1-1     By:  Gallego (Senate Sponsor - Madla)                 H.B. No. 2832

 1-2           (In the Senate - Received from the House April 21, 1997;

 1-3     April 23, 1997, read first time and referred to Committee on

 1-4     Intergovernmental Relations; May 8, 1997, reported favorably by the

 1-5     following vote:  Yeas 9, Nays 1; May 8, 1997, sent to printer.)

 1-6                            A BILL TO BE ENTITLED

 1-7                                   AN ACT

 1-8     relating to the authority of certain counties to impose a county

 1-9     hotel occupancy tax.

1-10           BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:

1-11           SECTION 1.  Section 352.002(a), Tax Code, is amended to read

1-12     as follows:

1-13           (a)  The commissioners courts of the following counties by

1-14     the adoption of an order or resolution may impose a tax on a person

1-15     who, under a lease, concession, permit, right of access, license,

1-16     contract, or agreement, pays for the use or possession or for the

1-17     right to the use or possession of a room that is in a hotel, costs

1-18     $2 or more each day, and is ordinarily used for sleeping:

1-19                 (1)  a county that has a population of more than two

1-20     million;

1-21                 (2)  a county that has a population of 90,000 or more,

1-22     borders the Republic of Mexico, and does not have three or more

1-23     cities that each have a population of more than 17,500;

1-24                 (3)  a county in which there is no municipality;

1-25                 (4)  a county in which there is located an Indian

1-26     reservation under the jurisdiction of the United States government;

1-27                 (5)  a county that has a population of 17,500 or less,

1-28     that has no more than one municipality with a population of less

1-29     than 2,500, and that borders two counties located wholly in the

1-30     Edwards Aquifer Authority established by Chapter 626, Acts of the

1-31     73rd Legislature, Regular Session, 1993;

1-32                 (6)  a county that borders the Gulf of Mexico;

1-33                 (7)  a county that has a population of less than 5,000,

1-34     that borders the Republic of Mexico, and in which there is located

1-35     a major observatory;

1-36                 (8)  a county that has a population of 10,000 or less

1-37     and borders the Toledo Bend Reservoir;

1-38                 (9)  a county that has a population of less than 10,000

1-39     and an area of less than 275 square miles;

1-40                 (10)  a county that has a population of 30,000 or less

1-41     and borders Possum Kingdom Lake;  [and]

1-42                 (11)  a county that borders the Republic of Mexico and

1-43     has a population of more than 250,000 and less than 500,000; and

1-44                 (12)  a county that borders the Republic of Mexico and

1-45     in which there is located a national recreation area.

1-46           SECTION 2.  Subchapter B, Chapter 352, Tax Code, is amended

1-47     by adding Section 352.108 to read as follows:

1-48           Sec. 352.108.  USE OF REVENUE; CERTAIN COUNTIES THAT BORDER

1-49     MEXICO AND CONTAIN A NATIONAL RECREATION AREA.  A county authorized

1-50     to impose a tax under this chapter by Section 352.002(a)(12) may

1-51     use the revenue from the tax only as follows:

1-52                 (1)  75 percent of the revenue for the promotion of

1-53     tourism; and

1-54                 (2)  notwithstanding Section 352.1015, 25 percent of

1-55     the revenue for the general revenue purposes or general

1-56     governmental operations of the county.

1-57           SECTION 3.  The importance of this legislation and the

1-58     crowded condition of the calendars in both houses create an

1-59     emergency and an imperative public necessity that the

1-60     constitutional rule requiring bills to be read on three several

1-61     days in each house be suspended, and this rule is hereby suspended,

1-62     and that this Act take effect and be in force from and after its

1-63     passage, and it is so enacted.