BILL ANALYSIS C.S.S.B. 1346 By: West (Seidlits, Marchant) May 17, 1995 Committee Report (Substituted) BACKGROUND The economics of professional sports teams has been changing rapidly as players' salaries and other costs rise faster than revenues. While ticket price increases were once the answer to offsetting rising costs, this revenue source no longer is seen as a solution as team owners attempt to keep tickets affordable for the average Texas sports fan. The proliferation of new professional sports stadiums and arenas across the United States is testimony to the changing economics of professional sports. Public financing of these facilities has become the key to enabling franchises to remain as economic engines generating jobs and revenues for the communities where the teams reside. If Texas cities were allowed to offer incentives such as rebates, they could be more successful in their attempts to improve their economy through revitalization and tourism revenue. PURPOSE As proposed, C.S.S.B. 1346 allows municipalities to offer incentives such as rebates in order to designate certain areas as sports facility enterprise zones, which would improve their economy through revitalization and tourism revenue. RULEMAKING AUTHORITY It is the committee's opinion that this bill does not grant any additional rulemaking authority to a state officer, institution, or agency. SECTION BY SECTION ANALYSIS SECTION 1. Amends Chapter 2303, Government Code, by adding Subchapter H, as follows: SUBCHAPTER H. QUALIFIED SPORTS FACILITY PROJECTS Sec. 2303.601. Defines "local government," "qualified sports facility project," "sports authority," "sports facility," and "sports facility enterprise zone." Sec. 2303.602. DESIGNATION OF SPORTS FACILITY ENTERPRISE ZONE. (a) Provides that a sports facility enterprise zone (zone) is an enterprise zone entitled to the benefits of this chapter applicable to enterprise zones. (b) Provides that if a local government designates an area as a reinvestment zone and as a zone in the same ordinance or order, the area is designated as a zone for local benefits without further hearing or procedural requirement other than as required by Chapter 311, Tax Code. (c) Authorizes the governing body of a zone in which a qualified sports facility project (project) is located to apply to the Texas Department of Commerce (department) for designation as a zone for the purpose of state benefits. Requires the department to designate the zone if the department or the governing body of the local government certifies that the zone was created in accordance with this subchapter and Chapter 311, Tax Code. (d) Provides that designation of a zone does not reduce the number of zones the department may designate. Sec. 2303.603. QUALIFIED SPORTS FACILITY PROJECT. (a) Provides that a person is a qualified business and a sports facility project, if the governing body of a local government, for the purpose of local benefits, certifies that the person is a project that is owned by a sports authority (authority). (b) The department shall not consider the number of jobs created or retained in determining the number of projects that may be approved. (c) A qualified sports facility project shall not be an enterprise project, and the qualified sports facility project is only entitled to local benefits applicable to a qualified business under this subchapter and under Chapter 311, Tax Code, and the benefits under Section 111.110, Tax Code. (d) Lists conditions for qualified sports facility projects that the department may approve. (e) The department may not approve more than 10 qualified sports facility projects, of which six must be facilities used for National Football League, National Basketball Association, or National Hockey League games or events or by a New York Stock Exchange listed company for NASCAR or Indy Car sanctioned events. (f) The four projects not designated in Subsection (e), shall be awarded to sports authorities for projects that the department determines will have the largest new positive economic impact to the state. The department shall compare the local economic impact of the project with the economic impact of other proposed projects in their localities, and may approve a project only if it determines the project will have a greater local economic impact than other proposed projects. The department shall send a written explanation of its decision to the LBB at least 30 days before an approval or disapproval becomes effective. At least one of the projects not designated in Subsection (e) must be for a project for the remodeling or rehabilitation of a facility used for professional rodeo or cutting horse events and has been owned by a municipality for more than 50 years. Sec. 2303.604. REFUND, REBATE, OR PAYMENT OF LOCAL TAX PROCEEDS TO CERTAIN SPORTS AUTHORITIES. (a) Authorizes the governing body of a municipality or county to establish a program by which it reduces or eliminates any fees or taxes that it imposes on a project in order to promote the public health, safety, or welfare. (b) Authorizes a governmental body, including a municipality, county, or political subdivision, to agree to rebate, refund, or pay certain tax proceeds for a period prescribed by the agreement to an authority that owns or is rehabilitating or remodeling a project. (c) Authorizes a local government to agree to guarantee, from revenue from hotel occupancy taxes or sales and use taxes, the bonds or other obligations of an authority that were issued or incurred to pay the cost of construction, remodeling, or rehabilitation of a project owned by the authority or local government. (d) Requires an agreement to be in writing, containing an expiration date, and requiring the beneficiary to provide documentation to support the claim. (e) Requires a governmental body that makes an agreement to make the rebate, refund, or payment directly to the beneficiary. (f) Defines "eligible tax proceeds","incremental increase in tax proceeds" and "adjustment for normal economic growth." Sec. 2303.605. REFERENDUM ON SPORTS FACILITY PROJECT; RELOCATION OF TEAM. (a) A sports facility located in a county with a population of 2 million or more, and that is located outside the boundaries of the most populous municipality in the county may not be designated as a qualified project unless the voters of the county approve the designation of the sports facility as a qualified project. The commissioners court shall call the referendum. (b) A sports facility enterprise zone located in a municipality with a population of 1.5 million or more, may not include a sports facility unless the voters of the municipality approve the designation of the sports facility as a qualified project. The governing body of the municipality shall call the referendum. (c) An election called under this section or Section 311.015, Tax Code, may be held on any date. (d) Prohibits a professional sports team located and playing at an existing facility in a local government on January 1, 1995 from contracting to relocate and play at a qualified project in another local government before January 1, 2008, unless a majority of the voters fails to approve the creation of a zone. If a majority of the voters fail to approve the creation of a zone and the professional sports team relocates, the team is not relieved of any contractual obligations the team has in relation to its former location. If a team locates and plays in violation of this subsection, a sports authority that owns, or is associated with a qualified project at which the team plays is not entitled to any benefits under Section 111.110, Tax Code. Sec. 2303.606. AVAILABILITY OF QUALIFIED SPORTS FACILITY PROJECT. Provides that a sports authority must make reasonably availability a qualified project for UIL sanctioned events, at a cost not to exceed the cost of utilities, upon request of a school district or the UIL. SECTION 2. Amends Chapter 111C, Tax Code, by adding Section 111.110, as follows: Sec. 111.110. REBATE, REFUND, OR PAYMENT OF TAX PROCEEDS TO CERTAIN SPORTS AUTHORITIES; RELOCATION OF TEAM. (a) Requires an authority that its own, or in conjunction with a municipality, county, or other political subdivision is constructing, rehabilitating or remodeling a project located in a zone to receive from the state a rebate, refund, or payment of the incremental increase in tax proceeds from sales and use taxes and mixed beverage taxes collected at any outlet or location in the sports facility and mixed beverage tax, hotel occupancy tax, and sales and use tax on food service at restaurants collected by any person operating a business at a location in the zone but outside the sports facility. (b) Subsection (a) does not affect the liability of any person to the state for taxes collected. (c) Provides that the terms conditions, and requirements to met in order for a sports authority to be entitled to receive a state rebate. (d) Provides that a professional sports team or a lessee of a NASCAR or Indy Car sports facility that operates contracts to locate or operate after January 1, 1995 in a qualified project that receives a state rebate shall enter into an agreement with the Comptroller to pay the state annually a certain sum of sales and use taxes and mixed beverage taxes. (e) Provides that a professional sports team located in a municipality that relocates within the same municipality to a newly constructed project and that receives a state rebate shall enter into an agreement with the Comptroller to pay the state annually a certain sum of sales and use taxes and mixed beverage taxes collected in its last full fiscal year at its formal location. (f) Upon certification by the sports authority to the comptroller that the authority has or intends to issue bonds or other obligation for a qualified project, that each local government that created the authority has agreed to rebate, refund, or pay to the authority eligible tax proceeds and any incremental increase in tax proceeds in accordance with Section 2303.604, Government Code, and that the bonds or other obligations have been approved by the Texas Public Finance Authority, the comptroller shall notify the state treasurer of the certification and the state treasurer shall establish a special fund outside the state treasury for that authority. The comptroller shall compute the aggregate amount of revenue from all taxes to which the authority is entitled under Subsection (a) for the preceding fiscal quarter and than deposit this amount to the credit of the special fund before any other allocation of the taxes collected under Chapter 151. The comptroller shall do this by the last day of the month following a calendar quarter. (g) Subject to Subsection (h), the authority shall administer the special fund. The authority is the trustee of the fund's assets and may segregate contributions and payments to the fund into various account and may manage the investments of the fund. (h) Provides that the state treasurer is the custodian of the assets of the fund. The treasurer shall pay money from the fund on a warrant drawn from the comptroller and supported by a voucher signed by the authority or its designated representative. (h) Defines "incremental increase," and "base year." SECTION 3. Amends Section 311.002, Tax Code, by adding Subdivisions (5) and (6), to define "qualified sports facility project," "sports authority," "sports facility enterprise zone," "eligible tax proceeds," and "incremental increase in tax proceeds." SECTION 4. Amends Section 311.005(a), Tax Code, to require an area, among other qualifications, to be an area that a local government determines should be designated as a zone under Chapter 2303H, Government Code, to be designated as a reinvestment zone. SECTION 5. Amends Section 311.015, Tax Code, by adding Subsections (m), (n), and (o). (m) requires tax increment bonds or notes issued to finance a project to mature by the 30th anniversary after the date of issuance. Authorizes a local government to pledge eligible tax proceeds and incremental tax proceeds to pay bonds or notes issued to pay the costs of a project under terms the local government considers appropriate. (n) Provides that notwithstanding any other provision of this section, a local government proposing to issue tax increment bonds or notes to construct, remodel, repair, or improve a qualified project may call an election for the purpose of the voters of the local government to approve the issuance of the tax increment bonds or notes. (o) The captured appraisal value of a taxing unit shall be excluded from the current total value, as defined by Section 26.012, of the taxing unit for the purpose of the calculation of the rollback tax rate under Chapter 26. SECTION 6. Amends Chapter 311, Tax Code, by adding Section 311.0032, as follows: Sec. 311.0032. SPORTS FACILITY ENTERPRISE ZONE. (a) Authorizes a local government to designate an area as a zone in the ordinance or order designating that area as a reinvestment zone. (b) Prohibits a local government from designating an area as a zone unless the zone contains or will contain a project; and the local government agrees to rebate, refund, or pay to the authority that owns, proposes to own, or is assisting a county, municipality, or other political subdivision in rehabilitating or remodelling the project eligible tax proceeds and incremental increase in tax proceeds. (c) Requires the local government to agree to provide the rebate, refunding, or payment for the period during which the authority receives funding. SECTION 7. Amends Section 4A, Article 1528l, V.T.C.S. (Texas Transportation Corporation Act), by amending Subsections (a)-(c), (e), and (f), and adding Subsection (j), as follows: (a) Authorizes a local government corporation to be created to aid, act on behalf of one or more local governments to accomplish any governmental purpose, including a project or activity permitted by its articles of incorporation. Provides that the State Highway and Public Transportation Commission (commission) approval is not required for the articles of incorporation, articles of dissolution, or bylaws of a local government corporation. Provides that a member of the board of directors of a corporation is required to be a resident of a local government creating the corporation. (b) Requires a local government corporation to have all the powers, including those of a corporation approved for creation by the commission to accomplish any purpose for which the corporation was created as prescribed by its articles of incorporation; and an industrial development corporation created under Section 4B, Article 5190.6, V.T.C.S. (Development Corporation Act of 1979), and may perform certain acts. (c) Makes a conforming change. (e) Requires the commission, state agencies, local governments, road districts, road utility districts, and other political subdivisions to have the power to implement an authorized project or activity of the local government corporation, if it is also an authorized purpose of the contracting commission, state agency, road district, road utility district, or other political subdivision, among other powers. Provides that a local government has authority to implement an authorized project or activity of the corporation. (f) Requires the corporation, its property, and any transaction in which the property is acquired, to have the same tax exemption as a corporation created pursuant to Chapter 394, Local Government Code, or Section 4B, Article 51.90.6, V.T.C.S., including exemption from paying a sales and use tax. (j) Authorizes a municipality to create a local government corporation that is an authority. Requires the articles of incorporation of an authority to provide that an authority have a seven-member board with two members appointed by the lieutenant governor and two appointed by the comptroller. Sets forth the terms of the directors. Requires an authority to make an effort to provide that at least 30 percent of the construction, procurement, and service contracts for the project and any business operating in the facility are with minority- or women-owned enterprises. SECTION 8. Amends Chapter 302, Tax Code, by adding Subchapter C, as follows: SUBCHAPTER C. SPORTS FACILITY ENTERPRISE ZONE EXCISE TAX Sec. 302.201. DEFINITIONS. Defines "admissions tax," "event parking tax," "qualified sports facility project," "sports authority," "sports facility," and "sports facility enterprise zone." Sec. 302.202. EVENT PARKING TAX. (a) Authorizes a municipality, by ordinance, to impose a tax on each motor vehicle (vehicle) parking in a parking facility located within 2500 feet of a sports facility zone. Prohibits the municipality from imposing a tax in certain areas or for certain events. (b) Authorizes the municipality to impose the tax during a period beginning not more than two hours before and ending not more than two hours after the time an event in a project is scheduled to begin. Prohibits the municipality from imposing the tax during any other time. (c) Authorizes the municipality, by ordinance, to provide that the tax is imposed at a flat amount on each parked vehicle or as a percentage of the amount charged for event parking by the owner of the parking facility. Prohibits the amount of tax from exceeding $2.50 per vehicle. Authorizes the municipality, by ordinance, to repeal or increase or decrease the rate of tax. (d) Authorizes the municipality, by ordinance, to require the owner of a parking facility to collect the tax for the benefit of the municipality. Requires the owner required to collect the tax to add the tax to the parking charge. Provides that the tax is a part of the parking charge, debt owed to the parking facility owner by the person parking, and recoverable at law in the same manner as the parking charge. Provides that the tax is not an occupation tax imposed on the owner of the parking facility. Sec. 302.203. ADMISSION TAX. (a) Authorizes a municipality, by ordinance, to impose a tax on each person admitted to an event at a project. Prohibits the municipality from imposing the tax for admission to an event at a facility that is not a project. (b) Authorizes the municipality, by ordinance, to provide that the tax is imposed at a flat amount on each person admitted or as a percentage of the amount charged for admission. Prohibits the amount of tax from exceeding two dollars per person, regardless of the method of imposition. Authorizes the municipality, by ordinance, to repeal, increase, or decrease the tax. (c) Authorizes the municipality, by ordinance, to require the owner of a project to collect the tax for the municipality. Requires an owner required to collect the tax to add the tax to the admission price. Provides that the tax is part of the admission price, a debt owed to the project owner by the person admitted, and recoverable at law in the same manner as the admission charge. Provides that the tax is not an occupation tax imposed on the owner of the project. Sec. 302.204. EFFECTIVE DATE AND ENDING DATE OF TAX. (a) Provides that a tax takes imposed under this subchapter takes effect on the date prescribed by the ordinance imposing the tax. (b) Authorizes a municipality to impose a tax only if the municipality or the authority issues bonds under Section 302.207. Authorizes the municipality to impose the tax only while the municipality's or authority's bonds issued to pay the costs of constructing, remodeling, or rehabilitating a project are outstanding and unpaid. Sec. 302.205. COLLECTION OF TAX. (a) Requires a person required to collect a tax to report and send the taxes to the municipality as provided by the municipality imposing the tax. (b) Authorizes the municipality, by ordinance, to prescribe penalties for failure to keep records required by the municipality, to report when required, or to pay the tax when due. Authorizing the municipality's attorney to bring suit against a person who fails to collect the tax and to pay it over to the municipality as required. (c) Authorizes the municipality, by ordinance, to permit a person who is required to collect a tax to retain a percentage of the collected amount to be reported as reimbursement for the costs of collection. Authorizes the municipality to provide that the person may retain the amount only if the person complies with the municipality's requirements. Sec. 302.206. USE OF TAX REVENUE. Authorizes revenue from a tax to be used only to acquire sites for and acquire, improve, rehabilitate, remodel, enlarge, equip, or repair a project. Sec. 302.207. PLEDGE FOR BONDS. Requires the municipality to pledge the revenue derived from a tax for the payment of any bonds issued for certain purposes by the municipality or the authority. SECTION 9. Notwithstanding any provisions to the contrary, this act does not apply to a sports facility owned by a county with a population of 2 million or more that was constructed before September 1, 1995. SECTION 10. Provides that an enactment of the 74th Legislature that imposes a restriction or limitation on a rebate, refund, or payment of state or local taxes to an enterprise zone or qualified project does not apply to a zone or project created under this Act. SECTION 11. Effective date: September 1, 1995. SECTION 12. Emergency clause. COMPARISON OF ORIGINAL TO SUBSTITUTE (1) SECTION 1. In CSSB 1346, Section 2303.601(2), the definition of "Qualified sports facility project" is amended by replacing the words "receives or will receive" with "is qualified to receive" with regard to tax rebates authorized by the bill (pg. 1, line 14). (2) SECTION 1. In CSSB 1346, Section 2303.601(4), the definition of "Sports facility" is amended by (i) replacing "Triple A minor league baseball games or events" with "minor league baseball games or events;" (ii) adding NASCAR or Indy Car sanctioned events to the authorized uses of a sports facility; (iii) adding training facilities to the type of facilities included in the definition; (iv) replacing "related parking facility" with "parking facility associated with the arena, coliseum, stadium or speedway;" and (v) adding the phrase "but only if any part of the facility is located within a radius of 1,000 feet from the center point of the arena, coliseum, stadium, or speedway" to describe the training, administrative, service, concession and parking facilities included within the definition. (pg. 2, lines 3-10) (3) SECTION 1. In CSSB 1346, Section 2303.601(5), the definition of "Sports facility enterprise zone" is amended by (i) breaking the definition down into subsections; (ii) deleting "or will include;" (iii) deleting the phrase "within a one and on-quarter mile radius of the sports facility" to describe a qualified sports facility project included in the definition; (iv) adding to the definition "an area that includes a sports facility for which designation as a qualified sports facility will be requested;" and (v) adding the phrase "no part of which is located farther than two miles from the center ont of the sports facility" thereby prohibiting a zone from including any area not within a two-mile radius of a sports facility. (pg. 2, lines 11-18). (4) SECTION 1. In CSSB 1346, Section 2303.602(b), is amended by replacing "the area is designated as a sports facility enterprise zone without further hearing or procedural requirements" with "the area is a sports facility enterprise zone without further hearing or procedural requirements" (pg. 2, line 27) and adding the phrase "for local benefits" after "enterprise zone." (pg. 3, line 1). (5) SECTION 1. In CSSB 1346, Section 2303.602(c) is amended by deleting entirely Subsection (2). (6) SECTION 1. In CSSB 1346, Section 2303.602(d) is replaced with new Subsection (d) which provides that the designation of a sports facility enterprise zone under this subchapter does not reduce the number of enterprise zones the department may otherwise designate under this chapter. The requirement of a legislative fiscal note is entirely deleted. (pg. 4, lines 11-13). (7) SECTION 1. In CSSB 1346, Section 2303.602(e) is deleted entirely. (8) SECTION 1. In CSSB 1346, Section 2303.603(c) is amended by replacing the phrase "under the provisions of this subchapter, Chapter 311, Tax Code, and Section 111.110, Tax Code" with "under the provisions of this subchapter and Chapter 311, Tax Code, and the benefits under Section 111.110, Tax Code." (pg. 3, lines 26-27). (9) SECTION 1. In CSSB 1346, Section 2303.603(e), is amended by (i) deleting the phrase "Notwithstanding any other provision of the law;" (ii) replacing "a total of six qualified sports facility projects" with "10 qualified sports facility projects;" (iii) adding the phrase "to receive state benefits under Section 111.110, Tax Code;" (iv) replacing "of which five must be for facilities used for" with "of which six must be for facilities that are used for" thereby authorizing the creation of a total of 10 projects eligible to receive a state rebate six of which must be used for professional sports team events, and by adding events by "a New York Stock Exchange listed company for NASCAR or Indy Car sanctioned events" to the events eligible for one of the six professional sport event projects. (pg. 4, lines 19-25). (10) SECTION 1. In CSSB 1346, Section 2303.603, is amended by adding a new Subsection (f) which provides that the four projects not designated in Subsection (e) for specified leagues, associations, or events shall be awarded to sports authorities for projects that the department determines will have the largest new positive economic impact to this state and sets forth the criteria to determine the economic impact. No similar provision exists in the Senate Engrossment of SB 1346. (11) SECTION 1. In CSSB 1346, Section 2303.604, is amended by adding the word "LOCAL" to the heading immediately preceding "TAX PROCEEDS" (pg. 5, line 17). (12) SECTION 1. In CSSB 1346, Section 2303.604 (c) and (f) are amended by adding the following parenthetical phrase after each "hotel occupancy taxes": "(except the hotel occupancy tax authorized by Section 351.1065, Tax Code, or the hotel occupancy tax pledged to obligation issued or to be issued under Article 1269j-4.1)." (pg. 6, lines 4, 20, and 23). (13) SECTION 1. In CSSB 1346, Section 2303.604(f)(3), the definition of "Adjustment for normal economic growth" is a amended by replacing "has the meaning assigned by Section 111.110, Tax Code" with another definition involving the ratio of person income for the year in which the increment is computed to the income in the base year. (pg. 7, lines 7-12). (14) SECTION 1. In CSSB 1346, Section 2303.605, the heading is amended by adding "RELOCATION OF TEAM." (15) SECTION 1. In CSSB 1346, Section 2303.605(b) is amended by replacing "the most populous" with "such" in two places and deleting "in the county in which the sports facility is located." (pg. 7, lines 24-26). (16) SECTION 1. In CSSB 1346, Section 2303.605, new Subsection (c) is added to authorize an election called under Section 2303.605 or Section 311.015, Tax Code, to be held on any date. No similar provision exists in the Senate Engrossed SB 1346. (17) SECTION 1. In CSSB 1346, Section 2303.605, new Subsection (d) is added to provide the circumstances in which a professional sports team may contract to relocate in a project in another local government. No similar provision exists in the Senate Engrossed SB 1346. (18) SECTION 2. In CSSB 1346, Section 111.110, Tax Code, heading is amended to include "RELOCATION OF TEAM." (pg. 9, line 2). (19) SECTION 2. In CSSB 1346, Section 111.110(a), Tax Code, is amended by replacing (i) "owns or is assisting a municipality" with "on its own or in conjunction with a municipality;" (ii) replacing "in rehabilitating or remodeling" with "constructing, rehabilitating, or remodeling;" and (iii) "shall receive from the state" with "is entitle to receive from the state." (pg. 9, line 3-6). (20) SECTION 2. In CSSB 1346, Section 111.110 (a), Tax Code, is amending by replacing Subsection (1) and (2) with new versions which authorize the rebate, refund, or payments of the incremental increase in tax proceeds from sales and use taxes and mixed beverage taxes collected at any outlet or location in the sports facility and mixed beverage tax, hotel occupancy tax, and sales and use tax on food service at restaurants collected by any person operating a business at a location in the sports facility enterprise zone but outside the sports facility. Previous provision relating to rebate of 80% of certain state sales and use taxes and mixed beverage taxes are deleted entirely. (pg. 9) (21) SECTION 2. In CSSB 1346, Section 111.110 (3), Tax Code, is deleted. (22) SECTION 2. In CSSB 1346, Section 111.110 (b), Tax Code, is replaced with a new Subsection (b) which provides that Subsection (a) does not affect the liability of any person to the state for taxes collected. No similar provision exists in the Senate Engrossed version of SB 1346. (23) SECTION 2. In CSSB 1346, Section 111.110 (c), Tax Code, prior Subsection (b) and Subsection (c) are restructured as new Subsection (c) which provides the terms, conditions, and requirements to be met in order for a sports authority to be entitled to receive a state rebate. No additional term, conditions, or requirements are imposed. (24) SECTION 2. In CSSB 1346, Section 111.110,, Tax Code, new Subsection (d) is added to provide that a professional sports team or a lessee of a NASCAR or Indy Car sports facility that operates or contracts to locate or operate after January 1, 1995 in a qualified sports facility project that receives a state rebate shall enter into an agreement with the Comptroller to pay the state annually a certain sum of sales and use taxes and mixed beverage taxes. No similar provision exists in the Senate Engrossed version of SB 1346. (25) SECTION 2. In CSSB 1346, Section 111.110, Tax Code, new Subsection (e) is added to provide that a professional sports team located in a municipality that relocates within the same municipality to a newly constructed qualified sports facility project and that receives a state rebate shall enter into an agreement with the Comptroller to pay the state annually a certain sum of sales and use taxes and mixed beverage taxes collected in its last full fiscal year at its former location. No similar provision exists in the Senate Engrossed version of SB 1346. (26) SECTION 2. In CSSB 1346, Section 111.110, Tax Code, old Subsection (d) becomes Subsection (f) and is amended as follows: (i) language is added to require the sports authority to certify to the comptroller that bonds or other obligations have been approved by the Texas Public Finance Authority before state rebate funds are deposited for the authority (pg. 12 lines 5-6), and (ii) the following language is deleted "The Comptroller shall deposit to the credit of the fund the money to which the sports authority is entitled under Subsections (a)(1) and (a)(2). In addition," (pg. 12, lines 9-11). (27) SECTION 2. In CSSB 1346, Section 111.110, Tax Code, old Subsection (e) becomes Subsection (g) without amendment. (28) SECTION 2. In CSSB 1346, Section 111.110, Tax Code, old Subsection (f) becomes (h) without amendment. (29) SECTION 2. In CSSB 1346, Section 111.110, Tax Code, old Subsection (g) is deleted entirely. (30) SECTION 2. In CSSB 1346, Section 111.110, Tax Code, old Subsection (h) is deleted entirely. (31) SECTION 2. In CSSB 1346, Section 111.110 (i), Tax Code, is amended to revise the definition of "Incremental increase in tax proceeds" as follows: (i) replacing "sales and use taxes or mixed beverage taxes" with "taxes" (pg. 13, line 9); (ii) deleting the phrase "or paid under a permit issued under Section 151.418, in a state fiscal year by outlets of permit holder operating in a sports facility enterprise zone, other than those outlet located at the sports facility project, that, after adjustment," after the both words "collected" in Line 9. (32) SECTION 2. In CSSB 1346, Section 111.110 (i), Tax Code, Subsection (3) defining "Permit holder" is deleted entirely. (33) SECTION 2. In CSSB 1346, Section 111.110, Tax Code, Subsection (4) defining "Adjusted for normal economic growth" is deleted entirely. (34) SECTION 4. In CSSB 1346, Section 311.005(a), Tax Code, old Subsection (5) becomes new Subsection (4) and old Subsection (4) becomes Subsection (5). (35) SECTION 5. In CSSB 1346, Section 311.015, Tax Code is amended by addition new Subsection (o) which provides that the captured appraisal value of a taxing unit shall be excluded from the current total value, as that term is defined by Section 26,012, Tax Code, of the taxing unit for the purpose of the calculation of rollback tax rate under Chapter 26, Tax Code. No similar provision exists in Senate Engrossed SB 1346. SUMMARY OF COMMITTEE ACTION SB 1346 was considered by the Committee on State Affairs in a formal meeting on May 15, 1995. The Chair laid out SB 1346. The committee considered a complete substitute for the bill. Three amendments were offered to the substitute. Three of those amendments were adopted without objection. The substitute, as amended, was adopted without objection. The chair directed the staff to incorporate the amendments into the substitute. The bill was reported favorably as substituted, with the recommendation that it do pass and be printed, by a record vote of: 15 ayes; 0 nays; 0 pnv; and 0 absent.