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A BILL TO BE ENTITLED
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AN ACT
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relating to the authority of a municipality to pledge certain tax |
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revenue for the payment of obligations related to hotel 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 adding |
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Subsection (c-2) to read as follows: |
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(c-2) A municipality to which this subsection applies is |
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eligible to receive all funds from a hotel project described by |
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Subsection (b) 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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all tax revenue collected under Chapter 183 by or from all |
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permittees at the hotel project, excluding revenue disbursed by the |
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comptroller under Section 183.051(b). The municipality may pledge |
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those funds for the payment of bonds or other obligations issued or |
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incurred to acquire, lease, construct, improve, enlarge, and equip |
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the hotel project. Notwithstanding any other law, the municipality |
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is entitled to receive the funds for a period of 30 years beginning |
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on the date the hotel project is open for initial occupancy. The |
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comptroller shall deposit the funds in a separate suspense account |
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of the municipality outside the state treasury. The comptroller |
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may make a rebate, refund, or payment authorized under this |
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subsection without the necessity of an appropriation. The |
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comptroller shall rebate, refund, or pay to the municipality the |
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funds to which the municipality is entitled under this subsection |
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at least monthly. This subsection applies only to a municipality: |
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(1) that is an eligible central municipality under |
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Section 351.001(7)(A) with a population of less than 400,000; and |
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(2) in which two professional sports stadiums are |
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located, each with a seating capacity of at least 40,000 people. |
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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, 2019. |