SB 2779

relating to the allocation and use of certain hotel occupancy tax
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
SECTION 1.  Section 156.2511, Tax Code, is amended by
amending Subsections (a) and (b) and adding Subsection (b-1) to
(a)  Not later than the last day of the month following a
calendar quarter, the comptroller shall:
(1)  compute the amount of revenue derived from the
collection of taxes imposed under this chapter at a rate of two
percent and received from hotels located in an eligible coastal
municipality that has created a park board of trustees to
administer public beaches under Chapter 306, Local Government Code;
(2)  issue to the park board of trustees created by the
eligible coastal municipality a warrant drawn on the general
revenue fund in the amount computed under Subdivision (1).
(b)  Money [An eligible coastal municipality may use money]
received under this section may be used only to clean and maintain
public beaches in the eligible coastal [that] municipality.
(b-1)  The comptroller may issue a warrant under this section
only if the eligible coastal municipality has:
(1)  allocated at least one percent of the tax imposed
by the municipality under Chapter 351 to clean and maintain public
beaches in the municipality; and
(A)  applied for state funds under Subchapter C,
Chapter 61, Natural Resources Code; or
(B)  made available to the comptroller the same
information required to be contained in an application under
Section 61.069, Natural Resources Code.
SECTION 2.  Section 351.101, Tax Code, is amended by adding
Subsection (b-1) to read as follows:
(b-1)  Notwithstanding Subsection (a), revenue derived from
the tax authorized by this chapter may not be expended in a manner
or by a program or activity that discriminates on the basis of race,
color, disability, sex, religion, age, or national origin.
SECTION 3.  This Act takes effect September 1, 2025.