Bill Text: TX SB748 | 2013-2014 | 83rd Legislature | Enrolled


Bill Title: Relating to the use of certain tax revenue to enhance and upgrade convention center facilities, multipurpose arenas, venues, and related infrastructure in certain municipalities.

Spectrum: Partisan Bill (Republican 2-0)

Status: (Passed) 2013-05-24 - Effective on 9/1/13 [SB748 Detail]

Download: Texas-2013-SB748-Enrolled.html
 
 
  S.B. No. 748
 
 
 
 
AN ACT
  relating to the use of certain tax revenue to enhance and upgrade
  convention center facilities, multipurpose arenas, venues, and
  related infrastructure 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 351.1015 to read as follows:
         Sec. 351.1015.  CERTAIN QUALIFIED PROJECTS. (a)  In this
  section:
               (1)  "Base year amount" means the amount of
  hotel-associated revenue collected in a project financing zone
  during the calendar year in which a municipality designates the
  zone.
               (2)  "Hotel-associated revenue" means the sum of:
                     (A)  state tax revenue collected in a project
  financing zone from all hotels located in the zone that would be
  available to the owners of qualified hotel projects under Section
  151.429(h) if the hotels were qualified hotel projects, excluding
  the amount of that revenue received by a municipality under Section
  351.102(c) for a hotel project described by Section 351.102(b) and
  located in the zone that exists on the date the municipality
  designates the zone; and
                     (B)  tax revenue collected from all permittees
  under Chapter 183 at hotels located in the zone, excluding revenue
  disbursed by the comptroller under Section 183.051(b).
               (3)  "Incremental hotel-associated revenue" means the
  amount in any calendar year by which hotel-associated revenue,
  including hotel-associated revenue from hotels built in the project
  financing zone after the year in which a municipality designates
  the zone, exceeds the base year amount.
               (4)  "Project financing zone" means an area within a
  municipality:
                     (A)  that the municipality by ordinance or by
  agreement under Chapter 380, Local Government Code, designates as a
  project financing zone;
                     (B)  the boundaries of which are within a
  three-mile radius of the center of a qualified project;
                     (C)  the designation of which specifies the
  longitude and latitude of the center of the qualified project; and
                     (D)  the designation of which expires not later
  than the 30th anniversary of the date of designation.
               (5)  "Qualified project" means:
                     (A)  a convention center facility; or
                     (B)  a multipurpose arena or venue that includes a
  livestock facility and is located within or adjacent to a
  recognized cultural district, and any related infrastructure, that
  is:
                           (i)  located on land owned by a municipality
  or by the owner of the venue;
                           (ii)  partially financed by private
  contributions that equal not less than 40 percent of the project
  costs; and
                           (iii)  related to the promotion of tourism
  and the convention and hotel industry.
               (6)  "Venue" and "related infrastructure" have the
  meanings assigned by Section 334.001, Local Government Code.
         (b)  This section applies only to a qualified project located
  in a municipality with a population of at least 650,000 but less
  than 750,000 according to the most recent federal decennial census.
         (c)  In addition to the uses provided by Section 351.101,
  revenue from the municipal hotel occupancy tax may be used to fund a
  qualified project.
         (d)  A municipality may pledge the revenue derived from the
  tax imposed under this chapter from a hotel located in the project
  financing zone for the payment of bonds or other obligations issued
  or incurred to acquire, lease, construct, improve, enlarge, and
  equip the qualified project.
         (e)  A municipality may pledge for the payment of bonds or
  other obligations described by Subsection (d) the local revenue
  from eligible tax proceeds as defined by Section 2303.5055(e),
  Government Code, from hotels located in a project financing zone
  that would be available to the owners of qualified hotel projects
  under that section if the hotels were qualified hotel projects,
  excluding any amount received by the municipality for a hotel
  project described by Section 351.102(b) and located in the zone
  that exists on the date the municipality designates the zone.
         (f)  A municipality shall notify the comptroller of the
  municipality's designation of a project financing zone not later
  than the 30th day after the date the municipality designates the
  zone.  Notwithstanding other law, the municipality is entitled to
  receive the incremental hotel-associated revenue from the project
  financing zone for the period beginning on the first day of the year
  after the year in which the municipality designates the zone and
  ending on the last day of the month during which the designation
  expires.  The municipality may pledge the revenue for the payment of
  bonds or other obligations described by Subsection (d).
         (g)  The comptroller shall deposit incremental
  hotel-associated revenue collected by or forwarded to the
  comptroller in a separate suspense account to be held in trust for
  the municipality that is entitled to receive the revenue.  The
  suspense account is outside the state treasury, and the comptroller
  may make a payment authorized by this section from the account
  without the necessity of an appropriation. The comptroller shall
  begin making payments from the suspense account to the municipality
  for which the money is held on the date the qualified project in the
  project financing zone is commenced.  If the qualified project is
  not commenced by the fifth anniversary of the first deposit to the
  account, the comptroller shall transfer the money in the account to
  the general revenue fund and cease making deposits to the account.
         (h)  The comptroller may estimate the amount of incremental
  hotel-associated revenue that will be deposited to a suspense
  account under Subsection (g) during each calendar year.  The
  comptroller may make deposits to the account and the municipality
  may request disbursements from the account on a monthly basis based
  on the estimate.  At the end of each calendar year, the comptroller
  shall adjust the deposits and disbursements to reflect the amount
  of revenue actually deposited to the account during the calendar
  year.
         (i)  A municipality shall notify the comptroller if the
  qualified project in the project financing zone is abandoned.  If
  the qualified project is abandoned, the comptroller shall transfer
  to the general revenue fund the amount of money in the suspense
  account that exceeds the amount required for the payment of bonds or
  other obligations described by Subsection (d).
         SECTION 2.  Subsection (a), Section 351.1065, Tax Code, is
  amended to read as follows:
         (a)  An eligible central municipality shall use the amount of
  revenue from the tax that is derived from the application of the tax
  at a rate of more than seven percent of the cost of a room only for:
               (1)  the construction of an expansion of an existing
  convention center facility; [and]
               (2)  a qualified project to which Section 351.1015
  applies; and
               (3)  pledging payment of revenue bonds and revenue
  refunding bonds issued under Subchapter A, Chapter 1504, Government
  Code, for the construction or qualified project [of the expansion].
         SECTION 3.  This Act takes effect September 1, 2013.
 
 
 
 
 
  ______________________________ ______________________________
     President of the Senate Speaker of the House     
 
         I hereby certify that S.B. No. 748 passed the Senate on
  April 4, 2013, by the following vote: Yeas 31, Nays 0; and that the
  Senate concurred in House amendment on May 9, 2013, by the following
  vote: Yeas 26, Nays 4.
 
 
  ______________________________
  Secretary of the Senate    
 
         I hereby certify that S.B. No. 748 passed the House, with
  amendment, on May 2, 2013, by the following vote: Yeas 147, Nays 0,
  two present not voting.
 
 
  ______________________________
  Chief Clerk of the House   
 
 
 
  Approved:
 
  ______________________________ 
              Date
 
 
  ______________________________ 
            Governor
feedback