HBA-ALS H.B. 2082 76(R) BILL ANALYSIS Office of House Bill AnalysisH.B. 2082 By: Lewis, Glenn Economic Development 3/22/1999 Introduced BACKGROUND AND PURPOSE Current law allows a city with a population of 1,500,000 or more to pledge certain hotel tax revenues to acquire and construct a hotel to be used in association with a convention center. The purpose of this bill is to allow smaller municipalities to update their convention center hotel infrastructures in order to attract business and travel to these cities. H.B. 2082 allows the construction of a qualified hotel project in each eligible central municipality with a population of less than 1,500,000. This bill expands the definitions of "convention center facilities," "convention center complex," and "qualified hotel project." In addition, this bill allows an eligible central municipality to pledge specified tax revenue to pay for bonds issued for certain hotel construction; to establish, acquire, lease, purchase, construct, improve, enlarge, equip, repair, operate, or maintain a particular hotels; and to issue bonds or incur other obligations to acquire, lease, construct, or equip particular hotels. RULEMAKING AUTHORITY It is the opinion of the Office of House Bill Analysis that this bill does not expressly delegate any additional rulemaking authority to a state officer, department, agency, or institution. SECTION BY SECTION ANALYSIS SECTION 1. Amends Section 151.429, Tax Code, by amending Subsection (h) and adding Subsection(i), as follows: (h) Provides that the rebate, refund, or payment of sales and use taxes to the owner of a qualified hotel project does not apply to a qualified hotel project described under Subsection (i). Makes nonsubstantive changes. (i) Authorizes the construction of a qualified hotel project in each eligible central municipality, as defined by Section 351.001, Tax Code (Definitions), after January 1, 1999. Provides that this subsection does not apply to a municipality with a population of 1,500,000 or more. SECTION 2. Amends Section 351.001(2), Tax Code, to include within the definitions of "convention center facilities" and "convention center complex" a hotel owned by or located on land owned by an eligible central municipality or by a nonprofit corporation that is acting on the behalf of such a municipality and is within 1,000 feet of the municipality's convention center facility. SECTION 3. Amends Section 351.102, Tax Code, to authorize an eligible central municipality to pledge for the payment of bonds issued for the hotel's construction, the tax revenue derived from a hotel owned or located on land owned by the municipality or by a nonprofit corporation that is acting on behalf of the municipality and is within 1,000 feet of the municipality's convention center facility. SECTION 4. Section 2303.003(8), Government Code, to include within the definition of "qualified hotel project" a hotel owned by or located on land owned by an eligible central municipality or by a nonprofit corporation that is acting on behalf of the municipality and is within 1,000 feet of the municipality's convention center facility, including shops, parking facilities, and facilities ancillary to the hotel. SECTION 5. Amends Section 2, Chapter 63, Acts of the 59th Legislature, Regular Session, 1965, Article 1269j-4.1, V.T.C.S., by adding Subsection (c), as follows: (c) Authorizes an eligible central municipality to establish, acquire, lease, purchase, construct, improve, enlarge, equip, repair, operate, or maintain a hotel that is owned by or located on land owned by the municipality or by a nonprofit corporation that is acting on the behalf of the municipality and is within 1,000 feet of the municipality's convention center facility. Authorizes an eligible central municipality to issue bonds or incur other obligations to acquire, lease, construct, or equip a hotel that is owned by or located on land owned by the municipality or by a nonprofit corporation that is acting on the behalf of the municipality and is within 1,000 feet of the municipality's convention center facility. SECTION 6.Effective date: September 1, 1999. SECTION 7.Emergency clause.