(a) In this section:
(1) “Clean and maintain” has the meaning assigned by § 61.063, Natural Resources Code.
(2) “Public beach” has the meaning assigned by § 61.001, Natural Resources Code.
(3) “Beach security” means beach patrol, lifeguard services, marine water safety, and park law enforcement.
(4) “Erosion response project” has the meaning assigned by § 33.601, Natural Resources Code.
(b) Notwithstanding any other provision of this chapter, a home-rule municipality that borders on the Gulf of Mexico and has a population of more than 250,000 may use all or any portion of the revenue derived from the municipal hotel occupancy tax from hotels in an area previously subject to a county hotel occupancy tax and located on an island bordering the Gulf of Mexico to clean and maintain public beaches in the municipality.

(c) Notwithstanding any other provision of this chapter, a municipality that has a population of less than 5,000 adjacent to a home-rule city with a population of less than 80,000 may use all or any portion of the revenue heretofore or hereafter derived from the municipal hotel tax:
(1) to clean and maintain the beaches in the municipality;
(2) to provide beach security within the municipality;
(3) for any of the purposes permitted or allowed by § 1504.001, Government Code;
(4) for any purpose allowed by § 351.105; or
(5) to pay the principal of or interest on bonds or notes issued for any of these purposes.
(d) Notwithstanding any other provision of this chapter and except as provided by Subsection (e), an eligible barrier island coastal municipality shall use at least the amount of revenue derived from the application of the tax at a rate of seven percent of the cost of a room for the purposes authorized under Sections 351.101(a)(1) and (3) and Sections 351.1054(b)(1) and (2). If an eligible barrier island coastal municipality uses hotel occupancy tax revenue for a purpose described by § 351.1054(b)(2), the municipality may not reduce the amount of revenue that is used for purposes described by § 351.101(a)(3) to an amount that is less than the average amount of revenue used by the municipality for purposes described by § 351.101(a)(3) during the 36-month period that precedes the municipality’s first use of revenue for a purpose described by § 351.1054(b)(2).
(e) An eligible barrier island coastal municipality that imposes the tax at a rate equal to or greater than 7-1/2 percent of the price paid for a room shall use at least the amount of revenue derived from the application of the tax at a rate of one-half of one percent of the cost of a room for erosion response projects.