SRC-PNG S.B. 1603 76(R)   BILL ANALYSIS


Senate Research Center   S.B. 1603
By: Sibley
Intergovernmental Relations
3/25/1999
As Filed


DIGEST 

Currently, Texas municipalities are not required to maintain separate
records on revenues and expenditures relating to the local hotel occupancy
tax.  This bill would revise the regulations regarding the expenditure of
revenue and interest derived from the municipal hotel occupancy tax to
require separate records, and authorize a district court to grant
injunctive relief to prevent an unauthorized expenditure of hotel occupancy
tax revenue and order a full reimbursement of any revenue used for
unauthorized purposes.   

PURPOSE

As proposed, S.B. 1603 revises the regulations regarding the expenditure of
revenue and interest derived from the municipal hotel occupancy tax. 

RULEMAKING AUTHORITY

This bill does not grant any additional rulemaking authority to a state
officer, institution, or agency. 

SECTION BY SECTION ANALYSIS

SECTION 1.  Amends Section 351.001, Tax Code, by adding Subdivision (10),
to define "revenue." 

SECTION 2.  Amends Chapter 351B, Tax Code, by adding Sections 351.107 and
351.108, as follows: 

Sec.  351.107.  INJUNCTION AND RELIEF.  Authorizes a district court to
grant injunctive relief and order certain reimbursements on a finding by a
district court that revenue from the tax imposed under this chapter has
been spent or is going to be spent by a municipality, by a person with whom
the municipality contracts, or by any other person for a purpose not
authorized by this chapter.   

Sec.  351.108.  SEPARATE RECORDS.  Requires a municipality to maintain a
record that identifies, as separate items, the amount of revenue derived
from the tax imposed under this chapter and the amount and purpose of each
expenditure from that revenue. 

SECTION 3.  Effective date: September 1, 1999.
Makes application of this Act prospective.

SECTION 4. Emergency clause.