HBA-KDB, CMT H.B. 1032 77(R) BILL ANALYSIS Office of House Bill AnalysisH.B. 1032 By: Shields Ways & Means 2/15/2001 Introduced BACKGROUND AND PURPOSE Under current law, revenue from the municipal hotel occupancy tax may be used only to promote tourism and the convention and hotel industry. Municipalities in certain areas with a population of less than 5,000 may contend with problems caused by travel and tourism, but do not have the resources to address such issues as traffic and public safety. House Bill 1032 authorizes certain municipalities to use the hotel occupancy tax for general revenue purposes, or general operation of the 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. ANALYSIS House Bill 1032 amends the Tax Code to authorize a municipality with a population of less than 5,000 that is partially surrounded by a municipality with a population of more than 900,000 to use revenue from the hotel occupancy tax for any general revenue purpose or general governmental operation of the municipality in addition to the uses authorized in the Tax Code. The bill authorizes the governing body of the municipality to allocate hotel occupancy tax revenue among the permitted uses as determined by ordinance. EFFECTIVE DATE On passage, or if the Act does not receive the necessary vote, the Act takes effect September 1, 2001.