Untitled Texas Attorney General Opinion ( 1974 )

OF TEXAS
January 16, 1974
The Honorable Maurice Coats Opinion NO. H- 209
Executive Director
Texas Commission on the Arts and Re: Allowable uses of
Humanities revenue created at the
403 Sixth Street local level by the
Austin, ~Texas 78701 Hotel Occupancy Tax
Dear Mr. Coats:
Your request for an opinion concerns whether ornot the City of
Temple may use a portion of the revenue collected from the Hotel Occupancy
.
Tax to contract with the Temple Cultural Activzti’es ~Center for cultural
services to the community. From a broadei’perspeotive, you ask “can
units of .10&l government use revenues collected.f,rom the Hotel Occupancy
Tax to contract with nongovernmental organizations which provide appropriate
programs or services provided in [Art. ] 1269j-4.1, [V. T. C. S. ]? ” You have
advised us of the following facts:
’ “‘The Temple Cultural Activities Center is a nonprofit
corporation. . . . It is a membership organization which
provides programs in the arts and humanities for all of
Temple. . . . . The Center sponsors performances of
music, theatre, and dance, exhibits of the visual arts,
programs in .the humanities, and a varied program of
instruction in all of these areas.
“The Center has nine organizational members [including
the Temple Civic Theatre, the Temple Boys Choir, etc.]
. . . ., These groups have a combined membership of
approximately 1,200 persons. They provide the’ major
artistic and non-academic humanistic programsfor almost
LOP,000 people.
p. .982
The Honorable Maurice Coats, page 2 (H-209)
“The Center’s main purpose is the development of
programs in the arts for the general public of central
Texas. . . . ”
The Hotel Occupancy Tax to which you refer is authorized by Art.
1269j-4.1, V. T. C.S., which applies to incorporated cities with a popula-
tion of 8.500 or more. The population of Temple, a Home Rule City,
exceeds that figure. Section 3c of the statute reads:
“(a) The revenue derived fromany occupancy tax
authorized or validated by this Act may only be used
for:
“(I) the acquisition of sites for and the construction,
improvement, enlarging, equipping, repairing, opera-
tion, and maintenance of convention center facilities
including, but not limited to, civic center convention
building 8, auditoriums, coliseums, and parking areas
or facilities for the parking or storage of motor vehicles
or other conveyances located at or in the immediate
vicinity of the convention center’ facilities:
“(2) the furnishing of facilities, personnel and materials
for the registration of convention delegates or registrants;
“(3) for advertising for general promotional and tourist
advertising of the city and its vicinity and conducting a
solicitation and operating program to attract conventions
and visitors either by the city or through contracts with
persons or organizations selected ,by the city.
,I . . . . I,
The powersof cities are wholly statutory, Home Rule cities, such as
Temple, can contract with private persons or entities for the provision of
services its citizens require, Article 1176, V. T. C. S. See Barrington v.
Cokinos, 338 S.W.2d 133 (Tex. 1960); City of Big Spring v. Board of Control4
p. 983
The Honorable Maurice Coats, page 3 (H-209)
404 S.W.2d 810 (Tex. 1966); City of Crosbyton v. Texas-New Mexico
Utilities Co., 157 S.W.2d 418 (Tex. Civ.App., Amarillo, 1942, writ ref.,
want merit). However, we do not believe the permissible uses of occupancy
tax revenues include general efforts to support the arts. It may be that the
programs you describe, in certain situations, could have the ancillary effect
of contributing to a “solicitation and operating program to attract conven-
tions and visitors, ” but as you state in your inquiry, their main purpose
is the development of programs in the arts for the general public of central
Texas. Befdrk Hotel Occupancy Tax funds could be used to purchase ser-
vices, activities or programs for the developme‘nt of’,the arts, we believe
they would need to be directly related to the attraction of conventions or
tourists. The question of whether such services or activities have such a
direct relationship is ultimately one of fact for the courts, but should the
city determine initially that a particular program would be developed as a
means directly related to attracting conventions and visitors, we think it
might then contract with the Center for such a program, and legally fund
the contract with Hotel Occupancy Tax funds.
Although we are sympathetic with efforts to support the arts, it is our
conclusion that the statutory provisions for use of occupancy tax revenues
do not permit expenditures from those funds for -general cultural or artistic
activities except in the limited instances where the activity is developed land
carried ,out so as to be directly related to the attraction of conventions or
tourists.
SUMMARY
The City of Temple may not use revenue collected
from the hotel occupancy tax to contract for operation of
the Temple Cultural Activities Center, except for programs
which are developed so as to directly relate to the attraction
of conventions and visitors to the city.
Very truly yours,
Attorney General of Texas
p. 984
The Honorable Mallrice Coats, page 4 (H-209)
Opinion Committee
p. 985