ALLOCATION OF REVENUE: ELIGIBLE BARRIER ISLAND COASTAL MUNICIPALITY

(a) In this section, "spacecraft" and "spaceport" have the meanings assigned by Section 507.001, Local Government Code. (b) Notwithstanding any other provision of this chapter, an eligible barrier island coastal municipality may use revenue from the municipal hotel occupancy tax for: (1) 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: (A) a majority of the event's participants are tourists; and (B) the event substantially increases economic activity at hotels and motels within or in the vicinity of the municipality; (2) expenses directly related to: (A) the acquisition of sites to observe spacecraft and spaceport activities; and (B) the construction, improvement, enlarging, equipping, repairing, operation, and maintenance of facilities utilized by hotel guests to observe and learn about spacecraft and spaceport operations; and (3) expenses directly related to the construction, improvement, equipping, repairing, operation, and maintenance of coastal sports facilities owned by the municipality, including boat docks, boat ramps, and fishing piers used by hotel guests, if: (A) the coastal sports facilities have been used in the preceding calendar year a combined total of more than five times for district, state, regional, or national sports tournaments or events; and (B) the majority of the events at the coastal sports facilities are directly related to a sports tournament or event in which the majority of participants are tourists who substantially increase economic activity at hotels within or in the vicinity of the municipality. (c) A municipality may use for the purposes provided by Subsections (b)(1), (2), and (3) not more than the greater of: (1) 15 percent of the hotel occupancy tax revenue collected by the municipality; or (2) the amount of tax received by the municipality at the rate of one percent of the cost of a room.