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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 to use certain |
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tax revenue for certain qualified projects. |
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BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: |
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SECTION 1. Section 351.1015, Tax Code, is amended by adding |
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Subsection (a-1) and amending Subsection (g) to read as follows: |
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(a-1) Notwithstanding Subsections (a)(5) and (6), with |
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respect to a qualified project located in a municipality described |
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by Subsection (b)(7), the term "venue" does not include a facility |
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used primarily for the performing arts, including a theater, opera |
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house, music hall, or rehearsal hall. |
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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 in the |
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project financing zone is commenced. If the qualified project is |
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not commenced by the fifth anniversary of the first deposit to the |
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account or, for a suspense account held in trust for a municipality |
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described by Subsection (b)(7), by the third anniversary of the |
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first deposit in 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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SECTION 2. Section 351.1015(a)(4), Tax Code, is amended to |
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read as follows: |
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(4) "Project financing zone" means an area within a |
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municipality: |
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(A) that the municipality by ordinance or by |
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agreement under Chapter 380, Local Government Code, designates as a |
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project financing zone; |
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(B) the boundaries of which are: |
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(i) within a three-mile radius of the |
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center of a qualified project; or |
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(ii) if designated by a municipality |
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described by Section 351.001(7)(B) on or before December 31, 2024, |
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a continuous geographic area the total area of which is less than or |
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equal to the maximum area allowed under Subparagraph (i) that |
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contains the qualified project; |
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(C) the designation of which specifies: |
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(i) for a zone the boundaries of which are |
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prescribed by Paragraph (B)(i), the longitude and latitude of the |
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center of the qualified project; or |
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(ii) for a zone the boundaries of which are |
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prescribed by Paragraph (B)(ii), the exact boundaries of the zone; |
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and |
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(D) the designation of which expires not later |
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than the 30th anniversary of the date of designation. |
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SECTION 3. Section 351.1015(b), Tax Code, as amended by |
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Chapters 644 (H.B. 4559), 779 (H.B. 5012), 927 (S.B. 2220), and 1110 |
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(S.B. 1057), Acts of the 88th Legislature, Regular Session, 2023, |
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is reenacted and amended to read as follows: |
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(b) This section applies only to a qualified project located |
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in: |
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(1) a municipality with a population of at least |
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700,000 but less than 950,000 according to the most recent federal |
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decennial census; [or] |
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(2) a municipality that contains more than 70 percent |
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of the population of a county with a population of 1.5 million or |
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more; |
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(3) [(2)] a municipality described by Section |
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351.001(7)(B); |
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(4) [or |
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[(3)] a municipality described by Section |
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351.152(61); |
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(5) [(2)] a municipality with a population of at least |
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two million; |
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(6) a municipality described by Section 351.152(14) |
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with a population of more than 250,000; or |
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(7) a municipality described by Section 351.152(15) |
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that has a population of 200,000 or more. |
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SECTION 4. To the extent of any conflict, this Act prevails |
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over another Act of the 89th Legislature, Regular Session, 2025, |
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relating to nonsubstantive additions to and corrections in enacted |
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codes. |
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SECTION 5. This Act takes effect September 1, 2025. |