1-1     By:  Ritter (Senate Sponsor - Bernsen)                H.B. No. 2756
 1-2           (In the Senate - Received from the House April 30, 2001;
 1-3     May 1, 2001, read first time and referred to Committee on
 1-4     Intergovernmental Relations; May 10, 2001, reported favorably by
 1-5     the following vote:  Yeas 5, Nays 0; May 10, 2001, sent to
 1-6     printer.)
 1-7                            A BILL TO BE ENTITLED
 1-8                                   AN ACT
 1-9     relating to the recording of expenditures of revenue from the
1-10     county hotel occupancy tax.
1-11           BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
1-12           SECTION 1.  Subchapter B, Chapter 352, Tax Code, is amended
1-13     by adding Section 352.109 to read as follows:
1-14           Sec. 352.109.  RECORDS. (a)  A county shall maintain a record
1-15     that accurately identifies the receipt and expenditure of all
1-16     revenue derived from the tax imposed under this chapter.
1-17           (b)  A county or entity that spends revenue derived from the
1-18     tax imposed under this chapter shall, before making an expenditure,
1-19     specify in a list each scheduled activity or event that:
1-20                 (1)  is directly funded by the tax or is offered by an
1-21     entity that has its administrative costs funded wholly or partly by
1-22     the tax; and
1-23                 (2)  directly promotes tourism and hotel and convention
1-24     activity.
1-25           (c)  If the commissioners court of a county delegates to
1-26     another entity the management or supervision of an activity or
1-27     event funded by the tax imposed under this chapter, each entity
1-28     that is ultimately funded by the tax shall, before making an
1-29     expenditure, specify in a list each scheduled activity or event
1-30     that:
1-31                 (1)  is directly funded by the tax or is offered by an
1-32     entity that has its administrative costs funded wholly or partly by
1-33     the tax; and
1-34                 (2)  directly promotes tourism and hotel and convention
1-35     activity.
1-36           (d)  Subsections (b) and (c) do not prevent the county or
1-37     funded entity from subsequently adding an activity or event to the
1-38     list required by those subsections if the activity or event
1-39     directly promotes tourism and hotel and convention activity.
1-40           (e)  This section does not prevent a county or funded entity
1-41     from setting aside tax revenue in a designated reserve fund for use
1-42     in supporting planned activities, future events, and facility
1-43     improvements that directly promote tourism and hotel and convention
1-44     activity.
1-45           (f)  For the purposes of this section, all expenditures for a
1-46     sports and community venue project and related infrastructure, as
1-47     those terms are defined by Section 334.001, Local Government Code,
1-48     are a single scheduled activity or event.
1-49           SECTION 2. (a)  This Act takes effect September 1, 2001.
1-50           (b)  Section 352.109, Tax Code, as added by this Act, applies
1-51     only to an expenditure made on or after the effective date of this
1-52     Act, without regard to whether the expenditure is from revenue
1-53     collected under Chapter 352, Tax Code, before, on, or after that
1-54     date.
1-55           (c)  An expenditure made before the effective date of this
1-56     Act is governed by the law applicable to the action immediately
1-57     before the effective date of this Act, and that law is continued in
1-58     effect for that purpose.
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