SRC-JEC H.B. 1022 77(R)   BILL ANALYSIS


Senate Research Center   H.B. 1022
By: McCall (Sibley)
Intergovernmental Relations
4/26/2001
Engrossed


DIGEST AND PURPOSE 

Concerns have been raised regarding the use of revenue from the hotel
occupancy tax.  H.B. 1022 creates a reporting requirement to provide
information about how this revenue is spent and ensure that the funds are
spent to promote tourism, as required by law. 

RULEMAKING AUTHORITY

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

SECTION BY SECTION ANALYSIS

SECTION 1.  Amends Section 351.107, Tax Code, as added by Chapters 495 and
1467, Acts of the 76th Legislature, Regular Session, 1999, by renumbering
it as Section 351.108, Tax Code, and amending it as follows: 

Sec. 351.108.  (b) Requires a municipality or entity that spends revenue
derived from the tax imposed under this chapter, before making an
expenditure, to specify in a list each scheduled activity or event that is
directly funded by the tax or is offered by an entity that has its
administrative costs funded in whole or in part by the tax and directly
promotes tourism and hotel and convention activity. 

(c) Provides that if a municipality delegates to another entity the
management or supervision of an activity or event funded by the tax imposed
under this chapter, each entity that is ultimately funded by the tax is
required, before making an expenditure, to specify in a list each scheduled
activity or event that is directly funded by the tax or is offered by an
entity that has its administrative costs funded in whole or in part by the
tax and directly promotes tourism and hotel and convention activity. 

(d) Provides that Subsections (a) and (b) do not prevent a municipality or
funded entity from subsequently adding an activity or event to the list
required by those subsections if the activity or event directly promotes
tourism and hotel and convention activity. 

(e) Provides that this section does not prevent a municipality or entity
receiving revenue from the tax imposed under this chapter from setting
aside tax revenue in a designated reserve fund for use in supporting
planned activities, future events, and facility improvements that directly
promote tourism and hotel and convention activity. 

SECTION 2.   Effective date: September 1, 2001.
  Makes application of this Act prospective.