By: Henderson S.B. No. 862
A BILL TO BE ENTITLED
AN ACT
1-1 relating to certain hotel facilities.
1-2 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
1-3 SECTION 1. Subsection (2) of Section 351.001 of the Tax Code
1-4 is amended to read as follows:
1-5 (2) "Convention center facilities" or "convention
1-6 center complex" means civic centers, civic center buildings,
1-7 auditoriums, exhibition halls, and coliseums that are owned by the
1-8 municipality or other governmental entity or that are managed in
1-9 whole or part by the municipality, hotels owned by the municipality
1-10 or a nonprofit municipally-sponsored local government corporation
1-11 created pursuant to Article 15281, Tex. Rev. Civ. Stat. Ann.,
1-12 within 1,000 feet of a convention center owned by a municipality
1-13 with a population of 1,500,000 or more, or an historic hotel owned
1-14 by a municipality or a nonprofit municipally-sponsored local
1-15 government corporation created pursuant to Article 15281, Tex. Rev.
1-16 Civ. Stat. Ann., within one (1) mile of a convention center owned
1-17 by a municipality with a population of 1,500,000 or more. The term
1-18 includes parking areas or facilities that are for the parking or
1-19 storage of conveyances and that are located at or in the
1-20 <immediate> vicinity of other convention center facilities.
1-21 SECTION 2. Subsection (a) of Section 352.101 of the Tax Code
1-22 is amended to read as follows:
1-23 (a) The revenue from a tax imposed under this chapter by a
2-1 county having a population of more than two million may be used
2-2 only for:
2-3 (1) the acquisition of sites for and the construction,
2-4 improvement, enlarging, equipping, repairing, operation, and
2-5 maintenance of public improvements such as civic centers, civic
2-6 center buildings, auditoriums, exhibition halls, coliseums, and
2-7 stadiums, including sports and other facilities that serve the
2-8 purpose of attracting visitors and tourists to the county, and
2-9 parking areas or facilities for the parking or storage of motor
2-10 vehicles or other conveyances, hotels owned by a municipality or a
2-11 nonprofit municipally-sponsored local government corporation
2-12 created pursuant to Article 15281, Tex. Rev. Civ. Stat. Ann.,
2-13 within 1,000 feet of a convention center owned by a municipality
2-14 with a population of 1,500,000 or more, or an historic hotel owned
2-15 by a municipality or a nonprofit municipally-sponsored local
2-16 government corporation created pursuant to Article 15281, Tex. Rev.
2-17 Civ. Stat. Ann., within one (1) mile <located at or in the
2-18 vicinity> of <the> a convention center <facilities> owned by a
2-19 municipality with a population of 1,500,000 or more;
2-20 (2) the furnishing of facilities, personnel, and
2-21 materials for the registration of convention delegates or
2-22 registrants; and
2-23 (3) general promotion and tourist advertising of the
2-24 county and its vicinity and conducting a solicitation program to
2-25 attract conventions and visitors, any of which may be conducted by
3-1 the county or through contracts with persons or organizations
3-2 selected by the county.
3-3 SECTION 3. Subsection (a) of Section 351.102 of the Tax Code
3-4 is amended to read as follows: (a) Subject to the limitations
3-5 provided by this subchapter, a municipality may pledge the revenue
3-6 derived from the tax imposed under this chapter for the payment of
3-7 bonds that are issued under Section 3, Chapter 63, Acts of the 59th
3-8 Legislature, Regular Session, 1965 (Article 1269j-4.1, Vernon's
3-9 Texas Civil Statutes), for one or more of the purposes provided by
3-10 Section 351.101, or in the case of a municipality of 1,500,000 or
3-11 more, for the payment of principal or interest on bonds or other
3-12 obligations of a municipally-sponsored local government corporation
3-13 created pursuant to Article 15281, Tex. Rev. Civ. Stat. Ann., which
3-14 were issued to pay the cost of the acquisition and construction of
3-15 a convention center hotel or the cost of acquisition, remodeling or
3-16 rehabilitation of an historic hotel structure. Any such pledge of
3-17 revenue from a tax imposed under this chapter by a municipality
3-18 with a population of 1,500,000 or more shall take priority over any
3-19 limitation on the use of such tax set forth in Section 351.103 or
3-20 in another ordinance of such a municipality.
3-21 SECTION 4. Subsection (a) of Sec. 2 of Article 1269j-4.1,
3-22 Tex. Rev. Civ. Stat. Ann., is amended to read as follows:
3-23 (a) Any such city is hereby authorized to establish,
3-24 acquire, lease as lessee or lessor, purchase, construct, improve,
3-25 enlarge, equip, repair, operate or maintain (any or all) <public>
4-1 improvements such as civic centers, civic center buildings,
4-2 auditoriums, opera houses, music halls, exhibition halls,
4-3 coliseums, museums, libraries, or other city buildings (either or
4-4 all), and golf courses, tennis courts, and other similar
4-5 recreational facilities, hotels owned by a municipality or a
4-6 nonprofit municipally-sponsored local government corporation
4-7 created pursuant to Article 15281, Tex. Rev. Civ. Stat. Ann.,
4-8 within 1,000 feet of a convention center owned by a municipality
4-9 with a population of 1,500,000 or more, or an historic hotel owned
4-10 by a municipality or a nonprofit municipally-sponsored local
4-11 government corporation created pursuant to Article 15281, Tex. Rev.
4-12 Civ. Stat. Ann., within one (1) mile of a convention center owned
4-13 by a municipality with a population of 1,500,000 or more, and to
4-14 establish, acquire, lease as lessee or lessor, purchase, construct,
4-15 improve, enlarge, equip, repair, operate or maintain (any or all)
4-16 structures, parking areas, or facilities, located at or in the
4-17 immediate vicinity of such public improvements, to be used in
4-18 connection with such <public> improvements for off-street parking
4-19 or storage of motor vehicles or other conveyances; and provided
4-20 that any such lease shall be on such terms and conditions as said
4-21 city shall deem appropriate.
4-22 SECTION 5. Paragraph (11) of subsection (a) of Sec. 3 of
4-23 Art. 5190.7, Tex. Rev. Civ. Stat. Ann., is amended to read as
4-24 follows:
4-25 (11) "Qualified business" means a person, including a
5-1 corporation or other entity, that the department, for purposes of
5-2 state benefits under this Act, and a governing body, for purposes
5-3 of local benefits, certifies to have met the following criteria:
5-4 (A) the person is engaged in or has provided
5-5 substantial commitment to initiate the active conduct of a trade or
5-6 business in the zone; and
5-7 (B) at least 25 percent of the business's new
5-8 employees in the zone are residents of any zone within the
5-9 governing body's or bodies' jurisdiction or economically
5-10 disadvantaged individuals; or
5-11 (C) is a Qualified Hotel Project which is owned
5-12 by a municipality with a population of 1,500,000 or more or a
5-13 nonprofit municipally-sponsored local government corporation
5-14 created pursuant to Article 15281, Tx. Rev. Civ. Stat. Ann.,.
5-15 SECTION 6. Subsection (a) of Sec. 3 of Art. 5190.7, Tex.
5-16 Rev. Civ. Stat. Ann., is amended by adding the following new
5-17 paragraphs (14) and (15):
5-18 (14) "Qualified Hotel Project" means a hotel proposed
5-19 to be constructed by a municipality or a nonprofit
5-20 municipally-sponsored local government corporation created pursuant
5-21 to Article 15281, Tex. Rev. Civ. Stat. Ann., which is within 1,000
5-22 feet of a convention center owned by a municipality having a
5-23 population of 1,500,000 or more, or a hotel that has been
5-24 designated as an historic structure and placed in the National
5-25 Register of Historic Places, which is proposed to be rehabilitated
6-1 or remodeled by a municipality or a nonprofit municipally-sponsored
6-2 local government corporation created pursuant to Article 15281,
6-3 Tex. Rev. Civ. Stat. Ann., which is within one (1) mile of a
6-4 convention center owned by a municipality with a population of
6-5 1,500,000 or more, including all facilities ancillary thereto such
6-6 as shops and parking facilities.
6-7 A Qualified Hotel Project shall be deemed to have met the
6-8 employment, income, and other criteria of a qualified business and
6-9 an enterprise project, and the enterprise zone in which the
6-10 Qualified Hotel Project is located shall be deemed to have met all
6-11 qualifications of this Act to permit the department to designate
6-12 the Qualified Hotel Project as an enterprise project.
6-13 (15) "Eligible Taxable Proceeds" means taxable
6-14 proceeds generated or paid by or collected by a Qualified Hotel
6-15 Project or a business at a Qualified Hotel Project including hotel
6-16 occupancy taxes, ad valorem taxes, sales and use taxes, and mixed
6-17 beverage taxes.
6-18 SECTION 7. Sec. 13 of Article 5190.7, Tex. Rev. Civ. Stat.
6-19 Ann., is amended to read as follows:
6-20 (a) To promote the public health, safety, or welfare, the
6-21 governing body of a municipality or county may establish a program
6-22 by which it reduces or eliminates any fees or taxes, other than
6-23 sales and use or property taxes, that it imposes on a qualified
6-24 business or qualified employee. The governing body of a
6-25 municipality or county may not reduce or eliminate local sales and
7-1 use taxes except to the extent it grants a rebate or refund or
7-2 provides a payment under this Section or Section 12 of this Act.
7-3 (b) A municipality, county, political subdivision or other
7-4 governmental body may enter into an agreement to rebate, refund or
7-5 pay Eligible Taxable Proceeds to the owner of the Qualified Hotel
7-6 Project at which such Eligible Taxable Proceeds were generated or
7-7 collected. A municipality with a population of 1,500,000 or more
7-8 may enter into an agreement to guarantee from hotel occupancy taxes
7-9 the bonds or other obligations of a municipally-sponsored local
7-10 government corporation created pursuant to Article 15281, Tex. Rev.
7-11 Civ. Stat. Ann., which were issued or incurred to pay the cost of
7-12 constructing, remodeling or rehabilitating a Qualified Hotel
7-13 Project. Any agreement must be in writing, contain an expiration
7-14 date, and require the beneficiary to provide documentation
7-15 necessary to support a claim. The municipality, county, political
7-16 subdivision or other governmental body which enters into any such
7-17 agreement shall make the rebate, refund or payment directly to the
7-18 beneficiary set out in the agreement.
7-19 SECTION 8. Add after Sec. 10 of Article 5190.7, Tex. Rev.
7-20 Civ. Stat. Ann., a new Sec. 10A as follows:
7-21 Sec. 10A. A Qualified Hotel Project may be designated by the
7-22 department as an enterprise project prior to or after August 31,
7-23 1993. New permanent jobs created by the Qualified Hotel Project
7-24 shall not be considered in determining the number of enterprise
7-25 projects which the department may approve pursuant to the other
8-1 provisions of this Act.
8-2 SECTION 9. Amend Section 151.429 of the Tax Code by amending
8-3 subsection (e) to read as follows:
8-4 (e) In this section, "enterprise project," "enterprise
8-5 zone," "Qualified Hotel Project," "new permanent job," and
8-6 "qualified employee" have the meanings assigned to those terms by
8-7 Section 3, Texas Enterprise Zone Act (Article 5190.7, Vernon's
8-8 Texas Civil Statutes).
8-9 SECTION 10. Amend Section 151.429 of the Tax Code by adding
8-10 a new subsection (h) as follows:
8-11 (h) Notwithstanding the other provisions of this Section,
8-12 the owner of a Qualified Hotel Project shall receive a rebate,
8-13 refund or payment of 100% of the sales and use taxes paid or
8-14 collected by the Qualified Hotel Project or businesses located in
8-15 the Qualified Hotel Project, pursuant to this Chapter 151 and 100%
8-16 of the hotel occupancy taxes paid by persons for the use or
8-17 possession or for the right to the use or possession of a room or
8-18 space at the Qualified Hotel Project pursuant to the provisions of
8-19 Chapter 156 during the first seven (7) years after such Qualified
8-20 Hotel Project is open for initial occupancy.
8-21 SECTION 11. The importance of this legislation and the
8-22 crowded condition of the calendars in both houses create an
8-23 emergency and an imperative public necessity that the
8-24 constitutional rule requiring bills to be read on three several
8-25 days in each house be suspended, and this rule is hereby suspended,
9-1 and that this Act take effect and be in force from and after its
9-2 passage, and it is so enacted.