Bill Text: TX SB832 | 2017-2018 | 85th Legislature | Engrossed
Bill Title: Relating to the authority of certain municipalities to pledge revenue from the municipal hotel occupancy tax for the payment of obligations related to hotel projects.
Spectrum: Partisan Bill (Republican 1-0)
Status: (Engrossed - Dead) 2017-05-16 - Left pending in committee [SB832 Detail]
Download: Texas-2017-SB832-Engrossed.html
| By: Estes | S.B. No. 832 | |
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| relating to the authority of certain municipalities to pledge | ||
| revenue from the municipal hotel occupancy tax for the payment of | ||
| obligations related to hotel projects. | ||
| BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: | ||
| SECTION 1. Section 351.102, Tax Code, is amended by | ||
| amending Subsections (b), (c), and (d) and adding Subsection (e) to | ||
| read as follows: | ||
| (b) 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 convention | ||
| center facility 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, 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. 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 municipality to which Subsection (b) or (e) applies is | ||
| entitled to receive all funds from a project described by this | ||
| section 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. | ||
| (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 Subsection (c) for a | ||
| hotel project 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). | ||
| (e) In addition to the municipalities described by | ||
| Subsection (b), that subsection also applies to 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. | ||
| 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, 2017. | ||
