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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 in |
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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 351.10712 to read as follows: |
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Sec. 351.10712. ALLOCATION OF REVENUE FOR CONSTRUCTION OF |
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SPORTS FACILITIES BY CERTAIN MUNICIPALITIES. (a) This section |
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applies only to a municipality with a population of at least |
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95,000, in which a component university of The University of Texas |
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System is located, and that is located in a county bisected by |
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United States Highway 385 that has a population of not more than |
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140,000. |
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(b) Notwithstanding any other provision of this chapter, a |
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municipality to which this section applies may use revenue derived |
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from the tax imposed under this chapter to construct sports |
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facilities and a multipurpose convocation center capable of hosting |
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intercollegiate athletic events on land owned by a state university |
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if the municipality leases the land on which the sports facility |
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will be located from the university for a term of at least 25 years. |
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(c) A municipality that uses revenue derived from the tax |
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imposed under this chapter for a purpose described by Subsection |
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(b): |
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(1) shall determine the amount of area hotel revenue |
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attributable to the sports events and tournaments held at the |
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sports facility for seven years after the date the municipality |
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first uses hotel occupancy tax revenue for the purpose described by |
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Subsection (b); |
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(2) shall at the end of the seven-year period |
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described by Subdivision (1) reimburse from the municipality's |
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general fund to the municipality's hotel occupancy tax revenue fund |
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any hotel occupancy tax revenue expended on the sports facility |
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during that period in excess of the amount determined under |
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Subdivision (1); and |
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(3) may not during the seven-year period described by |
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Subdivision (1) reduce the percentage of revenue from the tax |
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imposed under this chapter and allocated for a purpose described by |
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Section 351.101(a)(3) to a percentage that is less than the average |
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percentage of that 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 first uses hotel occupancy tax revenue for the purpose |
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described by Subsection (b). |
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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. |