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Texas Senate Bill SB2194

Texas 2019 - 86th Regular

Texas Senate Bill SB2194 Compare Versions

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1-86R31351 TJB-F
21 By: Lucio S.B. No. 2194
3- (Lucio III)
4- Substitute the following for S.B. No. 2194: No.
52
63
74 A BILL TO BE ENTITLED
85 AN ACT
9- relating to the authority of certain municipalities to use certain
10- tax revenue for hotel and convention center projects and other
11- qualified projects.
6+ relating to the municipal hotel occupancy tax.
127 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
13- SECTION 1. Section 351.001, Tax Code, is amended by adding
14- Subdivision (12) to read as follows:
15- (12) "Retail establishment" means an establishment
16- engaged in activities described by North American Industry
17- Classification System subsector code 442, 443, 445, 446, 448, 451,
18- 452, or 453.
19- SECTION 2. Sections 351.102(b), (c), and (e), Tax Code, are
20- amended to read as follows:
21- (b) A municipality described by Subsection (e) [An eligible
22- central municipality, a municipality with a population of 173,000
23- or more that is located within two or more counties, a municipality
24- with a population of 96,000 or more that is located in a county that
25- borders Lake Palestine or contains the headwaters of the San
26- Gabriel River, or a municipality with a population of at least
27- 99,900 but not more than 111,000 that is located in a county with a
28- population of at least 135,000] may pledge the revenue derived from
29- the tax imposed under this chapter from a hotel project that is
30- owned by or located on land owned by the municipality or, in an
31- eligible central municipality, by a nonprofit corporation acting on
32- behalf of an eligible central municipality, and that is located
33- within 1,000 feet of a qualified convention center facility, as
34- defined by Section 351.151, owned by the municipality for the
35- payment of bonds or other obligations issued or incurred to
36- acquire, lease, construct, and equip the hotel and any facilities
37- ancillary to the hotel, including convention center
38- entertainment-related facilities, [meeting spaces,] restaurants,
39- retail establishments [shops], street and water and sewer
40- infrastructure necessary for the operation of the hotel or
41- ancillary facilities, and parking facilities within 1,000 feet of
42- the hotel or convention center facility. [A municipality with a
43- population of 173,000 or more that is located within two or more
44- counties may pledge for the payment of bonds or other obligations
45- described by this subsection the revenue derived from the tax
46- imposed under this chapter from a hotel project not owned by or
47- located on land owned by the municipality if the project is located
48- on land that is owned by the federal government and the project is
49- located within 1,000 feet of a convention center facility owned by
50- the municipality.] For bonds or other obligations issued under
51- this subsection, [an eligible central municipality or] a
52- municipality described by [this subsection or] Subsection (e) may
53- only pledge revenue or other assets of the hotel project benefiting
54- from those bonds or other obligations.
55- (c) A [Except as provided by this subsection, a]
56- municipality described by [to which] Subsection [(b) or] (e)
57- [applies] is entitled to receive all funds from a project described
58- by Subsection (b) that an owner of a project may receive under
59- Section 151.429(h) of this code, or Section 2303.5055, Government
60- Code, and may pledge the funds for the payment of obligations issued
61- under this section, but only if[. A municipality described by
62- Subsection (e) is not entitled to receive funds from a project under
63- this subsection unless] the municipality has pledged the revenue
64- derived from the tax imposed under this chapter from the project for
65- the payment of bonds or other obligations issued or incurred for the
66- project.
67- (e) Subsection (b) applies only [In addition to the
68- municipalities described by Subsection (b), that subsection also
69- applies] to:
70- (1) a municipality with a population of two million or
71- more;
72- (2) a municipality with a population of 700,000 or
73- more but less than 1.3 million;
74- (3) a municipality with a population of 350,000 or
75- more but less than 450,000 in which two professional sports
76- stadiums are located, each of which:
77- (A) has a seating capacity of at least 40,000
78- people; and
79- (B) was approved by the voters of the
80- municipality as a sports and community venue project under Chapter
81- 334, Local Government Code; and
82- (4) [at least 110,000 but not more than 135,000 at
83- least part of which is located in a county with a population of not
84- more than 135,000;
85- [(2) a municipality with a population of at least
86- 9,000 but not more than 10,000 that is located in two counties, each
87- of which has a population of at least 662,000 and a southern border
88- with a county with a population of 2.3 million or more;
89- [(3) a municipality with a population of at least
90- 200,000 but not more than 300,000 that contains a component
91- institution of the Texas Tech University System;
92- [(4) a municipality with a population of at least
93- 95,000 that borders Lake Lewisville;
94- [(5) a municipality that:
95- [(A) contains a portion of Cedar Hill State Park;
96- [(B) has a population of more than 45,000;
97- [(C) is located in two counties, one of which has
98- a population of more than two million and one of which has a
99- population of more than 149,000; and
100- [(D) has adopted a capital improvement plan for
101- the construction or expansion of a convention center facility;
102- [(6) a municipality with a population of less than
103- 6,000 that:
104- [(A) is located in two counties each with a
105- population of 600,000 or more that are both adjacent to a county
106- with a population of two million or more;
107- [(B) has full-time police and fire departments;
8+ SECTION 1. Section 351.001(7), Tax Code, is amended to read
9+ as follows:
10+ (7) "Eligible central municipality" means:
11+ (A) a municipality with a population of more than
12+ 140,000 but less than 1.5 million that is located in a county with a
13+ population of one million or more and that has adopted a capital
14+ improvement plan for the construction or expansion of a convention
15+ center facility;
16+ (B) a municipality with a population of 250,000
17+ or more that:
18+ (i) is located wholly or partly on a barrier
19+ island that borders the Gulf of Mexico;
20+ (ii) is located in a county with a
21+ population of 300,000 or more; and
22+ (iii) has adopted a capital improvement
23+ plan to expand an existing convention center facility;
24+ (C) a municipality with a population of 116,000
25+ or more that:
26+ (i) is located in two counties both of which
27+ have a population of 660,000 or more; and
28+ (ii) has adopted a capital improvement plan
29+ for the construction or expansion of a convention center facility;
30+ (D) a municipality with a population of less than
31+ 50,000 that contains a general academic teaching institution that
32+ is not a component institution of a university system, as those
33+ terms are defined by Section 61.003, Education Code; [or]
34+ (E) a municipality with a population of 640,000
35+ or more that:
36+ (i) is located on an international border;
10837 and
109- [(C) has adopted a capital improvement plan for
110- the construction or expansion of a convention center facility;
111- [(7) a municipality with a population of at least
112- 56,000 that:
113- [(A) borders Lake Ray Hubbard; and
114- [(B) is located in two counties, one of which has
115- a population of less than 80,000;
116- [(8) a municipality with a population of more than
117- 83,000, that borders Clear Lake, and that is primarily located in a
118- county with a population of less than 300,000;
119- [(9)] a municipality with a population of less than
120- 2,000 that:
121- (A) is located adjacent to a bay connected to the
122- Gulf of Mexico;
123- (B) is located in a county with a population of
124- 290,000 or more that is adjacent to a county with a population of
125- four million or more; and
126- (C) has a boardwalk on the bay[;
127- [(10) a municipality with a population of 75,000 or
128- more that:
129- [(A) is located wholly in one county with a
130- population of 575,000 or more that is adjacent to a county with a
131- population of four million or more; and
132- [(B) has adopted a capital improvement plan for
133- the construction or expansion of a convention center facility;
134- [(11) a municipality with a population of less than
135- 75,000 that is located in three counties, at least one of which has
136- a population of at least four million; and
137- [(12) an eligible coastal municipality with a
138- population of more than 3,000 but less than 5,000].
139- SECTION 3. Section 351.102(d), Tax Code, is redesignated as
140- Section 351.1063, Tax Code, and amended to read as follows:
141- Sec. 351.1063. ALLOCATION OF REVENUE FOR ADVERTISING AND
142- PROMOTION: CERTAIN MUNICIPALITIES WITH CERTAIN PROJECTS. (a) This
143- section applies only to a municipality described by Section
144- 351.102(e) or 351.152, other than an eligible central municipality
145- described by Section 351.001(7)(D).
146- (b) A [(d) Except as provided by this subsection, an
147- eligible central] municipality [or another municipality described
148- by Subsection (b) or (e)] that uses revenue derived from the tax
149- imposed under this chapter or funds received under Section
150- 351.102(c), 351.156, or 351.157 [Subsection (c)] for a hotel
151- project under Section 351.102(b) or a qualified project under
152- Section 351.155 [described by Subsection (b)] may not reduce the
153- percentage of revenue from the tax imposed under this chapter and
154- allocated for a purpose described by Section 351.101(a)(3) to a
155- percentage that is less than the average percentage of that revenue
156- allocated by the municipality for that purpose during the 36-month
157- period preceding the date the municipality begins using the revenue
158- or funds for the hotel project. [This subsection does not apply to
159- an eligible central municipality described by Section
160- 351.001(7)(D).]
161- SECTION 4. Section 351.102(f), Tax Code, is redesignated as
162- Section 351.1064, Tax Code, and amended to read as follows:
163- Sec. 351.1064. ALLOCATION OF REVENUE FOR CERTAIN SPORTING
164- EVENT EXPENSES: CERTAIN MUNICIPALITIES WITH QUALIFIED PROJECT. (a)
165- This section applies only to a municipality with a population of
166- 200,000 or more but less than 300,000 that contains a component
167- institution of the Texas Tech University System.
168- (b) [(f)] A municipality [described by Subsection (e)(3)]
169- that uses revenue derived from the tax imposed under this chapter or
170- funds received under Section 351.156 [Subsection (c)] for repayment
171- of bonds, [or] other obligations, or contractual obligations issued
172- or incurred for a qualified [hotel] project under Section 351.155
173- [described by Subsection (b)] may not, in a fiscal year that begins
174- after [construction of] the qualified [hotel] project is complete
175- and during any part of which the bonds, [or] other obligations, or
176- contractual obligations are outstanding, reduce the amount of
177- revenue derived from the tax imposed under this chapter and
178- allocated for a purpose described by Section 351.101(a)(6) to an
179- amount that is less than the sum of:
180- (1) the amount of the revenue derived from the tax
181- imposed under this chapter and allocated by the municipality for a
182- purpose described by Section 351.101(a)(6) during the fiscal year
183- beginning October 1, 2016; and
184- (2) three percent of the amount of revenue derived
185- from the tax imposed under this chapter during the fiscal year for
186- which the amount required by this subsection is being determined.
187- SECTION 5. Subchapter B, Chapter 351, Tax Code, is amended
188- by adding Section 351.1021 to read as follows:
189- Sec. 351.1021. PLEDGE OR COMMITMENT OF CERTAIN TAX REVENUE
190- FOR CERTAIN PROJECTS. (a) In this section:
191- (1) "Eligible municipality" means a municipality
192- described by Section 351.102(e)(4).
193- (2) "Multipurpose convention center facility" means a
194- facility that will be constructed and, after that construction:
195- (A) is used to host conventions, meetings, live
196- performances, and sporting events;
197- (B) is:
198- (i) leased by an eligible municipality; or
199- (ii) wholly owned by an eligible
200- municipality, and none of which is or may be owned through an
201- undivided common interest;
202- (C) is not located in a hotel or other structure;
203- (D) has at least 10,000 square feet of continuous
204- and usable meeting space; and
205- (E) is configurable to simultaneously
206- accommodate multiple events described by Paragraph (A) of different
207- sizes and types.
208- (3) "Multipurpose convention center facility project"
209- means a project that consists of a hotel owned by an eligible
210- municipality or another person and a multipurpose convention center
211- facility, the nearest exterior wall of which is located not more
212- than 2,500 feet from the nearest exterior wall of the hotel. A
213- multipurpose convention center facility project may include:
214- (A) each new or existing business located in the
215- municipality, regardless of who owns the business or the property
216- on which the business is located, the nearest exterior wall of which
217- is located not more than 2,500 feet from the nearest exterior wall
218- of the multipurpose convention center facility or the hotel that is
219- part of the project;
220- (B) a parking shuttle or transportation system;
221- and
222- (C) any parking area or structure located in the
223- municipality, regardless of who owns the area or structure or the
224- property on which the area or structure is located, the nearest
225- property line of which is located not more than two miles from the
226- nearest exterior wall of the multipurpose convention center
227- facility.
228- (b) An eligible municipality or local government
229- corporation acting on behalf of an eligible municipality is
230- entitled to receive all funds from a multipurpose convention center
231- facility project that the owner of a project could receive under
232- Section 151.429(h) of this code or Section 2303.5055, Government
233- Code, if a project for purposes of those provisions included a
234- multipurpose convention center facility project. The municipality
235- or local government corporation is entitled to receive the funds
236- for a period of 10 years beginning on the date the multipurpose
237- convention center facility is issued a certificate of occupancy.
238- (c) An eligible municipality or local government
239- corporation acting on behalf of an eligible municipality may pledge
240- or commit the funds to which the municipality or local government
241- corporation is entitled as provided by Subsection (b) for the
242- payment of bonds, other obligations, or contractual obligations
243- issued or incurred for the multipurpose convention center facility
244- project.
245- (d) The comptroller shall deposit the funds to which an
246- eligible municipality or local government corporation is entitled
247- as provided by Subsection (b) in a separate suspense account of the
248- municipality outside the state treasury.
249- (e) The comptroller may make a rebate, refund, or payment
250- authorized under this section without the necessity of an
251- appropriation. The comptroller shall rebate, refund, or pay to the
252- eligible municipality the funds to which the municipality or local
253- government corporation is entitled as provided by Subsection (b) at
254- least quarterly.
255- SECTION 6. Subchapter B, Chapter 351, Tax Code, is amended
256- by adding Section 351.1022 to read as follows:
257- Sec. 351.1022. PLEDGE OR COMMITMENT OF CERTAIN TAX REVENUE
258- BY CERTAIN MUNICIPALITIES WITH SPORTS STADIUMS. (a) This section
259- applies only to a municipality described by Section 351.102(e)(3).
260- (b) A municipality is entitled to receive all funds from a
261- hotel project described by Section 351.102(b) that an owner of a
262- project may receive under Section 151.429(h) of this code or
263- Section 2303.5055, Government Code, and all tax revenue collected
264- under Chapter 183 by or from all permittees at the hotel project,
265- excluding revenue disbursed by the comptroller under Section
266- 183.051(b). Notwithstanding any other law, the municipality is
267- entitled to receive the funds for a period of 30 years beginning on
268- the date the hotel project is open for initial occupancy.
269- (c) The municipality may pledge the funds to which the
270- municipality is entitled as provided by Subsection (b) for the
271- payment of bonds, other obligations, or contractual obligations
272- issued or incurred to acquire, lease, construct, improve, enlarge,
273- and equip the hotel project.
274- (d) The comptroller shall deposit the funds to which the
275- municipality is entitled as provided by Subsection (b) in a
276- separate suspense account of the municipality outside the state
277- treasury.
278- (e) The comptroller may make a rebate, refund, or payment
279- authorized under this section without the necessity of an
280- appropriation. The comptroller shall rebate, refund, or pay to the
281- municipality the funds to which the municipality is entitled as
282- provided by Subsection (b) at least monthly.
283- SECTION 7. Chapter 351, Tax Code, is amended by adding
284- Subchapter C to read as follows:
285- SUBCHAPTER C. MUNICIPAL HOTEL AND CONVENTION CENTER PROJECTS
286- Sec. 351.151. DEFINITIONS. In this subchapter:
287- (1) "Infrastructure" includes:
288- (A) a road, street, highway, bridge, overpass,
289- underpass, and interchange;
290- (B) a fresh, reuse, or alternative water supply
291- system, sanitary sewer system, and storm drainage system;
292- (C) an electric system, telecommunications
293- system, and gas system;
294- (D) signage, landscaping, and hardscaping; and
295- (E) a public amenity or public area, such as a
296- plaza, park, or trail.
297- (2) "Qualified convention center facility" means a
298- facility that has been or will be constructed and that:
299- (A) is primarily used to host conventions or
300- meetings;
301- (B) is wholly owned by a municipality to which
302- this subchapter applies, and none of which is or may be owned
303- through an undivided common interest;
304- (C) is connected to a qualified hotel or has an
305- exterior wall that is located not more than 1,000 feet from the
306- nearest exterior wall of a qualified hotel;
307- (D) is not located in a hotel, sports stadium, or
308- other structure but may share common infrastructure or facilities
309- with a hotel, such as a heating, ventilation, and air-conditioning
310- system, electrical system, or kitchen;
311- (E) has at least 10,000 square feet of continuous
312- meeting space; and
313- (F) is configurable to simultaneously
314- accommodate multiple events described by Paragraph (A) of different
315- sizes and types.
316- (3) "Qualified hotel" means a hotel that is designated
317- by a municipality to which this subchapter applies as the hotel that
318- is part of a qualified project. A qualified hotel:
319- (A) must be located on land owned by the
320- designating municipality;
321- (B) must be connected to a qualified convention
322- center facility or have an exterior wall that is located not more
323- than 1,000 feet from the nearest exterior wall of the qualified
324- convention center facility; and
325- (C) may consist of two or more towers, regardless
326- of whether named or branded differently, that:
327- (i) are constructed at the same time; and
328- (ii) each meet the requirements of
329- Paragraphs (A) and (B).
330- (4) "Qualified project" means a project:
331- (A) to:
332- (i) acquire, construct, repair, remodel,
333- expand, or equip a qualified convention center facility; or
334- (ii) acquire, lease, construct, repair,
335- remodel, expand, or equip a qualified hotel; and
336- (B) that may include:
337- (i) acquiring, leasing, constructing,
338- repairing, remodeling, expanding, or equipping:
339- (a) a restaurant, bar, retail
340- establishment, or spa located in a qualified convention center
341- facility or qualified hotel or connected to a qualified convention
342- center facility or qualified hotel, including by a covered walkway;
38+ (ii) has adopted a capital improvement plan
39+ for the construction or expansion of a convention center facility;
34340 or
344- (b) a parking area or structure, the
345- nearest property line of which is located not more than 1,000 feet
346- from the nearest property line of a qualified convention center
347- facility or qualified hotel;
348- (ii) acquiring, constructing, repairing,
349- remodeling, or expanding infrastructure that:
350- (a) is directly related to and
351- necessary for the qualified convention center facility or qualified
352- hotel; and
353- (b) is located within the property
354- lines of the qualified convention center facility or qualified
355- hotel, or not more than 1,000 feet from the nearest property line of
356- the facility or hotel; or
357- (iii) acquiring a property right, including
358- a fee simple interest, easement, or other interest in connection
359- with a purpose described by this subdivision.
360- Sec. 351.152. APPLICABILITY. This subchapter applies only
361- to:
362- (1) a municipality described by Section
363- 351.001(7)(B);
364- (2) a municipality described by Section
365- 351.001(7)(D);
366- (3) a municipality described by Section
367- 351.001(7)(E);
368- (4) a municipality described by Section
369- 351.102(e)(3);
370- (5) a municipality that contains more than 75 percent
371- of the population of a county with a population of 1.5 million or
372- more;
373- (6) a municipality with a population of 150,000 or
374- more but less than 200,000 that is partially located in at least one
375- county with a population of 125,000 or more;
376- (7) a municipality with a population of 150,000 or
377- more but less than one million that is located in one county with a
378- population of 2.3 million or more;
379- (8) a municipality with a population of 180,000 or
380- more that:
381- (A) is located in two counties, each with a
382- population of 100,000 or more; and
383- (B) contains an American Quarter Horse Hall of
384- Fame and Museum;
385- (9) a municipality with a population of 96,000 or more
386- that is located in a county that borders Lake Palestine;
387- (10) a municipality with a population of 96,000 or
388- more that is located in a county that contains the headwaters of the
389- San Gabriel River;
390- (11) a municipality with a population of 99,900 or
391- more but less than 111,000 that is located in a county with a
392- population of 135,000 or more;
393- (12) a municipality with a population of 110,000 or
394- more but less than 135,000 at least part of which is located in a
395- county with a population of less than 135,000;
396- (13) a municipality with a population of 9,000 or more
397- but less than 10,000 that is located in two counties, each of which
398- has a population of 662,000 or more and a southern border with a
399- county with a population of 2.3 million or more;
400- (14) a municipality with a population of 200,000 or
401- more but less than 300,000 that contains a component institution of
402- the Texas Tech University System;
403- (15) a municipality with a population of 95,000 or
404- more that:
405- (A) is located in more than one county; and
406- (B) borders Lake Lewisville;
407- (16) a municipality with a population of 45,000 or
408- more that:
409- (A) contains a portion of Cedar Hill State Park;
410- (B) is located in two counties, one of which has a
411- population of two million or more and one of which has a population
412- of 149,000 or more; and
413- (C) has adopted a capital improvement plan for
414- the construction or expansion of a convention center facility;
415- (17) a municipality with a population of less than
416- 6,000 that:
417- (A) is almost wholly located in a county with a
418- population of 600,000 or more that is adjacent to a county with a
419- population of two million or more;
420- (B) is partially located in a county with a
421- population of 1.8 million or more that is adjacent to a county with
422- a population of two million or more;
423- (C) has a visitor center and museum located in a
424- 19th-century rock building in the municipality's downtown; and
425- (D) has a waterpark open to the public;
426- (18) a municipality with a population of 56,000 or
427- more that:
428- (A) borders Lake Ray Hubbard; and
429- (B) is located in two counties, one of which has a
430- population of less than 80,000;
431- (19) a municipality with a population of 83,000 or
432- more that:
433- (A) borders Clear Lake; and
434- (B) is primarily located in a county with a
435- population of less than 300,000;
436- (20) a municipality with a population of less than
437- 2,000 that:
438- (A) is located adjacent to a bay connected to the
439- Gulf of Mexico;
440- (B) is located in a county with a population of
441- 290,000 or more that is adjacent to a county with a population of
442- four million or more; and
443- (C) has a boardwalk on the bay;
444- (21) a municipality with a population of 75,000 or
445- more that:
446- (A) is located wholly in one county with a
447- population of 575,000 or more that is adjacent to a county with a
448- population of four million or more; and
449- (B) has adopted a capital improvement plan for
450- the construction or expansion of a convention center facility;
451- (22) a municipality with a population of less than
452- 75,000 that is located in three counties, at least one of which has
453- a population of four million or more;
454- (23) an eligible coastal municipality with a
455- population of 3,000 or more but less than 5,000;
456- (24) a municipality with a population of 90,000 or
457- more but less than 150,000 that:
458- (A) is located in three counties; and
459- (B) contains a branch campus of a component
460- institution of the University of Houston System;
461- (25) a municipality that is:
462- (A) primarily located in a county with a
463- population of four million or more; and
464- (B) connected by a bridge to a municipality
465- described by Subdivision (20);
466- (26) a municipality with a population of 20,000 or
467- more but less than 25,000 that:
468- (A) contains a portion of Mustang Bayou; and
469- (B) is wholly located in a county with a
470- population of less than 500,000;
471- (27) a municipality with a population of 70,000 or
472- more but less than 90,000 that is located in two counties, one of
473- which has a population of four million or more and the other of
474- which has a population of less than 50,000;
475- (28) a municipality with a population of 10,000 or
476- more that:
477- (A) is wholly located in a county with a
478- population of four million or more; and
479- (B) has a city hall located less than three miles
480- from a space center operated by an agency of the federal government;
481- (29) a municipality that is the county seat of a
482- county:
483- (A) through which the Pedernales River flows; and
484- (B) in which the birthplace of a president of the
485- United States is located;
486- (30) a municipality that contains a portion of U.S.
487- Highway 79 and State Highway 130;
488- (31) a municipality with a population of 48,000 or
489- more but less than 95,000 that is located in two counties, one of
490- which has a population of 900,000 or more but less than 1.7 million;
491- (32) a municipality with a population of less than
492- 25,000 that contains a museum of Western American art;
493- (33) a municipality with a population of 50,000 or
494- more that is the county seat of a county that contains a portion of
495- the Sam Houston National Forest;
496- (34) a municipality with a population of less than
497- 25,000 that:
498- (A) contains a cultural heritage museum; and
499- (B) is located in a county that borders the
500- United Mexican States and the Gulf of Mexico;
501- (35) a municipality that is the county seat of a county
502- that:
503- (A) has a population of 115,000 or more;
504- (B) is adjacent to a county with a population of
505- 1.8 million or more; and
506- (C) hosts an annual peach festival;
507- (36) a municipality that is the county seat of a county
508- that:
509- (A) has a population of 585,000 or more; and
510- (B) is adjacent to a county with a population of
511- four million or more;
512- (37) a municipality with a population of less than
513- 10,000 that:
514- (A) contains a component university of The Texas
515- A&M University System; and
516- (B) is located in a county adjacent to a county
517- that borders Oklahoma;
518- (38) a municipality with a population of less than
519- 6,100 that:
520- (A) is located in two counties, each of which has
521- a population of 600,000 or more but less than two million; and
522- (B) hosts an annual Cajun Festival;
523- (39) a municipality with a population of 13,000 or
524- more that:
525- (A) is located on an international border; and
526- (B) is located in a county:
527- (i) with a population of less than 400,000;
528- and
529- (ii) in which at least one World Birding
530- Center site is located; and
531- (40) a municipality with a population of 4,000 or more
532- that:
533- (A) is located on an international border; and
534- (B) is located not more than five miles from a
535- state historic site that serves as a visitor center for a state park
536- that contains 300,000 or more acres of land.
537- Sec. 351.153. EXCEPTION TO OWNERSHIP REQUIREMENT. (a)
538- This section applies only to a municipality described by Section
539- 351.152(6) or (29).
540- (b) Section 351.151(2)(B) does not apply to a facility that
541- otherwise meets the requirements of a qualified convention center
542- facility under Section 351.151.
543- (c) Section 351.151(3)(A) does not apply to a hotel that
544- otherwise meets the requirements of a qualified hotel under Section
545- 351.151.
546- Sec. 351.154. NONPROFIT CORPORATION AS MUNICIPAL AGENT. A
547- municipality may authorize a nonprofit corporation to act on behalf
548- of the municipality for any purpose under this subchapter.
549- Sec. 351.155. PLEDGE OR COMMITMENT OF CERTAIN TAX REVENUE
550- FOR OBLIGATIONS FOR QUALIFIED PROJECT. (a) In addition to the
551- authority of a municipality to issue debt under Chapter 1504,
552- Government Code, a municipality may pledge or commit the revenue
553- derived from the tax imposed under this chapter from a qualified
554- hotel and the revenue to which the municipality is entitled under
555- Section 351.156 and, if applicable, Section 351.157 for the payment
556- of:
557- (1) bonds or other obligations issued for a qualified
558- project; and
559- (2) contractual obligations related to the project,
560- including obligations under:
561- (A) a contract authorized by Chapter 380, Local
562- Government Code, for the project; and
563- (B) an interlocal agreement directly related to
564- the project.
565- (b) A municipality may pledge or commit revenue for the
566- payment of bonds, other obligations, or contractual obligations
567- under Subsection (a) only if the qualified hotel that is a component
568- of the qualified project for which that revenue is pledged or
569- committed benefits from the pledging or committing of that revenue.
570- (c) A municipality may pledge or commit revenue under this
571- section for only one qualified project. After a municipality
572- pledges or commits revenue under this section for a qualified
573- project, the municipality may not ever again pledge or commit
574- revenue for a qualified project.
575- (d) Subsection (c) does not apply to a municipality with a
576- population of 175,000 or more.
577- (e) A municipality is not entitled to receive revenue under
578- Section 351.156 or 351.157 unless the municipality has pledged or
579- committed a portion of the revenue derived from the tax imposed
580- under this chapter and collected by the qualified hotel for the
581- payment of bonds, other obligations, or contractual obligations
582- described by Subsection (a) and issued or incurred for the
583- qualified project.
584- Sec. 351.156. ENTITLEMENT TO CERTAIN TAX REVENUE. Subject
585- to Sections 351.155(e) and 351.158, a municipality is entitled to
586- receive the revenue derived from the following taxes generated,
587- paid, and collected by a qualified hotel, and each restaurant, bar,
588- and retail establishment located in or connected to the hotel or the
589- related qualified convention center facility, that is located in
590- the municipality:
591- (1) the sales and use tax imposed under Chapter 151;
592- (2) the hotel occupancy tax imposed under Chapter 156;
593- and
594- (3) if a political subdivision that is entitled to
595- receive the revenue from the tax agrees in writing to the
596- municipality receiving that revenue:
597- (A) the sales and use tax imposed by the
598- political subdivision under Chapter 322 or 323;
599- (B) the hotel occupancy tax imposed by the
600- political subdivision under Chapter 352; and
601- (C) the mixed beverage tax issued under Section
602- 183.051.
603- Sec. 351.157. ADDITIONAL ENTITLEMENT FOR CERTAIN
604- MUNICIPALITIES. (a) In this section, "qualified establishment"
605- means an establishment:
606- (1) that is located on land:
607- (A) owned by a municipality; or
608- (B) owned by any person if the establishment is
609- located in a municipality described by Section 351.152(3);
610- (2) the nearest exterior wall of which is located not
611- more than 1,000 feet from the nearest exterior wall of a qualified
612- hotel or qualified convention center facility;
613- (3) that is constructed:
614- (A) on or after the date the municipality
615- commences a qualified project under this subchapter; or
616- (B) at any time if the establishment is located
617- in a municipality described by Section 351.152(3);
618- (4) that is not a sports stadium; and
619- (5) that is the type of establishment described by
620- Subsection (c) from which the municipality is entitled to receive
621- revenue under Subsection (d).
622- (b) This section applies only to:
623- (1) a municipality described by Section 351.152(3);
624- (2) a municipality described by Section 351.152(6);
625- (3) a municipality described by Section 351.152(7);
626- (4) a municipality described by Section 351.152(10);
627- (5) a municipality described by Section 351.152(16);
628- (6) a municipality described by Section 351.152(22);
629- (7) a municipality described by Section 351.152(25);
630- (8) a municipality described by Section 351.152(34);
631- (9) a municipality described by Section 351.152(35);
632- (10) a municipality described by Section 351.152(36);
633- and
634- (11) a municipality described by Section 351.152(38).
635- (c) A municipality is entitled to receive revenue under
636- Subsection (d) derived from the following types of establishments
637- that meet the requirements of Subsections (a)(1), (2), (3), and
638- (4):
639- (1) for a municipality described by Subsection (b)(1):
640- (A) restaurants, bars, and retail
641- establishments; and
642- (B) swimming pools and swimming facilities owned
643- or operated by the related qualified hotel;
644- (2) for a municipality described by Subsection (b)(2),
645- restaurants, bars, and retail establishments;
646- (3) for a municipality described by Subsection (b)(3),
647- restaurants, bars, and retail establishments;
648- (4) for a municipality described by Subsection (b)(4):
649- (A) restaurants, bars, and retail
650- establishments; and
651- (B) swimming pools and swimming facilities owned
652- or operated by the related qualified hotel;
653- (5) for a municipality described by Subsection (b)(5),
654- restaurants, bars, and retail establishments;
655- (6) for a municipality described by Subsection (b)(6),
656- restaurants, bars, and retail establishments;
657- (7) for a municipality described by Subsection (b)(7),
658- restaurants, bars, and retail establishments;
659- (8) for a municipality described by Subsection (b)(8),
660- restaurants, bars, and retail establishments;
661- (9) for a municipality described by Subsection (b)(9),
662- restaurants, bars, and retail establishments;
663- (10) for a municipality described by Subsection
664- (b)(10):
665- (A) restaurants, bars, and retail
666- establishments; and
667- (B) swimming pools and swimming facilities owned
668- or operated by the related qualified hotel; and
669- (11) for a municipality described by Subsection
670- (b)(11):
671- (A) restaurants, bars, and retail
672- establishments; and
673- (B) swimming pools and swimming facilities owned
674- or operated by the related qualified hotel.
675- (d) Subject to Subsection (e), in addition to the revenue to
676- which the municipality is entitled under Section 351.156, a
677- municipality to which this section applies is entitled to receive
678- the revenue derived from the following taxes generated, paid, and
679- collected from a qualified establishment located in the
680- municipality:
681- (1) the sales and use tax imposed under Chapter 151;
682- and
683- (2) the mixed beverage tax issued under Section
684- 183.051, if the political subdivision that is entitled to receive
685- the revenue from the tax agrees in writing to the municipality
686- receiving that revenue.
687- (e) A municipality to which this section applies is not
688- entitled to receive revenue under Subsection (d) unless the
689- municipality commences a qualified project under this subchapter
690- before September 1, 2023.
691- Sec. 351.158. PERIOD OF ENTITLEMENT. A municipality is
692- entitled to receive revenue as provided by Sections 351.156 and
693- 351.157 until the 10th anniversary of the date the qualified hotel
694- to which the entitlement relates is open for initial occupancy.
695- Sec. 351.159. DEPOSIT OF REVENUE. Notwithstanding any
696- other law, the comptroller shall deposit the revenue from the taxes
697- described by Sections 351.156 and 351.157 that were collected by or
698- forwarded to the comptroller in trust in a separate suspense
699- account of the qualified project. The suspense account is outside
700- the state treasury and the comptroller may make a payment
701- authorized by this subchapter without the necessity of an
702- appropriation.
703- Sec. 351.160. QUARTERLY PAYMENTS. The comptroller shall
704- pay to each municipality the revenue to which the municipality is
705- entitled under this subchapter at least quarterly.
706- SECTION 8. Sections 351.102(b-1), (c-1), and (g), Tax Code,
707- are repealed.
708- SECTION 9. The comptroller of public accounts may adopt
709- rules as necessary to administer this Act.
710- SECTION 10. The changes in law made to Subchapter B, Chapter
711- 351, Tax Code, by this Act apply only to a hotel project described
712- by Section 351.102(b), Tax Code, as amended by this Act, for which a
713- municipality by ordinance or resolution first authorizes the
714- issuance of bonds or other obligations, executes an agreement under
715- Chapter 380, Local Government Code, or executes an interlocal
716- agreement directly related to the project that is secured by a
717- pledge or commitment of revenue under that subsection for the
718- project on or after the effective date of this Act. A hotel project
719- described by Section 351.102(b), Tax Code, for which a municipality
720- by ordinance or resolution first authorized the issuance of bonds
721- or other obligations, executed an agreement under Chapter 380,
722- Local Government Code, or executed an interlocal agreement directly
723- related to the project that is secured by a pledge or commitment of
724- revenue under that subsection for the project before the effective
725- date of this Act is governed by the law in effect when the ordinance
726- was adopted or the agreement was executed, and that law is continued
727- in effect for purposes of those hotel projects.
728- SECTION 11. Subchapter C, Chapter 351, Tax Code, as added by
729- this Act, applies only to a qualified project as defined by Section
730- 351.151, Tax Code, as added by this Act, for which a municipality by
731- ordinance or resolution first authorizes the issuance of bonds or
732- other obligations, executes or amends an agreement under Chapter
733- 380, Local Government Code, or executes or amends an interlocal
734- agreement directly related to the qualified project that is secured
735- by a pledge or commitment of revenue under Subchapter C, Chapter
736- 351, Tax Code, for the project on or after the effective date of
737- this Act.
738- SECTION 12. The changes in law made by this Act do not
739- affect the validity of a bond, other obligation, or contractual
740- obligation for which revenue was pledged or committed under Section
741- 351.102, Tax Code, before the effective date of this Act. Bonds,
742- other obligations, or contractual obligations for which revenue was
743- pledged or committed before the effective date of this Act are
744- governed by the law in effect when the revenue was pledged or
745- committed, and that law is continued in effect for purposes of the
746- validity of those bonds, obligations, and contractual obligations.
747- SECTION 13. This Act takes effect September 1, 2019.
41+ (F) a municipality that has a population of not
42+ more than 25,000, that contains a cultural heritage museum, and
43+ that is located in a county that borders the United Mexican States
44+ and the Gulf of Mexico.
45+ SECTION 2. Section 351.101, Tax Code, is amended by adding
46+ Subsection (p) to read as follows:
47+ (p) In addition to other authorized uses, a municipality
48+ that has a population of not more than 25,000, that contains a
49+ cultural heritage museum, and that is located in a county that
50+ borders the United Mexican States and the Gulf of Mexico may use
51+ revenue from the municipal hotel occupancy tax for the promotion of
52+ tourism by the enhancement and upgrading of an existing sports
53+ facility or field as specified by Subsection (a)(7), provided that
54+ the requirements of Subsections (a)(7)(A) and (C) are met.
55+ SECTION 3. This Act takes effect immediately if it receives
56+ a vote of two-thirds of all the members elected to each house, as
57+ provided by Section 39, Article III, Texas Constitution. If this
58+ Act does not receive the vote necessary for immediate effect, this
59+ Act takes effect September 1, 2019.