BILL ANALYSIS



H.B. 1891
By: Lewis, Glenn
April 20, 1995
Committee Report (Unamended)


BACKGROUND

Municipalities currently perform audits of local hotels to confirm
compliance of state law relating to the collection of local hotel
occupancy taxes.  The State of Texas, through the Comptroller of
Public Accounts, also conducts similar audits to confirm compliance
of state law relating to the state's portion of the hotel occupancy
taxes.

Section 111.006, Tax Code, provides for confidentiality of
information obtained by the Comptroller or Attorney General in
collection procedures.  This prohibits the State from sharing
audited hotel financial information with municipalities even though
the municipalities and state auditors are reviewing the same
records and financial information at the different hotel sites. 
This duplication of auditing effort could be eliminated if the
state law allows for the sharing of information between state and
local governments recognizing that the confidential nature of the
financial records of a hotel need to be maintained.

PURPOSE

The purpose of this bill is to allow the Comptroller of Public
Accounts or the Attorney General to share audit information with
municipalities and counties for the purpose of ascertaining
compliance with the collection of hotel occupancy tax by hotels.

RULEMAKING AUTHORITY

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

SECTION BY SECTION ANALYSIS

SECTION 1.  Amends Section 111.006 (Confidentiality of Information)
by amending Subsection (a) and adding Subsection (d) as follows:

     (a) Provides for an exception to confidentiality under
Subsection (d).

     (d) Allows the comptroller or attorney general to disclose
audit information to counties      or municipalities for the
purpose of enforcing compliance with the hotel occupancy tax.    The request for information must be in writing, and the
information shall be kept     confidential in accordance with the
provisions of this section.

SECTION 2.  Effective date: September 1, 1995

SECTION 3.  Emergency clause

SUMMARY OF COMMITTEE ACTION

Public notice was posted in accordance with the rules, and a public
hearing was held on April 18, 1995.  Representative Glenn Lewis
explained the bill.  By a record vote of 10 ayes, 0 nays, 0 present
not voting, and 1 absent, the committee voted to report H.B. 1891
to the House without amendment with the recommendation that it be
sent to the Local and Consent Calendar and that it do pass.

     The following testimony was received in favor of the bill:
           Steve Price, representing the City of Fort Worth-Internal Audit Dept.