HB3259 - Relating to the ability of certain municipalities and counties to elect not to participate in certain event reimbursement programs and to the allocation of a portion of the state hotel occupancy tax revenue collected in those municipalities and counties.

  89R4016 PRL-D     By: Tepper H.B. No. 3259       A BILL TO BE ENTITLED   AN ACT   relating to the ability of certain municipalities and counties to   elect not to participate in certain event reimbursement programs   and to the allocation of a portion of the state hotel occupancy tax   revenue collected in those municipalities and counties.          BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:          SECTION 1.  Chapter 475, Government Code, is amended by   adding Subchapter F to read as follows:   SUBCHAPTER F. OPTION FOR CERTAIN MUNICIPALITIES AND COUNTIES TO   ELECT NOT TO PARTICIPATE IN CERTAIN EVENT REIMBURSEMENT PROGRAMS           Sec.   475.0251.     OPTION FOR CERTAIN MUNICIPALITIES AND   COUNTIES TO ELECT NOT TO PARTICIPATE IN CERTAIN EVENT REIMBURSEMENT   PROGRAMS. (a)   A municipality or county with a population of   400,000 or less may elect not to participate in the major events   reimbursement program under Chapter 478 and the events trust fund   under Chapter 480.           (b)     A municipality or county that makes the election   authorized under this section is eligible to receive an allocation   of state hotel occupancy tax revenue collected in the municipality   or county as provided by Section 156.2514, Tax Code.           (c)     For a period of four state fiscal years beginning   September 1, 2027, and for each period of four state fiscal years   that occurs after that period ends, a municipality or county may   make the election authorized under this section by providing   written notice of the election to the office of the governor.           (d)     A municipality or county that makes the election   authorized under this section may not participate as an endorsing   municipality or endorsing county under Chapter 478, and is   ineligible for receipt of a disbursement from a fund established   under Chapter 480, during the four-year period for which the   municipality or county submits the notice required by Subsection   (c).             (e)     A municipality or county that made the election   authorized under this section and that wishes to resume   participation in the major events reimbursement program and the   events trust fund after the expiration of the most recent four-year   period for which the municipality or county submitted the notice   required by Subsection (c) may revoke the election by providing   notice of the revocation to the office of the governor before the   earlier of:                 (1)     September 1 of the first year of the four-year   period beginning after the end of the most recent four-year period   for which the municipality or county submitted the notice required   by Subsection (c); or                 (2)     the date that is four months before the date an   eligible event under Section 478.0051 or Section 480.0051 will be   held in the municipality or county.           (f)     A municipality or county that revokes an election   authorized under this section in the manner required by Subsection   (e) is eligible to resume participation in the major events   reimbursement program and the events trust fund on September 1 of   the first year beginning after the end of the most recent four-year   period for which the municipality or county submitted the notice   required by Subsection (c).          SECTION 2.  Section 478.0051, Government Code, is amended by   adding Subsection (d) to read as follows:           (d)     Notwithstanding Subsection (b), an event listed in   Section 478.0001(3) may not receive funding through the program if   the event is held at a site in:                 (1)     a municipality that makes the election authorized   under Section 475.0251; or                 (2)     a county that makes the election authorized under   Section 475.0251, unless the event is held in a municipality that   does not make the election authorized under that section.          SECTION 3.  Section 480.0051, Government Code, is amended to   read as follows:          Sec. 480.0051.  EVENTS ELIGIBLE FOR FUNDING.   (a)   An event   is eligible for funding under this chapter only if:                (1)  a site selection organization, after considering   through a highly competitive selection process one or more sites   not in this state, selects a site in this state for the event to be   held:                      (A)  one time; or                      (B)  if the event is scheduled under an event   contract or event support contract to be held each year for a period   of years, one time in each year;                (2)  a site selection organization selects a site in   this state as:                      (A)  the sole site for the event; or                      (B)  the sole site for the event in a region   composed of this state and one or more adjoining states; and                (3)  the event is held not more than one time in any   year in this state or an adjoining state.           (b)     Notwithstanding Subsection (a), an event is ineligible   for funding under this chapter if the event is held at a site in:                 (1)     a municipality that makes the election authorized   under Section 475.0251; or                 (2)     a county that makes the election authorized under   Section 475.0251, unless the event is held in a municipality that   does not make the election authorized under that section.            SECTION 4.  Section 480.00515, Government Code, is amended   to read as follows:          Sec. 480.00515.  SINGLE YEAR CLASSIFICATION FOR ELIGIBILITY   PURPOSES FOR CERTAIN SPORTING EVENTS.  For purposes of Sections   480.0051(a)(1) [ 480.0051(1) ] and (3), a sporting event is   considered to be held one time in each year if the event is held only   one time in any annual season for that sport.          SECTION 5.  Subchapter F, Chapter 156, Tax Code, is amended   by adding Section 156.2514 to read as follows:           Sec.   156.2514.     ALLOCATION OF REVENUE TO CERTAIN   MUNICIPALITIES AND COUNTIES. (a)   In this section:                 (1)     "Eligible county" means a county that makes the   election described by Section 475.0251, Government Code.                 (2)     "Eligible municipality" means a municipality that   makes the election described by Section 475.0251, Government Code.           (b)     For the public purpose of economic development in rural   areas of this state, not later than the last day of the month   following a calendar quarter during which a municipality or county   is an eligible municipality or county, the municipality or county   is entitled to receive an allocation of a portion of the revenue   derived from the tax imposed under this chapter and collected from   hotels in the municipality or county, as applicable, in the manner   provided by this section.           (c)     This subsection applies to an eligible municipality   located in a county that is not an eligible county.   The amount of   the allocation an eligible municipality to which this subsection   applies is entitled to receive is equal to the amount of revenue   derived from the collection of the tax imposed under this chapter at   a rate of four percent and received from hotels located in the   eligible municipality.           (d)     This subsection applies to an eligible municipality   located in a county that is an eligible county. The amount of the   allocation an eligible municipality to which this subsection   applies is entitled to receive is equal to 50 percent of the amount   of revenue derived from the collection of the tax imposed under this   chapter at a rate of four percent and received from hotels located   in the eligible municipality.           (e)     This subsection applies to an eligible county in which   only municipalities that are not eligible municipalities are   located.   The amount of the allocation an eligible county to which   this subsection applies is entitled to receive is equal to the   amount of revenue derived from the collection of the tax imposed   under this chapter at a rate of four percent and received from all   hotels located in the eligible county that are not located in a   municipality.           (f)     This subsection applies to an eligible county in which   only municipalities that are eligible municipalities are located.   An eligible county to which this subsection applies is entitled to   receive an allocation equal to the sum of:                 (1)     50 percent of the amount of revenue derived from   the collection of the tax imposed under this chapter at a rate of   four percent and received from hotels located in each eligible   municipality located in the eligible county; and                 (2)     the amount of revenue derived from the collection   of the tax imposed under this chapter at a rate of four percent and   received from hotels located in the eligible county that are not   located in an eligible municipality.           (g)     This subsection applies to an eligible county in which   both eligible municipalities and municipalities that are not   eligible municipalities are located.   An eligible county to which   this subsection applies is entitled to receive an allocation equal   to the sum of:                 (1)     50 percent of the amount of revenue derived from   the collection of the tax imposed under this chapter at a rate of   four percent and received from hotels located in each eligible   municipality located in the eligible county; and                 (2)     the amount of revenue derived from the collection   of the tax imposed under this chapter at a rate of four percent and   received from hotels located in the eligible county that are not   located in a municipality.           (h)     As soon as practicable after determining the amount to   which an eligible municipality or eligible county is entitled under   this section, the comptroller shall issue to the municipality or   county a warrant drawn on the general revenue fund for that amount.           (i)  Money received under this section may be used:                 (1)     by an eligible municipality only in the manner   prescribed by Subchapter B, Chapter 351; and                 (2)     by an eligible county only in the manner   prescribed by Subchapter B, Chapter 352.          SECTION 6.  This Act takes effect September 1, 2025.