ALLOCATION OF REVENUE; CERTAIN LARGE COASTAL MUNICIPALITIES

(a) This section applies only to a municipality that borders on the Gulf of Mexico and has a population of more than 250,000. (b) A municipality to which this section applies shall separately account for all revenue derived from the application of the tax imposed by this chapter at a rate of more than seven percent of the cost of a room. (c) Subject to Subsection (e), revenue described by Subsection (b) may be used only for: (1) acquiring land for a municipally owned convention center; (2) constructing, improving, enlarging, equipping, repairing, operating, and maintaining a municipally owned convention center; and (3) paying bonds used to finance activities described by Subdivision (1) or (2). (d) For the purpose of the allocation of revenue under Section 351.103, revenue described by Subsection (b) is not counted. (e) Notwithstanding any other provision of this chapter, a municipality to which this section applies may use all or any portion of the revenue derived from the municipal hotel occupancy tax from hotels in an area previously subject to a county hotel occupancy tax and located on an island bordering the Gulf of Mexico to clean and maintain public beaches in the municipality. (f) In this section: (1) "Clean and maintain" has the meaning assigned by Section 61.063, Natural Resources Code. (2) "Public beach" has the meaning assigned by Section 61.001, Natural Resources Code.