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.