By:  Lucio                                                        S.B. No. 1752


A BILL TO BE ENTITLED

AN ACT

relating to the authority of certain municipalities to use short 
term rental tax and hotel occupancy tax for certain venue projects.
	BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:                        
	SECTION 1.  Section 334.1015, Local Government Code is 
amended to read as follows:
	Section 334.1015  Application.  This Subchapter does not 
apply, except as provided by Section 334.1136, to the financing of a 
venue project that is an arena or facility, that is part of a 
municipal parks and recreation system.
	SECTION 2.  Subchapter E, Chapter 334, Local Government Code 
is amended by adding Section 334.1136 to read as follows:
	Section 334.1136.  USE FOR REVENUES BY CERTAIN 
MUNICIPALITIES FOR CERTAIN PURPOSES.  A Municipality that is in a 
County located on the Rio Grande River with a population less than 
400,000 may use Short Term Motor Vehicle Rental Tax under this 
Chapter to acquire, construct, improve an equip a venue project 
that is in a part of a municipal parks and recreation system as a 
multipurpose spectator arena/coliseum, if so approved by the 
governing body of the municipality.  In addition, the municipality 
may pledge these revenues, together with other revenues, to the 
payment of bonds or other obligations the municipalities issues to 
finance the spectator arena/coliseum.
	SECTION 3.  Subchapter H, Chapter 334 Local Government Code 
is amended by adding paragraph "C" to Section 334.2516 to read as 
follows:
	Section 334.2516.  USE OF REVENUES BY CERTAIN MUNICIPALITIES 
FOR CERTAIN PURPOSES  (a)  This section applies only to a 
municipality that:
		(1)  is located in three counties;                                            
		(2)  has a population of less than 120,000; and                               
		(3)  acquires by purchase or lease with a term of not 
less than 20 years an interest in real property that by the terms of 
the acquisition is required to be maintained as park property.
	(b)  A municipality may use revenue under this subchapter to 
acquire, construct, improve, and equip a venue project that is a 
convention center facility or related infrastructure to be 
constructed on real property described by Subsection (a)(3).  In 
addition, the municipality may pledge the revenue to the payment of 
bonds or other obligations the municipality issues to finance the 
convention center facility infrastructure.
	(c)  This Section also applies to a municipality that is in a 
County located on the Rio Grande River with a population less than 
400,000 which may use Hotel Occupancy Tax under this Chapter, to 
acquire, construct, improve and equip a venue project that is part 
of a municipal parks and recreation system as a multipurpose 
spectator arena/coliseum as so approved by the governing body of 
the municipality.  In addition the municipality may pledge these 
revenues, together with other revenues, to the payment of bonds and 
other obligations the municipality issues to finance the spectator 
arena/coliseum.
	SECTION 4.  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.