By Seidlits, Marchant H.B. No. 2983
74R7866 T
A BILL TO BE ENTITLED
1-1 AN ACT
1-2 relating to sports facilities.
1-3 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
1-4 SECTION 1. Section 2303.003, Texas Enterprise Zone Act
1-5 (Section 2303, Government Code) is amended by amending Subdivision
1-6 (3) to read as follows:
1-7 (3) "Enterprise zone" means an area designated as an
1-8 enterprise zone under this chapter including a sports facility
1-9 enterprise zone.
1-10 SECTION 2. Section 2303.003, Texas Enterprise Zone Act
1-11 (Section 2303, Government Code) is amended by adding the following
1-12 new Subdivisions (8), (9), (10), (11), (12), (13) and (14):
1-13 (8) "Qualified hotel project" means a hotel proposed
1-14 to be constructed by a municipality or a nonprofit municipally
1-15 sponsored local government corporation created pursuant to Section
1-16 4A of Article 1528l, Vernon's Texas Civil Statutes, that is within
1-17 1,000 feet of a convention center owned by a municipality of
1-18 1,500,000 or more, including all facilities ancillary thereto such
1-19 as shops and parking facilities.
1-20 (9) "Qualified sports facility project" means a sports
1-21 facility which is proposed to be constructed, remodeled or
1-22 rehabilitated by a municipality or by an industrial development
1-23 corporation created by a municipality pursuant to the provisions of
1-24 Section 4B of the Development Corporation Act of 1979 (Article
2-1 5190.6, Vernon's Texas Civil Statutes).
2-2 (10) "Sports facility" means an arena, coliseum,
2-3 stadium, or speedway, or any combination thereof, and concession
2-4 and parking facilities ancillary thereto used or proposed to be
2-5 used for professional sporting games or events or for olympic or
2-6 international games or events.
2-7 (11) "Eligible taxable proceeds" means taxable
2-8 proceeds generated, paid, or collected (a) by the owner of a
2-9 qualified hotel project or a qualified sports facility project or
2-10 by a business at a qualified hotel project or a qualified sports
2-11 facility project, or (b) from the incremental increase of taxable
2-12 proceeds collected from businesses within a sports facility
2-13 enterprise zone.
2-14 (12) Taxable proceeds <including> includes hotel
2-15 occupancy taxes, ad valorem, sales and use taxes, and mixed
2-16 beverage taxes.
2-17 (13) Incremental increases in taxable proceeds is the
2-18 amount by which the taxable proceeds (consisting of sales and use
2-19 taxes, hotel occupancy taxes and mixed beverage taxes) collected by
2-20 the state, a municipality, a county or other political subdivision
2-21 from businesses within a sports facility enterprise zone in a
2-22 fiscal year of any such entity exceeds the amount of such taxable
2-23 proceeds collected by such entity from businesses within the zone
2-24 during the last fiscal year before the zone was created.
2-25 (14) "Sports facility enterprise zone" is an area
2-26 designated by a municipality as a reinvestment zone pursuant to the
2-27 provisions of the Tax Incremental Financing Act (Chapter 311, Tax
3-1 Code) which is designated by the municipality as a sports facility
3-2 enterprise zone that is entitled to the benefits of this Act. To
3-3 be eligible to be designated as a sports facility enterprise zone a
3-4 municipality must agree: (a) to use all taxable proceeds collected
3-5 from the qualified sports facility project and from businesses
3-6 within such project and the incremental increase in taxable
3-7 proceeds collected from businesses within the sports facility
3-8 enterprise zone to pay the principal and interest on the tax
3-9 incremental bonds or other obligations of the municipality issued
3-10 or incurred by the municipality to pay the cost of constructing,
3-11 remodeling or rehabilitating the qualified sports facility project,
3-12 or (b) enter into an agreement with an industrial development
3-13 corporation which owns the qualified sports facility project to
3-14 rebate, refund or pay the eligible taxable proceeds collected by
3-15 the municipality from the qualified sports facility project or from
3-16 businesses within such project and the incremental increase in
3-17 taxable proceeds collected from businesses within the sports
3-18 facility enterprise zone. The agreement must be for the longer of
3-19 (i) the term of the bonds or other obligations of the municipality
3-20 or industrial development corporation issued or incurred to pay the
3-21 cost of constructing, remodeling or rehabilitating the qualified
3-22 sports facility project or (ii) for the term the state will rebate
3-23 sales and use taxes and mixed beverage taxes pursuant to the
3-24 provisions of Section 151.429, Tax Code.
3-25 SECTION 3. Section 2303.401, Texas Enterprise Zone Act
3-26 (Chapter 2303, Government Code) is amended to read as follows:
3-27 Sec. 2303.401. Qualified Business. (a) A person is a
4-1 qualified business if the department, for the purpose of state
4-2 benefits under this chapter, or the governing body of an enterprise
4-3 zone, for the purpose of local benefits, certifies that:
4-4 (1) the person is engaged in or has provided
4-5 substantial commitment to initiate the active conduct of a trade or
4-6 business in the enterprise zone; and
4-7 (2) at least 25 percent of the person's new employees
4-8 in the enterprise zone are:
4-9 (A) residents of any enterprise zone in the
4-10 jurisdiction of the governing body of the enterprise zone; or
4-11 (B) economically disadvantaged individuals; or
4-12 (C) a builder that has demonstrated:
4-13 proficiency in residential construction in the state by
4-14 providing five satisfactory homeowner references for properties
4-15 constructed by the builder in the preceding three years that
4-16 include the name of the property and the builder of the property,
4-17 together with copies of inspection reports performed by
4-18 code-certified residential inspectors or municipal inspectors on
4-19 the residences, or other satisfactory evidence;
4-20 financial stability by providing bank references, financial
4-21 compilations, and copies of two years of tax returns, or other
4-22 satisfactory evidence; and
4-23 participation in a 10-year insured warranty program; or
4-24 (b) a qualified hotel project that is owned by a
4-25 municipality with a population of 1,500,000 or more or a nonprofit
4-26 corporation sponsored local government corporation created pursuant
4-27 to Section 4A of Article 1528l, Vernon's Texas Civil Statutes; or
5-1 (c) a qualified sports facility project that is owned by a
5-2 municipality or by an industrial development corporation created by
5-3 a municipality pursuant to the provisions of Section 4B of the
5-4 Development Corporation Act of 1979 (Article 5190.6, Vernon's Texas
5-5 Civil Statutes).
5-6 SECTION 4. Section 2303.506, Texas Enterprise Zone Act,
5-7 (Chapter 2303, Government Code) is amended to read as follows:
5-8 Sec. 2303.506. Reduction or Elimination of Local Fees or
5-9 Taxes. (a) To promote the public health, safety, or welfare, the
5-10 governing body of a municipality or county may establish a program
5-11 by which it reduces or eliminates any fees or taxes that it imposes
5-12 on a qualified business or qualified employee. The reduction of
5-13 sales and use taxes are controlled by the provisions of Section
5-14 2303.505 and subsection (b) of this Section.
5-15 (b) A municipality, county, other political subdivision, or
5-16 other governmental body may enter into an agreement to rebate,
5-17 refund, or pay eligible taxable proceeds to the owner of a
5-18 qualified hotel project or a qualified sports facility project at
5-19 which such eligible taxable proceeds were generated or collected or
5-20 (with respect to a qualified sports facility project) the
5-21 incremental increase in eligible taxable proceeds collected from
5-22 businesses within the sports facility enterprise zone within which
5-23 the project is located for the period of time set forth in the
5-24 agreement. Notwithstanding any provision to the contrary, a
5-25 municipality with a population of 1,500,000 or more may enter into
5-26 an agreement to guarantee from hotel occupancy taxes the bonds or
5-27 other obligations of a municipality sponsored local government
6-1 corporation created pursuant to the provisions of Section 4A of
6-2 Article 1528l, Vernon's Texas Civil Statutes that were issued or
6-3 incurred to pay the cost of constructing, remodeling, or
6-4 rehabilitating a qualified hotel project. A municipality may enter
6-5 into an agreement to guarantee from hotel occupancy taxes or sales
6-6 and use taxes the bonds or other obligations of an industrial
6-7 development corporation created pursuant to the provisions of
6-8 Section 4B of the Development Corporation Act of 1979 (Article
6-9 5190.6 Vernon's Texas Civil Statutes) that were issued or incurred
6-10 to pay the cost of constructing, remodeling, or rehabilitating a
6-11 qualified sports facility project. Any agreement must be in
6-12 writing, contain an expiration date, and require the beneficiary to
6-13 provide documentation necessary to support a claim. The
6-14 municipality, county, political subdivision, or other governmental
6-15 body that enters into any <such> rebate agreement shall make the
6-16 rebate, refund, or payment directly to the beneficiary set forth in
6-17 the agreement if it so provides.
6-18 SECTION 5. Section 2303.404 of The Texas Enterprise Zone Act
6-19 (Chapter 2303, Government Code) is amended to read as follows:
6-20 Sec. 2303.404. DESIGNATION OF A QUALIFIED HOTEL PROJECT AND
6-21 QUALIFIED SPORTS FACILITY PROJECT AS ENTERPRISES PROJECT. (a) A
6-22 qualified hotel project or a qualified sports facility project may
6-23 be designated prior to or after August 31, 1993. New permanent
6-24 jobs created by the qualified hotel project or the qualified sports
6-25 facility project shall not be considered in determining the number
6-26 of enterprise projects that the department may approve pursuant to
6-27 the other provisions of this Act.
7-1 (b) A qualified hotel project and a qualified sports
7-2 facility project shall be deemed to have met the criteria of a
7-3 qualified business and an enterprise project, and the enterprise
7-4 zone in which the qualified hotel project or the qualified sports
7-5 facility project is located shall be deemed to have met all
7-6 qualifications of this Act to permit the department to designate
7-7 the qualified hotel project or the qualified sports facility
7-8 project as an enterprise project.
7-9 SECTION 6. Section 151.429(e), Tax Code, is amended to read
7-10 as follows:
7-11 (e) In this section, "enterprise project," "enterprise
7-12 zone," "qualified hotel project," "sports facility", "qualified
7-13 sports facility project", "taxable proceeds", "eligible taxable
7-14 proceeds", "incremental increase in taxable proceeds", sports
7-15 facility enterprise zone", "permanent job", and "qualified
7-16 employee" have the meanings assigned by the Texas Enterprise Zone
7-17 Act (Chapter 2303, Government Code).
7-18 SECTION 7. Section 151.429, Tax Code, is amended by making
7-19 the following amendment to subsection (h) and by adding the
7-20 following subsections (i) and (j):
7-21 (h) Notwithstanding the other provisions of this section,
7-22 the owner of a qualified hotel project shall receive a rebate,
7-23 refund, or payment of 100 percent of the sales and use taxes paid
7-24 or collected pursuant to this chapter by the qualified hotel
7-25 project or by a business located in the qualified hotel project and
7-26 100 percent of the hotel occupancy taxes paid by persons for the
7-27 use or possession of or for the right to use or possession of a
8-1 room or space at the qualified hotel project pursuant to the
8-2 provisions of Chapter 156 during the first 10 <7> years after such
8-3 qualified hotel project is open for initial occupancy or use.
8-4 (i) Notwithstanding the other provisions of this Section the
8-5 owner of a qualified sports facility project shall receive (i) a
8-6 rebate, refund or payment of 100 percent of the sales and use tax
8-7 and mixed beverage tax paid or collected pursuant to this chapter
8-8 and chapter 183 by the qualified sports facility project or from
8-9 businesses operating in such project during the first 10 years
8-10 after such qualified sports facility project is open for initial
8-11 occupancy or use (or in the case of a remodeled or rehabilitated
8-12 project during the first 10 years after the remodeling or
8-13 rehabilitation commenced, and (ii) a rebate, refund or payment of
8-14 100 percent of the state's incremental increase in taxable proceeds
8-15 collected from businesses operating within the sports facility
8-16 enterprise zone (if any) in which the qualified sports facility
8-17 project may be located. In lieu of a foregoing rebate for 10
8-18 years, the owner of a qualified sports facility project may request
8-19 and receive (i) a rebate, refund or payment of ( ) percent of
8-20 the sales and use taxes and mixed beverage taxes collected by the
8-21 owner of the qualified sports facility project or by a business
8-22 operating within the qualified sports facility project and (ii) ( )
8-23 percent of the state's incremental increase in taxable proceeds
8-24 collected from businesses operating within the sports facility
8-25 enterprise zone (if any) in which the qualified sports facility
8-26 project may be located for the term of the bonds or other
8-27 obligations issued or incurred by the owner of the qualified sports
9-1 facility project to construct, remodel or rehabilitate the
9-2 qualified sports facility project. To be eligible to receive a
9-3 rebate, refund, or payment from the state pursuant to this
9-4 subsection an industrial development corporation must have two of
9-5 the members of its board of directors appointed by the lieutenant
9-6 governor and two of its board members appointed by the comptroller.
9-7 (j) An owner of a qualified sports facility project which is
9-8 an industrial development corporation shall not be entitled to a
9-9 state rebate, refund or payment pursuant to subsection (i) of the
9-10 Section unless the municipality in which a qualified sports
9-11 facility project is located agrees to rebate, refund or pay to the
9-12 industrial development corporation which owns the project all of
9-13 the eligible taxable proceeds collected by the municipality at the
9-14 project and all of the incremental increase in taxable proceeds
9-15 collected by the municipality from businesses operating within a
9-16 sports facility enterprise zone (if any) which includes the project
9-17 for a term at least as long as the state's obligation to make
9-18 rebates, refunds, or payments pursuant to subsection (i). An owner
9-19 of a qualified sports facility project which is a municipality
9-20 shall not be entitled to a rebate, refund or payment pursuant to
9-21 subsection (i) unless the municipality agrees to commit all
9-22 eligible taxable proceeds collected at the project and all of the
9-23 municipality's incremental increase in taxable proceeds collected
9-24 from businesses operating within a sports facility enterprise zone
9-25 (if any) to the payment of its bonds or other obligations issued to
9-26 construct, remodel, or rehabilitate the qualified sports facility
9-27 project for at least as long as the state is obligated to make
10-1 rebates, refunds, or payments pursuant to subsection (i).
10-2 SECTION 8. The Industrial Development Corporation Act of
10-3 1979 (Article 5190.6, Vernon's Texas Civil Statutes) is amended by
10-4 adding the following new subsection (n) to Section 4B:
10-5 (n) The articles of incorporation may permit the lieutenant
10-6 governor to appoint two of the seven board members and the
10-7 comptroller of public accounts to appoint two members of the board.
10-8 SECTION 9. The Tax Incremental Financing Act (Chapter 311,
10-9 Tax Code) is amended by adding the following new subsection (m) to
10-10 Section 311.015:
10-11 (m) A tax incremental bond or note issued to finance a
10-12 qualified sports facility project as defined in Section 2303, Texas
10-13 Enterprise Zone Act (Chapter 2303, Government Code) must mature
10-14 within 30 years of the date of issue. A municipality may pledge
10-15 eligible taxable proceeds and the incremental increase in taxable
10-16 proceeds, as defined in Chapter 2303, Texas Enterprise Zone Act, to
10-17 the payment of bonds or notes issued to pay the cost of a qualified
10-18 sports facility project on such terms and conditions as the
10-19 municipality deems appropriate.
10-20 SECTION 10. The Tax Incremental Financing Act (Chapter 311,
10-21 Tax Code) is amended by adding the following new paragraph (6) to
10-22 subsection (a) of Section 311.005:
10-23 (6) be an area which the municipality determines
10-24 should be designated as a sports facility enterprise zone as
10-25 defined in Chapter 2303, Texas Enterprise Zone Act (Chapter 2303,
10-26 Government Code).
10-27 SECTION 11. The Tax Code is amended by adding the following
11-1 new Subchapter C to Chapter 302:
11-2 Subchapter C. Sports Facility Enterprise Zone Excise Taxes
11-3 Sec. 302.201. DEFINITIONS. (a) "Qualified Sports Facility
11-4 Project", "Sports Facility", and "Sports Facility Enterprise Zone"
11-5 shall have the meanings assigned by Chapter 2303, Texas Enterprise
11-6 Zone Act (Chapter 2303 Government Code).
11-7 (b) "Event Parking Tax" means the tax which a municipality
11-8 is authorized by Section 302.202 to levy in a sports facility
11-9 enterprise zone and within the 1500 foot area adjacent to the zone
11-10 on motor vehicles parking in a sports facility enterprise zone
11-11 during the period beginning not more than two hours and ending not
11-12 later than two hours from the expected time an event is to commence
11-13 in a qualified sports facility project.
11-14 (c) "Admissions tax" means the tax which a municipality is
11-15 authorized to levy by Section 302.203 on persons attending an event
11-16 in a qualified sports facility project.
11-17 Sec. 302.202. PARKING TAX AUTHORIZED. (a) A municipality
11-18 may by ordinance levy or impose a tax on motor vehicles parking in
11-19 a sports facility enterprise zone or within the 1500 foot area
11-20 adjacent to the sports facility enterprise zone during the period
11-21 beginning not more than two hours and ending not later than two
11-22 hours from the expected time an event is to commence in a qualified
11-23 sports facility project. The municipality may not levy a parking
11-24 tax during any other period.
11-25 (b) The parking tax may not exceed $2.50 per motor vehicle.
11-26 The municipality may levy the tax on an equal charge per motor
11-27 vehicle parked or may provide that the parking tax will be a
12-1 percentage of the amount charged for event parking by the owner of
12-2 the parking facility.
12-3 (c) The parking tax is levied on the operator of the motor
12-4 vehicle parking the motor vehicle and not on the owner of the
12-5 parking facility. The parking tax shall not be an occupation tax
12-6 on the owner of the parking facility.
12-7 (d) A municipality may not levy a parking tax on any area
12-8 around a sports facility that presently exists unless the area
12-9 surrounding that sports facility is designated as a sports facility
12-10 enterprise zone, pursuant to the provisions of the act, and the
12-11 existing sports facility becomes a qualified sports facility
12-12 project in the manner prescribed by this act.
12-13 Sec. 302.203. ADMISSIONS TAX AUTHORIZED. (a) A
12-14 municipality may by ordinance impose or levy a tax on a person
12-15 being admitted to an event in a qualified sports facility project.
12-16 The admissions tax authorized by this section shall not exceed $2
12-17 per person admitted. The admissions tax may be based on a flat
12-18 charge per admission or may be based on a percentage of the price
12-19 of a ticket for admission to the event; however, no tax may exceed
12-20 $2 per person admitted to the event.
12-21 (b) The admissions tax authorized by this section shall be a
12-22 tax on the person admitted to an event in a qualified sports
12-23 facility project and shall not be a tax on the owner of the
12-24 qualified sports facility project. It shall not be an occupation
12-25 tax on the owner of the qualified sports facility project.
12-26 (c) A municipality may not levy a tax on the admission of a
12-27 person to a sports facility that is not a qualified sports facility
13-1 project, or any other type of theater, auditorium, or similar type
13-2 of facility that is not a qualified sports facility project.
13-3 Sec. 302.204. EFFECTIVE DATE. Any tax imposed under this
13-4 chapter shall become effective on the date prescribed in the
13-5 ordinance imposing or levying the tax.
13-6 Sec. 302.205. USE OF TAX REVENUES. Revenues from the
13-7 municipal parking tax and the municipal admissions tax may only be
13-8 used for the acquisition of sites for and the acquisition,
13-9 construction, improvement, enlarging, equipping, or repairing of
13-10 qualified sports facility projects.
13-11 Sec. 302.206. PLEDGE FOR BONDS. A municipality must pledge
13-12 the revenues derived from the municipal parking tax and the
13-13 municipal admissions tax imposed under this chapter for the payment
13-14 of bonds that are issued by the municipality pursuant to Article
13-15 1269j-4.1, Vernon's Texas Civil Statutes, for the purpose set forth
13-16 in Section 302.205 or by a nonprofit corporation created by the
13-17 municipality pursuant to the provisions of Section 4B of Article
13-18 5190.6, Vernon's Texas Civil Statutes, for the purposes provided by
13-19 Section 302.205.
13-20 Sec. 302.207. COLLECTION OF TAX. (a) The ordinance of the
13-21 municipality may provide that the owner of a parking facility
13-22 collect the tax for the benefit of the municipality in accordance
13-23 with the provisions of the ordinance of the city imposing the tax
13-24 and regulating its enforcement and collection. The owner of a
13-25 parking facility subject to the municipal parking tax shall report
13-26 and pay the tax to the city in the manner set forth in the
13-27 ordinances of the city relating to the tax.
14-1 (b) The ordinance of the municipality may provide that the
14-2 owner of a qualified sports facility project subject to the
14-3 municipal admissions tax collect the tax for the benefit of the
14-4 municipality in the manner prescribed by the city in the ordinance
14-5 imposing the tax and regulating its collection. The owner of a
14-6 qualified sports facility project that may be imposed under this
14-7 chapter shall report and pay the tax to the city in the manner
14-8 prescribed in the ordinances of the city.
14-9 (c) The municipality may permit the owner of a parking
14-10 facility or the owner of a qualified sports facility project a fee
14-11 for collecting the municipal taxes authorized by this chapter.
14-12 Sec. 302.208. TAX COLLECTION POWERS. (a) The governing
14-13 body of a municipality imposing a municipal parking tax or a
14-14 municipal admissions tax may adopt ordinances and may make rules
14-15 relating to the imposition, assessment and collection of such
14-16 taxes.
14-17 (b) A municipality collecting taxes that are authorized by
14-18 this chapter may by ordinance impose penalties for delinquent
14-19 taxes, including interest charges on delinquent taxes.
14-20 (c) The municipality may, through its attorney, bring suit
14-21 for a judgment for delinquent taxes, penalties and interest due to
14-22 the municipality under this chapter.
14-23 (d) An owner of a parking facility or an owner of a
14-24 qualified sports facility project commits an offense as prescribed
14-25 in the municipal ordinance if he fails to make and retain complete
14-26 records in the manner prescribed in the municipalities ordinance.
14-27 SECTION 12. The importance of this legislation and the
15-1 crowded condition of the calendars in both houses create an
15-2 emergency and an imperative public necessity that the
15-3 constitutional rule requiring bills to be read on three several
15-4 days in each house be suspended, and this rule is hereby suspended,
15-5 and that this Act take effect and be in force from and after its
15-6 passage, and it is so enacted.