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.