By: Bohac (Senate Sponsor - Taylor of Galveston) H.B. No. 1896          (In the Senate - Received from the House April 24, 2017;   May 1, 2017, read first time and referred to Committee on Natural   Resources & Economic Development; May 9, 2017, reported favorably   by the following vote:  Yeas 11, Nays 0; May 9, 2017, sent to   printer.)Click here to see the committee vote     A BILL TO BE ENTITLED   AN ACT     relating to the application of and use of revenue from hotel   occupancy taxes imposed by municipalities and counties.          BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:          SECTION 1.  Section 334.001(4), Local Government Code, is   amended to read as follows:                (4)  "Venue" means:                      (A)  an arena, coliseum, stadium, or other type of   area or facility:                            (i)  that is used or is planned for use for   one or more professional or amateur sports events, community   events, or other sports events, including rodeos, livestock shows,   agricultural expositions, promotional events, and other civic or   charitable events, provided that a facility financed wholly or   partly with revenue from a tax imposed under Subchapter H is not, or   will not be, primarily used for community, civic, and charitable   events that are attended only by residents of the community; and                            (ii)  for which a fee for admission to the   events is charged or is planned to be charged;                      (B)  a convention center, a convention center   facility as defined by Section 351.001(2) or 352.001(2), Tax Code,   or a related improvement such as a civic center hotel, theater,   opera house, music hall, rehearsal hall, park, zoological park,   museum, aquarium, or plaza located in the vicinity of a convention   center or facility owned by a municipality or a county, provided   that a related improvement for a facility financed wholly or partly   with revenue from a tax imposed under Subchapter H must be in the   vicinity of the convention center;                      (C)  a tourist development area along an inland   waterway;                      (D)  a municipal parks and recreation system, or   improvements or additions to a parks and recreation system, or an   area or facility that is part of a municipal parks and recreation   system;                      (E)  a project authorized by Section 4A or 4B,   Development Corporation Act of 1979 (Article 5190.6, Vernon's Texas   Civil Statutes), as that Act existed on September 1, 1997; and                      (F)  a watershed protection and preservation   project; a recharge, recharge area, or recharge feature protection   project; a conservation easement; or an open-space preservation   program intended to protect water.          SECTION 2.  Section 351.001(2), 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 that is owned in part by an eligible central   municipality described by Subdivision (7)(D) and that is located   within 1,000 feet of a convention center facility. For purposes of   this subdivision, "meetings" means gatherings of people that   enhance and promote tourism and the convention and hotel industry.          SECTION 3.  Section 351.007, Tax Code, is amended to read as   follows:          Sec. 351.007.  PREEXISTING CONTRACTS. (a) If a municipality   increases the rate of the tax authorized by this chapter, the   increased tax rate does not apply to the tax imposed on the use or   possession, or the right to the use or possession, of a room under a   contract that was executed before the date the increased rate takes   effect and [October 1, 1989,] that provides for the payment of the   tax at the rate in effect when the contract was executed, unless the   contract is subject to change or modification by reason of the tax   rate increase.          (b)  This subsection applies only to a contract that provides   for the payment of one or more taxes imposed on the use or   possession, or the right to the use or possession, of a room that is   in a hotel, including a tax authorized by Chapter 156 or 352 of this   code or by Subchapter H, Chapter 334, Local Government Code. If a   municipality adopts an ordinance imposing a tax under this chapter   that is not imposed at any rate before the effective date of the tax   prescribed by the ordinance, the imposition of the tax does not   apply to the use or possession, or the right to the use or   possession, of a room under a contract executed before the date the   imposition of the tax takes effect, unless the contract is subject   to change or modification by reason of the imposition of the new   tax.          (c)  The tax rate applicable to the use or possession, or the   right to the use or possession, of a room under a [the] contract   described by Subsection (a) is the rate in effect when the contract   was executed. Notwithstanding Section 351.002(a), no tax is imposed   under this chapter on the use or possession, or the right to the use   or possession, of a room under a contract described by Subsection   (b).   SECTION 4.  Section 351.101(a), Tax Code, as amended by   Chapters 666 (H.B. 3772) and 979 (H.B. 3615), Acts of the 84th   Legislature, Regular Session, 2015, is reenacted and amended to   read as follows:          (a)  Revenue from the municipal hotel occupancy tax may be   used only to promote tourism and the convention and hotel industry,   and that use is limited to the following:                (1)  the acquisition of sites for and the construction,   improvement, enlarging, equipping, repairing, operation, and   maintenance of convention center facilities or visitor information   centers, or both;                (2)  the furnishing of facilities, personnel, and   materials for the registration of convention delegates or   registrants;                (3)  advertising and conducting solicitations and   promotional programs to attract tourists and convention delegates   or registrants to the municipality or its vicinity;                (4)  the encouragement, promotion, improvement, and   application of the arts, including instrumental and vocal music,   dance, drama, folk art, creative writing, architecture, design and   allied fields, painting, sculpture, photography, graphic and craft   arts, motion pictures, radio, television, tape and sound recording,   and other arts related to the presentation, performance, execution,   and exhibition of these major art forms;                (5)  historical restoration and preservation projects   or activities or advertising and conducting solicitations and   promotional programs to encourage tourists and convention   delegates to visit preserved historic sites or museums:                      (A)  at or in the immediate vicinity of convention   center facilities or visitor information centers; or                      (B)  located elsewhere in the municipality or its   vicinity that would be frequented by tourists and convention   delegates;                (6)  for a municipality located in a county with a   population of one million or less, expenses, including promotion   expenses, directly related to a sporting event in which the   majority of participants are tourists who substantially increase   economic activity at hotels and motels within the municipality or   its vicinity;                (7)  subject to Section 351.1076, the promotion of   tourism by the enhancement and upgrading of existing sports   facilities or fields[, including facilities or fields for baseball,   softball, soccer, flag football, and rodeos,] if:                      (A)  the municipality owns the facilities or   fields;                      (B)  the municipality:                            (i)  has a population of 80,000 or more and   is located in a county that has a population of 350,000 or less;                            (ii)  has a population of at least 75,000 but   not more than 95,000 and is located in a county that has a   population of less than 200,000 but more than 160,000;                            (iii)  has a population of at least 36,000   but not more than 39,000 and is located in a county that has a   population of 100,000 or less that is not adjacent to a county with   a population of more than two million;                            (iv)  has a population of at least 13,000 but   less than 39,000 and is located in a county that has a population of   at least 200,000;                            (v)  has a population of at least 70,000 but   less than 90,000 and no part of which is located in a county with a   population greater than 150,000;                            (vi)  is located in a county that:                                  (a)  is adjacent to the Texas-Mexico   border;                                  (b)  has a population of at least   500,000; and                                  (c)  does not have a municipality with   a population greater than 500,000;                            (vii)  has a population of at least 25,000   but not more than 26,000 and is located in a county that has a   population of 90,000 or less;                            (viii) [(ix)]  is located in a county that   has a population of not more than 300,000 and in which a component   university of the University of Houston System is located; or                            (ix) [(x)]  has a population of at least   40,000 and the San Marcos River flows through the municipality; and                      (C)  the sports facilities and fields have been   used, in the preceding calendar year, a combined total of more than   10 times for district, state, regional, or national sports   tournaments;                (8)  for a municipality with a population of at least   70,000 but less than 90,000, no part of which is located in a county   with a population greater than 150,000, the construction,   improvement, enlarging, equipping, repairing, operation, and   maintenance of a coliseum or multiuse facility;                (9)  signage directing the public to sights and   attractions that are visited frequently by hotel guests in the   municipality;                (10)  the construction, improvement, enlarging,   equipping, repairing, operation, and maintenance of a coliseum or   multiuse facility, if the municipality:                      (A)  has a population of at least 90,000 but less   than 120,000; and                      (B)  is located in two counties, at least one of   which contains the headwaters of the San Gabriel River; and                (11)  for a municipality with a population of more than   175,000 but less than 225,000 that is located in two counties, each   of which has a population of less than 200,000, the construction,   improvement, enlarging, equipping, repairing, operation, and   maintenance of a coliseum or multiuse facility and related   infrastructure or a venue, as defined by Section 334.001(4), Local   Government Code, that is related to the promotion of tourism.          SECTION 5.  Section 352.0031, Tax Code, is amended to read as   follows:          Sec. 352.0031.  PREEXISTING CONTRACTS. (a) If a county   increases the rate of the tax authorized by this chapter, the   increased tax rate does not apply to the tax imposed on the use or   possession, or the right to the use or possession, of a room under a   contract that was executed before the date the increased rate takes   effect and [October 1, 1989,] that provides for the payment of the   tax at the rate in effect when the contract was executed, unless the   contract is subject to change or modification by reason of the tax   rate increase.          (b)  This subsection applies only to a contract that provides   for the payment of one or more taxes imposed on the use or   possession, or the right to the use or possession, of a room that is   in a hotel, including a tax authorized by Chapter 156 or 351 of this   code or by Subchapter H, Chapter 334, Local Government Code. If the   commissioners court of a county adopts an order or resolution   imposing a tax under this chapter as authorized by Section 352.002   and the tax was not imposed at any rate before the effective date of   the tax prescribed by the order or resolution, the imposition of the   tax does not apply to the use or possession, or the right to the use   or possession, of a room under a contract executed before the date   the imposition of the tax takes effect, unless the contract is   subject to change or modification by reason of the imposition of the   new tax.          (c)  The tax rate applicable to the use or possession, or the   right to the use or possession, of a room under a [the] contract   described by Subsection (a) is the rate in effect when the contract   was executed. Notwithstanding Section 352.002, no tax is imposed   under this chapter on the use or possession, or the right to the use   or possession, of a room under a contract described by Subsection   (b).          SECTION 6.  To the extent of any conflict, this Act prevails   over another Act of the 85th Legislature, Regular Session, 2017,   relating to nonsubstantive additions to and corrections in enacted   codes.          SECTION 7.  This Act takes effect September 1, 2017.     * * * * *