By: Paul (Senate Sponsor - Taylor of Galveston)	H.B. No. 1585
	(In the Senate - Received from the House May 18, 2015;
	May 18, 2015, read first time and referred to Committee on Business
	and Commerce; May 22, 2015, reported favorably by the following
	vote:  Yeas 7, Nays 0; May 22, 2015, sent to printer.)
Click here to see the committee vote

	COMMITTEE VOTE
	YeaNayAbsentPNV
	EltifeX
	CreightonX
	EllisX
	HuffinesX
	SchwertnerX
	SeligerX
	TaylorofGalvestonX
	WatsonX
	WhitmireX
	A BILL TO BE ENTITLED
	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 that 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)  municipal hotel occupancy tax 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.
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