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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 use certain |
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tax revenue for certain projects and to pledge that revenue for the |
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payment of obligations related to those 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 Subsections (b), (c), and (d) and adding Subsection (e) to |
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read as follows: |
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(b) An eligible central municipality, a municipality with a |
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population of 173,000 or more that is located within two or more |
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counties, a municipality with a population of 96,000 or more that is |
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located in a county that borders Lake Palestine or contains the |
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headwaters of the San Gabriel River, or a municipality with a |
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population of at least 99,900 but not more than 111,000 that is |
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located in a county with a population of at least 135,000 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, meeting spaces, restaurants, shops, street and water |
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and sewer infrastructure necessary for the operation of the hotel |
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or ancillary facilities, and parking facilities within 1,000 feet |
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of the hotel or convention center facility. For bonds or other |
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obligations issued under this subsection, an eligible central |
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municipality or a municipality described by this subsection or |
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Subsection (e) may only pledge revenue or other assets of the hotel |
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project benefiting from those bonds or other obligations. |
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(c) A municipality to which Subsection (b) or (e) applies is |
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entitled to receive all funds from a project described by this |
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section that an owner of a 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 obligations issued under |
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this section. |
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(d) Except as provided by this subsection, an eligible |
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central municipality or another municipality described by |
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Subsection (b) or (e) that uses revenue derived from the tax imposed |
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under this chapter or funds received under Subsection (c) for a |
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hotel project described by Subsection (b) 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 revenue |
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allocated by the municipality for that purpose during the 36-month |
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period preceding the date the municipality begins using the revenue |
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or funds for the hotel project. This subsection does not apply to |
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an eligible central municipality described by Section |
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351.001(7)(D). |
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(e) In addition to the municipalities described by |
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Subsection (b), that subsection also applies to a municipality that |
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borders Clear Lake, has a population of more than 83,000, and is |
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primarily located in a county with a population of less than |
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300,000. In addition to the uses authorized by Subsections (a) and |
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(b) and Section 351.101, a municipality described by this |
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subsection may: |
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(1) use revenue derived from the tax imposed under |
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this chapter and funds received under Subsection (c) to acquire |
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sites for and construct, improve, enlarge, equip, repair, operate, |
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and maintain the following to attract tourists to the municipality: |
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(A) coliseums and multiuse facilities; |
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(B) venues as defined by Sections 334.001(4)(A), |
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(B), (C), and (D), Local Government Code; and |
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(C) related infrastructure as defined by Section |
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334.001, Local Government Code; and |
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(2) pledge that revenue for the payment of bonds or |
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other obligations issued or incurred for a purpose described by |
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Subdivision (1). |
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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, 2017. |