1-1                                   AN ACT
 1-2     relating to the recording of expenditures of revenue from the
 1-3     county hotel occupancy tax.
 1-4           BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
 1-5           SECTION 1.  Subchapter B, Chapter 352, Tax Code, is amended
 1-6     by adding Section 352.109 to read as follows:
 1-7           Sec. 352.109.  RECORDS. (a)  A county shall maintain a record
 1-8     that accurately identifies the receipt and expenditure of all
 1-9     revenue derived from the tax imposed under this chapter.
1-10           (b)  A county or entity that spends revenue derived from the
1-11     tax imposed under this chapter shall, before making an expenditure,
1-12     specify in a list each scheduled activity or event that:
1-13                 (1)  is directly funded by the tax or is offered by an
1-14     entity that has its administrative costs funded wholly or partly by
1-15     the tax; and
1-16                 (2)  directly promotes tourism and hotel and convention
1-17     activity.
1-18           (c)  If the commissioners court of a county delegates to
1-19     another entity the management or supervision of an activity or
1-20     event funded by the tax imposed under this chapter, each entity
1-21     that is ultimately funded by the tax shall, before making an
1-22     expenditure, specify in a list each scheduled activity or event
1-23     that:
1-24                 (1)  is directly funded by the tax or is offered by an
 2-1     entity that has its administrative costs funded wholly or partly by
 2-2     the tax; and
 2-3                 (2)  directly promotes tourism and hotel and convention
 2-4     activity.
 2-5           (d)  Subsections (b) and (c) do not prevent the county or
 2-6     funded entity from subsequently adding an activity or event to the
 2-7     list required by those subsections if the activity or event
 2-8     directly promotes tourism and hotel and convention activity.
 2-9           (e)  This section does not prevent a county or funded entity
2-10     from setting aside tax revenue in a designated reserve fund for use
2-11     in supporting planned activities, future events, and facility
2-12     improvements that directly promote tourism and hotel and convention
2-13     activity.
2-14           (f)  For the purposes of this section, all expenditures for a
2-15     sports and community venue project and related infrastructure, as
2-16     those terms are defined by Section 334.001, Local Government Code,
2-17     are a single scheduled activity or event.
2-18           SECTION 2. (a)  This Act takes effect September 1, 2001.
2-19           (b)  Section 352.109, Tax Code, as added by this Act, applies
2-20     only to an expenditure made on or after the effective date of this
2-21     Act, without regard to whether the expenditure is from revenue
2-22     collected under Chapter 352, Tax Code, before, on, or after that
2-23     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.
         _______________________________     _______________________________
             President of the Senate              Speaker of the House
               I certify that H.B. No. 2756 was passed by the House on April
         27, 2001, by a non-record vote.
                                             _______________________________
                                                 Chief Clerk of the House
               I certify that H.B. No. 2756 was passed by the Senate on May
         22, 2001, by the following vote:  Yeas 30, Nays 0, 1 present, not
         voting.
                                             _______________________________
                                                 Secretary of the Senate
         APPROVED:  __________________________
                              Date
                    __________________________
                            Governor