C.S.H.B. 2718 78(R)    BILL ANALYSIS


C.S.H.B. 2718
By: Smith, Wayne
Local Government Ways and Means
Committee Report (Substituted)


BACKGROUND AND PURPOSE 

Shipping traffic and natural occurrences cause many Texas beaches to
recede, thus placing a burden on local tourist attractions and the
economic development of coastal municipalities.  CSHB 2718 would allow
home rule municipalities adjacent to a bay, with a population less than
80,000, to allocate revenues for items that are currently allowable for
eligible coastal communities.  Eligible items could include the payment of
bonds that the municipality or park board of trustees may issue under
Section 1504.002 (a), Government Code, or under Chapter 306, Local
Government Code, the maintenance, improvement or operation of the parks
and other facilities that are considered to attract visitors and tourist
to the municipality, the cleaning and maintenance of adjacent public
lands, or to mitigate coastal erosion on adjacent public lands. 

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 Subchapter B, Chapter 351, Tax Code, by adding Section 351.104 to
allow home rule municipalities adjacent to a bay, with a population less
than 80,000, to allocate revenues for items that are currently allowable
for eligible coastal communities. 

SECTION 2.
 Sets effective date.

EFFECTIVE DATE

This Act takes effect September 1, 2003.

COMPARISON OF ORIGINAL TO SUBSTITUTE

Deletes all references to "estuaries" to ensure that the bill is not
overly broad and takes in every river bed or other areas that may be
considered estuaries; 

Adds in a clarifying sentence that this authority does not apply to
eligible coastal municipalities that already have an alternate funding
formula for use of their local hotel occupancy tax; 

 Deletes all references to "public beaches" and replaces them with the
term "adjacent public lands" to more accurately define the beach areas
that are adjacent to bays; 

Increases the maximum that can be spent on coastal erosion and beach
maintenance from one percent to ten percent of the local hotel occupancy
taxes that are collected; 

Requires that a municipality that uses its local hotel occupancy tax for
this purpose may not reduce the amount that it spends on advertising and
promoting the city as a tourism destination.  The benchmark for how much
the city had spent in the past on advertising and promotion would be the
average amount spent for this purpose over the three years that
immediately precede the decision to use the hotel occupancy tax for the
purposes under this bill.