| 1 | 1 | | 86R11370 CJC-F |
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| 2 | 2 | | By: Hancock S.B. No. 1097 |
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| 3 | 3 | | |
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| 4 | 4 | | |
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| 5 | 5 | | A BILL TO BE ENTITLED |
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| 6 | 6 | | AN ACT |
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| 7 | 7 | | relating to the authority of a municipality to pledge certain tax |
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| 8 | 8 | | revenue for the payment of obligations related to hotel projects. |
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| 9 | 9 | | BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: |
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| 10 | 10 | | SECTION 1. Section 351.102, Tax Code, is amended by adding |
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| 11 | 11 | | Subsection (c-2) to read as follows: |
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| 12 | 12 | | (c-2) A municipality to which this subsection applies is |
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| 13 | 13 | | eligible to receive all funds from a hotel project described by |
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| 14 | 14 | | Subsection (b) that an owner of a project may receive under Section |
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| 15 | 15 | | 151.429(h) of this code or Section 2303.5055, Government Code, and |
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| 16 | 16 | | all tax revenue collected under Chapter 183 by or from all |
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| 17 | 17 | | permittees at the hotel project, excluding revenue disbursed by the |
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| 18 | 18 | | comptroller under Section 183.051(b). The municipality may pledge |
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| 19 | 19 | | those funds for the payment of bonds or other obligations issued or |
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| 20 | 20 | | incurred to acquire, lease, construct, improve, enlarge, and equip |
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| 21 | 21 | | the hotel project. Notwithstanding any other law, the municipality |
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| 22 | 22 | | is entitled to receive the funds for a period of 30 years beginning |
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| 23 | 23 | | on the date the hotel project is open for initial occupancy. The |
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| 24 | 24 | | comptroller shall deposit the funds in a separate suspense account |
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| 25 | 25 | | of the municipality outside the state treasury. The comptroller |
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| 26 | 26 | | may make a rebate, refund, or payment authorized under this |
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| 27 | 27 | | subsection without the necessity of an appropriation. The |
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| 28 | 28 | | comptroller shall rebate, refund, or pay to the municipality the |
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| 29 | 29 | | funds to which the municipality is entitled under this subsection |
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| 30 | 30 | | at least monthly. This subsection applies only to a municipality: |
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| 31 | 31 | | (1) that is an eligible central municipality under |
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| 32 | 32 | | Section 351.001(7)(A) with a population of less than 400,000; and |
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| 33 | 33 | | (2) in which two professional sports stadiums are |
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| 34 | 34 | | located, each with a seating capacity of at least 40,000 people. |
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| 35 | 35 | | SECTION 2. This Act takes effect immediately if it receives |
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| 36 | 36 | | a vote of two-thirds of all the members elected to each house, as |
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| 37 | 37 | | provided by Section 39, Article III, Texas Constitution. If this |
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| 38 | 38 | | Act does not receive the vote necessary for immediate effect, this |
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| 39 | 39 | | Act takes effect September 1, 2019. |
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