By: Landgraf H.B. No. 3197
 
 
 
A BILL TO BE ENTITLED
 
AN ACT
  relating to the use of municipal hotel occupancy tax revenue in
  certain municipalities.
         BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
         SECTION 1.  Subchapter B, Chapter 351, Tax Code, is amended
  by adding Section 351.10712 to read as follows:
         Sec. 351.10712.  ALLOCATION OF REVENUE FOR CONSTRUCTION OF
  SPORTS FACILITIES BY CERTAIN MUNICIPALITIES. (a)  This section
  applies only to a municipality with a population of at least
  95,000, in which a component university of The University of Texas
  System is located, and that is located in a county bisected by
  United States Highway 385 that has a population of not more than
  140,000.
         (b)  Notwithstanding any other provision of this chapter, a
  municipality to which this section applies may use revenue derived
  from the tax imposed under this chapter to construct sports
  facilities and a multipurpose convocation center capable of hosting
  intercollegiate athletic events on land owned by a state university
  if the municipality leases the land on which the sports facility
  will be located from the university for a term of at least 25 years.
         (c)  A municipality that uses revenue derived from the tax
  imposed under this chapter for a purpose described by Subsection
  (b):
               (1)  shall determine the amount of area hotel revenue
  attributable to the sports events and tournaments held at the
  sports facility for seven years after the date the municipality
  first uses hotel occupancy tax revenue for the purpose described by
  Subsection (b);
               (2)  shall at the end of the seven-year period
  described by Subdivision (1) reimburse from the municipality's
  general fund to the municipality's hotel occupancy tax revenue fund
  any hotel occupancy tax revenue expended on the sports facility
  during that period in excess of the amount determined under
  Subdivision (1); and
               (3)  may not during the seven-year period described by
  Subdivision (1) 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 first uses hotel occupancy tax revenue for the purpose
  described by Subsection (b).
         SECTION 2.  This Act takes effect immediately if it receives
  a vote of two-thirds of all the members elected to each house, as
  provided by Section 39, Article III, Texas Constitution. If this
  Act does not receive the vote necessary for immediate effect, this
  Act takes effect September 1, 2019.