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 Section 352.006, ADMINISTRATION IN COUNTY WITH LICENSED RACETRACK, Tax Code, is repealed.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352.1032, Tax Code, is retitled, and Section 352.006, Tax Code (Administration in County With Licensed Racetrack), is repealed.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