BILL ANALYSIS

S.B. 2166

By: Creighton

Ways & Means

Committee Report (Unamended)

BACKGROUND AND PURPOSE

Interested parties suggest that granting certain municipalities, such as the City of Shenandoah, the authority to use municipal hotel occupancy tax revenue on a multiuse facility with a sports component would improve the quality of life in the city and increase the municipalities' ability to contribute to their respective counties and Texas at large. S.B. 2166 seeks to grant that authority.

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

S.B. 2166 amends the Tax Code to authorize a municipality with a population of 6,500 or less that has at least 800 hotel rooms within the corporate boundaries of the municipality and that is located in a county adjacent to a county with a population of 3.3 million or more to use revenue derived from the municipal hotel occupancy tax to directly enhance and promote tourism and the convention and hotel industry by acquiring sites for and constructing, improving, enlarging, equipping, repairing, operating, and maintaining a municipally owned convention center facility; a municipally owned sports-related facility with seating for at least 4,500 people that is used or is planned for use for one or more professional or amateur sports events or other events, including rodeos, livestock shows, and performing arts events; a municipally owned multiuse facility that includes such a convention center facility and sports-related facility; and related infrastructure for all such facilities for a venue. The bill authorizes an applicable municipality that issues obligations secured wholly or partly by revenue derived from the municipal hotel occupancy tax for a use authorized by the bill to use that revenue for those uses as long as the obligations are outstanding even if the municipality is no longer a municipality subject to applicability.

EFFECTIVE DATE

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