BILL ANALYSIS

Senate Research Center	H.B. 2353
88R8734 SRA-F	By: Kuempel (Birdwell)
	Natural Resources & Economic Development
	5/8/2023
	Engrossed

AUTHOR'S / SPONSOR'S STATEMENT OF INTENT

Under current law, the City of Seguin is not permitted to use its municipal hotel occupancy tax revenue to enhance or upgrade existing municipally owned sports facilities and fields. H.B. 2353 seeks to authorize Seguin to do so, while implementing guardrails to ensure that the amount of revenue used is no more than the revenue attributable to the sports events and tournaments held on the enhanced or upgraded facilities or fields for five years after the date the enhancements and upgrades are completed.

H.B. 2353 amends current law relating to the use of hotel occupancy tax revenue by certain municipalities.

RULEMAKING AUTHORITY

This bill does not expressly grant any additional rulemaking authority to a state officer, institution, or agency.

SECTION BY SECTION ANALYSIS

SECTION 1. Amends Section 351.101, Tax Code, by adding Subsection (t), as follows:

(t) Authorizes a municipality that is bisected by the Guadalupe River and is the county seat of a county with a population of 170,000 or more, in addition to other authorized uses, to use revenue from the municipal hotel occupancy tax for the promotion of tourism by the enhancement and upgrading of an existing sports facility or field as specified by Subsection (a)(7) (relating to authorizing revenue from the municipal hotel occupancy tax to be used to the promotion of tourism by the enhancement and upgrading of existing sports facilities or fields if certain criteria are met), provided that the requirements of Subsections (a)(7)(A) (relating to authorizing revenue from the municipal hotel occupancy tax to be used to the promotion of tourism by the enhancement and upgrading of existing sports facilities or fields if the municipality owns the facilities or fields) and (C) (relating to authorizing revenue from the municipal hotel occupancy tax to be used to the promotion of tourism by the enhancement and upgrading of existing sports facilities or fields if �the sports facilities and fields have been used, in the preceding calendar year, more than 10 times for certain tournaments) and Section 351.1076 (Allocation of Revenue: Certain Municipalities) are met.

SECTION 2. Effective date: September 1, 2023.