H.B. No. 1585
 
 
 
 
AN ACT
  relating to the use of hotel occupancy tax revenue in certain
  municipalities.
         BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
         SECTION 1.  Section 351.101, Tax Code, is amended by adding
  Subsection (j) to read as follows:
         (j)  In addition to the purposes provided by Subsection (a),
  a municipality that has a population of not more than 5,000 and at
  least part of which is located less than one-eighth of one mile from
  a space center operated by an agency of the federal government may
  use revenue from the municipal hotel occupancy tax for 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 351.1071 to read as follows:
         Sec. 351.1071.  ALLOCATION OF REVENUE: CERTAIN
  MUNICIPALITIES. (a)  This section applies only to a municipality:
               (1)  that has a population of not more than 5,000; and
               (2)  at least part of which is located less than
  one-eighth of one mile from a space center operated by an agency of
  the federal government.
         (b)  In this section, "authorized facility" means a civic
  center, marina, meeting room, hotel, parking facility, or visitor
  center, including signage related to the facility, that:
               (1)  is owned by the municipality or a nonprofit
  corporation acting on behalf of the municipality;
               (2)  is located not more than 1,000 feet from a hotel
  property in the municipality; and
               (3)  substantially enhances hotel activity and
  encourages tourism within the municipality.
         (c)  Subject to Subsection (d) and notwithstanding any other
  provision of this chapter, a municipality to which this section
  applies may use the amount of revenue derived from the application
  of the tax under this chapter at a rate of three percent of the price
  paid for a room in a hotel to:
               (1)  establish, acquire, purchase, construct, improve,
  maintain, or operate an authorized facility; and
               (2)  pay bonds issued for a purpose described by
  Subdivision (1).
         (d)  A municipality may not use municipal hotel occupancy tax
  revenue on an authorized facility in a total amount that would
  exceed the amount of hotel revenue attributable to events at that
  facility for the 15-year period following the completion of
  construction.
         (e)  A municipality that uses municipal hotel occupancy tax
  revenue for a purpose authorized by this section shall publish
  annually for the 15-year period following the completion of
  construction at the authorized facility for which the revenue was
  used a report on the Internet website of the municipality that
  lists:
               (1)  for the preceding year, the events held at the
  authorized facility with respect to which the tax revenue was used
  and the number of hotel room nights attributable to those events;
  and
               (2)  the amount of hotel revenue and municipal hotel
  occupancy tax revenue attributable to events held at the authorized
  facility in that year.
         (f)  If a municipality uses municipal hotel occupancy tax
  revenue to establish, acquire, purchase, construct, or improve an
  authorized facility, the municipality shall, on the 5th, 10th, and
  15th anniversaries of the completion of construction at the
  facility:
               (1)  calculate:
                     (A)  the sum of:
                           (i)  municipal hotel occupancy tax revenue
  used to maintain or operate the facility in the past five years;
                           (ii)  one-third of the amount of municipal
  hotel occupancy tax revenue used to establish, acquire, purchase,
  construct, or improve the authorized facility; and
                           (iii)  any credits carried over from a
  previous five-year period, as authorized by Subsection (g); and
                     (B)  hotel revenue directly attributable to
  events held at the authorized facility in the past five years; and
               (2)  if the amount calculated under Subdivision (1)(A)
  exceeds the amount calculated under Subdivision (1)(B), reimburse
  the municipality's hotel occupancy tax revenue fund from the
  municipality's general fund in the amount of the difference.
         (g)  If, for a given five-year period, the amount calculated
  under Subsection (f)(1)(B) exceeds the amount calculated under
  Subsection (f)(1)(A), the municipality may carry forward the
  difference to be used as a credit in a subsequent five-year period.
         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, 2015.
 
 
  ______________________________ ______________________________
     President of the Senate Speaker of the House     
 
 
         I certify that H.B. No. 1585 was passed by the House on May
  15, 2015, by the following vote:  Yeas 118, Nays 21, 2 present, not
  voting; that the House refused to concur in Senate amendments to
  H.B. No. 1585 on May 28, 2015, and requested the appointment of a
  conference committee to consider the differences between the two
  houses; and that the House adopted the conference committee report
  on H.B. No. 1585 on May 31, 2015, by the following vote:  Yeas 99,
  Nays 44, 2 present, not voting.
 
  ______________________________
  Chief Clerk of the House   
 
         I certify that H.B. No. 1585 was passed by the Senate, with
  amendments, on May 26, 2015, by the following vote:  Yeas 29, Nays
  2; at the request of the House, the Senate appointed a conference
  committee to consider the differences between the two houses; and
  that the Senate adopted the conference committee report on H.B. No.
  1585 on May 30, 2015, by the following vote:  Yeas 28, Nays 3.
 
  ______________________________
  Secretary of the Senate   
  APPROVED: __________________
                  Date       
   
           __________________
                Governor