HBA-AMW H.B. 297 77(R)    BILL ANALYSIS


Office of House Bill AnalysisH.B. 297
By: Seaman
Ways & Means
2/15/2001
Introduced



BACKGROUND AND PURPOSE 

Currently, communities such as Galveston and South Padre Island are
allocated a portion of the state hotel occupancy tax revenue for cleaning
and maintaining public beaches.  However, certain other small coastal
municipalities are not allocated a portion of this revenue.  Cleaning and
maintaining beaches is costly and these municipalities employ other
methods, such as local taxes, for funding.  There is a concern that tourism
along the Texas coast may diminish if the beaches are not properly
maintained.  House Bill 297 allocates one percent of the revenue derived
from the state hotel occupancy tax imposed on hotels located in an eligible
small coastal general-law or home-rule municipality 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. 

ANALYSIS

House Bill 297 amends the Tax Code to require the comptroller to issue to
an eligible small coastal municipality one percent of the tax revenue
derived  from the state hotel occupancy tax and received from hotels
located in the eligible municipality to clean and maintain the
municipality's public beaches.  The bill changes the definition of an
"eligible general-law coastal municipality" to an "eligible small coastal
municipality."  The bill defines an eligible small coastal municipality as
a general-law or home-rule municipality that has a population of less than
5,000, borders the Gulf of Mexico, and is located on a barrier island or
has boundaries within 30 miles of Mexico. 

EFFECTIVE DATE

September 1, 2001.