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


Senate Research CenterC.S.S.B. 1603
76R11085 DAK-DBy: Sibley
Intergovernmental Relations
4/1/1999
Committee Report (Substituted)


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, C.S.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 the owner or operator of
a hotel that pays the tax imposed under this chapter to the municipality or
a state association of hotels whose membership includes a hotel that pays
the tax imposed under this chapter to the municipality to commence a civil
action in a district court, not later than four years after the day the
expenditure was made, for injunctive relief and reimbursement, if it
appears that a municipality, a person with whom a municipality contracts,
or any other person is spending or is going to spend revenue from the tax
imposed under this chapter for a purpose not authorized by this chapter.
Authorizes the district court to grant certain relief and order certain
reimbursement on a finding by the court that revenue from the tax imposed
under this chapter has been spent or is going to be spent by the
municipality, by a person with whom the municipality contracts, or by any
other person for a purpose not authorized by this chapter.  Prohibits a
court from reviewing a pledge of revenue from the tax imposed under this
chapter for bonds under certain circumstances. 

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.


 
SUMMARY OF COMMITTEE CHANGES

SECTION 2.

Amends Chapter 351B, Tax Code, by adding Section 351.107, regarding
injunction and relief.  Deletes proposed Section 351.107, Tax Code,
regarding injunction and relief.