BILL ANALYSIS

H.B. 4563

By: Longoria

Ways & Means

Committee Report (Unamended)

BACKGROUND AND PURPOSE

The City of San Benito is currently making progress on the development of multiple projects in the city. For example, the city has approved a sports and community venue project, is beginning to develop its Rio Grande Valley epicenter project that will be developed in stages, and is exploring the development of a convention center or multiuse facility. H.B. 4563 seeks to give the city greater flexibility in developing its projects by authorizing the city to use revenue from the municipal hotel occupancy tax to pay for certain costs associated with the development of a convention center or multiuse facility and by authorizing the city to hold an election to get voter approval for the development of a convention center and related infrastructure as part of an existing or previously approved sports and community venue project and an increased hotel occupancy tax rate to finance that development.

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. 4563 amends the Local Government Code to authorize a municipality that has a population of not more than 25,000, contains a cultural heritage museum, and is located in a county that borders the United Mexican States and the Gulf of Mexico to hold an election on the question of approving and implementing a resolution to do the following:

· authorize the municipality to plan, acquire, establish, develop, construct, or renovate a convention center and related infrastructure as part of an existing or previously approved sports and community venue project;

· impose a hotel occupancy tax under statutory provisions relating to certain sports and community venues capped at two percent of the cost of a room; and

· authorize the municipality to finance, operate, and maintain the venue project.

H.B. 4563 amends the Tax Code to include such a municipality as an eligible central municipality for purposes of provisions relating to municipal hotel occupancy taxes and to authorize the municipality to use revenue from the municipal hotel occupancy tax to pay costs associated with the construction, expansion, maintenance, financing, operation, or debt service of a convention center or multiuse facility. The bill raises the cap on the municipal hotel occupancy tax rate such a municipality may impose from seven percent of the price paid for a room in a hotel to nine percent of that price and requires the municipality to allocate all revenue received by the municipality that is derived from that two percent increase for the construction, expansion, maintenance, financing, operation, or debt service of a convention center or multiuse facility.

EFFECTIVE DATE

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