HBA-LJP, EDN H.B. 1022 77(R)BILL ANALYSIS Office of House Bill AnalysisH.B. 1022 By: McCall Ways & Means 7/10/2001 Enrolled BACKGROUND AND PURPOSE Prior to the 77th Legislature, state law provided that a municipality or entity that spent revenue derived from the municipal hotel occupancy tax was required to spend the revenue to promote tourism and the convention and hotel industry, and to maintain records of all expenditures. However, state law did not require the municipality or entity to indicate which of its program or activities directly promoted tourism and the hotel and convention industry. House Bill 1022 requires the specification of each scheduled activity or event funded by a hotel occupancy tax that promotes tourism and convention and hotel activity. 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. ANALYSIS House Bill 1022 amends the Tax Code to require a municipality or entity that spends revenue derived from the municipal hotel occupancy tax, before making an expenditure, to specify in a list each scheduled activity, program, or event that is directly funded by the tax or has its administrative costs funded in whole or part by the tax and is directly enhancing and promoting tourism and the convention and hotel industry. If a municipality delegates to another entity the management or supervision of an activity or event funded by the municipal hotel occupancy tax, each entity that is ultimately funded by the tax is also required to provide the above specifications. The list required should be provided to the office of the city secretary or to the city secretary's designee. These provisions do not prevent a municipality or funded entity from subsequently adding to the list an activity, program, or event that directly enhances and promotes tourism in the convention and hotel industry. These provisions do not apply if the funded entity already provides written information to the municipality that indicates which scheduled activities, programs, or events offered by the entity are directly enhancing and promoting tourism and the convention and hotel industry. These provisions do not affect the level of local hotel occupancy tax funding that was approved at an election held pursuant to the initiative and referendum provisions of a city charter and do not prohibit the use of local hotel occupancy tax for the encouragement, promotion, improvement, and application of the arts or for the historical restoration and preservation as otherwise provided by provisions regarding the municipal hotel occupancy tax. These provisions do not prevent a municipality or entity receiving revenue from the municipal hotel occupancy tax from setting aside revenue in a designated reserve fund for use in supporting planned activities, future events, and facility improvements that are directly enhancing and promoting tourism and the convention and hotel industry. EFFECTIVE DATE September 1, 2001.