Relating to the allocation and use of certain hotel occupancy tax revenues.

SB 2779 directs Texas to allocate 2% of hotel occupancy tax revenue collected in eligible coastal municipalities (those with beach park boards under Local Government Code Chapter 306) to those park boards for public beach cleaning and maintenance. To qualify, municipalities must first allocate at least 1% of their own hotel tax revenue for beach upkeep and either apply for state beach funds or provide comparable data to the comptroller. The bill also adds a new provision prohibiting the use of these funds for any discriminatory programs or activities. This policy change affects coastal municipalities with designated beach management boards and ensures funds are specifically used for beach maintenance under defined conditions.