By: Birdwell S.B. No. 2779 (In the Senate - Filed March 14, 2025; April 3, 2025, read first time and referred to Committee on Economic Development; April 16, 2025, reported adversely, with favorable Committee Substitute by the following vote: Yeas 4, Nays 1; April 16, 2025, sent to printer.) Click here to see the committee vote COMMITTEE SUBSTITUTE FOR S.B. No. 2779 By: Sparks A BILL TO BE ENTITLED AN ACT relating to the allocation and use of certain hotel occupancy tax revenues. BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: SECTION 1. Section 156.2511, Tax Code, is amended by adding Subsections (a-1) and (b-1) and amending Subsection (b) to read as follows: (a-1) An eligible coastal municipality that receives a warrant issued under Subsection (a) shall transfer the full amount of the warrant to the park board of trustees created by the municipality not later than the last day of the calendar month immediately following the date the municipality received the warrant. (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; (2) either: (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; and (3) on the request of the comptroller, submitted to the comptroller: (A) financial data necessary to demonstrate that the municipality has satisfied the requirements of Subdivision (1); and (B) a signed attestation stating that the municipality has satisfied the requirements of this subsection. 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 or prioritizes on the basis of race, color, disability, sex, religion, age, or national origin. SECTION 3. This Act takes effect September 1, 2025. * * * * *