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A BILL TO BE ENTITLED
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AN ACT
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relating to the use of hotel occupancy tax revenue by certain |
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municipalities and the authority of certain municipalities to |
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pledge that revenue, and to receive and pledge certain other |
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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 351.101, Tax Code, is amended by adding |
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Subsection (r) to read as follows: |
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(r) In addition to the purposes provided by Subsections (a) |
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and (e), a municipality with a population of more than 10,000 that |
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is wholly located in a county with a population of four million or |
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more and that has a city hall located less than three miles from a |
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space center operated by an agency of the federal government may use |
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revenue from the municipal hotel occupancy tax for the |
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construction, improvement, enlarging, equipping, renovating, |
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repairing, operation, and maintenance of a venue that is related to |
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the promotion of tourism, including a hotel, resort, or convention |
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center facility located on land owned by the municipality or a |
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nonprofit corporation acting on behalf of the municipality. |
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Subject to Section 351.1069, the municipality may also use revenue |
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from the municipal hotel occupancy tax for related infrastructure, |
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as defined by Section 334.001, Local Government Code. In this |
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subsection, "venue" means a venue described by Section |
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334.001(4)(A) or (B), Local Government Code. |
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SECTION 2. Sections 351.102(b), (e), and (g), Tax Code, are |
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amended to read as follows: |
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(b) An eligible central municipality, a municipality with a |
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population of 173,000 or more that is located within two or more |
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counties, a municipality with a population of 96,000 or more that is |
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located in a county that borders Lake Palestine or contains the |
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headwaters of the San Gabriel River, [or] a municipality with a |
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population of at least 99,900 but not more than 111,000 that is |
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located in a county with a population of at least 135,000, or a |
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municipality described by Section 351.101(r) may pledge the revenue |
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derived from the tax imposed under this chapter from a hotel project |
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that is owned by or located on land owned by the municipality or, in |
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an eligible central municipality, by a nonprofit corporation acting |
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on behalf of an eligible central municipality, and that is located |
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within 1,000 feet of a convention center facility owned by the |
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municipality for the payment of bonds or other obligations issued |
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or incurred to acquire, lease, construct, and equip the hotel and |
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any facilities ancillary to the hotel, including convention center |
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entertainment-related facilities, meeting spaces, restaurants, |
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shops, street and water and sewer infrastructure necessary for the |
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operation of the hotel or ancillary facilities, and parking |
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facilities within 1,000 feet of the hotel or convention center |
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facility. A municipality with a population of 173,000 or more that |
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is located within two or more counties may pledge for the payment of |
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bonds or other obligations described by this subsection the revenue |
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derived from the tax imposed under this chapter from a hotel project |
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not owned by or located on land owned by the municipality if the |
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project is located on land that is owned by the federal government |
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and the project is located within 1,000 feet of a convention center |
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facility owned by the municipality. For bonds or other obligations |
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issued under this subsection, an eligible central municipality or a |
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municipality described by this subsection or Subsection (e) may |
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only pledge revenue or other assets of the hotel project benefiting |
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from those bonds or other obligations. |
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(e) In addition to the municipalities described by |
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Subsection (b), that subsection also applies to: |
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(1) a municipality with a population of at least |
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110,000 but not more than 135,000 at least part of which is located |
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in a county with a population of not more than 135,000; |
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(2) a municipality with a population of at least 9,000 |
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but not more than 10,000 that is located in two counties, each of |
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which has a population of at least 662,000 and a southern border |
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with a county with a population of 2.3 million or more; |
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(3) a municipality with a population of at least |
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200,000 but not more than 300,000 that contains a component |
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institution of the Texas Tech University System; |
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(4) a municipality with a population of at least |
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95,000 that borders Lake Lewisville; |
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(5) a municipality that: |
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(A) contains a portion of Cedar Hill State Park; |
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(B) has a population of more than 45,000; |
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(C) is located in two counties, one of which has a |
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population of more than two million and one of which has a |
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population of more than 149,000; and |
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(D) has adopted a capital improvement plan for |
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the construction or expansion of a convention center facility; |
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(6) a municipality with a population of less than |
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6,000 that: |
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(A) is located in two counties each with a |
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population of 600,000 or more that are both adjacent to a county |
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with a population of two million or more; |
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(B) has full-time police and fire departments; |
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and |
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(C) has adopted a capital improvement plan for |
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the construction or expansion of a convention center facility; |
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(7) a municipality with a population of at least |
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56,000 that: |
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(A) borders Lake Ray Hubbard; and |
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(B) is located in two counties, one of which has a |
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population of less than 80,000; |
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(8) a municipality with a population of more than |
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83,000, that borders Clear Lake, and that is primarily located in a |
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county with a population of less than 300,000; |
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(9) a municipality with a population of less than |
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2,000 that: |
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(A) is located adjacent to a bay connected to the |
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Gulf of Mexico; |
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(B) is located in a county with a population of |
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290,000 or more that is adjacent to a county with a population of |
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four million or more; and |
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(C) has a boardwalk on the bay; |
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(10) a municipality with a population of 75,000 or |
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more that: |
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(A) is located wholly in one county with a |
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population of 575,000 or more that is adjacent to a county with a |
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population of four million or more; and |
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(B) has adopted a capital improvement plan for |
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the construction or expansion of a convention center facility; |
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(11) a municipality with a population of less than |
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75,000 that is located in three counties, at least one of which has |
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a population of at least four million; [and] |
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(12) an eligible coastal municipality with a |
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population of more than 3,000 but less than 5,000; and |
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(13) a municipality that is: |
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(A) primarily located in a county with a |
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population of four million or more; and |
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(B) connected by a bridge to a municipality |
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described by Subdivision (9). |
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(g) A municipality to which this section applies may not |
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receive or pledge revenue or funds under Subsection (b) or (c) for a |
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hotel project unless the municipality enters into an agreement with |
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a person for the development of the hotel project before September |
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1, 2021 [2019]. |
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SECTION 3. Subchapter B, Chapter 351, Tax Code, is amended |
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by adding Section 351.1069 to read as follows: |
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Sec. 351.1069. ALLOCATION OF REVENUE FOR CERTAIN |
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VENUE-RELATED INFRASTRUCTURE. (a) In this section: |
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(1) "Ancillary infrastructure" means related |
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infrastructure that: |
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(A) is located off the venue site; and |
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(B) is not for the exclusive use of the venue. |
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(2) "Related infrastructure" has the meaning assigned |
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by Section 334.001, Local Government Code. |
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(3) "Venue" means a venue described by Section |
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334.001(4)(A) or (B), Local Government Code, and any related |
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infrastructure other than ancillary infrastructure. |
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(4) "Venue-related hotel revenue" means the amount of |
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hotel revenue generated by hotel activity attributable to a venue. |
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(b) A municipality described by Section 351.101(r) that |
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uses revenue derived from the municipal hotel occupancy tax for |
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ancillary infrastructure: |
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(1) shall determine the amount of venue-related hotel |
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revenue generated during the five-year period following the date |
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the municipality issues a certificate of occupancy to the venue to |
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which the revenue is attributable; and |
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(2) may not spend municipal hotel occupancy tax |
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revenue for ancillary infrastructure in a total amount that exceeds |
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the amount determined under Subdivision (1). |
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(c) A municipality described by Section 351.101(r) shall |
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reimburse the municipality's hotel occupancy tax revenue fund from |
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another available source for the amount by which the expenditures |
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described by Subsection (b)(2) exceed the venue-related hotel |
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revenue determined under Subsection (b)(1). |
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SECTION 4. 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. |