73R4544 CBH-F
By Haggerty H.B. No. 1123
A BILL TO BE ENTITLED
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 352.003(a), Tax Code, is amended to read
2-1 as follows:
2-2 (a) Except as provided by this section the tax authorized by
2-3 this chapter may be imposed at any rate not to exceed four <seven>
2-4 percent of the price paid for a room in a hotel <or, until January
2-5 1, 2001, eight percent of the price paid for a room in a hotel in a
2-6 county with a population of more than two million>.
2-7 SECTION 3. Section 352.005, Tax Code, is amended to read as
2-8 follows:
2-9 Sec. 352.005. Reimbursement for Tax Collection Expenses.
2-10 <(a)> A county may permit a person who is required to collect and
2-11 pay over to the county the tax authorized by this chapter not more
2-12 than one percent of the amount collected and required to be
2-13 reported as reimbursement to the person for the costs in collecting
2-14 the tax.
2-15 <(b) This section does not apply to a county that has no
2-16 municipality.>
2-17 SECTION 4. Subchapter A, Chapter 352, Tax Code, is amended
2-18 by adding Section 352.0042 to read as follows:
2-19 Sec. 352.0042. ENFORCEMENT BY ATTORNEY GENERAL. (a) The
2-20 attorney general may investigate an alleged violation of this
2-21 chapter and may bring suit against a person, including a county or
2-22 a person contracting with a county, to stop a violation of this
2-23 chapter or to compel a person to comply with this chapter.
2-24 (b) The remedy provided by this section is in addition to
2-25 other available remedies.
2-26 SECTION 5. Section 352.101, Tax Code, is amended to read as
2-27 follows:
3-1 Sec. 352.101. Use of Revenue: Counties of More Than Two
3-2 Million Persons. (a) The revenue from a tax imposed under this
3-3 chapter by a county having a population of more than two million
3-4 may be used only for:
3-5 (1) purposes provided by Sections 351.101(a)(1) and
3-6 (2) <the acquisition of sites for and the construction,
3-7 improvement, enlarging, equipping, repairing, operation, and
3-8 maintenance of public improvements such as civic centers, civic
3-9 center buildings, auditoriums, exhibition halls, coliseums, and
3-10 stadiums, including sports and other facilities that serve the
3-11 purpose of attracting visitors and tourists to the county, and
3-12 parking areas or facilities for the parking or storage of motor
3-13 vehicles or other conveyances located at or in the immediate
3-14 vicinity of the convention center facilities>; and
3-15 (2) <the furnishing of facilities, personnel, and
3-16 materials for the registration of convention delegates or
3-17 registrants; and>
3-18 <(3)> general promotion and tourist advertising of the
3-19 county and its vicinity and conducting a solicitation program to
3-20 attract conventions and visitors, any of which may be conducted by
3-21 the county or through contracts with persons or organizations
3-22 selected by the county.
3-23 (b) A county having a population of more than two million
3-24 shall <endeavor to> coordinate its promotional and advertising
3-25 activities conducted under authority of Subsection (a)(2) <(a)(3)>
3-26 with the city having the largest population in the county.
3-27 (c) A county to which this section applies may delegate the
4-1 authority to spend the county's hotel occupancy tax revenue to a
4-2 private organization only through a contract as provided by Section
4-3 352.1015. The contract must require the organization to select a
4-4 new governing body as soon as practicable after the contract takes
4-5 effect and to limit the composition of its governing body to not
4-6 more than 54 members, and provide that the appointment, election,
4-7 or other designation of each member of the governing body be
4-8 submitted to and approved by the governing body of the county as
4-9 long as the contract is in effect. The contract is not valid
4-10 unless before the contract is executed the private organization
4-11 amends its charter, bylaws, or other governing rules to conform to
4-12 the requirements of this subsection.
4-13 (d) Subsection (c) does not apply to any private entity,
4-14 person, or organization that receives tax revenue under Section
4-15 351.101(a) and makes expenditures pursuant to Section
4-16 351.101(a)(4).
4-17 SECTION 6. Subchapter B, Chapter 352, Tax Code, is amended
4-18 by adding Section 352.1015 to read as follows:
4-19 Sec. 352.1015. USE OF REVENUE: GENERAL PROVISIONS. (a)
4-20 The commissioners court of a county by contract may delegate to a
4-21 person, including another governmental entity or a private
4-22 organization, the management or supervision of programs and
4-23 activities funded with revenue from the tax authorized by this
4-24 chapter. The commissioners court in writing shall approve in
4-25 advance the annual budget of the person to which it delegates those
4-26 functions and shall require the person to make periodic reports to
4-27 the commissioners court at least quarterly listing the expenditures
5-1 made by the person with revenue derived from the tax authorized by
5-2 this chapter. The person must maintain revenue provided from the
5-3 tax authorized by this chapter in a separate account established
5-4 for that purpose and may not commingle that revenue with any other
5-5 money. The commissioners court may not delegate to any person the
5-6 management or supervision of its tourist and convention programs
5-7 and activities funded with revenue from the tax authorized by this
5-8 chapter other than by contract as provided by this subsection. The
5-9 approval by the commissioners court of the county of the annual
5-10 budget of the person to whom the commissioners court delegates
5-11 those functions creates a fiduciary duty in the person with respect
5-12 to the revenue provided by the tax authorized under the contract.
5-13 (b) A person with whom a county contracts under this section
5-14 shall maintain complete and accurate financial records of each
5-15 expenditure of hotel occupancy tax revenue made by the person and,
5-16 on request of the commissioners court of the county or other
5-17 person, shall make the records available for inspection and review
5-18 to the commissioners court or other person.
5-19 (c) Hotel occupancy tax revenue spent for a purpose
5-20 authorized by this section may be spent for day-to-day operations,
5-21 supplies, salaries, office rental, travel expenses, and other
5-22 administrative costs only if those administrative costs are
5-23 incurred directly in the promotion and servicing expenditures
5-24 authorized by the applicable provisions of this subchapter
5-25 governing the use of revenue by that particular county. If a
5-26 county or other public or private entity that conducts an activity
5-27 authorized by the applicable provisions of this subchapter
6-1 governing the use of revenue by that particular county conducts
6-2 other activities that are not authorized, the portion of the total
6-3 administrative costs of the entity for which hotel occupancy tax
6-4 revenue may be used may not exceed the portion of those
6-5 administrative costs actually incurred in conducting the authorized
6-6 activities.
6-7 (d) County hotel occupancy tax revenue may not be spent for
6-8 travel for a person to attend an event or conduct an activity the
6-9 primary purpose of which is not directly related to the promotion
6-10 of tourism and the convention and hotel industry or the performance
6-11 of the person's job in an efficient and professional manner.
6-12 (e) Revenue derived from the tax authorized by this chapter
6-13 is to be expended in a manner directly enhancing and promoting
6-14 tourism and the convention and hotel industry as permitted by the
6-15 applicable provisions of this subchapter governing the use of
6-16 revenue by that particular county. That revenue may not be used
6-17 for the general revenue purposes or general governmental operations
6-18 of a county.
6-19 SECTION 7. Sections 352.102, 352.103, and 352.1033, Tax
6-20 Code, are amended to read as follows:
6-21 Sec. 352.102. Use of Revenue: Counties Bordering Mexico.
6-22 (a) Except as provided by Subsection (b), the revenue from a tax
6-23 imposed under this chapter by a county that borders the Republic of
6-24 Mexico and that is further described by Section 352.002(a)(2) may
6-25 only be used for:
6-26 (1) the purposes provided by Sections 351.101(a)(1)
6-27 and (2);
7-1 (2) <acquisition of sites for and the construction,
7-2 improvement, enlarging, equipping, repairing, operation, and
7-3 maintenance of convention center facilities including civic center
7-4 convention buildings, auditoriums, coliseums, civic theaters,
7-5 museums, and parking areas or facilities for the parking or storage
7-6 of motor vehicles or other conveyances located at or in the
7-7 immediate vicinity of the convention center facilities;>
7-8 <(2) the furnishing of facilities, personnel, and
7-9 materials for the registration of convention delegates or
7-10 registrants;>
7-11 <(3)> general promotion and tourist advertising of the
7-12 county and its vicinity and conducting a solicitation program to
7-13 attract conventions and visitors, any of which may be conducted by
7-14 the county or through contracts with persons or organizations
7-15 selected by the county; or
7-16 (3) <(4)> the encouragement, promotion, improvement,
7-17 or application of historical preservation and restoration either by
7-18 the county or through contracts with persons or organizations
7-19 selected by the county.
7-20 (b) A county that borders the Republic of Mexico and that is
7-21 further described by Section 352.002(a)(2) may use 15 percent or
7-22 less of the revenue collected each fiscal year from the tax imposed
7-23 under this chapter for the purposes provided by Section
7-24 351.101(a)(4) <encouragement, promotion, improvement, and
7-25 application of the arts, including instrumental and vocal music,
7-26 dance, drama, folk art, creative writing, architecture, design and
7-27 allied fields, painting, sculpture, photography, graphic and craft
8-1 arts, motion pictures, radio, television, tape and sound recording,
8-2 and other arts related to the presentation, performance, execution,
8-3 and exhibition of these major art forms>.
8-4 Sec. 352.103. Use of Revenue: Counties With No
8-5 Municipality. The revenue from a tax imposed under this chapter by
8-6 a county that has no municipality may be used only for:
8-7 (1) the purposes provided by Sections 351.101(a)(1),
8-8 (2), and (4);
8-9 (2) <the acquisition of sites for and the
8-10 construction, improvement, enlarging, equipping, repairing,
8-11 operation, and maintenance of convention center facilities
8-12 including civic center convention buildings, auditoriums,
8-13 coliseums, civic theaters, museums, and parking areas or facilities
8-14 for the parking or storage of motor vehicles or other conveyances
8-15 located at or in the immediate vicinity of the convention center
8-16 facilities;>
8-17 <(2) the furnishing of facilities, personnel, and
8-18 materials for the registration of convention delegates or
8-19 registrants;>
8-20 <(3)> advertising for general promotional and tourist
8-21 advertising of the county and conducting a solicitation <and
8-22 operating> program to attract conventions and visitors either by
8-23 the county or through contracts with persons or organizations
8-24 selected by the commissioners court; and
8-25 (3) <(4) the encouragement, promotion, improvement,
8-26 and application of the arts, including music (instrumental and
8-27 vocal), dance, drama, folk art, creative writing, architecture,
9-1 design and allied fields, painting, sculpture, photography, graphic
9-2 and craft arts, motion pictures, television, radio, tape and sound
9-3 recording, and the arts related to the presentation, performance,
9-4 execution, and exhibition of these major art forms; and>
9-5 <(5)> historical preservation and restoration.
9-6 Sec. 352.1033. Use of Revenue; Counties Bordering the Gulf
9-7 of Mexico. <(a)> The revenue from a tax imposed under this
9-8 chapter by a county that borders the Gulf of Mexico authorized to
9-9 impose the tax by Section 352.002(a)(6) may be used only to:
9-10 (1) clean public beaches;
9-11 (2) acquire, furnish, or maintain facilities,
9-12 including parks, that enhance public access to beaches;
9-13 (3) provide and maintain public restrooms on or
9-14 adjacent to beaches or beach access facilities; <and>
9-15 (4) provide and maintain litter containers on or
9-16 adjacent to beaches or beach access facilities; and
9-17 (5) advertise and conduct solicitations and
9-18 promotional programs to attract tourists and convention delegates
9-19 or registrants to the county or its vicinity, any of which may be
9-20 conducted by the county or through contracts with persons or
9-21 organizations selected by the county.
9-22 SECTION 8. (a) This Act takes effect September 1, 1993.
9-23 (b) This Act does not apply to the use of tax revenue
9-24 pledged to secure bonds issued before the effective date of this
9-25 Act. Tax revenue pledged to secure bonds issued before the
9-26 effective date of this Act are governed by the law in effect on the
9-27 date the bonds were issued, and that law is continued in effect for
10-1 that purpose.
10-2 SECTION 9. The importance of this legislation and the
10-3 crowded condition of the calendars in both houses create an
10-4 emergency and an imperative public necessity that the
10-5 constitutional rule requiring bills to be read on three several
10-6 days in each house be suspended, and this rule is hereby suspended.
10-7 COMMITTEE AMENDMENT NO. 1
10-8 Amend HB 1123 as follows:
10-9 Delete Sections 2, 4, and 5 and renumber the appropriate
10-10 sections.
10-11 Haggerty