| 4 | 6 | | AN ACT |
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| 5 | 7 | | relating to the use of municipal hotel occupancy tax revenue by |
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| 6 | 8 | | certain municipalities. |
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| 7 | 9 | | BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: |
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| 8 | 10 | | SECTION 1. Subchapter B, Chapter 351, Tax Code, is amended |
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| 9 | 11 | | by adding Section 351.10711 to read as follows: |
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| 10 | 12 | | Sec. 351.10711. ALLOCATION OF REVENUE FOR MAINTENANCE, |
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| 11 | 13 | | ENHANCEMENT, AND UPGRADE OF SPORTS FACILITIES AND FIELDS BY CERTAIN |
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| 12 | 14 | | MUNICIPALITIES. (a) This section applies only to a municipality |
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| 13 | 15 | | that is the county seat of a county that has a population of more |
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| 14 | 16 | | than 10,000 and contains a portion of Mound Lake. |
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| 15 | 17 | | (b) In addition to other authorized uses, a municipality to |
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| 16 | 18 | | which this section applies may use revenue derived from the tax |
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| 17 | 19 | | imposed under this chapter to promote tourism by maintaining, |
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| 18 | 20 | | enhancing, or upgrading sports facilities or fields, provided that: |
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| 19 | 21 | | (1) the requirements of Section 351.1076 are met if |
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| 20 | 22 | | the municipality uses the revenue to enhance or upgrade a sports |
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| 21 | 23 | | facility or field; |
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| 22 | 24 | | (2) the municipality owns the sports facilities or |
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| 23 | 25 | | fields; and |
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| 24 | 26 | | (3) the sports facilities and fields have been used, |
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| 25 | 27 | | in the preceding calendar year, a combined total of more than 10 |
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| 26 | 28 | | times for district, state, regional, or national sports |
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| 27 | 29 | | tournaments. |
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| 28 | 30 | | (c) A municipality that uses revenue derived from the tax |
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| 29 | 31 | | imposed under this chapter as authorized by Subsection (b) may not |
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| 30 | 32 | | reduce the percentage of revenue from the tax imposed under this |
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| 31 | 33 | | chapter and allocated for a purpose described by Section |
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| 32 | 34 | | 351.101(a)(3) to a percentage that is less than the average |
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| 33 | 35 | | percentage of that revenue allocated by the municipality for that |
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| 34 | 36 | | purpose during the 36-month period preceding the date the |
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| 35 | 37 | | municipality begins using the revenue as authorized by Subsection |
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| 36 | 38 | | (b). |
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| 37 | 39 | | SECTION 2. Section 351.1076(a), Tax Code, is amended to |
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| 38 | 40 | | read as follows: |
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| 39 | 41 | | (a) A municipality that spends municipal hotel occupancy |
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| 40 | 42 | | tax revenue for the enhancement and upgrading of existing sports |
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| 41 | 43 | | facilities or fields as authorized by Section 351.101(a)(7) or |
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| 42 | 44 | | 351.10711: |
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| 43 | 45 | | (1) shall determine the amount of municipal hotel |
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| 44 | 46 | | occupancy tax revenue generated for the municipality by hotel |
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| 45 | 47 | | activity attributable to the sports events and tournaments held on |
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| 46 | 48 | | the enhanced or upgraded facilities or fields for five years after |
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| 47 | 49 | | the date the enhancements and upgrades are completed; and |
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| 48 | 50 | | (2) may not spend hotel occupancy tax revenue for the |
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| 49 | 51 | | enhancement and upgrading of the facilities or fields in a total |
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| 50 | 52 | | amount that exceeds the amount of area hotel revenue attributable |
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| 51 | 53 | | to the enhancements and upgrades. |
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| 52 | 54 | | SECTION 3. This Act takes effect immediately if it receives |
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| 53 | 55 | | a vote of two-thirds of all the members elected to each house, as |
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| 54 | 56 | | provided by Section 39, Article III, Texas Constitution. If this |
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| 55 | 57 | | Act does not receive the vote necessary for immediate effect, this |
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| 56 | 58 | | Act takes effect September 1, 2017. |
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| 57 | | - | ______________________________ ______________________________ |
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| 58 | | - | President of the Senate Speaker of the House |
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| 59 | | - | I hereby certify that S.B. No. 2056 passed the Senate on |
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| 60 | | - | May 3, 2017, by the following vote: Yeas 25, Nays 6. |
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| 61 | | - | ______________________________ |
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| 62 | | - | Secretary of the Senate |
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| 63 | | - | I hereby certify that S.B. No. 2056 passed the House on |
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| 64 | | - | May 24, 2017, by the following vote: Yeas 136, Nays 10, two |
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| 65 | | - | present not voting. |
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| 66 | | - | ______________________________ |
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| 67 | | - | Chief Clerk of the House |
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| 68 | | - | Approved: |
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| 69 | | - | ______________________________ |
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| 70 | | - | Date |
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| 71 | | - | ______________________________ |
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| 72 | | - | Governor |
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