HBA-AMW C.S.H.B. 2756 77(R)BILL ANALYSIS Office of House Bill AnalysisC.S.H.B. 2756 By: Ritter Ways & Means 4/8/2001 Committee Report (Substituted) BACKGROUND AND PURPOSE Current law requires a county or entity that spends revenue derived from the county hotel occupancy tax to spend the revenue to promote tourism and the convention and hotel industry. Although the county or entity is required to maintain records of all of its expenditures, the county or entity is not required to indicate which of its programs or activities directly promote tourism and the hotel and convention industry. C.S.H.B. 2756 requires a county or other entity that spends revenue derived from the county hotel occupancy tax 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 wholly or partly by the tax and that directly 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 C.S.H.B. 2756 amends the Tax Code to require a county to maintain a record that accurately identifies the receipt and expenditure of all revenue derived from the county hotel occupancy tax (tax). The bill requires a county or entity that spends revenue derived from the tax to, before making an expenditure, 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 wholly or partly by the tax and that directly promotes tourism and hotel and convention activity (scheduled activity or event). If the commissioners court of a county delegates to another entity the management or supervision of an activity or event funded by the tax, the bill requires each entity that is ultimately funded by the tax to, before making an expenditure, specify in a list each scheduled activity or event. The bill provides that the requirements regarding the listing of each scheduled activity or event do not prevent the county or funded entity from subsequently adding an activity or event to the list that directly promotes tourism and hotel and convention activity. The bill also specifies that the requirements regarding the listing of expenditures by a county or a funded entity do not prevent a county or funded entity 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. The bill provides that all expenditures for a sports and community venue project and related infrastructure are a single scheduled activity or event. EFFECTIVE DATE September 1, 2001. COMPARISON OF ORIGINAL TO SUBSTITUTE C.S.H.B. 2756 modifies the original bill by providing that a scheduled activity or event that is directly funded by the county hotel occupancy tax (tax), rather than funded by the tax, and an activity or event that is offered by an entity that has its administrative costs funded wholly or partly by the tax is required to be listed by a county or entity. The substitute adds provisions regarding a county or funded entity setting aside tax revenue in a designated reserve fund and expenditures for a sports and community venue project and related infrastructure.