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.