S.B. No. 1719

	AN ACT
	relating to the construction, remodeling, or rehabilitation of
	certain hotel projects.
	BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
	SECTION 1.  Subdivision (8), Section 2303.003, Government
	Code, is amended to read as follows:
	(8)  "Qualified hotel project" means:
	(A)  a hotel proposed to be constructed by a
	municipality or a nonprofit municipally sponsored local government
	corporation created under the Texas Transportation Corporation
	Act, Chapter 431, Transportation Code, that is within 1,000 feet of
	a convention center owned by a municipality having a population of
	1,500,000 or more, including shops, parking facilities, and any
	other facilities ancillary to the hotel; and
	(B)  a hotel proposed to be constructed,
	remodeled, or rehabilitated by a municipality or a nonprofit
	municipally sponsored local government corporation created under
	the Texas Transportation Corporation Act, Chapter 431,
	Transportation Code, that is within 3,000 feet of the property line
	of a convention center owned by a municipality having a population
	of more than 500,000 and that borders the United Mexican States.
	SECTION 2.  Subsection (b), Section 2303.5055, Government
	Code, is amended to read as follows:
	(b)  A municipality with a population of 1,500,000 or more or
	a municipality having a population of more than 500,000 and that
	borders the United Mexican States may agree to guarantee from hotel
	occupancy taxes the bonds or other obligations of a municipally
	sponsored local government corporation created under the Texas
	Transportation Corporation Act, Chapter 431, Transportation Code,
	[(Article 1528l, Vernon's Texas Civil Statutes)] that were issued
	or incurred to pay the cost of construction, remodeling, or
	rehabilitation of a qualified hotel project.
	SECTION 3.  Subsection (h), Section 151.429, Tax Code, is
	amended to read as follows:
	(h)  This subsection does not apply to a qualified hotel
	project described by Section 2303.003(8)(B), Government Code.
	Notwithstanding the other provisions of this section, the owner of
	a qualified hotel project shall receive a rebate, refund, or
	payment of 100 percent of the sales and use taxes paid or collected
	by the qualified hotel project or businesses located in the
	qualified hotel project pursuant to this chapter and 100 percent of
	the hotel occupancy taxes paid by persons for the use or possession
	of or for the right to the use or possession of a room or space at
	the qualified hotel project pursuant to the provisions of Chapter
	156 during the first 10 years after such qualified hotel project is
	open for initial occupancy.  The comptroller shall deposit the
	taxes in trust in a separate suspense account of the qualified hotel
	project.  A suspense account is outside the state treasury, and the
	comptroller may make a rebate, refund, or payment authorized by
	this section without the necessity of an appropriation.  The
	comptroller shall rebate, refund, or pay to each qualified hotel
	project eligible taxable proceeds to which the project is entitled
	under this section at least monthly.
	SECTION 4.  Subdivision (2), Section 351.001, Tax Code, is
	amended to read as follows:
	(2)  "Convention center facilities" or "convention
	center complex" means facilities that are primarily used to host
	conventions and meetings.  The term means civic centers, civic
	center buildings, auditoriums, exhibition halls, and coliseums
	that are owned by the municipality or other governmental entity or
	that are managed in whole or part by the municipality.  In a
	municipality with a population of 1.5 million or more, "convention
	center facilities" or "convention center complex" means civic
	centers, civic center buildings, auditoriums, exhibition halls,
	and coliseums that are owned by the municipality or other
	governmental entity or that are managed in part by the
	municipality, hotels owned by the municipality or a nonprofit
	municipally sponsored local government corporation created under
	Chapter 431, Transportation Code, within 1,000 feet of a convention
	center owned by the municipality, or a historic hotel owned by the
	municipality or a nonprofit municipally sponsored local government
	corporation created under Chapter 431, Transportation Code, within
	one mile of a convention center owned by the municipality.  The term
	includes parking areas or facilities that are for the parking or
	storage of conveyances and that are located at or in the vicinity of
	other convention center facilities.  The term also includes a hotel
	owned by or located on land that is owned by an eligible central
	municipality or 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.  The term
	also includes a hotel proposed to be constructed, remodeled, or
	rehabilitated by a municipality or a nonprofit municipally
	sponsored local government corporation created under Chapter 431,
	Transportation Code, that is within 3,000 feet of the property line
	of a convention center owned by a municipality having a population
	of more than 500,000 and that borders the United Mexican States.
	SECTION 5.  Subsection (a), Section 351.102, Tax Code, is
	amended to read as follows:
	(a)  Subject to the limitations provided by this subchapter,
	a municipality may pledge the revenue derived from the tax imposed
	under this chapter for the payment of bonds that are issued under
	Section 1504.002(a), Government Code, for one or more of the
	purposes provided by Section 351.101 or, in the case of a
	municipality of 1,500,000 or more or a municipality having a
	population of more than 500,000 and that borders the United Mexican
	States, for the payment of principal of or interest on bonds or
	other obligations of a municipally sponsored local government
	corporation created under Chapter 431, Transportation Code, that
	were 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; provided, however,
	such pledge may only be that portion of the tax collected at such
	hotel.
	SECTION 6.  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, 2013.
	______________________________	______________________________
	President of the Senate	Speaker of the House
	I hereby certify that S.B. No. 1719 passed the Senate on
	April 29, 2013, by the following vote:  Yeas 31, Nays 0.
	______________________________
	Secretary of the Senate
	I hereby certify that S.B. No. 1719 passed the House on
	May 17, 2013, by the following vote:  Yeas 138, Nays 3, three
	present not voting.
	______________________________
	Chief Clerk of the House
	Approved:
	______________________________
	Date
	______________________________
	Governor