HBA-SEP H.B. 3126 77(R) BILL ANALYSIS Office of House Bill AnalysisH.B. 3126 By: Christian Ways & Means 3/30/2001 Introduced BACKGROUND AND PURPOSE Currently, the use of revenue from the municipal hotel occupancy tax is limited to construction and maintenance of convention center facilities and visitor centers; the furnishing of facilities, personnel, and materials for the registration of convention delegates or registrants (delegates); advertising and promotional programs to attract tourists and delegates; the encouragement and promotion of the arts; or historical restoration and the preservation of projects to encourage tourists and delegates to visit these sites. Although most rural areas do not have convention centers, rural areas could benefit by using this tax to fund the promotion and event costs associated with sporting events that attract visitors. House Bill 3126 authorizes revenue from the municipal hotel occupancy tax to be used for the promotion and event costs associated with sporting events to attract tourists to the area and enhance hotel and motel activities. 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 3126 amends the Tax Code to authorize revenue from the municipal hotel occupancy tax to be used for the promotion and event costs associated with sporting events the principal participants of which are primarily tourists to the area and whose presence in the community will enhance hotel and motel activities. EFFECTIVE DATE On passage, or if the Act does not receive the necessary vote, the Act takes effect September 1, 2001.