1-1     By:  McCall (Senate Sponsor - Sibley)                 H.B. No. 1022
 1-2           (In the Senate - Received from the House April 9, 2001;
 1-3     April 9, 2001, read first time and referred to Committee on
 1-4     Intergovernmental Relations; May 11, 2001, reported adversely, with
 1-5     favorable Committee Substitute by the following vote:  Yeas 6, Nays
 1-6     0; May 11, 2001, sent to printer.)
 1-7     COMMITTEE SUBSTITUTE FOR H.B. No. 1022                 By:  Lindsay
 1-8                            A BILL TO BE ENTITLED
 1-9                                   AN ACT
1-10     relating to the recording of expenditures of revenue from the
1-11     municipal hotel occupancy tax.
1-12           BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
1-13           SECTION 1.  Section 351.107, Tax Code, as added by Chapters
1-14     495 and 1467, Acts of the 76th Legislature, Regular Session, 1999,
1-15     is renumbered as Section 351.108, Tax Code, and amended to read as
1-16     follows:
1-17           Sec. 351.108 [351.107]. RECORDS. (a)  A municipality shall
1-18     maintain a record that accurately identifies the receipt and
1-19     expenditure of all revenue derived from the tax imposed under this
1-20     chapter.
1-21           (b)  A municipality or entity that spends revenue derived
1-22     from the tax imposed under this chapter shall, before making an
1-23     expenditure, specify in a list each scheduled activity, program, or
1-24     event that:
1-25                 (1)  is directly funded by the tax or has its
1-26     administrative costs funded in whole or in part by the tax; and
1-27                 (2)  is directly enhancing and promoting tourism and
1-28     the convention and hotel industry.
1-29           (c)  If a municipality delegates to another entity the
1-30     management or supervision of an activity or event funded by the tax
1-31     imposed under this chapter, each entity that is ultimately funded
1-32     by the tax shall, before making an expenditure, specify in a list
1-33     each scheduled activity, program, or event that:
1-34                 (1)  is directly funded by the tax or has its
1-35     administrative costs funded in whole or in part by the tax; and
1-36                 (2)  is directly enhancing and promoting tourism and
1-37     the convention and hotel industry.
1-38           (d)  The list required in Subsections (b) and (c) should be
1-39     provided to the office of the city secretary or to the city
1-40     secretary's designee.
1-41           (e)  Subsections (b) and (c) do not prevent a municipality or
1-42     funded entity from subsequently adding an activity, program, or
1-43     event to the list required by those subsections if the activity,
1-44     program, or event is directly enhancing and promoting tourism and
1-45     the convention and hotel industry.
1-46           (f)  This section does not prevent a municipality or entity
1-47     receiving revenue from the tax imposed under this chapter from
1-48     setting aside tax revenue in a designated reserve fund for use in
1-49     supporting planned activities, future events, and facility
1-50     improvements that are directly enhancing and promoting tourism and
1-51     the convention and hotel industry.
1-52           (g)  Subsections (b) and (c) do not apply if the funded
1-53     entity already provides written information to the municipality
1-54     that indicates which scheduled activities, programs, or events
1-55     offered by the entity are directly enhancing and promoting tourism
1-56     and the convention and hotel industry.
1-57           (h)  Subsections (b) and (c) do not affect the level of local
1-58     hotel occupancy tax funding that was approved at an election held
1-59     pursuant to the initiative and referendum provisions of a city
1-60     charter, and do not prohibit the use of local hotel occupancy tax
1-61     for the encouragement, promotion, improvement, and application of
1-62     the arts or for historical restoration and preservation as
1-63     otherwise provided by this chapter.
1-64           SECTION 2.  (a)  This Act takes effect September 1, 2001.
 2-1           (b)  Section 351.108, Tax Code, as amended by this Act,
 2-2     applies only to an expenditure or to a contract for hotel occupancy
 2-3     funding made on or after the effective date of this Act, without
 2-4     regard to whether the expenditure or contract for hotel occupancy
 2-5     tax funding from revenue collected under Chapter 351, Tax Code,
 2-6     before, on, or after that date.
 2-7           (c)  An expenditure or a contract for hotel occupancy tax
 2-8     funding made before the effective date of this Act is governed by
 2-9     the law applicable to the action immediately before the effective
2-10     date of this Act, and that law is continued in effect for that
2-11     purpose.
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