BILL ANALYSIS

Senate Research Center	S.B. 1837
88R13015 CJD-D	By: Hinojosa
	Natural Resources & Economic Development
	4/7/2023
	As Filed

AUTHOR'S / SPONSOR'S STATEMENT OF INTENT

The City of Alice, Texas, has existing sport and event facilities and fields, including park facilities and fields, that are regularly utilized by statewide, regional, and out of town visitors. As part of traveling to the city, those visitors tend to stay in the hotels in Alice. Interested parties assert that upgrading existing sports facilities or fields will attract more visitors for recreational tournaments and generate new money for state and local treasuries.

S.B. 1837 amends the Tax Code to authorize the City of Alice to use revenue from the municipal hotel occupancy tax to promote tourism by enhancing and upgrading an existing sports facility or field, subject to certain conditions and spending caps under Section 351.1076, Tax Code. The bill gives the City of Alice the same authorization given to the City of Carrizo Springs in 2021.

As proposed, S.B. 1837 amends current law relating to the use of municipal 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 Subchapter B, Chapter 351, Tax Code, by adding Section 351.10691, as follows:

Sec. 351.10691.  ALLOCATION OF REVENUE: CERTAIN MUNICIPALITIES. (a) Provides that this section applies only to a municipality that is the county seat of a county that:

(1)  has a population of less than 40,000;

(2)  contains a portion of Lake Corpus Christi; and

(3)  is adjacent to a county that has a population of less than 400,000 and contains a municipality with a population of at least 300,000.

(b) Authorizes a municipality to which this section applies, in addition to other authorized uses, to use revenue derived from the tax imposed under Chapter 351 (Municipal Hotel Occupancy Taxes) to promote tourism by enhancing and upgrading an existing sports facility or field, provided that the municipality complies with Section 351.1076 (Allocation of Revenue: Certain Municipalities).

SECTION 2. Amends Section 351.1076(a), Tax Code, as follows:

(a) Requires that a municipality that spends municipal hotel occupancy tax revenue for the enhancement and upgrading of existing sports facilities or fields as authorized by certain sections, including Section 351.10691, meet certain requirements.

SECTION 3. Effective date: September 1, 2023.