| 1 | 1 | | 89R14911 CJD-D |
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| 2 | 2 | | By: Hinojosa of Hidalgo S.B. No. 2670 |
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| 3 | 3 | | |
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| 4 | 4 | | |
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| 5 | 5 | | |
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| 6 | 6 | | |
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| 7 | 7 | | A BILL TO BE ENTITLED |
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| 8 | 8 | | AN ACT |
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| 9 | 9 | | relating to the authority of certain municipalities to use certain |
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| 10 | 10 | | tax revenue for hotel and convention center projects and certain |
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| 11 | 11 | | qualified projects. |
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| 12 | 12 | | BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: |
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| 13 | 13 | | SECTION 1. Section 351.1015(b), Tax Code, as amended by |
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| 14 | 14 | | Chapters 644 (H.B. 4559), 779 (H.B. 5012), 927 (S.B. 2220), and 1110 |
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| 15 | 15 | | (S.B. 1057), Acts of the 88th Legislature, Regular Session, 2023, |
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| 16 | 16 | | is reenacted and amended to read as follows: |
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| 17 | 17 | | (b) This section applies only to a qualified project located |
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| 18 | 18 | | in: |
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| 19 | 19 | | (1) a municipality with a population of at least |
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| 20 | 20 | | 700,000 but less than 950,000 according to the most recent federal |
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| 21 | 21 | | decennial census; [or] |
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| 22 | 22 | | (2) a municipality that contains more than 70 percent |
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| 23 | 23 | | of the population of a county with a population of 1.5 million or |
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| 24 | 24 | | more; |
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| 25 | 25 | | (3) [(2)] a municipality described by Section |
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| 26 | 26 | | 351.001(7)(B); |
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| 27 | 27 | | (4) [or |
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| 28 | 28 | | [(3)] a municipality described by Section |
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| 29 | 29 | | 351.152(61); |
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| 30 | 30 | | (5) [(2)] a municipality with a population of at least |
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| 31 | 31 | | two million; or |
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| 32 | 32 | | (6) a municipality described by Section |
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| 33 | 33 | | 334.0082(a)(2), Local Government Code. |
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| 34 | 34 | | SECTION 2. Section 351.1015(j), Tax Code, as added by |
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| 35 | 35 | | Chapter 1110 (S.B. 1057), Acts of the 88th Legislature, Regular |
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| 36 | 36 | | Session, 2023, is redesignated as Section 351.1015(j-1), Tax Code, |
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| 37 | 37 | | to read as follows: |
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| 38 | 38 | | (j-1) [(j)] A local government corporation to which this |
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| 39 | 39 | | subsection applies may act as a municipality under this section and |
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| 40 | 40 | | is considered to be a municipality for purposes of this section. |
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| 41 | 41 | | With respect to a local government corporation to which this |
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| 42 | 42 | | subsection applies, the term "qualified project" includes a venue |
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| 43 | 43 | | and any related infrastructure. This subsection applies only to a |
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| 44 | 44 | | local government corporation that: |
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| 45 | 45 | | (1) is authorized to collect a municipal hotel |
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| 46 | 46 | | occupancy tax; and |
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| 47 | 47 | | (2) is located in a county with a population of 3.3 |
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| 48 | 48 | | million or more. |
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| 49 | 49 | | SECTION 3. Section 351.1015(j), Tax Code, as added by |
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| 50 | 50 | | Chapter 779 (H.B. 5012), Acts of the 88th Legislature, Regular |
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| 51 | 51 | | Session, 2023, is redesignated as Section 351.1015(l), Tax Code, |
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| 52 | 52 | | and amended to read as follows: |
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| 53 | 53 | | (l) [(j)] For a municipality described by Subsection |
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| 54 | 54 | | (b)(3), (4), or (6) [(b)(2) or (3)], the term "qualified project" |
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| 55 | 55 | | also means a venue described by Section 334.001(4)(A), Local |
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| 56 | 56 | | Government Code, and any related infrastructure. |
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| 57 | 57 | | SECTION 4. Section 351.152, Tax Code, is amended to read as |
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| 58 | 58 | | follows: |
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| 59 | 59 | | Sec. 351.152. APPLICABILITY. This subchapter applies only |
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| 60 | 60 | | to: |
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| 61 | 61 | | (1) a municipality described by Section |
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| 62 | 62 | | 351.001(7)(B); |
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| 63 | 63 | | (2) a municipality described by Section |
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| 64 | 64 | | 351.001(7)(D); |
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| 65 | 65 | | (3) a municipality described by Section |
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| 66 | 66 | | 351.001(7)(E); |
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| 67 | 67 | | (4) a municipality described by Section |
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| 68 | 68 | | 351.102(e)(3); |
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| 69 | 69 | | (5) a municipality that contains more than 70 percent |
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| 70 | 70 | | of the population of a county with a population of 1.5 million or |
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| 71 | 71 | | more; |
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| 72 | 72 | | (6) a municipality with a population of 175,000 or |
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| 73 | 73 | | more but less than 200,000 that is partially located in at least one |
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| 74 | 74 | | county with a population of 125,000 or more; |
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| 75 | 75 | | (7) a municipality with a population of 250,000 or |
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| 76 | 76 | | more but less than one million that is located in one county with a |
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| 77 | 77 | | population of 2.5 million or more; |
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| 78 | 78 | | (8) a municipality with a population of 180,000 or |
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| 79 | 79 | | more that: |
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| 80 | 80 | | (A) is located in two counties, each with a |
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| 81 | 81 | | population of 100,000 or more; and |
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| 82 | 82 | | (B) contains an American Quarter Horse Hall of |
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| 83 | 83 | | Fame and Museum; |
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| 84 | 84 | | (9) a municipality with a population of 96,000 or more |
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| 85 | 85 | | that is located in a county that borders Lake Palestine; |
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| 86 | 86 | | (10) a municipality with a population of 96,000 or |
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| 87 | 87 | | more that is located in a county that contains the headwaters of the |
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| 88 | 88 | | San Gabriel River; |
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| 89 | 89 | | (11) a municipality with a population of at least |
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| 90 | 90 | | 95,000 that is located in a county that is bisected by United States |
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| 91 | 91 | | Highway 385 and has a population of not more than 170,000; |
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| 92 | 92 | | (12) a municipality with a population of 110,000 or |
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| 93 | 93 | | more but less than 135,000 at least part of which is located in a |
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| 94 | 94 | | county with a population of less than 135,000; |
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| 95 | 95 | | (13) a municipality with a population of 28,000 or |
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| 96 | 96 | | more but less than 31,000 that is located in two counties, each of |
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| 97 | 97 | | which has a population of 900,000 or more and a southern border with |
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| 98 | 98 | | a county with a population of 2.5 million or more; |
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| 99 | 99 | | (14) a municipality with a population of 200,000 or |
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| 100 | 100 | | more but less than 300,000 that contains a component institution |
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| 101 | 101 | | of the Texas Tech University System; |
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| 102 | 102 | | (15) a municipality with a population of 95,000 or |
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| 103 | 103 | | more that: |
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| 104 | 104 | | (A) is located in more than one county; and |
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| 105 | 105 | | (B) borders Lake Lewisville; |
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| 106 | 106 | | (16) a municipality with a population of 45,000 or |
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| 107 | 107 | | more that: |
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| 108 | 108 | | (A) contains a portion of Cedar Hill State Park; |
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| 109 | 109 | | (B) is located in two counties, one of which has a |
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| 110 | 110 | | population of 2.5 million or more and one of which has a population |
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| 111 | 111 | | of 190,000 or more; and |
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| 112 | 112 | | (C) has adopted a capital improvement plan for |
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| 113 | 113 | | the construction or expansion of a convention center facility; |
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| 114 | 114 | | (17) a municipality with a population of less than |
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| 115 | 115 | | 10,000 that: |
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| 116 | 116 | | (A) is almost wholly located in a county with a |
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| 117 | 117 | | population of 900,000 or more that is adjacent to a county with a |
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| 118 | 118 | | population of 2.5 million or more; |
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| 119 | 119 | | (B) is partially located in a county with a |
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| 120 | 120 | | population of 2.1 million or more that is adjacent to a county with |
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| 121 | 121 | | a population of 2.5 million or more; |
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| 122 | 122 | | (C) has a visitor center and museum located in a |
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| 123 | 123 | | 19th-century rock building in the municipality's downtown; and |
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| 124 | 124 | | (D) has a waterpark open to the public; |
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| 125 | 125 | | (18) a municipality with a population of 60,000 or |
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| 126 | 126 | | more that: |
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| 127 | 127 | | (A) borders Lake Ray Hubbard; and |
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| 128 | 128 | | (B) is located in two counties, one of which has a |
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| 129 | 129 | | population of less than 110,000; |
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| 130 | 130 | | (19) a municipality with a population of 110,000 or |
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| 131 | 131 | | more that: |
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| 132 | 132 | | (A) borders Clear Lake; and |
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| 133 | 133 | | (B) is primarily located in a county with a |
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| 134 | 134 | | population of less than 355,000; |
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| 135 | 135 | | (20) a municipality with a population of less than |
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| 136 | 136 | | 2,000 that: |
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| 137 | 137 | | (A) is located adjacent to a bay connected to the |
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| 138 | 138 | | Gulf of Mexico; |
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| 139 | 139 | | (B) is located in a county with a population of |
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| 140 | 140 | | 290,000 or more that is adjacent to a county with a population of |
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| 141 | 141 | | four million or more; and |
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| 142 | 142 | | (C) has a boardwalk on the bay; |
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| 143 | 143 | | (21) a municipality with a population of 75,000 or |
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| 144 | 144 | | more that: |
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| 145 | 145 | | (A) is located wholly in one county with a |
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| 146 | 146 | | population of 800,000 or more that is adjacent to a county with a |
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| 147 | 147 | | population of four million or more; and |
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| 148 | 148 | | (B) has adopted a capital improvement plan for |
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| 149 | 149 | | the construction or expansion of a convention center facility; |
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| 150 | 150 | | (22) a municipality with a population of less than |
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| 151 | 151 | | 70,000 that is located in three counties, at least one of which has |
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| 152 | 152 | | a population of four million or more; |
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| 153 | 153 | | (23) an eligible coastal municipality with a |
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| 154 | 154 | | population of 2,900 or more but less than 5,000; |
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| 155 | 155 | | (24) a municipality with a population of 90,000 or |
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| 156 | 156 | | more but less than 150,000 that: |
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| 157 | 157 | | (A) is located in three counties; and |
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| 158 | 158 | | (B) contains a branch campus of a component |
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| 159 | 159 | | institution of the University of Houston System; |
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| 160 | 160 | | (25) a municipality that is: |
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| 161 | 161 | | (A) primarily located in a county with a |
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| 162 | 162 | | population of four million or more; and |
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| 163 | 163 | | (B) connected by a bridge to a municipality |
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| 164 | 164 | | described by Subdivision (20); |
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| 165 | 165 | | (26) a municipality with a population of 25,000 or |
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| 166 | 166 | | more but less than 30,000 that: |
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| 167 | 167 | | (A) contains a portion of Mustang Bayou; and |
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| 168 | 168 | | (B) is wholly located in a county with a |
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| 169 | 169 | | population of less than 500,000; |
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| 170 | 170 | | (27) a municipality with a population of 70,000 or |
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| 171 | 171 | | more but less than 90,000 that is located in two counties, one of |
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| 172 | 172 | | which has a population of four million or more and the other of |
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| 173 | 173 | | which has a population of less than 50,000; |
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| 174 | 174 | | (28) a municipality with a population of 10,000 or |
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| 175 | 175 | | more that: |
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| 176 | 176 | | (A) is wholly located in a county with a |
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| 177 | 177 | | population of four million or more; and |
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| 178 | 178 | | (B) has a city hall located less than three miles |
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| 179 | 179 | | from a space center operated by an agency of the federal government; |
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| 180 | 180 | | (29) a municipality that is the county seat of a |
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| 181 | 181 | | county: |
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| 182 | 182 | | (A) through which the Pedernales River flows; and |
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| 183 | 183 | | (B) in which the birthplace of a president of the |
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| 184 | 184 | | United States is located; |
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| 185 | 185 | | (30) a municipality that contains a portion of U.S. |
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| 186 | 186 | | Highway 79 and State Highway 130; |
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| 187 | 187 | | (31) a municipality with a population of 70,000 or |
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| 188 | 188 | | more but less than 115,000 that is located in two counties, one of |
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| 189 | 189 | | which has a population of 1.1 million or more but less than 1.9 |
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| 190 | 190 | | million; |
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| 191 | 191 | | (32) a municipality with a population of less than |
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| 192 | 192 | | 25,000 that contains a museum of Western American art; |
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| 193 | 193 | | (33) a municipality with a population of 50,000 or |
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| 194 | 194 | | more that is the county seat of a county that contains a portion of |
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| 195 | 195 | | the Sam Houston National Forest; |
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| 196 | 196 | | (34) a municipality with a population of less than |
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| 197 | 197 | | 25,000 that: |
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| 198 | 198 | | (A) contains a cultural heritage museum; and |
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| 199 | 199 | | (B) is located in a county that borders the |
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| 200 | 200 | | United Mexican States and the Gulf of Mexico; |
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| 201 | 201 | | (35) a municipality that is the county seat of a county |
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| 202 | 202 | | that: |
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| 203 | 203 | | (A) has a population of 115,000 or more; |
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| 204 | 204 | | (B) is adjacent to a county with a population of |
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| 205 | 205 | | 2.1 million or more; and |
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| 206 | 206 | | (C) hosts an annual peach festival; |
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| 207 | 207 | | (36) a municipality that is the county seat of a county |
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| 208 | 208 | | that: |
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| 209 | 209 | | (A) has a population of 800,000 or more; and |
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| 210 | 210 | | (B) is adjacent to a county with a population of |
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| 211 | 211 | | four million or more; |
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| 212 | 212 | | (37) a municipality with a population of less than |
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| 213 | 213 | | 10,000 that: |
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| 214 | 214 | | (A) contains a component university of The |
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| 215 | 215 | | Texas A&M University System; and |
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| 216 | 216 | | (B) is located in a county adjacent to a county |
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| 217 | 217 | | that borders Oklahoma; |
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| 218 | 218 | | (38) a municipality with a population of less than |
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| 219 | 219 | | 17,000 that: |
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| 220 | 220 | | (A) is located in two counties, each of which has |
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| 221 | 221 | | a population of 900,000 or more but less than two million; and |
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| 222 | 222 | | (B) hosts an annual Cajun Festival; |
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| 223 | 223 | | (39) a municipality with a population of 13,000 or |
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| 224 | 224 | | more that: |
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| 225 | 225 | | (A) is located on an international border; and |
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| 226 | 226 | | (B) is located in a county: |
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| 227 | 227 | | (i) with a population of less than 400,000; |
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| 228 | 228 | | and |
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| 229 | 229 | | (ii) in which at least one World Birding |
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| 230 | 230 | | Center site is located; |
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| 231 | 231 | | (40) a municipality with a population of 3,200 or more |
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| 232 | 232 | | that: |
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| 233 | 233 | | (A) is located on an international border; and |
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| 234 | 234 | | (B) is located not more than five miles from a |
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| 235 | 235 | | state historic site that serves as a visitor center for a state park |
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| 236 | 236 | | that contains 300,000 or more acres of land; |
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| 237 | 237 | | (41) a municipality with a population of 36,000 or |
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| 238 | 238 | | more that is adjacent to at least two municipalities described by |
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| 239 | 239 | | Subdivision (15); |
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| 240 | 240 | | (42) a municipality with a population of 28,000 or |
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| 241 | 241 | | more that is located in a county with a population of 240,000 or |
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| 242 | 242 | | more that contains a portion of the Blanco River and in which is |
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| 243 | 243 | | located a historic railroad depot and heritage center; |
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| 244 | 244 | | (43) a municipality located in a county that has a |
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| 245 | 245 | | population of not more than 300,000 and in which a component |
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| 246 | 246 | | university of the University of Houston System is located; |
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| 247 | 247 | | (44) a municipality with a population of less than |
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| 248 | 248 | | 500,000 that is: |
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| 249 | 249 | | (A) located in two counties; and |
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| 250 | 250 | | (B) adjacent to a municipality described by |
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| 251 | 251 | | Subdivision (31); |
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| 252 | 252 | | (45) a municipality that: |
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| 253 | 253 | | (A) has a population of more than 67,000; and |
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| 254 | 254 | | (B) is located in two counties with 90 percent of |
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| 255 | 255 | | the municipality's territory located in a county with a population |
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| 256 | 256 | | of at least 800,000, and the remaining territory located in a county |
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| 257 | 257 | | with a population of at least four million; |
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| 258 | 258 | | (46) a municipality that: |
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| 259 | 259 | | (A) has a population of 100,000 or more; and |
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| 260 | 260 | | (B) is wholly located in, but is not the county |
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| 261 | 261 | | seat of, a county with a population of one million or more: |
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| 262 | 262 | | (i) in which all or part of a municipality |
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| 263 | 263 | | with a population of one million or more is located; and |
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| 264 | 264 | | (ii) that is adjacent to a county with a |
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| 265 | 265 | | population of 2.5 million or more; |
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| 266 | 266 | | (47) a municipality that is the county seat of a county |
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| 267 | 267 | | bordering the Gulf of Mexico and the United Mexican States; |
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| 268 | 268 | | (48) a municipality that is bisected by the Guadalupe |
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| 269 | 269 | | River and is the county seat of a county with a population of |
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| 270 | 270 | | 170,000 or more; |
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| 271 | 271 | | (49) a municipality with a population of 70,000 or |
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| 272 | 272 | | more but less than 150,000 that borders Joe Pool Lake; |
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| 273 | 273 | | (50) a municipality with a population of 115,000 or |
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| 274 | 274 | | more that borders the Neches River; |
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| 275 | 275 | | (51) a municipality described by Section 351.101(k); |
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| 276 | 276 | | (52) a municipality that is the county seat of a |
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| 277 | 277 | | county: |
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| 278 | 278 | | (A) through which the Brazos River flows; and |
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| 279 | 279 | | (B) in which a national monument is located; |
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| 280 | 280 | | (53) a municipality with a population of 45,000 or |
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| 281 | 281 | | more that: |
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| 282 | 282 | | (A) is not the county seat of a county; |
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| 283 | 283 | | (B) is located in a single county; and |
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| 284 | 284 | | (C) contains a portion of Lake Lewisville; |
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| 285 | 285 | | (54) a municipality that is the county seat of a county |
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| 286 | 286 | | with a population of more than 900,000 that is adjacent to two |
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| 287 | 287 | | counties, each of which has a population of more than 1.8 million; |
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| 288 | 288 | | (55) a municipality that hosts an annual wine festival |
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| 289 | 289 | | and is located in three counties, each of which has a population of |
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| 290 | 290 | | more than 900,000; |
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| 291 | 291 | | (56) a municipality that has a population of at least |
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| 292 | 292 | | 150,000 but less than 1,300,000 and is partially located in a county |
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| 293 | 293 | | that contains a portion of Cedar Creek Reservoir; |
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| 294 | 294 | | (57) a municipality that is located in a county that |
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| 295 | 295 | | contains a portion of Cedar Creek Reservoir and in which a private |
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| 296 | 296 | | college is located; |
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| 297 | 297 | | (58) a municipality that is the county seat of a |
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| 298 | 298 | | county: |
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| 299 | 299 | | (A) with a population of one million or more; |
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| 300 | 300 | | (B) in which all or part of a municipality with a |
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| 301 | 301 | | population of one million or more is located; and |
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| 302 | 302 | | (C) that is located adjacent to a county with a |
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| 303 | 303 | | population of 2.5 million or more; |
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| 304 | 304 | | (59) a municipality that is the county seat of a county |
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| 305 | 305 | | that contains a portion of Cedar Creek Reservoir and borders a |
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| 306 | 306 | | county with a population of more than 240,000; |
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| 307 | 307 | | (60) a municipality with a population of more than |
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| 308 | 308 | | 80,000 but less than 150,000 that is located in a county with a |
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| 309 | 309 | | population of more than 369,000 but less than 864,000 that contains |
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| 310 | 310 | | part of an active duty United States Army installation; |
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| 311 | 311 | | (61) a municipality with a population of 750,000 or |
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| 312 | 312 | | more that is located in a county with a population of 1.5 million or |
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| 313 | 313 | | less; |
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| 314 | 314 | | (62) a municipality with a population of less than |
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| 315 | 315 | | 7,000 that contains a country music hall of fame; |
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| 316 | 316 | | (63) a municipality with a population of 35,000 or |
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| 317 | 317 | | more that contains a railroad museum and is located in a county |
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| 318 | 318 | | that: |
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| 319 | 319 | | (A) has a population of 800,000 or more; and |
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| 320 | 320 | | (B) is adjacent to a county with a population of |
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| 321 | 321 | | four million or more; [and] |
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| 322 | 322 | | (64) a municipality: |
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| 323 | 323 | | (A) that is the county seat of a county: |
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| 324 | 324 | | (i) with a population of 60,000 or less; and |
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| 325 | 325 | | (ii) that borders the Rio Grande; and |
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| 326 | 326 | | (B) in which is located a United States military |
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| 327 | 327 | | fort listed in the National Register of Historic Places; and |
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| 328 | 328 | | (65) a municipality described by Section |
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| 329 | 329 | | 334.0082(a)(2), Local Government Code. |
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| 330 | 330 | | SECTION 5. To the extent of any conflict, this Act prevails |
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| 331 | 331 | | over another Act of the 89th Legislature, Regular Session, 2025, |
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| 332 | 332 | | relating to nonsubstantive additions to and corrections in enacted |
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| 333 | 333 | | codes. |
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| 334 | 334 | | SECTION 6. This Act takes effect immediately if it receives |
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| 335 | 335 | | a vote of two-thirds of all the members elected to each house, as |
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| 336 | 336 | | provided by Section 39, Article III, Texas Constitution. If this |
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| 337 | 337 | | Act does not receive the vote necessary for immediate effect, this |
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| 338 | 338 | | Act takes effect September 1, 2025. |
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