84R22522 ADM-D
By: Nevárez H.B. No. 3772
Substitute the following for H.B. No. 3772:
By: Martinez Fischer C.S.H.B. No. 3772
A BILL TO BE ENTITLED
AN ACT
relating to the use of municipal hotel occupancy tax revenue to
construct, enhance, upgrade, and maintain arenas, sports
facilities, and fields in certain municipalities.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
SECTION 1. Section 351.101(a), Tax Code, as amended by
Chapters 541 (S.B. 551) and 546 (S.B. 585), Acts of the 83rd
Legislature, Regular Session, 2013, is reenacted and amended to
read as follows:
(a) Revenue from the municipal hotel occupancy tax may be
used only to promote tourism and the convention and hotel industry,
and that use is limited to the following:
(1) the acquisition of sites for and the construction,
improvement, enlarging, equipping, repairing, operation, and
maintenance of convention center facilities or visitor information
centers, or both;
(2) the furnishing of facilities, personnel, and
materials for the registration of convention delegates or
registrants;
(3) advertising and conducting solicitations and
promotional programs to attract tourists and convention delegates
or registrants to the municipality or its vicinity;
(4) the encouragement, promotion, improvement, and
application of the arts, including instrumental and vocal music,
dance, drama, folk art, creative writing, architecture, design and
allied fields, painting, sculpture, photography, graphic and craft
arts, motion pictures, radio, television, tape and sound recording,
and other arts related to the presentation, performance, execution,
and exhibition of these major art forms;
(5) historical restoration and preservation projects
or activities or advertising and conducting solicitations and
promotional programs to encourage tourists and convention
delegates to visit preserved historic sites or museums:
(A) at or in the immediate vicinity of convention
center facilities or visitor information centers; or
(B) located elsewhere in the municipality or its
vicinity that would be frequented by tourists and convention
delegates;
(6) for a municipality located in a county with a
population of one million or less, expenses, including promotion
expenses, directly related to a sporting event in which the
majority of participants are tourists who substantially increase
economic activity at hotels and motels within the municipality or
its vicinity;
(7) subject to Section 351.1076, the promotion of
tourism by the enhancement and upgrading of existing sports
facilities or fields, including facilities or fields for baseball,
softball, soccer, and flag football, if:
(A) the municipality owns the facilities or
fields;
(B) the municipality:
(i) has a population of 80,000 or more and
is located in a county that has a population of 350,000 or less;
(ii) has a population of at least 75,000 but
not more than 95,000 and is located in a county that has a
population of less than 200,000 but more than 160,000;
(iii) has a population of at least 36,000
but not more than 39,000 and is located in a county that has a
population of 100,000 or less that is not adjacent to a county with
a population of more than two million;
(iv) has a population of at least 13,000 but
less than 39,000 and is located in a county that has a population of
at least 200,000;
(v) has a population of at least 70,000 but
less than 90,000 and no part of which is located in a county with a
population greater than 150,000;
(vi) is located in a county that:
(a) is adjacent to the Texas-Mexico
border;
(b) has a population of at least
500,000; and
(c) does not have a municipality with
a population greater than 500,000;
(vii) has a population of at least 25,000
but not more than 26,000 and is located in a county that has a
population of 90,000 or less; or
[(viii) has a population of at least 7,500
and is located in a county that borders the Pecos River and that has
a population of not more than 15,000;]
(viii) is located in a county that has a
population of not more than 300,000 and in which a component
university of the University of Houston System is located; and
(C) the sports facilities and fields have been
used, in the preceding calendar year, a combined total of more than
10 times for district, state, regional, or national sports
tournaments;
(8) for a municipality with a population of at least
70,000 but less than 90,000, no part of which is located in a county
with a population greater than 150,000, the construction,
improvement, enlarging, equipping, repairing, operation, and
maintenance of a coliseum or multiuse facility;
(9) signage directing the public to sights and
attractions that are visited frequently by hotel guests in the
municipality;
(10) [the construction of a recreational venue in the
immediate vicinity of area hotels, if:
[(A) the municipality:
[(i) is a general-law municipality;
[(ii) has a population of not more than 900;
and
[(iii) does not impose an ad valorem tax;
[(B) not more than $100,000 of municipal hotel
occupancy tax revenue is used for the construction of the
recreational venue;
[(C) a majority of the hotels in the municipality
request the municipality to construct the recreational venue;
[(D) the recreational venue will be used
primarily by hotel guests; and
[(E) the municipality will pay for maintenance of
the recreational venue from the municipality's general fund;
[(11)] the construction, improvement, enlarging,
equipping, repairing, operation, and maintenance of a coliseum or
multiuse facility, if the municipality:
(A) has a population of at least 90,000 but less
than 120,000; and
(B) is located in two counties, at least one of
which contains the headwaters of the San Gabriel River; and
(11) [(12)] for a municipality with a population of
more than 175,000 but less than 225,000 that is located in two
counties, each of which has a population of less than 200,000, the
construction, improvement, enlarging, equipping, repairing,
operation, and maintenance of a coliseum or multiuse facility and
related infrastructure or a venue, as defined by Section
334.001(4), Local Government Code, that is related to the promotion
of tourism.
SECTION 2. Section 351.1066, Tax Code, is amended to read as
follows:
Sec. 351.1066. ALLOCATION OF REVENUE: CERTAIN
MUNICIPALITIES. (a) This section applies only to:
(1) a municipality with a population of at least 3,500
but less than 5,500 that is the county seat of a county with a
population of less than 50,000 that borders a county with a
population of more than 1.6 million; [and]
(2) a municipality with a population of at least 2,900
but less than 3,500 that is the county seat of a county with a
population of less than 22,000 that is bordered by the Trinity River
and includes a state park and a portion of a wildlife management
area;
(3) a municipality with a population of at least 7,500
that is located in a county that borders the Pecos River and that
has a population of not more than 15,000;
(4) a municipality with a population of not more than
5,000 that is located in a county through which the Frio River flows
and an interstate highway crosses, and that has a population of at
least 15,000; and
(5) a municipality with a population of not less than
7,500 that is located in a county with a population of not less than
40,000 but less than 250,000 that is adjacent to a county with a
population of less than 750.
(b) 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 for:
(1) [a business recruitment project to substantially
enhance hotel activity and encourage tourism; and
[(2)] the construction, enlarging, equipping,
improvement, maintenance, repairing, and operation of a
recreational facility to substantially enhance hotel activity and
encourage tourism; and
(2) the construction, enlarging, equipping,
improvement, maintenance, repairing, and operation of an arena used
for rodeos, livestock shows, and agricultural expositions to
substantially enhance hotel activity and encourage tourism.
(c) A municipality to which this section applies may not use
municipal hotel tax revenue to construct or expand a facility
described by Subsection (b) in an amount that would exceed the
amount of hotel revenue in the area that is likely to be reasonably
attributable to events held at that facility during the 15-year
period beginning on the date the construction or expansion is
completed.
(d) An independent analyst or consultant hired by the
municipality must make the projection required by Subsection (c).
(e) A municipality that uses municipal hotel occupancy tax
revenue under this section shall annually prepare a report that
describes:
(1) the events held during the preceding year at each
facility that received municipal hotel occupancy tax revenue from
the municipality during that year; and
(2) the number of hotel room nights, hotel revenue,
and municipal hotel occupancy tax revenue attributable to those
events.
SECTION 3. To the extent of any conflict, this Act prevails
over another Act of the 84th Legislature, Regular Session, 2015,
relating to nonsubstantive additions to and corrections in enacted
codes.
SECTION 4. This Act takes effect immediately if it receives
a vote of two-thirds of all the members elected to each house, as
provided by Section 39, Article III, Texas Constitution. If this
Act does not receive the vote necessary for immediate effect, this
Act takes effect September 1, 2015.