BILL ANALYSIS



C.S.H.B. 958
By: Turner, B.
February 16, 1995
Committee Report (Substituted)


BACKGROUND

Currently, Section 352.002 of the Tax Code authorizes certain
counties to impose a hotel occupancy tax.  If a county is covered
under this section, the Commissioners Court of that county may
impose the tax by the adoption of an order or resolution.

Section 352.002(a)(5) allows a county to collect the tax if it has
a population of 17,500 or less in which there is located a class 1
or class 2 horse racing track, as licensed by the Texas Racing Act. 
The use of these funds is restricted by Section 352.1032 for
general promotional and tourist advertising of the county and its
vicinity.

PURPOSE

The purpose of this legislation is to create a criteria under which
a county with 17,500 or less in population could qualify to collect
its hotel occupancy tax independent of the status of its racetrack.

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 352.002(a)(5), Tax Code, by allowing
           counties to collect the tax if they border a county in
           the Edwards Aquifer Authority, and if they have a
           population of 17,500 or less, and no more than one
           municipality with a population of less than 2,500.  All
           references to horse racing tracks are deleted.

SECTION 2. Section 352.1032, Tax Code, is retitled from "USE OF
           REVENUE: COUNTIES WITH LICENSED RACETRACKS," to "USE OF
           REVENUE: COUNTIES BORDERING EDWARDS AQUIFER AUTHORITY."

SECTION 3. Section 352.006, ADMINISTRATION IN COUNTY WITH LICENSED
           RACETRACK, Tax Code, is repealed.

SECTION 4. Emergency Clause;
           Effective Date:  Upon Passage.


COMPARISON OF ORIGINAL TO SUBSTITUTE

C.S.H.B. 958 further clarifies which counties will be allowed to
collect the hotel occupancy tax.  Also, Section 352.1032, Tax Code,
is retitled, and Section 352.006, Tax Code (Administration in
County With Licensed Racetrack), is repealed.  H.B. 958 only
redefines which counties may collect the tax.




SUMMARY OF COMMITTEE ACTION

Public notice was posted in accordance to the rules and a public
hearing was held on February 14, 1995.  Without objection, the
committee approved C.S.H.B. 958 by Representative Place.  By a
record vote of 8 ayes, 0 nays, 0 present not voting and 3 absent,
the committee voted to report H.B. 958 to the House as substituted
with the recommendation that it be sent to the Local and Consent
Calendar and that it do pass.

The following person testified in favor of the bill:
     Clay Conoly, representing himself