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A BILL TO BE ENTITLED
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AN ACT
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relating to the use of municipal hotel occupancy tax revenue for |
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sporting-related facilities in certain municipalities. |
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BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: |
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SECTION 1. Subchapter B, Chapter 351, Tax Code, is amended |
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by adding Section 351.1068 to read as follows: |
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Sec. 351.1068. ALLOCATION OF REVENUE FOR CERTAIN |
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MUNICIPALITIES. (a) This section applies only to a municipality |
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that is the county seat of a county that: |
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(1) is adjacent to the Texas-Mexico border; |
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(2) has a population of 500,000 or more; and |
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(3) is adjacent to two or more counties each of which |
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has a population of 50,000 or more. |
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(b) A municipality to which this section applies may use |
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local hotel occupancy tax revenue for constructing, maintaining, or |
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expanding a sporting-related facility or sporting-related field on |
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property owned by the municipality if the municipality's sports |
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facilities and fields have been used, in the preceding calendar |
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year, a combined total of more than 10 times for district, state, |
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regional, or national sports tournaments. |
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(c) If a municipality to which this section applies uses |
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revenue derived from the tax imposed under this chapter for the |
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construction or expansion of a sporting-related facility or |
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sporting-related field described by Subsection (b), the |
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municipality shall reimburse the municipality's hotel occupancy |
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tax revenue fund from the municipality's general fund for any |
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expenditure greater than the amount of hotel revenue within the |
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municipality that is attributable to sporting or other events held |
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at the facility or field during the 10 years beginning on the date |
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the construction or expansion is completed. |
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(d) On the second, fourth, sixth, and eighth anniversaries |
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of the date the construction or expansion of a sporting-related |
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facility or sporting-related field described by Subsection (b) is |
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completed, the municipality shall determine and produce a report |
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indicating whether hotel revenue within the municipality |
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attributable to sporting or other events held at the facility or |
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field to date is less than the amount of hotel occupancy tax revenue |
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expended on the facility or field. If hotel revenue within the |
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municipality attributable to sporting events held at the facility |
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or field to date is less than the amount of hotel occupancy tax |
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revenue expended on the facility or field for the preceding |
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two-year period, the municipality shall reimburse the |
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municipality's hotel occupancy tax revenue fund from the |
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municipality's general fund for any expenditure greater than the |
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amount of hotel revenue in the municipality attributable to |
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sporting or other events held at the facility or field. |
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(e) If a municipality to which this section applies uses |
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revenue derived from the tax imposed under this chapter for a |
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purpose described by Subsection (b), the municipality may not |
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reduce the percentage of revenue from the tax imposed under this |
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chapter and allocated for a purpose described by Section |
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351.101(a)(3) to a percentage that is less than the average |
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percentage of revenue allocated by the municipality for that |
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purpose during the 36-month period preceding the date the |
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municipality begins using the revenue for the applicable purpose |
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described by Subsection (b). |
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SECTION 2. This Act takes effect September 1, 2017. |