By Coleman H.B. No. 2282
A BILL TO BE ENTITLED
1-1 AN ACT
1-2 relating to certain hotel facilities.
1-3 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
1-4 SECTION 1. Subsection (2) of Section 351.001 of the Tax Code
1-5 is amended to read as follows:
1-6 "(2) 'Convention center facilities' or 'convention
1-7 center complex' means civic centers, civic center buildings,
1-8 auditoriums, exhibition halls, and coliseums that are owned by the
1-9 municipality or other governmental entity or that are managed in
1-10 whole or part by the municipality, hotels owned by the municipality
1-11 or a nonprofit municipally-sponsored local government corporation
1-12 created pursuant to Article 1528l, Tex. Rev. Civ. Stat. Ann.,
1-13 within 1,000 feet of a convention center owned by a municipality
1-14 with a population of 1,500,000 or more, or an historic hotel owned
1-15 by a municipality or a nonprofit municipally-sponsored local
1-16 government corporation created pursuant to Article 1528l, Tex. Rev.
1-17 Civ. Stat. Ann., within one (1) mile of a convention center owned
1-18 by a municipality with a population of 1,500,000 or more. The term
1-19 includes parking areas or facilities that are for the parking or
1-20 storage of conveyances and that are located at or in the
1-21 <immediate> vicinity of other convention center facilities."
1-22 SECTION 2. Subsection (a) of Section 352.101 of the Tax Code
1-23 is amended to read as follows:
2-1 "(a) The revenue from a tax imposed under this chapter by a
2-2 county having a population of more than two million may be used
2-3 only for:
2-4 (1) the acquisition of sites for and the construction,
2-5 improvement, enlarging, equipping, repairing, operation, and
2-6 maintenance of public improvements such as civic centers, civic
2-7 center buildings, auditoriums, exhibition halls, coliseums, and
2-8 stadiums, including sports and other facilities that serve the
2-9 purpose of attracting visitors and tourists to the county, and
2-10 parking areas or facilities for the parking or storage of motor
2-11 vehicles or other conveyances, hotels owned by a municipality or a
2-12 nonprofit municipally-sponsored local government corporation
2-13 created pursuant to Article 1528l, Tex. Rev. Civ. Stat. Ann.,
2-14 within 1,000 feet of a convention center owned by a municipality
2-15 with a population of 1,500,000 or more, or an historic hotel owned
2-16 by a municipality or a nonprofit municipally-sponsored local
2-17 government corporation created pursuant to Article 1528l, Tex. Rev.
2-18 Civ. Stat. Ann., within one (1) mile <located at or in the
2-19 vicinity> of <the> a convention center <facilities> owned by a
2-20 municipality with a population of 1,500,000 or more;
2-21 (2) the furnishing of facilities, personnel, and
2-22 materials for the registration of convention delegates or
2-23 registrants; and
2-24 (3) general promotion and tourist advertising of the
2-25 county and its vicinity and conducting a solicitation program to
3-1 attract conventions and visitors, any of which may be conducted by
3-2 the county or through contracts with persons or organizations
3-3 selected by the county."
3-4 SECTION 3. Subsection (a) of Section 351.102 of the Tax Code
3-5 is amended to read as follows:
3-6 "(a) Subject to the limitations provided by this subchapter,
3-7 a municipality may pledge the revenue derived from the tax imposed
3-8 under this chapter for the payment of bonds that are issued under
3-9 Section 3, Chapter 63, Acts of the 59th Legislature, Regular
3-10 Session, 1965 (Article 1269j-4.1, Vernon's Texas Civil Statutes),
3-11 for one or more of the purposes provided by Section 351.101, or in
3-12 the case of a municipality of 1,500,000 or more, for the payment of
3-13 principal or interest on bonds or other obligations of a
3-14 municipally-sponsored local government corporation created pursuant
3-15 to Article 1528l, Tex. Rev. Civ. Stat. Ann., which were issued to
3-16 pay the cost of the acquisition and construction of a convention
3-17 center hotel or the cost of acquisition, remodeling or
3-18 rehabilitation of an historic hotel structure. Any such pledge of
3-19 revenue from a tax imposed under this chapter by a municipality
3-20 with a population of 1,500,000 or more shall take priority over any
3-21 limitation on the use of such tax set forth in Section 351.103 or
3-22 in another ordinance of such a municipality."
3-23 SECTION 4. Subsection (a) of Sec. 2 of Article 1269j-4.1,
3-24 Tex. Rev. Civ. Stat. Ann., is amended to read as follows:
3-25 "(a) Any such city is hereby authorized to establish,
4-1 acquire, lease as lessee or lessor, purchase, construct, improve,
4-2 enlarge, equip, repair, operate or maintain (any or all) <public>
4-3 improvements such as civic centers, civic center buildings,
4-4 auditoriums, opera houses, music halls, exhibition halls,
4-5 coliseums, museums, libraries, or other city buildings (either or
4-6 all), and golf courses, tennis courts, and other similar
4-7 recreational facilities, hotels owned by a municipality or a
4-8 nonprofit municipally-sponsored local government corporation
4-9 created pursuant to Article 1528l, Tex. Rev. Civ. Stat. Ann.,
4-10 within 1,000 feet of a convention center owned by a municipality
4-11 with a population of 1,500,000 or more, or an historic hotel owned
4-12 by a municipality or a nonprofit municipally-sponsored local
4-13 government corporation created pursuant to Article 1528l, Tex. Rev.
4-14 Civ. Stat. Ann., within one (1) mile of a convention center owned
4-15 by a municipality with a population of 1,500,000 or more, and to
4-16 establish, acquire, lease as lessee or lessor, purchase, construct,
4-17 improve, enlarge, equip, repair, operate or maintain (any or all)
4-18 structures, parking areas, or facilities, located at or in the
4-19 immediate vicinity of such public improvements, to be used in
4-20 connection with such <public> improvements for off-street parking
4-21 or storage of motor vehicles or other conveyances; and provided
4-22 that any such lease shall be on such terms and conditions as said
4-23 city shall deem appropriate."
4-24 SECTION 5. Paragraph (11) of subsection (a) of Sec. 3 of
4-25 Art. 5190.7, Tex. Rev. Civ. Stat. Ann., is amended to read as
5-1 follows:
5-2 "(11) 'Qualified business' means a person, including a
5-3 corporation or other entity, that the department, for purposes of
5-4 state benefits under this Act, and a governing body, for purposes
5-5 of local benefits, certifies to have met the following criteria:
5-6 (A) the person is engaged in or has provided
5-7 substantial commitment to initiate the active conduct of a trade or
5-8 business in the zone; and
5-9 (B) at least 25 percent of the business's new
5-10 employees in the zone are residents of any zone within the
5-11 governing body's or bodies' jurisdiction or economically
5-12 disadvantaged individuals; or
5-13 (C) is a Qualified Hotel Project which is owned
5-14 by a municipality with a population of 1,500,000 or more or a
5-15 nonprofit municipally-sponsored local government corporation
5-16 created pursuant to Article 1528l, Tex. Rev. Civ. Stat. Ann.,."
5-17 SECTION 6. Subsection (a) of Sec. 3 of Art. 5190.7, Tex.
5-18 Rev. Civ. Stat. Ann., is amended by adding the following new
5-19 paragraphs (14) and (15):
5-20 "(14) 'Qualified Hotel Project' means a hotel proposed
5-21 to be constructed by a municipality or a nonprofit
5-22 municipally-sponsored local government corporation created pursuant
5-23 to Article 1528l, Tex. Rev. Civ. Stat. Ann., which is within 1,000
5-24 feet of a convention center owned by a municipality having a
5-25 population of 1,500,000 or more, or a hotel that has been
6-1 designated as an historic structure and placed in the National
6-2 Register of Historic Places, which is proposed to be rehabilitated
6-3 or remodeled by a municipality or a nonprofit municipally-sponsored
6-4 local government corporation created pursuant to Article 1528l,
6-5 Tex. Rev. Civ. Stat. Ann., which is within one (1) mile of a
6-6 convention center owned by a municipality with a population of
6-7 1,500,000 or more, including all facilities ancillary thereto such
6-8 as shops and parking facilities.
6-9 A Qualified Hotel Project shall be deemed to have met the
6-10 employment, income, and other criteria of a qualified business and
6-11 an enterprise project, and the enterprise zone in which the
6-12 Qualified Hotel Project is located shall be deemed to have met all
6-13 qualifications of this Act to permit the department to designate
6-14 the Qualified Hotel Project as an enterprise project.
6-15 (15) 'Eligible Taxable Proceeds' means taxable
6-16 proceeds generated or paid by or collected by a Qualified Hotel
6-17 Project or a business at a Qualified Hotel Project including hotel
6-18 occupancy taxes, ad valorem taxes, sales and use taxes, and mixed
6-19 beverage taxes."
6-20 SECTION 7. Sec. 13 of Article 5190.7, Tex. Rev. Civ. Stat.
6-21 Ann., is amended to read as follows:
6-22 "(a) To promote the public health, safety, or welfare, the
6-23 governing body of a municipality or county may establish a program
6-24 by which it reduces or eliminates any fees or taxes, other than
6-25 sales and use or property taxes, that it imposes on a qualified
7-1 business or qualified employee. The governing body of a
7-2 municipality or county may not reduce or eliminate local sales and
7-3 use taxes except to the extent it grants a rebate or refund or
7-4 provides a payment under this Section or Section 12 of this Act.
7-5 (b) A municipality, county, political subdivision or other
7-6 governmental body may enter into an agreement to rebate, refund or
7-7 pay Eligible Taxable Proceeds to the owner of the Qualified Hotel
7-8 Project at which such Eligible Taxable Proceeds were generated or
7-9 collected. A municipality with a population of 1,500,000 or more
7-10 may enter into an agreement to guarantee from hotel occupancy taxes
7-11 the bonds or other obligations of a municipally-sponsored local
7-12 government corporation created pursuant to Article 1528l, Tex. Rev.
7-13 Civ. Stat. Ann., which were issued or incurred to pay the cost of
7-14 constructing, remodeling or rehabilitating a Qualified Hotel
7-15 Project. Any agreement must be in writing, contain an expiration
7-16 date, and require the beneficiary to provide documentation
7-17 necessary to support a claim. The municipality, county, political
7-18 subdivision or other governmental body which enters into any such
7-19 agreement shall make the rebate, refund or payment directly to the
7-20 beneficiary set out in the agreement."
7-21 SECTION 8. Add after Sec. 10 of Article 5190.7, Tex. Rev.
7-22 Civ. Stat. Ann., a new Sec. 10A as follows:
7-23 "Sec. 10A. A Qualified Hotel Project may be designated by
7-24 the department as an enterprise project prior to or after August
7-25 31, 1993. New permanent jobs created by the Qualified Hotel
8-1 Project shall not be considered in determining the number of
8-2 enterprise projects which the department may approve pursuant to
8-3 the other provisions of this Act."
8-4 SECTION 9. Amend Section 151.429 of the Tax Code by amending
8-5 subsection (e) to read as follows:
8-6 "(e) In this section, 'enterprise project,' 'enterprise
8-7 zone,' 'Qualified Hotel Project,' 'new permanent job,' and
8-8 'qualified employee' have the meanings assigned to those terms by
8-9 Section 3, Texas Enterprise Zone Act (Article 5190.7, Vernon's
8-10 Texas Civil Statutes)."
8-11 SECTION 10. Amend Section 151.429 of the Tax Code by adding
8-12 a new subsection (h) as follows:
8-13 "(h) Notwithstanding the other provisions of this Section,
8-14 the owner of a Qualified Hotel Project shall receive a rebate,
8-15 refund or payment of 100% of the sales and use taxes paid or
8-16 collected by the Qualified Hotel Project or businesses located in
8-17 the Qualified Hotel Project, pursuant to this Chapter 151 and 100%
8-18 of the hotel occupancy taxes paid by persons for the use or
8-19 possession or for the right to the use or possession of a room or
8-20 space at the Qualified Hotel Project pursuant to the provisions of
8-21 Chapter 156 during the first seven (7) years after such Qualified
8-22 Hotel Project is open for initial occupancy."
8-23 EMERGENCY. The importance of this legislation and the
8-24 crowded condition of the calendars in both houses create an
8-25 emergency and an imperative public necessity that the
9-1 constitutional rule requiring bills to be read on three several
9-2 days in each house be suspended, and this rule is hereby suspended,
9-3 and that this Act take effect and be in force from and after its
9-4 passage, and it is so enacted.