By: Nelson S.B. No. 748
  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.
         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
               (1)  "Project financing zone" means an area within a
                     (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
         (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
         (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.