By:  Krusee (Senate Sponsor - Armbrister)                         H.B. No. 2961
	(In the Senate - Received from the House May 7, 2003; 
May 9, 2003, read first time and referred to Committee on 
Intergovernmental Relations; May 23, 2003, reported favorably by 
the following vote:  Yeas 4, Nays 0; May 23, 2003, sent to printer.)


A BILL TO BE ENTITLED

AN ACT


relating to the use of municipal hotel occupancy taxes by certain 
municipalities.
	BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:                        
	SECTION 1.  Section 351.101(a), Tax Code, is amended to read 
as follows:     
	(a)  Revenue from the municipal hotel occupancy tax may be 
used only to promote tourism and the convention and hotel industry, 
and that use is limited to the following:
		(1)  the acquisition of sites for and the construction, 
improvement, enlarging, equipping, repairing, operation, and 
maintenance of convention center facilities or visitor information 
centers, or both;
		(2)  the furnishing of facilities, personnel, and 
materials for the registration of convention delegates or 
registrants;
		(3)  advertising and conducting solicitations and 
promotional programs to attract tourists and convention delegates 
or registrants to the municipality or its vicinity;
		(4)  the encouragement, promotion, improvement, and 
application of the arts, including instrumental and vocal music, 
dance, drama, folk art, creative writing, architecture, design and 
allied fields, painting, sculpture, photography, graphic and craft 
arts, motion pictures, radio, television, tape and sound recording, 
and other arts related to the presentation, performance, execution, 
and exhibition of these major art forms;
		(5)  historical restoration and preservation projects 
or activities or advertising and conducting solicitations and 
promotional programs to encourage tourists and convention 
delegates to visit preserved historic sites or museums:
			(A)  at or in the immediate vicinity of convention 
center facilities or visitor information centers;  or
			(B)  located elsewhere in the municipality or its 
vicinity that would be frequented by tourists and convention 
delegates;  and
		(6)  for a municipality located in a county with a 
population of 250,000 [65,000] or less, expenses, including 
promotion expenses, directly related to a sporting event in which 
the majority of participants are tourists who substantially 
increase economic activity at hotels and motels within the 
municipality or its vicinity.
	SECTION 2.  Subchapter B, Chapter 351, Tax Code, is amended 
by adding Section 351.1035 to read as follows:
	Sec. 351.1035.  ALLOCATION OF REVENUE: CERTAIN 
MUNICIPALITIES IN BORDER COUNTIES.  (a)  This section applies only 
to a municipality that is the largest municipality in a county 
described by Section 352.002(a)(14).
	(b)  At least 50 percent of the hotel occupancy tax revenue 
collected by a municipality described by Subsection (a) must be 
allocated for the purposes provided by Section 351.101(a)(3).
	(c)  Not more than 15 percent of the hotel occupancy tax 
revenue collected by a municipality described by Subsection (a) may 
be used for the purposes provided by Section 351.101(a)(4).
	(d)  Not more than 15 percent of the hotel occupancy tax 
revenue collected by a municipality described by Subsection (a) may 
be used for the purposes provided by Section 351.101(a)(5).
	SECTION 3.  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.



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