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