PLEDGE FOR BONDS

(a) Subject to the limitations provided by this subchapter, a municipality may pledge the revenue derived from the tax imposed under this chapter for the payment of bonds that are issued under Section 1504.002(a), Government Code, for one or more of the purposes provided by Section 351.101 or, in the case of a municipality of 1,500,000 or more, for the payment of principal of or interest on bonds or other obligations of a municipally sponsored local government corporation created under Chapter 431, Transportation Code, that were 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; provided, however, such pledge may only be that portion of the tax collected at such hotel. (b) A municipality described by Subsection (e) 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 qualified convention center facility, as defined by Section 351.151, 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 convention center entertainment-related facilities, restaurants, retail establishments, street and water and sewer infrastructure necessary for the operation of the hotel or ancillary facilities, and parking facilities within 1,000 feet of the hotel or convention center facility. For bonds or other obligations issued under this subsection, a municipality described by Subsection (e) may only pledge revenue or other assets of the hotel project benefiting from those bonds or other obligations. (b-1) Repealed by Acts 2019, 86th Leg., R.S., Ch. 952 (H.B. 4347), Sec. 9, eff. September 1, 2019. (c) A municipality described by Subsection (e) is entitled to receive all funds from a project described by Subsection (b) that an owner of a project may receive under Section 151.429(h) of this code, or Section 2303.5055, Government Code, and may pledge the funds for the payment of obligations issued under this section, but only if the municipality has pledged the revenue derived from the tax imposed under this chapter from the project for the payment of bonds or other obligations issued or incurred for the project. (c-1) Repealed by Acts 2019, 86th Leg., R.S., Ch. 952 (H.B. 4347), Sec. 9, eff. September 1, 2019. (e) Subsection (b) applies only to: (1) a municipality with a population of two million or more; (2) a municipality with a population of 700,000 or more but less than 1.4 million; (3) a municipality with a population of 350,000 or more but less than 450,000 in which at least two professional sports stadiums are located, each of which: (A) has a seating capacity of at least 40,000 people; and (B) was approved by the voters of the municipality as a sports and community venue project under Chapter 334, Local Government Code; and (4) a municipality with a population of less than 2,000 that: (A) is located adjacent to a bay connected to the Gulf of Mexico; (B) is located in a county with a population of 290,000 or more that is adjacent to a county with a population of four million or more; and (C) has a boardwalk on the bay. (g) Repealed by Acts 2019, 86th Leg., R.S., Ch. 952 (H.B. 4347), Sec. 9, eff. September 1, 2019.