79R5326 DAK-F

By:  Pickett                                                      H.B. No. 2142



A BILL TO BE ENTITLED

AN ACT

relating to the construction, remodeling, or rehabilitation of 
certain hotel projects.
	BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:                        
	SECTION 1.  Section 2303.003(8), Government Code, is amended 
to read as follows:
		(8)  "Qualified hotel project" means:                                  
			(A)  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 having a population of 
1,500,000 or more, including shops, parking facilities, and any 
other facilities ancillary to the hotel; and
			(B)  a hotel proposed to be constructed, 
remodeled, or rehabilitated 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 3,000 feet of the property line 
of a convention center owned by a municipality having a population 
of more than 500,000 and that borders the United Mexican States, 
including shops, parking facilities, and any other facilities 
ancillary to the hotel.
	SECTION 2.  Section 2303.5055(b), Government Code, is 
amended to read as follows:
	(b)  A municipality with a population of 1,500,000 or more or 
a municipality having a population of more than 500,000 and that 
borders the United Mexican States 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, Chapter 431, Transportation Code,
[(Article 1528l, Vernon's Texas Civil Statutes)] that were issued 
or incurred to pay the cost of construction, remodeling, or 
rehabilitation of a qualified hotel project.
	SECTION 3.  Section 351.001(2), Tax Code, is amended 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.  The term 
also includes a hotel proposed to be constructed, remodeled, or 
rehabilitated by a municipality or a nonprofit municipally 
sponsored local government corporation created under Chapter 431, 
Transportation Code, that is within 3,000 feet of the property line 
of a convention center owned by a municipality having a population 
of more than 500,000 and that borders the United Mexican States, 
including shops, parking facilities, and any other facilities 
ancillary to the hotel.
	SECTION 4.  Section 351.102(a), Tax Code, is amended to read 
as follows:     
	(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 or a municipality having a 
population of more than 500,000 and that borders the United Mexican 
States, 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.
	SECTION 5.  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, 2005.