HBA-JRA, RBT H.B. 2844 76(R)BILL ANALYSIS


Office of House Bill AnalysisH.B. 2844
By: Brimer
Ways & Means
7/26/1999
Enrolled



BACKGROUND AND PURPOSE 

Last session, the "stadium bill" clarified the fact that voter approval is
needed before municipal hotel occupancy taxes are used for stadium
construction.  However, in 1998, the city of Round Rock considered
financing a new baseball stadium without voter approval, by dedicating
existing hotel occupancy taxes for "convention center facilities" to the
stadium.   

H.B. 2844 redefines "convention center facilities" or "convention center
complex." 

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 351.001(2), Tax Code, to redefine "convention
center facilities" or "convention center complex." 

SECTION 2.  Amends Section 351. 102, Tax Code, by adding Subsection (c), as
follows: 

(c)  Authorizes an eligible central municipality to pledge the revenue
derived from municipal hotel occupancy taxes from a hotel project that is
owned by or located on land owned by the municipality or by a nonprofit
corporation acting on behalf of an eligible central municipality and that
is located within 1,000 feet of a convention center owned by the
municipality for payment of bonds or other obligations issued or incurred
to acquire, lease, construct, and equip the hotel and any facilities
ancillary to the hotel.  Authorizes an eligible central municipality, for
bonds or other obligations issued under this subsection, to pledge only
revenue or other assets of the hotel project benefitting from those bonds
or other obligations. 

SECTION 3.  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 as lessee or lessor, purchase, construct, improve, enlarge, equip,
repair, operate, or maintain a hotel, and any facilities ancillary to the
hotel that are owned by or located on land owned by the municipality or by
a nonprofit corporation acting on behalf of an eligible central
municipality and that is located within 1,000 feet of a convention center
owned by the municipality and to issue bonds or incur other obligations to
do so. 

SECTION 4.  Effective date: September 1, 1999.
Makes application of this Act prospective in regard to the use of tax
revenue pledged to secure bonds; pledged or dedicated for the acquisition
of sites and the construction, improvement, enlarging, equipping,
repairing, operation, and maintenance of convention center facilities; and
for a convention center complex or minor league baseball stadium. 

SECTION 5.  Emergency clause.