The text as introduced · 733 words
89R6020 RDS-D
By: Birdwell
S.B. No. 1756
A BILL TO BE ENTITLED
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 351.1015, Tax Code, is amended by adding
Subsection (m) to read as follows:
(m) Notwithstanding any other provision of this section, 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
subsequent qualified project under this section. For purposes of
this subsection, the term "municipality" includes a local
government corporation created to aid and act on behalf of the
municipality.
SECTION 2. Section 351.102, Tax Code, is amended by adding
Subsections (a-1), (b-1), and (b-2) to read as follows:
(a-1) Notwithstanding Subsection (a), a municipality may
not pledge or commit revenue under that subsection for the payment
of principal of or interest on bonds or other obligations issued to
pay the cost of the acquisition and construction of a convention
center hotel or the cost of acquisition, remodeling, or
rehabilitation of a historic hotel structure if the acquisition,
construction, remodeling, or rehabilitation is commenced after
December 1, 2016.
(b-1) Notwithstanding Subsection (b) or (c) and except as
provided by Subsection (b-2), a municipality may pledge or commit
revenue under Subsection (b) for only one hotel project. After a
municipality pledges or commits revenue under Subsection (b) for a
hotel project, the municipality may not ever again pledge or commit
revenue for a subsequent hotel project under that subsection.
(b-2) A municipality that before January 1, 2025, pledged or
committed revenue under this section for more than one hotel
project:
(1) is not subject to Subsection (b-1); and
(2) may not on or after January 1, 2025, pledge or
commit revenue under Subsection (b) for another hotel project.
SECTION 3. Section 351.1021, Tax Code, is amended by adding
Subsection (f) to read as follows:
(f) An eligible municipality may pledge or commit revenue
under this section for only one multipurpose convention center
facility project. After an eligible municipality pledges or
commits revenue under this section for a multipurpose convention
center facility project, the municipality may never again pledge or
commit revenue under this section for a subsequent multipurpose
convention center facility project. For purposes of this
subsection, the term "eligible municipality" includes a local
government corporation created to aid and act on behalf of the
municipality.
SECTION 4. Section 351.1022, Tax Code, is amended by adding
Subsection (f) to read as follows:
(f) A municipality may pledge or commit revenue under this
section for only one hotel project. After a municipality pledges or
commits revenue under this section for a hotel project, the
municipality may never again pledge or commit revenue under this
section for a subsequent hotel project.
SECTION 5. Section 351.106, Tax Code, is amended by adding
Subsection (d) to read as follows:
(d) In this subsection, "qualified project" has the meaning
assigned by Section 351.1015. Notwithstanding any other provision
of this section, 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.
SECTION 6. Section 351.155(d), Tax Code, is repealed.
SECTION 7. The changes in law made by this Act do not affect
the validity of a bond, contractual obligation, or other obligation
for which revenue was pledged or committed under Subchapter B or C,
Chapter 351, Tax Code, before the effective date of this Act.
Bonds, contractual obligations, or other obligations for which
revenue was pledged or committed before that date are governed by
the law in effect when the revenue was pledged or committed, and
that law is continued in effect for the purposes of the validity of
those bonds, contractual obligations, and other obligations.
SECTION 8. 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, 2025.
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