HBA-SEP S.B. 1315 77(R)    BILL ANALYSIS


Office of House Bill AnalysisS.B. 1315
By: Staples
Ways & Means
5/4/2001
Engrossed



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 event costs associated with
sporting events that attract visitors.  Senate Bill 1315 authorizes revenue
from the municipal hotel occupancy tax to be used for expenses directly
related to a sporting event in which the majority of participants are
tourists who substantially increase economic activity at hotels and motels
within the municipality or its vicinity.  

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

Senate Bill 1315 amends the Tax Code to authorize revenue from the
municipal hotel occupancy tax to be used for expenses, including promotion
expenses, directly related to a sporting event in which the majority of
participants are tourists who substantially increase economic activity at
hotels and motels within the municipality or its vicinity.   

EFFECTIVE DATE

On passage, or if the Act does not receive the necessary vote, the Act
takes effect September 1, 2001.