ALLOCATION OF REVENUE: POPULOUS MUNICIPALITIES WITH COUNCIL-MANAGER GOVERNMENT

(a) A municipality that has a population of 1.18 million or more, is located predominantly in a county that has a total area of less than 1,000 square miles, and that has adopted a council-manager form of government shall use the amount of revenue from the tax that is derived from the application of the tax at a rate of more than four percent of the cost of a room as follows: (1) no more than 55 percent to: (A) constructing, improving, enlarging, equipping, and repairing the municipality's convention center complex; or (B) pledging payment of revenue bonds and revenue refunding bonds issued under Subchapter A, Chapter 1504, Government Code, for the municipality's convention center complex; and (2) at least 45 percent for the purposes provided by Section 351.101(a)(3). (b) Revenue received by a municipality described by Subsection (a) from the application of the tax at a rate of four percent or less may be used as provided by Section 351.101. (c) A municipality to which this section applies: (1) is entitled to receive in the same manner all funds and revenue that a municipality to which Section 351.1015 applies may receive under that section; and (2) may pledge the funds and revenue for the payment of obligations incurred for the construction of qualified projects authorized under that section.