BILL ANALYSIS


                                                         H.B. 609
                                               By: Brimer (Ellis)
                                                          Finance
                                                         05-16-95
                              Senate Committee Report (Unamended)
BACKGROUND

During the 73rd Legislature, H.B. 1122 was enacted which limited
the use of revenue for administrative costs associated with certain
authorized uses of hotel occupancy tax.  Section 351.101(a), Tax
Code, limits the uses for which a city may expend hotel occupancy
tax revenues.  Under this subsection, revenue may be used to
promote tourism and the convention and hotel industry. 
Furthermore, a city may not retain any of the funds for
administrative costs unless it has a convention center or visitor
information center or one is under construction, or the city is
conducting tourism and promotional activities of its own.  A city
may not use revenue for administrative costs for any of the other
authorized uses of tax revenue.

PURPOSE

As proposed, H.B. 609 permits a city to expend hotel occupancy tax
revenue for administrative costs relating to purposes under Section
351.101(a), Tax Code.

RULEMAKING AUTHORITY

It is the committee's opinion that this bill does not grant any
additional rulemaking authority to a state officer, institution, or
agency.

SECTION BY SECTION ANALYSIS

SECTION 1. Amends Section 351.101(f), Tax Code, to authorize hotel
occupancy tax revenue spent for a purpose authorized by this
section to be spent for day-to-day operations, supplies, salaries,
office rental, travel expenses, and other administrative costs only
if those administrative costs are incurred directly in the
promotion and servicing expenditures authorized under Section
351.101(a), rather than Sections 351.101(a)(1) or (3).

SECTION 2. Emergency clause.
           Effective date:  upon passage.