1-1 By: Haggerty (Senate Sponsor - Armbrister) H.B. No. 1123
1-2 (In the Senate - Received from the House May 13, 1993;
1-3 May 14, 1993, read first time and referred to Committee on Finance;
1-4 May 19, 1993, reported favorably by the following vote: Yeas 13,
1-5 Nays 0; May 19, 1993, sent to printer.)
1-6 COMMITTEE VOTE
1-7 Yea Nay PNV Absent
1-8 Montford x
1-9 Turner x
1-10 Armbrister x
1-11 Barrientos x
1-12 Bivins x
1-13 Ellis x
1-14 Haley x
1-15 Moncrief x
1-16 Parker x
1-17 Ratliff x
1-18 Sims x
1-19 Truan x
1-20 Zaffirini x
1-21 A BILL TO BE ENTITLED
1-22 AN ACT
1-23 relating to the use of county hotel occupancy taxes.
1-24 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
1-25 SECTION 1. Section 352.001, Tax Code, is amended to read as
1-26 follows:
1-27 Sec. 352.001. DEFINITIONS <DEFINITION>. In this chapter:
1-28 (1) "Hotel"<, "hotel"> has the meaning assigned by
1-29 Section 156.001(1).
1-30 (2) "Convention center facilities" or "convention
1-31 center complex" means civic centers, civic center buildings,
1-32 auditoriums, exhibition halls, and coliseums that are owned by the
1-33 county or that are managed in whole or part by the county. The
1-34 term includes parking areas or facilities that are for the parking
1-35 or storage of conveyances and that are located at or in the
1-36 immediate vicinity of other convention center facilities.
1-37 (3) "Tourism" means the guidance or management of
1-38 tourists.
1-39 (4) "Tourist" means an individual who travels from the
1-40 individual's residence to a different municipality, county, state,
1-41 or country for pleasure, recreation, education, or culture.
1-42 (5) "Visitor information center" or "tourism
1-43 information center" means a building or portion of a building used
1-44 to distribute or disseminate information to tourists.
1-45 SECTION 2. Section 352.005, Tax Code, is amended to read as
1-46 follows:
1-47 Sec. 352.005. Reimbursement for Tax Collection Expenses.
1-48 <(a)> A county may permit a person who is required to collect and
1-49 pay over to the county the tax authorized by this chapter not more
1-50 than one percent of the amount collected and required to be
1-51 reported as reimbursement to the person for the costs in collecting
1-52 the tax.
1-53 <(b) This section does not apply to a county that has no
1-54 municipality.>
1-55 SECTION 3. Subchapter B, Chapter 352, Tax Code, is amended
1-56 by adding Section 352.1015 to read as follows:
1-57 Sec. 352.1015. USE OF REVENUE: GENERAL PROVISIONS.
1-58 (a) The commissioners court of a county by contract may delegate
1-59 to a person, including another governmental entity or a private
1-60 organization, the management or supervision of programs and
1-61 activities funded with revenue from the tax authorized by this
1-62 chapter. The commissioners court in writing shall approve in
1-63 advance the annual budget of the person to which it delegates those
1-64 functions and shall require the person to make periodic reports to
1-65 the commissioners court at least quarterly listing the expenditures
1-66 made by the person with revenue derived from the tax authorized by
1-67 this chapter. The person must maintain revenue provided from the
1-68 tax authorized by this chapter in a separate account established
2-1 for that purpose and may not commingle that revenue with any other
2-2 money. The commissioners court may not delegate to any person the
2-3 management or supervision of its tourist and convention programs
2-4 and activities funded with revenue from the tax authorized by this
2-5 chapter other than by contract as provided by this subsection. The
2-6 approval by the commissioners court of the county of the annual
2-7 budget of the person to whom the commissioners court delegates
2-8 those functions creates a fiduciary duty in the person with respect
2-9 to the revenue provided by the tax authorized under the contract.
2-10 (b) A person with whom a county contracts under this section
2-11 shall maintain complete and accurate financial records of each
2-12 expenditure of hotel occupancy tax revenue made by the person and,
2-13 on request of the commissioners court of the county or other
2-14 person, shall make the records available for inspection and review
2-15 to the commissioners court or other person.
2-16 (c) Hotel occupancy tax revenue spent for a purpose
2-17 authorized by this section may be spent for day-to-day operations,
2-18 supplies, salaries, office rental, travel expenses, and other
2-19 administrative costs only if those administrative costs are
2-20 incurred directly in the promotion and servicing expenditures
2-21 authorized by the applicable provisions of this subchapter
2-22 governing the use of revenue by that particular county. If a
2-23 county or other public or private entity that conducts an activity
2-24 authorized by the applicable provisions of this subchapter
2-25 governing the use of revenue by that particular county conducts
2-26 other activities that are not authorized, the portion of the total
2-27 administrative costs of the entity for which hotel occupancy tax
2-28 revenue may be used may not exceed the portion of those
2-29 administrative costs actually incurred in conducting the authorized
2-30 activities.
2-31 (d) County hotel occupancy tax revenue may not be spent for
2-32 travel for a person to attend an event or conduct an activity the
2-33 primary purpose of which is not directly related to the promotion
2-34 of tourism and the convention and hotel industry or the performance
2-35 of the person's job in an efficient and professional manner.
2-36 (e) Revenue derived from the tax authorized by this chapter
2-37 is to be expended in a manner directly enhancing and promoting
2-38 tourism and the convention and hotel industry as permitted by the
2-39 applicable provisions of this subchapter governing the use of
2-40 revenue by that particular county. That revenue may not be used
2-41 for the general revenue purposes or general governmental operations
2-42 of a county.
2-43 SECTION 4. Sections 352.102, 352.103, and 352.1033, Tax
2-44 Code, are amended to read as follows:
2-45 Sec. 352.102. Use of Revenue: Counties Bordering Mexico.
2-46 (a) Except as provided by Subsection (b), the revenue from a tax
2-47 imposed under this chapter by a county that borders the Republic of
2-48 Mexico and that is further described by Section 352.002(a)(2) may
2-49 only be used for:
2-50 (1) the purposes provided by Sections 351.101(a)(1)
2-51 and (2);
2-52 (2) <acquisition of sites for and the construction,
2-53 improvement, enlarging, equipping, repairing, operation, and
2-54 maintenance of convention center facilities including civic center
2-55 convention buildings, auditoriums, coliseums, civic theaters,
2-56 museums, and parking areas or facilities for the parking or storage
2-57 of motor vehicles or other conveyances located at or in the
2-58 immediate vicinity of the convention center facilities;>
2-59 <(2) the furnishing of facilities, personnel, and
2-60 materials for the registration of convention delegates or
2-61 registrants;>
2-62 <(3)> general promotion and tourist advertising of the
2-63 county and its vicinity and conducting a solicitation program to
2-64 attract conventions and visitors, any of which may be conducted by
2-65 the county or through contracts with persons or organizations
2-66 selected by the county; or
2-67 (3) <(4)> the encouragement, promotion, improvement,
2-68 or application of historical preservation and restoration either by
2-69 the county or through contracts with persons or organizations
2-70 selected by the county.
3-1 (b) A county that borders the Republic of Mexico and that is
3-2 further described by Section 352.002(a)(2) may use 15 percent or
3-3 less of the revenue collected each fiscal year from the tax imposed
3-4 under this chapter for the purposes provided by Section
3-5 351.101(a)(4) <encouragement, promotion, improvement, and
3-6 application of the arts, including instrumental and vocal music,
3-7 dance, drama, folk art, creative writing, architecture, design and
3-8 allied fields, painting, sculpture, photography, graphic and craft
3-9 arts, motion pictures, radio, television, tape and sound recording,
3-10 and other arts related to the presentation, performance, execution,
3-11 and exhibition of these major art forms>.
3-12 Sec. 352.103. Use of Revenue: Counties With No
3-13 Municipality. The revenue from a tax imposed under this chapter by
3-14 a county that has no municipality may be used only for:
3-15 (1) the purposes provided by Sections 351.101(a)(1),
3-16 (2), and (4);
3-17 (2) <the acquisition of sites for and the
3-18 construction, improvement, enlarging, equipping, repairing,
3-19 operation, and maintenance of convention center facilities
3-20 including civic center convention buildings, auditoriums,
3-21 coliseums, civic theaters, museums, and parking areas or facilities
3-22 for the parking or storage of motor vehicles or other conveyances
3-23 located at or in the immediate vicinity of the convention center
3-24 facilities;>
3-25 <(2) the furnishing of facilities, personnel, and
3-26 materials for the registration of convention delegates or
3-27 registrants;>
3-28 <(3)> advertising for general promotional and tourist
3-29 advertising of the county and conducting a solicitation <and
3-30 operating> program to attract conventions and visitors either by
3-31 the county or through contracts with persons or organizations
3-32 selected by the commissioners court; and
3-33 (3) <(4) the encouragement, promotion, improvement,
3-34 and application of the arts, including music (instrumental and
3-35 vocal), dance, drama, folk art, creative writing, architecture,
3-36 design and allied fields, painting, sculpture, photography, graphic
3-37 and craft arts, motion pictures, television, radio, tape and sound
3-38 recording, and the arts related to the presentation, performance,
3-39 execution, and exhibition of these major art forms; and>
3-40 <(5)> historical preservation and restoration.
3-41 Sec. 352.1033. Use of Revenue; Counties Bordering the Gulf
3-42 of Mexico. <(a)> The revenue from a tax imposed under this
3-43 chapter by a county that borders the Gulf of Mexico authorized to
3-44 impose the tax by Section 352.002(a)(6) may be used only to:
3-45 (1) clean public beaches;
3-46 (2) acquire, furnish, or maintain facilities,
3-47 including parks, that enhance public access to beaches;
3-48 (3) provide and maintain public restrooms on or
3-49 adjacent to beaches or beach access facilities; <and>
3-50 (4) provide and maintain litter containers on or
3-51 adjacent to beaches or beach access facilities; and
3-52 (5) advertise and conduct solicitations and
3-53 promotional programs to attract tourists and convention delegates
3-54 or registrants to the county or its vicinity, any of which may be
3-55 conducted by the county or through contracts with persons or
3-56 organizations selected by the county.
3-57 SECTION 5. (a) This Act takes effect September 1, 1993.
3-58 (b) This Act does not apply to the use of tax revenue
3-59 pledged to secure bonds issued before the effective date of this
3-60 Act. Tax revenue pledged to secure bonds issued before the
3-61 effective date of this Act are governed by the law in effect on the
3-62 date the bonds were issued, and that law is continued in effect for
3-63 that purpose.
3-64 SECTION 6. The importance of this legislation and the
3-65 crowded condition of the calendars in both houses create an
3-66 emergency and an imperative public necessity that the
3-67 constitutional rule requiring bills to be read on three several
3-68 days in each house be suspended, and this rule is hereby suspended.
3-69 * * * * *
3-70 Austin,
4-1 Texas
4-2 May 19, 1993
4-3 Hon. Bob Bullock
4-4 President of the Senate
4-5 Sir:
4-6 We, your Committee on Finance to which was referred H.B. No. 1123,
4-7 have had the same under consideration, and I am instructed to
4-8 report it back to the Senate with the recommendation that it do
4-9 pass and be printed.
4-10 Montford,
4-11 Chairman
4-12 * * * * *
4-13 WITNESSES
4-14 FOR AGAINST ON
4-15 ___________________________________________________________________
4-16 Name: Don Hansen x
4-17 Representing: Tx Hotel & Motel Assn
4-18 City: Austin
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