By: Lindsay S.B. No. 1466
A BILL TO BE ENTITLED
AN ACT
relating to hotel occupancy taxes and the financing of convention
center facilities in certain counties.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
SECTION 1. Section 351.001, Tax Code, is amended by
amending Subdivision (2) and adding Subdivision (11) to read as
follows:
(2) "Convention center facilities" or "convention
center complex" means facilities that are primarily used to host
conventions and meetings. The term means civic centers, civic
center buildings, auditoriums, exhibition halls, and coliseums
that are owned by the municipality or other governmental entity or
that are managed in whole or part by the municipality. In a
municipality with a population of 1.5 million or more, "convention
center facilities" or "convention center complex" means civic
centers, civic center buildings, auditoriums, exhibition halls,
and coliseums that are owned by the municipality or other
governmental entity or that are managed in part by the
municipality, hotels owned by the municipality or a nonprofit
municipally sponsored local government corporation created under
Chapter 431, Transportation Code, within 1,000 feet of a convention
center owned by the municipality, or a historic hotel owned by the
municipality or a nonprofit municipally sponsored local government
corporation created under Chapter 431, Transportation Code, within
one mile of a convention center owned by the municipality. The term
includes parking areas or facilities that are for the parking or
storage of conveyances and that are located at or in the vicinity of
other convention center facilities. The term also includes a hotel
owned by or located on land that is owned by an eligible central
municipality or by a nonprofit corporation acting on behalf of an
eligible central municipality and that is located within 1,000 feet
of a convention center facility owned by the municipality. In a
municipality that has a population of less than 114,000 and that
contains a portion of the Bosque River, the terms include a hotel
owned by or located on land that is owned by the municipality or by a
nonprofit corporation acting on behalf of the municipality and that
is located within 1,500 feet of a convention center facility owned
by the municipality.
(11) "Eligible collegiate municipality" means a
municipality with a population of 195,000 or more that includes in
its corporate limits an institution of higher education, as defined
in Section 61.003(8), Education Code, that offers a degree in the
field of hospitality and tourism. In an "eligible collegiate
municipality," the term "convention center facilities" or
"convention center complex" means such term as defined in
Subdivision (2) or civic centers, civic center buildings,
auditoriums, exhibition halls, and coliseums that are owned by the
municipality or other governmental entity or that are managed in
part by the municipality, hotels owned by the municipality, a
nonprofit municipally sponsored local government corporation
created under Chapter 431, Transportation Code, or a nonprofit
corporation created in conformity with Section 509(a)(3), Internal
Revenue Code of 1986, that are in the proximity of the campus of the
institution of higher education and are within 2,500 feet of an
auditorium/coliseum complex owned by the municipality. The term
includes parking areas or facilities that are for the parking or
storage of conveyances and that are located at or in the vicinity of
other convention center facilities.
SECTION 2. Section 351.102, Tax Code, is amended to read as
follows:
Sec. 351.102. PLEDGE FOR BONDS. (a) Subject to the
limitations provided by this subchapter, a municipality may pledge
the revenue derived from the tax imposed under this chapter for the
payment of bonds that are issued under Section 1504.002(a),
Government Code, for one or more of the purposes provided by Section
351.101 or, in the case of a municipality of 1,500,000 or more, for
the payment of principal of or interest on bonds or other
obligations of a municipally sponsored local government
corporation created under Chapter 431, Transportation Code, that
were issued to pay the cost of the acquisition and construction of a
convention center hotel or the cost of acquisition, remodeling, or
rehabilitation of a historic hotel structure; provided, however,
such pledge may only be that portion of the tax collected at such
hotel. A municipality that has a population of less than 114,000
and that contains a portion of the Bosque River may pledge revenue
from the tax imposed under this chapter and collected at convention
center facilities for the payment of bonds or other obligations
that a nonprofit corporation acting on behalf of the municipality
issued or incurred to acquire, lease, construct, or equip the
convention center facilities.
(b) An eligible central municipality or an eligible
collegiate municipality may pledge the revenue derived from the tax
imposed under this chapter from a hotel project that is owned by or
located on land owned by the municipality or by a nonprofit
corporation acting on behalf of an eligible central municipality or
an eligible collegiate municipality and that is located within
1,000 feet of a convention center facility owned by the
municipality or located as otherwise provided in Section
351.001(11) for the payment of bonds or other obligations issued or
incurred to acquire, lease, construct, and equip the hotel and any
facilities ancillary to the hotel, including shops and parking
facilities. For bonds or other obligations issued under this
subsection, an eligible central municipality or an eligible
collegiate municipality may only pledge revenue or other assets of
the hotel project benefitting from those bonds or other
obligations.
SECTION 3. Subdivision (2), Section 352.001, Tax Code, is
amended to read as follows:
(2) "Convention center facilities" or "convention
center complex" means civic centers, civic center buildings,
auditoriums, exhibition halls, and coliseums that are owned by the
county or that are managed in whole or part by the county. The terms
include [term includes] parking areas or facilities that are for
the parking or storage of conveyances and that are located at or in
the immediate vicinity of other convention center facilities. In a
county with a population of more than 3.3 million, the terms include
hotels that are located within 1,000 feet of a convention center or
stadium and that are owned by the county or by a nonprofit local
government corporation created under Chapter 431, Transportation
Code, that is sponsored by the county.
SECTION 4. Section 352.003, Tax Code, is amended by adding
Subsection (g) to read as follows:
(g) Notwithstanding any other law, a county, municipality,
or political subdivision of the state may not adopt or levy an
additional hotel occupancy tax in a county with a population of 3.3
million or more if as a result of the adoption or levy of the tax the
combined rate of all hotel occupancy taxes imposed by the state, the
county, a municipality, or a political subdivision would exceed 17
percent at any location within the county.
SECTION 5. Subsection (a), Section 352.101, Tax Code, is
amended to read as follows:
(a) The revenue from a tax imposed under this chapter by a
county having a population of more than 3.3 million may be used only
for:
(1) the acquisition of sites for and the construction,
improvement, enlarging, equipping, repairing, operation, and
maintenance of public improvements such as convention center
facilities, a convention center complex, [civic centers, civic
center buildings, auditoriums, exhibition halls, coliseums, and]
stadiums, including sports and other facilities that serve the
purpose of attracting visitors and tourists to the county, and
parking areas or facilities for the parking or storage of motor
vehicles or other conveyances, hotels owned by a municipality or a
nonprofit municipally sponsored local government corporation
created under Chapter 431, Transportation Code, within 1,000 feet
of a convention center owned by a municipality with a population of
1,500,000 or more, or a historic hotel owned by a municipality or a
nonprofit municipally sponsored local government corporation
created under Chapter 431, Transportation Code, within one mile of
a convention center owned by a municipality with a population of
1,500,000 or more;
(2) the furnishing of facilities, personnel, and
materials for the registration of convention delegates or
registrants; and
(3) general promotion and tourist advertising of the
county and its vicinity and conducting a solicitation program to
attract conventions and visitors, any of which may be conducted by
the county or through contracts with persons or organizations
selected by the county.
SECTION 6. Section 1477.302, Government Code, is amended to
read as follows:
Sec. 1477.302. AUTHORITY FOR VISITOR OR TOURIST
ATTRACTIONS. (a) In this section, "convention center facilities"
and "convention center complex" have the meanings assigned by
Section 352.001, Tax Code.
(b) A county may establish, acquire, lease as lessor or
lessee, construct, improve, enlarge, equip, repair, operate, or
maintain:
(1) a public improvement or facility to attract
visitors or tourists to the county, including convention center
facilities, a convention center complex, or a [civic center, a
civic center building, an auditorium, an exhibition hall, a
coliseum,] stadium[,] or other sports facility; or
(2) a parking facility located at or in the immediate
vicinity of an improvement or facility described by Subdivision (1)
to be used in connection with the improvement or facility for
off-street parking or storage of motor vehicles or other
conveyances.
SECTION 7. Section 1504.001, Government Code, is amended to
read as follows:
Sec. 1504.001. AUTHORITY FOR CERTAIN FACILITIES. (a) A
municipality may establish, acquire, lease as lessee or lessor,
construct, improve, enlarge, equip, repair, operate, or maintain a
facility such as:
(1) a civic center, auditorium, opera house, music
hall, exhibition hall, coliseum, museum, library, or other
municipal building;
(2) a golf course, tennis court, or other similar
recreational facility;
(3) a hotel owned by a municipality or a nonprofit
municipally sponsored local government corporation created under
Chapter 431, Transportation Code, that is located not more than
1,000 feet from a convention center owned by a municipality with a
population of 1,500,000 or more, or that is located within 1,500
feet of a convention center facility owned by a municipality that
has a population of less than 114,000 and that contains a portion of
the Bosque River;
(4) a historic hotel owned by a municipality or a
nonprofit municipally sponsored local government corporation
created under Chapter 431, Transportation Code, that is located not
more than one mile from a convention center owned by a municipality
with a population of 1,500,000 or more; or
(5) a parking facility at or in the immediate vicinity
of a facility described by Subdivisions (1)-(4) for use in
connection with that facility for off-street parking or storage of
motor vehicles or other conveyances.
(b) An eligible central municipality or an eligible
collegiate municipality, as defined by Section 351.001, Tax Code,
may establish, acquire, lease as lessee or lessor, construct,
improve, enlarge, equip, repair, operate, or maintain a hotel, and
any facilities ancillary to the hotel, including shops and parking
facilities, that are owned by or located on land owned by the
municipality or by a nonprofit corporation acting on behalf of the
municipality, and that is located within 1,000 feet of a convention
center facility owned by the municipality or located as otherwise
provided in Section 351.001(11), Tax Code.
SECTION 8. Subdivision (8), Section 2303.003, Government
Code, is amended to read as follows:
(8) "Qualified hotel project" means a hotel proposed
to be constructed by a municipality or a nonprofit municipally
sponsored local government corporation created under the Texas
Transportation Corporation Act, Chapter 431, Transportation Code,
that is within 1,000 feet of a convention center owned by a
municipality with [having] a population of 1,500,000 or more, or
that is located within 1,500 feet of a convention center facility
owned by a municipality that has a population of less than 114,000
and that contains a portion of the Bosque River. The term includes
[including] shops, parking facilities, and any other facilities
ancillary to the hotel or as otherwise defined in Section
351.001(11), Tax Code.
SECTION 9. Subsection (b), Section 2303.5055, Government
Code, is amended to read as follows:
(b) A municipality with a population of 1,500,000 or more, a
municipality that has a population of less than 114,000 and that
contains a portion of the Bosque River, or an eligible collegiate
municipality as defined in Section 351.001, Tax Code, may agree to
guarantee from hotel occupancy taxes the bonds or other obligations
of a municipally sponsored local government corporation created
under the Texas Transportation Corporation Act (Article 1528l,
Vernon's Texas Civil Statutes) or a nonprofit corporation created
in conformity with Section 509(a)(3), Internal Revenue Code of
1986, that were issued or incurred to pay the cost of construction,
remodeling, or rehabilitation of a qualified hotel project.
SECTION 10. This Act takes effect immediately if it
receives a vote of two-thirds of all the members elected to each
house, as provided by Section 39, Article III, Texas Constitution.
If this Act does not receive the vote necessary for immediate
effect, this Act takes effect September 1, 2003.