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.