SB1756 - Relating to the authority of certain municipalities to use certain tax revenue for hotel and convention center projects and other qualified projects.

      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.