88R21142 SRA-F
 
  By: Isaac H.B. No. 4660
 
  Substitute the following for H.B. No. 4660:
 
  By:  Noble C.S.H.B. No. 4660
 
 
 
A BILL TO BE ENTITLED
 
AN ACT
  relating to the use of municipal hotel occupancy tax revenue in
  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 351.10693 to read as follows:
         Sec. 351.10693.  ALLOCATION OF REVENUE: CERTAIN
  MUNICIPALITIES.  (a)  This section applies only to a municipality:
               (1)  with a population of less than 3,000;
               (2)  through which the Blanco River flows; and
               (3)  that is located in a county that:
                     (A)  is adjacent to the county in which the State
  Capitol is located; and
                     (B)  has a population of at least 250,000.
         (b)  Notwithstanding any other provision of this chapter, a
  municipality to which this section applies may use revenue from the
  municipal hotel occupancy tax for the promotion and preservation of
  dark skies through construction and maintenance of infrastructure
  and the purchase and installation of hardware that reduces light
  pollution and sky glow.
         (c)  Notwithstanding any other provision of this chapter, a
  municipality to which this section applies may use revenue from the
  municipal hotel occupancy tax for promotional and event expenses
  for an ecological tourism event, including an event for which the
  primary attraction is traveling to an area of natural or ecological
  interest for the purpose of observing and learning about wildlife
  and the area's natural environment, if:
               (1)  a majority of the event's participants are
  tourists; and
               (2)  the event substantially increases economic
  activity at hotels and motels within or in the vicinity of the
  municipality.
         (d)  A municipality that uses revenue from the municipal
  hotel occupancy tax for a purpose described by Subsection (b) or
  (c):
               (1)  shall determine the amount of area hotel revenue
  attributable to events and activities related to those purposes for
  five years after the date the municipality first uses hotel
  occupancy tax revenue for a purpose described by Subsection (b) or
  (c); and
               (2)  may not spend municipal hotel occupancy tax
  revenue for the purposes described by Subsections (b) and (c) in a
  total amount that exceeds the amount determined under Subdivision
  (1).
         (e)  A municipality may not spend more than 25 percent of the
  municipality's annual hotel occupancy tax revenue for the purposes
  described by Subsections (b) and (c).
         (f)  A municipality to which this section applies may not
  reduce the amount of revenue that the municipality uses for a
  purpose described by Section 351.101(a)(3) to an amount that is
  less than the average amount of revenue used by the municipality for
  that purpose during the 36-month period that precedes the
  municipality's use of revenue under Subsection (b) or (c).
         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.