By Shields                                            H.B. No. 1032
         77R1760 CBH-D                           
                                A BILL TO BE ENTITLED
 1-1                                   AN ACT
 1-2     relating to the purposes for which certain municipalities may use
 1-3     revenue from the municipal hotel occupancy tax.
 1-4           BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
 1-5           SECTION 1.  Subchapter B, Chapter 351, Tax Code, is amended
 1-6     by adding Sections 351.1012 and 351.1066 to read as follows:
 1-7           Sec. 351.1012.  USE OF REVENUE:  CERTAIN SMALL
 1-8     MUNICIPALITIES. In addition to the purposes provided by Section
 1-9     351.101(a), a municipality with a population of less than 5,000
1-10     that is partially surrounded by a municipality with a population of
1-11     more than 900,000 may use revenue from the hotel occupancy tax for
1-12     any general revenue purpose or general governmental operation of
1-13     the municipality.
1-14           Sec. 351.1066.  ALLOCATION OF REVENUE:  CERTAIN SMALL
1-15     MUNICIPALITIES. The governing body of a municipality with a
1-16     population of less than 5,000 that is partially surrounded by a
1-17     municipality with a population of more than 900,000 may allocate
1-18     hotel occupancy tax revenue among the permitted uses as determined
1-19     by ordinance.
1-20           SECTION 2.  This Act takes effect immediately if it receives
1-21     a vote of two-thirds of all the members elected to each house, as
1-22     provided by Section 39, Article III, Texas Constitution.  If this
1-23     Act does not receive the vote necessary for immediate effect, this
1-24     Act takes effect September 1, 2001.