1-1 By: Hunter of Nueces (Senate Sponsor - Armbrister) H.B. No. 891
1-2 (In the Senate - Received from the House April 26, 1993;
1-3 April 27, 1993, read first time and referred to Committee on
1-4 Finance; May 10, 1993, reported adversely, with favorable Committee
1-5 Substitute by the following vote: Yeas 11, Nays 0; May 10, 1993,
1-6 sent to printer.)
1-7 COMMITTEE VOTE
1-8 Yea Nay PNV Absent
1-9 Montford x
1-10 Turner x
1-11 Armbrister x
1-12 Barrientos x
1-13 Bivins x
1-14 Ellis x
1-15 Haley x
1-16 Moncrief x
1-17 Parker x
1-18 Ratliff x
1-19 Sims x
1-20 Truan x
1-21 Zaffirini x
1-22 COMMITTEE SUBSTITUTE FOR H.B. No. 891 By: Armbrister
1-23 A BILL TO BE ENTITLED
1-24 AN ACT
1-25 relating to the use of revenue generated by the hotel tax by
1-26 certain counties.
1-27 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
1-28 SECTION 1. Section 352.001, Tax Code, is amended to read as
1-29 follows:
1-30 Sec. 352.001. DEFINITIONS <DEFINITION>. In this chapter:
1-31 (1) "Hotel"<, "hotel"> has the meaning assigned by
1-32 Section 156.001(1).
1-33 (2) "Convention center facilities" or "convention
1-34 center complex" means civic centers, civic center buildings,
1-35 auditoriums, exhibition halls, and coliseums that are owned by the
1-36 county or that are managed in whole or part by the county. The
1-37 term includes parking areas or facilities that are for the parking
1-38 or storage of conveyances and that are located at or in the
1-39 immediate vicinity of other convention center facilities.
1-40 (3) "Tourism" means the guidance or management of
1-41 tourists.
1-42 (4) "Tourist" means an individual who travels from the
1-43 individual's residence to a different municipality, county, state,
1-44 or country for pleasure, recreation, education, or culture.
1-45 (5) "Visitor information center" or "tourism
1-46 information center" means a building or portion of a building used
1-47 to distribute or disseminate information to tourists.
1-48 SECTION 2. Subchapter B, Chapter 352, Tax Code, is amended
1-49 by adding Section 352.1015 to read as follows:
1-50 Sec. 352.1015. USE OF REVENUE: GENERAL PROVISIONS.
1-51 (a) The commissioners court of a county by contract may delegate
1-52 to a person, including another governmental entity or a private
1-53 organization, the management or supervision of programs and
1-54 activities funded with revenue from the tax authorized by this
1-55 chapter. The commissioners court in writing shall approve in
1-56 advance the annual budget of the person to which it delegates those
1-57 functions and shall require the person to make periodic reports to
1-58 the commissioners court at least quarterly listing the expenditures
1-59 made by the person with revenue derived from the tax authorized by
1-60 this chapter. The person must maintain revenue provided from the
1-61 tax authorized by this chapter in a separate account established
1-62 for that purpose and may not commingle that revenue with any other
1-63 money. The commissioners court may not delegate to any person the
1-64 management or supervision of its tourist and convention programs
1-65 and activities funded with revenue from the tax authorized by this
1-66 chapter other than by contract as provided by this subsection.
1-67 The approval by the commissioners court of the county of the annual
1-68 budget of the person to whom the commissioners court delegates
2-1 those functions creates a fiduciary duty in the person with respect
2-2 to the revenue provided by the tax authorized by this chapter.
2-3 (b) A person with whom a county contracts under this section
2-4 shall maintain complete and accurate financial records of each
2-5 expenditure of hotel occupancy tax revenue made by the person and,
2-6 on request of the commissioners court of the county or other
2-7 person, shall make the records available for inspection and review
2-8 to the commissioners court or other person.
2-9 (c) Hotel occupancy tax revenue spent for a purpose
2-10 authorized by this section may be spent for day-to-day operations,
2-11 supplies, salaries, office rental, travel expenses, and other
2-12 administrative costs only if those administrative costs are
2-13 incurred directly in the promotion and servicing expenditures
2-14 authorized by the applicable provisions of this subchapter
2-15 governing the use of revenue by that particular county. If a
2-16 county or other public or private entity that conducts an activity
2-17 authorized by the applicable provisions of this subchapter
2-18 governing the use of revenue by that particular county conducts
2-19 other activities that are not authorized, the portion of the total
2-20 administrative costs of the entity for which hotel occupancy tax
2-21 revenue may be used may not exceed the portion of those
2-22 administrative costs actually incurred in conducting the authorized
2-23 activities.
2-24 (d) County hotel occupancy tax revenue may not be spent for
2-25 travel for a person to attend an event or conduct an activity the
2-26 primary purpose of which is not directly related to the promotion
2-27 of tourism and the convention and hotel industry or the performance
2-28 of the person's job in an efficient and professional manner.
2-29 (e) Revenue derived from the tax authorized by this chapter
2-30 shall be expended in a manner directly enhancing and promoting
2-31 tourism and the convention and hotel industry as permitted by the
2-32 applicable provisions of this subchapter governing the use of
2-33 revenue by that particular county. That revenue may not be used
2-34 for the general revenue purposes or general governmental operations
2-35 of a county.
2-36 SECTION 3. Section 352.102(a)(1), Tax Code, is amended to
2-37 read as follows:
2-38 Sec. 352.102. Use of Revenue: Counties Bordering Mexico.
2-39 (a) Except as provided by Subsection (b), the revenue from a tax
2-40 imposed under this chapter by a county that borders the Republic of
2-41 Mexico and that is further described by Section 352.002(a)(2) may
2-42 only be used for:
2-43 (1) the acquisition of sites for and the construction,
2-44 improvement, enlarging, equipping, repairing, operation, and
2-45 maintenance of convention center facilities or visitor information
2-46 centers, or both <including civic center convention buildings,
2-47 auditoriums, coliseums, civic theaters, museums, and parking areas
2-48 or facilities for the parking or storage of motor vehicles or other
2-49 conveyances located at or in the immediate vicinity of the
2-50 convention center facilities>;
2-51 SECTION 4. Section 352.103(1), Tax Code, is amended to read
2-52 as follows:
2-53 Sec. 352.103. Use of Revenue: Counties With No
2-54 Municipality. The revenue from a tax imposed under this chapter by
2-55 a county that has no municipality may be used only for:
2-56 (1) the acquisition of sites for and the construction,
2-57 improvement, enlarging, equipping, repairing, operation, and
2-58 maintenance of convention center facilities or visitor information
2-59 centers, or both <including civic center convention buildings,
2-60 auditoriums, coliseums, civic theaters, museums, and parking areas
2-61 or facilities for the parking or storage of motor vehicles or other
2-62 conveyances located at or in the immediate vicinity of the
2-63 convention center facilities>;
2-64 SECTION 5. Section 352.1033, Tax Code, is amended by adding
2-65 Subsection (b) to read as follows:
2-66 (b) A county that borders the Gulf of Mexico and that is
2-67 authorized to impose the tax by Section 352.002(a)(6) may use 50
2-68 percent or less of the revenue from the tax for the promotion of
2-69 tourism.
2-70 SECTION 6. Section 5 of this Act applies only to revenue
3-1 from a tax imposed under Chapter 352, Tax Code, sent or paid to a
3-2 county on or after the effective date of this Act.
3-3 SECTION 7. This Act does not apply to the use of tax revenue
3-4 pledged to secure bonds issued before the effective date of this
3-5 Act. Tax revenue pledged to secure bonds issued before the
3-6 effective date of this Act is governed by the law in effect on the
3-7 date the bonds were issued, and that law is continued in effect for
3-8 that purpose.
3-9 SECTION 8. The importance of this legislation and the
3-10 crowded condition of the calendars in both houses create an
3-11 emergency and an imperative public necessity that the
3-12 constitutional rule requiring bills to be read on three several
3-13 days in each house be suspended, and this rule is hereby suspended.
3-14 * * * * *
3-15 Austin,
3-16 Texas
3-17 May 10, 1993
3-18 Hon. Bob Bullock
3-19 President of the Senate
3-20 Sir:
3-21 We, your Committee on Finance to which was referred H.B. No. 891,
3-22 have had the same under consideration, and I am instructed to
3-23 report it back to the Senate with the recommendation that it do not
3-24 pass, but that the Committee Substitute adopted in lieu thereof do
3-25 pass and be printed.
3-26 Montford,
3-27 Chairman
3-28 * * * * *
3-29 WITNESSES
3-30 FOR AGAINST ON
3-31 ___________________________________________________________________
3-32 Name: Don Hansen, Exec. Vice President x
3-33 Representing: Texas Hotel & Motel Assn.
3-34 City: Austin
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