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A BILL TO BE ENTITLED
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AN ACT
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relating to the authority of certain municipalities to receive |
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certain tax revenue derived from a hotel and convention center |
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project and to pledge certain tax revenue for the payment of |
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obligations related to the project. |
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BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: |
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SECTION 1. Sections 351.001(12), Tax Code, is amended to |
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read as follows: |
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(12) "Retail establishment" means an establishment |
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engaged in activities described by North American Industry |
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Classification System subsector code 442, 443, 445, 446, 448, 451, |
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452, [or] 453, or 713. |
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SECTION 2. Section 351.152, Tax Code, is amended to read as |
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follows: |
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Sec. 351.152. APPLICABILITY. This subchapter applies only |
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to: |
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(1) a municipality described by Section |
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351.001(7)(B); |
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(2) a municipality described by Section |
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351.001(7)(D); |
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(3) a municipality described by Section |
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351.001(7)(E); |
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(4) a municipality described by Section |
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351.102(e)(3); |
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(5) a municipality that contains more than 75 percent |
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of the population of a county with a population of 1.5 million or |
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more; |
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(6) a municipality with a population of 150,000 or |
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more but less than 200,000 that is partially located in at least one |
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county with a population of 125,000 or more; |
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(7) a municipality with a population of 150,000 or |
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more but less than one million that is located in one county with a |
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population of 2.3 million or more; |
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(8) a municipality with a population of 180,000 or |
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more that: |
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(A) is located in two counties, each with a |
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population of 100,000 or more; and |
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(B) contains an American Quarter Horse Hall of |
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Fame and Museum; |
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(9) a municipality with a population of 96,000 or more |
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that is located in a county that borders Lake Palestine; |
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(10) a municipality with a population of 96,000 or |
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more that is located in a county that contains the headwaters of the |
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San Gabriel River; |
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(11) a municipality with a population of 99,900 or |
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more but less than 111,000 that is located in a county with a |
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population of 135,000 or more; |
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(12) a municipality with a population of 110,000 or |
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more but less than 135,000 at least part of which is located in a |
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county with a population of less than 135,000; |
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(13) a municipality with a population of 9,000 or more |
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but less than 10,000 that is located in two counties, each of which |
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has a population of 662,000 or more and a southern border with a |
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county with a population of 2.3 million or more; |
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(14) a municipality with a population of 200,000 or |
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more but less than 300,000 that contains a component institution of |
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the Texas Tech University System; |
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(15) a municipality with a population of 95,000 or |
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more that: |
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(A) is located in more than one county; and |
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(B) borders Lake Lewisville; |
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(16) a municipality with a population of 45,000 or |
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more that: |
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(A) contains a portion of Cedar Hill State Park; |
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(B) is located in two counties, one of which has a |
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population of two million or more and one of which has a population |
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of 149,000 or more; and |
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(C) has adopted a capital improvement plan for |
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the construction or expansion of a convention center facility; |
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(17) a municipality with a population of less than |
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6,000 that: |
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(A) is almost wholly located in a county with a |
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population of 600,000 or more that is adjacent to a county with a |
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population of two million or more; |
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(B) is partially located in a county with a |
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population of 1.8 million or more that is adjacent to a county with |
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a population of two million or more; |
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(C) has a visitor center and museum located in a |
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19th-century rock building in the municipality's downtown; and |
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(D) has a waterpark open to the public; |
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(18) a municipality with a population of 56,000 or |
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more that: |
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(A) borders Lake Ray Hubbard; and |
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(B) is located in two counties, one of which has a |
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population of less than 80,000; |
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(19) a municipality with a population of 83,000 or |
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more that: |
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(A) borders Clear Lake; and |
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(B) is primarily located in a county with a |
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population of less than 300,000; |
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(20) a municipality with a population of less than |
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2,000 that: |
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(A) is located adjacent to a bay connected to the |
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Gulf of Mexico; |
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(B) is located in a county with a population of |
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290,000 or more that is adjacent to a county with a population of |
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four million or more; and |
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(C) has a boardwalk on the bay; |
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(21) a municipality with a population of 75,000 or |
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more that: |
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(A) is located wholly in one county with a |
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population of 575,000 or more that is adjacent to a county with a |
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population of four million or more; and |
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(B) has adopted a capital improvement plan for |
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the construction or expansion of a convention center facility; |
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(22) a municipality with a population of less than |
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75,000 that is located in three counties, at least one of which has |
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a population of four million or more; |
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(23) an eligible coastal municipality with a |
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population of 3,000 or more but less than 5,000; |
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(24) a municipality with a population of 90,000 or |
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more but less than 150,000 that: |
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(A) is located in three counties; and |
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(B) contains a branch campus of a component |
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|
institution of the University of Houston System; |
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(25) a municipality that is: |
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(A) primarily located in a county with a |
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population of four million or more; and |
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(B) connected by a bridge to a municipality |
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described by Subdivision (20); |
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(26) a municipality with a population of 20,000 or |
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more but less than 25,000 that: |
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(A) contains a portion of Mustang Bayou; and |
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(B) is wholly located in a county with a |
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population of less than 500,000; |
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(27) a municipality with a population of 70,000 or |
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more but less than 90,000 that is located in two counties, one of |
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which has a population of four million or more and the other of |
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which has a population of less than 50,000; |
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(28) a municipality with a population of 10,000 or |
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more that: |
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(A) is wholly located in a county with a |
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population of four million or more; and |
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(B) has a city hall located less than three miles |
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from a space center operated by an agency of the federal government; |
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(29) a municipality that is the county seat of a |
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county: |
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(A) through which the Pedernales River flows; and |
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(B) in which the birthplace of a president of the |
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United States is located; |
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(30) a municipality that contains a portion of U.S. |
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Highway 79 and State Highway 130; |
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(31) a municipality with a population of 48,000 or |
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more but less than 95,000 that is located in two counties, one of |
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which has a population of 900,000 or more but less than 1.7 million; |
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(32) a municipality with a population of less than |
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25,000 that contains a museum of Western American art; |
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(33) a municipality with a population of 50,000 or |
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more that is the county seat of a county that contains a portion of |
|
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the Sam Houston National Forest; |
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(34) a municipality with a population of less than |
|
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25,000 that: |
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(A) contains a cultural heritage museum; and |
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(B) is located in a county that borders the |
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United Mexican States and the Gulf of Mexico; |
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(35) a municipality that is the county seat of a county |
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that: |
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(A) has a population of 115,000 or more; |
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(B) is adjacent to a county with a population of |
|
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1.8 million or more; and |
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(C) hosts an annual peach festival; |
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(36) a municipality that is the county seat of a county |
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that: |
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(A) has a population of 585,000 or more; and |
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(B) is adjacent to a county with a population of |
|
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four million or more; |
|
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(37) a municipality with a population of less than |
|
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10,000 that: |
|
|
(A) contains a component university of The Texas |
|
|
A&M University System; and |
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(B) is located in a county adjacent to a county |
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that borders Oklahoma; |
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(38) a municipality with a population of less than |
|
|
6,100 that: |
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(A) is located in two counties, each of which has |
|
|
a population of 600,000 or more but less than two million; and |
|
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(B) hosts an annual Cajun Festival; |
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|
(39) a municipality with a population of 13,000 or |
|
|
more that: |
|
|
(A) is located on an international border; and |
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(B) is located in a county: |
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(i) with a population of less than 400,000; |
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and |
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(ii) in which at least one World Birding |
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Center site is located; |
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(40) a municipality with a population of 4,000 or more |
|
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that: |
|
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(A) is located on an international border; and |
|
|
(B) is located not more than five miles from a |
|
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state historic site that serves as a visitor center for a state park |
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that contains 300,000 or more acres of land; |
|
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(41) a municipality with a population of 36,000 or |
|
|
more that is adjacent to at least two municipalities described by |
|
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Subdivision (15); |
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(42) a municipality with a population of 28,000 or |
|
|
more that is located in a county with a population of 240,000 or |
|
|
more in which is located a portion of the Balcones River and a |
|
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historic railroad depot and heritage center; |
|
|
(43) a municipality located in a county that has a |
|
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population of not more than 300,000 and in which a component |
|
|
university of the University of Houston System is located; |
|
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(44) a municipality with a population of less than |
|
|
500,000 that is: |
|
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(A) located in two counties; and |
|
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(B) adjacent to a municipality described by |
|
|
Subdivision (31); [and] |
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(45) a municipality that: |
|
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(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 |
|
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of at least 580,000, and the remaining territory located in a county |
|
|
with a population of at least four million; |
|
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(46) a municipality that: |
|
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(A) has a population of 100,000 or more; and |
|
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(B) is wholly located in, but is not the county |
|
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seat of, a county with a population of one million or more: |
|
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(i) in which all or part of a municipality |
|
|
with a population of one million or more is located; and |
|
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(ii) that is adjacent to a county with a |
|
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population of 2.5 million or more; |
|
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(47) a municipality that contains an intersection of |
|
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Interstates 35E and 35W and at least two public universities; |
|
|
(48) a municipality that is the county seat of a county |
|
|
bordering the Gulf of Mexico and the United Mexican States; |
|
|
(49) a municipality that is bisected by the Guadalupe |
|
|
River and is the county seat of a county with a population of |
|
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170,000 or more; |
|
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(50) a municipality with a population of 70,000 or |
|
|
more but less than 150,000 that borders Joe Pool Lake; |
|
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(51) a municipality with a population of 115,000 or |
|
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more that borders the Neches River; |
|
|
(52) a municipality described by Section 351.101(k); |
|
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(53) a municipality that is the county seat of a |
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county: |
|
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(A) through which the Brazos River flows; and |
|
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(B) in which a national monument is located; |
|
|
(54) a municipality that: |
|
|
(A) contains a historical commercial district |
|
|
designated on the National Register of Historic Places and hosts an |
|
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annual Grapefest event; |
|
|
(B) has a population of 50,000 or more; and |
|
|
(C) is partially located in three counties all of |
|
|
which has a population of 900,000 or more; |
|
|
(55) a municipality with a population of 45,000 or |
|
|
more that: |
|
|
(A) is not the county seat of a county; |
|
|
(B) is located in a single county; and |
|
|
(C) contains a portion of Lake Lewisville; |
|
|
(56) a municipality that has a population of at least |
|
|
150,000 and is partially located in a county that contains a portion |
|
|
of Cedar Creek Reservoir and has a population of at least |
|
|
145,00054); and |
|
|
(57) a municipality that: |
|
|
(A) has an institution of higher education |
|
|
designated as an historical black college and university; |
|
|
(B) has a population of 17,400 or more; and |
|
|
(C) is located a county with a population of |
|
|
145,000 or more that is adjacent to a county with a population of |
|
|
2.6 million or more. |
|
|
SECTION 3. Section 351.155, Tax Code, is amended by adding |
|
|
Subsection (f) to read as follows: |
|
|
(f) This subsection applies only to a municipality |
|
|
described by Section 351.152(52). A municipality to which this |
|
|
subsection applies may pledge or commit the revenue derived from |
|
|
the tax imposed under this chapter from a qualified hotel and the |
|
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revenue to which the municipality is entitled under Section 351.156 |
|
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for the payment of bonds or other obligations issued for a |
|
|
convention center facility that, at the time the bonds or other |
|
|
obligations were issued, was not a qualified convention center |
|
|
facility. |
|
|
SECTION 4. Section 351.157, Tax Code, is amended by adding |
|
|
the following subsections to read as follows: |
|
|
(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 |
|
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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); |
|
|
(11) a municipality described by Section 351.152(38); |
|
|
and |
|
|
(12) a municipality described by Section |
|
|
351.152(43).; and |
|
|
(13) a municipality described by Section 351.152(46) |
|
|
(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): |
|
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(1) for a municipality described by Subsection (b)(1): |
|
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(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; |
|
|
(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; and. |
|
|
(13) for a municipality described by Subsection |
|
|
(b)(13), restaurants, bars and retail establishments. |
|
|
SECTION 5. Chapter 351, Tax Code, is amended by adding |
|
|
Subchapter D to read as follows: |
|
|
SUBCHAPTER D. RECEIPT OF CERTAIN REVENUE BY CERTAIN MUNICIPALITIES |
|
|
Sec. 351.201. EXTENSION OF PERIOD OF ENTITLEMENT TO CERTAIN |
|
|
REVENUE FOR CERTAIN MUNICIPALITIES. (a) This section applies only |
|
|
to a municipality or nonprofit corporation acting on behalf of a |
|
|
municipality that received or was entitled to receive a rebate, |
|
|
refund, or payment of taxes under Section 151.429(h), 351.102, |
|
|
351.156, or 351.157 at any time during the period beginning March |
|
|
12, 2020, and ending January 1, 2021, relating to a hotel project or |
|
|
qualified hotel, convention center facility, or establishment, as |
|
|
applicable. |
|
|
(b) Notwithstanding any other law, a municipality or |
|
|
nonprofit corporation acting on behalf of a municipality to which |
|
|
this section applies and that is otherwise entitled to receive |
|
|
revenue under Section 151.429(h), 351.1015, 351.102, 351.156, or |
|
|
351.157 for the period following the date on which the qualifying |
|
|
hotel to which the entitlement relates is open for initial |
|
|
occupancy is entitled to receive that revenue for an additional |
|
|
24-month period immediately following the expiration of the 10-year |
|
|
period. |
|
|
(c) A municipality or nonprofit corporation acting on |
|
|
behalf of a municipality must request the extension of the period of |
|
|
entitlement provided under Subsection (b) from the comptroller in |
|
|
the manner the comptroller specifies. The comptroller is not |
|
|
required to extend the period of entitlement under Subsection (b) |
|
|
unless the municipality or nonprofit corporation requests the |
|
|
extension. |
|
|
Sec. 351.202. EXPIRATION OF SUBCHAPTER. This subchapter |
|
|
expires January 1, 2035. |
|
|
SECTION 6. Section 351.1015(a)(4), Tax Code, is amended by |
|
|
amending Subsection (a)(4) and adding Subsection (4-a) to read as |
|
|
follows: |
|
|
(4) "Project financing zone" means an area within a |
|
|
municipality: |
|
|
(A) that the municipality by ordinance or by |
|
|
agreement under Chapter 380, Local Government Code, designates as a |
|
|
project financing zone; |
|
|
(B) the boundaries of which are: |
|
|
(i) within a three-mile radius of the |
|
|
center of a qualified project; or |
|
|
(ii) if designated by a municipality |
|
|
described by Section 351.001(7)(B), a contiguous geographic area |
|
|
located wholly within the corporate limits of the designating |
|
|
municipality that, as measured by acres, is equal to or less than |
|
|
the maximum area described by Subparagraph (i) and contains within |
|
|
it the qualified project; |
|
|
(C) the designation of which specifies the |
|
|
longitude and latitude of the center of the qualified project; and |
|
|
(D) the designation of which expires not later |
|
|
than the 30th anniversary of the date of designation. |
|
|
(4-a) "Project-associated infrastructure" means: |
|
|
(A) a hotel, store, restaurant, concession, |
|
|
automobile parking facility, theater, opera house, auditorium, |
|
|
music hall, rehearsal hall, venue and related infrastructure, |
|
|
entertainment facility, park, museum, plaza, recreational |
|
|
facility, transportation facility, road, street, water or sewer |
|
|
facility, or tourist development area that is: |
|
|
(i) located in a project financing zone; |
|
|
(ii) located on land owned, acquired, or |
|
|
leased by a municipality or by a local government corporation to |
|
|
which Subsection (j) applies; and |
|
|
(iii) related to the promotion of tourism |
|
|
and the convention and hotel industry; or |
|
|
(B) the acquisition of public or private land and |
|
|
related infrastructure that: |
|
|
(i) is located in a project financing zone; |
|
|
and |
|
|
(ii) will be used in connection with a |
|
|
purpose described by this subdivision. |
|
|
SECTION 7. Section 351.1015, Tax Code, is amended by |
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|
amending Subsections (b), (c), (d), (g), and (i) and adding |
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Subsection (j) to read as follows: |
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(b) This section applies only to a qualified project and |
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project-associated infrastructure located in: |
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(1) a municipality with a population of at least |
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[650,000] 900,000 [according to the most recent federal decennial |
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census]; or |
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(2) a municipality that is described by Section |
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351.001(7)(b). |
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(c) In addition to the uses provided by Section 351.101, |
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revenue from the municipal hotel occupancy tax may be used to fund a |
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qualified project and project-associated infrastructure. |
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(d) A municipality may pledge the revenue derived from the |
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tax imposed under this chapter from a hotel located in the project |
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financing zone for the payment of bonds or other obligations issued |
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or incurred to acquire, lease, construct, improve, enlarge, and |
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equip the qualified project and project-associated infrastructure. |
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(g) The comptroller shall deposit incremental |
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hotel-associated revenue collected by or forwarded to the |
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comptroller in a separate suspense account to be held in trust for |
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the municipality that is entitled to receive the revenue. The |
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suspense account is outside the state treasury, and the comptroller |
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may make a payment authorized by this section from the account |
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without the necessity of an appropriation. The comptroller shall |
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begin making payments from the suspense account to the municipality |
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for which the money is held on the date the qualified project or |
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project-associated infrastructure in the project financing zone is |
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commenced. If the qualified project or project-associated |
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infrastructure is not commenced by the fifth anniversary of the |
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first deposit to the account, the comptroller shall transfer the |
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money in the account to the general revenue fund and cease making |
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deposits to the account. |
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(i) A municipality shall notify the comptroller if the |
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qualified project or project-associated infrastructure in the |
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project financing zone is abandoned. If the qualified project or |
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project-associated infrastructure is abandoned, the comptroller |
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|
shall transfer to the general revenue fund the amount of money in |
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the suspense account that exceeds the amount required for the |
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payment of bonds or other obligations described by Subsection (d). |
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(j) A local government corporation to which this subsection |
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applies may act as a municipality under this section and is |
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considered to be a municipality for purposes of this section. An |
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action a municipality is required to take by ordinance or order |
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under this section may be taken by order or resolution of the |
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corporation. |
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(k) Notwithstanding any other law or a term of any ordinance |
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or agreement adopted or entered into under this section, due to the |
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effect of the COVID-19 pandemic on hotel-associated revenues, the |
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date on which a project financing zone designated under this |
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section expires is automatically extended for two years if the zone |
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was: |
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(1) designated by a municipality as a project |
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financing zone in or before 2019; and |
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(2) in existence on March 15, 2020. |
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SECTION 8. This Act takes effect September 1, 2023. |