HBA-LJP, EDN H.B. 1022 77(R)    BILL ANALYSIS


Office of House Bill AnalysisH.B. 1022
By: McCall
Ways & Means
2/15/2001
Introduced



BACKGROUND AND PURPOSE 

Under current law, a municipality or entity that spends revenue derived
from the municipal hotel occupancy tax is required to spend the revenue to
promote tourism and the convention and hotel industry, and to maintain
records of all expenditures.  However, current law does not require the
municipality or entity to indicate which of its program or activities
directly promote 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 or
event that is funded by the tax and directly promotes tourism and hotel and
convention activity.  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.  These provisions do not
prevent a municipality or funded entity from subsequently adding to the
list an activity or event that directly promotes tourism and hotel and
convention activity. 


EFFECTIVE DATE

September 1, 2001.