Texas 2019 - 86th Regular

Texas Senate Bill SB2210 Compare Versions

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1	1	By: West S.B. No. 2210
2	2
3	3
4	4	A BILL TO BE ENTITLED
5	5	AN ACT
6	6	relating to the use of certain tax revenue by certain
7	7	municipalities for the payment of job training programs and the
8	8	development of hotel and convention center projects.
9	9	BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
10	10	SECTION 1. Subtitle A, Title 10, Local Government Code, is
11	11	amended by adding Chapter 310 to read as follows:
12	12	CHAPTER 310. QUALIFIED MUNICIPAL HOTEL AND CONVENTION CENTER
13	13	PROJECTS
14	14	SUBCHAPTER A. GENERAL PROVISIONS
15	15	Sec. 310.001. DEFINITIONS. In this chapter:
16	16	(1) "Qualified convention center facility" means a
17	17	convention center facility as defined by Section 351.001, Tax Code,
18	18	that:
19	19	(A) is owned by a municipality,
20	20	(B) has been constructed or will be constructed
21	21	in conjunction with the acquisition, lease, construction, repair,
22	22	remodel or equipping of a hotel that is part of a qualified hotel
23	23	project, and
24	24	(C) contains at least 4,000 square feet of
25	25	meeting space.
26	26	(2) "Eligible central municipality" and "eligible
27	27	coastal municipality" have the meanings assigned by Section
28	28	351.001, Tax Code.
29	29	(3) "Hotel" has the meaning assigned by Section
30	30	156.001, Tax Code.
31	31	(4) "Qualified hotel project" means a project to
32	32	acquire, lease, construct, repair, remodel, expand or equip:
33	33	(A) a hotel connected to a qualified convention
34	34	center facility or not more than 1,000 feet as measured from the
35	35	closest exterior wall of a qualified convention center facility and
36	36	a hotel; and
37	37	(B) subject to the limitation of Section 310.103,
38	38	a facility or business located on the same tract of land as a
39	39	qualified convention center facility that is included in a plan for
40	40	the development of a qualified hotel project submitted to a
41	41	municipality but located no more than 1,500 feet from the closest
42	42	exterior wall of a qualified convention center facility or hotel
43	43	regardless of who owns the facility, the business or the real
44	44	property.
45	45	(5) "Qualified municipality" means a municipality
46	46	described by Subchapter D.
47	47	(6) "Revenue" has the meaning assigned by Section
48	48	351.001, Tax Code.
49	49	Sec. 310.002. NONPROFIT CORPORATION AS MUNICIPAL AGENT. A
50	50	qualified municipality may authorize a nonprofit corporation to act
51	51	on behalf of the municipality for any purpose under this chapter.
52	52	Sec. 310.003. RULES. The comptroller may adopt rules as
53	53	necessary to administer this chapter.
54	54	SUBCHAPTER B. AUTHORITY TO ISSUE BONDS AND PLEDGE CERTAIN TAX
55	55	REVENUE FOR OBLIGATIONS
56	56	Sec. 310.051. AUTHORITY TO ISSUE BONDS AND PLEDGE OF
57	57	CERTAIN TAX REVENUE FOR OBLIGATIONS FOR QUALIFIED HOTEL PROJECTS
58	58	AND CONVENTION CENTER FACILITY.
59	59	(a) Notwithstanding Chapters 1504 or 1508, Government Code,
60	60	a qualified municipality may issue bonds or other obligations and
61	61	may pledge the revenue derived from the tax imposed under Chapter
62	62	351, Tax Code, from a qualified hotel project and the revenue to
63	63	which the qualified municipality is entitled under Section 310.101
64	64	for:
65	65	(1) the cost of workforce training, job creation and
66	66	job-training programs associated with employees at a qualified
67	67	hotel project;
68	68	(2) advertising and conducting solicitations and
69	69	promotional programs to attract tourists and convention delegates
70	70	or registrants to the municipality; and
71	71	(3) the payment of bonds or other obligations issued
72	72	or incurred to acquire, lease, construct, repair, remodel, or
73	73	equip:
74	74	(A) the hotel that is part of the qualified hotel
75	75	project;
76	76	(B) a facility or business described by Section
77	77	310.001(4)(B);
78	78	(C) a qualified convention center facility
79	79	described by Section 310.001(1)(B) that will be located not more
80	80	than the distance specified by Section 310.001(4)(A) from the hotel
81	81	that is part of the qualified hotel project;
82	82	(D) land where a qualified hotel project will be
83	83	located;
84	84	(E) parking facilities that support the
85	85	qualified hotel project or qualified convention center; or
86	86	(F) infrastructure including water, sewer,
87	87	streets, sidewalks, walkways, trails, plazas that support the hotel
88	88	project.
89	89	(c) A qualified municipality may pledge revenue from or
90	90	other assets of a qualified hotel project for the payment of bonds
91	91	or other obligations issued or incurred only if the qualified hotel
92	92	project benefits from those bonds or other obligations.
93	93	Sec. 310.056. SUBMISSION OF INFORMATION. (a) The
94	94	comptroller by rule may establish the information a qualified
95	95	municipality must submit in a request made under this section.
96	96	(b) The comptroller may require a municipality to submit
97	97	information prepared by a registered professional land surveyor to
98	98	satisfy the distance specified by this Chapter.
99	99	SUBCHAPTER C. RECEIPT AND USE OF CERTAIN TAX REVENUE
100	100	Sec. 310.101. ENTITLEMENT TO CERTAIN TAX REVENUE.
101	101	(a) Except as otherwise provided by this chapter, this section
102	102	applies only to a qualified municipality described by Subchapter D.
103	103	(b) Subject to the limitation in Sections 310.102, 310.103,
104	104	and 310.104, a qualified municipality is entitled to receive the
105	105	revenue derived from the following taxes generated, paid, and
106	106	collected by a qualified hotel project including each facility or
107	107	business located in a qualified hotel project located in a
108	108	qualified municipality:
109	109	(1) the sales and use tax imposed under Chapter 151,
110	110	Tax Code but not including sales if the customer did not take
111	111	possession or consume the good;
112	112	(2) the hotel occupancy tax imposed under Chapter 156,
113	113	Tax Code; and
114	114	(3) if a political subdivision that is entitled to
115	115	receive the revenue from the tax agrees in writing to pay the
116	116	revenue to the municipality:
117	117	(A) the sales and use tax imposed by the
118	118	political subdivision under Chapter 322 or 323, Tax Code;
119	119	(B) the hotel occupancy tax imposed by the
120	120	political subdivision under Chapter 352, Tax Code;
121	121	(C) the municipal portion of the mixed beverage
122	122	tax imposed under Chapter 183, Tax Code; and
123	123	(D) the ad valorem tax imposed by the political
124	124	subdivision under Title 1, Tax Code.
125	125	Sec. 310.102. PERIOD OF ENTITLEMENT. A qualified
126	126	municipality is entitled to receive revenue under this subchapter
127	127	from a qualified hotel project until the 10th anniversary of the
128	128	date the hotel that is part of the qualified hotel project is open
129	129	for initial occupancy.
130	130	Sec. 310.103. NEW COMMERICAL DEVELOPMENT IN A QUALIFIED
131	131	HOTEL PROJECT (a) If the construction of a facility or business
132	132	located in a qualified hotel project occurs:
133	133	(1) no earlier than twenty-four months before the date
134	134	a qualified hotel project is open for initial occupancy; or
135	135	(2) before the 10th anniversary of the date the hotel
136	136	opens for initial occupancy, a qualified municipality is entitled
137	137	to receive:
138	138	(A) twenty percent of the sales and use tax
139	139	imposed under Chapter 151, Tax Code and one hundred percent of the
140	140	municipal portion of the mixed beverage tax imposed under Chapter
141	141	183, Tax Code generated, paid, and collected by each facility or
142	142	business in a qualified hotel project located in the qualified
143	143	municipality in the first and second year in which the qualified
144	144	hotel is open for initial occupancy; and
145	145	(B) eighty percent of the sales and use tax
146	146	imposed under Chapter 151, Tax Code and one hundred percent of the
147	147	municipal portion of the mixed beverage tax imposed under Chapter
148	148	183, Tax Code generated, paid, and collected by each facility or
149	149	business in a qualified hotel project located in the qualified
150	150	municipality during the third through tenth years the qualified
151	151	hotel is open for initial occupancy.
152	152	Sec 310.104. EXISTING COMMERICAL DEVELOPMENT IN A QUALIFIED
153	153	HOTEL. (a) If a facility or business located in qualified hotel
154	154	project was constructed more than twenty-four months before the
155	155	date the qualified hotel opens for initial occupancy, a qualified
156	156	municipality is not entitled to receive revenue under this
157	157	subchapter for the taxes generated by that facility or business.
158	158	Sec. 310.105. LIMITATION ON ENTITLEMENT; USE OF REVENUE. A
159	159	qualified municipality may use the revenue received under this
160	160	subchapter for the payment of bonds or other obligations issued or
161	161	incurred for a qualified hotel project, except that the qualified
162	162	municipality is only entitled to receive the revenue if the
163	163	qualified municipality pledges a portion of the revenue derived
164	164	from the tax imposed under Chapter 351, Tax Code, from the hotel
165	165	that is part of the qualified hotel project for the payment of bonds
166	166	or other obligations issued or incurred for the qualified hotel
167	167	project.
168	168	Sec. 310.106. DEPOSIT OF REVENUE. Notwithstanding any
169	169	other law, the comptroller shall deposit the revenue from the taxes
170	170	described by Section 310.101(b) that were collected by or forwarded
171	171	to the comptroller in trust in a separate suspense account of the
172	172	qualified hotel project. The suspense account is outside the state
173	173	treasury and the comptroller may make a payment authorized by this
174	174	subchapter without the necessity of an appropriation.
175	175	Sec. 310.107. APPLICATION FOR PAYMENT. The comptroller by
176	176	rule shall establish the requirements and procedures by which a
177	177	qualified municipality may apply for a payment authorized by this
178	178	subchapter.
179	179	Sec. 310.108. QUARTERLY PAYMENTS. The comptroller shall
180	180	pay to each qualified municipality the revenue to which the
181	181	municipality is entitled under this subchapter at least quarterly.
182	182	Sec. 310.109. PLEDGE OF CERTAIN TAX REVENUE BY POPULOUS
183	183	MUNICIPALITIES FOR OBLIGATIONS FOR CERTAIN HOTELS. (a) This
184	184	section applies only to a municipality with a population of 1.5
185	185	million or more.
186	186	(b) Subject to the limitations provided by this section and
187	187	Subchapter B, Chapter 351, Tax Code, a municipality may pledge the
188	188	revenue derived from the tax imposed under Chapter 351, Tax Code,
189	189	for the payment of the principal of or interest on bonds or other
190	190	obligations of a municipally sponsored local government
191	191	corporation created under Chapter 431, Transportation Code, issued
192	192	to pay the cost of:
193	193	(1) acquisition and construction of a convention
194	194	center hotel; or
195	195	(2) acquisition, remodeling, or rehabilitation of a
196	196	historic hotel structure.
197	197	(c) A municipality may pledge under this section only
198	198	revenue that is collected at the hotel for which the revenue is
199	199	pledged.
200	200	Sec. 310.110. PLEDGE OF CERTAIN TAX REVENUE FOR OBLIGATIONS
201	201	FOR HOTEL AND CONVENTION CENTER PROJECT. (a) In this section,
202	202	"hotel and convention center project" means a project that is:
203	203	(1) an existing hotel owned by a municipality or
204	204	another person; and
205	205	(2) a convention center facility to be acquired,
206	206	constructed, equipped, or leased.
207	207	(b) This section applies only to a municipality that:
208	208	(1) is the county seat of a county that:
209	209	(A) borders the United Mexican States;
210	210	(B) has a population of less than 300,000; and
211	211	(C) contains one or more municipalities with a
212	212	population of 200,000 or more; and
213	213	(2) holds an annual jalapeno festival.
214	214	(c) A municipality is entitled to receive all revenue from a
215	215	hotel and convention center project that a municipality is entitled
216	216	to receive under Section 310.101 if a project for purposes of that
217	217	section included a hotel and convention center project. The
218	218	municipality may pledge the revenue for payment of obligations
219	219	issued for the hotel and convention center project.
220	220	Sec. 310.111. LIMITATION ON AUTHORITY OF CERTAIN
221	221	MUNICIPALITIES TO PLEDGE CERTAIN TAX REVENUE FOR OBLIGATIONS.
222	222	(a) This section applies only to a municipality described by
223	223	Section 310.101(a)(6) that is not an eligible central municipality.
224	224	(b) A municipality may not pledge revenue under Section
225	225	310.051 for a hotel project after the earlier of:
226	226	(1) the 20th anniversary of the date the municipality
227	227	first pledged the revenue for the hotel project; or
228	228	(2) the date the revenue pledged for the hotel project
229	229	equals 40 percent of the hotel project's total construction cost.
230	230	SUBCHAPTER D. QUALIFIED MUNICIPALTIES
231	231	Section 310.101(a) A qualified municipality means:
232	232	(1) a municipality with a population of more than
233	233	140,000 but less than 1.5 million that:
234	234	(A) is located in a county with a population of
235	235	one million or more; and
236	236	(B) has adopted a capital improvement plan for
237	237	the construction or expansion of a convention center facility;
238	238	(2) a municipality with a population of 250,000 or
239	239	more that:
240	240	(A) is located wholly or partly on a barrier
241	241	island that borders the Gulf of Mexico;
242	242	(B) is located in a county with a population of
243	243	300,000 or more; and
244	244	(C) has adopted a capital improvement plan to
245	245	expand an existing convention center facility;
246	246	(3) a municipality with a population of 116,000 or
247	247	more that:
248	248	(A) is located in two counties both of which have
249	249	a population of 660,000 or more; and
250	250	(B) has adopted a capital improvement plan for
251	251	the construction or expansion of a convention center facility;
252	252	(4) a municipality with a population of less than
253	253	50,000 that contains a general academic teaching institution that
254	254	is not a component institution of a university system, as those
255	255	terms are defined by Section 61.003, Education Code;
256	256	(5) a municipality with a population of 640,000 or
257	257	more that:
258	258	(A) is located on an international border; and
259	259	(B) has adopted a capital improvement plan for
260	260	the construction or expansion of a convention center facility;
261	261	(6) a municipality with a population of 173,000 or
262	262	more that is located within two or more counties;
263	263	(7) a municipality with a population of 96,000 or more
264	264	that is located in a county that borders Lake Palestine;
265	265	(8) a municipality with a population of 96,000 or more
266	266	that is located in a county that contains the headwaters of the San
267	267	Gabriel River;
268	268	(9) a municipality with a population of at least
269	269	99,900 but not more than 111,000 that is located in a county with a
270	270	population of 135,000 or more;
271	271	(10) a municipality with a population of at least
272	272	110,000 but not more than 135,000 at least part of which is located
273	273	in a county with a population of not more than 135,000;
274	274	(11) a municipality with a population of at least
275	275	9,000 but not more than 10,000 that is located in two counties, each
276	276	of which has a population of 662,000 or more and a southern border
277	277	with a county with a population of 2.3 million or more;
278	278	(12) a municipality with a population of at least
279	279	200,000 but not more than 300,000 that contains a component
280	280	institution of the Texas Tech University System;
281	281	(13) a municipality with a population of 95,000 or
282	282	more that borders Lake Lewisville;
283	283	(14) a municipality that:
284	284	(A) contains a portion of Cedar Hill State Park;
285	285	(B) has a population of more than 45,000;
286	286	(C) is located in two counties, one of which has a
287	287	population of more than two million and one of which has a
288	288	population of more than 149,000; and
289	289	(D) has adopted a capital improvement plan for
290	290	the construction or expansion of a convention center facility;
291	291	(15) a municipality with a population of less than
292	292	6,000 that:
293	293	(A) is located in two counties each with a
294	294	population of 600,000 or more that are both adjacent to a county
295	295	with a population of two million or more;
296	296	(B) has full-time police and fire departments;
297	297	and
298	298	(C) has adopted a capital improvement plan for
299	299	the construction or expansion of a convention center facility;
300	300	(16) a municipality with a population of 56,000 or
301	301	more that:
302	302	(A) borders Lake Ray Hubbard; and
303	303	(B) is located in two counties, one of which has a
304	304	population of less than 80,000;
305	305	(17) a municipality with a population of more than
306	306	83,000 that:
307	307	(A) borders Clear Lake; and
308	308	(B) is primarily located in a county with a
309	309	population of less than 300,000;
310	310	(18) a municipality with a population of less than
311	311	2,000 that:
312	312	(A) is located adjacent to a bay connected to the
313	313	Gulf of Mexico;
314	314	(B) is located in a county with a population of
315	315	290,000 or more that is adjacent to a county with a population of
316	316	four million or more; and
317	317	(C) has a boardwalk on the bay;
318	318	(19) a municipality with a population of 75,000 or
319	319	more that:
320	320	(A) is located wholly in one county with a
321	321	population of 575,000 or more that is adjacent to a county with a
322	322	population of four million or more; and
323	323	(B) has adopted a capital improvement plan for
324	324	the construction or expansion of a convention center facility;
325	325	(20) a municipality with a population of less than
326	326	75,000 that is located in three counties, at least one of which has
327	327	a population of four million or more;
328	328	(21) an eligible coastal municipality with a
329	329	population of more than 3,000 but less than 5,000;
330	330	(22) a municipality with a population of 65,200 or
331	331	more that:
332	332	(A) is located in a county with a population of
333	333	449,000 or more; and
334	334	(B) contains a portion of Lake Conroe and hosts
335	335	an annual catfish festival;
336	336	(23) a municipality with a population of 22,300 or
337	337	more that:
338	338	(A) is located in a county with a population of
339	339	49,600 or more; and
340	340	(B) contains a portion of the Guadalupe River and
341	341	the Kerrville Schreiner park;
342	342	(24) a municipality with a population of 6,100 or less
343	343	that:
344	344	(A) is located in two counties one with a
345	345	population of 788,400 or more and the other county with a population
346	346	of 666,700 or more; and
347	347	(B) contains a portion of state highway 289;
348	348	(25) a municipality with a population of 90,000 or
349	349	more but less than 150,000 that:
350	350	(A) is located in three counties; and
351	351	(B) contains a branch campus of a component
352	352	institution of the University of Houston System;
353	353	(26) a municipality that is the county seat of a county
354	354	that has a population of 585,000 or more and is adjacent to a county
355	355	with a population of four million or more, except that the
356	356	municipality may also pledge revenue derived from the tax imposed
357	357	under this chapter from a hotel project that is owned by or located
358	358	on land owned by a nonprofit corporation or eleemosynary foundation
359	359	acting on behalf of or in concert with the municipality;
360	360	(27) a municipality that is the county seat of a county
361	361	that has a population of at least 585,000 and is adjacent to a
362	362	county with a population of four million or more; and
363	363	(28) a municipality with a population of 25,200 or
364	364	more that:
365	365	(A) is located in a county with a population of
366	366	116,500 or more that is adjacent to a county with a population of
367	367	1.8 million or more; and
368	368	(B) hosts an annual county peach festival.
369	369	SECTION 2. Section 351.001(2), Tax Code, is amended to read
370	370	as follows:
371	371	(2) "Convention center facility [facilities]" [or
372	372	"convention center complex"] means a facility regardless if the
373	373	facility is a separate structure or connected to a hotel
374	374	[facilities] that is [are primarily] used to host conventions,
375	375	meetings and gatherings of people that enhance and promote tourism
376	376	and the convention and hotel industry, a [meetings. The term means]
377	377	civic center [centers], civic center building [buildings],
378	378	auditorium [auditoriums], exhibition hall [halls], or coliseum
379	379	[and coliseums] that is [are] owned by the municipality or other
380	380	governmental entity or that is [are] managed in whole or part by the
381	381	municipality, and including a parking area or facility that is for
382	382	the parking or storage of conveyances and is located at or in the
383	383	vicinity of a convention center facility. The term includes:
384	384	(A) in [. In] a municipality with a population of
385	385	1.5 million or more:
386	386	(i) a hotel, the nearest property line of
387	387	which is located not more than [, "convention center facilities" or
388	388	"convention center complex" means civic centers, civic center
389	389	buildings, auditoriums, exhibition halls, and coliseums that are
390	390	owned by the municipality or other governmental entity or that are
391	391	managed in part by the municipality, hotels owned by the
392	392	municipality or a nonprofit municipally sponsored local government
393	393	corporation created under Chapter 431, Transportation Code,
394	394	within] 1,000 feet of a convention center owned by the
395	395	municipality; and
396	396	(ii) [, or] a historic hotel [owned by the
397	397	municipality or a nonprofit municipally sponsored local government
398	398	corporation created under Chapter 431, Transportation Code], the
399	399	nearest property line of which is located not more than [within] one
400	400	mile from the nearest property line of a convention center owned by
401	401	the municipality;
402	402	(B) in an eligible central municipality, [. The
403	403	term includes parking areas or facilities that are for the parking
404	404	or storage of conveyances and that are located at or in the vicinity
405	405	of other convention center facilities. The term also includes] a
406	406	hotel, the nearest property line of which [owned by or located on
407	407	land that is owned by an eligible central municipality or by a
408	408	nonprofit corporation acting on behalf of an eligible central
409	409	municipality and that] is located not more than [within] 1,000 feet
410	410	of another [a] convention center facility owned by the
411	411	municipality, except as provided by Paragraph (C); and
412	412	(C) in an eligible central municipality
413	413	described by Subdivision (7)(D), [. The term also includes] a
414	414	hotel, the nearest property line of which [that is owned in part by
415	415	an eligible central municipality described by Subdivision (7)(D)
416	416	and that] is located not more than [within] 1,000 feet of another
417	417	[a] convention center facility. [For purposes of this subdivision,
418	418	"meetings" means gatherings of people that enhance and promote
419	419	tourism and the convention and hotel industry.]
420	420	SECTION 3. Section 351.102(a), Tax Code, is amended to read
421	421	as follows:
422	422	(a) Subject to the limitations provided by this subchapter,
423	423	a municipality may pledge the revenue derived from the tax imposed
424	424	under this chapter for:
425	425	(1) the payment of revenue bonds [that are] issued
426	426	under Section 1504.002(a), Government Code; and
427	427	(2) [, for] one or more of the purposes provided by
428	428	Section 351.101 or authorized by Chapter 310, Local Government Code
429	429	[, in the case of a municipality of 1,500,000 or more, for the
430	430	payment of principal of or interest on bonds or other obligations of
431	431	a municipally sponsored local government corporation created under
432	432	Chapter 431, Transportation Code, that were issued to pay the cost
433	433	of the acquisition and construction of a convention center hotel or
434	434	the cost of acquisition, remodeling, or rehabilitation of a
435	435	historic hotel structure; provided, however, such pledge may only
436	436	be that portion of the tax collected at such hotel].
437	437	SECTION 4. Section 351.102(d), Tax Code, is redesignated as
438	438	Section 351.1063, Tax Code, and amended to read as follows:
439	439	Sec. 351.1063. ALLOCATION OF REVENUE FOR ADVERTISING AND
440	440	PROMOTION: CERTAIN MUNICIPALITIES WITH HOTEL PROJECT. (a) This
441	441	section applies only to a municipality described by Section
442	442	310.051, Local Government Code, other than an eligible central
443	443	municipality described by Section 351.001(7)(D).
444	444	(b) A [(d) Except as provided by this subsection, an
445	445	eligible central] municipality [or another municipality described
446	446	by Subsection (b) or (e)] that uses revenue derived from the tax
447	447	imposed under this chapter or funds received under Section 310.101,
448	448	Local Government Code, [Subsection (c)] for a hotel project under
449	449	Section 310.051, Local Government Code, [described by Subsection
450	450	(b)] may not reduce the percentage of revenue from the tax imposed
451	451	under this chapter and allocated for a purpose described by Section
452	452	351.101(a)(3) to a percentage that is less than the average
453	453	percentage of that revenue allocated by the municipality for that
454	454	purpose during the 36-month period preceding the date the
455	455	municipality begins using the revenue or funds for the hotel
456	456	project. [This subsection does not apply to an eligible central
457	457	municipality described by Section 351.001(7)(D).]
458	458	SECTION 5. Section 351.102(f), Tax Code, is redesignated as
459	459	Section 351.1064, Tax Code, and amended to read as follows:
460	460	Sec. 351.1064. ALLOCATION OF REVENUE FOR CERTAIN SPORTING
461	461	EVENT EXPENSES: CERTAIN MUNICIPALITIES WITH HOTEL PROJECT.
462	462	(a) This section applies only to a municipality with a population
463	463	of at least 200,000 but not more than 300,000 that contains a
464	464	component institution of the Texas Tech University System.
465	465	(b) [(f)] A municipality [described by Subsection (e)(3)]
466	466	that uses revenue derived from the tax imposed under this chapter or
467	467	funds received under Section 310.101, Local Government Code,
468	468	[Subsection (c)] for repayment of bonds or other obligations issued
469	469	or incurred for a hotel project under Section 310.051, Local
470	470	Government Code, [described by Subsection (b)] may not, in a fiscal
471	471	year that begins after construction of the hotel project is
472	472	complete and during any part of which the bonds or other obligations
473	473	are outstanding, reduce the amount of revenue derived from the tax
474	474	imposed under this chapter and allocated for a purpose described by
475	475	Section 351.101(a)(6) to an amount that is less than the sum of:
476	476	(1) the amount of the revenue derived from the tax
477	477	imposed under this chapter and allocated by the municipality for a
478	478	purpose described by Section 351.101(a)(6) during the fiscal year
479	479	beginning October 1, 2016; and
480	480	(2) three percent of the amount of revenue derived
481	481	from the tax imposed under this chapter during the fiscal year for
482	482	which the amount required by this subsection is being determined.
483	483	SECTION 6. Section 351.103(b), Tax Code, is amended to read
484	484	as follows:
485	485	(b) Subsection (a) does not apply to a municipality in a
486	486	fiscal year of the municipality if the total amount of hotel
487	487	occupancy tax collected by the municipality in the most recent
488	488	calendar year that ends at least 90 days before the date the fiscal
489	489	year begins exceeds $2 million. A municipality excepted from the
490	490	application of Subsection (a) by this subsection shall allocate
491	491	hotel occupancy tax revenue by ordinance, consistent with the other
492	492	limitations of this section. The portion of the tax revenue
493	493	allocated by a municipality with a population of 1.5 million or more
494	494	[than 1.6 million] for the purposes provided by Section
495	495	351.101(a)(3) may not be less than 23 percent, except that the
496	496	allocation is subject to and may not impair the authority of the
497	497	municipality to:
498	498	(1) pledge all or any portion of that tax revenue to
499	499	the payment of bonds as provided by Section 351.102(a) of this code
500	500	or Section 310.109, Local Government Code, or bonds issued to
501	501	refund bonds secured by that pledge; or
502	502	(2) spend all or any portion of that tax revenue for
503	503	the payment of operation and maintenance expenses of convention
504	504	center facilities.
505	505	SECTION 7. Section 351.106(a), Tax Code, is amended to read
506	506	as follows:
507	507	(a) A municipality that has a population of 1.18 million or
508	508	more, is located predominantly in a county that has a total area of
509	509	less than 1,000 square miles, and [that] has adopted a
510	510	council-manager form of government shall use the amount of revenue
511	511	from the tax imposed under this chapter that is derived from the
512	512	application of the tax at a rate of more than four percent of the
513	513	cost of a room as follows:
514	514	(1) no more than 55 percent to:
515	515	(A) construct, improve, enlarge, equip, and
516	516	repair [constructing, improving, enlarging, equipping, and
517	517	repairing] the municipality's convention center facilities
518	518	[complex]; or
519	519	(B) pledge [pledging] payment of revenue bonds
520	520	and revenue refunding bonds issued under Subchapter A, Chapter
521	521	1504, Government Code, for the municipality's convention center
522	522	facilities [complex]; and
523	523	(2) at least 45 percent for the purposes provided by
524	524	Section 351.101(a)(3).
525	525	SECTION 8. The following provisions of the Tax Code are
526	526	repealed:
527	527	(1) Sections 351.102(b), (b-1), (c), (c-1), (e), and
528	528	(g); and
529	529	(2) Section 351.106(c).
530	530	SECTION 9. The changes in law made by this Act apply only to
531	531	a hotel project as defined by Section 310.001, Local Government
532	532	Code, as added by this Act, for which a municipality first pledges
533	533	revenue for bonds or other obligations under Chapter 310 of that
534	534	code on or after September 1, 2017. A hotel project described by
535	535	Section 351.102(b), Tax Code, as repealed by this Act, for which a
536	536	municipality first pledges revenue for bonds or other obligations
537	537	before September 1, 2017, is governed by the law in effect when the
538	538	revenue was first pledged, and that law is continued in effect for
539	539	purposes of those hotel projects.
540	540	SECTION 10. The changes in law made by this Act do not
541	541	affect the validity of a bond or other obligation for which revenue
542	542	was pledged under 351.102, Tax Code, before January 1, 2020. Bonds
543	543	or other obligations for which revenue was pledged before January
544	544	1, 2020, are governed by the law in effect when the revenue was
545	545	pledged, and that law is continued in effect for purposes of the
546	546	validity of those bonds and obligations.
547	547	SECTION 11. This Act takes effect immediately if it
548	548	receives a vote of two-thirds of all the members elected to each
549	549	house, as provided by Section 39, Article III, Texas Constitution.
550	550	If this Act does not receive the vote necessary for immediate
551	551	effect, this Act takes effect September 1, 2019.