PLEDGE OR COMMITMENT OF CERTAIN TAX REVENUE FOR OBLIGATIONS FOR QUALIFIED PROJECT

(a) In addition to the authority of a municipality to issue debt under Chapter 1504, Government Code, a municipality may pledge or commit the revenue derived from the tax imposed under this chapter from a qualified hotel and the revenue to which the municipality is entitled under Section 351.156 and, if applicable, Section 351.157 for the payment of: (1) bonds or other obligations issued for a qualified project; and (2) contractual obligations related to the project, including obligations under: (A) a contract authorized by Chapter 380, Local Government Code, for the project; and (B) an interlocal agreement directly related to the project. (b) A municipality may pledge or commit revenue for the payment of bonds, other obligations, or contractual obligations under Subsection (a) only if the qualified hotel that is a component of the qualified project for which that revenue is pledged or committed benefits from the pledging or committing of that revenue. (c) A municipality may pledge or commit revenue under this section for only one qualified project. After a municipality pledges or commits revenue under this section for a qualified project, the municipality may not ever again pledge or commit revenue for a qualified project. (c-1) This subsection applies only to a municipality described by Section 351.152(12) that has a population of 130,000 or more. Notwithstanding Subsection (c), a municipality to which this subsection applies may pledge or commit revenue under this section for only two qualified projects. (d) Subsection (c) does not apply to a municipality with a population of 175,000 or more. (e) A municipality is not entitled to receive revenue under Section 351.156 or 351.157 unless the municipality has pledged or committed a portion of the revenue derived from the tax imposed under this chapter and collected by the qualified hotel for the payment of bonds, other obligations, or contractual obligations described by Subsection (a) and issued or incurred for the qualified project.