HBA-LJP, EDN H.B. 1022 77(R)BILL ANALYSIS


Office of House Bill AnalysisH.B. 1022
By: McCall
Ways & Means
7/10/2001
Enrolled



BACKGROUND AND PURPOSE 

Prior to the 77th Legislature, state law provided that a municipality or
entity that spent revenue derived from the municipal hotel occupancy tax
was required to spend the revenue to promote tourism and the convention and
hotel industry, and to maintain records of all expenditures.  However,
state law did not require the municipality or entity to indicate which of
its program or activities directly promoted tourism and the hotel and
convention industry.  House Bill 1022 requires the specification of each
scheduled activity or event funded by a hotel occupancy tax that promotes
tourism and convention and hotel activity. 

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 1022 amends the Tax Code to require a municipality or entity
that spends revenue derived from the municipal hotel occupancy tax, before
making an expenditure, to specify in a list each scheduled activity,
program, or event that is directly funded by the tax or has its
administrative costs funded in whole or part by the tax and is directly
enhancing and promoting tourism and the convention and hotel industry.  If
a municipality delegates to another entity the management or supervision of
an activity or event funded by the municipal hotel occupancy tax, each
entity that is ultimately funded by the tax is also required to provide the
above specifications.  The list required should be provided to the office
of the city secretary or to the city secretary's designee.  These
provisions do not prevent a municipality or funded entity from subsequently
adding to the list an activity, program, or event that directly enhances
and promotes tourism in the convention and hotel industry.  These
provisions do not apply if the funded entity already provides written
information to the municipality that indicates which scheduled activities,
programs, or events offered by the entity are directly enhancing and
promoting tourism and the convention and hotel industry.  These provisions
do not affect the level of local hotel occupancy tax funding that was
approved at an election held pursuant to the initiative and referendum
provisions of a city charter and do not prohibit the use of local hotel
occupancy tax for the encouragement, promotion, improvement, and
application of the arts or for the historical restoration and preservation
as otherwise provided by provisions regarding the municipal hotel occupancy
tax. 

These provisions do not prevent a municipality or entity receiving revenue
from the municipal hotel occupancy tax from setting aside revenue in a
designated reserve fund for use in supporting planned activities, future
events, and facility improvements that are directly enhancing and promoting
tourism and the convention and hotel industry.  
 
EFFECTIVE DATE

September 1, 2001.