HBA-ALS C.S.H.B. 710 76(R)BILL ANALYSIS Office of House Bill AnalysisC.S.H.B. 710 By: Greenberg Ways and Means 4/12/1999 Committee Report (Substituted) BACKGROUND AND PURPOSE Currently, Texas offers a hotel occupancy tax exemption to a person involved in the production of a motion picture who stays in the same hotel for up to 30 days. Although a film production company may produce a film in Texas longer than 30 days, the film is often shot in a number of locations, which prevents a person involved in the film production from qualifying for the exemption. The purpose of this bill is to create incentives for the film industry to produce films in Texas, which may increase economic development and employment opportunities in Texas. C.S.H.B. 710 exempts from the hotel occupancy tax a person involved in the production of a motion picture who uses or possesses a room in one hotel or in a consecutive series of two or more hotels for a cumulative period of at least 15 days. Under C.S.H.B. 710, the exempted person is required to pay the imposed tax but is entitled to a refund of the tax paid. 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 Subchapter C, Chapter 156, Tax Code, by adding Section 156.104, as follows: Sec. 156.104. EXCEPTION--PERSONS INVOLVED IN MOTION PICTURE PRODUCTION. Provides that subject to this section, this chapter does not impose a state hotel occupancy tax on a person who is involved in the production of a motion picture for consideration, a copy of which is sold or offered for sale, licensed, distributed, broadcast, or exhibited, if that person has the right to posses or use a room in one hotel or in a consecutive series of two or more hotels for a cumulative period of at least 15 days. Requires a person who is excepted from a state hotel occupancy tax under this section to pay the imposed tax pursuant to this chapter and entitles that person to a refund of the tax paid in accordance with Section 156.154 (Refund). SECTION 2. Amends Section 156.154(a), Tax Code, to make conforming and nonsubstantive changes. SECTION 3. (a) Provides that this Act takes effect on the first day of the first calendar quarter beginning on or after the earliest date that it may take effect under Section 39, Article III, Texas Constitution (Time of Taking Effect of Laws; Emergencies; Entry on Journal) (b) Makes application of this Act prospective. SECTION 4. Emergency clause. COMPARISON OF ORIGINAL TO SUBSTITUTE The substitute modifies the original in SECTION 1 (proposed Section 156.104, Tax Code) by exempting from state hotel occupancy tax a person involved in the production of a motion picture if that person possesses or uses a room in one hotel or in a consecutive series of two or more hotels for a cumulative period of at least 15 days, rather than in a consecutive series of two or more hotels for a cumulative period of at least 30 days.