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.