Relating to the authority of certain municipalities to use certain tax revenue for hotel and convention center projects and other qualified projects.

89(R) SB 1756 - Engrossed version - Bill Text

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.

This subsection may not be construed to prohibit a

municipality from pledging or committing revenue under this section

for a subsequent qualified project that is authorized by an act of

the legislature that becomes law on or after January 1, 2026.

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 with a

population of more than 1.5 million 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.

This

subsection may not be construed to prohibit a municipality with a

population of more than 1.5 million from pledging or committing

revenue under Subsection (a) for the payment of principal of or

interest on bonds or other obligations for the acquisition,

construction, remodeling, or rehabilitation of a historic hotel

structure if the pledge or commitment of revenue for that purpose is

authorized by an act of the legislature that becomes law on or after

January 1, 2026.

(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.

This

subsection may not be construed to prohibit a municipality from

pledging or committing revenue under Subsection (b) for a

subsequent hotel project that is authorized by an act of the

legislature that becomes law on or after January 1, 2026.

(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

unless that hotel project is authorized by an act of the legislature

that becomes law on or after January 1, 2026.

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.

This subsection may not be construed to prohibit a

municipality from pledging or committing revenue under this section

for a subsequent multipurpose convention center facility project

that is authorized by an act of the legislature that becomes law on

or after January 1, 2026.

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.

This subsection may not be

construed to prohibit a municipality from pledging or committing

revenue under this section for a subsequent hotel project that is

authorized by an act of the legislature that becomes law on or after

January 1, 2026.

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.

This subsection may not be

construed to prohibit a municipality from pledging or committing

revenue under this section for a qualified project that is

authorized by an act of the legislature that becomes law on or after

January 1, 2026.

SECTION 6. Section 351.155(c), Tax Code, is amended to read

as follows:

(c) 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.
This subsection may not be

construed to prohibit a municipality from pledging or committing

revenue under this section for a qualified project that is

authorized by an act of the legislature that becomes law on or after

January 1, 2026.

SECTION 7. Section 351.155(d), Tax Code, is repealed.

SECTION 8. 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, committed, or authorized by a

municipality under Subchapter B or C, Chapter 351, Tax Code,

including an obligation relating to a qualified project under

Section 351.1015 of that 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 9. This Act takes effect January 1, 2026.