83R6207 TJB-F

By: Geren H.B. No. 1603

A BILL TO BE ENTITLED

AN ACT

relating to the use of certain tax revenue to enhance and upgrade convention center facilities, multipurpose arenas, multiuse facilities, and related infrastructure in certain municipalities.

BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:

SECTION 1. Subchapter B, Chapter 351, Tax Code, is amended by adding Section 351.1015 to read as follows:

Sec. 351.1015. CERTAIN QUALIFIED PROJECTS. (a) In this section:

(1) "Project financing zone" means an area within a municipality:

(A) that the municipality by ordinance or by agreement under Chapter 380, Local Government Code, designates as a project financing zone;

(B) the boundaries of which are within three miles of a qualified project; and

(C) the designation of which expires not later than the 30th anniversary of the date of designation.

(2) "Qualified project" means the construction, improvement, enlargement, and equipment of a convention center facility, a multipurpose arena, a multiuse facility, and any related infrastructure that is:

(A) located in a project financing zone on land owned by a municipality or by the owner of a venue, as defined by Section 334.001, Local Government Code;

(B) partially financed by private contributions that equal not less than 40 percent of the project costs; and

(C) related to the promotion of tourism and the convention and hotel industry.

(3) "Tax base" means the amount of funds available under Subsection (e) from all hotels within the project financing zone in the calendar year that the municipality designates the zone, excluding funds received by the municipality for a hotel project described by Section 351.102(b) existing on the date the zone is designated.

(b) This section applies only to a qualified project located in a municipality with a population of at least 650,000 but less than 800,000.

(c) In addition to the uses provided by Section 351.101, revenue from the municipal hotel occupancy tax may be used to fund a qualified project.

(d) A municipality may pledge the revenue derived from the tax imposed under this chapter from a hotel located in the project financing zone for the payment of bonds or other obligations issued or incurred to acquire, lease, construct, and equip the qualified project.

(e) Notwithstanding other law, a municipality is entitled to receive funds from hotels located in a project financing zone that an owner of a qualified hotel project may receive under Section 151.429(h) of this code, or Section 2303.5055, Government Code, and may pledge the funds for the payment of bonds or other obligations described by Subsection (d). The amount the municipality is entitled to receive under this subsection may not exceed the difference between the tax base and the total amount the owners of all included hotels may receive under those provisions. The funds are not subject to the limitations provided by Section 151.429(h) of this code or the provisions of Section 2303.5055, Government Code, but shall be deposited and distributed as provided by those sections.

(f) The funds received under Subsection (e) must be held in trust by the comptroller in a separate suspense account for not more than five years after the date of the first deposit following the date the project financing zone is designated. When a qualified project is commenced, the comptroller shall release the funds to the municipality for which they were held in trust.

SECTION 2. Section 351.1065(a), Tax Code, is amended to read as follows:

(a) An eligible central municipality shall use the amount of revenue from the tax that is derived from the application of the tax at a rate of more than seven percent of the cost of a room only for:

(1) the construction of an expansion of an existing convention center facility; [and]

(2) a qualified project to which Section 351.1015 applies; and

(3) pledging payment of revenue bonds and revenue refunding bonds issued under Subchapter A, Chapter 1504, Government Code, for the construction or qualified project [of the expansion].

SECTION 3. This Act takes effect September 1, 2013.