S.B. No. 440
 
 
 
 
AN ACT
  relating to the use by certain municipalities of hotel occupancy
  tax revenue to improve or expand certain airports.
         BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
         SECTION 1.  Subchapter B, Chapter 351, Tax Code, is amended
  by adding Section 351.1036 to read as follows:
         Sec. 351.1036.  ALLOCATION OF REVENUE FOR AIRPORTS BY
  CERTAIN MUNICIPALITIES IN BORDER COUNTIES.  (a)  This section
  applies only to a municipality that is the county seat of a county
  that borders:
               (1)  the United Mexican States;
               (2)  a county described by Section 352.002(a)(7); and
               (3)  a county described by Section 352.002(a)(14).
         (b)  Notwithstanding any other provision of this chapter, a
  municipality to which this section applies may use municipal hotel
  occupancy tax revenue to improve or expand an airport:
               (1)  owned by the county in which the municipality is
  located;
               (2)  located more than 150 miles from the nearest
  airport in this state with regularly scheduled commercial airline
  flights; and
               (3)  substantially used for private air service that
  transports individuals staying at hotels in or near the
  municipality.
         (c)  A municipality to which this section applies may not use
  municipal hotel occupancy tax revenue to improve or expand an
  airport described by Subsection (b):
               (1)  in an amount each fiscal year that exceeds 15
  percent of the hotel occupancy tax revenue collected by the
  municipality during that year; or
               (2)  in a total amount under this section that would
  exceed the amount of hotel revenue in the municipality that is
  likely to be reasonably attributable to guests traveling through
  the airport during the 15-year period beginning on the date the
  municipality first uses municipal hotel occupancy tax revenue to
  improve or expand the airport.
         (d)  A municipality to which this section applies may not use
  municipal hotel occupancy tax revenue to improve or expand an
  airport described by Subsection (b) after the 10th anniversary of
  the date the municipality first uses that revenue for that purpose.
         (e)  The governing body of a municipality shall retain
  sufficient control over revenue described by this section to ensure
  the revenue is used to benefit the municipality by improving or
  expanding an airport described by Subsection (b).
         (f)  This section expires December 31, 2032.
         SECTION 2.  This Act takes effect immediately if it receives
  a vote of two-thirds of all the members elected to each house, as
  provided by Section 39, Article III, Texas Constitution.  If this
  Act does not receive the vote necessary for immediate effect, this
  Act takes effect September 1, 2017.
 
 
 
 
 
  ______________________________ ______________________________
     President of the Senate Speaker of the House     
 
         I hereby certify that S.B. No. 440 passed the Senate on April
  4, 2017, by the following vote:  Yeas 29, Nays 2.
 
 
  ______________________________
  Secretary of the Senate    
 
         I hereby certify that S.B. No. 440 passed the House on May
  21, 2017, by the following vote:  Yeas 107, Nays 32, one present
  not voting.
 
 
  ______________________________
  Chief Clerk of the House   
 
 
 
  Approved:
 
  ______________________________ 
              Date
 
 
  ______________________________ 
            Governor