1-1                                   AN ACT
 1-2     relating to the purposes for which the municipal hotel occupancy
 1-3     tax may be used.
 1-4           BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
 1-5           SECTION 1.  Section 351.001(2), Tax Code, is amended to read
 1-6     as follows:
 1-7                 (2)  "Convention center facilities" or "convention
 1-8     center complex" means facilities that are primarily used to host
 1-9     conventions and meetings.  The term means civic centers, civic
1-10     center buildings, auditoriums, exhibition halls, and coliseums that
1-11     are owned by the municipality or other governmental entity or that
1-12     are managed in whole or part by the municipality.  In a
1-13     municipality with a population of 1.5 million or more, "convention
1-14     center facilities" or "convention center complex" means civic
1-15     centers, civic center buildings, auditoriums, exhibition halls, and
1-16     coliseums that are owned by the municipality or other governmental
1-17     entity or that are managed in part by the municipality, hotels
1-18     owned by the municipality or a nonprofit municipally sponsored
1-19     local government corporation created under Chapter 431,
1-20     Transportation Code, within 1,000 feet of a convention center owned
1-21     by the [a] municipality [with a population of 1,500,000 or more],
1-22     or a historic hotel owned by the [a] municipality or a nonprofit
1-23     municipally sponsored local government corporation created under
1-24     Chapter 431, Transportation Code, within one mile of a convention
 2-1     center owned by the [a] municipality [with a population of
 2-2     1,500,000 or more].  The term includes parking areas or facilities
 2-3     that are for the parking or storage of conveyances and that are
 2-4     located at or in the vicinity of other convention center
 2-5     facilities.  The term also includes a hotel owned by or located on
 2-6     land that is owned by an eligible central municipality or by a
 2-7     nonprofit corporation acting on behalf of an eligible central
 2-8     municipality and that is located within 1,000 feet of a convention
 2-9     center facility owned by the municipality.
2-10           SECTION 2.  Section 351.102, Tax Code, is amended by adding
2-11     Subsection (c) to read as follows:
2-12           (c)  An eligible central municipality may pledge the revenue
2-13     derived from the tax imposed under this chapter from a hotel
2-14     project that is owned by or located on land owned by the
2-15     municipality or by a nonprofit corporation acting on behalf of an
2-16     eligible central municipality and that is located within 1,000 feet
2-17     of a convention center facility owned by the municipality for the
2-18     payment of bonds or other obligations issued or incurred to
2-19     acquire, lease, construct, and equip the hotel and any facilities
2-20     ancillary to the hotel, including shops and parking facilities.
2-21     For bonds or other obligations issued under this subsection, an
2-22     eligible central municipality may only pledge revenue or other
2-23     assets of the hotel project benefiting from those bonds or other
2-24     obligations.
2-25           SECTION 3.  Section 2, Chapter 63, Acts of the 59th
2-26     Legislature, Regular Session, 1965 (Article 1269j-4.1, Vernon's
2-27     Texas Civil Statutes), is amended by adding Subsection (c) to read
 3-1     as follows:
 3-2           (c)  An eligible central municipality, as defined by Section
 3-3     351.001, Tax Code, may establish, acquire, lease as lessee or
 3-4     lessor, purchase, construct, improve, enlarge, equip, repair,
 3-5     operate, or maintain a hotel, and any facilities ancillary to the
 3-6     hotel, including shops and parking facilities, that are owned by or
 3-7     located on land owned by the municipality or by a nonprofit
 3-8     corporation acting on behalf of an eligible central municipality
 3-9     and that is located within 1,000 feet of a convention center
3-10     facility owned by the municipality.  An eligible central
3-11     municipality may also issue bonds or incur other obligations to
3-12     acquire, lease, construct, or equip a hotel and any facilities
3-13     ancillary to the hotel, including shops and parking facilities,
3-14     that are owned by or located on land owned by the municipality or
3-15     by a nonprofit corporation acting on behalf of an eligible central
3-16     municipality and that is located within 1,000 feet of a convention
3-17     center owned by the municipality.
3-18           SECTION 4.  (a)  This Act takes effect September 1, 1999.
3-19           (b)  This Act does not apply to the use of tax revenue
3-20     pledged to secure bonds issued before the effective date of this
3-21     Act.  Tax revenue pledged to secure bonds issued before the
3-22     effective date of this Act is governed by the law in effect on the
3-23     date the bonds were issued, and that law is continued in effect for
3-24     that purpose.
3-25           (c)  This Act does not apply to the use of tax revenue
3-26     pledged or dedicated before the effective date of this Act for the
3-27     acquisition of sites for and the construction, improvement,
 4-1     enlarging, equipping, repairing, operation, and maintenance of
 4-2     convention center facilities.  Tax revenue pledged for these
 4-3     purposes before the effective date of this Act is governed by the
 4-4     law in effect on the date the revenue was pledged, and that law is
 4-5     continued in effect for that purpose.
 4-6           (d)  This Act does not apply to the use of tax revenue for a
 4-7     convention center complex or minor league baseball stadium that was
 4-8     under construction on the effective date of this Act, including the
 4-9     pledging of such revenue to secure bonds, additional bonds, and
4-10     refunding bonds.  Tax revenue used for a convention center complex
4-11     or minor league baseball stadium that was under construction on the
4-12     effective date of this Act is governed by the law in effect on
4-13     April 1, 1999, and that law is continued in effect for that
4-14     purpose.
4-15           SECTION 5.  The importance of this legislation and the
4-16     crowded condition of the calendars in both houses create an
4-17     emergency and an imperative public necessity that the
4-18     constitutional rule requiring bills to be read on three several
4-19     days in each house be suspended, and this rule is hereby suspended.
         _______________________________     _______________________________
             President of the Senate              Speaker of the House
               I certify that H.B. No. 2844 was passed by the House on April
         20, 1999, by a non-record vote; and that the House concurred in
         Senate amendments to H.B. No. 2844 on May 21, 1999, by a non-record
         vote.
                                             _______________________________
                                                 Chief Clerk of the House
               I certify that H.B. No. 2844 was passed by the Senate, with
         amendments, on May 19, 1999, by a viva-voce vote.
                                             _______________________________
                                                 Secretary of the Senate
         APPROVED:  _____________________
                            Date
                    _____________________
                          Governor