78R12754 SMJ-D


By:  Smith of Harris                                              H.B. No. 2718



A BILL TO BE ENTITLED

AN ACT

relating to the allocation and use of municipal hotel occupancy 
taxes in certain municipalities bordering bays.
	BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:                        
	SECTION 1.  Subchapter B, Chapter 351, Tax Code, is amended 
by adding Section 351.104 to read as follows:
	Sec. 351.104.  ALLOCATION OF REVENUE:  CERTAIN 
MUNICIPALITIES BORDERING BAYS.  (a)  This section applies only to a 
home-rule municipality that borders a bay, that has a population of 
less than 80,000, and that is not an eligible coastal municipality.
	(b)  In this section:                                                   
		(1)  "Adjacent public land" means land that:                           
			(A)  is owned by this state or a local 
governmental entity; and     
			(B)  is located adjacent to a bay that is bordered 
by a municipality to which this section applies.
		(2)  "Clean and maintain" means the collection and 
removal of litter and debris and the supervision and elimination of 
sanitary and safety conditions that would pose a threat to personal 
health or safety if not removed or otherwise corrected.
	(c)  Notwithstanding any other provision of this chapter, a 
municipality to which this section applies may use not more than 10 
percent of the revenue derived from the tax imposed under this 
chapter:
		(1)  for a purpose described by Section 351.105(a)(1) 
or (2);        
		(2)  to clean and maintain adjacent public land; or                    
		(3)  to mitigate coastal erosion on adjacent public 
land.            
	(d)  A municipality to which this section applies may not 
reduce the amount of revenue that it uses for a purpose described by 
Section 351.101(a)(3) to an amount that is less than the average 
amount of revenue used by the municipality for that purpose during 
the 36-month period that precedes the municipality's use of revenue 
under Subsection (c).
	SECTION 2.  This Act takes effect September 1, 2003.