By Sibley                                              S.B. No. 528
         77R3091 DAK-F                           
                                A BILL TO BE ENTITLED
 1-1                                   AN ACT
 1-2     relating to the recording of expenditures of revenue from the
 1-3     municipal hotel occupancy tax.
 1-4           BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
 1-5           SECTION 1. Section 351.107, Tax Code, as added by Chapters
 1-6     495 and 1467, Acts of the 76th Legislature, Regular Session, 1999,
 1-7     is renumbered as Section 351.108, Tax Code, and amended to read as
 1-8     follows:
 1-9           Sec. 351.108.  RECORDS. (a)  A municipality shall maintain a
1-10     record that accurately identifies the receipt and expenditure of
1-11     all revenue derived from the tax imposed under this chapter.
1-12           (b)  A municipality or entity that spends revenue derived
1-13     from the tax imposed under this chapter shall, before making an
1-14     expenditure, specify in a list each scheduled activity or event
1-15     that:
1-16                 (1)  is funded by the tax; and
1-17                 (2)  directly promotes tourism and hotel and convention
1-18     activity.
1-19           (c)  If a municipality delegates to another entity the
1-20     management or supervision of an activity or event funded by the tax
1-21     imposed under this chapter, each entity that is ultimately funded
1-22     by the tax shall, before making an expenditure, specify in a list
1-23     each scheduled activity or event that:
1-24                 (1)  is funded by the tax; and
 2-1                 (2)  directly promotes tourism and hotel and convention
 2-2     activity.
 2-3           (d)  Subsections (a) and (b) do not prevent a municipality or
 2-4     funded entity from subsequently adding an activity or event to the
 2-5     list required by those subsections if the activity or event
 2-6     directly promotes tourism and hotel and convention activity.
 2-7           SECTION 2. (a)  This Act takes effect September 1, 2001.
 2-8           (b)  Section 351.108, Tax Code, as amended by this Act,
 2-9     applies only to an expenditure made on or after the effective date
2-10     of this Act, without regard to whether the expenditure is from
2-11     revenue collected under Chapter 351, Tax Code, before, on, or after
2-12     that date.
2-13           (c)  An expenditure made before the effective date of this
2-14     Act is governed by the law applicable to the action immediately
2-15     before the effective date of this Act, and that law is continued in
2-16     effect for that purpose.