By: Toth H.B. No. 3947
A BILL TO BE ENTITLED
AN ACT
relating to the authority of certain special purpose districts to
use hotel occupancy tax revenue.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
SECTION 1. CHAPTER 11011, Special District Local Laws Code,
is amended by adding Section 11011.004 to read as follows:
Sec. 11011.004. PERFORMANCE ARTS VENUE CONSTRUCTION COSTS.
(a) The district may use hotel occupancy tax revenue for the
construction costs and for the payment of bonds for the
construction of a performing arts venue:
(1) Located on land owned by the district and within
1,000 feet of a convention center facility owned by the district;
and
(2) At which events will be primarily attended by
tourists who live more than 30 miles from the venue.
(b) If the district uses hotel occupancy tax revenue for a
purpose described by this subsection in an amount that exceeds 15
percent of the total hotel annual hotel occupancy tax revenue
collected by the district, the amount of hotel occupancy tax
revenue expended for a purpose described by this subsection in
excess of 15 percent of the total annual hotel occupancy tax revenue
collected by the district shall not exceed the amount of area hotel
revenue annually attributable to events at the venue.
(c) If the district uses hotel occupancy tax revenue for a
purpose described by this subsection, the district will not reduce
funding for the convention and visitors bureau to a percentage that
is less than the average percentage of that revenue allocated by the
district for that purpose during the 36-month period preceding the
date the district begins using the revenue for a purpose described
by this subsection.
(d)
Notwithstanding any other provision of this section, if
at least 99 percent of the territory of the district is
incorporated and the district is dissolved in the manner provided
by this Act, the district or municipality may not pledge or spend
hotel occupancy tax revenue for the purpose described by this
subsection, except to replay the district's debt and other
obligations existing before the incorporation with regard to the
performing arts center.
SECTION 2. 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.