1-1 AN ACT 1-2 relating to state and municipal hotel occupancy tax revenue. 1-3 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: 1-4 SECTION 1. Subchapter F, Chapter 156, Tax Code, is amended 1-5 by adding Section 156.2512 to read as follows: 1-6 Sec. 156.2512. ALLOCATION OF REVENUE TO CERTAIN 1-7 MUNICIPALITIES. (a) Not later than the last day of the month 1-8 following a calendar quarter, the comptroller shall: 1-9 (1) compute the amount of revenue derived from the 1-10 collection of taxes imposed under this chapter at a rate of one 1-11 percent and received from hotels located in an eligible general-law 1-12 coastal municipality; and 1-13 (2) issue to the eligible general-law coastal 1-14 municipality a warrant drawn on the general revenue fund in the 1-15 amount computed under Subdivision (1). 1-16 (b) An eligible general-law coastal municipality may use 1-17 money received under this section only to clean and maintain public 1-18 beaches in that municipality. 1-19 (c) In this section: 1-20 (1) "Eligible general-law coastal municipality" means 1-21 a general-law municipality: 1-22 (A) that has a population of less than 5,000; 1-23 (B) that borders on the Gulf of Mexico; and 1-24 (C) the boundaries of which are within 30 miles 2-1 of the United Mexican States. 2-2 (2) "Clean and maintain" has the meaning assigned by 2-3 Section 61.063, Natural Resources Code. 2-4 SECTION 2. Section 156.102, Tax Code, is amended to read as 2-5 follows: 2-6 Sec. 156.102. EXCEPTION--RELIGIOUS, CHARITABLE, OR 2-7 EDUCATIONAL ORGANIZATION. (a) This chapter does not impose a tax 2-8 on a corporation or association that is organized and operated 2-9 exclusively for a religious, charitable, or educational purpose if 2-10 no part of the net earnings of the corporation or association inure 2-11 to the benefit of a private shareholder or individual. 2-12 (b) For purposes of this section: 2-13 (1) a corporation or association that is organized and 2-14 operated exclusively for the cleaning of beaches and that has no 2-15 part of its net earnings inure to the benefit of a private 2-16 shareholder or individual is organized and operated exclusively for 2-17 a charitable purpose; and 2-18 (2) a public or private institution of higher 2-19 education is organized and operated exclusively for an educational 2-20 purpose only if the institution is defined as a Texas institution 2-21 of higher education or as a Texas private or independent 2-22 institution of higher education under any subdivision of Section 2-23 61.003, Education Code. 2-24 SECTION 3. Subchapter B, Chapter 351, Tax Code, is amended 2-25 by adding Section 351.1055 to read as follows: 2-26 Sec. 351.1055. ALLOCATION OF REVENUE: CERTAIN HOME-RULE 2-27 MUNICIPALITIES. (a) In this section: 3-1 (1) "Clean and maintain" has the meaning assigned by 3-2 Section 61.063, Natural Resources Code. 3-3 (2) "Public beach" has the meaning assigned by Section 3-4 61.001, Natural Resources Code. 3-5 (b) Notwithstanding any other provision of this chapter, a 3-6 home-rule municipality that borders the Gulf of Mexico and has a 3-7 population of more than 250,000 may use all or any portion of the 3-8 revenue derived from the municipal hotel occupancy tax from hotels 3-9 previously subject to a county hotel occupancy tax to clean and 3-10 maintain public beaches in the municipality. 3-11 SECTION 4. This Act does not apply to the use of tax revenue 3-12 pledged to secure bonds issued before the effective date of this 3-13 Act. Tax revenue pledged to secure bonds issued before the 3-14 effective date of this Act is governed by the law in effect on the 3-15 date the bonds were issued, and that law is continued in effect for 3-16 that purpose. 3-17 SECTION 5. This Act takes effect September 1, 1999. 3-18 SECTION 6. The importance of this legislation and the 3-19 crowded condition of the calendars in both houses create an 3-20 emergency and an imperative public necessity that the 3-21 constitutional rule requiring bills to be read on three several 3-22 days in each house be suspended, and this rule is hereby suspended. _______________________________ _______________________________ President of the Senate Speaker of the House I certify that H.B. No. 1014 was passed by the House on April 23, 1999, by a non-record vote; and that the House concurred in Senate amendments to H.B. No. 1014 on May 27, 1999, by a non-record vote. _______________________________ Chief Clerk of the House I certify that H.B. No. 1014 was passed by the Senate, with amendments, on May 24, 1999, by a viva-voce vote. _______________________________ Secretary of the Senate APPROVED: _____________________ Date _____________________ Governor