HBA-KDB H.B. 1772 77(R)BILL ANALYSIS


Office of House Bill AnalysisH.B. 1772
By: Brimer
State Affairs
8/7/2001
Enrolled



BACKGROUND AND PURPOSE 

Under state law, venue projects include arenas, coliseums, stadiums,
convention centers, civic center hotels, museums, and any other economic
development projects.  However, since economic development was not
explicitly defined prior to the 77th Legislature and was subject to broad
interpretation, the financing options for such projects might not have been
clearly defined.  In addition, campaigns for elections for venue projects
were not subject to the same requirements as political campaigns,
especially for campaign materials.  This might have led to both proponents
and opponents making accusations and statements that might have been
inaccurate or untrue without fear of legal retribution.  House Bill 1772
includes in the definition of "venue" certain economic development projects
in municipalities regarding venue projects, establishes campaign material
guidelines for elections related to such projects, and prohibits a person
from printing, broadcasting, or publishing campaign material that contains
false and misleading information concerning a venue project. 

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. 

ANALYSIS

House Bill 1772 amends the Local Government Code to add, in the definition
of "venue," certain economic development projects  in cities or counties
with specified populations.  The bill removes from the definition of
"venue" any other economic development project authorized by other law
(Sec. 334.001). 

The bill prohibits a person from printing, broadcasting, or publishing, or
causing to be printed, broadcasted, or published, campaign material that
contains false and misleading information concerning a venue project. The
bill authorizes an individual to file a complaint with the Texas Ethics
Commission (commission) alleging a violation of these provisions.  The bill
authorizes the commission to impose a penalty if the commission determines
that campaign materials contain false or misleading information.  The bill
provides that the commission has jurisdiction to consider and investigate a
complaint regarding campaign materials with false or misleading information
and to impose a penalty (Secs. 334.025 and 335.055). 

The bill requires a municipality or county to allow a person who is
required to collect and remit the 
 
short-term motor vehicle rental tax one percent of the amount collected and
required to be remitted as reimbursement to the person for the costs of
collecting the tax.  The bill provides that a person is not entitled to
such a reimbursement unless the municipality or county receives the amount
required to be collected not later than the 15th day, or if the 15th day is
on a weekend or holiday, then the first working day after the 15th day,
after the end of the collection period (Sec. 334.1135). 

The bill authorizes a municipality that is located in three counties, has a
population of less than 120,000, and acquires by purchase or lease with a
term of not less than 20 years an interest on real property that by the
terms of the acquisition is required to be maintained as park property to
use revenue to acquire,  construct, improve, and equip a venue project that
is a convention center facility or related infrastructure on the real
property.  The bill also authorizes the municipality to pledge the revenue
to the payment of bonds or other obligations the municipality issues to
finance the convention center facility infrastructure (Sec. 334.2516). 

The bill modifies the statement on each bill or receipt for a hotel charge
subject to the hotel occupancy tax.  If a hotel charge is subject to any
additional hotel occupancy taxes, the statement must be modified to state
each additional entity that imposes a hotel occupancy tax and the rate of
that tax (Sec. 334.256). 

H.B. 1772 amends the Development Corporation Act of 1979 to specify that
provisions authorizing a city to submit to the voters of the city a ballot
proposition that authorizes a corporation to use the sales and use tax for
a specific sports venue project do not affect the authority of a
municipality to call an election to levy a sales and use tax for any
purpose after the sales and use tax is no longer collected.  The bill
deletes provisions prohibiting the principal amount of bonds and other
obligations from, in the aggregate, exceeding $135 million (Art. 5190.6,
V.T.C.S.). 

EFFECTIVE DATE

September 1, 2001.