1-1                                   AN ACT
 1-2     relating to state and municipal hotel occupancy tax revenue.
 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
                                                 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:  _____________________