HBA-ALS H.B. 1014 76(R)BILL ANALYSIS Office of House Bill AnalysisH.B. 1014 By: Oliveira Ways and Means 4/6/1999 Committee Report (Amended) BACKGROUND AND PURPOSE Under current law, Galveston is the only coastal municipality that is allocated a portion of the state's hotel occupancy tax revenue for the cleaning and maintenance of its public beaches. There is a concern that tourism along the Texas coast may diminish if the beaches are not properly maintained. South Padre Island annually spends over $400,000 on beach cleaning. This money is taken from South Padre Island's general beach cleaning fund, which is funded by the local taxpayers. H.B.1014 requires the comptroller to issue a certain percentage of the tax revenue derived from the state hotel occupancy tax to an eligible general-law coastal municipality, which includes South Padre Island, to be used for cleaning and maintaining public beaches in that municipality. RULEMAKING AUTHORITY It is the opinion of the Office of House Bill Analysis that this bill does not expressly delegate any additional rulemaking authority to a state officer, department, agency, or institution. SECTION BY SECTION ANALYSIS SECTION 1. Amends Subchapter F, Chapter 156, Tax Code, by adding Section 156.2512, as follows: Sec. 156.2512. ALLOCATION OF REVENUE TO CERTAIN MUNICIPALITIES. (a) Requires the comptroller, no later than the last day of the month following a calendar quarter, to compute the revenue derived from the collection of taxes imposed under this chapter at a rate of one percent and received from hotels located in an eligible general-law coastal municipality, and issue a warrant to the eligible general-law coastal municipality in the amount so computed. (b) Authorizes an eligible general-law coastal municipality to use the money received under this section solely for cleaning and maintaining public beaches in that municipality. (c) Defines "eligible general-law coastal municipality" and "clean and maintain." SECTION 2. Effective date: September 1, 1999. SECTION 3. Emergency clause. EXPLANATION OF AMENDMENTS Amendment #1: Amends H.B. 1014, by adding Section 351.1055, Subchapter B, Chapter 351, Tax Code, as follows: Sec. 351.1055. ALLOCATION OF REVENUE: CERTAIN HOME-RULE MUNICIPALITIES. (a) Defines "clean and maintain" and "public beach." (b) Authorizes a home-rule municipality that borders on the Gulf of Mexico and has a population of more than 250,000 to use all or any portion of the revenue derived from the municipality hotel occupancy tax to clean and maintain public beaches in that municipality, notwithstanding any other provision in this chapter. Adds a new SECTION to H.B. 1014, to make application of this Act prospective, which will be appropriately numbered if adopted. Amends H.B. 1014 to redesignate the appropriate SECTIONS to reflect the additions made by this committee amendment if adopted.