BILL ANALYSIS

H.B. 3838

By: Zerwas

Ways & Means

Committee Report (Unamended)

BACKGROUND AND PURPOSE

Interested parties suggest that convention center hotels assist the state economy by attracting out‑of-state conventions, business meetings, conferences, and visitors to Texas in addition to aiding with local revitalization and development efforts. The purpose of H.B. 3838 is to make certain municipalities, such as the cities of Katy, Sugar Land, and Port Aransas, eligible for certain tax rebates related to the construction of a qualified convention center hotel project.

CRIMINAL JUSTICE IMPACT

It is the committee's opinion that this bill does not expressly create a criminal offense, increase the punishment for an existing criminal offense or category of offenses, or change the eligibility of a person for community supervision, parole, or mandatory supervision.

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. 3838 amends the Tax Code to classify the following municipalities as an "eligible central municipality" for purposes of the municipal hotel occupancy tax: a municipality with a population of 75,000 or more that is located wholly in one county with a population of 575,000 or more that is adjacent to a county with a population of four million or more and that has adopted a capital improvement plan for the construction or expansion of a convention center facility; a municipality with a population of less than 75,000 that is located in three counties, at least one of which has a population of at least four million; and certain eligible barrier island coastal municipalities with a population of at least 3,000 but not more than 5,000.

EFFECTIVE DATE

On passage, or, if the bill does not receive the necessary vote, September 1, 2017.