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.
2-12 * * * * *