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A BILL TO BE ENTITLED
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AN ACT
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relating to the use of certain tax revenue to enhance and upgrade |
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convention center facilities, multipurpose arenas, multiuse |
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facilities, and related infrastructure in certain municipalities. |
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BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: |
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SECTION 1. Subchapter B, Chapter 351, Tax Code, is amended |
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by adding Section 351.1015 to read as follows: |
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Sec. 351.1015. CERTAIN QUALIFIED PROJECTS. (a) In this |
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section: |
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(1) "Project financing zone" means an area within a |
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municipality: |
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(A) that the municipality by ordinance or by |
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agreement under Chapter 380, Local Government Code, designates as a |
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project financing zone; |
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(B) the boundaries of which are within three |
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miles of a qualified project; and |
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(C) the designation of which expires not later |
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than the 30th anniversary of the date of designation. |
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(2) "Qualified project" means the construction, |
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improvement, enlargement, and equipment of a convention center |
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facility, a multipurpose arena, a multiuse facility, and any |
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related infrastructure that is: |
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(A) located in a project financing zone on land |
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owned by a municipality or by the owner of a venue, as defined by |
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Section 334.001, Local Government Code; |
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(B) partially financed by private contributions |
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that equal not less than 40 percent of the project costs; and |
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(C) related to the promotion of tourism and the |
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convention and hotel industry. |
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(3) "Tax base" means the amount of funds available |
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under Subsection (e) from all hotels within the project financing |
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zone in the calendar year that the municipality designates the |
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zone, excluding funds received by the municipality for a hotel |
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project described by Section 351.102(b) existing on the date the |
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zone is designated. |
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(b) This section applies only to a qualified project located |
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in a municipality with a population of at least 650,000 but less |
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than 800,000. |
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(c) In addition to the uses provided by Section 351.101, |
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revenue from the municipal hotel occupancy tax may be used to fund a |
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qualified project. |
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(d) A municipality may pledge the revenue derived from the |
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tax imposed under this chapter from a hotel located in the project |
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financing zone for the payment of bonds or other obligations issued |
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or incurred to acquire, lease, construct, and equip the qualified |
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project. |
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(e) Notwithstanding other law, a municipality is entitled |
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to receive funds from hotels located in a project financing zone |
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that an owner of a qualified hotel project may receive under Section |
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151.429(h) of this code, or Section 2303.5055, Government Code, and |
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may pledge the funds for the payment of bonds or other obligations |
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described by Subsection (d). The amount the municipality is |
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entitled to receive under this subsection may not exceed the |
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difference between the tax base and the total amount the owners of |
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all included hotels may receive under those provisions. The funds |
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are not subject to the limitations provided by Section 151.429(h) |
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of this code or the provisions of Section 2303.5055, Government |
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Code, but shall be deposited and distributed as provided by those |
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sections. |
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(f) The funds received under Subsection (e) must be held in |
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trust by the comptroller in a separate suspense account for not more |
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than five years after the date of the first deposit following the |
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date the project financing zone is designated. When a qualified |
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project is commenced, the comptroller shall release the funds to |
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the municipality for which they were held in trust. |
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SECTION 2. Section 351.1065(a), Tax Code, is amended to |
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read as follows: |
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(a) An eligible central municipality shall use the amount of |
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revenue from the tax that is derived from the application of the tax |
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at a rate of more than seven percent of the cost of a room only for: |
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(1) the construction of an expansion of an existing |
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convention center facility; [and] |
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(2) a qualified project to which Section 351.1015 |
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applies; and |
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(3) pledging payment of revenue bonds and revenue |
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refunding bonds issued under Subchapter A, Chapter 1504, Government |
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Code, for the construction or qualified project [of the expansion]. |
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SECTION 3. This Act takes effect September 1, 2013. |