Enrolled Bill Summary

            House Bill 92 adds Chapters 334 and 335 to the Local Government Code, relating to the financing of sports and community venues. Chapter 334 authorizes a city or county to build a venue project, such as a stadium or convention center, subject to voter approval. Cities of more than 1.2 million and counties of more than 2.2 million must form a venue district to operate under the chapter. Before an election may be held, the comptroller must certify that the project will not have a significant negative fiscal impact on state revenue. If applicable, a rapid transit or regional transportation authority must also determine that implementation of a proposal tax will not have a significant negative impact on the authority's tax rate and its ability to provide services and will not impair existing contracts. The election must allow voters to vote separately on each project, on each method of financing chosen by the city or county, and on the maximum tax rate of the method chosen. Local governments may choose to impose a sales and use tax, a motor vehicle rental tax, an admissions tax, a parking tax, a hotel occupancy tax, or a facility use tax to finance a venue project. The act establishes tax collection procedures, imposes requirements in cities and counties with other taxing authority, provides penalties for failure to pay taxes or keep adequate records, authorizes changes in the tax rate with voter approval, and sets maximum tax rates. Cities and counties are authorized to issue bonds to finance construction and are required to create a venue project fund for the deposit of bond revenue, tax proceeds, and related revenue. The act provides that an agreement requiring a professional sports team to play home games at a venue is enforceable by specific performance and imposes certain restrictions relating to the relocation of a professional sports team.

            Chapter 335 authorizes two or more counties, cities, or a combination of cities and counties to create a venue district to provide for the construction of a venue. The project is subject to voter approval in each political subdivision that created the district, and a political subdivision is allowed to dedicate sales and use tax revenue to the district. The district is subject to provisions similar to those described above.