BILL ANALYSIS

C.S.H.B. 3343

By: Bohac

Technology, Economic Development & Workforce

Committee Report (Substituted)

BACKGROUND AND PURPOSE

Currently, the Texas enterprise zone program allows cities and counties to partner with the state to promote economic development and growth.  Under the program, cities and counties nominate businesses that meet certain investment and job creation standards for designation as an enterprise project.  A qualified hotel project is eligible to receive enterprise zone benefits under the program.

C.S.H.B. 3343 amends the Government Code to allow county hotel projects to participate in the enterprise zone program and to authorize a county to refund certain local sales and use taxes paid by a qualified business to encourage the development of areas designated as enterprise zones.

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. 3343 amends the Government Code to add a hotel that meets certain conditions and is proposed to be constructed by a county or a county-sponsored local government corporation to the definition of "qualified hotel project" for purposes of the law relating to refund, rebate, or payment of tax proceeds to a qualified hotel project under the enterprise zone program.  The bill specifies that the conditions include that the hotel is within 1,000 feet of a convention center owned by a municipality having a population of 1.5 million or more or a county having a population of 3.3 million or more, as appropriate.  The bill authorizes the governing body of a municipality or county, rather than only the governing body of a municipality, through a program to refund certain local sales and use taxes paid by a qualified business to encourage the development of areas designated as enterprise zones.

EFFECTIVE DATE

September 1, 2009.

COMPARISON OF ORIGINAL AND SUBSTITUTE

C.S.H.B. 3343 differs from the original by specifying that the hotel be within 1,000 feet of a convention center owned by a municipality having a population of 1.5 million or more or a county having a population of 3.3 million or more, rather than specifying that the hotel be within 1,000 feet of a convention center owned by a municipality or county, as appropriate, having a population of 1.5 million or more, as in the original.