86R28326 TJB-D
 
  By: Anchia, Bonnen of Galveston, Zerwas, H.B. No. 4347
      Moody, Turner of Tarrant, et al.
 
  Substitute the following for H.B. No. 4347:
 
  By:  Murphy C.S.H.B. No. 4347
 
 
 
A BILL TO BE ENTITLED
 
AN ACT
  relating to the authority of certain municipalities to use certain
  tax revenue for hotel and convention center projects and other
  qualified projects.
         BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
         SECTION 1.  Sections 351.102(b), (c), and (e), Tax Code, are
  amended to read as follows:
         (b)  A municipality described by Subsection (e) [An eligible
  central municipality, a municipality with a population of 173,000
  or more that is located within two or more counties, a municipality
  with a population of 96,000 or more that is located in a county that
  borders Lake Palestine or contains the headwaters of the San
  Gabriel River, or a municipality with a population of at least
  99,900 but not more than 111,000 that is located in a county with a
  population of at least 135,000] may pledge the revenue derived from
  the tax imposed under this chapter from a hotel project that is
  owned by or located on land owned by the municipality or, in an
  eligible central municipality, by a nonprofit corporation acting on
  behalf of an eligible central municipality, and that is located
  within 1,000 feet of a convention center facility owned by the
  municipality for the payment of bonds or other obligations issued
  or incurred to acquire, lease, construct, and equip the hotel and
  any facilities ancillary to the hotel, including convention center
  entertainment-related facilities, meeting spaces, restaurants,
  shops, street and water and sewer infrastructure necessary for the
  operation of the hotel or ancillary facilities, and parking
  facilities within 1,000 feet of the hotel or convention center
  facility. [A municipality with a population of 173,000 or more that
  is located within two or more counties may pledge for the payment of
  bonds or other obligations described by this subsection the revenue
  derived from the tax imposed under this chapter from a hotel project
  not owned by or located on land owned by the municipality if the
  project is located on land that is owned by the federal government
  and the project is located within 1,000 feet of a convention center
  facility owned by the municipality.] For bonds or other
  obligations issued under this subsection, [an eligible central
  municipality or] a municipality described by [this subsection or]
  Subsection (e) may only pledge revenue or other assets of the hotel
  project benefiting from those bonds or other obligations.
         (c)  A [Except as provided by this subsection, a]
  municipality described by [to which] Subsection [(b) or] (e)
  [applies] is entitled to receive all funds from a project described
  by Subsection (b) that an owner of a project may receive under
  Section 151.429(h) of this code, or Section 2303.5055, Government
  Code, and may pledge the funds for the payment of obligations issued
  under this section, but only if[. A municipality described by
  Subsection (e) is not entitled to receive funds from a project under
  this subsection unless] the municipality has pledged the revenue
  derived from the tax imposed under this chapter from the project for
  the payment of bonds or other obligations issued or incurred for the
  project.
         (e)  Subsection (b) applies only [In addition to the
  municipalities described by Subsection (b), that subsection also
  applies] to:
               (1)  a municipality with a population of two million or
  more;
               (2)  a municipality with a population of 700,000 or
  more but less than 1.3 million;
               (3)  a municipality with a population of 350,000 or
  more but less than 450,000 in which two professional sports
  stadiums are located, each of which:
                     (A)  has a seating capacity of at least 40,000
  people; and
                     (B)  was approved by the voters of the
  municipality as a sports and community venue project under Chapter
  334, Local Government Code; and
               (4)  [at least 110,000 but not more than 135,000 at
  least part of which is located in a county with a population of not
  more than 135,000;
               [(2)     a municipality with a population of at least
  9,000 but not more than 10,000 that is located in two counties, each
  of which has a population of at least 662,000 and a southern border
  with a county with a population of 2.3 million or more;
               [(3)     a municipality with a population of at least
  200,000 but not more than 300,000 that contains a component
  institution of the Texas Tech University System;
               [(4)     a municipality with a population of at least
  95,000 that borders Lake Lewisville;
               [(5)  a municipality that:
                     [(A)  contains a portion of Cedar Hill State Park;
                     [(B)  has a population of more than 45,000;
                     [(C)     is located in two counties, one of which has
  a population of more than two million and one of which has a
  population of more than 149,000; and
                     [(D)     has adopted a capital improvement plan for
  the construction or expansion of a convention center facility;
               [(6)     a municipality with a population of less than
  6,000 that:
                     [(A)     is located in two counties each with a
  population of 600,000 or more that are both adjacent to a county
  with a population of two million or more;
                     [(B)     has full-time police and fire departments;
  and
                     [(C)     has adopted a capital improvement plan for
  the construction or expansion of a convention center facility;
               [(7)     a municipality with a population of at least
  56,000 that:
                     [(A)  borders Lake Ray Hubbard; and
                     [(B)     is located in two counties, one of which has
  a population of less than 80,000;
               [(8)     a municipality with a population of more than
  83,000, that borders Clear Lake, and that is primarily located in a
  county with a population of less than 300,000;
               [(9)]  a municipality with a population of less than
  2,000 that:
                     (A)  is located adjacent to a bay connected to the
  Gulf of Mexico;
                     (B)  is located in a county with a population of
  290,000 or more that is adjacent to a county with a population of
  four million or more; and
                     (C)  has a boardwalk on the bay[;
               [(10)     a municipality with a population of 75,000 or
  more that:
                     [(A)     is located wholly in one county with a
  population of 575,000 or more that is adjacent to a county with a
  population of four million or more; and
                     [(B)     has adopted a capital improvement plan for
  the construction or expansion of a convention center facility;
               [(11)     a municipality with a population of less than
  75,000 that is located in three counties, at least one of which has
  a population of at least four million; and
               [(12)     an eligible coastal municipality with a
  population of more than 3,000 but less than 5,000].
         SECTION 2.  Section 351.102(d), Tax Code, is redesignated as
  Section 351.1063, Tax Code, and amended to read as follows:
         Sec. 351.1063.  ALLOCATION OF REVENUE FOR ADVERTISING AND
  PROMOTION: CERTAIN MUNICIPALITIES WITH CERTAIN PROJECTS. (a) This
  section applies only to a municipality described by Section
  351.102(e) or 351.152, other than an eligible central municipality
  described by Section 351.001(7)(D).
         (b)  A [(d)   Except as provided by this subsection, an
  eligible central] municipality [or another municipality described
  by Subsection (b) or (e)] that uses revenue derived from the tax
  imposed under this chapter or funds received under Section
  351.102(c), 351.156, or 351.157 [Subsection (c)] for a hotel
  project under Section 351.102(b) or a qualified project under
  Section 351.155 [described by Subsection (b)] may not reduce the
  percentage of revenue from the tax imposed under this chapter and
  allocated for a purpose described by Section 351.101(a)(3) to a
  percentage that is less than the average percentage of that revenue
  allocated by the municipality for that purpose during the 36-month
  period preceding the date the municipality begins using the revenue
  or funds for the hotel project. [This subsection does not apply to
  an eligible central municipality described by Section
  351.001(7)(D).]
         SECTION 3.  Section 351.102(f), Tax Code, is redesignated as
  Section 351.1064, Tax Code, and amended to read as follows:
         Sec. 351.1064.  ALLOCATION OF REVENUE FOR CERTAIN SPORTING
  EVENT EXPENSES: CERTAIN MUNICIPALITIES WITH QUALIFIED PROJECT. (a)
  This section applies only to a municipality with a population of
  200,000 or more but less than 300,000 that contains a component
  institution of the Texas Tech University System.
         (b) [(f)]  A municipality [described by Subsection (e)(3)]
  that uses revenue derived from the tax imposed under this chapter or
  funds received under Section 351.156 [Subsection (c)] for repayment
  of bonds or other obligations issued or incurred for a qualified 
  [hotel] project under Section 351.155 [described by Subsection (b)]
  may not, in a fiscal year that begins after [construction of] the
  qualified [hotel] project is complete and during any part of which
  the bonds or other obligations are outstanding, reduce the amount
  of revenue derived from the tax imposed under this chapter and
  allocated for a purpose described by Section 351.101(a)(6) to an
  amount that is less than the sum of:
               (1)  the amount of the revenue derived from the tax
  imposed under this chapter and allocated by the municipality for a
  purpose described by Section 351.101(a)(6) during the fiscal year
  beginning October 1, 2016; and
               (2)  three percent of the amount of revenue derived
  from the tax imposed under this chapter during the fiscal year for
  which the amount required by this subsection is being determined.
         SECTION 4.  Subchapter B, Chapter 351, Tax Code, is amended
  by adding Section 351.1021 to read as follows:
         Sec. 351.1021.  PLEDGE FOR BONDS BY CERTAIN MUNICIPALITIES.
  (a) In this section:
               (1)  "Eligible municipality" means a municipality
  described by Section 351.102(e)(4).
               (2)  "Multipurpose convention center facility" means a
  facility that has been or will be constructed and that:
                     (A)  is used to host conventions, meetings, live
  performances, and sporting events;
                     (B)  is:
                           (i)  leased by an eligible municipality; or
                           (ii)  wholly owned by an eligible
  municipality, and none of which is or may be owned through an
  undivided common interest;
                     (C)  is not located in a hotel or other structure;
                     (D)  has at least 10,000 square feet of continuous
  and usable meeting space; and
                     (E)  is configurable to simultaneously
  accommodate multiple events described by Paragraph (A) of different
  sizes and types.
               (3)  "Multipurpose convention center facility project"
  means a project that consists of a hotel owned by an eligible
  municipality or another person and a multipurpose convention center
  facility to be acquired, constructed, equipped, or leased by the
  municipality, the nearest exterior wall of which is located not
  more than 2,500 feet from the nearest exterior wall of the hotel. A
  multipurpose convention center facility project may include:
                     (A)  each new or existing business located in the
  municipality, regardless of who owns the business or the property
  on which the business is located, the nearest exterior wall of which
  is located not more than 2,500 feet from the nearest exterior wall
  of the multipurpose convention center facility or the hotel that is
  part of the project; and
                     (B)  any parking area or structure located in the
  municipality, regardless of who owns the area or structure or the
  property on which the area or structure is located, the nearest
  property line of which is located not more than two miles from the
  nearest exterior wall of the multipurpose convention center
  facility.
         (b)  An eligible municipality or local government
  corporation acting on behalf of an eligible municipality is
  entitled to receive all funds from a multipurpose convention center
  facility project that the owner of a project could receive under
  Section 151.429(h) of this code or Section 2303.5055, Government
  Code, if a project for purposes of those provisions included a
  multipurpose convention center facility project.
         (c)  An eligible municipality may pledge the funds to which
  the municipality is entitled as provided by Subsection (b) for the
  payment of bonds or other obligations issued or incurred to
  acquire, lease, construct, or equip the multipurpose convention
  center facility project.
         (d)  The comptroller shall deposit the funds to which an
  eligible municipality is entitled as provided by Subsection (b) in
  a separate suspense account of the municipality outside the state
  treasury.
         (e)  The comptroller may make a rebate, refund, or payment
  authorized under this section without the necessity of an
  appropriation. The comptroller shall rebate, refund, or pay to the
  eligible municipality the funds to which the municipality is
  entitled as provided by Subsection (b) at least quarterly.
         SECTION 5.  Subchapter B, Chapter 351, Tax Code, is amended
  by adding Section 351.1022 to read as follows:
         Sec. 351.1022.  PLEDGE FOR BONDS BY CERTAIN MUNICIPALITIES
  WITH SPORTS STADIUMS. (a) This section applies only to a
  municipality described by Section 351.102(e)(3).
         (b)  A municipality is entitled to receive all funds from a
  hotel project described by Section 351.102(b) that an owner of a
  project may receive under Section 151.429(h) of this code or
  Section 2303.5055, Government Code, and all tax revenue collected
  under Chapter 183 by or from all permittees at the hotel project,
  excluding revenue disbursed by the comptroller under Section
  183.051(b).
         (c)  The municipality may pledge the funds to which the
  municipality is entitled as provided by Subsection (b) for the
  payment of bonds or other obligations issued or incurred to
  acquire, lease, construct, improve, enlarge, and equip the hotel
  project.
         (d)  Notwithstanding any other law, the municipality is
  entitled to receive the funds for a period of 30 years beginning on
  the date the hotel project is open for initial occupancy.
         (e)  The comptroller shall deposit the funds to which the
  municipality is entitled as provided by Subsection (b) in a
  separate suspense account of the municipality outside the state
  treasury.
         (f)  The comptroller may make a rebate, refund, or payment
  authorized under this section without the necessity of an
  appropriation. The comptroller shall rebate, refund, or pay to the
  municipality the funds to which the municipality is entitled as
  provided by Subsection (b) at least monthly.
         SECTION 6.  Chapter 351, Tax Code, is amended by adding
  Subchapter C to read as follows:
  SUBCHAPTER C. MUNICIPAL HOTEL AND CONVENTION CENTER PROJECTS
         Sec. 351.151.  DEFINITIONS. In this subchapter:
               (1)  "Infrastructure" includes:
                     (A)  a road, street, highway, bridge, overpass,
  underpass, and interchange;
                     (B)  a fresh water supply system, sanitary sewer
  system, and storm drainage system;
                     (C)  an electric system, telecommunications
  system, and gas system; and
                     (D)  a public amenity or public area, such as a
  plaza, park, or trail.
               (2)  "Qualified convention center facility" means a
  facility that has been or will be constructed and that:
                     (A)  is primarily used to host conventions or
  meetings;
                     (B)  is wholly owned by a municipality to which
  this subchapter applies, and none of which is or may be owned
  through an undivided common interest;
                     (C)  is connected to a qualified hotel or has an
  exterior wall that is located not more than 1,000 feet from the
  nearest exterior wall of a qualified hotel;
                     (D)  is not located in a hotel, sports stadium, or
  other structure;
                     (E)  has at least 10,000 square feet of continuous
  meeting space; and
                     (F)  is configurable to simultaneously
  accommodate multiple events described by Paragraph (A) of different
  sizes and types.
               (3)  "Qualified hotel" means a hotel that is designated
  by a municipality to which this subchapter applies as the hotel that
  is part of a qualified project. A qualified hotel must:
                     (A)  be located on land owned by the designating
  municipality; and
                     (B)  be connected to a qualified convention center
  facility or have an exterior wall that is located not more than
  1,000 feet from the nearest exterior wall of the qualified
  convention center facility.
               (4)  "Qualified project" means a project:
                     (A)  to:
                           (i)  acquire, construct, repair, remodel,
  expand, or equip a qualified convention center facility; and
                           (ii)  acquire, lease, construct, repair,
  remodel, expand, or equip a qualified hotel; and
                     (B)  that may include:
                           (i)  acquiring, leasing, constructing,
  repairing, remodeling, expanding, or equipping:
                                 (a)  a restaurant, bar, retail
  establishment, or spa located in a qualified convention center
  facility or qualified hotel or connected to a qualified convention
  center facility or qualified hotel, including by a covered walkway;
  or
                                 (b)  a parking area or structure, the
  nearest property line of which is located not more than 1,000 feet
  from the nearest property line of a qualified convention center
  facility or qualified hotel;
                           (ii)  acquiring, constructing, repairing,
  remodeling, or expanding infrastructure located:
                                 (a)  within the property lines of a
  qualified convention center facility or qualified hotel; or
                                 (b)  not more than 1,000 feet from the
  nearest property line of the facility or hotel; or
                           (iii)  acquiring a property right, including
  a fee simple interest, easement, or other interest in connection
  with a purpose described by this subdivision.
               (5)  "Retail establishment" means a retail store that
  primarily sells tangible personal property.
         Sec. 351.152.  APPLICABILITY. This subchapter applies only
  to:
               (1)  a municipality described by Section
  351.001(7)(B);
               (2)  a municipality described by Section
  351.001(7)(D);
               (3)  a municipality described by Section
  351.001(7)(E);
               (4)  a municipality described by Section
  351.102(e)(3);
               (5)  a municipality that contains more than 75 percent
  of the population of a county with a population of 1.5 million or
  more;
               (6)  a municipality with a population of 150,000 or
  more but less than 200,000 that is partially located in at least one
  county with a population of 125,000 or more;
               (7)  a municipality with a population of 150,000 or
  more but less than one million that is located in one county with a
  population of 2.3 million or more;
               (8)  a municipality with a population of 180,000 or
  more that:
                     (A)  is located in two counties, each with a
  population of 100,000 or more; and
                     (B)  contains an American Quarter Horse Hall of
  Fame and Museum;
               (9)  a municipality with a population of 96,000 or more
  that is located in a county that borders Lake Palestine;
               (10)  a municipality with a population of 96,000 or
  more that is located in a county that contains the headwaters of the
  San Gabriel River;
               (11)  a municipality with a population of 99,900 or
  more but less than 111,000 that is located in a county with a
  population of 135,000 or more;
               (12)  a municipality with a population of 110,000 or
  more but less than 135,000 at least part of which is located in a
  county with a population of less than 135,000;
               (13)  a municipality with a population of 9,000 or more
  but less than 10,000 that is located in two counties, each of which
  has a population of 662,000 or more and a southern border with a
  county with a population of 2.3 million or more;
               (14)  a municipality with a population of 200,000 or
  more but less than 300,000 that contains a component institution of
  the Texas Tech University System;
               (15)  a municipality with a population of 95,000 or
  more that:
                     (A)  is located in more than one county; and
                     (B)  borders Lake Lewisville;
               (16)  a municipality with a population of 45,000 or
  more that:
                     (A)  contains a portion of Cedar Hill State Park;
                     (B)  is located in two counties, one of which has a
  population of two million or more and one of which has a population
  of 149,000 or more; and
                     (C)  has adopted a capital improvement plan for
  the construction or expansion of a convention center facility;
               (17)  a municipality with a population of less than
  6,000 that:
                     (A)  is almost wholly located in a county with a
  population of 600,000 or more that is adjacent to a county with a
  population of two million or more;
                     (B)  is partially located in a county with a
  population of 1.8 million or more that is adjacent to a county with
  a population of two million or more;
                     (C)  has a visitor center and museum located in a
  19th-century rock building in the municipality's downtown; and
                     (D)  has a waterpark open to the public;
               (18)  a municipality with a population of 56,000 or
  more that:
                     (A)  borders Lake Ray Hubbard; and
                     (B)  is located in two counties, one of which has a
  population of less than 80,000;
               (19)  a municipality with a population of 83,000 or
  more that:
                     (A)  borders Clear Lake; and
                     (B)  is primarily located in a county with a
  population of less than 300,000;
               (20)  a municipality with a population of less than
  2,000 that:
                     (A)  is located adjacent to a bay connected to the
  Gulf of Mexico;
                     (B)  is located in a county with a population of
  290,000 or more that is adjacent to a county with a population of
  four million or more; and
                     (C)  has a boardwalk on the bay;
               (21)  a municipality with a population of 75,000 or
  more that:
                     (A)  is located wholly in one county with a
  population of 575,000 or more that is adjacent to a county with a
  population of four million or more; and
                     (B)  has adopted a capital improvement plan for
  the construction or expansion of a convention center facility;
               (22)  a municipality with a population of less than
  75,000 that is located in three counties, at least one of which has
  a population of four million or more;
               (23)  an eligible coastal municipality with a
  population of 3,000 or more but less than 5,000;
               (24)  a municipality with a population of 90,000 or
  more but less than 150,000 that:
                     (A)  is located in three counties; and
                     (B)  contains a branch campus of a component
  institution of the University of Houston System;
               (25)  a municipality that is:
                     (A)  primarily located in a county with a
  population of four million or more; and
                     (B)  connected by a bridge to a municipality
  described by Subdivision (20);
               (26)  a municipality with a population of 20,000 or
  more but less than 25,000 that:
                     (A)  contains a portion of Mustang Bayou; and
                     (B)  is wholly located in a county with a
  population of less than 500,000;
               (27)  a municipality with a population of 70,000 or
  more but less than 85,000 that is located in two counties, one of
  which has a population of four million or more and the other of
  which has a population of less than 50,000;
               (28)  a municipality with a population of 10,000 or
  more that:
                     (A)  is wholly located in a county with a
  population of four million or more; and
                     (B)  has a city hall located less than three miles
  from a space center operated by an agency of the federal government;
               (29)  a municipality that is the county seat of a
  county:
                     (A)  through which the Pedernales River flows; and
                     (B)  in which the birthplace of a president of the
  United States is located;
               (30)  a municipality that contains a portion of U.S.
  Highway 79 and State Highway 130;
               (31)  a municipality with a population of 48,000 or
  more but less than 95,000 that is located in two counties, one of
  which has a population of 900,000 or more but less than 1.7 million;
               (32)  a municipality with a population of less than
  25,000 that contains a museum of Western American art;
               (33)  a municipality with a population of 50,000 or
  more that is the county seat of a county that contains a portion of
  the Sam Houston National Forest;
               (34)  a municipality with a population of less than
  25,000 that:
                     (A)  contains a cultural heritage museum; and
                     (B)  is located in a county that borders the
  United Mexican States and the Gulf of Mexico;
               (35)  a municipality that is the county seat of a county
  that:
                     (A)  has a population of 115,000 or more;
                     (B)  is adjacent to a county with a population of
  1.8 million or more; and
                     (C)  hosts an annual peach festival;
               (36)  a municipality that is the county seat of a county
  that:
                     (A)  has a population of 585,000 or more; and
                     (B)  is adjacent to a county with a population of
  four million or more;
               (37)  a municipality with a population of less than
  10,000 that:
                     (A)  contains a component university of The Texas
  A&M University System; and
                     (B)  is located in a county adjacent to a county
  that borders Oklahoma;
               (38)  a municipality with a population of less than
  6,100 that:
                     (A)  is located in two counties, each of which has
  a population of 600,000 or more but less than two million; and
                     (B)  hosts an annual Cajun Festival;
               (39)  a municipality with a population of 13,000 or
  more that:
                     (A)  is located on an international border; and
                     (B)  is located in a county:
                           (i)  with a population of less than 400,000;
  and
                           (ii)  in which is located at least one World
  Birding Center site; and
               (40)  a municipality with a population of 4,000 or more
  that:
                     (A)  is located on an international border; and
                     (B)  is located not more than five miles from a
  state historic site that serves as a visitor center for a state park
  that contains 300,000 or more acres of land.
         Sec. 351.153.  EXCEPTION TO OWNERSHIP REQUIREMENT. (a)
  This section applies only to a municipality described by Section
  351.152(6) or (29).
         (b)  Section 351.151(2)(B) does not apply to a facility that
  otherwise meets the requirements of a qualified convention center
  facility under Section 351.151.
         (c)  Section 351.151(3)(A) does not apply to a hotel that
  otherwise meets the requirements of a qualified hotel under Section
  351.151.
         Sec. 351.154.  NONPROFIT CORPORATION AS MUNICIPAL AGENT. A
  municipality may authorize a nonprofit corporation to act on behalf
  of the municipality for any purpose under this subchapter.
         Sec. 351.155.  PLEDGE OF CERTAIN TAX REVENUE FOR OBLIGATIONS
  FOR QUALIFIED PROJECT. (a) In addition to the authority of a
  municipality to issue debt under Chapter 1504, Government Code, a
  municipality may pledge the revenue derived from the tax imposed
  under this chapter from a qualified hotel and the revenue to which
  the municipality is entitled under Section 351.156 and, if
  applicable, Section 351.157 for the payment of:
               (1)  bonds or other obligations issued for a qualified
  project; and
               (2)  contractual obligations under a contract
  authorized by Chapter 380, Local Government Code, for the qualified
  project.
         (b)  A municipality may pledge revenue for the payment of
  bonds, other obligations, or contractual obligations under
  Subsection (a) only if the qualified hotel that is a component of
  the qualified project for which that revenue is pledged benefits
  from the pledging of that revenue.
         (c)  A municipality may pledge revenue under this section for
  only one qualified project. After a municipality pledges revenue
  under this section for a qualified project, the municipality may
  not ever again pledge revenue for a qualified project.
         (d)  Subsection (c) does not apply to a municipality with a
  population of 175,000 or more.
         (e)  A municipality is not entitled to receive funds from a
  qualified project under this subchapter unless the municipality has
  pledged a portion of the revenue derived from the tax imposed under
  this chapter from the project for the payment of bonds, other
  obligations, or contractual obligations described by Subsection
  (a) and issued or incurred for the project.
         Sec. 351.156.  ENTITLEMENT TO CERTAIN TAX REVENUE. Subject
  to Sections 351.155(e) and 351.158, a municipality is entitled to
  receive the revenue derived from the following taxes generated,
  paid, and collected by a qualified hotel, and each restaurant, bar,
  and retail establishment located in or connected to the hotel, that
  is located in the municipality:
               (1)  the sales and use tax imposed under Chapter 151;
               (2)  the hotel occupancy tax imposed under Chapter 156;
  and
               (3)  if a political subdivision that is entitled to
  receive the revenue from the tax agrees in writing to the
  municipality receiving that revenue:
                     (A)  the sales and use tax imposed by the
  political subdivision under Chapter 322 or 323;
                     (B)  the hotel occupancy tax imposed by the
  political subdivision under Chapter 352; and
                     (C)  the mixed beverage tax issued under Section
  183.051.
         Sec. 351.157.  ADDITIONAL ENTITLEMENT FOR CERTAIN
  MUNICIPALITIES. (a) In this section, "qualified establishment"
  means an establishment that:
               (1)  is located:
                     (A)  on land owned by a municipality; and
                     (B)  not more than 1,000 feet from the nearest
  exterior wall of a qualified hotel or qualified convention center
  facility;
               (2)  is constructed on or after the date the
  municipality commences a qualified project under this subchapter;
               (3)  is not a sports stadium; and
               (4)  is the type of establishment described by
  Subsection (c) from which the municipality is entitled to receive
  revenue under Subsection (d).
         (b)  This section applies only to:
               (1)  a municipality described by Section 351.152(3);
               (2)  a municipality described by Section 351.152(6);
               (3)  a municipality described by Section 351.152(7);
               (4)  a municipality described by Section 351.152(10);
               (5)  a municipality described by Section 351.152(16);
               (6)  a municipality described by Section 351.152(25);
               (7)  a municipality described by Section 351.152(34);
               (8)  a municipality described by Section 351.152(35);
               (9)  a municipality described by Section 351.152(36);
  and
               (10)  a municipality described by Section 351.152(38).
         (c)  A municipality is entitled to receive revenue under
  Subsection (d) derived from the following types of establishments
  that meet the requirements of Subsections (a)(1), (2), and (3):
               (1)  for a municipality described by Subsection (b)(1):
                     (A)  restaurants, bars, and retail
  establishments; and
                     (B)  swimming pools, swimming facilities, and
  related facilities owned or operated by the related qualified
  hotel;
               (2)  for a municipality described by Subsection (b)(2),
  restaurants, bars, and retail establishments;
               (3)  for a municipality described by Subsection (b)(3),
  restaurants, bars, and retail establishments;
               (4)  for a municipality described by Subsection (b)(4):
                     (A)  restaurants, bars, and retail
  establishments; and
                     (B)  swimming pools, swimming facilities, and
  related facilities owned or operated by the related qualified
  hotel;
               (5)  for a municipality described by Subsection (b)(5),
  restaurants, bars, and retail establishments;
               (6)  for a municipality described by Subsection (b)(6),
  restaurants, bars, and retail establishments;
               (7)  for a municipality described by Subsection (b)(7),
  restaurants, bars, and retail establishments;
               (8)  for a municipality described by Subsection (b)(8),
  restaurants, bars, and retail establishments;
               (9)  for a municipality described by Subsection (b)(9),
  restaurants, bars, and retail establishments; and
               (10)  for a municipality described by Subsection
  (b)(10):
                     (A)  restaurants, bars, and retail
  establishments; and
                     (B)  swimming pools, swimming facilities, and
  related facilities owned or operated by the related qualified
  hotel.
         (d)  Subject to Subsection (e), in addition to the revenue to
  which the municipality is entitled under Section 351.156, a
  municipality to which this section applies is entitled to receive
  the revenue derived from the following taxes generated, paid, and
  collected from a qualified establishment located in the
  municipality:
               (1)  the sales and use tax imposed under Chapter 151;
  and
               (2)  the mixed beverage tax issued under Section
  183.051, if the political subdivision that is entitled to receive
  the revenue from the tax agrees in writing to the municipality
  receiving that revenue.
         (e)  A municipality to which this section applies is not
  entitled to receive revenue under Subsection (d) unless the
  municipality commences a qualified project under this subchapter
  before September 1, 2023.
         Sec. 351.158.  PERIOD OF ENTITLEMENT. A municipality is
  entitled to receive revenue as provided by Sections 351.156 and
  351.157 until the 10th anniversary of the date the qualified hotel
  to which the entitlement relates is open for initial occupancy.
         Sec. 351.159.  DEPOSIT OF REVENUE. Notwithstanding any
  other law, the comptroller shall deposit the revenue from the taxes
  described by Sections 351.156 and 351.157 that were collected by or
  forwarded to the comptroller in trust in a separate suspense
  account of the qualified project. The suspense account is outside
  the state treasury and the comptroller may make a payment
  authorized by this subchapter without the necessity of an
  appropriation.
         Sec. 351.160.  QUARTERLY PAYMENTS. The comptroller shall
  pay to each municipality the revenue to which the municipality is
  entitled under this subchapter at least quarterly.
         SECTION 7.  Sections 351.102(b-1), (c-1), and (g), Tax Code,
  are repealed.
         SECTION 8.  The comptroller of public accounts may adopt
  rules as necessary to administer this Act.
         SECTION 9.  The changes in law made to Subchapter B, Chapter
  351, Tax Code, by this Act apply only to a hotel project described
  by Section 351.102(b), Tax Code, as amended by this Act, for which a
  municipality by ordinance first authorizes the issuance of bonds or
  other obligations secured by a pledge of revenue under that
  subsection for the project on or after the effective date of this
  Act. A hotel project described by Section 351.102(b), Tax Code, for
  which a municipality by ordinance first authorized the issuance of
  bonds or other obligations secured by a pledge of revenue under that
  subsection for the project before the effective date of this Act is
  governed by the law in effect when the ordinance was adopted, and
  that law is continued in effect for purposes of those hotel
  projects.
         SECTION 10.  Subchapter C, Chapter 351, Tax Code, as added by
  this Act, applies only to a qualified project as defined by Section
  351.151, Tax Code, as added by this Act, for which a municipality by
  ordinance first authorizes the issuance of bonds or other
  obligations, or executes an agreement under Chapter 380, Local
  Government Code, secured by a pledge of revenue under Subchapter C,
  Chapter 351, Tax Code, for the project on or after the effective
  date of this Act.
         SECTION 11.  The changes in law made by this Act do not
  affect the validity of a bond or other obligation for which revenue
  was pledged under Section 351.102, Tax Code, before the effective
  date of this Act. Bonds or other obligations for which revenue was
  pledged before the effective date of this Act are governed by the
  law in effect when the revenue was pledged, and that law is
  continued in effect for purposes of the validity of those bonds and
  obligations.
         SECTION 12.  This Act takes effect September 1, 2019.