(a) Hotel Projects.
  (1) Definitions. The following words and terms, when used in this subsection, shall have the following meanings, unless the context clearly indicates otherwise.
    (A) Convention center entertainment-related facilities--Facilities owned by or located on land owned by the municipality or the nonprofit corporation acting on behalf of an eligible central municipality, and designed and primarily used for convention center events, activities, and performances. Examples of this term are a performance hall, permanent or temporary stage, amphitheater, and pavilion. The term does not include facilities designed for a specific use. Examples of facilities that do not meet this definition include an amusement park, fitness or sports center, museum, sports venue, waterpark, or zoo.
    (B) Convention center facilities--Facilities 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.
      (i) 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.
      (ii) The term also means:
        (I) 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; or
        (II) a hotel that is owned in part by an eligible central municipality described by subparagraph (C)(iv) of this paragraph and that is located within 1,000 feet of a convention center facility.
      (iii) For the purpose of this subparagraph, "meetings" means gatherings of people that enhance and promote tourism and the convention and hotel industry.
    (C) Eligible central municipality--
      (i) A municipality with a population of more than 140,000 but less than 1.5 million that is located in a county with a population of one million or more and that has adopted a capital improvement plan for the construction or expansion of a convention center facility;
      (ii) a municipality with a population of 250,000 or more that:
        (I) is located wholly or partly on a barrier island that borders the Gulf of Mexico;
        (II) is located in a county with a population of 300,000 or more; and
        (III) has adopted a capital improvement plan to expand an existing convention center facility;
      (iii) a municipality with a population of 116,000 or more that:
        (I) is located in two counties both of which have a population of 660,000 or more; and
        (II) has adopted a capital improvement plan for the construction or expansion of a convention center facility;
      (iv) a municipality with a population of less than 50,000 that contains a general academic teaching institution that is not a component institution of a university system, as those terms are defined by Education Code, §61.003 (Definitions); or
      (v) a municipality with a population of 640,000 or more that:
        (I) is located on an international border; and
        (II) has adopted a capital improvement plan for the construction or expansion of a convention center facility.
    (D) Eligible tax proceeds--Local ad valorem taxes, local sales and use taxes, local hotel occupancy taxes, local mixed beverage gross receipts taxes, and local mixed beverage sales taxes that are generated, paid, or collected by a qualified hotel project or facilities ancillary to the hotel, and that may be rebated, refunded, or paid to the owner of a qualified hotel project under an agreement with a municipality, county, or other governmental body.
    (E) Facility ancillary to the hotel--A facility owned by or located on land owned by a municipality or, for an eligible central municipality, a nonprofit corporation acting on its behalf that provides necessary support for the operation and function of the hotel, and that is:
      (i) located within 1,000 feet of a convention center facility owned by the municipality or hotel, as measured from the closest exterior wall of the ancillary facility in a single-tenant building or closest demising wall of the ancillary facility in a multi-tenant building to the closest exterior wall of the convention center facility or hotel; and
      (ii) located in a hotel project owned by or located on land owned by:
        (I) an eligible central municipality or a nonprofit organization acting on behalf of an eligible central municipality;
        (II) a municipality with a population of 173,000 or more that is located within two or more counties, including a hotel project not owned by or located on land owned by the municipality if the project is located on land that is owned by the federal government;
        (III) a municipality with a population of 96,000 or more that is located in a county that borders Lake Palestine;
        (IV) a municipality with a population of 96,000 or more that contains the headwaters of the San Gabriel River;
        (V) a municipality with a population of at least 99,900 but not more than 111,000 that is located in a county with a population of at least 135,000;
        (VI) a municipality with a population of at least 110,000 but not more than 135,000 at least part of which is located in a county with a population of not more than 135,000;
        (VII) a municipality with a population of at least 9,000 but not more than 10,000 that is located in two counties, each of which has a population of at least 662,000 and a southern border with a county with a population of 2.3 million or more;
        (VIII) a municipality with a population of at least 200,000 but not more than 300,000 that contains a component institution of the Texas Tech University System;
        (IX) a municipality with a population of at least 95,000 that borders Lake Lewisville;
        (X) a municipality that:
          (-a-) contains a portion of Cedar Hill State Park;
          (-b-) has a population of more than 45,000;
          (-c-) is located in two counties, one of which has a population of more than two million and one of which has a population of more than 149,000; and
          (-d-) has adopted a capital improvement plan for the construction or expansion of a convention center facility;
        (XI) a municipality with a population of less than 6,000 that:
          (-a-) is located in two counties each with a population of 600,000 or more that are both adjacent to a county with a population of two million or more;
          (-b-) has full-time police and fire departments; and
          (-c-) has adopted a capital improvement plan for the construction or expansion of a convention center facility;
        (XII) a municipality with a population of at least 56,000 that:
          (-a-) borders Lake Ray Hubbard; and
          (-b-) is located in two counties, one of which has a population of less than 80,000;
        (XIII) a municipality with a population of more than 83,000, that borders Clear Lake, and that is primarily located in a county with a population of less than 300,000;
        (XIV) 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;
        (XV) a municipality with a population of 75,000 or more that:
          (-a-) is located wholly in one county with a population of 575,000 or more that is adjacent to a county with a population of four million or more; and
          (-b-) has adopted a capital improvement plan for the construction or expansion of a convention center facility;
        (XVI) a municipality with a population of less than 75,000 that is located in three counties, at least one of which has a population of at least four million; or
        (XVII) a home-rule municipality that borders the Gulf of Mexico with a population of more than 3,000 but less than 5,000.
      (iii) The term includes convention center entertainment-related facilities, meeting spaces, restaurants, shops, street and water and sewer infrastructure necessary for the operation of the hotel or ancillary facilities, and parking facilities.
Cont'd...