By:  Sibley                                           S.B. No. 1603
         99S0623/1                           
                                A BILL TO BE ENTITLED
                                       AN ACT
 1-1     relating to the expenditure of revenue and interest derived from
 1-2     the municipal hotel occupancy tax.
 1-3           BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
 1-4           SECTION 1.  Section 351.001, Tax Code, is amended by adding
 1-5     Subdivision (10) to read as follows:
 1-6                 (10)  "Revenue" includes any interest derived from the
 1-7     revenue.
 1-8           SECTION 2.  Subchapter B, Chapter 351, Tax Code, is amended
 1-9     by adding Sections 351.107 and 351.108 to read as follows:
1-10           Sec. 351.107.  INJUNCTION AND RELIEF.  On a finding by a
1-11     district court that revenue from the tax imposed under this chapter
1-12     has been spent or is going to be spent by the municipality, by a
1-13     person with whom the municipality contracts, or by any other person
1-14     for a purpose not authorized by this chapter, the court may:
1-15                 (1)  grant any injunctive relief necessary to prevent
1-16     the revenue from being spent for the unauthorized purpose; and
1-17                 (2)  order the full amount of any revenue spent for an
1-18     unauthorized purpose to be paid to the account or fund in which the
1-19     municipality's hotel occupancy tax is deposited and expended only
1-20     for purposes authorized by this chapter.
1-21           Sec. 351.108.  SEPARATE RECORDS.  A municipality shall
1-22     maintain a record that identifies, as separate items:
1-23                 (1)  the amount of revenue derived from the tax imposed
1-24     under this chapter; and
 2-1                 (2)  the amount and purpose of each expenditure from
 2-2     that revenue.
 2-3           SECTION 3.  (a)  This Act takes effect September 1, 1999.
 2-4           (b)  Sections 351.107 and 351.108, Tax Code, as added by this
 2-5     Act, apply only to an expenditure made on or after the effective
 2-6     date of this Act, without regard to whether the expenditure is from
 2-7     revenue collected under Chapter 351, Tax Code, before, on, or after
 2-8     that date.
 2-9           (c)  An expenditure made before the effective date of this
2-10     Act is governed by the law applicable to the action immediately
2-11     before the effective date of this Act, and that law is continued in
2-12     effect for that purpose.
2-13           SECTION 4.  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.