78R8997 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 and estuaries.
	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 AND ESTUARIES.  (a)  This section 
applies only to a home-rule municipality that borders an estuary or 
bay in this state and that has a population of less than 80,000.
	(b)  In this section:                                                   
		(1)  "Clean and maintain" has the meaning assigned by 
Section 61.063, Natural Resources Code.
		(2)  "Public beach" has the meaning assigned by Section 
61.001, Natural Resources Code.
	(c)  A municipality to which this section applies may use not 
more than one 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 a public beach; or                          
		(3)  to mitigate coastal erosion on a public beach.                    
	SECTION 2.  This Act takes effect September 1, 2003.