86R11370 CJC-F
By: Hancock S.B. No. 1097
A BILL TO BE ENTITLED
AN ACT
relating to the authority of a municipality to pledge certain tax
revenue for the payment of obligations related to hotel projects.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
SECTION 1. Section 351.102, Tax Code, is amended by adding
Subsection (c-2) to read as follows:
(c-2) A municipality to which this subsection applies is
eligible to receive all funds from a hotel project described by
Subsection (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). The municipality may pledge
those funds for the payment of bonds or other obligations issued or
incurred to acquire, lease, construct, improve, enlarge, and equip
the hotel project. 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. The
comptroller shall deposit the funds in a separate suspense account
of the municipality outside the state treasury. The comptroller
may make a rebate, refund, or payment authorized under this
subsection without the necessity of an appropriation. The
comptroller shall rebate, refund, or pay to the municipality the
funds to which the municipality is entitled under this subsection
at least monthly. This subsection applies only to a municipality:
(1) that is an eligible central municipality under
Section 351.001(7)(A) with a population of less than 400,000; and
(2) in which two professional sports stadiums are
located, each with a seating capacity of at least 40,000 people.
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.