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