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.