HBA-JRA, ALS H.B. 1014 76(R)BILL ANALYSIS


Office of House Bill AnalysisH.B. 1014
By: Oliveira
Ways and Means
7/15/1999
Enrolled



BACKGROUND AND PURPOSE 

Prior to the 76th Legislature, Galveston was the only coastal municipality
that was allocated a portion of the state's hotel occupancy tax revenue for
the cleaning and maintenance of its public beaches.  There is a concern
that tourism along the Texas coast may diminish if the beaches are not
properly maintained.  South Padre Island annually spends over $400,000 on
beach cleaning. This money is  taken from South Padre Island's general
beach cleaning fund,  which is funded by the local taxpayers.   

H.B.1014 requires the comptroller to issue a certain percentage of the tax
revenue derived from the state hotel occupancy tax to an eligible
general-law or home-rule coastal municipality, which includes South Padre
Island, to be used for cleaning and maintaining public beaches in that
municipality. 

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 Subchapter F, Chapter 156, Tax Code, by adding Section
156.2512, as follows: 

Sec. 156.2512.  ALLOCATION OF REVENUE TO CERTAIN MUNICIPALITIES.  (a)
Requires the comptroller, no later than the last day of the month following
a calendar quarter, to compute the revenue derived from the collection of
taxes imposed under this chapter at a rate of one percent and received from
hotels located in an eligible general-law coastal municipality, and issue a
warrant to the eligible general-law coastal municipality in the amount so
computed. 

(b) Authorizes an eligible general-law coastal municipality to use the
money received under this section solely for cleaning and maintaining
public beaches in that municipality. 

(c) Defines "eligible general-law coastal municipality" and "clean and
maintain." 

SECTION 2.  Amends Section 156.102, Tax Code, to provide that a corporation
or association that is organized and operated exclusively for the cleaning
of beaches and that has no part of its net earnings inure to the benefit of
a private shareholder or individual is organized and operated exclusively
for a charitable purpose and that a public or private institution of higher
education is organized and operated exclusively for an educational purpose
only if the institution is defined as a Texas institution of higher
education or as a Texas private or independent institution of higher
education. 

SECTION 3.  Amends Subchapter B, Chapter 351, Tax Code, by adding Section
351.1055, as follows: 

Sec. 351.1055. ALLOCATION OF REVENUE: CERTAIN HOME-RULE  MUNICIPALITIES.
(a) Defines "clean and maintain" and "public beach." 

(b) Authorizes a home-rule municipality that borders on the Gulf of Mexico
and has a population of more than 250,000 to use all or any portion of the
revenue derived from the municipality hotel occupancy tax from hotels
previously subject to county hotel occupancy tax to clean and maintain
public beaches in that municipality, notwithstanding any other provision in
this chapter.  

SECTION 4.  Makes application of this Act prospective.

SECTION 5.  Effective date: September 1, 1999.

SECTION 6.  Emergency clause.