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	Amend SB 636 (House committee printing) by adding the 
following appropriately numbered SECTIONS to the bill and 
renumbering subsequent SECTIONS of the bill accordingly:
	SECTION ____.  Subchapter C, Chapter 151, Tax Code, is 
amended by adding Section 151.0565 to read as follows:
	Sec. 151.0565.  TAXABLE ITEMS SOLD OR PROVIDED UNDER 
DESTINATION MANAGEMENT SERVICES CONTRACTS.  (a)  In this section:
		(1)  "Destination management services" means the 
following services when provided under a qualified destination 
management services contract:
			(A)  transportation management;                                       
			(B)  booking and managing entertainers;                               
			(C)  coordination of tours or recreational 
activities;              
			(D)  meeting, conference, or event registration;                      
			(E)  meeting, conference, or event staffing;                          
			(F)  event management; and                                            
			(G)  meal coordination.                                               
		(2)  "Qualified destination management company" means 
a business entity that:
			(A)  is incorporated or is a limited liability 
company;             
			(B)  receives at least 80 percent of the entity's 
annual total revenue from providing or arranging for the provision 
of destination management services;
			(C)  maintains a permanent nonresidential office 
from which the destination management services are provided or 
arranged;
			(D)  has at least three full-time employees;                          
			(E)  spends at least one percent of the entity's 
annual gross receipts to market the destinations with respect to 
which destination management services are provided;
			(F)  has at least 80 percent of the entity's 
clients described by Subdivision (3)(A) located outside this state;
			(G)  other than office equipment used in the 
conduct of the entity's business, does not own equipment used to 
directly provide destination management services, including motor 
coaches, limousines, sedans, dance floors, decorative props, 
lighting, podiums, sound or video equipment, or equipment for 
catered meals;
			(H)  is not doing business as a caterer;                              
			(I)  does not provide services for weddings;                          
			(J)  does not own a venue at which events or 
activities for which destination management services are provided 
occur; and
			(K)  is not a subsidiary of another entity that, 
and is not a member of an affiliated group, as that term is defined 
by Section 171.0001, another member of which:
				(i)  is doing business as, or owns or 
operates another entity doing business as, a caterer;  or
				(ii)  owns or operates a venue described by 
Paragraph (J).         
		(3)  "Qualified destination management services 
contract" means a contract under which at least three of the 
destination management services listed in Subdivision (1) are 
provided:
			(A)  in this state to a client that is not an 
individual and that:  
				(i)  is a corporation, partnership, limited 
liability company, trade association, or other business entity, 
other than a social club or fraternal organization;
				(ii)  has its principal place of business 
outside the county where the destination management services are to 
be provided;  and
				(iii)  agrees to pay the qualified 
destination management company for all destination management 
services provided to the client under the terms of the contract; and
			(B)  by a qualified destination management 
company that pays or accrues liability for the payment of taxes 
imposed by this chapter on purchases of taxable items that will be 
consumed or used by the company in performing the contract.
	(b)  A qualified destination management company is the 
consumer of taxable items sold or otherwise provided under a 
qualified destination management services contract, and the 
destination management services provided under the contract are not 
considered taxable services, as that term is defined by Section 
151.0101.
	SECTION ____.  (a)  Section 171.1011, Tax Code, is amended by 
adding Subsection (g-6) to read as follows:
	(g-6)  A taxable entity that is a qualified destination 
management company as defined by Section 151.0565 shall exclude 
from its total revenue, to the extent included under Subsection 
(c)(1)(A), (c)(2)(A), or (c)(3), payments made to other persons to 
provide services, labor, or materials in connection with the 
provision of destination management services as defined by Section 
151.0565.
	(b)  This section applies only to a report originally due on 
or after the effective date of this section.
	(c)  Notwithstanding any other provision of this Act, this 
section takes effect January 1, 2010.