By Rodriguez, et al. H.B. No. 1264 A BILL TO BE ENTITLED 1-1 AN ACT 1-2 relating to the rate at which certain municipalities may impose the 1-3 hotel occupancy tax and to the use of the revenue from the tax. 1-4 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: 1-5 SECTION 1. Section 351.001, Tax Code, is amended by adding 1-6 Subdivision (8) to read as follows: 1-7 (8) "Eligible central municipality" means a 1-8 municipality with a population of more than 850,000 that has 1-9 adopted a capital improvement plan for the expansion of an existing 1-10 convention center facility. 1-11 SECTION 2. Section 351.003, Tax Code, is amended by adding 1-12 Subsection (c) to read as follows: 1-13 (c) The rate in an eligible central municipality may not 1-14 exceed nine percent of the price paid for a room. This subsection 1-15 does not apply to a municipality to which Section 351.1015 or 1-16 351.106 applies. 1-17 SECTION 3. Subchapter B, Chapter 351, Tax Code, is amended 1-18 by adding Section 351.1065 to read as follows: 1-19 Sec. 351.1065. ALLOCATION OF REVENUE: ELIGIBLE CENTRAL 1-20 MUNICIPALITY. (a) An eligible central municipality shall use the 1-21 amount of revenue from the tax that is derived from the application 1-22 of the tax at a rate of more than seven percent of the cost of a 1-23 room only for: 1-24 (1) the construction of an expansion of an existing 2-1 convention center facility; and 2-2 (2) pledging payment of revenue bonds and revenue 2-3 refunding bonds issued under Chapter 63, Acts of the 59th 2-4 Legislature, Regular Session, 1965 (Article 1269j-4.1, Vernon's 2-5 Texas Civil Statutes), for the construction of the expansion. 2-6 (b) Any interest income derived from the application of the 2-7 tax at a rate of more than seven percent of the cost of a room may 2-8 be used only for the purposes provided by this section. 2-9 (c) An eligible central municipality expending tax revenue 2-10 under this section shall attempt to include minority-owned 2-11 businesses in the issuance of at least 32 percent of the total 2-12 dollar value of the bonds issued, and in at least 32 percent of the 2-13 total fees paid by the issuer, in connection with the construction. 2-14 SECTION 4. If on or after the effective date of this Act a 2-15 municipality increases the rate of the tax authorized by Section 2-16 351.003(c), Tax Code, as added by this Act, the increased tax rate 2-17 does not apply to the tax imposed on the use or possession of a 2-18 room under a contract executed before the effective date of this 2-19 Act that provides for the payment of the tax at the rate in effect 2-20 when the contract was executed, unless the contract is subject to 2-21 change or modification by reason of the tax rate increase. The tax 2-22 rate applicable to the use or possession of a room under the 2-23 contract is the rate in effect when the contract was executed, and 2-24 the law governing that rate is continued in effect for that 2-25 purpose. 2-26 SECTION 5. The importance of this legislation and the 2-27 crowded condition of the calendars in both houses create an 3-1 emergency and an imperative public necessity that the 3-2 constitutional rule requiring bills to be read on three several 3-3 days in each house be suspended, and this rule is hereby suspended, 3-4 and that this Act take effect and be in force from and after its 3-5 passage, and it is so enacted.