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A BILL TO BE ENTITLED
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AN ACT
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relating to the authority of certain municipalities and local |
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government corporations to use certain tax revenue for certain |
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qualified projects and project-associated infrastructure. |
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BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: |
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SECTION 1. Section 351.1015(a), Tax Code, is amended by |
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adding Subdivision (4-a) to read as follows: |
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(4-a) "Project-associated infrastructure" means: |
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(A) a hotel, store, restaurant, concession, |
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automobile parking facility, theater, opera house, auditorium, |
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music hall, rehearsal hall, venue and related infrastructure, |
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entertainment facility, park, museum, plaza, recreational |
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facility, transportation facility, road, street, water or sewer |
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facility, or tourist development area that is: |
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(i) located in a project financing zone; |
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(ii) located on land owned, acquired, or |
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leased by a municipality or by a local government corporation to |
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which Subsection (j) applies; and |
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(iii) related to the promotion of tourism |
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and the convention and hotel industry; or |
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(B) the acquisition of public or private land and |
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related infrastructure that: |
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(i) is located in a project financing zone; |
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and |
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(ii) will be used in connection with a |
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purpose described by this subdivision. |
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SECTION 2. Section 351.1015, Tax Code, is amended by |
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amending Subsections (b), (c), (d), (g), and (i) and adding |
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Subsection (j) to read as follows: |
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(b) This section applies only to a qualified project and |
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project-associated infrastructure located in: |
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(1) a municipality with a population of at least |
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650,000 but less than 750,000 according to the most recent federal |
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decennial census; or |
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(2) a municipality with a population of at least two |
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million. |
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(c) In addition to the uses provided by Section 351.101, |
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revenue from the municipal hotel occupancy tax may be used to fund a |
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qualified project and project-associated infrastructure. |
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(d) A municipality may pledge the revenue derived from the |
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tax imposed under this chapter from a hotel located in the project |
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financing zone for the payment of bonds or other obligations issued |
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or incurred to acquire, lease, construct, improve, enlarge, and |
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equip the qualified project and project-associated infrastructure. |
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(g) The comptroller shall deposit incremental |
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hotel-associated revenue collected by or forwarded to the |
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comptroller in a separate suspense account to be held in trust for |
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the municipality that is entitled to receive the revenue. The |
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suspense account is outside the state treasury, and the comptroller |
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may make a payment authorized by this section from the account |
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without the necessity of an appropriation. The comptroller shall |
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begin making payments from the suspense account to the municipality |
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for which the money is held on the date the qualified project or |
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project-associated infrastructure in the project financing zone is |
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commenced. If the qualified project or project-associated |
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infrastructure is not commenced by the fifth anniversary of the |
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first deposit to the account, the comptroller shall transfer the |
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money in the account to the general revenue fund and cease making |
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deposits to the account. |
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(i) A municipality shall notify the comptroller if the |
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qualified project or project-associated infrastructure in the |
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project financing zone is abandoned. If the qualified project or |
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project-associated infrastructure is abandoned, the comptroller |
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shall transfer to the general revenue fund the amount of money in |
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the suspense account that exceeds the amount required for the |
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payment of bonds or other obligations described by Subsection (d). |
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(j) A local government corporation to which this subsection |
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applies may act as a municipality under this section and is |
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considered to be a municipality for purposes of this section. An |
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action a municipality is required to take by ordinance or order |
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under this section may be taken by order or resolution of the |
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corporation. This subsection applies only to a local government |
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corporation that: |
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(1) is authorized to collect a municipal hotel |
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occupancy tax; |
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(2) is located in a county with a population of 3.3 |
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million or more; and |
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(3) operates a convention center facility located not |
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more than three miles from the city hall of the municipality in |
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which the convention center facility is located. |
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SECTION 3. This Act takes effect September 1, 2023. |