86R28137 GRM-F
By: Flynn H.B. No. 2665
Substitute the following for H.B. No. 2665:
By: Blanco C.S.H.B. No. 2665
A BILL TO BE ENTITLED
AN ACT
relating to the authority of certain municipalities to receive
certain tax revenue or pledge that revenue for the payment of
obligations related to projects involving hotels.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
SECTION 1. Section 351.102(e), Tax Code, is amended to read
as follows:
(e) In addition to the municipalities described by
Subsection (b), that subsection also applies to:
(1) a municipality with a population of at least
110,000 but not more than 135,000 at least part of which is located
in a county with a population of not more than 135,000;
(2) a municipality with a population of at least 9,000
but not more than 10,000 that is located in two counties, each of
which has a population of at least 662,000 and a southern border
with a county with a population of 2.3 million or more;
(3) a municipality with a population of at least
200,000 but not more than 300,000 that contains a component
institution of the Texas Tech University System;
(4) a municipality with a population of at least
95,000 that borders Lake Lewisville;
(5) a municipality that:
(A) contains a portion of Cedar Hill State Park;
(B) has a population of more than 45,000;
(C) is located in two counties, one of which has a
population of more than two million and one of which has a
population of more than 149,000; and
(D) has adopted a capital improvement plan for
the construction or expansion of a convention center facility;
(6) a municipality with a population of less than
6,000 that:
(A) is located in two counties each with a
population of 600,000 or more that are both adjacent to a county
with a population of two million or more;
(B) has full-time police and fire departments;
and
(C) has adopted a capital improvement plan for
the construction or expansion of a convention center facility;
(7) a municipality with a population of at least
56,000 that:
(A) borders Lake Ray Hubbard; and
(B) is located in two counties, one of which has a
population of less than 80,000;
(8) a municipality with a population of more than
83,000, that borders Clear Lake, and that is primarily located in a
county with a population of less than 300,000;
(9) a municipality with a population of less than
2,000 that:
(A) is located adjacent to a bay connected to the
Gulf of Mexico;
(B) is located in a county with a population of
290,000 or more that is adjacent to a county with a population of
four million or more; and
(C) has a boardwalk on the bay;
(10) a municipality with a population of 75,000 or
more that:
(A) is located wholly in one county with a
population of 575,000 or more that is adjacent to a county with a
population of four million or more; and
(B) has adopted a capital improvement plan for
the construction or expansion of a convention center facility;
(11) a municipality with a population of less than
75,000 that is located in three counties, at least one of which has
a population of at least four million; [and]
(12) an eligible coastal municipality with a
population of more than 3,000 but less than 5,000;
(13) a municipality with a population of less than
10,000 that:
(A) contains a component university of The Texas
A&M University System; and
(B) is located in a county adjacent to a county
that borders Oklahoma;
(14) a municipality with a population of 13,000 or
more that:
(A) is located on an international border; and
(B) is located in a county:
(i) with a population of less than 400,000;
and
(ii) in which is located at least one World
Birding Center site;
(15) a municipality with a population of 4,000 or more
that:
(A) is located on an international border; and
(B) is located not more than five miles from a
state historic site that serves as a visitor center for a state park
that contains 300,000 or more acres of land;
(16) a municipality with a population of 90,000 or
more but less than 150,000 that:
(A) is located in three counties; and
(B) contains a branch campus of a component
institution of the University of Houston System;
(17) a municipality that is:
(A) primarily located in a county with a
population of four million or more; and
(B) connected by a bridge to a municipality
described by Subdivision (9);
(18) a municipality with a population of 20,000 or
more but less than 25,000 that:
(A) contains a portion of Mustang Bayou; and
(B) is wholly located in a county with a
population of less than 500,000;
(19) a municipality with a population of 70,000 or
more but less than 85,000 that is located in two counties, one of
which has a population of four million or more and the other of
which has a population of less than 50,000;
(20) a municipality with a population of 10,000 or
more that:
(A) is wholly located in a county with a
population of four million or more; and
(B) has a city hall located less than three miles
from a space center operated by an agency of the federal government;
(21) a municipality that is the county seat of a
county:
(A) through which the Pedernales River flows; and
(B) in which the birthplace of a president of the
United States is located;
(22) a municipality that contains a portion of U.S.
Highway 79 and State Highway 130;
(23) a municipality with a population of 48,000 or
more but less than 95,000 that is located in two counties, one of
which has a population of 900,000 or more but less than 1.7 million;
(24) a municipality with a population of less than
25,000 that contains a museum of western American art;
(25) a municipality with a population of 50,000 or
more that is the county seat of a county that contains a portion of
the Sam Houston National Forest;
(26) a municipality with a population of less than
25,000 that:
(A) contains a cultural heritage museum; and
(B) is located in a county that borders the
United Mexican States and the Gulf of Mexico;
(27) a municipality that is the county seat of a county
that:
(A) has a population of 115,000 or more;
(B) is adjacent to a county with a population of
1.8 million or more; and
(C) hosts an annual peach festival;
(28) a municipality that is the county seat of a county
that:
(A) has a population of 585,000 or more; and
(B) is adjacent to a county with a population of
four million or more; and
(29) a municipality with a population of less than
6,100 that:
(A) is located in two counties, each of which has
a population of 600,000 or more but less than two million; and
(B) hosts an annual Cajun Festival.
SECTION 2. Subchapter B, Chapter 351, Tax Code, is amended
by adding Section 351.1021 to read as follows:
Sec. 351.1021. PLEDGE FOR BONDS BY CERTAIN MUNICIPALITIES.
(a) In this section:
(1) "Eligible municipality" means a municipality
described by Section 351.102(e)(9).
(2) "Multipurpose convention center facility" means a
facility that has been or will be constructed and that:
(A) is used to host conventions, meetings, live
performances, and sporting events;
(B) is:
(i) leased by an eligible municipality; or
(ii) wholly owned by an eligible
municipality, and none of which is or may be owned through an
undivided common interest;
(C) is not located in a hotel or other structure;
(D) has at least 10,000 square feet of continuous
and usable meeting space; and
(E) is configurable to simultaneously
accommodate multiple events described by Paragraph (A) of different
sizes and types.
(3) "Multipurpose convention center facility project"
means a project that consists of a hotel owned by an eligible
municipality or another person and a multipurpose convention center
facility to be acquired, constructed, equipped, or leased by the
municipality, the nearest exterior wall of which is located not
more than 2,500 feet from the nearest exterior wall of the hotel. A
multipurpose convention center facility project may include:
(A) each new or existing business located in the
municipality, regardless of who owns the business or the property
on which the business is located, the nearest exterior wall of which
is located not more than 2,500 feet from the nearest exterior wall
of the multipurpose convention center facility or the hotel that is
part of the project; and
(B) any parking area or structure located in the
municipality, regardless of who owns the area or structure or the
property on which the area or structure is located, the nearest
property line of which is located not more than two miles from the
nearest exterior wall of the multipurpose convention center
facility.
(b) An eligible municipality or local government
corporation acting on behalf of an eligible municipality is
entitled to receive all funds from a multipurpose convention center
facility project that the owner of a project could receive under
Section 151.429(h) of this code or Section 2303.5055, Government
Code, if a project for purposes of those provisions included a
multipurpose convention center facility project.
(c) An eligible municipality may pledge the funds to which
the municipality is entitled as provided by Subsection (b) for the
payment of bonds or other obligations issued or incurred to
acquire, lease, construct, or equip the multipurpose convention
center facility project.
(d) The comptroller shall deposit the funds to which an
eligible municipality is entitled as provided by Subsection (b) in
a separate suspense account of the municipality outside the state
treasury.
(e) The comptroller may make a rebate, refund, or payment
authorized under this section without the necessity of an
appropriation. The comptroller shall rebate, refund, or pay to the
eligible municipality the funds to which the municipality is
entitled as provided by Subsection (b) at least quarterly.
SECTION 3. Subchapter B, Chapter 351, Tax Code, is amended
by adding Section 351.1022 to read as follows:
Sec. 351.1022. PLEDGE FOR BONDS BY CERTAIN MUNICIPALITIES
WITH SPORTS STADIUMS. (a) This section applies only to a
municipality with a population of 350,000 or more but less than
450,000 in which two professional sports stadiums are located, each
of which:
(A) has a seating capacity of at least 40,000
people; and
(B) was approved by the voters of the
municipality as a sports and community venue project under Chapter
334, Local Government Code.
(b) A municipality to which this section applies is entitled
to receive all funds from a hotel project described by Section
351.102(b) that an owner of a project may receive under Section
151.429(h) of this code or Section 2303.5055, Government Code, and
all tax revenue collected under Chapter 183 by or from all
permittees at the hotel project, excluding revenue disbursed by the
comptroller under Section 183.051(b).
(c) The municipality may pledge the funds to which the
municipality is entitled as provided by Subsection (b) for the
payment of bonds or other obligations issued or incurred to
acquire, lease, construct, improve, enlarge, and equip the hotel
project.
(d) Notwithstanding any other law, the municipality is
entitled to receive the funds for a period of 30 years beginning on
the date the hotel project is open for initial occupancy.
(e) The comptroller shall deposit the funds to which the
municipality is entitled as provided by Subsection (b) in a
separate suspense account of the municipality outside the state
treasury.
(f) The comptroller may make a rebate, refund, or payment
authorized under this section without the necessity of an
appropriation. The comptroller shall rebate, refund, or pay to the
municipality the funds to which the municipality is entitled as
provided by Subsection (b) at least monthly.
SECTION 4. Section 351.102(g), Tax Code, is repealed.
SECTION 5. 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, 2019.