HBA-RBT S.B. 1166 76(R) BILL ANALYSIS Office of House Bill AnalysisS.B. 1166 By: Wentworth Ways & Means 5/3/1999 Engrossed BACKGROUND AND PURPOSE Currently, municipalities in certain areas with a population of less than 5,000 have to deal with problems caused by travel and tourism, but do not have the resources to address issues, such as traffic and public safety. These cities have the authority to collect hotel occupancy taxes to address some of these problems, but only with an established travel and tourism bureau. S.B. 1166 establishes purposes for which certain municipalities may use revenue from the municipal hotel occupancy tax. 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 Chapter 351B, Tax Code, by adding Sections 351.1012 and 351.1066, as follows: Sec. 351.1012. USE OF REVENUE: CERTAIN SMALL MUNICIPALITIES. Authorizes a municipality with a population of less than 5,000 that is partially surrounded by a municipality with a population of more than 900,000 to use revenue from the hotel occupancy tax for any general revenue purpose or general governmental operation of the municipality. Sec. 351.1066. ALLOCATION OF REVENUE: CERTAIN SMALL MUNICIPALITIES. Authorizes the governing body of a municipality with a population of less than 5,000 that is partially surrounded by a municipality with a population of more than 900,000 to allocate hotel occupancy tax revenue among the permitted uses as determined by the ordinance. Effective date: 90 days after adjournment.