88R19893 CJD-F     By: Morrison H.B. No. 2497     Substitute the following for H.B. No. 2497:     By:  Muñoz, Jr. C.S.H.B. No. 2497       A BILL TO BE ENTITLED   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.