HBA-RBT H.B. 2466 76(R)    BILL ANALYSIS


Office of House Bill AnalysisH.B. 2466
By: Ramsay
Ways & Means
3/26/1999
Introduced



BACKGROUND AND PURPOSE 

Currently, there is no accountability and no enforcement mechanism for
wrongful expenditure of municipal hotel occupancy tax revenue.  Chapter
351, Tax Code, sets forth specific tourism-related uses for hotel occupancy
taxes, but some municipalities have misused the revenue for purposes such
as utility bills, toilet repairs, fax machines, library books, cemetery
fences, and park maintenance. In addition, municipalities have used the
interest from the revenue for such improper purposes.  This bill redefines
revenue in the context of hotel occupancy tax, and requires that a
municipality keep a record of revenue and the amount and purpose of each
expenditure. 

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 Section 351.001, Tax Code, by adding Subdivision (10),
to define "revenue." 

SECTION 2.  Amends Subchapter A, Chapter 351, Tax Code, by adding Sections
351.107 and 351.108, as follows: 

Sec.  351.107.  INJUNCTION AND RELIEF.  Authorizes a district court, upon a
finding that revenue from the tax imposed under this chapter has been spent
or is going to be spent by the municipality, by a person with whom the
municipality contracts, or by any other person for a purpose not authorized
by this chapter, to grant any injunctive relief necessary to prevent the
revenue from being spent for the unauthorized purpose and order the full
amount of any revenue spent for an unauthorized purpose be paid to the
account or fund in which the municipality's hotel occupancy tax is
deposited and expended only for purposes authorized by this chapter. 

Sec.  351.108.  SEPARATE RECORDS.  Requires a municipality to maintain a
record that identifies the amount of revenue derived from a tax imposed
under this chapter and the amount and purpose of each expenditure from that
revenue. 

SECTION 3.  Effective date: September 1, 1999.
            Makes application of this Act prospective.

SECTION 4.  Emergency clause.