1-1 By: Luna, Seaman, Capelo (Senate Sponsor - Truan) H.B. No. 1655 1-2 (In the Senate - Received from the House May 3, 1999; 1-3 May 3, 1999, read first time and referred to Committee on 1-4 Intergovernmental Relations; 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. 1655 By: Moncrief 1-8 A BILL TO BE ENTITLED 1-9 AN ACT 1-10 relating to the rate and allocation of the hotel occupancy tax in 1-11 certain municipalities. 1-12 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: 1-13 SECTION 1. Section 351.003, Tax Code, is amended by adding 1-14 Subsection (d) to read as follows: 1-15 (d) The rate in a municipality that borders on the Gulf of 1-16 Mexico and has a population of more than 250,000 may not exceed 1-17 nine percent of the price paid for a room. 1-18 SECTION 2. Subchapter B, Chapter 351, Tax Code, is amended 1-19 by adding Section 351.107 to read as follows: 1-20 Sec. 351.107. ALLOCATION OF REVENUE; CERTAIN LARGE COASTAL 1-21 MUNICIPALITIES. (a) This section applies only to a municipality 1-22 that borders on the Gulf of Mexico and has a population of more 1-23 than 250,000. 1-24 (b) A municipality to which this section applies shall 1-25 separately account for all revenue derived from the application of 1-26 the tax imposed by this chapter at a rate of more than seven 1-27 percent of the cost of a room. 1-28 (c) Subject to Subsection (e), revenue described by 1-29 Subsection (b) may be used only for: 1-30 (1) acquiring land for a municipally owned convention 1-31 center; 1-32 (2) constructing, improving, enlarging, equipping, 1-33 repairing, operating, and maintaining a municipally owned 1-34 convention center; and 1-35 (3) paying bonds used to finance activities described 1-36 by Subdivision (1) or (2). 1-37 (d) For the purpose of the allocation of revenue under 1-38 Section 351.103, revenue described by Subsection (b) is not 1-39 counted. 1-40 (e) Notwithstanding any other provision of this chapter, a 1-41 municipality to which this section applies may use all or any 1-42 portion of the revenue derived from the municipal hotel occupancy 1-43 tax from hotels previously subject to a county hotel occupancy tax 1-44 to clean and maintain public beaches in the municipality. 1-45 (f) In this section: 1-46 (1) "Clean and maintain" has the meaning assigned by 1-47 Section 61.063, Natural Resources Code. 1-48 (2) "Public beach" has the meaning assigned by Section 1-49 61.001, Natural Resources Code. 1-50 SECTION 3. If on or after the effective date of this Act a 1-51 municipality increases the rate of the tax authorized by Section 1-52 351.003(d), Tax Code, as added by this Act, the increased tax rate 1-53 does not apply to the tax imposed on the use or possession of a 1-54 room under a contract executed before the effective date of this 1-55 Act that provides for the payment of the tax at the rate in effect 1-56 when the contract was executed unless the contract is subject to 1-57 change or modification by reason of the tax rate increase. The tax 1-58 rate applicable to the use or possession of a room under the 1-59 contract is the rate in effect when the contract was executed, and 1-60 the law governing that rate is continued in effect for that 1-61 purpose. 1-62 SECTION 4. The importance of this legislation and the 1-63 crowded condition of the calendars in both houses create an 1-64 emergency and an imperative public necessity that the 2-1 constitutional rule requiring bills to be read on three several 2-2 days in each house be suspended, and this rule is hereby suspended, 2-3 and that this Act take effect and be in force from and after its 2-4 passage, and it is so enacted. 2-5 * * * * *