By: Anchia, et al. (Senate Sponsor - Nelson, et al.) H.B. No. 4347
         (In the Senate - Received from the House May 7, 2019;
  May 10, 2019, read first time and referred to Committee on Finance;
  May 19, 2019, reported adversely, with favorable Committee
  Substitute by the following vote:  Yeas 10, Nays 3; May 19, 2019,
  sent to printer.)
Click here to see the committee vote
 
  COMMITTEE SUBSTITUTE FOR H.B. No. 4347 By:  Nelson
 
 
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.  Section 351.001, Tax Code, is amended by adding
  Subdivision (12) to read as follows:
               (12)  "Retail establishment" means an establishment
  engaged in activities described by North American Industry
  Classification System subsector code 442, 443, 445, 446, 448, 451,
  452, or 453.
         SECTION 2.  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 qualified convention center facility, as
  defined by Section 351.151, 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,
  retail establishments [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 3.  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 4.  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, or contractual 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, or
  contractual 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 5.  Subchapter B, Chapter 351, Tax Code, is amended
  by adding Section 351.1021 to read as follows:
         Sec. 351.1021.  PLEDGE OR COMMITMENT OF CERTAIN TAX REVENUE
  FOR CERTAIN PROJECTS. (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 will be constructed and, after that construction:
                     (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, 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;
                     (B)  a parking shuttle or transportation system;
  and
                     (C)  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. The municipality
  or local government corporation is entitled to receive the funds
  for a period of 10 years beginning on the date the multipurpose
  convention center facility is issued a certificate of occupancy.
         (c)  An eligible municipality or local government
  corporation acting on behalf of an eligible municipality may pledge
  or commit the funds to which the municipality or local government
  corporation is entitled as provided by Subsection (b) for the
  payment of bonds, other obligations, or contractual obligations
  issued or incurred for the multipurpose convention center facility
  project.
         (d)  The comptroller shall deposit the funds to which an
  eligible municipality or local government corporation 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 or local
  government corporation is entitled as provided by Subsection (b) at
  least quarterly.
         SECTION 6.  Subchapter B, Chapter 351, Tax Code, is amended
  by adding Section 351.1022 to read as follows:
         Sec. 351.1022.  PLEDGE OR COMMITMENT OF CERTAIN TAX REVENUE
  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). 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.
         (c)  The municipality may pledge the funds to which the
  municipality is entitled as provided by Subsection (b) for the
  payment of bonds, other obligations, or contractual obligations
  issued or incurred to acquire, lease, construct, improve, enlarge,
  and equip the hotel project.
         (d)  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.
         (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
  municipality the funds to which the municipality is entitled as
  provided by Subsection (b) at least monthly.
         SECTION 7.  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, reuse, or alternative water supply
  system, sanitary sewer system, and storm drainage system;
                     (C)  an electric system, telecommunications
  system, and gas system;
                     (D)  signage, landscaping, and hardscaping; and
                     (E)  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 but may share common infrastructure or facilities
  with a hotel, such as a heating, ventilation, and air-conditioning
  system, electrical system, or kitchen;
                     (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:
                     (A)  must be located on land owned by the
  designating municipality;
                     (B)  must 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; and
                     (C)  may consist of two or more towers, regardless
  of whether named differently, branded differently, reporting
  different addresses to the comptroller under this code, or
  reporting taxes separately to the comptroller under this code,
  that:
                           (i)  are constructed at the same time; 
                           (ii)  are connected to each other or to a
  qualified convention center facility; and
                           (iii)  each meet the requirements of
  Paragraphs (A) and (B).
               (4)  "Qualified project" means a project:
                     (A)  to:
                           (i)  acquire, construct, repair, remodel,
  expand, or equip a qualified convention center facility; or
                           (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 that:
                                 (a)  is directly related to and
  necessary for the qualified convention center facility or qualified
  hotel; and
                                 (b)  is located within the property
  lines of the qualified convention center facility or qualified
  hotel, or 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.
         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 90,000 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 at least one World Birding
  Center site is located;
               (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;
               (41)  a municipality with a population of 36,000 or
  more that is adjacent to at least two municipalities described by
  Subdivision (15); and
               (42)  a municipality with a population of 28,000 or
  more in which is located a historic railroad depot and heritage
  center.
         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 OR COMMITMENT 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 or commit 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 related to the project,
  including obligations under:
                     (A)  a contract authorized by Chapter 380, Local
  Government Code, for the project; and
                     (B)  an interlocal agreement directly related to
  the project.
         (b)  A municipality may pledge or commit 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 or
  committed benefits from the pledging or committing of that revenue.
         (c)  A municipality may pledge or commit revenue under this
  section for only one qualified project. After a municipality
  pledges or commits revenue under this section for a qualified
  project, the municipality may not ever again pledge or commit
  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 revenue under
  Section 351.156 or 351.157 unless the municipality has pledged or
  committed a portion of the revenue derived from the tax imposed
  under this chapter and collected by the qualified hotel for the
  payment of bonds, other obligations, or contractual obligations
  described by Subsection (a) and issued or incurred for the
  qualified 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 or the
  related qualified convention center facility, 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:
               (1)  that is located on land:
                     (A)  owned by a municipality; or
                     (B)  owned by any person if the establishment is
  located in a municipality described by Section 351.152(3);
               (2)  the nearest exterior wall of which is located not
  more than 1,000 feet from the nearest exterior wall of a qualified
  hotel or qualified convention center facility;
               (3)  that is constructed:
                     (A)  on or after the date the municipality
  commences a qualified project under this subchapter; or
                     (B)  at any time if the establishment is located
  in a municipality described by Section 351.152(3);
               (4)  that is not a sports stadium; and
               (5)  that 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(22);
               (7)  a municipality described by Section 351.152(25);
               (8)  a municipality described by Section 351.152(34);
               (9)  a municipality described by Section 351.152(35);
               (10)  a municipality described by Section 351.152(36);
  and
               (11)  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), (3), and
  (4):
               (1)  for a municipality described by Subsection (b)(1):
                     (A)  restaurants, bars, and retail
  establishments; and
                     (B)  swimming pools and swimming 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 and swimming 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;
               (10)  for a municipality described by Subsection
  (b)(10):
                     (A)  restaurants, bars, and retail
  establishments; and
                     (B)  swimming pools and swimming facilities owned
  or operated by the related qualified hotel; and
               (11)  for a municipality described by Subsection
  (b)(11):
                     (A)  restaurants, bars, and retail
  establishments; and
                     (B)  swimming pools and swimming 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 8.  Sections 351.102(b-1), (c-1), and (g), Tax Code,
  are repealed.
         SECTION 9.  The comptroller of public accounts may adopt
  rules as necessary to administer this Act.
         SECTION 10.  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 or resolution first authorizes the
  issuance of bonds or other obligations, executes an agreement under
  Chapter 380, Local Government Code, or executes an interlocal
  agreement directly related to the project that is secured by a
  pledge or commitment 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 or resolution first authorized the issuance of bonds
  or other obligations, executed an agreement under Chapter 380,
  Local Government Code, or executed an interlocal agreement directly
  related to the project that is secured by a pledge or commitment 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 or the agreement was executed, and that law is continued
  in effect for purposes of those hotel projects.
         SECTION 11.  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 or resolution first authorizes the issuance of bonds or
  other obligations, executes or amends an agreement under Chapter
  380, Local Government Code, or executes or amends an interlocal
  agreement directly related to the qualified project that is secured
  by a pledge or commitment of revenue under Subchapter C, Chapter
  351, Tax Code, for the project on or after the effective date of
  this Act.
         SECTION 12.  The changes in law made by this Act do not
  affect the validity of a bond, other obligation, or contractual
  obligation for which revenue was pledged or committed under Section
  351.102, Tax Code, before the effective date of this Act. Bonds,
  other obligations, or contractual obligations for which revenue was
  pledged or committed before the effective date of this Act are
  governed by the law in effect when the revenue was pledged or
  committed, and that law is continued in effect for purposes of the
  validity of those bonds, obligations, and contractual obligations.
         SECTION 13.  This Act takes effect September 1, 2019.
 
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