S.B. No. 1365

	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.  Section 351.101(a), Tax Code, as amended by
	Chapters 666 (H.B. 3772) and 979 (H.B. 3615), Acts of the 84th
	Legislature, Regular Session, 2015, is reenacted and amended to
	read as follows:
	(a)  Revenue from the municipal hotel occupancy tax may be
	used only to promote tourism and the convention and hotel industry,
	and that use is limited to the following:
	(1)  the acquisition of sites for and the construction,
	improvement, enlarging, equipping, repairing, operation, and
	maintenance of convention center facilities or visitor information
	centers, or both;
	(2)  the furnishing of facilities, personnel, and
	materials for the registration of convention delegates or
	registrants;
	(3)  advertising and conducting solicitations and
	promotional programs to attract tourists and convention delegates
	or registrants to the municipality or its vicinity;
	(4)  the encouragement, promotion, improvement, and
	application of the arts, including instrumental and vocal music,
	dance, drama, folk art, creative writing, architecture, design and
	allied fields, painting, sculpture, photography, graphic and craft
	arts, motion pictures, radio, television, tape and sound recording,
	and other arts related to the presentation, performance, execution,
	and exhibition of these major art forms;
	(5)  historical restoration and preservation projects
	or activities or advertising and conducting solicitations and
	promotional programs to encourage tourists and convention
	delegates to visit preserved historic sites or museums:
	(A)  at or in the immediate vicinity of convention
	center facilities or visitor information centers; or
	(B)  located elsewhere in the municipality or its
	vicinity that would be frequented by tourists and convention
	delegates;
	(6)  [for a municipality located in a county with a
	population of one million or less,] 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 if:
	(A)  the municipality is located in a county with
	a population of one million or less; or
	(B)  the municipality has a population of more
	than 67,000 and is located in two counties with 90 percent of the
	municipality's territory located in a county with a population of
	at least 580,000, and the remaining territory located in a county
	with a population of at least four million;
	(7)  subject to Section 351.1076, the promotion of
	tourism by the enhancement and upgrading of existing sports
	facilities or fields, including facilities or fields for baseball,
	softball, soccer, flag football, and rodeos, if:
	(A)  the municipality owns the facilities or
	fields;
	(B)  the municipality:
	(i)  has a population of 80,000 or more and
	is located in a county that has a population of 350,000 or less;
	(ii)  has a population of at least 75,000 but
	not more than 95,000 and is located in a county that has a
	population of less than 200,000 but more than 160,000;
	(iii)  has a population of at least 36,000
	but not more than 39,000 and is located in a county that has a
	population of 100,000 or less that is not adjacent to a county with
	a population of more than two million;
	(iv)  has a population of at least 13,000 but
	less than 39,000 and is located in a county that has a population of
	at least 200,000;
	(v)  has a population of at least 70,000 but
	less than 90,000 and no part of which is located in a county with a
	population greater than 150,000;
	(vi)  is located in a county that:
	(a)  is adjacent to the Texas-Mexico
	border;
	(b)  has a population of at least
	500,000; and
	(c)  does not have a municipality with
	a population greater than 500,000;
	(vii)  has a population of at least 25,000
	but not more than 26,000 and is located in a county that has a
	population of 90,000 or less;
	(viii) [(ix)]  is located in a county that
	has a population of not more than 300,000 and in which a component
	university of the University of Houston System is located; [or]
	(ix) [(x)]  has a population of at least
	40,000 and the San Marcos River flows through the municipality; or
	(x)  has a population of more than 67,000 and
	is located in two counties with 90 percent of the municipality's
	territory located in a county with a population of at least 580,000,
	and the remaining territory located in a county with a population of
	at least four million; and
	(C)  the sports facilities and fields have been
	used, in the preceding calendar year, a combined total of more than
	10 times for district, state, regional, or national sports
	tournaments;
	(8)  for a municipality with a population of at least
	70,000 but less than 90,000, no part of which is located in a county
	with a population greater than 150,000, the construction,
	improvement, enlarging, equipping, repairing, operation, and
	maintenance of a coliseum or multiuse facility;
	(9)  signage directing the public to sights and
	attractions that are visited frequently by hotel guests in the
	municipality;
	(10)  the construction, improvement, enlarging,
	equipping, repairing, operation, and maintenance of a coliseum or
	multiuse facility, if the municipality:
	(A)  has a population of at least 90,000 but less
	than 120,000; and
	(B)  is located in two counties, at least one of
	which contains the headwaters of the San Gabriel River; and
	(11)  for a municipality with a population of more than
	175,000 but less than 225,000 that is located in two counties, each
	of which has a population of less than 200,000, the construction,
	improvement, enlarging, equipping, repairing, operation, and
	maintenance of a coliseum or multiuse facility and related
	infrastructure or a venue, as defined by Section 334.001(4), Local
	Government Code, that is related to the promotion of tourism.
	SECTION 2.  To the extent of any conflict, this Act prevails
	over another Act of the 85th Legislature, Regular Session, 2017,
	relating to nonsubstantive additions to and corrections in enacted
	codes.
	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, 2017.
	______________________________	______________________________
	President of the Senate	Speaker of the House
	I hereby certify that S.B. No. 1365 passed the Senate on
	April 19, 2017, by the following vote:  Yeas 27, Nays 4.
	______________________________
	Secretary of the Senate
	I hereby certify that S.B. No. 1365 passed the House on
	May 9, 2017, by the following vote:  Yeas 138, Nays 7, two present
	not voting.
	______________________________
	Chief Clerk of the House
	Approved:
	______________________________
	Date
	______________________________
	Governor