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A BILL TO BE ENTITLED
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AN ACT
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relating to the authority of certain municipalities to pledge |
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revenue for the payment of certain obligations related to hotel |
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projects. |
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BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: |
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SECTION 1. Section 351.102, Tax Code, is amended by |
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amending Subsection (b) and adding Subsection (b-2) to read as |
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follows: |
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(b) An eligible central municipality, [or] a municipality |
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with a population of 173,000 or more that is located within two or |
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more counties, or a municipality with a population of 96,000 or more |
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that is located in a county that borders Lake Palestine may pledge |
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the revenue derived from the tax imposed under this chapter from a |
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hotel project that is owned by or located on land owned by the |
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municipality or, in an eligible central municipality, by a |
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nonprofit corporation acting on behalf of an eligible central |
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municipality, and that is located within 1,000 feet of a convention |
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center facility owned by the municipality for the payment of bonds |
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or other obligations issued or incurred to acquire, lease, |
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construct, and equip the hotel and any facilities ancillary to the |
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hotel, including convention center entertainment-related |
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facilities, open public spaces used for connectivity, plazas, |
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restaurants, shops, street and water and sewer infrastructure, and |
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parking facilities within 1,000 feet of the hotel or convention |
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center facility. For bonds or other obligations issued under this |
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subsection, an eligible central municipality or a municipality |
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described by this subsection [with a population of 173,000 or more
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that is located within two counties] may only pledge revenue or |
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other assets of the hotel project benefiting from those bonds or |
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other obligations. |
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(b-2) A municipality with a population of 96,000 or more |
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that is located in a county that borders Lake Palestine may not |
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pledge revenue under Subsection (b) or funds under Subsection (c) |
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for the payment of bonds or other obligations issued under this |
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section except for a hotel and facilities ancillary to the hotel |
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that are owned by the municipality and located on property that the |
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municipality owns or acquires with the proceeds from the bonds or |
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obligations for which the revenue or funds are pledged. |
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SECTION 2. 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. |