H.B. No. 4103
AN ACT
relating to the use of certain tax revenue by certain
municipalities and to the entitlement of certain municipalities to
certain tax revenue related to a hotel and convention center
project.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
SECTION 1. Section 351.101(n), Tax Code, is amended to read
as follows:
(n) In addition to other authorized uses, a municipality
that has a population of not more than 1,500 and is located in a
county that borders Arkansas and Louisiana may use revenue from the
municipal hotel occupancy tax for the promotion of tourism by the
enhancement and upgrading of an existing sports facility or field
as specified by Subsection (a)(7), provided that the requirements
of Subsection [Subsections] (a)(7)(A) [and (C)] and Section
351.1076 are met.
SECTION 2. Section 351.10712(a), Tax Code, is amended to
read as follows:
(a) This section applies only to:
(1) a municipality with a population of at least
95,000 that is located in a county that is bisected by United States
Highway 385 and has a population of not more than 140,000; and
(2) a municipality located in a county that has a
population of not more than 300,000 and in which a component
university of the University of Houston System is located.
SECTION 3. Section 351.152, Tax Code, is amended to read as
follows:
Sec. 351.152. APPLICABILITY. This subchapter applies only
to:
(1) a municipality described by Section
351.001(7)(B);
(2) a municipality described by Section
351.001(7)(D);
(3) a municipality described by Section
351.001(7)(E);
(4) a municipality described by Section
351.102(e)(3);
(5) a municipality that contains more than 75 percent
of the population of a county with a population of 1.5 million or
more;
(6) a municipality with a population of 150,000 or
more but less than 200,000 that is partially located in at least one
county with a population of 125,000 or more;
(7) a municipality with a population of 150,000 or
more but less than one million that is located in one county with a
population of 2.3 million or more;
(8) a municipality with a population of 180,000 or
more that:
(A) is located in two counties, each with a
population of 100,000 or more; and
(B) contains an American Quarter Horse Hall of
Fame and Museum;
(9) a municipality with a population of 96,000 or more
that is located in a county that borders Lake Palestine;
(10) a municipality with a population of 96,000 or
more that is located in a county that contains the headwaters of the
San Gabriel River;
(11) a municipality with a population of 99,900 or
more but less than 111,000 that is located in a county with a
population of 135,000 or more;
(12) a municipality with a population of 110,000 or
more but less than 135,000 at least part of which is located in a
county with a population of less than 135,000;
(13) a municipality with a population of 9,000 or more
but less than 10,000 that is located in two counties, each of which
has a population of 662,000 or more and a southern border with a
county with a population of 2.3 million or more;
(14) a municipality with a population of 200,000 or
more but less than 300,000 that contains a component institution of
the Texas Tech University System;
(15) a municipality with a population of 95,000 or
more that:
(A) is located in more than one county; and
(B) borders Lake Lewisville;
(16) a municipality with a population of 45,000 or
more that:
(A) contains a portion of Cedar Hill State Park;
(B) is located in two counties, one of which has a
population of two million or more and one of which has a population
of 149,000 or more; and
(C) has adopted a capital improvement plan for
the construction or expansion of a convention center facility;
(17) a municipality with a population of less than
6,000 that:
(A) is almost wholly located in a county with a
population of 600,000 or more that is adjacent to a county with a
population of two million or more;
(B) is partially located in a county with a
population of 1.8 million or more that is adjacent to a county with
a population of two million or more;
(C) has a visitor center and museum located in a
19th-century rock building in the municipality's downtown; and
(D) has a waterpark open to the public;
(18) a municipality with a population of 56,000 or
more that:
(A) borders Lake Ray Hubbard; and
(B) is located in two counties, one of which has a
population of less than 80,000;
(19) a municipality with a population of 83,000 or
more that:
(A) borders Clear Lake; and
(B) is primarily located in a county with a
population of less than 300,000;
(20) 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;
(21) 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;
(22) 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 four million or more;
(23) an eligible coastal municipality with a
population of 3,000 or more but less than 5,000;
(24) a municipality with a population of 90,000 or
more but less than 150,000 that:
(A) is located in three counties; and
(B) contains a branch campus of a component
institution of the University of Houston System;
(25) 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 (20);
(26) a municipality with a population of 20,000 or
more but less than 25,000 that:
(A) contains a portion of Mustang Bayou; and
(B) is wholly located in a county with a
population of less than 500,000;
(27) a municipality with a population of 70,000 or
more but less than 90,000 that is located in two counties, one of
which has a population of four million or more and the other of
which has a population of less than 50,000;
(28) a municipality with a population of 10,000 or
more that:
(A) is wholly located in a county with a
population of four million or more; and
(B) has a city hall located less than three miles
from a space center operated by an agency of the federal government;
(29) a municipality that is the county seat of a
county:
(A) through which the Pedernales River flows; and
(B) in which the birthplace of a president of the
United States is located;
(30) a municipality that contains a portion of U.S.
Highway 79 and State Highway 130;
(31) a municipality with a population of 48,000 or
more but less than 95,000 that is located in two counties, one of
which has a population of 900,000 or more but less than 1.7 million;
(32) a municipality with a population of less than
25,000 that contains a museum of Western American art;
(33) a municipality with a population of 50,000 or
more that is the county seat of a county that contains a portion of
the Sam Houston National Forest;
(34) a municipality with a population of less than
25,000 that:
(A) contains a cultural heritage museum; and
(B) is located in a county that borders the
United Mexican States and the Gulf of Mexico;
(35) a municipality that is the county seat of a county
that:
(A) has a population of 115,000 or more;
(B) is adjacent to a county with a population of
1.8 million or more; and
(C) hosts an annual peach festival;
(36) a municipality that is the county seat of a county
that:
(A) has a population of 585,000 or more; and
(B) is adjacent to a county with a population of
four million or more;
(37) a municipality with a population of less than
10,000 that:
(A) contains a component university of The Texas
A&M University System; and
(B) is located in a county adjacent to a county
that borders Oklahoma;
(38) a municipality with a population of less than
6,100 that:
(A) is located in two counties, each of which has
a population of 600,000 or more but less than two million; and
(B) hosts an annual Cajun Festival;
(39) a municipality with a population of 13,000 or
more that:
(A) is located on an international border; and
(B) is located in a county:
(i) with a population of less than 400,000;
and
(ii) in which at least one World Birding
Center site is located;
(40) a municipality with a population of 4,000 or more
that:
(A) is located on an international border; and
(B) is located not more than five miles from a
state historic site that serves as a visitor center for a state park
that contains 300,000 or more acres of land;
(41) a municipality with a population of 36,000 or
more that is adjacent to at least two municipalities described by
Subdivision (15); [and]
(42) a municipality with a population of 28,000 or
more in which is located a historic railroad depot and heritage
center;
(43) a municipality located in a county that has a
population of not more than 300,000 and in which a component
university of the University of Houston System is located;
(44) a municipality with a population of less than
500,000 that is:
(A) located in two counties; and
(B) adjacent to a municipality described by
Subdivision (31); and
(45) a municipality that:
(A) has a population of more than 67,000; and
(B) is located in two counties with 90 percent of
the municipality's territory located in a county with a population
of at least 580,000, and the remaining territory located in a county
with a population of at least four million.
SECTION 4. Sections 351.157(a), (b), (c), and (e), Tax
Code, are amended to read as follows:
(a) In this section, "qualified establishment" means an
establishment:
(1) that is located on land:
(A) owned by a municipality; or
(B) owned by any person if the establishment is
located in a municipality described by Section 351.152(3) or owned
by the federal government if the establishment is located in a
municipality described by Section 351.152(6);
(2) the nearest exterior wall of which is located not
more than 1,000 feet from the nearest exterior wall of a qualified
hotel or qualified convention center facility;
(3) that is constructed:
(A) on or after the date the municipality
commences a qualified project under this subchapter; or
(B) at any time if the establishment is located
in a municipality described by Section 351.152(3);
(4) that is not a sports stadium; and
(5) that is the type of establishment described by
Subsection (c) from which the municipality is entitled to receive
revenue under Subsection (d).
(b) This section applies only to:
(1) a municipality described by Section 351.152(3);
(2) a municipality described by Section 351.152(6);
(3) a municipality described by Section 351.152(7);
(4) a municipality described by Section 351.152(10);
(4-a) a municipality described by Section
351.152(14);
(5) a municipality described by Section 351.152(16);
(6) a municipality described by Section 351.152(22);
(7) a municipality described by Section 351.152(25);
(8) a municipality described by Section 351.152(34);
(9) a municipality described by Section 351.152(35);
(10) a municipality described by Section 351.152(36);
[and]
(11) a municipality described by Section 351.152(38);
and
(12) a municipality described by Section 351.152(43).
(c) A municipality is entitled to receive revenue under
Subsection (d) derived from the following types of establishments
that meet the requirements of Subsections (a)(1), (2), (3), and
(4):
(1) for a municipality described by Subsection (b)(1):
(A) restaurants, bars, and retail
establishments; and
(B) swimming pools and swimming facilities owned
or operated by the related qualified hotel;
(2) for a municipality described by Subsection (b)(2),
swimming pools and swimming facilities, restaurants, bars, and
retail establishments;
(3) for a municipality described by Subsection (b)(3),
restaurants, bars, and retail establishments;
(4) for a municipality described by Subsection (b)(4):
(A) restaurants, bars, and retail
establishments; and
(B) swimming pools and swimming facilities owned
or operated by the related qualified hotel;
(4-a) for a municipality described by Subsection
(b)(4-a):
(A) restaurants, bars, and retail
establishments; and
(B) swimming pools and swimming facilities owned
or operated by the related qualified hotel;
(5) for a municipality described by Subsection (b)(5),
restaurants, bars, and retail establishments;
(6) for a municipality described by Subsection (b)(6),
restaurants, bars, and retail establishments;
(7) for a municipality described by Subsection (b)(7),
restaurants, bars, and retail establishments;
(8) for a municipality described by Subsection (b)(8),
restaurants, bars, and retail establishments;
(9) for a municipality described by Subsection (b)(9),
restaurants, bars, and retail establishments;
(10) for a municipality described by Subsection
(b)(10):
(A) restaurants, bars, and retail
establishments; and
(B) swimming pools and swimming facilities owned
or operated by the related qualified hotel; [and]
(11) for a municipality described by Subsection
(b)(11):
(A) restaurants, bars, and retail
establishments; and
(B) swimming pools and swimming facilities owned
or operated by the related qualified hotel; and
(12) for a municipality described by Subsection
(b)(12):
(A) restaurants, bars, and retail
establishments; and
(B) swimming pools and swimming facilities owned
or operated by the related qualified hotel.
(e) A municipality to which this section applies is not
entitled to receive revenue under Subsection (d) unless the
municipality commences a qualified project under this subchapter
before September 1, 2027 [2023].
SECTION 5. 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, 2021.
______________________________ ______________________________
President of the Senate Speaker of the House
I certify that H.B. No. 4103 was passed by the House on April
30, 2021, by the following vote: Yeas 107, Nays 20, 1 present, not
voting; and that the House concurred in Senate amendments to H.B.
No. 4103 on May 28, 2021, by the following vote: Yeas 103, Nays 45,
1 present, not voting.
______________________________
Chief Clerk of the House
I certify that H.B. No. 4103 was passed by the Senate, with
amendments, on May 25, 2021, by the following vote: Yeas 29, Nays
2.
______________________________
Secretary of the Senate
APPROVED: __________________
Date
__________________
Governor