1-1 By: Moncrief S.B. No. 790
1-2 (In the Senate - Filed March 2, 1999; March 3, 1999, read
1-3 first time and referred to Committee on Intergovernmental
1-4 Relations; March 29, 1999, reported adversely, with favorable
1-5 Committee Substitute by the following vote: Yeas 4, Nays 1;
1-6 March 29, 1999, sent to printer.)
1-7 COMMITTEE SUBSTITUTE FOR S.B. No. 790 By: Moncrief
1-8 A BILL TO BE ENTITLED
1-9 AN ACT
1-10 relating to certain hotel facilities.
1-11 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
1-12 SECTION 1. Section 151.429, Tax Code, is amended by amending
1-13 Subsection (h) and adding Subsection (i) to read as follows:
1-14 (h) Notwithstanding Subsections (a) through (g) [the other
1-15 provisions of this section], the owner of a qualified hotel project
1-16 shall receive a rebate, refund, or payment of 100 percent of the
1-17 sales and use taxes paid or collected by the qualified hotel
1-18 project or businesses located in the qualified hotel project
1-19 pursuant to this chapter and 100 percent of the hotel occupancy
1-20 taxes paid by persons for the use or possession of or for the right
1-21 to the use or possession of a room or space at the qualified hotel
1-22 project pursuant to the provisions of Chapter 156 during the first
1-23 10 years after such qualified hotel project is open for initial
1-24 occupancy. The rebate, refund, or payment of sales and use taxes
1-25 does not apply to a qualified hotel project described under
1-26 Subsection (i).
1-27 (i) After January 1, 1999, a qualified hotel project may be
1-28 constructed in each eligible central municipality, as defined by
1-29 Section 351.001. This subsection does not apply to a municipality
1-30 with a population of 1,500,000 or more.
1-31 SECTION 2. Subdivision (2), Section 351.001, Tax Code, is
1-32 amended to read as follows:
1-33 (2) "Convention center facilities" or "convention
1-34 center complex" means civic centers, civic center buildings,
1-35 auditoriums, exhibition halls, and coliseums that are owned by the
1-36 municipality or other governmental entity or that are managed in
1-37 whole or part by the municipality, hotels owned by the municipality
1-38 or a nonprofit municipally sponsored local government corporation
1-39 created under Chapter 431, Transportation Code, within 1,000 feet
1-40 of a convention center owned by a municipality with a population of
1-41 1,500,000 or more, or a historic hotel owned by a municipality or a
1-42 nonprofit municipally sponsored local government corporation
1-43 created under Chapter 431, Transportation Code, within one mile of
1-44 a convention center owned by a municipality with a population of
1-45 1,500,000 or more. The term includes parking areas or facilities
1-46 that are for the parking or storage of conveyances and that are
1-47 located at or in the vicinity of other convention center
1-48 facilities. The term also includes a hotel owned by or located on
1-49 land that is owned by an eligible central municipality or by a
1-50 nonprofit corporation acting on behalf of an eligible central
1-51 municipality and is located within 1,000 feet of a convention
1-52 center facility owned by the municipality.
1-53 SECTION 3. Section 351.102, Tax Code, is amended by adding
1-54 Subsection (c) to read as follows:
1-55 (c) An eligible central municipality may pledge the revenue
1-56 derived from the tax imposed under this chapter from a qualified
1-57 hotel project, as defined by Section 2303.003, Government Code,
1-58 that is owned by or located on land owned by the municipality or by
1-59 a nonprofit corporation acting on behalf of an eligible central
1-60 municipality and is located within 1,000 feet of a convention
1-61 center facility owned by the municipality for the payment of bonds
1-62 or other obligations issued or incurred for acquiring, leasing,
1-63 constructing, or equipping the hotel. For bonds or other
1-64 obligations issued under this subsection, an eligible central
2-1 municipality may only pledge revenue or other assets of the
2-2 qualified hotel project benefiting from those bonds or other
2-3 obligations.
2-4 SECTION 4. Subdivision (8), Section 2303.003, Government
2-5 Code, is amended to read as follows:
2-6 (8) "Qualified hotel project" means a hotel proposed
2-7 to be constructed by a municipality or a nonprofit municipally
2-8 sponsored local government corporation created under Chapter 431,
2-9 Transportation Code, [the Texas Transportation Corporation Act
2-10 (Article 1528l, Vernon's Texas Civil Statutes)] that is within
2-11 1,000 feet of a convention center owned by a municipality having a
2-12 population of 1,500,000 or more, including shops, parking
2-13 facilities, and any other facilities ancillary to the hotel. The
2-14 term also includes a hotel owned by or located on land that is
2-15 owned by an eligible central municipality, as defined by Section
2-16 351.001, Tax Code, or by a nonprofit corporation acting on behalf
2-17 of an eligible central municipality, and is located within 1,000
2-18 feet of a convention center facility owned by the municipality,
2-19 including shops, parking facilities, and any other facilities
2-20 ancillary to the hotel.
2-21 SECTION 5. Section 2, Chapter 63, Acts of the 59th
2-22 Legislature, Regular Session, 1965 (Article 1269j-4.1, Vernon's
2-23 Texas Civil Statutes), is amended by adding Subsection (c) to read
2-24 as follows:
2-25 (c) An eligible central municipality, as defined by Section
2-26 351.001, Tax Code, may establish, acquire, lease as lessee or
2-27 lessor, purchase, construct, improve, enlarge, equip, repair,
2-28 operate, or maintain a hotel that is owned by or located on land
2-29 owned by the municipality or by a nonprofit corporation acting on
2-30 behalf of an eligible central municipality and is located within
2-31 1,000 feet of a convention center facility owned by the
2-32 municipality. An eligible central municipality may also issue
2-33 bonds or incur other obligations to acquire, lease, construct, or
2-34 equip a hotel that is owned by or located on land owned by the
2-35 municipality or by a nonprofit corporation acting on behalf of an
2-36 eligible central municipality and that is located within 1,000 feet
2-37 of a convention center owned by the municipality.
2-38 SECTION 6. This Act takes effect September 1, 1999.
2-39 SECTION 7. The importance of this legislation and the
2-40 crowded condition of the calendars in both houses create an
2-41 emergency and an imperative public necessity that the
2-42 constitutional rule requiring bills to be read on three several
2-43 days in each house be suspended, and this rule is hereby suspended.
2-44 * * * * *