86R30641 SMT-F
By: Taylor S.B. No. 1307
(Paul)
Substitute the following for S.B. No. 1307: No.
A BILL TO BE ENTITLED
AN ACT
relating to the use of hotel occupancy tax revenue by certain
municipalities and the authority of certain municipalities to
pledge that revenue, and to receive and pledge certain other
revenue, for the payment of obligations related to hotel projects.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
SECTION 1. Section 351.101, Tax Code, is amended by adding
Subsection (r) to read as follows:
(r) In addition to the purposes provided by Subsections (a)
and (e), a municipality with a population of more than 10,000 that
is wholly located in a county with a population of four million or
more and that has a city hall located less than three miles from a
space center operated by an agency of the federal government may use
revenue from the municipal hotel occupancy tax for the
construction, improvement, enlarging, equipping, renovating,
repairing, operation, and maintenance of a venue that is related to
the promotion of tourism, including a hotel, resort, or convention
center facility located on land owned by the municipality or a
nonprofit corporation acting on behalf of the municipality.
Subject to Section 351.1069, the municipality may also use revenue
from the municipal hotel occupancy tax for related infrastructure,
as defined by Section 334.001, Local Government Code. In this
subsection, "venue" means a venue described by Section
334.001(4)(A) or (B), Local Government Code.
SECTION 2. Sections 351.102(b), (e), and (g), Tax Code, are
amended to read as follows:
(b) An eligible central municipality, a municipality with a
population of 173,000 or more that is located within two or more
counties, a municipality with a population of 96,000 or more that is
located in a county that borders Lake Palestine or contains the
headwaters of the San Gabriel River, [or] a municipality with a
population of at least 99,900 but not more than 111,000 that is
located in a county with a population of at least 135,000, or a
municipality described by Section 351.101(r) may pledge the revenue
derived from the tax imposed under this chapter from a hotel project
that is owned by or located on land owned by the municipality or, in
an eligible central municipality, by a nonprofit corporation acting
on behalf of an eligible central municipality, and that is located
within 1,000 feet of a convention center facility owned by the
municipality for the payment of bonds or other obligations issued
or incurred to acquire, lease, construct, and equip the hotel and
any facilities ancillary to the hotel, including convention center
entertainment-related facilities, meeting spaces, restaurants,
shops, street and water and sewer infrastructure necessary for the
operation of the hotel or ancillary facilities, and parking
facilities within 1,000 feet of the hotel or convention center
facility. A municipality with a population of 173,000 or more that
is located within two or more counties may pledge for the payment of
bonds or other obligations described by this subsection the revenue
derived from the tax imposed under this chapter from a hotel project
not owned by or located on land owned by the municipality if the
project is located on land that is owned by the federal government
and the project is located within 1,000 feet of a convention center
facility owned by the municipality. For bonds or other obligations
issued under this subsection, an eligible central municipality or a
municipality described by this subsection or Subsection (e) may
only pledge revenue or other assets of the hotel project benefiting
from those bonds or other obligations.
(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; and
(13) 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).
(g) A municipality to which this section applies may not
receive or pledge revenue or funds under Subsection (b) or (c) for a
hotel project unless the municipality enters into an agreement with
a person for the development of the hotel project before September
1, 2021 [2019].
SECTION 3. Subchapter B, Chapter 351, Tax Code, is amended
by adding Section 351.1069 to read as follows:
Sec. 351.1069. ALLOCATION OF REVENUE FOR CERTAIN
VENUE-RELATED INFRASTRUCTURE. (a) In this section:
(1) "Ancillary infrastructure" means related
infrastructure that:
(A) is located off the venue site; and
(B) is not for the exclusive use of the venue.
(2) "Related infrastructure" has the meaning assigned
by Section 334.001, Local Government Code.
(3) "Venue" means a venue described by Section
334.001(4)(A) or (B), Local Government Code, and any related
infrastructure other than ancillary infrastructure.
(4) "Venue-related hotel revenue" means the amount of
hotel revenue generated by hotel activity attributable to a venue.
(b) A municipality described by Section 351.101(r) that
uses revenue derived from the municipal hotel occupancy tax for
ancillary infrastructure:
(1) shall determine the amount of venue-related hotel
revenue generated during the five-year period following the date
the municipality issues a certificate of occupancy to the venue to
which the revenue is attributable; and
(2) may not spend municipal hotel occupancy tax
revenue for ancillary infrastructure in a total amount that exceeds
the amount determined under Subdivision (1).
(c) A municipality described by Section 351.101(r) shall
reimburse the municipality's hotel occupancy tax revenue fund from
another available source for the amount by which the expenditures
described by Subsection (b)(2) exceed the venue-related hotel
revenue determined under Subsection (b)(1).
SECTION 4. 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.