HBA-ALS H.B. 3241 76(R) BILL ANALYSIS Office of House Bill AnalysisH.B. 3241 By: Green State Affairs 4/27/1999 Introduced BACKGROUND AND PURPOSE In the past, public tax dollars have been used to finance the construction and operation of certain health and fitness facilities without a hearing or voter approval. There a concern that these facilities are being publicly subsidized thereby creating unfair competition for private, for-profit health and fitness facilities. This bill seeks to prohibit the public financing of health and fitness facilities without voter approval. H.B. 3241 prohibits a political subdivision from using public funds to construct or operate a health and fitness facility or expanding a health and fitness service without a hearing and approval by the voters. 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 Subtitle C, Title 10, Local Government Code, by adding Chapter 336, as follows: CHAPTER 336. RESTRICTIONS ON CONSTRUCTION AND OPERATION OF HEALTH AND FITNESS FACILITIES Sec. 336.001. DEFINITIONS. Defines "construct or operate a health and fitness facility," "health and fitness facility," "health and fitness service," and "political subdivision." Sec. 336.002. RESTRICTIONS ON SPENDING. Prohibits a political subdivision from using any public funds to construct or operate a health and fitness facility or expand a health and fitness service offered by the political subdivision unless the use of public funds is approved under this chapter. Sec. 336.003. REQUIRED HEARING. (a) Requires a political subdivision that proposes to use any public funds to construct or operate a health and fitness facility or expand a health and fitness service to hold a hearing on the use of the public funds for that purpose. (b) Requires the governing body of the political subdivision to publish notice of the hearing not less than three times in a newspaper of general circulation in the political subdivision. (c) Authorizes the governing body to receive at the hearing testimony on the number of private health and fitness facilities in or near the political subdivision, including the number of facilities providing similar health and fitness facilities or services and the impact on any private health and fitness facility resulting from the proposed construction or operation of the political subdivision's health and fitness facility or expanded service. Sec. 336.004. GOVERNING BODY APPROVAL. (a) Authorizes the governing body of the political subdivision, after a hearing under Section 336.003, to approve the use of public funds if the governing body adopts a written finding, by a three-fifths or greater vote, that the use of public funds for the construction or operation of a health and fitness facility or the expanded service is necessary because the need for the facility or service is not satisfied by the operation of private health and fitness facilities and will not have an adverse impact on the tax or economic base of the political subdivision as a result of the closing of or loss of tax revenue from any private health and fitness facility operation caused by the construction or operation of a health and fitness facility or the expanded service offered by the political subdivision. (b) Authorizes the authority to spend public funds for the construction or operation of a health and fitness facility or the expanded service only if that action is confirmed by the voters. Requires the governing body, if it adopts a finding under Subsection (a), to order an election to confirm the use of public funds for the construction or operation of the health and fitness facility or the expanded service. Requires the election to be held on the first uniform authorized election date that occurs on or after the 45th day after the date the finding is approved. Sec. 336.005. BALLOT PROPOSITION. Sets forth the required ballot language. Sec. 336.006. RESULTS OF ELECTION. Authorizes the governing body of the political subdivision to use the public funds for the designated purpose if a majority of the votes received in the election favor the use of public funds. SECTION 2. Amends Subtitle F, Title 10, Government Code, by adding Chapter 2259, as follows: CHAPTER 2259. RESTRICTIONS ON CONSTRUCTION AND OPERATION OF CERTAIN STATE HEALTH AND FITNESS FACILITIES Sec. 2259.001. DEFINITION. Defines "state agency. Sec. 2259.002. RESTRICTIONS ON CERTAIN SPENDING BY STATE AGENCIES. (a) Provides that the restrictions and requirements imposed on a political subdivision under Sections 336.001-336.003, Local Government Code, apply to a state agency. (b) Requires a state agency to hold a hearing in the same manner that a political subdivision holds a hearing under Section 336.003, Local Government Code, before a state agency uses any public funds to construct or operate a health or fitness facility or expand a health and fitness service offered by the state agency. Sec. 2259.003. AGENCY APPROVAL REQUIRED. (a) Authorizes the governing body of a state agency, after a hearing under Section 2259.002, to approve the use of public funds if the governing body adopts a written finding, by a three-fifths or greater vote, approving the use of the funds to construct or operate a health or fitness facility or expand a health and fitness service offered by the state agency. (b) Provides that a finding adopted under this section must comply with the requirements of Section 336.004(a), Local Government Code. SECTION 3. (a) Effective date: September 1, 1999. (b) Makes application of this Act prospective. (c) Provides that this Act does not apply to a health and fitness service offered or a health and fitness facility operated by a political subdivision or a state agency before the effective date of this Act if the service is offered or facility is operated at the same level as the service or facility provided before the effective date of this Act. SECTION 4.Emergency clause.