HBA-JRA C.S.H.B. 3460 76(R)BILL ANALYSIS Office of House Bill AnalysisC.S.H.B. 3460 By: Kuempel Ways & Means 4/28/1999 Committee Report (Substituted) BACKGROUND AND PURPOSE In 1987, the legislature authorized the creation of park and recreation districts in counties with river frontage on the Guadalupe and Comal Rivers to provide law enforcement and river cleanup programs. Such districts are authorized to implement a tax on rental of recreation equipment and park services. C.S.H.B. 3460 specifies the services to which the taxed authorized by Section 324.099, Local Government Code, apply and limits this tax to $1 per person for certain types of rentals and services. This bill also prohibits water-oriented recreational equipment from being rented to a person younger than 18 years of age. 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. SECTION BY SECTION ANALYSIS SECTION 1. Amends Section 324.099(b), Local Government Code, as follows: (b)(1) Authorizes a parks and recreation district (district) to levy taxes within the district at a rate not greater than five percent on each person who, under a lease, concession, permit, right of access, license, contract, or agreement, pays $1 or more for each day to rent a camping space, a parking space, a boat slip, fishing tackle, or water-oriented recreational equipment intended for use on a lake in the district. Previously, such taxes were not restricted to persons who paid $1 or more each day for such rentals. (2) Makes a conforming change. (3) Authorizes the district to levy taxes within the district at a rate not greater than $1 per person on the rental of water-oriented recreational equipment intended for use on a river in the district. Previously, all rental of water-oriented recreational equipment in the district was taxable at a rate not greater than five percent. Decreases the rate of taxation on shuttle services in the district, including river ingress and egress costing at least $1 each day, from a rate not less than five percent but greater than $1 to a rate not greater than $1 per person. SECTION 2. Amends Chapter 324, Local Government Code, by adding Subchapter Z, as follows: SUBCHAPTER Z. MISCELLANEOUS PROVISIONS Sec. 324.901. REQUIREMENTS FOR RENTAL OF WATER-ORIENTED RECREATIONAL EQUIPMENT. Provides that this section applies only to the rental of water-oriented recreational equipment in a district. Prohibits a person from renting wateroriented recreational equipment to a person younger than 18 years of age. Authorizes a person to rent water-oriented recreational equipment to a person who is at least 18 years of age only if each person who is at least 18 years of age or older who will use the equipment signs a written agreement for the rental of that equipment and each person who will use the equipment, regardless of age, is listed on the agreement. SECTION 3.Effective date: September 1, 1999. Makes application of this Act prospective. SECTION 4. Emergency clause. COMPARISON OF ORIGINAL TO SUBSTITUTE The substitute modifies the original in SECTION 1 to conform to Legislative Council format. The substitute modifies the original by adding a new SECTION 2, which adds Subchapter Z, Local Government Code, to prohibit a person from renting water-oriented recreational equipment to a person younger than 18 years of age and to authorize a person to rent water-oriented recreational equipment to a person who is at least 18 years of age only if each person who will use the equipment, regardless of age, is listed on the agreement. The substitute moves the requirement that each person who is at least 18 years of age or older who will use the equipment sign a written agreement for the rental of such equipment from SECTION 1 of the original to SECTION 2. The substitute adds a new SECTION 3 (effective date and prospective clause). The substitute redesignates SECTION 2 (long emergency clause) of the original to SECTION 4 (short emergency clause).