| 1 | 1 | | 85R6416 CBH-D |
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| 2 | 2 | | By: Giddings H.B. No. 2794 |
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| 3 | 3 | | |
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| 4 | 4 | | |
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| 5 | 5 | | A BILL TO BE ENTITLED |
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| 6 | 6 | | AN ACT |
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| 7 | 7 | | relating to the authority of certain municipalities to pledge |
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| 8 | 8 | | certain tax revenue for the payment of obligations related to hotel |
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| 9 | 9 | | projects. |
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| 10 | 10 | | BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: |
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| 11 | 11 | | SECTION 1. Section 351.102, Tax Code, is amended by |
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| 12 | 12 | | amending Subsections (b), (c), and (d) and adding Subsection (e) to |
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| 13 | 13 | | read as follows: |
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| 14 | 14 | | (b) An eligible central municipality, a municipality with a |
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| 15 | 15 | | population of 173,000 or more that is located within two or more |
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| 16 | 16 | | counties, a municipality with a population of 96,000 or more that is |
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| 17 | 17 | | located in a county that borders Lake Palestine or contains the |
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| 18 | 18 | | headwaters of the San Gabriel River, or a municipality with a |
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| 19 | 19 | | population of at least 99,900 but not more than 111,000 that is |
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| 20 | 20 | | located in a county with a population of at least 135,000 may pledge |
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| 21 | 21 | | the revenue derived from the tax imposed under this chapter from a |
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| 22 | 22 | | hotel project that is owned by or located on land owned by the |
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| 23 | 23 | | municipality or, in an eligible central municipality, by a |
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| 24 | 24 | | nonprofit corporation acting on behalf of an eligible central |
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| 25 | 25 | | municipality, and that is located within 1,000 feet of a convention |
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| 26 | 26 | | center facility owned by the municipality for the payment of bonds |
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| 27 | 27 | | or other obligations issued or incurred to acquire, lease, |
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| 28 | 28 | | construct, and equip the hotel and any facilities ancillary to the |
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| 29 | 29 | | hotel, including convention center entertainment-related |
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| 30 | 30 | | facilities, meeting spaces, restaurants, shops, street and water |
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| 31 | 31 | | and sewer infrastructure necessary for the operation of the hotel |
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| 32 | 32 | | or ancillary facilities, and parking facilities within 1,000 feet |
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| 33 | 33 | | of the hotel or convention center facility. For bonds or other |
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| 34 | 34 | | obligations issued under this subsection, an eligible central |
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| 35 | 35 | | municipality or a municipality described by this subsection or |
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| 36 | 36 | | Subsection (e) may only pledge revenue or other assets of the hotel |
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| 37 | 37 | | project benefiting from those bonds or other obligations. |
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| 38 | 38 | | (c) A municipality to which Subsection (b) or (e) applies is |
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| 39 | 39 | | entitled to receive all funds from a project described by this |
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| 40 | 40 | | section that an owner of a project may receive under Section |
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| 41 | 41 | | 151.429(h) of this code, or Section 2303.5055, Government Code, and |
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| 42 | 42 | | may pledge the funds for the payment of obligations issued under |
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| 43 | 43 | | this section. |
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| 44 | 44 | | (d) Except as provided by this subsection, an eligible |
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| 45 | 45 | | central municipality or another municipality described by |
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| 46 | 46 | | Subsection (b) or (e) that uses revenue derived from the tax imposed |
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| 47 | 47 | | under this chapter or funds received under Subsection (c) for a |
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| 48 | 48 | | hotel project described by Subsection (b) may not reduce the |
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| 49 | 49 | | percentage of revenue from the tax imposed under this chapter and |
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| 50 | 50 | | allocated for a purpose described by Section 351.101(a)(3) to a |
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| 51 | 51 | | percentage that is less than the average percentage of that revenue |
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| 52 | 52 | | allocated by the municipality for that purpose during the 36-month |
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| 53 | 53 | | period preceding the date the municipality begins using the revenue |
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| 54 | 54 | | or funds for the hotel project. This subsection does not apply to |
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| 55 | 55 | | an eligible central municipality described by Section |
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| 56 | 56 | | 351.001(7)(D). |
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| 57 | 57 | | (e) In addition to the municipalities described by |
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| 58 | 58 | | Subsection (b), that subsection also applies to a municipality with |
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| 59 | 59 | | a population of at least 45,000 but less than 45,080. |
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| 60 | 60 | | SECTION 2. This Act takes effect immediately if it receives |
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| 61 | 61 | | a vote of two-thirds of all the members elected to each house, as |
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| 62 | 62 | | provided by Section 39, Article III, Texas Constitution. If this |
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| 63 | 63 | | Act does not receive the vote necessary for immediate effect, this |
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| 64 | 64 | | Act takes effect September 1, 2017. |
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