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.