By: Seliger S.B. No. 1207
(In the Senate - Filed February 27, 2009; March 13, 2009,
read first time and referred to Committee on Economic Development;
April 8, 2009, reported adversely, with favorable Committee
Substitute by the following vote: Yeas 5, Nays 0; April 8, 2009,
sent to printer.)
COMMITTEE SUBSTITUTE FOR S.B. No. 1207 By: Watson
A BILL TO BE ENTITLED
AN ACT
relating to the use of municipal hotel occupancy tax revenue to
finance a convention center hotel in certain municipalities.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
SECTION 1. Section 351.102, Tax Code, is amended by
amending Subsection (b) and adding Subsection (b-1) to read as
follows:
(b) An eligible central municipality or a municipality with
a population of 173,000 or more that is located within two counties
may pledge the revenue derived from the tax imposed under this
chapter from a hotel project that is owned by or located on land
owned by the municipality or, in an eligible central municipality,
by a nonprofit corporation acting on behalf of an eligible central
municipality, and that is located within 1,000 feet of a convention
center facility owned by the municipality for the payment of bonds
or other obligations issued or incurred to acquire, lease,
construct, and equip the hotel and any facilities ancillary to the
hotel, including shops and parking facilities. For bonds or other
obligations issued under this subsection, an eligible central
municipality or a municipality with a population of 173,000 or more
that is located within two counties may only pledge revenue or other
assets of the hotel project benefiting from those bonds or other
obligations.
(b-1) A municipality with a population of 173,000 or more
that is located within two counties and is not an eligible central
municipality may not pledge revenue under Subsection (b) in
relation to a particular hotel project after the earlier of:
(1) the 20th anniversary of the date the municipality
first pledged the revenue to the hotel project; or
(2) the date the revenue pledged to the hotel project
equals 40 percent of the hotel project's total construction cost.
SECTION 2. Subsection (b), Section 1504.001, Government
Code, is amended to read as follows:
(b) An eligible central municipality, as defined by Section
351.001, Tax Code, or a municipality with a population of 173,000 or
more that is located within two counties may establish, acquire,
lease as lessee or lessor, construct, improve, enlarge, equip,
repair, operate, or maintain a hotel, and any facilities ancillary
to the hotel, including shops and parking facilities, that are
owned by or located on land owned by the municipality or by a
nonprofit corporation acting on behalf of the municipality, and
that is located within 1,000 feet of a convention center facility
owned by the municipality.
SECTION 3. Subsection (b), Section 1504.002, Government
Code, is amended to read as follows:
(b) An eligible central municipality, as defined by Section
351.001, Tax Code, or a municipality with a population of 173,000 or
more that is located within two counties by ordinance may issue
bonds or incur other obligations to acquire, lease, construct, or
equip a facility described by Section 1504.001(b).
SECTION 4. This Act takes effect September 1, 2009.
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