HBA-MSH, CBW H.B. 1886 77(R)BILL ANALYSIS Office of House Bill AnalysisH.B. 1886 By: Coleman Ways & Means 7/18/2001 Enrolled BACKGROUND AND PURPOSE Prior law allowed a hotel occupancy tax to be collected by certain municipalities with tax rate ceilings set according to population. Prior to the 77th Legislature, an "eligible municipality" was defined as a municipality with a population of at least 1,200,000 and that had adopted by ordinance a capital improvement plan for convention and exposition facilities for the municipality. At the time, there were no longer any cities in the state that fit the definition of an "eligible municipality." However, language relating to such municipalities still remained in the law, leading to some confusion. House Bill 1886 removes the definition of "eligible municipality" and modifies the definition of "eligible central 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 1886 amends the Tax Code relating to the collection of municipal hotel occupancy taxes to remove the definition of "eligible municipality," and to modify the definition of "eligible central municipality" to mean a municipality with a population of more than 440,000 but less than 1.5 million located in a county with a population of one million or more and that adopted a capital improvement plan for the expansion of an existing convention center facility (Sec. 351.001). The bill provides that the portion of the tax revenue allocated for advertising and promotional purposes by a municipality with a population of more than 1.6 million may not be less than 23 percent, rather than may not exceed 75 percent, except that the allocation is subject to and may not impair the authority of the municipality to pledge all or any portion of that tax revenue to the payment of bonds or spend all or any portion of that tax revenue for the payment of operation and maintenance expenses of convention center facilities (Sec. 351.103). The bill removes provisions relating to an "eligible municipality." EFFECTIVE DATE June 16, 2001.