By: Nelson S.B. No. 748
A BILL TO BE ENTITLED
AN ACT
relating to the use of certain tax revenue to enhance and upgrade
convention center facilities, multipurpose arenas, multiuse
facilities, and related infrastructure in certain municipalities.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
SECTION 1. Subchapter B, Chapter 351, Tax Code, is amended
by adding Section 351.1015 to read as follows:
Sec. 351.1015. CERTAIN QUALIFIED PROJECTS. (a) In this
section:
(1) "Project financing zone" means an area within a
municipality:
(A) that the municipality by ordinance or by
agreement under Chapter 380, Local Government Code, designates as a
project financing zone;
(B) the boundaries of which are within three
miles of a qualified project; and
(C) the designation of which expires not later
than the 30th anniversary of the date of designation.
(2) "Qualified project" means the construction,
improvement, enlargement, and equipment of a convention center
facility, a multipurpose arena, a multiuse facility, and any
related infrastructure that is:
(A) located in a project financing zone on land
owned by a municipality or by the owner of a venue, as defined by
Section 334.001, Local Government Code;
(B) partially financed by private contributions
that equal not less than 40 percent of the project costs; and
(C) related to the promotion of tourism and the
convention and hotel industry.
(3) "Tax base" means the amount of funds available
under Subsection (e) from all hotels within the project financing
zone in the calendar year that the municipality designates the
zone, excluding funds received by the municipality for a hotel
project described by Section 351.102(b) existing on the date the
zone is designated.
(b) This section applies only to a qualified project located
in a municipality with a population of at least 650,000 but less
than 800,000.
(c) In addition to the uses provided by Section 351.101,
revenue from the municipal hotel occupancy tax may be used to fund a
qualified project.
(d) A municipality may pledge the revenue derived from the
tax imposed under this chapter from a hotel located in the project
financing zone for the payment of bonds or other obligations issued
or incurred to acquire, lease, construct, and equip the qualified
project.
(e) Notwithstanding other law, a municipality is entitled
to receive funds from hotels located in a project financing zone
that an owner of a qualified hotel project may receive under Section
151.429(h) of this code, or Section 2303.5055, Government Code, and
may pledge the funds for the payment of bonds or other obligations
described by Subsection (d). The amount the municipality is
entitled to receive under this subsection may not exceed the
difference between the tax base and the total amount the owners of
all included hotels may receive under those provisions. The funds
are not subject to the limitations provided by Section 151.429(h)
of this code or the provisions of Section 2303.5055, Government
Code, but shall be deposited and distributed as provided by those
sections.
(f) The funds received under Subsection (e) must be held in
trust by the comptroller in a separate suspense account for not more
than five years after the date of the first deposit following the
date the project financing zone is designated. When a qualified
project is commenced, the comptroller shall release the funds to
the municipality for which they were held in trust.
SECTION 2. Section 351.1065(a), Tax Code, is amended to
read as follows:
(a) An eligible central municipality shall use the amount of
revenue from the tax that is derived from the application of the tax
at a rate of more than seven percent of the cost of a room only for:
(1) the construction of an expansion of an existing
convention center facility; [and]
(2) a qualified project to which Section 351.1015
applies; and
(3) pledging payment of revenue bonds and revenue
refunding bonds issued under Subchapter A, Chapter 1504, Government
Code, for the construction or qualified project [of the expansion].
SECTION 3. This Act takes effect September 1, 2013.