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.