H.B. No. 1123
1-1 AN ACT
1-2 relating to the use of county hotel occupancy taxes.
1-3 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
1-4 SECTION 1. Section 352.001, Tax Code, is amended to read as
1-5 follows:
1-6 Sec. 352.001. DEFINITIONS <DEFINITION>. In this chapter:
1-7 (1) "Hotel"<, "hotel"> has the meaning assigned by
1-8 Section 156.001(1).
1-9 (2) "Convention center facilities" or "convention
1-10 center complex" means civic centers, civic center buildings,
1-11 auditoriums, exhibition halls, and coliseums that are owned by the
1-12 county or that are managed in whole or part by the county. The
1-13 term includes parking areas or facilities that are for the parking
1-14 or storage of conveyances and that are located at or in the
1-15 immediate vicinity of other convention center facilities.
1-16 (3) "Tourism" means the guidance or management of
1-17 tourists.
1-18 (4) "Tourist" means an individual who travels from the
1-19 individual's residence to a different municipality, county, state,
1-20 or country for pleasure, recreation, education, or culture.
1-21 (5) "Visitor information center" or "tourism
1-22 information center" means a building or portion of a building used
1-23 to distribute or disseminate information to tourists.
1-24 SECTION 2. Section 352.005, Tax Code, is amended to read as
2-1 follows:
2-2 Sec. 352.005. Reimbursement for Tax Collection Expenses.
2-3 <(a)> A county may permit a person who is required to collect and
2-4 pay over to the county the tax authorized by this chapter not more
2-5 than one percent of the amount collected and required to be
2-6 reported as reimbursement to the person for the costs in collecting
2-7 the tax.
2-8 <(b) This section does not apply to a county that has no
2-9 municipality.>
2-10 SECTION 3. Subchapter B, Chapter 352, Tax Code, is amended
2-11 by adding Section 352.1015 to read as follows:
2-12 Sec. 352.1015. USE OF REVENUE: GENERAL PROVISIONS. (a)
2-13 The commissioners court of a county by contract may delegate to a
2-14 person, including another governmental entity or a private
2-15 organization, the management or supervision of programs and
2-16 activities funded with revenue from the tax authorized by this
2-17 chapter. The commissioners court in writing shall approve in
2-18 advance the annual budget of the person to which it delegates those
2-19 functions and shall require the person to make periodic reports to
2-20 the commissioners court at least quarterly listing the expenditures
2-21 made by the person with revenue derived from the tax authorized by
2-22 this chapter. The person must maintain revenue provided from the
2-23 tax authorized by this chapter in a separate account established
2-24 for that purpose and may not commingle that revenue with any other
2-25 money. The commissioners court may not delegate to any person the
2-26 management or supervision of its tourist and convention programs
2-27 and activities funded with revenue from the tax authorized by this
3-1 chapter other than by contract as provided by this subsection. The
3-2 approval by the commissioners court of the county of the annual
3-3 budget of the person to whom the commissioners court delegates
3-4 those functions creates a fiduciary duty in the person with respect
3-5 to the revenue provided by the tax authorized under the contract.
3-6 (b) A person with whom a county contracts under this section
3-7 shall maintain complete and accurate financial records of each
3-8 expenditure of hotel occupancy tax revenue made by the person and,
3-9 on request of the commissioners court of the county or other
3-10 person, shall make the records available for inspection and review
3-11 to the commissioners court or other person.
3-12 (c) Hotel occupancy tax revenue spent for a purpose
3-13 authorized by this section may be spent for day-to-day operations,
3-14 supplies, salaries, office rental, travel expenses, and other
3-15 administrative costs only if those administrative costs are
3-16 incurred directly in the promotion and servicing expenditures
3-17 authorized by the applicable provisions of this subchapter
3-18 governing the use of revenue by that particular county. If a
3-19 county or other public or private entity that conducts an activity
3-20 authorized by the applicable provisions of this subchapter
3-21 governing the use of revenue by that particular county conducts
3-22 other activities that are not authorized, the portion of the total
3-23 administrative costs of the entity for which hotel occupancy tax
3-24 revenue may be used may not exceed the portion of those
3-25 administrative costs actually incurred in conducting the authorized
3-26 activities.
3-27 (d) County hotel occupancy tax revenue may not be spent for
4-1 travel for a person to attend an event or conduct an activity the
4-2 primary purpose of which is not directly related to the promotion
4-3 of tourism and the convention and hotel industry or the performance
4-4 of the person's job in an efficient and professional manner.
4-5 (e) Revenue derived from the tax authorized by this chapter
4-6 is to be expended in a manner directly enhancing and promoting
4-7 tourism and the convention and hotel industry as permitted by the
4-8 applicable provisions of this subchapter governing the use of
4-9 revenue by that particular county. That revenue may not be used
4-10 for the general revenue purposes or general governmental operations
4-11 of a county.
4-12 SECTION 4. Sections 352.102, 352.103, and 352.1033, Tax
4-13 Code, are amended to read as follows:
4-14 Sec. 352.102. Use of Revenue: Counties Bordering Mexico.
4-15 (a) Except as provided by Subsection (b), the revenue from a tax
4-16 imposed under this chapter by a county that borders the Republic of
4-17 Mexico and that is further described by Section 352.002(a)(2) may
4-18 only be used for:
4-19 (1) the purposes provided by Sections 351.101(a)(1)
4-20 and (2);
4-21 (2) <acquisition of sites for and the construction,
4-22 improvement, enlarging, equipping, repairing, operation, and
4-23 maintenance of convention center facilities including civic center
4-24 convention buildings, auditoriums, coliseums, civic theaters,
4-25 museums, and parking areas or facilities for the parking or storage
4-26 of motor vehicles or other conveyances located at or in the
4-27 immediate vicinity of the convention center facilities;>
5-1 <(2) the furnishing of facilities, personnel, and
5-2 materials for the registration of convention delegates or
5-3 registrants;>
5-4 <(3)> general promotion and tourist advertising of the
5-5 county and its vicinity and conducting a solicitation program to
5-6 attract conventions and visitors, any of which may be conducted by
5-7 the county or through contracts with persons or organizations
5-8 selected by the county; or
5-9 (3) <(4)> the encouragement, promotion, improvement,
5-10 or application of historical preservation and restoration either by
5-11 the county or through contracts with persons or organizations
5-12 selected by the county.
5-13 (b) A county that borders the Republic of Mexico and that is
5-14 further described by Section 352.002(a)(2) may use 15 percent or
5-15 less of the revenue collected each fiscal year from the tax imposed
5-16 under this chapter for the purposes provided by Section
5-17 351.101(a)(4) <encouragement, promotion, improvement, and
5-18 application of the arts, including instrumental and vocal music,
5-19 dance, drama, folk art, creative writing, architecture, design and
5-20 allied fields, painting, sculpture, photography, graphic and craft
5-21 arts, motion pictures, radio, television, tape and sound recording,
5-22 and other arts related to the presentation, performance, execution,
5-23 and exhibition of these major art forms>.
5-24 Sec. 352.103. Use of Revenue: Counties With No
5-25 Municipality. The revenue from a tax imposed under this chapter by
5-26 a county that has no municipality may be used only for:
5-27 (1) the purposes provided by Sections 351.101(a)(1),
6-1 (2), and (4);
6-2 (2) <the acquisition of sites for and the
6-3 construction, improvement, enlarging, equipping, repairing,
6-4 operation, and maintenance of convention center facilities
6-5 including civic center convention buildings, auditoriums,
6-6 coliseums, civic theaters, museums, and parking areas or facilities
6-7 for the parking or storage of motor vehicles or other conveyances
6-8 located at or in the immediate vicinity of the convention center
6-9 facilities;>
6-10 <(2) the furnishing of facilities, personnel, and
6-11 materials for the registration of convention delegates or
6-12 registrants;>
6-13 <(3)> advertising for general promotional and tourist
6-14 advertising of the county and conducting a solicitation <and
6-15 operating> program to attract conventions and visitors either by
6-16 the county or through contracts with persons or organizations
6-17 selected by the commissioners court; and
6-18 (3) <(4) the encouragement, promotion, improvement,
6-19 and application of the arts, including music (instrumental and
6-20 vocal), dance, drama, folk art, creative writing, architecture,
6-21 design and allied fields, painting, sculpture, photography, graphic
6-22 and craft arts, motion pictures, television, radio, tape and sound
6-23 recording, and the arts related to the presentation, performance,
6-24 execution, and exhibition of these major art forms; and>
6-25 <(5)> historical preservation and restoration.
6-26 Sec. 352.1033. Use of Revenue; Counties Bordering the Gulf
6-27 of Mexico. <(a)> The revenue from a tax imposed under this
7-1 chapter by a county that borders the Gulf of Mexico authorized to
7-2 impose the tax by Section 352.002(a)(6) may be used only to:
7-3 (1) clean public beaches;
7-4 (2) acquire, furnish, or maintain facilities,
7-5 including parks, that enhance public access to beaches;
7-6 (3) provide and maintain public restrooms on or
7-7 adjacent to beaches or beach access facilities; <and>
7-8 (4) provide and maintain litter containers on or
7-9 adjacent to beaches or beach access facilities; and
7-10 (5) advertise and conduct solicitations and
7-11 promotional programs to attract tourists and convention delegates
7-12 or registrants to the county or its vicinity, any of which may be
7-13 conducted by the county or through contracts with persons or
7-14 organizations selected by the county.
7-15 SECTION 5. (a) This Act takes effect September 1, 1993.
7-16 (b) This Act does not apply to the use of tax revenue
7-17 pledged to secure bonds issued before the effective date of this
7-18 Act. Tax revenue pledged to secure bonds issued before the
7-19 effective date of this Act are governed by the law in effect on the
7-20 date the bonds were issued, and that law is continued in effect for
7-21 that purpose.
7-22 SECTION 6. The importance of this legislation and the
7-23 crowded condition of the calendars in both houses create an
7-24 emergency and an imperative public necessity that the
7-25 constitutional rule requiring bills to be read on three several
7-26 days in each house be suspended, and this rule is hereby suspended.