HBA-SEP S.B. 1315 77(R) BILL ANALYSIS Office of House Bill AnalysisS.B. 1315 By: Staples Ways & Means 5/4/2001 Engrossed BACKGROUND AND PURPOSE Currently, the use of revenue from the municipal hotel occupancy tax is limited to construction and maintenance of convention center facilities and visitor centers; the furnishing of facilities, personnel, and materials for the registration of convention delegates or registrants (delegates); advertising and promotional programs to attract tourists and delegates; the encouragement and promotion of the arts; or historical restoration and the preservation of projects to encourage tourists and delegates to visit these sites. Although most rural areas do not have convention centers, rural areas could benefit by using this tax to fund event costs associated with sporting events that attract visitors. Senate Bill 1315 authorizes revenue from the municipal hotel occupancy tax to be used for expenses directly related to a sporting event in which the majority of participants are tourists who substantially increase economic activity at hotels and motels within the municipality or its vicinity. 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 Senate Bill 1315 amends the Tax Code to authorize revenue from the municipal hotel occupancy tax to be used for expenses, including promotion expenses, directly related to a sporting event in which the majority of participants are tourists who substantially increase economic activity at hotels and motels within the municipality or its vicinity. EFFECTIVE DATE On passage, or if the Act does not receive the necessary vote, the Act takes effect September 1, 2001.