85R19324 GRM-F
By: Canales H.B. No. 2526
Substitute the following for H.B. No. 2526:
By: Murr C.S.H.B. No. 2526
A BILL TO BE ENTITLED
AN ACT
relating to the use of municipal hotel occupancy tax revenue by
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 351.1068 to read as follows:
Sec. 351.1068. ALLOCATION OF REVENUE FOR SPORTS FACILITIES
BY CERTAIN MUNICIPALITIES. (a) This section applies only to a
municipality that is the county seat of a county that:
(1) is located on the Texas-Mexico border;
(2) has a population of 500,000 or more; and
(3) is adjacent to two or more counties, each of which
has a population of 50,000 or more.
(b) A municipality to which this section applies may use
revenue derived from the municipal hotel occupancy tax to
construct, maintain, or expand a sporting-related facility or
sporting-related field on property owned by the municipality,
provided the municipality's 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, games, or events.
(c) A municipality to which this section applies that uses
revenue derived from the municipal hotel occupancy tax for a
purpose described by Subsection (b):
(1) shall determine the amount of municipal hotel
occupancy tax revenue generated for the municipality by hotel
activity attributable to the sports tournaments, games, and events
held on the newly constructed, enhanced, or upgraded facilities or
fields for 10 years after the date the construction, enhancements,
or upgrades are completed; and
(2) may not spend municipal hotel occupancy tax
revenue for the construction, enhancement, or upgrading of the
facilities or fields in a total amount that exceeds the amount of
area hotel revenue attributable to the construction, enhancements,
or upgrades.
(d) A municipality to which this section applies shall
reimburse from the municipality's general fund any expenditure in
excess of the amount of area hotel revenue attributable to the
construction, enhancements, or upgrades to the municipality's
hotel occupancy tax revenue fund.
(e) If a municipality to which this section applies uses
revenue derived from the municipal hotel occupancy tax for a
purpose described by Subsection (b), the municipality may not
reduce the percentage of revenue from that tax allocated for a
purpose described by Section 351.101(a)(3) to a percentage that is
less than the average percentage of that revenue allocated by the
municipality for that purpose during the 36-month period preceding
the date the municipality begins using the revenue for a purpose
described by Subsection (b).
SECTION 2. 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, 2017.