BILL ANALYSIS

H.B. 1690

By: Flynn

Ways & Means

Committee Report (Unamended)

BACKGROUND AND PURPOSE

State law grants various municipalities the authority to impose a municipal hotel occupancy tax and to use tax revenue to enhance and upgrade sports facilities within a municipality's jurisdiction.  Because the law does not grant a blanket authority applicable to all municipalities, a municipality like the City of Greenville, in Hunt County, cannot use municipal hotel occupancy tax revenue to accommodate certain city development plans and the influx of business and people, nor to promote tourism as other municipalities do by enhancing and upgrading existing sports facilities or fields. H.B. 1690 seeks to address this need by revising the law relating to the use of municipal hotel occupancy tax revenue to enhance and upgrade sports facilities in certain municipalities.

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

H.B. 1690 reenacts and amends Section 351.101(a), Tax Code, as amended by Chapters 402 (H.B. 1789), 1220 (S.B. 1247), and 1322 (H.B. 3098), Acts of the 81st Legislature, Regular Session, 2009, to authorize a municipality that has a population of at least 25,000 but not more than 26,000 and is located in a county that has a population of 90,000 or less to use revenue from the municipal hotel occupancy tax to promote tourism by the enhancement and upgrading of existing sports facilities or fields, including facilities or fields for baseball, softball, soccer, and flag football.

EFFECTIVE DATE

On passage, or, if the bill does not receive the necessary vote, September 1, 2011.