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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 by certain |
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municipalities and the authority of those municipalities to pledge |
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that revenue for the payment of obligations related to hotel and |
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convention center projects. |
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BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: |
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SECTION 1. Section 351.1015(a)(2), Tax Code, is amended to |
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read as follows: |
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(2) "Hotel-associated revenue" means the sum of: |
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(A) state tax revenue collected in a project |
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financing zone from all hotels located in the zone that would be |
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available to the owners of qualified hotel projects under Section |
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151.429(h) if the hotels were qualified hotel projects, excluding |
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the amount of that revenue received by a municipality under Section |
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351.102(c) or (c-1) for a [hotel] project described by Section |
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351.102(b) or (c-1) that is [and] located in the zone and that |
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exists on the date the municipality designates the zone; and |
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(B) tax revenue collected from all permittees |
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under Chapter 183 at hotels located in the zone, excluding revenue |
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disbursed by the comptroller under Section 183.051(b). |
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SECTION 2. Section 351.1015, Tax Code, is amended by |
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amending Subsections (b) and (e) to read as follows: |
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(b) This section applies only to a qualified project located |
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in a municipality: |
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(1) with a population of at least 650,000 but less than |
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750,000 according to the most recent federal decennial census; or |
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(2) described by Section 351.102(c-1). |
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(e) A municipality may pledge for the payment of bonds or |
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other obligations described by Subsection (d) the local revenue |
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from eligible tax proceeds as defined by Section 2303.5055(e), |
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Government Code, from hotels located in a project financing zone |
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that would be available to the owners of qualified hotel projects |
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under that section if the hotels were qualified hotel projects, |
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excluding any amount received by the municipality for a [hotel] |
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project described by Section 351.102(b) or (c-1) that is [and] |
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located in the zone and that exists on the date the municipality |
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designates the zone unless another law authorizes the municipality |
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to pledge that amount for the payment of the bonds or other |
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obligations. |
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SECTION 3. Section 351.102, Tax Code, is amended by |
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amending Subsection (c) and adding Subsection (c-1) to read as |
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follows: |
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(c) A municipality to which Subsection (b) applies is |
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entitled to receive all funds from a project described by |
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Subsection (b) [this section] that an owner of a project may receive |
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under Section 151.429(h) of this code, or Section 2303.5055, |
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Government Code, and may pledge the funds for the payment of |
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obligations issued under this section. |
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(c-1) A municipality to which this subsection applies is |
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entitled to receive all funds from a hotel and convention center |
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project that the owner of a project could receive under Section |
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151.429(h) of this code or Section 2303.5055, Government Code, if a |
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project for purposes of those provisions included a hotel and |
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convention center project. The municipality may pledge the funds |
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for payment of obligations issued under this section for the hotel |
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and convention center project. For purposes of this subsection, |
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"hotel and convention center project" means a project that is an |
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existing hotel owned by the municipality or another person and a |
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convention center facility to be acquired, constructed, equipped, |
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or leased, that will be located within 1,000 feet of the hotel, and |
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that will be owned by or located on land owned by the municipality. |
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This subsection applies only to a municipality that: |
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(1) is the county seat of a county that: |
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(A) borders the United Mexican States; |
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(B) has a population of less than 300,000; and |
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(C) contains one or more municipalities with a |
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population of 200,000 or more; and |
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(2) holds an annual jalapeño festival. |
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SECTION 4. 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, 2017. |