| 6 | 4 | | AN ACT |
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| 7 | 5 | | relating to the use of municipal hotel occupancy tax revenue by |
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| 8 | 6 | | certain municipalities. |
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| 9 | 7 | | BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: |
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| 10 | 8 | | SECTION 1. Subchapter B, Chapter 351, Tax Code, is amended |
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| 11 | 9 | | by adding Section 351.1068 to read as follows: |
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| 12 | 10 | | Sec. 351.1068. ALLOCATION OF REVENUE FOR SPORTS FACILITIES |
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| 13 | 11 | | BY CERTAIN MUNICIPALITIES. (a) This section applies only to a |
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| 14 | 12 | | municipality that is the county seat of a county that: |
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| 15 | 13 | | (1) is located on the Texas-Mexico border; |
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| 16 | 14 | | (2) has a population of 500,000 or more; and |
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| 17 | 15 | | (3) is adjacent to two or more counties, each of which |
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| 18 | 16 | | has a population of 50,000 or more. |
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| 19 | 17 | | (b) A municipality to which this section applies may use |
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| 20 | 18 | | revenue derived from the municipal hotel occupancy tax to |
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| 21 | 19 | | construct, maintain, or expand a sporting-related facility or |
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| 22 | 20 | | sporting-related field on property owned by the municipality, |
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| 23 | 21 | | provided the municipality's sports facilities and fields have been |
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| 24 | 22 | | used in the preceding calendar year a combined total of more than 10 |
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| 25 | 23 | | times for district, state, regional, or national sports |
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| 26 | 24 | | tournaments, games, or events. |
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| 27 | 25 | | (c) A municipality to which this section applies that uses |
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| 28 | 26 | | revenue derived from the municipal hotel occupancy tax for a |
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| 29 | 27 | | purpose described by Subsection (b): |
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| 30 | 28 | | (1) shall determine the amount of municipal hotel |
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| 31 | 29 | | occupancy tax revenue generated for the municipality by hotel |
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| 32 | 30 | | activity attributable to the sports tournaments, games, and events |
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| 33 | 31 | | held on the newly constructed, enhanced, or upgraded facilities or |
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| 34 | 32 | | fields for 10 years after the date the construction, enhancements, |
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| 35 | 33 | | or upgrades are completed; and |
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| 36 | 34 | | (2) may not spend municipal hotel occupancy tax |
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| 37 | 35 | | revenue for the construction, enhancement, or upgrading of the |
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| 38 | 36 | | facilities or fields in a total amount that exceeds the amount of |
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| 39 | 37 | | area hotel revenue attributable to the construction, enhancements, |
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| 40 | 38 | | or upgrades. |
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| 41 | 39 | | (d) A municipality to which this section applies shall |
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| 42 | 40 | | reimburse from the municipality's general fund any expenditure in |
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| 43 | 41 | | excess of the amount of area hotel revenue attributable to the |
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| 44 | 42 | | construction, enhancements, or upgrades to the municipality's |
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| 45 | 43 | | hotel occupancy tax revenue fund. |
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| 46 | 44 | | (e) If a municipality to which this section applies uses |
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| 47 | 45 | | revenue derived from the municipal hotel occupancy tax for a |
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| 48 | 46 | | purpose described by Subsection (b), the municipality may not |
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| 49 | 47 | | reduce the percentage of revenue from that tax allocated for a |
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| 50 | 48 | | purpose described by Section 351.101(a)(3) to a percentage that is |
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| 51 | 49 | | less than the average percentage of that revenue allocated by the |
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| 52 | 50 | | municipality for that purpose during the 36-month period preceding |
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| 53 | 51 | | the date the municipality begins using the revenue for a purpose |
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| 54 | 52 | | described by Subsection (b). |
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| 55 | 53 | | SECTION 2. This Act takes effect immediately if it receives |
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| 56 | 54 | | a vote of two-thirds of all the members elected to each house, as |
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| 57 | 55 | | provided by Section 39, Article III, Texas Constitution. If this |
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| 58 | 56 | | Act does not receive the vote necessary for immediate effect, this |
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| 59 | 57 | | Act takes effect September 1, 2017. |
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