H.B. No. 2497
 
 
 
 
AN ACT
  relating to the use of municipal hotel occupancy tax revenue by
  certain municipalities.
         BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
         SECTION 1.  Subchapter B, Chapter 351, Tax Code, is amended
  by adding Section 351.10713 to read as follows:
         Sec. 351.10713.  ALLOCATION OF REVENUE FOR CONSTRUCTION,
  EXPANSION, AND OPERATION OF RECREATIONAL OR SPORTS FACILITIES AND
  FIELDS BY CERTAIN MUNICIPALITIES.  (a)  This section applies only
  to a municipality that is the county seat of a county:
               (1)  that borders the Gulf of Mexico; and
               (2)  through which the Colorado River flows.
         (b)  Notwithstanding any other provision of this chapter and
  subject to Subsections (c), (d), and (e), a municipality to which
  this section applies may, for the purpose of promoting tourism and
  the convention and hotel industry, use revenue derived from the
  municipal hotel occupancy tax to:
               (1)  construct and expand recreational or sports
  facilities and fields owned by the municipality or another
  governmental entity; and
               (2)  operate recreational or sports facilities and
  fields owned by the municipality or another governmental entity.
         (c)  A municipality to which this section applies that uses
  municipal hotel occupancy tax revenue for a purpose described by
  Subsection (b)(1):
               (1)  shall determine the amount of municipal hotel
  occupancy tax revenue generated for the municipality by hotel
  activity attributable to the events held at the recreational or
  sports facilities and fields for five years after the date the
  construction or expansion of the facilities and fields is complete;
               (2)  may not spend municipal hotel occupancy tax
  revenue for a purpose described by Subsection (b)(1) in a total
  amount that exceeds the amount of area hotel revenue attributable
  to the construction or expansion of the facilities and fields; and
               (3)  shall reimburse from the municipality's general
  fund any expenditure in excess of the amount of area hotel revenue
  attributable to the construction or expansion of the facilities and
  fields to the municipality's hotel occupancy tax revenue fund.
         (d)  A municipality to which this section applies may not use
  municipal hotel occupancy tax revenue for a purpose described by
  Subsection (b)(2) in an amount each year that exceeds the amount of
  area hotel revenue in that year attributable to events held at the
  recreational or sports facilities and fields.
         (e)  If a municipality to which this section applies uses
  revenue derived from the municipal hotel occupancy tax for a
  purpose described by Subsection (b), the municipality may not
  reduce the percentage of revenue from that tax allocated for a
  purpose described by Section 351.101(a)(3) to a percentage that is
  less than the average percentage of that revenue allocated by the
  municipality for that purpose during the 36-month period preceding
  the date the municipality begins using the revenue for a purpose
  described by Subsection (b).
         SECTION 2.  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, 2023.
 
 
  ______________________________ ______________________________
     President of the Senate Speaker of the House     
 
 
         I certify that H.B. No. 2497 was passed by the House on April
  28, 2023, by the following vote:  Yeas 111, Nays 33, 2 present, not
  voting.
 
  ______________________________
  Chief Clerk of the House   
 
 
         I certify that H.B. No. 2497 was passed by the Senate on May
  17, 2023, by the following vote:  Yeas 25, Nays 6.
 
  ______________________________
  Secretary of the Senate    
  APPROVED:  _____________________
                     Date          
   
            _____________________
                   Governor