LEGISLATIVE BUDGET BOARD
                              Austin, Texas
                                     
                    FISCAL NOTE, 77th Regular Session
  
                              April 11, 2001
  
  
          TO:  Honorable Frank Madla, Chair, Senate Committee on
               Intergovernmental Relations
  
        FROM:  John Keel, Director, Legislative Budget Board
  
       IN RE:  HB1022  by McCall (Relating to the recording of
               expenditures of revenue from the municipal hotel
               occupancy tax.), As Engrossed
  
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*  No fiscal implication to the State is anticipated.                    *
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The bill would require a municipality or entity funded by the municipal
hotel occupancy tax to list scheduled activities or events directly
funded by the tax or that are offered by an entity that has its
administrative costs funded in whole or in part by the tax and that will
directly promote tourism and convention and hotel activity.  The city or
entity would have to list the activity or event before making an
expenditure of the tax proceeds.  If a city delegates the management or
supervision of the tax to another entity, then each entity that would
ultimately be funded by the tax must generate the list.  A municipality
or entity would be able to add items to its list of hotel occupancy tax
funded activities at any time.  The list would be provided to the city
secretary or the official custodian of records for the city.

The bill will allow a municipality or entity receiving revenue from the
tax to set aside tax revenue in a designated reserve fund for appropriate
use.

Current law requires the municipal hotel occupancy tax to be used to
directly promote tourism and the convention and hotel industry.
Additionally, municipalities and entities must maintain records that
identify the receipt and expenditure of all revenue derived from the tax.
Current law does not require that the funded entities indicate which of
their hotel occupancy tax funded programs or activities directly promote
tourism and convention and hotel industry.

The bill would take effect September 1, 2001.
  
Local Government Impact
  
No significant fiscal implication to units of local government is
anticipated.

Local government entities would experience a small administrative cost
for preparing, maintaining, and submitting lists of how hotel occupancy
taxes were used.
  
  
Source Agencies:   304   Comptroller of Public Accounts
LBB Staff:         JK, SD, WP, DB