SRC-JLB S.B. 1784 78(R)   BILL ANALYSIS


Senate Research Center   S.B. 1784
By: Lucio
Intergovernmental Relations
4/14/2003
As Filed


DIGEST AND PURPOSE 

As proposed, S.B. 1784 provides funds for South Padre Island to provide
relief projects, including a traffic control system, to handle its
fluctuating yearly tourist population. 

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 351.001, Tax Code, to define "eligible
general-law coastal municipality." 

SECTION 2.  Amends Section 351.003, Tax Code, by adding Subsection (d), to
prohibit the tax rate of an eligible general-law coastal municipality from
exceeding eight percent of the price paid for a room in a hotel. 

SECTION 3.  Amends Chapter 351, Tax Code, by adding Section 351.1075, as
follows: 
 
Section 351.1075.  ALLOCATION OF REVENUE.  ELIGIBLE GENERAL-LAW COASTAL
MUNICIPALITIES.  (a)  Requires an eligible general-law coastal
municipality to use the amount of revenue from the tax that is derived
from the application of the rate at a rate of more than seven percent of
the cost of the room only for certain purposes. 

(b)  Authorizes any interest income derived from the application of the
tax at the rate of more that seven percent of the cost of the room to be
used only for purposes in this section. 

SECTION 4.  Effective date:  upon passage or September 1, 2003.