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.