CS H.B. 1424 75(R)BILL ANALYSIS


WAYS & MEANS
H.B. 1424
By: Eiland
3-6-97
Committee Report (Unamended)



BACKGROUND 

Section 43.0751, Local Government Code, (Strategic Partnerships for
Continuation of Certain Districts) allows for the creation of strategic
partnerships between a municipality and a water control and improvement
district or a municipal utility district.  These agreements can be for
several purposes, including: providing services for a fee, specifying
terms of a limited or fullpurpose annexation, or any other lawful purpose.
Certain municipal utility districts may use the partnership to avoid
complete annexation.  However, no provisions are made for municipalities
to collect the municipal hotel occupancy taxes in the district as part of
the strategic partnership agreement. 

PURPOSE

The bill would allow certain municipalities (currently Galveston) to levy
a municipal sales and use tax or a municipal hotel occupancy tax in the
portion of the district which has entered into a strategic partnership
with the municipality. 

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 43.0751, Local Government Code, (Strategic
Partnerships for Continuation of Certain Districts) by adding subsection
(n) which: 

1) Applies only to a municipality that has a population for more than
200,000, borders the Gulf of Mexico, and is adjacent to a county with a
population of 2.8 million; and  

2) Allows the municipality to impose a sales tax or hotel occupancy tax if:
 
a) the municipality has annexed the district for a limited purpose, or

b) after two public hearings, the municipality and the district enter into
a written agreement allowing the tax. 
 

SECTION 2.Emergency clause for immediate enactment.