Tennessee House Bill HB3004

Tennessee 2023-2024 Regular Session

• Introduced: 4/9/24
• Refer: 4/11/24
• Refer: 4/16/24
• Engrossed: 4/18/24
• Enrolled: 4/30/24
• Passed: 5/21/24
• Chaptered: 5/29/24

Caption

AN ACT to amend Chapter 131 of the Private Acts of 1969; as amended by Chapter 85 of the Private Acts of 1987; Chapter 74 of the Private Acts of 1995; Chapter 57 of the Private Acts of 2001 and Chapter 30 of the Private Acts of 2019; and any other acts amendatory thereto, relative to Shelby County.

Impact

The passage of HB 3004 is expected to produce a more sustainable financial environment for the CVB, thereby directly impacting tourism and related economic activities within Shelby County. The bill establishes a framework for the allocation of hotel occupancy tax revenues that prioritizes funding for the CVB, while also ensuring that necessary commitments towards sports infrastructure are fulfilled. This dual approach is intended to bolster both tourism and community facilities, suggesting a move towards an integrated local economic development strategy.

Summary

House Bill 3004 aims to amend the funding structure for the Convention and Visitors Bureau (CVB) in Shelby County, Tennessee. The bill proposes a reallocation of hotel occupancy tax revenues, ensuring that the CVB receives a consistent percentage of the tax returns. As part of the changes, it stipulates that the revenues shall also cover the county's commitments towards the debt service for a new sports arena, which is a significant point of focus in the amendments. Overall, the proposed changes seek to enhance the economic development strategy for the county by ensuring adequate funding for tourism and associated projects.

Sentiment

The sentiment surrounding HB 3004 appears to be largely positive among legislators who recognize the importance of both the tourism sector and sports facilities in driving local revenues. This was reflected in the voting history where the bill passed without opposition, indicating a rare consensus among lawmakers. Nonetheless, the elements concerning budget allocations may provoke discussions regarding the long-term fiscal implications of expanded financial commitments towards the sports sector.

Contention

Notably, some contention may arise regarding the long-term sustainability of the funding model set forth in HB 3004, particularly in light of potential fluctuations in hotel occupancy rates. The reliance on this revenue stream for both the CVB and debt commitments raises questions about the balance of funding priorities, especially during economic downturns. Additionally, there may be concerns from community members regarding how these financial decisions align with broader community needs, particularly in terms of equitable investment in various local interests beyond tourism and sports.