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HomeMy WebLinkAboutC2008-367 - 7/22/2008 - ApprovedPage 1 of 12 AGREEMENT BETWEEN THE CITY OF CORPUS CHRISTI AND TEXAS STATE MUSEUM OF ASIAN CULTURES AND EDUCATION CENTER ("RECIPIENT") (HOTEL OCCUPANCY TAX REVENUE RECIPIENT AGREEMENT) The State of Texas County of Nueces KNOW ALL BY THESE PRESENTS: This Hotel Occupancy Tax Revenue Recipient Agreement ("Agreement") is made and entered into by and between the City of Corpus Christi, a Texas home-rule municipal corporation ("City"), acting through its duly authorized City Manager or his designee ("City Manager"), and Texas State Museum of Asian Cultures and Education Center ("Recipient"), a Texas non-profit corporation, qualified as a 501(c)(3) organization under 26 U.S.C. Section 501(c)(3). Whereas, the City has allocated $30,000.00 in Hotel Occupancy Tax revenue ("Grant funds") to enable Recipient to perform those activities described in Exhibit "A" ("Activities"), a copy of which is attached to this Agreement and incorporated by reference; Whereas, City desires to encourage and fund activities that promote the arts and in doing so serve to promote tourism and the convention and hotel industry within the City of Corpus Christi, in accordance with Chapter 351 of the Texas Tax Code; Whereas Recipient desires to provide those activities that promote the arts, and in doing so serve to promote tourism and the convention and hotel industry within the City of Corpus Christi, as the sole or contributory producer of the activities described in Exhibit "A" ("Activities"); Whereas, City has determined that there exists a genuine need for Recipient's Arts program in the City of Corpus Christi and wishes to encourage the production of Recipient's Arts Program through the funding of these Activities; Now, therefore, City and Recipient agree as follows: I. Purpose. The City desires to expend funds from the City's Hotel Occupancy Tax Revenue to fund activities produced by non-profit, community-oriented organizations, specifically those programs that promote the arts and in doing so also promote tourism and the convention and hotel industry within the City of Corpus Christi. II. Term. This agreement commences on the 1st day of August, 2008 and terminates on the 31 day of July, 2009. 2008-367 07/22/08 Ord. 027776 Asian Cultures Museum Agmt-Texas State Museum of Asian Cultures.doc Page 2 of 12 III. City's Duties. City agrees to pay Recipient $30,000 out of revenue from the City of Corpus Christi's Hotel Occupancy Tax fund for use in accordance with Section IV below. In no event will City be liable for an amount in excess of this grant amount. IV. Recipient's Duties. In consideration for receipt of Grant funds, Recipient agrees to pertorm those activities described in the attached and incorporated Exhibit "A". This pertormance shall include those activities that are eligible for funding under Section 351.101(a)(4) of the Texas Tax Code and those activities that are ineligible for funding under that section of the Texas Tax Code but are inherent in and essential to the successful production of Recipient's Activities. V. Eligible Activities. Use of grant funds by Recipient is limited to those activities that, without exception, meet all three of the following requirements: (A) the activities are described in the attached and incorporated Exhibit "A". (B) the activities are in the categories of art that are eligible for funding as described in Section 351.101(a)(3) and (4) of the Texas Tax Code, copy attached as "Exhibit B". (C) the activities promote both tourism and the convention and hotel industry within the City of Corpus Christi. VI. Promotion of Tourism and the Convention and Hotel Industry. Recipient must actively promote tourism to the City and the City's hotel and convention industry as a goal of Recipient's Activities. This may be accomplished by working to increase the number of out-of-town program attendees through target promotion and by working with the local Hotel-Motel and Condominium Associations. VII. Completion Report. Recipient must submit to the City's Director of Management and Budget ("Director") a completion report ("Report"), no later than thirty (30) days following the termination of this Agreement. The Director, or his designee, shall review this Report to verify whether the Grant funding provided to Recipient was spent in accordance with the requirements in this Agreement. The Report must include the following criteria: (A) Written assurance to City that all Activities funded by the City served to promote the arts in the community. This shall be evidenced by providing the City with a written description of Recipient's marketing or advertising strategy. (B) For all Activities funded by the City, Recipient must submit to the City a written estimate of the number of Recipient's Arts program attendees that reside outside the territorial limits of the City of Corpus Christi. This may be accomplished by the use of a visitor log, by tallying the number of out-of-town billings or by listing the out-of-town mailing addresses gathered through the ticket sales process. (C) An estimate of the total Arts Program attendance. H:1LEG-DIR\Lisa\2006 Butlget\2008 Hotel Tax Recipient Agmt-Texas Slate Museum of Asian Cultures.tloc Page 3 of 12 (D) A statement of Recipient's Arts Program revenues and expenditures. VIII. Records Retention. Recipient must at all times during the term of this Agreement, and for three years following the expiration of the Agreement, keep true, accurate, complete, and auditable records. Recipient agrees to: (A) at least annually make periodic reports to the City of its expenditures from the Grant funds given under this agreement; and (B make records of these expenditures available for review to the City. IX. Disbursement of Funds. Recipient understands and agrees that payment by the City of Grant funds under this Agreement is contingent upon Recipient's full compliance with the requirements of this Agreement. Should Director determine within five years from effective date of this Agreement that Recipient has failed to comply with the requirements contained in this Agreement, the Agreement is subject to termination in accordance with Section XVII, listed below, and all Grant funds must be repaid to the City. X. Unexpended funds. Upon termination of this Agreement, Recipient must promptly refund to City any unexpended Grant funds. XI. Advertising. Recipient must recognize the City of Corpus Christi as a contributor on all advertisements and publications regarding Recipient's Arts Program. Recipient must provide Director with a copy of all Recipient-sponsored advertising and promotion materials regarding its Activities. XII. Modifications and Waivers. No provision of this Agreement may be altered, changed, modified, or waived. XIII. Relationship between Parties. Nothing in this Agreement shall constitute a partnership, joint venture, or principal-agent relationship between the parties. XIV. Compliance with Laws. Recipient shall observe and obey all applicable laws, ordinances, regulations and rules of the Federal, State, Country and City governments. This Agreement is subject to applicable provisions of the City Charter and the City Code of Ordinances. XV. Non-discrimination. Recipient shall not discriminate, or permit discrimination against any person or group of persons, as to employment or in the provision of services, activities, and programs. Discrimination as it pertains to this section includes discrimination on the basis of race, religion, national origin, sex, disability, or age, or in any other manner that is prohibited by the laws of the United States or the State of Texas. Director retains the right to take action deemed necessary by Director to enforce this non-discrimination covenant. Violation of this provision will result in the immediate termination of this Agreement. H:\LEG-DIR\Lisa\20g8 Budget\2008 Hotel Tax Recipient Agmt-Texas State Museum of Asian Cultures.tloc Page 4 of 12 XVI. Indemnity. To the extent allowed by Texas law, Recipient hereby fully agrees to indemnify and hold harmless the City of Corpus Christi, its officers, employees, representatives, licensees, and invitees ("lndemnitees') against any and all liability, damage, loss, claims, demands, and actions of any nature due to personal injuries including, but not limited to, workers' compensation and death claims, or any property loss or damage of any kind, that arises out of or is in any manner connected with, caused by, either proximately or remotely, wholly or in part, or claimed to have arisen out of, been connected with, or have been caused by, any act or omission, negligence, or misconduct on the part of lndemnitees or Recipient, or Recipient's agents, servants, employees, guests, contractors, patrons, licensees, or invitees participating in or observing Recipient's Activities. Recipient further agrees to indemnify and hold harmless lndemnitees in any situation in which injury or damage results from a violation by the lndemnitees or Recipient, or Recipient's agents, servants, employees, guests, contractors, patrons, licensees, or invitees, of any law, statute, ordinance, or government order of any kind. Further, Recipient will indemnify and hold harmless lndemnitees where injury or damage results or arises out of the exercise or rights or performance of obligations created by this Agreement. These terms of indemnification are effective regardless of whether said injuries or damages result from the sole negligence, contributory negligence, or concurrent negligence of lndemnitees. Recipient must, at its own expense, investigate all claims and demands, attend to their final resolution either by settlement or otherwise, defend all actions with counsel satisfactory to lndemnitees, and pay all costs and expenses related to such actions on account of liability, damage, loss, claims, demands, or actions, including attorney fees. XVII. Termination. (A) The City may terminate this Agreement for any of the following reasons: (1) The City may immediately terminate the Agreement due to any violation by Recipient of section XIV or XV of this agreement. (2) The City may terminate this Agreement due to failure by the Recipient to substantially perform the Activities described in Exhibit "A". Director has the sole discretion to make the determination that Grant funds were H:\LEG-DIR\Lisa\2008 Butlget\2008 Rotel Tax Recipient Agm[-Texas Stale Museum of Asian Cullures.tloc Page 5 of 12 used for activities that did not fall within the permitted applications of tax revenue under Section 351.101(a) of the Tax Code. The City may terminate the Agreement upon thirty (30) days written notice, specifying that the Director has determined that Grant funds were used for purposes other than those allowed under Section 351.101(a) of the Tax Code, and require Recipient to reimburse the City all Grant funds award. Should Recipient and Director agree on a modification to the activities specified in Exhibit "A" and execute a written modification in compliance with Section XII of this Agreement, the City will not terminate the Agreement due to Recipient's failure to adhere to the original, superseded contract terms. (3) The City may terminate this Agreement due to Recipient's use of Grant funds to pay for activities other than those qualifying as Eligible Activities under section V of this Agreement. Director has the sole discretion to make the determination that Grant funds were used for activities other than those qualifying as Eligible Activities. The City may terminate the Agreement upon fourteen (14) days written notice, and require Recipient to reimburse the City all Grant funds awarded. (B) Recipient may terminate this Agreement without cause upon thirty (30) days written notice to City. If Recipient chooses to terminate the Agreement, Recipient must repay all Grant funds awarded, whether those funds were expended on Eligible Activities or not. XVIII. Severability. If any term or provision of this Agreement or its application to a person or circumstance is determined to be illegal, unenforceable or invalid, the remainder of this Agreement will not be affected by that illegality, unenforceability, or invalidity. To the extent possible, similar legal, valid, and enforceable terms will automatically be substituted for those that are found to be illegal, invalid, and unenforceable. XIX. Force Majeure. With respect to any duties, obligations, or covenants (but not including the Completion Report required by Section Vll) to be performed, or consideration to be provided to either party during the term of this Agreement, the party so obligated shall, in no event, be liable for failure to perform when prevented from doing so by any cause beyond the reasonable control of that party including, without limitation: strike, lockout, breakdown, accident, order or regulation of any governmental authority, failure of supply, inability, by the exercise of reasonable diligence, to obtain supplies, parts or employees necessary to perform services, or because of war, natural disaster, or other emergency. The time when that duty, obligation, or covenant must be performed or consideration must be provided will be extended for a period of time equivalent to the delay due to the cause beyond the control of the party obligated. XX. Notices. All notices, demands, requests, or replies ("communications") provided for or permitted under this Agreement by either party must be in writing and must be delivered by one of the following methods: (1) personal delivery; (2) deposit with the H:\LEG-DIR\Lisa\2008 Butlget\2008 Hotel Tax Recipient Agmt-Texas State Museum of Asian Cultures.tloc Page 6 of 12 United States Postal Service via certified or registered mail, return receipt requested, postage prepaid; (3) prepaid telegram; (4) deposit with an overnight express delivery service, for which service has been prepaid; or (5) fax transmittal. Notice deposited with the United States Postal Service in the manner described above will be deemed effective two (2) business days after deposit with the United States Postal Service. Notice by telegram or overnight express delivery service in the manner described above will be deemed effective one (1) business day after transmission to the telegraph company or overnight express carrier. Notice by fax will be deemed received upon transmission with proof of delivery to the receiving party. All communications must be made to: If to City: City of Corpus Christi Director, Parks & Recreation P. O. Box 9277 Corpus Christi, TX 78469-9277 (361)880-3461 If to Recipient: Texas State Museum of Asian Cultures and Education Center 1809 N. Chaparral St. Corpus Christi, Texas 78401 Either party may change the address to which notice is sent by providing notice as described above. Recipient must notify City of an address change within thirty (30) days after Recipient's address has changed. XXI. Waivers. The failure of either party to complain of any act or omission on the part of the other party, no matter how long the same may continue, will not be deemed a waiver by said party of any of its rights as enumerated in this Agreement. No waiver of any covenant or condition or breach of any covenant or condition of this Agreement by either party at any time, express or implied, will be taken to constitute a waiver of any subsequent breach of the covenant or condition. Notwithstanding any indulgence of any breach by the Recipient of the provisions of this Agreement, it is expressly understood that the City may at any time avail itself of its remedies under this Agreement, including the right to terminate the Agreement on account of breach or default. XXII. Entirety. This Agreement and all exhibits attached constitute the entire and sole agreement between the parties regarding the subject matter described in this H:\LEG-DIR\Lisa\2008 Butlget\200e Hotel Tax Recipient Agmt-Texas State Museum of Asian Cultures.doc Page 7 of 12 Agreement. No other written documents or oral representations will have any force or effect on the subject matter of this Agreement. XXIII. Captions. The captions contained in this Agreement are not a part of this Agreement and do not in any way affect or alter the terms of this Agreement. XXIV. Assignment. This Agreement may not be, in whole or in part, assigned or transferred directly or indirectly without prior written consent of City. ,~Q~ Executed in d plicate, each of which will be considered an original, on the ~'1 "'day of , 2008. ATTEST: CITY ~ CORPUS CHRISTI `t~ ~.~. Armando Chapa, City Secretary Si,~N.C' anager I ~I t2~r APPROVED: ~y~ 14 , 2008 ~~ ~ Lisa Aguila Assistant City Attorney For City Attorney V~..tG.~...~ .R;.~ AUTHUHILu ~' cauirca as o~ SECRETARY ~(f(I, FOR RECIPIENT President H:\LEG-DIR\Lisa\2008 Budget\200a Hotel Tax Recipient Agml-Texas State Museum of Asian Cultures.doc Page 8 of 12 STATE OF TEXAS COUNTY OF NUECES This instrument was acknowledged before me on ~ 0 ~ ~ 5 ~ , 2008, by Ca~hert<.r ~.~ro~x ,President, Texas State Museum of Asian Cultures and Education Center, a Texas non-profit corporation, qualified as a 501(c)(3) organization under 26\~ S.C. Sect~1(c)(3), on behalf of the corporation. ` ~ ~.~ \ Notary Public, State of Texas Printed Name Commission Expires ~ ~ ~~a-' ,"°~~MI R; ?~,„fi, ~~!:O1PRY PG ~.:7 s m'• ~'~ P OF 1E~'Py : . H:\LEG-DIR\Lisa\2008 Budget\2008 Hotel Tax Recipient Agmt-Texas Stale Museum ofASian Cullures.doc Page 9 of 12 EXHIBIT A Description of Recipient's Activities H:\LEG-DIR\Lisa\2008 Budget\2009 Hotel Tax Recipient Agmt-Texas State Museum of Asian Cultures.tloc 10/14/2008 11:19 01 ASIAN MUSEUM PACE 02 Texas State Museum of Asian Cultures & Education Center Website: ~ ww~v ~~~,ttuS~~-S.eum oro t 18091Vo. Chaparirai St • Corpus Christi, Texas 784U1 • March 31, 2008 VIA U.S. ,FX.(iS1"CLASSMAIL Mr. Eddie Houlihan Assistant Budget Director City of Corpus Christi P.O. Box 9277 Corpus Cluisti, TX 78469-9277 Dear Mr. Houlihan: (361) 882~2b41 /FAX (36X) 882-5718 The Texas State Museum, oi' Asian Cultures & Education Centex is most appxeciative of the financial assistance given by the Ciiy of Corpus Christi. Last year, we saw a greater increase in attendance; we wexe able to offer outstanding exhibits, worlcslzops, educational pxogxams and Asian festivals. Any additional funding would be of special benefit to tote growth and expanse of the Museum . allowing us the opporhulity to provide more divexse cultural and education experiences. Very truly yours, Cathexime l~acroix Exeeutivz Diseetox /xrdh Enclosure Eddie Hwlihm W. 03.31.08 A TAX EXEMPT NON-RROk'1T MUSEUM -IRS #23..7349085 OCT-14-2008 TUE 11:27 TEL:3618803864 NRME:C.C. PRRKS & RECRERTION P. 2 10/14/2008 11:19 01 ASIAN MUSEUM PAGE 03 City of Corpus Christi FY 2008-Q9 APPLICATION FOR USE OF HOTEL OCCUPANCY TAX FUNp$ The fol/awing information wi/l be used in determining your eliglbillfy for funding. To enable fu// consideration of your request, p/ease complete all Information to the best of your obi/ity, . Organization Name: Texas State Museum o£ Asian Cultures & Education Center Event/Facility for Which Funds are Requested: same ~s above. Total number of visitors/attendees in the previous calendar year. Number of visitors/attendees who were from out of town: Number of visitors/attendees who stayed in a Corpus Christi hotel; '~ Total annual operating budget {most recent year}: Amount of funding requested for.next fiscal year: 6,563 4,594 2,297 $ 116,073.47 $ 45,000.00 ' Now ~nrill funding requested enhance the promotion of tourism AND the convention and hotel industry in Corpus Christi? Please see attached. {Continued on reverse side of this page.) OCT-14-2008 TUE 11:27 TEL:3618803864 NRME:C.C. PRRKS 8 RECRERTION P. 3 10/14/2008 11:19 01 ASIAN MUSEUM PAGE 05 Page 2 Application of Use of I~ot k'uuds 'Yeses State Museum of Asian Cultures & lducation Center Museum RAC cards are placed at the airport, within Visitors' Centezs, and A11 hotels and motels in the surzouttding areas. General infoxmation about the Museum is published on our Website and is periodically updated. Also updated is the Museum calendar to provide additional information about special ev¢nts foz individuals to attend. TSMAC prints newsletters quarterly, which are mailed to Museum membezs, businesses anal the business Chambers. Our Director of Education sends out education packages to local schools and sulxoundialg counties. Students from Midland-Odessa down to Brownsville; from lazedo over to the Coastal Bend counties have come for education programs; and we have had requests to travel to Austin, Texas for outreach programs. Pliers and other informative publications are mailed to various groups interested in visiting Corpus Christi or have requested classes or special programs. Many of these requests come from 8re Convention anti Tourist Bureau. PSA's are sent to all local and area newspapezs, including NAS the Flying K, as well as all radio and television stations. 3. WLat la the zuarket area, outside of the Coastal Bead, that is targeted by tlreae strategies. TSMAC also publishes a "Calendar of Events" which is printed in the Caller-Times, the Enthusiast, ,,Art Papers Magazine (an international publication), various travel magazines, and the hlouston Japanese lYewspapex, The Southern Journal. The Museum tnazkets in the Valley, Houston, San Antonio, Dallas and some nozthezrr cities where we hope to atlzact Witmer Texans. OCT-14-2006 TUE 11:28 TEL:3618803864 NRME:C.C. PRRKS & RECRERTION 10/14/2008 11:19 01 ASIAN MUSEUM PAGE 04 TE?iAS STATE iVIUSEUIVI OF ASIAN CULTURES & EDUCATION CENTER CITY Oli COI2PUS CHRISTI Fx aoo~ios APPLICATION FOIL USE OF IIOTEL OCCUPAVCX TAX FUNDS PAGE IA I. Ilow will funding requested enbiauce the promotion of tourism AND the convention and hotel industry in Corpus Christi? Seventy percent of the visitors to the Texas State Museum of Asian Cultures & Education Center ("TSMAC") cgme fi~om outside the Corpus Christi area. Therefore, the need for adveltising is very important. With the continuation o£ our funds, we will publish and distribute greater atllounts of information on the Museum's activities, such as £esGvals, exhibits and educational classes. ItAC cards, entertainment and business publications will contain TSMAC advertisements. In addition to widen distribution of information about ongoing classes, we will offer an autzeaeh to schools and make efforts to attract Winter Texans, senior citizen groups and business seminar participants. Non~area groups that visit and terrain ovelvight in the area could possibly requite hotel accommodations and ground transportatiorn services. August 24-26, 200'7, we participated in the Anime Convention at ilte Omui Bay£ront Hotel with our staff and volunteezs. The Anima Convention attracted oven 1,500 individuals during this time, with many of the participants zequiring a local hotel oz motel accomznodataon during the time o£ the event. This year, the Atlime Convention is scheduled for September ~-7, 2008, at the i{oliday lrlu -Emerald Beach in which we will again be participating. Activities include lCabuka face painting and calligraphy, and teaching classes in calligraphy, ozlgami and the use of chopsticks during khe three days of the convention. TSMAC is also involved in the Upward Bound high school senior program which includes educational field trip programs far students during the surumer months which iuclude local groups and also from Missouri. During the month of May, the Museum will hold an educational field trip for students conning from El Paso, Texas foz a school cortlpetition at the Anxierican Bank Center. 2. Identity marketing strategies that will be used to stlbaulate touritsna, conveutiou and hotel activity. TSMAC works with, the Convention Visitor's Bureau to promote "Sand Dollars" and the band & Sea Partnezship during the month of February every year. Along with these promotions, the Museum offers special classes to tour groups, Winter Texans and other participating visitors. Additionally, we offer half-price admissions for PBS radio and television promotions, and ixi the Enteztainnleltt Book. During each year, TSMAC offers free admission passes to the Corpus Christi Intem,ational Airport to offer to visitors arriving at the airport. OCT-14-2008 TUE 11:28 TE~:3618803864 NRME:C.C. PRRKS & RECRERTION P. 4 Page 10 of 12 EXHIBIT B Texas Tax Code § 351.101. USE OF TAX REVENUE. 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; and (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, and flag football, 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; or (ii) has a population of at least 65,000 but not more than 70,000 and is located in a county that has a population of 155,000 or less; 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. H:\LEG-DIR1Lisa\2000 Budget\2008 Hotel Tax Recipient Agml-Texas State Museum of Asian Cultures.doc Page 11 of 12 (b) Revenue derived from the tax authorized by this chapter shall be expended in a manner directly enhancing and promoting tourism and the convention and hotel industry as permitted by Subsection (a). That revenue may not be used for the general revenue purposes or general governmental operations of a municipality. (c) The governing body of a municipality by contract may delegate to a person, including another governmental entity or a private organization, the management or supervision of programs and activities funded with revenue from the tax authorized by this chapter. The governing body in writing shall approve in advance the annual budget of the person to which it delegates those functions and shall require the person to make periodic reports to the governing body at least quarterly listing the expenditures made by the person with revenue from the tax authorized by this chapter. The person must maintain revenue provided from the tax authorized by this chapter in a separate account established for that purpose and may not commingle that revenue with any other money. The municipality may not delegate to any person the management or supervision of its convention and visitors programs and activities funded with revenue from the tax authorized by this chapter other than by contract as provided by this subsection. The approval by the governing body of the municipality of the annual budget of the person to whom the governing body delegates those functions creates a fiduciary duty in the person with respect to the revenue provided by the tax authorized by this chapter. (d) A person with whom a municipality contracts under this section to conduct an activity authorized by this section shall maintain complete and accurate financial records of each expenditure of hotel occupancy tax revenue made by the person and, on request of the governing body of the municipality or other person, shall make the records available for inspection and review to the governing body or other person. (e) Hotel occupancy tax revenue spent for a purpose authorized by this section may be spent for day-to-day operations, supplies, salaries, office rental, travel expenses, and other administrative costs only if those administrative costs are incurred directly in the promotion and servicing expenditures authorized under Section 351.101(a). If a municipal or other public or private entity that conducts an activity authorized under this section conducts other activities that are not authorized under this section, the portion of the total administrative costs of the entity for which hotel occupancy tax revenue may be used may not exceed the portion of those administrative costs actually incurred in conducting the authorized activities. (f) Municipal hotel occupancy tax revenue may not be spent for travel for a person to attend an event or conduct an activity the primary purpose of which is not directly related to the promotion of tourism and the convention and hotel industry or the performance of the person's job in an efficient and professional manner. H:\LEG-DIR\Lisa12008 Budget12008 Hotel Tax Recipient Agmt-Texas State Museum of Asian Cultures.tloc Page 12 of 12 (g) Nothing in this section shall prohibit any private entity, person, or organization from making subgrants by contract to any other person, entity, or private organization for expenditures under Section 351.101(a)(4). A subgrantee shall: (1) at least annually make periodic reports to the governing body of its expenditures from the tax authorized by this chapter; and (2) make records of these expenditures available for review to the governing body or other person. Added by Acts 1987, 70th Leg., ch. 191, § 1, eff. Sept. 1, 1987. Amended by Acts 1989, 71st Leg., ch. 2, § 14.24(a), eff. Aug. 28, 1989; Acts 1989, 71st Leg., ch. 1110, § 4, eff. Oct. 1, 1989; Acts 1993, 73rd Leg., ch. 680, § 3, eff. Sept. 1, 1993; Acts 1995, 74th Leg., ch. 1027, § 1, eff. Aug. 28, 1995; Acts 2001, 77th Leg., ch. 755, § 1, eff. June 13, 2001; Acts 2001, 77th Leg., ch. 1308, § 3, eff. June 16, 2001; Acts 2003, 78th Leg., ch. 209, § 90, eff. Oct. 1, 2003; Acts 2003, 78th Leg., ch. 303, § 1, eff. June 18, 2003; Acts 2005, 79th Leg., ch. 1247, § 1, eff. June 18, 2005. H:\LEG-DIR\Lisa\2008 Budge[p008 Hotel Tax Recipient Agmt-Texas State Museum ofASian Cultures.doc