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, program, or
1-16 event that:
1-17 (1) is directly funded by the tax or has its
1-18 administrative costs funded in whole or in part by the tax; and
1-19 (2) is directly enhancing and promoting tourism and
1-20 the convention and hotel industry.
1-21 (c) If a municipality delegates to another entity the
1-22 management or supervision of an activity or event funded by the tax
1-23 imposed under this chapter, each entity that is ultimately funded
1-24 by the tax shall, before making an expenditure, specify in a list
2-1 each scheduled activity, program, or event that:
2-2 (1) is directly funded by the tax or has its
2-3 administrative costs funded in whole or in part by the tax; and
2-4 (2) is directly enhancing and promoting tourism and
2-5 the convention and hotel industry.
2-6 (d) The list required in Subsections (b) and (c) should be
2-7 provided to the office of the city secretary or to the city
2-8 secretary's designee.
2-9 (e) Subsections (b) and (c) do not prevent a municipality or
2-10 funded entity from subsequently adding an activity, program, or
2-11 event to the list required by those subsections if the activity,
2-12 program, or event is directly enhancing and promoting tourism and
2-13 the convention and hotel industry.
2-14 (f) This section does not prevent a municipality or entity
2-15 receiving revenue from the tax imposed under this chapter from
2-16 setting aside tax revenue in a designated reserve fund for use in
2-17 supporting planned activities, future events, and facility
2-18 improvements that are directly enhancing and promoting tourism and
2-19 the convention and hotel industry.
2-20 (g) Subsections (b) and (c) do not apply if the funded
2-21 entity already provides written information to the municipality
2-22 that indicates which scheduled activities, programs, or events
2-23 offered by the entity are directly enhancing and promoting tourism
2-24 and the convention and hotel industry.
2-25 (h) Subsections (b) and (c) do not affect the level of local
2-26 hotel occupancy tax funding that was approved at an election held
2-27 pursuant to the initiative and referendum provisions of a city
3-1 charter, and do not prohibit the use of local hotel occupancy tax
3-2 for the encouragement, promotion, improvement, and application of
3-3 the arts or for historical restoration and preservation as
3-4 otherwise provided by this chapter.
3-5 SECTION 2. (a) This Act takes effect September 1, 2001.
3-6 (b) Section 351.108, Tax Code, as amended by this Act,
3-7 applies only to an expenditure or to a contract for hotel occupancy
3-8 funding made on or after the effective date of this Act, without
3-9 regard to whether the expenditure or contract for hotel occupancy
3-10 tax funding is from revenue collected under Chapter 351, Tax Code,
3-11 before, on, or after that date.
3-12 (c) An expenditure or a contract for hotel occupancy tax
3-13 funding made before the effective date of this Act is governed by
3-14 the law applicable to the action immediately before the effective
3-15 date of this Act, and that law is continued in effect for that
3-16 purpose.
_______________________________ _______________________________
President of the Senate Speaker of the House
I certify that H.B. No. 1022 was passed by the House on April
5, 2001, by a non-record vote; and that the House concurred in
Senate amendments to H.B. No. 1022 on May 24, 2001, by a non-record
vote.
_______________________________
Chief Clerk of the House
I certify that H.B. No. 1022 was passed by the Senate, with
amendments, on May 22, 2001, by the following vote: Yeas 30, Nays
0, 1 present, not voting.
_______________________________
Secretary of the Senate
APPROVED: __________________________
Date
__________________________
Governor