HBA-JRA H.B. 3252 76(R)    BILL ANALYSIS


Office of House Bill AnalysisH.B. 3252
By: Gray
Ways & Means
4/8/1999
Introduced



BACKGROUND AND PURPOSE 

The city of Galveston had a charter revision election on May 3, 1998.  The
intent was to make the charter conform with state law regarding the
assessment and usage of the hotel occupancy tax. However, a sentence in the
charter prohibiting the hotel occupancy tax to be used for anything other
than advertising and promoting the city's recreational advantages and
facilities was inadvertently left unchanged.  State law does not limit the
use of the hotel occupancy tax in this way.  H.B. 3252 authorizes an
eligible coastal municipality and a park board of trustees created by the
municipality to use the hotel occupancy tax as authorized by state law,
notwithstanding the provisions of the municipality's charter. 

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 Section 351.105, Tax Code, by adding Subsection (f), as
follows: 

(f)  Authorizes an eligible coastal municipality and a park board of
trustees created by the municipality to contract to use the hotel occupancy
tax collected by the eligible coastal municipality in accordance with this
section (Allocation of Revenue:  Eligible Coastal Municipalities).
Authorizes the city or the park board of trustees, without further
authorization, to use the hotel occupancy tax collected by the eligible
coastal municipality in accordance with the provisions of this section and
issue bonds or enter into other agreements secured by the hotel occupancy
tax collected by the eligible coastal municipality in accordance with the
provisions of this section. 

SECTION 2.Emergency clause.
  Effective date: upon passage.