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A BILL TO BE ENTITLED
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AN ACT
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relating to the financing of convention center hotels in certain |
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municipalities. |
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BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: |
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SECTION 1. Section 1504.001, Government Code, is amended by |
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adding Subsection (c) to read as follows: |
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(c) A municipality with a population of at least 99,900 but |
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not more than 112,000 that is located in a county with a population |
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of at least 135,000 but not more than 200,000 may establish, |
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acquire, lease as lessee or lessor, construct, improve, enlarge, |
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and equip a hotel and any facilities ancillary to the hotel, |
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including shops, parking facilities, and plazas, that are owned by |
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or located on land owned by the municipality or by a nonprofit |
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corporation acting on behalf of the municipality, and that are |
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located within 1,000 feet of a convention center facility owned by |
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the municipality. |
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SECTION 2. Section 1504.002, Government Code, is amended by |
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adding Subsection (c) to read as follows: |
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(c) A municipality with a population of at least 99,900 but |
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not more than 112,000 that is located in a county with a population |
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of at least 135,000 but not more than 200,000 may issue bonds or |
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incur other obligations to acquire, lease, construct, or equip a |
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facility described by Section 1504.001(c). |
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SECTION 3. Section 2303.003(8), Government Code, is amended |
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to read as follows: |
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(8) "Qualified hotel project" means: |
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(A) a hotel proposed to be constructed by a |
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municipality or a nonprofit municipally sponsored local government |
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corporation created under the Texas Transportation Corporation |
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Act, Chapter 431, Transportation Code, that is within 1,000 feet of |
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a convention center owned by a municipality having a population of |
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1,500,000 or more, including shops, parking facilities, and any |
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other facilities ancillary to the hotel; [and] |
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(B) a hotel proposed to be constructed, |
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remodeled, or rehabilitated by a municipality or a nonprofit |
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municipally sponsored local government corporation created under |
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the Texas Transportation Corporation Act, Chapter 431, |
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Transportation Code, that is within 3,000 feet of the property line |
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of a convention center owned by a municipality having a population |
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of more than 500,000 and that borders the United Mexican States; and |
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(C) a hotel proposed to be constructed that is |
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within 1,000 feet of a convention center facility owned by a |
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municipality with a population of at least 99,900 but not more than |
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112,000 that is located in a county with a population of at least |
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135,000 but not more than 200,000. |
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SECTION 4. Section 351.001(2), Tax Code, is amended to read |
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as follows: |
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(2) "Convention center facilities" or "convention |
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center complex" means facilities that are primarily used to host |
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conventions and meetings. The term means civic centers, civic |
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center buildings, auditoriums, exhibition halls, and coliseums |
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that are owned by the municipality or other governmental entity or |
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that are managed in whole or part by the municipality. In a |
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municipality with a population of 1.5 million or more, "convention |
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center facilities" or "convention center complex" means civic |
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centers, civic center buildings, auditoriums, exhibition halls, |
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and coliseums that are owned by the municipality or other |
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governmental entity or that are managed in part by the |
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municipality, hotels owned by the municipality or a nonprofit |
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municipally sponsored local government corporation created under |
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Chapter 431, Transportation Code, within 1,000 feet of a convention |
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center owned by the municipality, or a historic hotel owned by the |
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municipality or a nonprofit municipally sponsored local government |
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corporation created under Chapter 431, Transportation Code, within |
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one mile of a convention center owned by the municipality. The |
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term includes parking areas or facilities that are for the parking |
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or storage of conveyances and that are located at or in the vicinity |
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of other convention center facilities. The term also includes a |
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hotel owned by or located on land that is owned by an eligible |
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central municipality or by a nonprofit corporation acting on behalf |
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of an eligible central municipality and that is located within |
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1,000 feet of a convention center facility owned by the |
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municipality. The term also includes a hotel proposed to be |
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constructed, remodeled, or rehabilitated by a municipality or a |
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nonprofit municipally sponsored local government corporation |
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created under Chapter 431, Transportation Code, that is within |
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3,000 feet of the property line of a convention center owned by a |
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municipality having a population of more than 500,000 and that |
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borders the United Mexican States. The term also includes a hotel |
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to be owned by the municipality or by another person, including a |
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private entity, to be constructed within 1,000 feet of a convention |
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center facility owned by a municipality with a population of at |
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least 99,900 but not more than 112,000 and that is located in a |
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county with a population of at least 135,000 but not more than |
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200,000. |
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SECTION 5. Subchapter B, Chapter 351, Tax Code, is amended |
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by adding Section 351.1078 to read as follows: |
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Sec. 351.1078. ALLOCATION OF REVENUE: CERTAIN |
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MUNICIPALITIES. (a) This section applies only to a qualified hotel |
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project, as that term is defined by Section 2303.003, Government |
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Code, proposed to be constructed or constructed in a municipality |
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with a population of at least 99,900 but not more than 112,000 that |
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is located in a county with a population of at least 135,000 but not |
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more than 200,000. |
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(b) Notwithstanding Section 2303.5055, Government Code, and |
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any other provision of this chapter, a municipality to which this |
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section applies may agree to rebate, refund, or pay all or part of |
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the revenue from the tax imposed under this chapter that is derived |
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from the qualified hotel project for a term determined by the |
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municipality, which may not extend beyond the 20th anniversary of |
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the date construction of the qualified hotel project began. |
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(c) If the municipality agrees to rebate, refund, or pay |
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revenue under Subsection (b), the municipality may not reduce the |
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percentage of revenue from the tax imposed under this chapter and |
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allocated for a purpose described by Section 351.101(a)(3) to a |
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percentage that is less than the average percentage of that |
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revenue, not including any reserve or surplus, allocated by the |
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municipality for that purpose during the 36-month period preceding |
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the date the municipality begins using revenue under Subsection |
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(b). |
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(d) A municipality to which this section applies is entitled |
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to receive hotel occupancy tax revenue from a qualified hotel |
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project that an owner of the project may receive under Section |
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151.429(h) of this code and Section 2303.5055, Government Code, |
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during the first 20 years after the qualified hotel project is open |
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for initial occupancy. |
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SECTION 6. This Act takes effect immediately if it receives |
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a vote of two-thirds of all the members elected to each house, as |
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provided by Section 39, Article III, Texas Constitution. If this |
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Act does not receive the vote necessary for immediate effect, this |
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Act takes effect September 1, 2015. |