BILL ANALYSIS

C.S.H.B. 1789

By: Maldonado

Ways & Means

Committee Report (Substituted)

BACKGROUND AND PURPOSE

In 2004, the Taylor City Council began discussions about building a sports complex for the residents of Taylor and eastern Williamson County. The complex since has developed into a regional sporting venue that both addresses the sporting needs of the community and serves as an economic development project. To assist with construction of the $8 million project, the city received two Parks and Wildlife Department grants and a grant from the county's 2006 bond funds, used proceeds from land sales, and borrowed funds. The project's scheduled completion date is late 2009. Taylor commissioned an economic impact study in 2007, which estimated that the sports complex may generate more than $27,000 annually in hotel and motel occupancy taxes. The revenue from these taxes currently is not authorized to be used for the sports complex or the region's park system, and this bill ensures that these funds will be available to Taylor for investment in the upgrades and enhancements to the complex.

C.S.H.B. 1789 includes a municipality with a population of at least 13,000 but less than 39,000 among those authorized to use municipal hotel occupancy tax revenue to enhance and upgrade sports facilities.

RULEMAKING AUTHORITY

It is the committee's opinion that this bill does not expressly grant any additional rulemaking authority to a state officer, department, agency, or institution.

ANALYSIS

C.S.H.B. 1789 amends the Tax Code to include a municipality that has a population of at least 13,000 but less than 39,000 and is located in a county that has a population of at least 200,000 among the municipalities authorized to use municipal hotel occupancy tax revenue to promote tourism by enhancing and upgrading existing sports facilities or fields.

EFFECTIVE DATE

On passage, or, if the act does not receive the necessary vote, the act takes effect September 1, 2009.

COMPARISON OF ORIGINAL AND SUBSTITUTE

C.S.H.B 1789 refers to a municipality that has a population of at least 13,000 but less than 39,000, whereas the original refers to a municipality that has a population of at least 13,000 but less than 34,000.