SRC-JEC S.B. 528 77(R)   BILL ANALYSIS


Senate Research Center   S.B. 528
77R3091 DAK-FBy: Sibley
Intergovernmental Relations
3/13/2001
As Filed


DIGEST AND PURPOSE 

Currently, a local hotel occupancy tax must be used to promote tourism and
the hotel and convention industry.  However, current law does not require
that the funded entity indicate which of its hotel occupancy tax funded
programs or events directly promote tourism and the hotel and convention
industry.  As proposed, S.B. 528 requires an entity that is funded by the
hotel occupancy tax to report which activities and events will directly
promote the industry, in order to enhance the likelihood that the tax is
expended in a manner consistent with state 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, to renumber it
as Section 351.108, Tax Code, and amend it, as follows: 

Sec. 351.108.  RECORDS.  (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
funded by the tax and directly promotes tourism and hotel convention
activity. 

(c)  Requires each entity funded by the tax, if a municipality delegates to
it the management or supervision of an activity or event funded by this
chapter, before making an expenditure, to specify in a list each activity
or event that is funded by the tax and promotes tourism and hotel
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. 

SECTION 2.   Effective date:  September 1, 2001.
Makes application of this Act prospective to an expenditure made on or
after the effective date.