(a) This section applies only to a municipality that borders on the Gulf of Mexico and has a population of more than 250,000.
(b) A municipality to which this section applies shall separately account for all revenue derived from the application of the tax imposed by this chapter at a rate of more than seven percent of the cost of a room.

(c) Subject to Subsection (e), revenue described by Subsection (b) may be used only for:
(1) acquiring land for a municipally owned convention center;
(2) constructing, improving, enlarging, equipping, repairing, operating, and maintaining a municipally owned convention center; and
(3) paying bonds used to finance activities described by Subdivision (1) or (2).
(d) For the purpose of the allocation of revenue under § 351.103, revenue described by Subsection (b) is not counted.
(e) Notwithstanding any other provision of this chapter, a municipality to which this section applies 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.
(f) 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.