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. 1-11 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: 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 * * * * *