HomeMy WebLinkAboutC2010-539 - 7/20/2010 - ApprovedPage 1 of 13
AGREEMENT BETWEEN THE CITY OF CORPUS CHRISTI AND
SOUTH TEXAS INSTITUTE FOR THE ARTS ("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 Art Museum of Sou#h Texas operated by South Texas Institute
for the Arts ("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 .90600 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 bynon-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 October 1, 2010 and terminates on the July
31, 2011.
III. City's Duties. City agrees to pay Recipient $90,600.00 out of revenue from the
City ofi 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.
2410-539
Ord. 028683
d'71~,Q~~Q Agmt-Art Museum of Souih Texas.doc
Sa. Texas Institute for the Arts
~R ~~
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IV. Recipient's Duties. In consideration for receipt of Grant funds, Recipient agrees
to perform those activities described in the attached and incorporated Exhibit "A". This
performance shall include those activities that are eligible for funding under Section
351.101 (a) (3}, 351.101(a)(4), and 351.101 (b}, of the Texas Tax Code and those
activi#ies 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 Chase 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), and Section 351.101 (b) of the Texas
Tax Code, copy attached as "Exhi#~it B"; and
(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 Indus#ry. 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.
(D} A statement of Recipient's Arts Program revenues and expenditures.
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Vlll. Records Retention. Recipient must at all times during the term of this
Agreement, and far 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 #hat 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 Sec#ion XVI I, 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 rela#ionship 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 Cade
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, activi#ies, 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 ar 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.
XVI. Indemnity. To the extent allowed by Texas law, Recipient hereby
fully agrees to indemnify and hold harmless the Cify of Corpus
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Christi, its officers, employees, representatives, licensees, and
invitees ("indemnitees") 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 Indemnitees or Recipient, or
Recipient's agents, servants, employees, guests, contractors,
patrons, licensees, or invitees participating in or observing
Recipient's Activities. Recipienf further agrees fo indemnify and hold
harmless Indemnitees in any situation in which injury or damage
results from a violation by the Indemnitees yr 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, Recipienf wilt indemnify and
hold harmless Indemnitees where injury or damage results or arises
out of the exercise or righfs or performance of obligations created by
this Agreemenf.
These terms of indemnification are. effective regardless of whether
said injuries or damages result from the sole negligence, contributory
negligence, or concurrent negligence of Indemnitees. Recipient must,
at its own expense, invesfigate all claims and demands, attend to their
final resolution either by settlement or otherwise, defend all actions
with counsel satisfacfory to Indemnitees, and pay all costs and
expenses related fo 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
used for activities that did not fall within the permitted applications of tax
revenue under Section 351.1 p1(a) of the Tax Code. The City may
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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. ~ 41 {a) of the Tax Cade, 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 Xli 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 #o 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. Ta 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 Vil) 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, lockou#, 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, ar because of war, na#ural
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
United States Postal Service via certified or registered mail, return receipt requested,
postage prepaid; (3) prepaid telegram; (4) deposit with an overnight express delivery
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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:
Art Museum of South Texas o erated b
South Texas Institute for the Arts
1902 N. Shoreline
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 ali exhibits attached constitute the entire and sole
agreement between the parties regarding the subject matter described in this
Agreement. No other written documents or oral representations will have any force or
effect on the subject matter of this Agreement.
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XXIII. Captions. The captions contained in this Agreement are not a part of this
Agreement and do not in any way affect or after the terms of this Agreement.
XXIV. Assignment, This Agreement may not be, in whole or in part, assigned or
transferred directly ar indirectly without prior written consent of City.
~.
Executed in duplicate, each of which will be considered an original, on the day
of - ~.,~ , Lfl~ 2dc+ t I
ATTEST• CITY~F CORPUS CHR/ISTI
._ !~
Armando Chapa, City Secretary g R. Escobar, City Manager
~~ Ali
APPROVED: ~+-- ,~~6~-8-
Lisa Aguilalt~
Assistant City Attorney
For City Attorney
FOR RECIPIENT
N m ~~~
Title. ~ ..~ .~ - ~, __
STATE OF TEXAS
COUNTY OF NUECES
~~-.,, R~THEIRI~k~
dY ~1tfl~C1~„~~~~.~
„r.....,...»...~......,......s. ~i.
S~C~~ f~,R~~~
This instrument was acknowledged before me on ~~ /u~~,~ ~ , 2010, by
i~~~/1!L ,~. Sc% ~ ,President, South Texas ]nstitute for the Arts, a Texas non-
profi' corporation, qualified as a 501(c)(3) organization under 26 U.S.C. Section
501(c)(3}, on behalf of the corporation.
_.
.~~ ~ t i N...l,
II o,*~r-~i; MERMISENDA RfC10
i~'a;` ~' Notary Public, State of Texas
Otary Public, State of Texas =,~,~,.~ My Commission Expires
.~fr~i'`t:`~ February 16, 2Q13
f1 f 41 IH1~
Printed Name
Commission Expires
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EXHIBIT A
Descri?atian of Recipient's Activities
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ART MUSEUM OF SOUTH TEXAS
MISSION AND ORGANIZATION
1.1 Mission. The Mission of the South Texas Institute fnr the Arts {the Institute},
doing business as the Art Museum of South Texas, is to operate educational facilities
and an art museum which advance the awareness, knowledge, appreciation and
enjoyment of the visual arts for residents and visitors of South Texas.
To meet its educational mission, the Institute will present a variety of programs whic#~
Include classes, lectures, films, performances and other activities which inspire
community interest in the visual arts. These programs will be offered at the Art Museum
of South Texas, the Antonio E. Garcia Arts and Education Center, and other outreach
venues that serve the Institute's mission.
In operating an art museum, the Institute will actively collect, conserve, exhibit, research
and Interpret outstanding works of visual art with particular interest in art of the
Americas and of the region.
1.2 Operating Principles. The Institute shall operate in accordance with the following
principles.
- Place education in its broadest sense at the center of its public service
role;
w Seek the highes# quality within all program offerings to serve the diverse
audiences living in the South Texas region;
- Reflect the diversi#y of our society by estalalishing and maintaining a broad
constituency of leadership, patronage and public programming;
- Assure the interpretive process manifests a variety in cultural and
intellectual perspectives and reflects the diversity of the Institute's public;
- Engage in active, ongoing collaborative efforts with a wide spectrum of
organizations and individuals who can contribute to the expansion of the
Institute's public dimension;
- Maintain diversity among trustees, staff and volunteers to assure a
breadth of perspective throughout the organization;
- Commit leadership and financial resources to maintain annual operating
needs.
The Art Museum of South Texasss the only major fine arts museum within 150 mile
radius of Corpus Christi. Founded in 1945, the Art Museum of South Texas moved from
South Biuff Park to the Philip Johnson designed building on the Corpus Christi bay front
in 1972. In 1995 the Museum became affiliated with Texas A&M University-Corpus
Christi. Two years later the Museum merged with the Creative Arts Center and the
Center for Hispanic Arts, creating the South Texas Institute for the Arts. In 200b the
Legorreta wing was compleked bringing the museum to a total of 60,000 square feet of
gallery space, a restaurant, gift shop, offices, the digital class room and additional
storage. Additionally, the Museum provides programs at the Antonio E. Garcia Arts
Education Center an Agnes Street. The Art Museum of South Texas receives over
85,000 visitors annually. The Museum's focus on art education for children and adults as
well as making available for view important and inspirational works of art, makes the Art
Museum of South Texas a destination far both local families and visitors to the South
Texas region.
The Permanent Collection is the Institute's most significant asset. The collection is
comprised of over 1,500 works of art including painting, sculpture, drawing,
photography, printmaking, ceramics, fabric, and fine craft. In 1994, the Museum Board
revised its mission to place an emphasis on developing a comprehensive collection of
works by artists associated with the state of Texas and art of the Americas. Museum staff
aggressively seeks art created in the region. The Permanent Collection increases by
approximately 50 works per year. In 2001, the Collection doubled with the addition of
900 paintings, prints, drawings, and collages from the estate ofrecognized Texas artist,
the late Dorothy Haod.
The Art Museum presents 12 to 15 exhibitions per year. The annual exhibit calendar
regularly pairs contemporary presentations with more conventional exhibits of traditional
images such as Western and/or wildlife art. The Museum typically presents art of
regional, state, national and international interest, looking For a balance of artistic media
by presenting painting and sculpture, craft, printmaking and photography, drawings and
installation art. Other exhibits are co-organized with Texas A&M University -Corpus
Christi faculty, sharing gallery space.
Page 9 of 13
EXHIBIT B
Sec. 351.101. USE Of= TAX REVENUE.
Text of subsection as amended by Acts 2009, 81st Leg., R.S., Ch. 402, Sec. 1
(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 his#oric 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;
{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 #ields;
(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;
(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;
(iii} has a population of at least 34,000 but not more than
36,000 and is located in a county that has a population of 90,000 or less;
(iv} has a population of at least 13,000 but less than
39,000 and is located in a county that has a population of at least 200,000;
{v) has a population of at least 65,000 but less than 80,000
and no part of which is located in a county with a population greater than 150,000; or
(vi) is located in a county that:
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(a) is adjacent to the Texas-Mexico border;
(b) has a population of at least 500,000; and
(c} does not have a municipality with a population
greater than 500,000; 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; and
(8) for a municipality with a population of at least 65,000 but less than
80,000, no part of which is located in a county with a population greater than 150,000,
the construction, improvement, enlarging, equipping, repairing, operation, and
maintenance of a coliseum or multiuse facility.
Text of subsection as amended by Acts 2009, 81st Leg., R.S., Ch. 1220, Sec. 3
(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 far 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 immedia#e 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;
(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:
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(i} has a population of 80,000 or more and is located in a
county that has a population of 350,000 or less;
(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; or
{iii} has a population of at least 34,000 but not more than
36,000 and is located in a county that has a population of 90,000 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; and
(8) signage directing the public to sights and attractions that are visited
frequently by hotel guests in the municipality.
Text of subsection as amended by Acts 2009, 81st Leg., R.S., Ch. 1322, Sec. 1
(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;
(7} subject to Section 351.1076, the promotion of tourism by the
enhancement and upgrading of existing sports facilities ar fields, including facilities or
fields for baseball, softball, soccer, and flag football, if:
{A) the municipality owns the facilities or fields;
(B) the municipality:
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(i) has a population of 80,000 or more and is located in a
county that has a population of 350,000 or less;
(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; or
(iii) has a population of at least 3~,DOD but not more than
36,000 and is located in a county that has a population of 90,000 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; and
(8} the construction of a recreational venue in the immediate vicinity of
area hotels, if:
(A) the municipality:
(i) is a general-law municipality;
(ii) has a population of not more than 900; and
(iii) does not impose an ad valorem tax;
(B) not more than $100,000 of municipal hotel occupancy tax
revenue is used for the construction of the recreational venue;
(C) a majority of the hotels in the municipality request the
municipality to construct the recreational venue;
(D) the recreational venue will be used primarily by hotel guests;
and
(E) the municipality will pay for maintenance of the recreational
venue from the municipality's general fund.
(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 pravided from the tax authorized by this chapter in a separate account
established far 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
subset#ion, The approval by the governing body of the municipality of the annual budget
of the person to whom the gaverning body delegates those func#ions 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,
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an 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 casts 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.
(g) Nothing in this section shall prohibit any private entity, person, or
arganization 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, Sec. 1, eff. Sept. 1, 1987. Amended by Acts
1989, 71st Leg., ch. 2, Sec. 14.24(a), eff. Aug. 28, 1989; Acts 1989, 71st Leg., ch. 1110,
Sec. 4, eff. Oct. 1, 19$9; Acts 1993, 73rd Leg., ch. 680, Sec. 3, eff. Sept. 1, 1993; Acts
1995, 74th Leg., ch. 1027, Sec. 1, eff. Aug. 28, 1995; Acts 2001, 77th Leg., ch. 755,
Sec. 1, eff. June 13, 2001; Acts 2001, 77th Leg., ch. 1308, Sec. 3, eff. June 16, 2001;
Acts 2003, 78th Leg., ch. 209, Sec. 90, eff. Oct. 1, 2003; Acts 2003, 78th Leg,, ch. 303,
Sec. 1, eff. June '! 8, 2003.
Amended by:
Acts 2005, 79th Leg., Ch. 1247, Sec. 1, eff. June 18, 2005.
Acts 2007, 80th Leg., R.S., Ch. 1144, Sec. 1, eff. June 15, 2007.
Acts 2009, 81st Leg., R.S., Ch. 402, Sec. 1, eff. June 19, 2009.
Acts 2009, 81st Leg., R.S., Ch. 1220, Sec. 3(a), eff. June 19, 2009.
Acts 2009, 81st Leg., R.S., Ch. 1322, Sec. 1, eff. June 19, 2009.
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