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78R6222 CBH-D


By:  Brown of Kaufman                                             H.B. No. 1292



A BILL TO BE ENTITLED

AN ACT

relating to oversight of persons to whom a municipality delegates  
management and supervision of programs funded by municipal hotel 
occupancy taxes.
	BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:                        
	SECTION 1.  Section 351.101(c), Tax Code, is amended to read 
as follows:     
	(c)  The governing body of a municipality by contract may 
delegate to one or more persons [a person], including another 
governmental entity or a private organization, the management or 
supervision of programs and activities funded with revenue from the 
tax authorized by this chapter.  The governing body in writing shall 
approve in advance the annual budget of each [the] person to which 
it delegates those functions and shall require that [the] person to 
make periodic reports to the governing body at least quarterly 
listing the expenditures made by that [the] person with revenue 
from the tax authorized by this chapter.  Each [The] person must 
maintain revenue provided from the tax authorized by this chapter 
in a separate account established for that purpose and may not 
commingle that revenue with any other money.  The municipality may 
not delegate to any person the management or supervision of its 
convention and visitors programs and activities funded with revenue 
from the tax authorized by this chapter other than by contract as 
provided by this subsection.  The approval by the governing body of 
the municipality of the annual budget of a [the] person to whom the 
governing body delegates those functions creates a fiduciary duty 
in the person with respect to the revenue provided by the tax 
authorized by this chapter.
	SECTION 2.  (a)  This Act takes effect immediately if it 
receives a vote of two-thirds of all the members elected to each 
house, as provided by Section 39, Article III, Texas Constitution.  
If this Act does not receive the vote necessary for immediate 
effect, this Act takes effect September 1, 2003.
	(b)  This Act applies only to a contract entered into on or 
after the effective date of this Act.  A contract entered into 
before the effective date of this Act is governed by the law in 
effect on the date the contract was entered into, and that law is 
continued in effect for that purpose.