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.