BILL ANALYSIS

H.B. 3216

By: Klick

Ways & Means

Committee Report (Unamended)

BACKGROUND AND PURPOSE

The City of Richland Hills has requested the authority to use its municipal hotel occupancy tax revenue to construct entertainment and sports venues in municipal parks to help promote additional tourism. H.B. 3216 seeks to authorize Richland Hills to use this revenue to construct a sports facility and amphitheater.

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. 3216 amends the Tax Code to authorize a municipality with a population of more than 7,500 but less than 12,000 that has at least one hotel within 350 feet of a city park and that is wholly located in a county with a population of more than 1.8 million but less than 2.3 million to use municipal hotel occupancy tax revenue for the promotion of tourism and the convention and hotel industry by constructing a sports facility and amphitheater.

H.B. 3216 requires the municipality to make a good-faith estimate of the amount of area hotel revenue that will be generated by events and activities held at the sports facility and amphitheater during the five-year period following the date on which construction is completed and caps the total amount of municipal hotel occupancy tax revenue that the municipality may use for the construction of the sports facility and amphitheater at the estimated area hotel revenue. The bill requires the municipality to reimburse from its general fund to its hotel occupancy tax revenue fund any municipal hotel occupancy tax revenue spent on that construction in excess of that cap at the end of the five-year period.

EFFECTIVE DATE

On passage, or, if the bill does not receive the necessary vote, September 1, 2023.