| 1 | 1 | | By: Toth H.B. No. 4377 |
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| 2 | 2 | | |
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| 3 | 3 | | |
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| 4 | 4 | | A BILL TO BE ENTITLED |
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| 5 | 5 | | AN ACT |
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| 6 | 6 | | relating to the authority of certain special purpose districts to |
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| 7 | 7 | | use hotel occupancy tax revenue. |
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| 8 | 8 | | BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: |
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| 9 | 9 | | SECTION 1. CHAPTER 11011, Special District Local Laws Code, |
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| 10 | 10 | | is amended by adding Section 11011.004 to read as follows: |
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| 11 | 11 | | Sec. 11011.004. PERFORMANCE ARTS VENUE CONSTRUCTION COSTS. |
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| 12 | 12 | | (a) The district may use hotel occupancy tax revenue for the |
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| 13 | 13 | | construction costs and for the payment of bonds for the |
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| 14 | 14 | | construction of a performing arts venue: |
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| 15 | 15 | | (1) Located on land owned by the district and within |
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| 16 | 16 | | 1,000 feet of a convention center facility owned by the district; |
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| 17 | 17 | | and |
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| 18 | 18 | | (2) At which events will be primarily attended by |
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| 19 | 19 | | tourists who live more than 30 miles from the venue. |
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| 20 | 20 | | (b) If the district uses hotel occupancy tax revenue for a |
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| 21 | 21 | | purpose described by this subsection in an amount that exceeds 15 |
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| 22 | 22 | | percent of the total hotel annual hotel occupancy tax revenue |
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| 23 | 23 | | collected by the district, the amount of hotel occupancy tax |
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| 24 | 24 | | revenue expended for a purpose described by this subsection in |
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| 25 | 25 | | excess of 15 percent of the total annual hotel occupancy tax revenue |
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| 26 | 26 | | collected by the district shall not exceed the amount of area hotel |
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| 27 | 27 | | revenue annually attributable to events at the venue. |
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| 28 | 28 | | (c) |
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| 29 | 29 | | If the district uses hotel occupancy tax revenue for a |
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| 30 | 30 | | purpose described by this subsection, the district will not reduce |
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| 31 | 31 | | funding for the convention and visitors bureau to a percentage that |
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| 32 | 32 | | is less than the average percentage of that revenue allocated by the |
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| 33 | 33 | | district for that purpose during the 36-month period preceding the |
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| 34 | 34 | | date the district begins using the revenue for a purpose described |
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| 35 | 35 | | by this subsection. |
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| 36 | 36 | | (d) Notwithstanding any other provision of this section, if |
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| 37 | 37 | | at least 99 percent of the territory of the district is incorporated |
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| 38 | 38 | | and the district is dissolved in the manner provided by this Act, |
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| 39 | 39 | | the district or municipality may not pledge or spend hotel |
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| 40 | 40 | | occupancy tax revenue for the purpose described by this subsection, |
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| 41 | 41 | | except to replay the district's debt and other obligations existing |
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| 42 | 42 | | before the incorporation with regard to the performing arts center. |
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| 43 | 43 | | SECTION 2. This Act takes effect immediately if it receives |
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| 44 | 44 | | a vote of two-thirds of all the members elected to each house, as |
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| 45 | 45 | | provided by Section 39, Article III, Texas Constitution. If this |
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| 46 | 46 | | Act does not receive the vote necessary for immediate effect, this |
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| 47 | 47 | | Act takes effect September 1, 2019. |
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