H.B. 1292 78(R)    BILL ANALYSIS


H.B. 1292
By: Brown, Betty
Local Government Ways and Means
Committee Report (Unamended)



BACKGROUND AND PURPOSE 

Chapter 351 of the Tax Code addresses the collection and use of municipal
hotel occupancy taxes. The governing body of a municipality is responsible
for the proper use of the revenue, which is to be used only for certain
purposes. The management or supervision of programs and activities funded
with this revenue may be delegated by the governing body of the
municipality to a person, including another governmental entity or private
organization. The governing body of the municipality is required to
approve in advance the annual budget of the person to which it delegates
those functions and shall require the person to make periodic reports
listing the expenditures made with the revenue. 

In some cities, the revenue is divided among several entities to be spent
for certain purposes and the governing body of the municipality is not
approving the annual budget for each of these parties.   
HB 1292 amends existing statute to allow the governing body of a
municipality to delegate the management and supervision of municipal hotel
occupancy taxes to one or more persons and requires the governing body to
approve in advance the budget of each person to which it delegates that
function. 

RULEMAKING AUTHORITY

It is the committee's opinion that this bill does not expressly grant any
additional rulemaking authority to a state officer, department, agency, or
institution. 

ANALYSIS

SECTION 1.  
Amends Section 351.101(c), Tax Code as follows: authorizes the governing
body of a municipality to delegate the management or supervision of
programs and activities funded with revenue from municipal hotel occupancy
taxes to one or more persons. 

SECTION 2.  
Specifies the effective date as immediately or September 1, 2003.  Applies
only to a contract entered into on or after the effective date of the Act. 

EFFECTIVE DATE

Immediately, if it receives an affirmative vote of two-thirds of the
members of each house. Otherwise, September 1, 2003.