority of a municipality to call an election to levy a sales and use tax for any purpose after the sales and use tax is no longer collected. The bill deletes provisions prohibiting the principal amount of bonds and other obligations from, in the aggregate, exceeding $135 million (Art. 5190.6, V.T.C.S.). EFFECTIVE DATE September 1, 2001.