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.
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