HBA-RBT C.S.S.B. 1603 76(R)    BILL ANALYSIS


Office of House Bill AnalysisC.S.S.B. 1603
By: Sibley
Ways & Means
5/7/1999
Committee Report (Substituted)



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 may 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.  C.S.S.B.
1603 redefines revenue in the context of hotel occupancy tax, and requires
that a municipality accurately identify the receipt and expenditure of all
revenue derived from the tax imposed under this chapter. 

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 B, Chapter 351, Tax Code, by adding Section
351.107, as follows: 

Sec.  351.107.  RECORDS.  Requires a municipality to maintain a record that
accurately identifies the receipt and expenditure of all revenue derived
from the tax imposed under this chapter. 

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

SECTION 4.  Emergency clause.

COMPARISON OF ORIGINAL TO SUBSTITUTE

The substitute differs from the original in SECTION 2 by modifying proposed
Section 351.107, Tax Code, which would have authorized a district court to
grant injunctive relief to prevent misuse of revenue derived from a hotel
occupancy tax.  The substitute requires a municipality to keep accurate
records concerning the receipt and expenditure of revenue derived from the
hotel occupancy tax. The substitute also deletes proposed Section 351.108,
Tax Code, which would have required a municipality to maintain a record
that identified the amount of revenue derived from a tax imposed under this
chapter and the amount and purpose of each expenditure from that revenue.