By McCall                                             H.B. No. 1022
                                A BILL TO BE ENTITLED
 1-1                                   AN ACT
 1-2     relating to the recording of expenditures of revenue from the
 1-3     municipal hotel occupancy tax.
 1-4           BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
 1-5           SECTION 1. Section 351.107, Tax Code, as added by Chapters
 1-6     495 and 1467, Acts of the 76th Legislature, Regular Session, 1999,
 1-7     is renumbered as Section 351.108, Tax Code, and amended to read as
 1-8     follows:
 1-9           Sec. 351.108 [351.107].  RECORDS. (a)  A municipality shall
1-10     maintain a record that accurately identifies the receipt and
1-11     expenditure of all revenue derived from the tax imposed under this
1-12     chapter.
1-13           (b)  A municipality or entity that spends revenue derived
1-14     from the tax imposed under this chapter shall, before making an
1-15     expenditure, specify in a list each scheduled activity or event
1-16     that:
1-17                 (1)  is directly funded by the tax or is offered by an
1-18     entity that has its administrative costs funded in whole or in part
1-19     by the tax; and
1-20                 (2)  directly promotes tourism and hotel and convention
1-21     activity.
1-22           (c)  If a municipality delegates to another entity the
1-23     management or supervision of an activity or event funded by the tax
1-24     imposed under this chapter, each entity that is ultimately funded
 2-1     by the tax shall, before making an expenditure, specify in a list
 2-2     each scheduled activity or event that:
 2-3                 (1)  is directly funded by the tax or is offered by an
 2-4     entity that has its administrative costs funded in whole or in part
 2-5     by the tax; and
 2-6                 (2)  directly promotes tourism and hotel and convention
 2-7     activity.
 2-8           (d)  Subsections (a) and (b) do not prevent a municipality or
 2-9     funded entity from subsequently adding an activity or event to the
2-10     list required by those subsections if the activity or event
2-11     directly promotes tourism and hotel and convention activity.
2-12           (e)  This section does not prevent a municipality or entity
2-13     receiving revenue from the tax imposed under this chapter from
2-14     setting aside tax revenue in a designated reserve fund for use in
2-15     supporting planned activities, future events, and facility
2-16     improvements that directly promote tourism and hotel and convention
2-17     activity.
2-18           SECTION 2. (a)  This Act takes effect September 1, 2001.
2-19           (b)  Section 351.108, Tax Code, as amended by this Act,
2-20     applies only to an expenditure made on or after the effective date
2-21     of this Act, without regard to whether the expenditure is from
2-22     revenue collected under Chapter 351, Tax Code, before, on, or after
2-23     that date.
2-24           (c)  An expenditure made before the effective date of this
2-25     Act is governed by the law applicable to the action immediately
2-26     before the effective date of this Act, and that law is continued in
2-27     effect for that purpose.