1-1     By:  Oliveira (Senate Sponsor - Lucio)                H.B. No. 1014
 1-2           (In the Senate - Received from the House April 26, 1999;
 1-3     April 27, 1999, read first time and referred to Committee on
 1-4     Economic Development; May 14, 1999, reported adversely, with
 1-5     favorable Committee Substitute by the following vote:  Yeas 4, Nays
 1-6     0; May 14, 1999, sent to printer.)
 1-7     COMMITTEE SUBSTITUTE FOR H.B. No. 1014                  By:  Sibley
 1-8                            A BILL TO BE ENTITLED
 1-9                                   AN ACT
1-10     relating to state and municipal hotel occupancy tax revenue.
1-12           SECTION 1.  Subchapter F, Chapter 156, Tax Code, is amended
1-13     by adding Section 156.2512 to read as follows:
1-14           Sec. 156.2512.  ALLOCATION OF REVENUE TO CERTAIN
1-15     MUNICIPALITIES.  (a)  Not later than the last day of the month
1-16     following a calendar quarter, the comptroller shall:
1-17                 (1)  compute the amount of revenue derived from the
1-18     collection of taxes imposed under this chapter at a rate of one
1-19     percent and received from hotels located in an eligible general-law
1-20     coastal municipality; and
1-21                 (2)  issue to the eligible general-law coastal
1-22     municipality a warrant drawn on the general revenue fund in the
1-23     amount computed under Subdivision (1).
1-24           (b)  An eligible general-law coastal municipality may use
1-25     money received under this section only to clean and maintain public
1-26     beaches in that municipality.
1-27           (c)  In this section:
1-28                 (1)  "Eligible general-law coastal municipality" means
1-29     a general-law municipality:
1-30                       (A)  that has a population of less than 5,000;
1-31                       (B)  that borders on the Gulf of Mexico; and
1-32                       (C)  the boundaries of which are within 30 miles
1-33     of the United Mexican States.
1-34                 (2)  "Clean and maintain" has the meaning assigned by
1-35     Section 61.063, Natural Resources Code.
1-36           SECTION 2.  Section 156.102, Tax Code, is amended to read as
1-37     follows:
1-38           Sec. 156.102.  EXCEPTION--RELIGIOUS, CHARITABLE, OR
1-39     EDUCATIONAL ORGANIZATION.  (a)  This chapter does not impose a tax
1-40     on a corporation or association that is organized and operated
1-41     exclusively for a religious, charitable, or educational purpose if
1-42     no part of the net earnings of the corporation or association inure
1-43     to the benefit of a private shareholder or individual.
1-44           (b)  For purposes of this section:
1-45                 (1)  a corporation or association that is organized and
1-46     operated exclusively for the cleaning of beaches and that has no
1-47     part of its net earnings inure to the benefit of a private
1-48     shareholder or individual is organized and operated exclusively for
1-49     a charitable purpose; and
1-50                 (2)  a public or private institution of higher
1-51     education is organized and operated exclusively for an educational
1-52     purpose only if the institution is defined as an institution of
1-53     higher education in this state or as a private or independent
1-54     institution of higher education under any subdivision of Section
1-55     61.003, Education Code.
1-56           SECTION 3.  Subchapter B, Chapter 351, Tax Code, is amended
1-57     by adding Section 351.1055 to read as follows:
1-58           Sec. 351.1055.  ALLOCATION OF REVENUE:  CERTAIN HOME-RULE
1-59     MUNICIPALITIES.  (a)  In this section:
1-60                 (1)  "Clean and maintain" has the meaning assigned by
1-61     Section 61.063, Natural Resources Code.
1-62                 (2)  "Public beach" has the meaning assigned by Section
1-63     61.001, Natural Resources Code.
1-64           (b)  Notwithstanding any other provision of this chapter, a
 2-1     home-rule municipality that borders the Gulf of Mexico and has a
 2-2     population of more than 250,000 may use all or any portion of the
 2-3     revenue derived from the municipal hotel occupancy tax from hotels
 2-4     previously subject to a county hotel occupancy tax to clean and
 2-5     maintain public beaches in the municipality.
 2-6           SECTION 4.  This Act does not apply to the use of tax revenue
 2-7     pledged to secure bonds issued before the effective date of this
 2-8     Act.  Tax revenue pledged to secure bonds issued before the
 2-9     effective date of this Act is governed by the law in effect on the
2-10     date the bonds were issued, and that law is continued in effect for
2-11     that purpose.
2-12           SECTION 5.  This Act takes effect September 1, 1999.
2-13           SECTION 6.  The importance of this legislation and the
2-14     crowded condition of the calendars in both houses create an
2-15     emergency and an imperative public necessity that the
2-16     constitutional rule requiring bills to be read on three several
2-17     days in each house be suspended, and this rule is hereby suspended.
2-18                                  * * * * *