Bill Text: TX HB4347 | 2019-2020 | 86th Legislature | Enrolled

---

Bill Title: Relating to the authority of certain municipalities to use certain tax revenue for hotel and convention center projects and other qualified projects.

Sponsorship: Bipartisan Bill

Status: (Passed) 2019-06-14 - Effective on 9/1/19 [HB4347 Detail]

Download: Texas-2019-HB4347-Enrolled.html

---

H.B. No. 4347

AN ACT
relating to the authority of certain municipalities to use certain
tax revenue for hotel and convention center projects and other
qualified projects.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
SECTION 1. Section 351.001, Tax Code, is amended by adding
Subdivision (12) to read as follows:
(12) "Retail establishment" means an establishment
engaged in activities described by North American Industry
Classification System subsector code 442, 443, 445, 446, 448, 451,
452, or 453.
SECTION 2. Sections 351.102(b), (c), and (e), Tax Code, are
amended to read as follows:
(b) A municipality described by Subsection (e) [An eligible
central municipality, a municipality with a population of 173,000
or more that is located within two or more counties, a municipality
with a population of 96,000 or more that is located in a county that
borders Lake Palestine or contains the headwaters of the San
Gabriel River, or a municipality with a population of at least
99,900 but not more than 111,000 that is located in a county with a
population of at least 135,000] may pledge the revenue derived from
the tax imposed under this chapter from a hotel project that is
owned by or located on land owned by the municipality or, in an
eligible central municipality, by a nonprofit corporation acting on
behalf of an eligible central municipality, and that is located
within 1,000 feet of a qualified convention center facility, as
defined by Section 351.151, owned by the municipality for the
payment of bonds or other obligations issued or incurred to
acquire, lease, construct, and equip the hotel and any facilities
ancillary to the hotel, including convention center
entertainment-related facilities, [meeting spaces,] restaurants,
retail establishments [shops], street and water and sewer
infrastructure necessary for the operation of the hotel or
ancillary facilities, and parking facilities within 1,000 feet of
the hotel or convention center facility. [A municipality with a
population of 173,000 or more that is located within two or more
counties may pledge for the payment of bonds or other obligations
described by this subsection the revenue derived from the tax
imposed under this chapter from a hotel project not owned by or
located on land owned by the municipality if the project is located
on land that is owned by the federal government and the project is
located within 1,000 feet of a convention center facility owned by
the municipality.] For bonds or other obligations issued under
this subsection, [an eligible central municipality or] a
municipality described by [this subsection or] Subsection (e) may
only pledge revenue or other assets of the hotel project benefiting
from those bonds or other obligations.
(c) A [Except as provided by this subsection, a]
municipality described by [to which] Subsection [(b) or] (e)
[applies] is entitled to receive all funds from a project described
by Subsection (b) that an owner of a project may receive under
Section 151.429(h) of this code, or Section 2303.5055, Government
Code, and may pledge the funds for the payment of obligations issued
under this section, but only if[. A municipality described by
Subsection (e) is not entitled to receive funds from a project under
this subsection unless] the municipality has pledged the revenue
derived from the tax imposed under this chapter from the project for
the payment of bonds or other obligations issued or incurred for the
project.
(e) Subsection (b) applies only [In addition to the
municipalities described by Subsection (b), that subsection also
applies] to:
(1) a municipality with a population of two million or
more;
(2) a municipality with a population of 700,000 or
more but less than 1.3 million;
(3) a municipality with a population of 350,000 or
more but less than 450,000 in which two professional sports
stadiums are located, each of which:
(A) has a seating capacity of at least 40,000
people; and
(B) was approved by the voters of the
municipality as a sports and community venue project under Chapter
334, Local Government Code; and
(4) [at least 110,000 but not more than 135,000 at
least part of which is located in a county with a population of not
more than 135,000;
[(2) a municipality with a population of at least
9,000 but not more than 10,000 that is located in two counties, each
of which has a population of at least 662,000 and a southern border
with a county with a population of 2.3 million or more;
[(3) a municipality with a population of at least
200,000 but not more than 300,000 that contains a component
institution of the Texas Tech University System;
[(4) a municipality with a population of at least
95,000 that borders Lake Lewisville;
[(5) a municipality that:
[(A) contains a portion of Cedar Hill State Park;
[(B) has a population of more than 45,000;
[(C) is located in two counties, one of which has
a population of more than two million and one of which has a
population of more than 149,000; and
[(D) has adopted a capital improvement plan for
the construction or expansion of a convention center facility;
[(6) a municipality with a population of less than
6,000 that:
[(A) is located in two counties each with a
population of 600,000 or more that are both adjacent to a county
with a population of two million or more;
[(B) has full-time police and fire departments;
and
[(C) has adopted a capital improvement plan for
the construction or expansion of a convention center facility;
[(7) a municipality with a population of at least
56,000 that:
[(A) borders Lake Ray Hubbard; and
[(B) is located in two counties, one of which has
a population of less than 80,000;
[(8) a municipality with a population of more than
83,000, that borders Clear Lake, and that is primarily located in a
county with a population of less than 300,000;
[(9)] a municipality with a population of less than
2,000 that:
(A) is located adjacent to a bay connected to the
Gulf of Mexico;
(B) is located in a county with a population of
290,000 or more that is adjacent to a county with a population of
four million or more; and
(C) has a boardwalk on the bay[;
[(10) a municipality with a population of 75,000 or
more that:
[(A) is located wholly in one county with a
population of 575,000 or more that is adjacent to a county with a
population of four million or more; and
[(B) has adopted a capital improvement plan for
the construction or expansion of a convention center facility;
[(11) a municipality with a population of less than
75,000 that is located in three counties, at least one of which has
a population of at least four million; and
[(12) an eligible coastal municipality with a
population of more than 3,000 but less than 5,000].
SECTION 3. Section 351.102(d), Tax Code, is redesignated as
Section 351.1063, Tax Code, and amended to read as follows:
Sec. 351.1063. ALLOCATION OF REVENUE FOR ADVERTISING AND
PROMOTION: CERTAIN MUNICIPALITIES WITH CERTAIN PROJECTS. (a) This
section applies only to a municipality described by Section
351.102(e) or 351.152, other than an eligible central municipality
described by Section 351.001(7)(D).
(b) A [(d) Except as provided by this subsection, an
eligible central] municipality [or another municipality described
by Subsection (b) or (e)] that uses revenue derived from the tax
imposed under this chapter or funds received under Section
351.102(c), 351.156, or 351.157 [Subsection (c)] for a hotel
project under Section 351.102(b) or a qualified project under
Section 351.155 [described by Subsection (b)] may not 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 begins using the revenue
or funds for the hotel project. [This subsection does not apply to
an eligible central municipality described by Section
351.001(7)(D).]
SECTION 4. Section 351.102(f), Tax Code, is redesignated as
Section 351.1064, Tax Code, and amended to read as follows:
Sec. 351.1064. ALLOCATION OF REVENUE FOR CERTAIN SPORTING
EVENT EXPENSES: CERTAIN MUNICIPALITIES WITH QUALIFIED PROJECT. (a)
This section applies only to a municipality with a population of
200,000 or more but less than 300,000 that contains a component
institution of the Texas Tech University System.
(b) [(f)] A municipality [described by Subsection (e)(3)]
that uses revenue derived from the tax imposed under this chapter or
funds received under Section 351.156 [Subsection (c)] for repayment
of bonds, [or] other obligations, or contractual obligations issued
or incurred for a qualified [hotel] project under Section 351.155
[described by Subsection (b)] may not, in a fiscal year that begins
after [construction of] the qualified [hotel] project is complete
and during any part of which the bonds, [or] other obligations, or
contractual obligations are outstanding, reduce the amount of
revenue derived from the tax imposed under this chapter and
allocated for a purpose described by Section 351.101(a)(6) to an
amount that is less than the sum of:
(1) the amount of the revenue derived from the tax
imposed under this chapter and allocated by the municipality for a
purpose described by Section 351.101(a)(6) during the fiscal year
beginning October 1, 2016; and
(2) three percent of the amount of revenue derived
from the tax imposed under this chapter during the fiscal year for
which the amount required by this subsection is being determined.
SECTION 5. Subchapter B, Chapter 351, Tax Code, is amended
by adding Section 351.1021 to read as follows:
Sec. 351.1021. PLEDGE OR COMMITMENT OF CERTAIN TAX REVENUE
FOR CERTAIN PROJECTS. (a) In this section:
(1) "Eligible municipality" means a municipality
described by Section 351.102(e)(4).
(2) "Multipurpose convention center facility" means a
facility that will be constructed and, after that construction:
(A) is used to host conventions, meetings, live
performances, and sporting events;
(B) is:
(i) leased by an eligible municipality; or
(ii) wholly owned by an eligible
municipality, and none of which is or may be owned through an
undivided common interest;
(C) is not located in a hotel or other structure;
(D) has at least 10,000 square feet of continuous
and usable meeting space; and
(E) is configurable to simultaneously
accommodate multiple events described by Paragraph (A) of different
sizes and types.
(3) "Multipurpose convention center facility project"
means a project that consists of a hotel owned by an eligible
municipality or another person and a multipurpose convention center
facility, the nearest exterior wall of which is located not more
than 2,500 feet from the nearest exterior wall of the hotel. A
multipurpose convention center facility project may include:
(A) each new or existing business located in the
municipality, regardless of who owns the business or the property
on which the business is located, the nearest exterior wall of which
is located not more than 2,500 feet from the nearest exterior wall
of the multipurpose convention center facility or the hotel that is
part of the project;
(B) a parking shuttle or transportation system;
and
(C) any parking area or structure located in the
municipality, regardless of who owns the area or structure or the
property on which the area or structure is located, the nearest
property line of which is located not more than two miles from the
nearest exterior wall of the multipurpose convention center
facility.
(b) An eligible municipality or local government
corporation acting on behalf of an eligible municipality is
entitled to receive all funds from a multipurpose convention center
facility project that the owner of a project could receive under
Section 151.429(h) of this code or Section 2303.5055, Government
Code, if a project for purposes of those provisions included a
multipurpose convention center facility project. The municipality
or local government corporation is entitled to receive the funds
for a period of 10 years beginning on the date the multipurpose
convention center facility is issued a certificate of occupancy.
(c) An eligible municipality or local government
corporation acting on behalf of an eligible municipality may pledge
or commit the funds to which the municipality or local government
corporation is entitled as provided by Subsection (b) for the
payment of bonds, other obligations, or contractual obligations
issued or incurred for the multipurpose convention center facility
project.
(d) The comptroller shall deposit the funds to which an
eligible municipality or local government corporation is entitled
as provided by Subsection (b) in a separate suspense account of the
municipality outside the state treasury.
(e) The comptroller may make a rebate, refund, or payment
authorized under this section without the necessity of an
appropriation. The comptroller shall rebate, refund, or pay to the
eligible municipality the funds to which the municipality or local
government corporation is entitled as provided by Subsection (b) at
least quarterly.
SECTION 6. Subchapter B, Chapter 351, Tax Code, is amended
by adding Section 351.1022 to read as follows:
Sec. 351.1022. PLEDGE OR COMMITMENT OF CERTAIN TAX REVENUE
BY CERTAIN MUNICIPALITIES WITH SPORTS STADIUMS. (a) This section
applies only to a municipality described by Section 351.102(e)(3).
(b) A municipality is entitled to receive all funds from a
hotel project described by Section 351.102(b) that an owner of a
project may receive under Section 151.429(h) of this code or
Section 2303.5055, Government Code, and all tax revenue collected
under Chapter 183 by or from all permittees at the hotel project,
excluding revenue disbursed by the comptroller under Section
183.051(b). Notwithstanding any other law, the municipality is
entitled to receive the funds for a period of 30 years beginning on
the date the hotel project is open for initial occupancy.
(c) The municipality may pledge the funds to which the
municipality is entitled as provided by Subsection (b) for the
payment of bonds, other obligations, or contractual obligations
issued or incurred to acquire, lease, construct, improve, enlarge,
and equip the hotel project.
(d) The comptroller shall deposit the funds to which the
municipality is entitled as provided by Subsection (b) in a
separate suspense account of the municipality outside the state
treasury.
(e) The comptroller may make a rebate, refund, or payment
authorized under this section without the necessity of an
appropriation. The comptroller shall rebate, refund, or pay to the
municipality the funds to which the municipality is entitled as
provided by Subsection (b) at least monthly.
SECTION 7. 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 AND
MAINTENANCE OF SPORTS-RELATED FACILITIES BY CERTAIN
MUNICIPALITIES. (a) This section applies only to a municipality
with a population of at least 95,000 that is located in a county
that is bisected by United States Highway 385 and 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 and maintain:
(1) a sports facility located in the municipality; or
(2) 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 center
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 or multipurpose convocation center 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 or
multipurpose convocation center 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 8. Chapter 351, Tax Code, is amended by adding
Subchapter C to read as follows:
SUBCHAPTER C. MUNICIPAL HOTEL AND CONVENTION CENTER PROJECTS
Sec. 351.151. DEFINITIONS. In this subchapter:
(1) "Infrastructure" includes:
(A) a road, street, highway, bridge, overpass,
underpass, and interchange;
(B) a fresh, reuse, or alternative water supply
system, sanitary sewer system, and storm drainage system;
(C) an electric system, telecommunications
system, and gas system;
(D) signage, landscaping, and hardscaping; and
(E) a public amenity or public area, such as a
plaza, park, or trail.
(2) "Qualified convention center facility" means a
facility that has been or will be constructed and that:
(A) is primarily used to host conventions or
meetings;
(B) is wholly owned by a municipality to which
this subchapter applies, and none of which is or may be owned
through an undivided common interest;
(C) is connected to a qualified hotel or has an
exterior wall that is located not more than 1,000 feet from the
nearest exterior wall of a qualified hotel;
(D) is not located in a hotel, sports stadium, or
other structure but may share common infrastructure or facilities
with a hotel, such as a heating, ventilation, and air-conditioning
system, electrical system, or kitchen;
(E) has at least 10,000 square feet of continuous
meeting space; and
(F) is configurable to simultaneously
accommodate multiple events described by Paragraph (A) of different
sizes and types.
(3) "Qualified hotel" means a hotel that is designated
by a municipality to which this subchapter applies as the hotel that
is part of a qualified project. A qualified hotel:
(A) must be located on land owned by the
designating municipality;
(B) must be connected to a qualified convention
center facility or have an exterior wall that is located not more
than 1,000 feet from the nearest exterior wall of the qualified
convention center facility; and
(C) may consist of two or more towers, regardless
of whether named differently, branded differently, reporting
different addresses to the comptroller under this code, or
reporting taxes separately to the comptroller under this code,
that:
(i) are constructed at the same time;
(ii) are connected to each other or to a
qualified convention center facility; and
(iii) each meet the requirements of
Paragraphs (A) and (B).
(4) "Qualified project" means a project:
(A) to:
(i) acquire, construct, repair, remodel,
expand, or equip a qualified convention center facility; or
(ii) acquire, lease, construct, repair,
remodel, expand, or equip a qualified hotel; and
(B) that may include:
(i) acquiring, leasing, constructing,
repairing, remodeling, expanding, or equipping:
(a) a restaurant, bar, retail
establishment, or spa located in a qualified convention center
facility or qualified hotel or connected to a qualified convention
center facility or qualified hotel, including by a covered walkway;
or
(b) a parking area or structure, the
nearest property line of which is located not more than 1,000 feet
from the nearest property line of a qualified convention center
facility or qualified hotel;
(ii) acquiring, constructing, repairing,
remodeling, or expanding infrastructure that:
(a) is directly related to and
necessary for the qualified convention center facility or qualified
hotel; and
(b) is located within the property
lines of the qualified convention center facility or qualified
hotel, or not more than 1,000 feet from the nearest property line of
the facility or hotel; or
(iii) acquiring a property right, including
a fee simple interest, easement, or other interest in connection
with a purpose described by this subdivision.
Sec. 351.152. APPLICABILITY. This subchapter applies only
to:
(1) a municipality described by Section
351.001(7)(B);
(2) a municipality described by Section
351.001(7)(D);
(3) a municipality described by Section
351.001(7)(E);
(4) a municipality described by Section
351.102(e)(3);
(5) a municipality that contains more than 75 percent
of the population of a county with a population of 1.5 million or
more;
(6) a municipality with a population of 150,000 or
more but less than 200,000 that is partially located in at least one
county with a population of 125,000 or more;
(7) a municipality with a population of 150,000 or
more but less than one million that is located in one county with a
population of 2.3 million or more;
(8) a municipality with a population of 180,000 or
more that:
(A) is located in two counties, each with a
population of 100,000 or more; and
(B) contains an American Quarter Horse Hall of
Fame and Museum;
(9) a municipality with a population of 96,000 or more
that is located in a county that borders Lake Palestine;
(10) a municipality with a population of 96,000 or
more that is located in a county that contains the headwaters of the
San Gabriel River;
(11) a municipality with a population of 99,900 or
more but less than 111,000 that is located in a county with a
population of 135,000 or more;
(12) a municipality with a population of 110,000 or
more but less than 135,000 at least part of which is located in a
county with a population of less than 135,000;
(13) a municipality with a population of 9,000 or more
but less than 10,000 that is located in two counties, each of which
has a population of 662,000 or more and a southern border with a
county with a population of 2.3 million or more;
(14) a municipality with a population of 200,000 or
more but less than 300,000 that contains a component institution of
the Texas Tech University System;
(15) a municipality with a population of 95,000 or
more that:
(A) is located in more than one county; and
(B) borders Lake Lewisville;
(16) a municipality with a population of 45,000 or
more that:
(A) contains a portion of Cedar Hill State Park;
(B) is located in two counties, one of which has a
population of two million or more and one of which has a population
of 149,000 or more; and
(C) has adopted a capital improvement plan for
the construction or expansion of a convention center facility;
(17) a municipality with a population of less than
6,000 that:
(A) is almost wholly located in a county with a
population of 600,000 or more that is adjacent to a county with a
population of two million or more;
(B) is partially located in a county with a
population of 1.8 million or more that is adjacent to a county with
a population of two million or more;
(C) has a visitor center and museum located in a
19th-century rock building in the municipality's downtown; and
(D) has a waterpark open to the public;
(18) a municipality with a population of 56,000 or
more that:
(A) borders Lake Ray Hubbard; and
(B) is located in two counties, one of which has a
population of less than 80,000;
(19) a municipality with a population of 83,000 or
more that:
(A) borders Clear Lake; and
(B) is primarily located in a county with a
population of less than 300,000;
(20) a municipality with a population of less than
2,000 that:
(A) is located adjacent to a bay connected to the
Gulf of Mexico;
(B) is located in a county with a population of
290,000 or more that is adjacent to a county with a population of
four million or more; and
(C) has a boardwalk on the bay;
(21) a municipality with a population of 75,000 or
more that:
(A) is located wholly in one county with a
population of 575,000 or more that is adjacent to a county with a
population of four million or more; and
(B) has adopted a capital improvement plan for
the construction or expansion of a convention center facility;
(22) a municipality with a population of less than
75,000 that is located in three counties, at least one of which has
a population of four million or more;
(23) an eligible coastal municipality with a
population of 3,000 or more but less than 5,000;
(24) a municipality with a population of 90,000 or
more but less than 150,000 that:
(A) is located in three counties; and
(B) contains a branch campus of a component
institution of the University of Houston System;
(25) a municipality that is:
(A) primarily located in a county with a
population of four million or more; and
(B) connected by a bridge to a municipality
described by Subdivision (20);
(26) a municipality with a population of 20,000 or
more but less than 25,000 that:
(A) contains a portion of Mustang Bayou; and
(B) is wholly located in a county with a
population of less than 500,000;
(27) a municipality with a population of 70,000 or
more but less than 90,000 that is located in two counties, one of
which has a population of four million or more and the other of
which has a population of less than 50,000;
(28) a municipality with a population of 10,000 or
more that:
(A) is wholly located in a county with a
population of four million or more; and
(B) has a city hall located less than three miles
from a space center operated by an agency of the federal government;
(29) a municipality that is the county seat of a
county:
(A) through which the Pedernales River flows; and
(B) in which the birthplace of a president of the
United States is located;
(30) a municipality that contains a portion of U.S.
Highway 79 and State Highway 130;
(31) a municipality with a population of 48,000 or
more but less than 95,000 that is located in two counties, one of
which has a population of 900,000 or more but less than 1.7 million;
(32) a municipality with a population of less than
25,000 that contains a museum of Western American art;
(33) a municipality with a population of 50,000 or
more that is the county seat of a county that contains a portion of
the Sam Houston National Forest;
(34) a municipality with a population of less than
25,000 that:
(A) contains a cultural heritage museum; and
(B) is located in a county that borders the
United Mexican States and the Gulf of Mexico;
(35) a municipality that is the county seat of a county
that:
(A) has a population of 115,000 or more;
(B) is adjacent to a county with a population of
1.8 million or more; and
(C) hosts an annual peach festival;
(36) a municipality that is the county seat of a county
that:
(A) has a population of 585,000 or more; and
(B) is adjacent to a county with a population of
four million or more;
(37) a municipality with a population of less than
10,000 that:
(A) contains a component university of The Texas
A&M University System; and
(B) is located in a county adjacent to a county
that borders Oklahoma;
(38) a municipality with a population of less than
6,100 that:
(A) is located in two counties, each of which has
a population of 600,000 or more but less than two million; and
(B) hosts an annual Cajun Festival;
(39) a municipality with a population of 13,000 or
more that:
(A) is located on an international border; and
(B) is located in a county:
(i) with a population of less than 400,000;
and
(ii) in which at least one World Birding
Center site is located;
(40) a municipality with a population of 4,000 or more
that:
(A) is located on an international border; and
(B) is located not more than five miles from a
state historic site that serves as a visitor center for a state park
that contains 300,000 or more acres of land;
(41) a municipality with a population of 36,000 or
more that is adjacent to at least two municipalities described by
Subdivision (15); and
(42) a municipality with a population of 28,000 or
more in which is located a historic railroad depot and heritage
center.
Sec. 351.153. EXCEPTION TO OWNERSHIP REQUIREMENT. (a)
This section applies only to a municipality described by Section
351.152(6) or (29).
(b) Section 351.151(2)(B) does not apply to a facility that
otherwise meets the requirements of a qualified convention center
facility under Section 351.151.
(c) Section 351.151(3)(A) does not apply to a hotel that
otherwise meets the requirements of a qualified hotel under Section
351.151.
Sec. 351.154. NONPROFIT CORPORATION AS MUNICIPAL AGENT. A
municipality may authorize a nonprofit corporation to act on behalf
of the municipality for any purpose under this subchapter.
Sec. 351.155. PLEDGE OR COMMITMENT OF CERTAIN TAX REVENUE
FOR OBLIGATIONS FOR QUALIFIED PROJECT. (a) In addition to the
authority of a municipality to issue debt under Chapter 1504,
Government Code, a municipality may pledge or commit the revenue
derived from the tax imposed under this chapter from a qualified
hotel and the revenue to which the municipality is entitled under
Section 351.156 and, if applicable, Section 351.157 for the payment
of:
(1) bonds or other obligations issued for a qualified
project; and
(2) contractual obligations related to the project,
including obligations under:
(A) a contract authorized by Chapter 380, Local
Government Code, for the project; and
(B) an interlocal agreement directly related to
the project.
(b) A municipality may pledge or commit revenue for the
payment of bonds, other obligations, or contractual obligations
under Subsection (a) only if the qualified hotel that is a component
of the qualified project for which that revenue is pledged or
committed benefits from the pledging or committing of that revenue.
(c) A municipality may pledge or commit revenue under this
section for only one qualified project. After a municipality
pledges or commits revenue under this section for a qualified
project, the municipality may not ever again pledge or commit
revenue for a qualified project.
(d) Subsection (c) does not apply to a municipality with a
population of 175,000 or more.
(e) A municipality is not entitled to receive revenue under
Section 351.156 or 351.157 unless the municipality has pledged or
committed a portion of the revenue derived from the tax imposed
under this chapter and collected by the qualified hotel for the
payment of bonds, other obligations, or contractual obligations
described by Subsection (a) and issued or incurred for the
qualified project.
Sec. 351.156. ENTITLEMENT TO CERTAIN TAX REVENUE. Subject
to Sections 351.155(e) and 351.158, a municipality is entitled to
receive the revenue derived from the following taxes generated,
paid, and collected by a qualified hotel, and each restaurant, bar,
and retail establishment located in or connected to the hotel or the
related qualified convention center facility, that is located in
the municipality:
(1) the sales and use tax imposed under Chapter 151;
(2) the hotel occupancy tax imposed under Chapter 156;
and
(3) if a political subdivision that is entitled to
receive the revenue from the tax agrees in writing to the
municipality receiving that revenue:
(A) the sales and use tax imposed by the
political subdivision under Chapter 322 or 323;
(B) the hotel occupancy tax imposed by the
political subdivision under Chapter 352; and
(C) the mixed beverage tax issued under Section
183.051.
Sec. 351.157. ADDITIONAL ENTITLEMENT FOR CERTAIN
MUNICIPALITIES. (a) In this section, "qualified establishment"
means an establishment:
(1) that is located on land:
(A) owned by a municipality; or
(B) owned by any person if the establishment is
located in a municipality described by Section 351.152(3);
(2) the nearest exterior wall of which is located not
more than 1,000 feet from the nearest exterior wall of a qualified
hotel or qualified convention center facility;
(3) that is constructed:
(A) on or after the date the municipality
commences a qualified project under this subchapter; or
(B) at any time if the establishment is located
in a municipality described by Section 351.152(3);
(4) that is not a sports stadium; and
(5) that is the type of establishment described by
Subsection (c) from which the municipality is entitled to receive
revenue under Subsection (d).
(b) This section applies only to:
(1) a municipality described by Section 351.152(3);
(2) a municipality described by Section 351.152(6);
(3) a municipality described by Section 351.152(7);
(4) a municipality described by Section 351.152(10);
(5) a municipality described by Section 351.152(16);
(6) a municipality described by Section 351.152(22);
(7) a municipality described by Section 351.152(25);
(8) a municipality described by Section 351.152(34);
(9) a municipality described by Section 351.152(35);
(10) a municipality described by Section 351.152(36);
and
(11) a municipality described by Section 351.152(38).
(c) A municipality is entitled to receive revenue under
Subsection (d) derived from the following types of establishments
that meet the requirements of Subsections (a)(1), (2), (3), and
(4):
(1) for a municipality described by Subsection (b)(1):
(A) restaurants, bars, and retail
establishments; and
(B) swimming pools and swimming facilities owned
or operated by the related qualified hotel;
(2) for a municipality described by Subsection (b)(2),
restaurants, bars, and retail establishments;
(3) for a municipality described by Subsection (b)(3),
restaurants, bars, and retail establishments;
(4) for a municipality described by Subsection (b)(4):
(A) restaurants, bars, and retail
establishments; and
(B) swimming pools and swimming facilities owned
or operated by the related qualified hotel;
(5) for a municipality described by Subsection (b)(5),
restaurants, bars, and retail establishments;
(6) for a municipality described by Subsection (b)(6),
restaurants, bars, and retail establishments;
(7) for a municipality described by Subsection (b)(7),
restaurants, bars, and retail establishments;
(8) for a municipality described by Subsection (b)(8),
restaurants, bars, and retail establishments;
(9) for a municipality described by Subsection (b)(9),
restaurants, bars, and retail establishments;
(10) for a municipality described by Subsection
(b)(10):
(A) restaurants, bars, and retail
establishments; and
(B) swimming pools and swimming facilities owned
or operated by the related qualified hotel; and
(11) for a municipality described by Subsection
(b)(11):
(A) restaurants, bars, and retail
establishments; and
(B) swimming pools and swimming facilities owned
or operated by the related qualified hotel.
(d) Subject to Subsection (e), in addition to the revenue to
which the municipality is entitled under Section 351.156, a
municipality to which this section applies is entitled to receive
the revenue derived from the following taxes generated, paid, and
collected from a qualified establishment located in the
municipality:
(1) the sales and use tax imposed under Chapter 151;
and
(2) the mixed beverage tax issued under Section
183.051, if the political subdivision that is entitled to receive
the revenue from the tax agrees in writing to the municipality
receiving that revenue.
(e) A municipality to which this section applies is not
entitled to receive revenue under Subsection (d) unless the
municipality commences a qualified project under this subchapter
before September 1, 2023.
Sec. 351.158. PERIOD OF ENTITLEMENT. A municipality is
entitled to receive revenue as provided by Sections 351.156 and
351.157 until the 10th anniversary of the date the qualified hotel
to which the entitlement relates is open for initial occupancy.
Sec. 351.159. DEPOSIT OF REVENUE. Notwithstanding any
other law, the comptroller shall deposit the revenue from the taxes
described by Sections 351.156 and 351.157 that were collected by or
forwarded to the comptroller in trust in a separate suspense
account of the qualified project. The suspense account is outside
the state treasury and the comptroller may make a payment
authorized by this subchapter without the necessity of an
appropriation.
Sec. 351.160. QUARTERLY PAYMENTS. The comptroller shall
pay to each municipality the revenue to which the municipality is
entitled under this subchapter at least quarterly.
SECTION 9. Sections 351.102(b-1), (c-1), and (g), Tax Code,
are repealed.
SECTION 10. The comptroller of public accounts may adopt
rules as necessary to administer this Act.
SECTION 11. The changes in law made to Subchapter B, Chapter
351, Tax Code, by this Act apply only to a hotel project described
by Section 351.102(b), Tax Code, as amended by this Act, for which a
municipality by ordinance or resolution first authorizes the
issuance of bonds or other obligations, executes an agreement under
Chapter 380, Local Government Code, or executes an interlocal
agreement directly related to the project that is secured by a
pledge or commitment of revenue under that subsection for the
project on or after the effective date of this Act. A hotel project
described by Section 351.102(b), Tax Code, for which a municipality
by ordinance or resolution first authorized the issuance of bonds
or other obligations, executed an agreement under Chapter 380,
Local Government Code, or executed an interlocal agreement directly
related to the project that is secured by a pledge or commitment of
revenue under that subsection for the project before the effective
date of this Act is governed by the law in effect when the ordinance
was adopted or the agreement was executed, and that law is continued
in effect for purposes of those hotel projects.
SECTION 12. Subchapter C, Chapter 351, Tax Code, as added by
this Act, applies only to a qualified project as defined by Section
351.151, Tax Code, as added by this Act, for which a municipality by
ordinance or resolution first authorizes the issuance of bonds or
other obligations, executes or amends an agreement under Chapter
380, Local Government Code, or executes or amends an interlocal
agreement directly related to the qualified project that is secured
by a pledge or commitment of revenue under Subchapter C, Chapter
351, Tax Code, for the project on or after the effective date of
this Act.
SECTION 13. The changes in law made by this Act do not
affect the validity of a bond, other obligation, or contractual
obligation for which revenue was pledged or committed under Section
351.102, Tax Code, before the effective date of this Act. Bonds,
other obligations, or contractual obligations for which revenue was
pledged or committed before the effective date of this Act are
governed by the law in effect when the revenue was pledged or
committed, and that law is continued in effect for purposes of the
validity of those bonds, obligations, and contractual obligations.
SECTION 14. This Act takes effect September 1, 2019.
______________________________ ______________________________
President of the Senate Speaker of the House
I certify that H.B. No. 4347 was passed by the House on May 7,
2019, by the following vote: Yeas 125, Nays 23, 1 present, not
voting; and that the House concurred in Senate amendments to H.B.
No. 4347 on May 23, 2019, by the following vote: Yeas 146, Nays 0,
1 present, not voting.
______________________________
Chief Clerk of the House
I certify that H.B. No. 4347 was passed by the Senate, with
amendments, on May 21, 2019, by the following vote: Yeas 24, Nays
6.
______________________________
Secretary of the Senate
APPROVED: __________________
Date
__________________
Governor