By Seaman                                              H.B. No. 297
         77R670 CBH-D                           
                                A BILL TO BE ENTITLED
 1-1                                   AN ACT
 1-2     relating to the allocation of state hotel occupancy tax revenue to
 1-3     certain municipalities.
 1-5           SECTION 1.  Section 156.2512, Tax Code, is amended to read as
 1-6     follows:
 1-7           Sec. 156.2512.  ALLOCATION OF REVENUE TO CERTAIN
 1-8     MUNICIPALITIES. (a)  Not later than the last day of the month
 1-9     following a calendar quarter, the comptroller shall:
1-10                 (1)  compute the amount of revenue derived from the
1-11     collection of taxes imposed under this chapter at a rate of one
1-12     percent and received from hotels located in an eligible small
1-13     [general-law] coastal municipality; and
1-14                 (2)  issue to the eligible small [general-law] coastal
1-15     municipality a warrant drawn on the general revenue fund in the
1-16     amount computed under Subdivision (1).
1-17           (b)  An eligible small [general-law] coastal municipality may
1-18     use money received under this section only to clean and maintain
1-19     public beaches in that municipality.
1-20           (c)  In this section:
1-21                 (1)  "Eligible small [general-law] coastal
1-22     municipality" means a general-law or home-rule municipality that:
1-23                       (A)  [that] has a population of less than 5,000;
1-24                       (B)  [that] borders on the Gulf of Mexico; and
 2-1                       (C)  is located on a barrier island or has [the]
 2-2     boundaries that [of which] are within 30 miles of the United
 2-3     Mexican States.
 2-4                 (2)  "Clean and maintain" has the meaning assigned by
 2-5     Section 61.063, Natural Resources Code.
 2-6           SECTION 2.  This Act takes effect September 1, 2001.