S.B. No. 1207

	AN ACT
	relating to the use of municipal hotel occupancy tax revenue to
	finance a convention center hotel in certain municipalities.
	BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
	SECTION 1.  Section 351.102, Tax Code, is amended by
	amending Subsection (b) and adding Subsection (b-1) to read as
	follows:
	(b)  An eligible central municipality or a municipality with
	a population of 173,000 or more that is located within two counties
	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 shops and parking facilities. For bonds or other
	obligations issued under this subsection, an eligible central
	municipality or a municipality with a population of 173,000 or more
	that is located within two counties may only pledge revenue or other
	assets of the hotel project benefiting from those bonds or other
	obligations.
	(b-1)  A municipality with a population of 173,000 or more
	that is located within two counties and is not an eligible central
	municipality may not pledge revenue under Subsection (b) in
	relation to a particular hotel project after the earlier of:
	(1)  the 20th anniversary of the date the municipality
	first pledged the revenue to the hotel project; or
	(2)  the date the revenue pledged to the hotel project
	equals 40 percent of the hotel project's total construction cost.
	SECTION 2.  Subsection (b), Section 1504.001, Government
	Code, is amended to read as follows:
	(b)  An eligible central municipality, as defined by Section
	351.001, Tax Code, or a municipality with a population of 173,000 or
	more that is located within two counties may establish, acquire,
	lease as lessee or lessor, construct, improve, enlarge, equip,
	repair, operate, or maintain a hotel, and any facilities ancillary
	to the hotel, including shops and parking facilities, that are
	owned by or located on land owned by the municipality or by a
	nonprofit corporation acting on behalf of the municipality, and
	that is located within 1,000 feet of a convention center facility
	owned by the municipality.
	SECTION 3.  Subsection (b), Section 1504.002, Government
	Code, is amended to read as follows:
	(b)  An eligible central municipality, as defined by Section
	351.001, Tax Code, or a municipality with a population of 173,000 or
	more that is located within two counties by ordinance may issue
	bonds or incur other obligations to acquire, lease, construct, or
	equip a facility described by Section 1504.001(b).
	SECTION 4.  This Act takes effect September 1, 2009.
	______________________________	______________________________
	President of the Senate	Speaker of the House
	I hereby certify that S.B. No. 1207 passed the Senate on
	April 16, 2009, by the following vote:  Yeas 31, Nays 0.
	______________________________
	Secretary of the Senate
	I hereby certify that S.B. No. 1207 passed the House on
	May 26, 2009, by the following vote:  Yeas 141, Nays 0, two
	present not voting.
	______________________________
	Chief Clerk of the House
	Approved:
	______________________________
	Date
	______________________________
	Governor