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A BILL TO BE ENTITLED
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AN ACT
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relating to the ability of certain municipalities and counties to |
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elect not to participate in certain event reimbursement programs |
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and to the allocation of a portion of the state hotel occupancy tax |
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revenue collected in those municipalities and counties. |
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BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: |
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SECTION 1. Chapter 475, Government Code, is amended by |
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adding Subchapter F to read as follows: |
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SUBCHAPTER F. OPTION FOR CERTAIN MUNICIPALITIES AND COUNTIES TO |
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ELECT NOT TO PARTICIPATE IN CERTAIN EVENT REIMBURSEMENT PROGRAMS |
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Sec. 475.0251. OPTION FOR CERTAIN MUNICIPALITIES AND |
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COUNTIES TO ELECT NOT TO PARTICIPATE IN CERTAIN EVENT REIMBURSEMENT |
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PROGRAMS. (a) A municipality or county with a population of |
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400,000 or less may elect not to participate in the major events |
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reimbursement program under Chapter 478 and the events trust fund |
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under Chapter 480. |
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(b) A municipality or county that makes the election |
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authorized under this section is eligible to receive an allocation |
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of state hotel occupancy tax revenue collected in the municipality |
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or county as provided by Section 156.2514, Tax Code. |
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(c) For a period of four state fiscal years beginning |
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September 1, 2027, and for each period of four state fiscal years |
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that occurs after that period ends, a municipality or county may |
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make the election authorized under this section by providing |
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written notice of the election to the office of the governor. |
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(d) A municipality or county that makes the election |
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authorized under this section may not participate as an endorsing |
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municipality or endorsing county under Chapter 478, and is |
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ineligible for receipt of a disbursement from a fund established |
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under Chapter 480, during the four-year period for which the |
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municipality or county submits the notice required by Subsection |
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(c). |
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(e) A municipality or county that made the election |
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authorized under this section and that wishes to resume |
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participation in the major events reimbursement program and the |
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events trust fund after the expiration of the most recent four-year |
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period for which the municipality or county submitted the notice |
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required by Subsection (c) may revoke the election by providing |
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notice of the revocation to the office of the governor before the |
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earlier of: |
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(1) September 1 of the first year of the four-year |
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period beginning after the end of the most recent four-year period |
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for which the municipality or county submitted the notice required |
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by Subsection (c); or |
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(2) the date that is four months before the date an |
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eligible event under Section 478.0051 or Section 480.0051 will be |
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held in the municipality or county. |
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(f) A municipality or county that revokes an election |
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authorized under this section in the manner required by Subsection |
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(e) is eligible to resume participation in the major events |
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reimbursement program and the events trust fund on September 1 of |
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the first year beginning after the end of the most recent four-year |
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period for which the municipality or county submitted the notice |
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required by Subsection (c). |
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SECTION 2. Section 478.0051, Government Code, is amended by |
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adding Subsection (d) to read as follows: |
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(d) Notwithstanding Subsection (b), an event listed in |
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Section 478.0001(3) may not receive funding through the program if |
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the event is held at a site in: |
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(1) a municipality that makes the election authorized |
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under Section 475.0251; or |
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(2) a county that makes the election authorized under |
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Section 475.0251, unless the event is held in a municipality that |
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does not make the election authorized under that section. |
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SECTION 3. Section 480.0051, Government Code, is amended to |
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read as follows: |
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Sec. 480.0051. EVENTS ELIGIBLE FOR FUNDING. (a) An event |
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is eligible for funding under this chapter only if: |
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(1) a site selection organization, after considering |
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through a highly competitive selection process one or more sites |
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not in this state, selects a site in this state for the event to be |
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held: |
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(A) one time; or |
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(B) if the event is scheduled under an event |
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contract or event support contract to be held each year for a period |
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of years, one time in each year; |
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(2) a site selection organization selects a site in |
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this state as: |
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(A) the sole site for the event; or |
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(B) the sole site for the event in a region |
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composed of this state and one or more adjoining states; and |
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(3) the event is held not more than one time in any |
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year in this state or an adjoining state. |
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(b) Notwithstanding Subsection (a), an event is ineligible |
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for funding under this chapter if the event is held at a site in: |
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(1) a municipality that makes the election authorized |
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under Section 475.0251; or |
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(2) a county that makes the election authorized under |
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Section 475.0251, unless the event is held in a municipality that |
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does not make the election authorized under that section. |
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SECTION 4. Section 480.00515, Government Code, is amended |
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to read as follows: |
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Sec. 480.00515. SINGLE YEAR CLASSIFICATION FOR ELIGIBILITY |
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PURPOSES FOR CERTAIN SPORTING EVENTS. For purposes of Sections |
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480.0051(a)(1) [480.0051(1)] and (3), a sporting event is |
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considered to be held one time in each year if the event is held only |
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one time in any annual season for that sport. |
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SECTION 5. Subchapter F, Chapter 156, Tax Code, is amended |
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by adding Section 156.2514 to read as follows: |
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Sec. 156.2514. ALLOCATION OF REVENUE TO CERTAIN |
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MUNICIPALITIES AND COUNTIES. (a) In this section: |
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(1) "Eligible county" means a county that makes the |
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election described by Section 475.0251, Government Code. |
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(2) "Eligible municipality" means a municipality that |
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makes the election described by Section 475.0251, Government Code. |
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(b) For the public purpose of economic development in rural |
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areas of this state, not later than the last day of the month |
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following a calendar quarter during which a municipality or county |
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is an eligible municipality or county, the municipality or county |
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is entitled to receive an allocation of a portion of the revenue |
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derived from the tax imposed under this chapter and collected from |
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hotels in the municipality or county, as applicable, in the manner |
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provided by this section. |
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(c) This subsection applies to an eligible municipality |
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located in a county that is not an eligible county. The amount of |
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the allocation an eligible municipality to which this subsection |
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applies is entitled to receive is equal to the amount of revenue |
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derived from the collection of the tax imposed under this chapter at |
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a rate of four percent and received from hotels located in the |
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eligible municipality. |
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(d) This subsection applies to an eligible municipality |
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located in a county that is an eligible county. The amount of the |
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allocation an eligible municipality to which this subsection |
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applies is entitled to receive is equal to 50 percent of the amount |
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of revenue derived from the collection of the tax imposed under this |
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chapter at a rate of four percent and received from hotels located |
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in the eligible municipality. |
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(e) This subsection applies to an eligible county in which |
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only municipalities that are not eligible municipalities are |
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located. The amount of the allocation an eligible county to which |
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this subsection applies is entitled to receive is equal to the |
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amount of revenue derived from the collection of the tax imposed |
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under this chapter at a rate of four percent and received from all |
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hotels located in the eligible county that are not located in a |
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municipality. |
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(f) This subsection applies to an eligible county in which |
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only municipalities that are eligible municipalities are located. |
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An eligible county to which this subsection applies is entitled to |
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receive an allocation equal to the sum of: |
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(1) 50 percent of the amount of revenue derived from |
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the collection of the tax imposed under this chapter at a rate of |
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four percent and received from hotels located in each eligible |
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municipality located in the eligible county; and |
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(2) the amount of revenue derived from the collection |
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of the tax imposed under this chapter at a rate of four percent and |
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received from hotels located in the eligible county that are not |
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located in an eligible municipality. |
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(g) This subsection applies to an eligible county in which |
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both eligible municipalities and municipalities that are not |
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eligible municipalities are located. An eligible county to which |
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this subsection applies is entitled to receive an allocation equal |
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to the sum of: |
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(1) 50 percent of the amount of revenue derived from |
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the collection of the tax imposed under this chapter at a rate of |
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four percent and received from hotels located in each eligible |
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municipality located in the eligible county; and |
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(2) the amount of revenue derived from the collection |
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of the tax imposed under this chapter at a rate of four percent and |
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received from hotels located in the eligible county that are not |
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located in a municipality. |
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(h) As soon as practicable after determining the amount to |
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which an eligible municipality or eligible county is entitled under |
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this section, the comptroller shall issue to the municipality or |
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county a warrant drawn on the general revenue fund for that amount. |
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(i) Money received under this section may be used: |
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(1) by an eligible municipality only in the manner |
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prescribed by Subchapter B, Chapter 351; and |
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(2) by an eligible county only in the manner |
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prescribed by Subchapter B, Chapter 352. |
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SECTION 6. This Act takes effect September 1, 2025. |