| 1 | 1 | | 85R1956 ADM-D |
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| 2 | 2 | | By: Davis of Dallas H.B. No. 3731 |
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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 use of tax revenue by certain municipalities for the |
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| 8 | 8 | | payment of certain hotel-related bonds or other obligations. |
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| 9 | 9 | | BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: |
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| 10 | 10 | | SECTION 1. Section 351.102(b), Tax Code, is amended to read |
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| 11 | 11 | | as follows: |
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| 12 | 12 | | (b) An eligible central municipality, a municipality with a |
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| 13 | 13 | | population of 173,000 or more that is located within two or more |
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| 14 | 14 | | counties, a municipality with a population of 96,000 or more that is |
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| 15 | 15 | | located in a county that borders Lake Palestine or contains the |
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| 16 | 16 | | headwaters of the San Gabriel River, or a municipality with a |
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| 17 | 17 | | population of at least 99,900 but not more than 111,000 that is |
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| 18 | 18 | | located in a county with a population of at least 135,000 may pledge |
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| 19 | 19 | | the revenue derived from the tax imposed under this chapter from a |
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| 20 | 20 | | hotel project that is owned by or located on land owned by the |
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| 21 | 21 | | municipality or, in an eligible central municipality, by a |
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| 22 | 22 | | nonprofit corporation acting on behalf of an eligible central |
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| 23 | 23 | | municipality, and that is located within 1,000 feet of a convention |
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| 24 | 24 | | center facility owned by the municipality for the payment of bonds |
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| 25 | 25 | | or other obligations issued or incurred to acquire, lease, |
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| 26 | 26 | | construct, and equip the hotel and any facilities ancillary to the |
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| 27 | 27 | | hotel, including convention center entertainment-related |
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| 28 | 28 | | facilities, meeting spaces, restaurants, shops, street and water |
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| 29 | 29 | | and sewer infrastructure necessary for the operation of the hotel |
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| 30 | 30 | | or ancillary facilities, and parking facilities within 1,000 feet |
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| 31 | 31 | | of the hotel or convention center facility. A municipality with a |
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| 32 | 32 | | population of 173,000 or more that is located within two or more |
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| 33 | 33 | | counties may pledge for the payment of bonds or other obligations |
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| 34 | 34 | | described by this subsection the revenue derived from the tax |
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| 35 | 35 | | imposed under this chapter from a hotel project not owned by or |
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| 36 | 36 | | located on land owned by the municipality if the project is located |
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| 37 | 37 | | on land that is owned by the federal government and the project is |
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| 38 | 38 | | located within 1,000 feet of a convention center facility owned by |
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| 39 | 39 | | the municipality. For bonds or other obligations issued under this |
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| 40 | 40 | | subsection, an eligible central municipality or a municipality |
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| 41 | 41 | | described by this subsection may only pledge revenue or other |
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| 42 | 42 | | assets of the hotel project benefiting from those bonds or other |
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| 43 | 43 | | obligations. |
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| 44 | 44 | | SECTION 2. This Act takes effect immediately if it receives |
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| 45 | 45 | | a vote of two-thirds of all the members elected to each house, as |
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| 46 | 46 | | provided by Section 39, Article III, Texas Constitution. If this |
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| 47 | 47 | | Act does not receive the vote necessary for immediate effect, this |
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| 48 | 48 | | Act takes effect September 1, 2017. |
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