By: West, et al. S.B. No. 1346
A BILL TO BE ENTITLED
AN ACT
1-1 relating to the creation of sports authorities and sports facility
1-2 enterprise zones and to the financing of sports facilities.
1-3 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
1-4 SECTION 1. Chapter 2303, Government Code, is amended by
1-5 adding Subchapter H to read as follows:
1-6 SUBCHAPTER H. QUALIFIED SPORTS FACILITY PROJECTS
1-7 Sec. 2303.601. In this subchapter:
1-8 (1) "Local government" means a municipality.
1-9 (2) "Qualified sports facility project" means a sports
1-10 facility that is constructed, remodeled, or rehabilitated or is
1-11 proposed to be constructed, remodeled, or rehabilitated by a
1-12 municipality, county, or other political subdivision or by a sports
1-13 authority that receives or will receive rebates, refunds, or
1-14 payment from the state or a municipality, county, or other
1-15 political subdivision under this chapter.
1-16 (3) "Sports authority" means a nonprofit corporation
1-17 created by a local government under Section 4A, Texas
1-18 Transportation Corporation Act (Article 1528l, Vernon's Texas Civil
1-19 Statutes).
1-20 (4) "Sports facility" means an arena, coliseum,
1-21 stadium, training facilities, or speedway, or any combination, that
1-22 is owned by a municipality, county, or other political subdivision
1-23 or by a sports authority and that is used or proposed to be used
1-24 for National Football League, National Basketball Association,
2-1 National Hockey League, or major league or Triple-A minor league
2-2 baseball games or events, NASCAR or Indy Car sanctioned events,
2-3 Professional Rodeo Cowboys Association events, National Cutting
2-4 Horse Association events, or Olympic or international games or
2-5 events. The term includes administrative, service, concession, and
2-6 related parking facilities.
2-7 (5) "Sports facility enterprise zone" means an area
2-8 designated by a local government as a reinvestment zone under
2-9 Chapter 311, Tax Code, and that includes or will include a
2-10 qualified sports facility project within a one and one-quarter mile
2-11 radius of the sports facility.
2-12 Sec. 2303.602. DESIGNATION OF SPORTS FACILITY ENTERPRISE
2-13 ZONE. (a) A sports facility enterprise zone is an enterprise zone
2-14 entitled to the benefits of this chapter applicable to enterprise
2-15 zones.
2-16 (b) Subject to department designation under this section for
2-17 the purpose of state benefits, if a local government in the
2-18 ordinance or order designating an area as a reinvestment zone under
2-19 Chapter 311, Tax Code, also designates the area as a sports
2-20 facility enterprise zone, the area is designated as a sports
2-21 facility enterprise zone without further hearing or procedural
2-22 requirement other than as required by Chapter 311, Tax Code.
2-23 (c) The governing body of a sports facility enterprise zone
2-24 in which a qualified sports facility project is located may apply
2-25 to the department for designation as a sports facility enterprise
2-26 zone for the purpose of state benefits under this chapter. The
2-27 department shall designate the sports facility enterprise zone if:
3-1 (1) the department or the governing body of a local
3-2 government certifies that the zone was created in accordance with
3-3 this subchapter and Chapter 311, Tax Code; and
3-4 (2) the department determines that the zone qualifies
3-5 for designation under Subsection (d).
3-6 (d) On receiving an application for designation under
3-7 Subsection (c), the department shall obtain from the Legislative
3-8 Budget Board a fiscal note on the projected impact to state
3-9 revenues for each state fiscal year over the anticipated term of
3-10 the state commitment. The fiscal note must be computed on
3-11 historical sales and use tax and mixed beverage tax collections
3-12 from businesses in the zone. The department may approve a
3-13 designation only if the department determines, according to the
3-14 fiscal note, that the ratio of total state tax revenues allocated
3-15 to the sports authority for a qualified sports facility project
3-16 under Section 111.110, Tax Code, during any state fiscal year to
3-17 the total statewide state sales and use taxes and mixed beverage
3-18 taxes retained by the state during that state fiscal year probably
3-19 will not exceed a value equal to .00047 x the ratio of the consumer
3-20 price index in 1997 to the forecast of the consumer price index for
3-21 that year.
3-22 (e) Designation of a sports facility enterprise zone under
3-23 this subchapter does not reduce the number of enterprise zones the
3-24 department may otherwise designate under this chapter.
3-25 Sec. 2303.603. QUALIFIED SPORTS FACILITY PROJECT. (a) A
3-26 person is a qualified business and a qualified sports facility
3-27 project if the governing body of a local government, for the
4-1 purpose of local benefits, certifies that the person is a qualified
4-2 sports facility project that is owned by a sports authority.
4-3 (b) In determining the number of enterprise projects that
4-4 the department may approve under this chapter, the new permanent
4-5 jobs or retained jobs created by a qualified sports facility
4-6 project shall not be considered.
4-7 (c) A qualified sports facility project shall not be an
4-8 enterprise project and the qualified sports facility project shall
4-9 only be entitled to local benefits applicable to a qualified
4-10 business under the provisions of this subchapter, Chapter 311, Tax
4-11 Code, and Section 111.110, Tax Code.
4-12 (d) The department may approve a qualified sports facility
4-13 project for a facility that is used or will be used for National
4-14 Football League, National Basketball Association, or National
4-15 Hockey League games or events only if the National Football League,
4-16 National Basketball Association, or National Hockey League team
4-17 that uses or will use the facility enters into, with each local
4-18 government guaranteeing bonds for the facility, an agreement that
4-19 specifies the amount the team will contribute toward the
4-20 construction, rehabilitation, or remodeling of the facility. In
4-21 addition, the team must agree to assume total responsibility for
4-22 all debt related to the facility if the team leaves the facility
4-23 unless another team or facility tenant agrees to fulfill the terms
4-24 of the team's agreement with the local government. If the facility
4-25 is not used or will not be used for National Football League,
4-26 National Basketball Association, or National Hockey League games or
4-27 events, the sports authority shall prescribe a method to ensure
5-1 that a private sector participation guarantee is made and that the
5-2 agreement will be fulfilled.
5-3 (e) Notwithstanding any other provision of law, the
5-4 department may not approve more than a total of six qualified
5-5 sports facility projects, of which five must be for facilities that
5-6 are used or will be used for National Football League, National
5-7 Basketball Association, or National Hockey League games or events.
5-8 Sec. 2303.604. REFUND, REBATE, OR PAYMENT OF TAX PROCEEDS TO
5-9 CERTAIN SPORTS AUTHORITIES. (a) To promote the public health,
5-10 safety, or welfare, the governing body of a municipality or county
5-11 may establish a program by which it reduces or eliminates any fees
5-12 or taxes that it imposes on a qualified sports facility project.
5-13 (b) For the period prescribed by the agreement, a
5-14 governmental body, including a municipality, county, or political
5-15 subdivision, may agree to rebate, refund, or pay to a sports
5-16 authority that owns or is rehabilitating or remodeling a qualified
5-17 sports facility project:
5-18 (1) any eligible tax proceeds; and
5-19 (2) any incremental increase in tax proceeds.
5-20 (c) A local government may agree to guarantee, from revenue
5-21 from hotel occupancy taxes or sales and use taxes, the bonds or
5-22 other obligations of a sports authority that were issued or
5-23 incurred to pay the cost of construction, remodeling, or
5-24 rehabilitation of a qualified sports facility project owned by the
5-25 sports authority or a local government.
5-26 (d) An agreement under this section must be in writing,
5-27 contain an expiration date, and require the beneficiary to provide
6-1 documentation necessary to support a claim.
6-2 (e) A governmental body that makes an agreement under this
6-3 section shall make the rebate, refund, or payment directly to the
6-4 beneficiary.
6-5 (f) In this section:
6-6 (1) "Eligible tax proceeds" means proceeds a taxing
6-7 entity receives that are generated, paid, or collected by a sports
6-8 authority at the qualified sports facility project or by a business
6-9 at a qualified sports facility project or for events at the
6-10 project, including hotel occupancy taxes, ad valorem taxes, sales
6-11 and use taxes, and mixed beverage taxes.
6-12 (2) "Incremental increase in tax proceeds" means the
6-13 amount of hotel occupancy taxes, sales and use taxes, and mixed
6-14 beverage taxes received by a taxing entity that is generated, paid,
6-15 or collected in the taxing entity's fiscal year by all businesses
6-16 operating in the sports facility enterprise zone, other than those
6-17 businesses located at the qualified sports facility project, after
6-18 adjustment for normal economic growth and for the effects of any
6-19 change in the rate of the tax or in the items subject to the tax,
6-20 and that exceeds the amount of those taxes generated, paid, or
6-21 collected by those businesses in the taxing entity's fiscal year
6-22 preceding the fiscal year in which the sports facility enterprise
6-23 zone is created.
6-24 (3) "Adjustment for normal economic growth" has the
6-25 meaning assigned by Section 111.110, Tax Code.
6-26 Sec. 2303.605. REFERENDUM ON SPORTS FACILITY PROJECT.
6-27 (a) A sports facility that is located in a county with a
7-1 population of 2 million or more and that is located outside the
7-2 boundaries of the most populous municipality in the county may not
7-3 be designated as a qualified sports facility project unless the
7-4 voters of the county in which the sports facility is located
7-5 approve, at a public referendum called by the commissioners court,
7-6 the designation of the sports facility as a qualified sports
7-7 facility project under this subchapter.
7-8 (b) A sports facility enterprise zone in a municipality with
7-9 a population of 1.5 million or more may not include a sports
7-10 facility unless the voters of the most populous municipality in the
7-11 county in which the sports facility is located approve, at a public
7-12 referendum called by the governing body of the most populous
7-13 municipality, the designation of the sports facility as a qualified
7-14 sports facility project under this subchapter.
7-15 Sec. 2303.606. AVAILABILITY OF QUALIFIED SPORTS FACILITY
7-16 PROJECT. At the request of a school district or the University
7-17 Interscholastic League, a sports authority must make reasonably
7-18 available a qualified sports facility project for competitions
7-19 sanctioned or conducted by the University Interscholastic League,
7-20 at a cost not to exceed the cost of utilities for the period during
7-21 which the facility is used.
7-22 SECTION 2. Subchapter C, Chapter 111, Tax Code, is amended
7-23 by adding Section 111.110 to read as follows:
7-24 Sec. 111.110. REBATE, REFUND, OR PAYMENT OF TAX PROCEEDS TO
7-25 CERTAIN SPORTS AUTHORITIES. (a) A sports authority that owns or
7-26 is assisting a municipality, county, or other political subdivision
7-27 in rehabilitating or remodeling a qualified sports facility project
8-1 located in a sports facility enterprise zone shall receive from the
8-2 state a rebate, refund, or payment of:
8-3 (1) 80 percent of the state sales and use taxes, not
8-4 otherwise dedicated by law, generated, paid, or collected by the
8-5 qualified sports facility project or a business at the qualified
8-6 sports facility project or for events at the project;
8-7 (2) 80 percent of the mixed beverage taxes retained by
8-8 the state and generated, paid, or collected by the qualified sports
8-9 facility project or a business at the qualified sports facility
8-10 project; and
8-11 (3) 80 percent of the amount of the incremental
8-12 increase in state sales and use taxes and mixed beverage taxes
8-13 retained by the state.
8-14 (b) The sports authority shall receive the rebate, refund,
8-15 or payment for the term of the bonds or other obligations issued or
8-16 incurred by the sports authority to construct, remodel, or
8-17 rehabilitate the qualified sports facility project, but only if the
8-18 bonds or other obligations are approved by the Texas Public Finance
8-19 Authority before they are issued or incurred by the sports
8-20 authority and provided that, in the event that a team leaves the
8-21 facility and has not satisfied the requirement that another team or
8-22 facility tenant agrees to fulfill the terms of the team's agreement
8-23 with the local government, as provided by Section 2303.603 (d),
8-24 Government Code, the Texas Department of Commerce approves the
8-25 transfer of responsibility to another team or facility tenant. The
8-26 sports authority may not, however, receive a rebate, refund, or
8-27 payment under this section of taxes due or collected by the
9-1 comptroller before September 1, 1998, regardless of the
9-2 date on which the bonds or other obligations are issued or
9-3 incurred.
9-4 (c) A sports authority is not entitled to a rebate, refund,
9-5 or payment under this section unless each local government that
9-6 created the sports authority agrees to rebate, refund, or pay to
9-7 the sports authority eligible tax proceeds and any incremental
9-8 increase in tax proceeds in accordance with Section 2303.604,
9-9 Government Code, during the period in which the authority receives
9-10 funds under this section.
9-11 (d) On certification by the sports authority to the
9-12 comptroller that the sports authority has or intends to issue or
9-13 incur bonds or other obligations to construct, remodel, or
9-14 rehabilitate a qualified sports facility project and that each
9-15 local government that created the sports authority has agreed to
9-16 rebate, refund, or pay to the sports authority eligible tax
9-17 proceeds and any incremental increase in tax proceeds in accordance
9-18 with Section 2303.604, Government Code, the comptroller shall
9-19 notify the state treasurer of the certification and the state
9-20 treasurer shall establish a special fund outside the state treasury
9-21 for that sports authority. The comptroller shall deposit to the
9-22 credit of the fund the money to which the sports authority is
9-23 entitled under Subsections (a)(1) and (a)(2). In addition, not
9-24 later than the last day of the month following a calendar quarter,
9-25 the comptroller shall:
9-26 (1) compute the aggregate amount of revenue from all
9-27 taxes to which the sports authority is entitled under Subsection
10-1 (a)(3) for the preceding fiscal quarter; and
10-2 (2) before any other allocation of the taxes collected
10-3 under Chapter 151, deposit to the credit of the special fund from
10-4 those taxes an amount equal to the amount computed under
10-5 Subdivision (1).
10-6 (e) Subject to Subsection (f), the sports authority shall
10-7 administer the fund created for the benefit of the authority under
10-8 Subsection (d). The sports authority is the trustee of the fund's
10-9 assets. The sports authority may segregate contributions and
10-10 payments to the fund into various accounts and acquire, hold,
10-11 manage, purchase, sell, assign, trade, transfer, and dispose of any
10-12 security, evidence of indebtedness, or other investment in which
10-13 the fund's assets may be invested.
10-14 (f) The state treasurer is the custodian of the assets of
10-15 the fund. The state treasurer shall pay money from the fund on a
10-16 warrant drawn by the comptroller and supported by a voucher signed
10-17 by the sports authority or the authority's designated
10-18 representative. The voucher is a governmental record and must
10-19 state the name of the payee, the amount of the warrant requested,
10-20 and a general description of the purpose for the payment.
10-21 (g) Notwithstanding any other provision of this section, the
10-22 maximum total amount of state money that a sports authority is
10-23 entitled to receive in a state fiscal year under this section is
10-24 equal to the lesser of:
10-25 (1) 35 percent of the total average annual debt
10-26 service for bonds or other obligations that are issued or incurred
10-27 by the sports authority to construct, remodel, or rehabilitate the
11-1 qualified sports facility project and that are payable in part by
11-2 the rebate, refund, or payment of state taxes under this section;
11-3 or
11-4 (2) the product of .00047 x the total statewide state
11-5 sales and use taxes and mixed beverage taxes retained by the state
11-6 during that state fiscal year x the ratio of the consumer price
11-7 index in 1997 to the consumer price index for that year, except
11-8 that the authority may exceed this limit by not more than eight
11-9 percent for not more than one-half of the years of the state
11-10 commitment.
11-11 (h) The comptroller shall adjust the rebates, refunds, or
11-12 payments under this section as necessary to ensure that a sports
11-13 authority does not receive an amount that exceeds the limitation
11-14 prescribed by Subsection (g).
11-15 (i) In this section:
11-16 (1) "Incremental increase in tax proceeds" means the
11-17 amount of sales and use taxes or mixed beverage taxes collected or
11-18 paid, other than taxes paid under a permit issued under Section
11-19 151.418, in a state fiscal year by outlets of permit holders
11-20 operating in a sports facility enterprise zone, other than those
11-21 outlets located at the sports facility project, that, after
11-22 adjustment, exceeds the amount of tax collected or paid by outlets
11-23 of permit holders located in the sports facility enterprise zone,
11-24 other than those outlets located at the sports facility project, in
11-25 the base year, after adjustment for normal economic growth and for
11-26 the effects of any change in the rate of the tax or in the items
11-27 subject to the tax.
12-1 (2) "Base year" means the state fiscal year preceding
12-2 the fiscal year in which the sports facility enterprise zone is
12-3 created.
12-4 (3) "Permit holder" means a holder of a permit under
12-5 Section 151.201 or 151.252, Tax Code, or a permittee under Section
12-6 183.001(b)(1), Tax Code.
12-7 (4) "Adjustment for normal economic growth" means
12-8 multiplication of the amount of tax paid or collected in the base
12-9 year by the ratio of personal income in this state in the year for
12-10 which the increment is computed to personal income in this state in
12-11 the base year, before computation of the excess under Subdivision
12-12 (1).
12-13 SECTION 3. Section 311.002, Tax Code, is amended by adding
12-14 Subdivisions (5) and (6) to read as follows:
12-15 (5) "Qualified sports facility project," "sports
12-16 authority," and "sports facility enterprise zone" have the meanings
12-17 assigned by Section 2303.601, Government Code.
12-18 (6) "Eligible tax proceeds" and "incremental increase
12-19 in tax proceeds" have the meanings assigned by Section 2303.604,
12-20 Government Code.
12-21 SECTION 4. Subsection (a), Section 311.005, Tax Code, is
12-22 amended to read as follows:
12-23 (a) To be designated as a reinvestment zone, an area must:
12-24 (1) substantially arrest or impair the sound growth of
12-25 the municipality creating the zone, retard the provision of housing
12-26 accommodations, or constitute an economic or social liability and
12-27 be a menace to the public health, safety, morals, or welfare in its
13-1 present condition and use because of the presence of:
13-2 (A) a substantial number of substandard, slum,
13-3 deteriorated, or deteriorating structures;
13-4 (B) the predominance of defective or inadequate
13-5 sidewalk or street layout;
13-6 (C) faulty lot layout in relation to size,
13-7 adequacy, accessibility, or usefulness;
13-8 (D) unsanitary or unsafe conditions;
13-9 (E) the deterioration of site or other
13-10 improvements;
13-11 (F) tax or special assessment delinquency
13-12 exceeding the fair value of the land;
13-13 (G) defective or unusual conditions of title; or
13-14 (H) conditions that endanger life or property by
13-15 fire or other cause;
13-16 (2) be predominantly open and, because of obsolete
13-17 platting, deterioration of structures or site improvements, or
13-18 other factors, substantially impair or arrest the sound growth of
13-19 the municipality; <or>
13-20 (3) be in a federally assisted new community located
13-21 in the municipality or in an area immediately adjacent to a
13-22 federally assisted new community; <or>
13-23 (4) <(5)> be an area described in a petition
13-24 requesting that the area be designated as a reinvestment zone, if
13-25 the petition is submitted to the governing body of the municipality
13-26 by the owners of property constituting at least 50 percent of the
13-27 appraised value of the property in the area according to the most
14-1 recent certified appraisal roll for the county in which the area is
14-2 located; or
14-3 (5) be an area that a local government determines
14-4 should be designated as a sports facility enterprise zone under
14-5 Subchapter H, Chapter 2303, Government Code.
14-6 SECTION 5. Section 311.015, Tax Code, is amended by adding
14-7 Subsections (m) and (n) to read as follows:
14-8 (m) Notwithstanding Subsection (l), tax increment bonds or
14-9 notes issued to finance a qualified sports facility project must
14-10 mature not later than the 30th anniversary after the date of
14-11 issuance. A local government may pledge eligible tax proceeds and
14-12 the incremental increase in tax proceeds to pay bonds or notes
14-13 issued to pay the costs of a qualified sports facility project
14-14 under terms and conditions the local government considers
14-15 appropriate.
14-16 (n) Notwithstanding any other provision of this section, a
14-17 local government that proposes to issue tax increment bonds or
14-18 notes to construct, remodel, repair, or improve a qualified sports
14-19 facility project may call an election for the purpose of the voters
14-20 of the local government to approve the issuance of the tax
14-21 increment bonds or notes.
14-22 SECTION 6. Chapter 311, Tax Code, is amended by adding
14-23 Section 311.0032 to read as follows:
14-24 Sec. 311.0032. SPORTS FACILITY ENTERPRISE ZONE. (a) A
14-25 local government may in the ordinance or order designating an area
14-26 as a reinvestment zone also designate the area as a sports facility
14-27 enterprise zone.
15-1 (b) A local government may not designate an area as a sports
15-2 facility enterprise zone unless:
15-3 (1) the zone contains or will contain a qualified
15-4 sports facility project; and
15-5 (2) the local government agrees to rebate, refund, or
15-6 pay to the sports authority that owns, proposes to own, or is
15-7 assisting a county, municipality, or other political subdivision in
15-8 rehabilitating or remodeling the qualified sports facility project
15-9 eligible tax proceeds and any incremental increase in tax proceeds
15-10 in accordance with Section 2303.604, Government Code.
15-11 (c) The local government must agree to provide the rebate,
15-12 refunding, or payment for the period during which the sports
15-13 authority receives funding under Section 111.110.
15-14 SECTION 7. Section 4A, Texas Transportation Corporation Act
15-15 (Article 1528l, Vernon's Texas Civil Statutes), is amended by
15-16 amending Subsections (a), (b), (c), (e), and (f), and by adding
15-17 Subsection (j) to read as follows:
15-18 (a) A local government corporation may be created to aid,
15-19 assist, and act on behalf of one or more local governments to
15-20 accomplish any governmental purpose, including a project or
15-21 activity permitted by its articles of incorporation. The
15-22 commission approval is not required for the articles of
15-23 incorporation, articles of dissolution, or bylaws of a local
15-24 government corporation. A local government corporation shall be
15-25 created and dissolved and the board of directors shall be appointed
15-26 and serve in the manner, for the term, and on the conditions as a
15-27 nonprofit corporation created pursuant to the provisions of Chapter
16-1 394, Local Government Code. A member of the board of directors is
16-2 required to be a resident of a local government creating the
16-3 corporation. The articles of incorporation and bylaws of a local
16-4 government corporation and any amendments thereto shall be in the
16-5 form and shall be executed, approved, and filed in the manner
16-6 prescribed by Chapter 394, Local Government Code.
16-7 (b) A local government corporation shall have all the powers
16-8 of:
16-9 (1) a corporation approved for creation by the
16-10 commission pursuant to this Act, including the power to contract
16-11 with the commission and any state agency or local government, road
16-12 districts, road utility districts, or other political subdivisions
16-13 in the manner and to the same extent as a corporation approved for
16-14 creation by the commission to accomplish any purpose for which the
16-15 corporation was created as prescribed by its articles of
16-16 incorporation; <, and>
16-17 (2) a nonprofit corporation incorporated under the
16-18 Texas Non-Profit Corporation Act (Article 1396-1.01, et seq.,
16-19 Vernon's Texas Civil Statutes); and
16-20 (3) an industrial development corporation created
16-21 under Section 4B, Development Corporation Act of 1979 (Article
16-22 5190.6, Vernon's Texas Civil Statutes), and may:
16-23 (A) exercise its borrowing capacity for any
16-24 authorized project or activity; and
16-25 (B) acquire land for any authorized project or
16-26 activity with the consent of each sponsoring local government in
16-27 accordance with Section 4B, Development Corporation Act of 1979
17-1 (Article 5190.6, Vernon's Texas Civil Statutes).
17-2 (c) A local government corporation is subject to Chapter
17-3 551, Government Code <the open meetings law (Article 6252-17,
17-4 Vernon's Texas Civil Statutes)>. The board of directors of a local
17-5 government corporation shall file notice of each meeting of the
17-6 board in the same manner and in the same location as is required of
17-7 the governing body or bodies of the local government or governments
17-8 granting approval to the creation of the local government
17-9 corporation.
17-10 (e) The commission, state agencies, local governments, road
17-11 districts, road utility districts, and other political subdivisions
17-12 shall have the power to contract with a local government
17-13 corporation to accomplish a governmental purpose of the sponsoring
17-14 local government or to implement an authorized project or activity
17-15 of the local government corporation, if it is also an authorized
17-16 purpose of the contracting commission, state agency, road district,
17-17 road utility district, or other political subdivision, in the same
17-18 manner and to the same extent as such entities have to contract
17-19 with a corporation approved for creation by the commission and as
17-20 authorized by Article 6702-3, Revised Statutes. A local government
17-21 also has authority to contract with a corporation to carry out a
17-22 governmental purpose of the sponsoring local government or to
17-23 implement an authorized project or activity of the corporation in
17-24 the manner prescribed by Article 6674r-2, Revised Statutes.
17-25 (f) A <The property of a> corporation, its property, and any
17-26 transaction in which the corporation's property <it> is acquired
17-27 shall have the same exemption from taxation as a corporation
18-1 created pursuant to Chapter 394, Local Government Code, or Section
18-2 4B, Development Corporation Act of 1979 (Article 5190.6, Vernon's
18-3 Texas Civil Statutes), including the exemption from the payment of
18-4 a sales and use tax.
18-5 (j) A municipality may create a local government corporation
18-6 that is a sports authority. The articles of incorporation of the
18-7 sports authority must provide that the sports authority have a
18-8 seven-member board with three of those members appointed by the
18-9 comptroller. The directors are appointed for concurrent six-year
18-10 terms.
18-11 SECTION 8. Chapter 302, Tax Code, is amended by adding
18-12 Subchapter C to read as follows:
18-13 SUBCHAPTER C. SPORTS FACILITY ENTERPRISE ZONE EXCISE TAXES
18-14 Sec. 302.201. DEFINITIONS. In this subchapter:
18-15 (1) "Admissions tax" means the tax a municipality may
18-16 impose under Section 302.203 on each person admitted to an event in
18-17 a qualified sports facility project.
18-18 (2) "Event parking tax" means the tax a municipality
18-19 may impose under Section 302.202 on certain parking.
18-20 (3) "Qualified sports facility project," "sports
18-21 authority," "sports facility," and "sports facility enterprise
18-22 zone" have the meanings assigned by Section 2303.601, Government
18-23 Code.
18-24 Sec. 302.202. EVENT PARKING TAX. (a) A municipality by
18-25 ordinance may impose a tax on each motor vehicle parking in a
18-26 parking facility located within 2,500 feet of a sports facility
18-27 enterprise zone. The municipality may not impose the tax under
19-1 this section:
19-2 (1) in an area that is not within 2,500 feet of a
19-3 sports facility enterprise zone; or
19-4 (2) for an event at a sports facility existing on
19-5 September 1, 1995, unless the sports facility is designated as a
19-6 qualified sports facility project under Chapter 2303, Government
19-7 Code.
19-8 (b) The municipality may impose the tax during a period
19-9 beginning not more than two hours before and ending not more than
19-10 two hours after the time an event in a qualified sports facility
19-11 project is scheduled to begin. The municipality may not impose the
19-12 tax under this subchapter during any other time.
19-13 (c) The municipality by ordinance may provide that the tax
19-14 is imposed at a flat amount on each parked motor vehicle or is
19-15 imposed as a percentage of the amount charged for event parking by
19-16 the owner of the parking facility. Regardless of the method of
19-17 imposition, the amount of the tax may not exceed $2.50 per motor
19-18 vehicle. The municipality by ordinance may repeal or increase or
19-19 decrease the rate of the tax imposed under this section.
19-20 (d) The municipality by ordinance may require the owner of a
19-21 parking facility to collect the tax for the benefit of the
19-22 municipality. An owner required to collect the tax under this
19-23 section shall add the tax to the parking charge, and the tax is a
19-24 part of the parking charge, a debt owed to the parking facility
19-25 owner by the person parking, and recoverable at law in the same
19-26 manner as the parking charge. The tax imposed by this section is
19-27 not an occupation tax imposed on the owner of the parking facility.
20-1 Sec. 302.203. ADMISSIONS TAX. (a) A municipality by
20-2 ordinance may impose a tax on each person admitted to an event at a
20-3 qualified sports facility project. The municipality may not impose
20-4 the tax under this section for admission to an event at a facility
20-5 that is not a qualified sports facility project under Chapter 2303,
20-6 Government Code.
20-7 (b) The municipality by ordinance may provide that the tax
20-8 is imposed at a flat amount on each person admitted or is imposed
20-9 as a percentage of the amount charged for admission. Regardless of
20-10 the method of imposition, the amount of the tax may not exceed $2
20-11 per person. The municipality by ordinance may repeal or increase
20-12 or decrease the rate of the tax imposed under this section.
20-13 (c) The municipality by ordinance may require the owner of a
20-14 qualified sports facility project to collect the tax for the
20-15 benefit of the municipality. An owner required to collect the tax
20-16 under this section shall add the tax to the admissions price, and
20-17 the tax is a part of the admissions price, a debt owed to the
20-18 qualified sports facility project owner by the person admitted, and
20-19 recoverable at law in the same manner as the admissions charge.
20-20 The tax imposed by this section is not an occupation tax imposed on
20-21 the owner of the qualified sports facility project.
20-22 Sec. 302.204. EFFECTIVE DATE AND ENDING DATE OF TAX. (a) A
20-23 tax imposed under this subchapter takes effect on the date
20-24 prescribed by the ordinance imposing the tax.
20-25 (b) The municipality may impose a tax under this subchapter
20-26 only if the municipality or the sports authority issues bonds under
20-27 Section 302.207. The municipality may impose the tax only while
21-1 bonds of the municipality or sports authority issued to pay the
21-2 costs of constructing, remodeling, or rehabilitating a qualified
21-3 sports facility project are outstanding and unpaid.
21-4 Sec. 302.205. COLLECTION OF TAX. (a) A person required to
21-5 collect a tax imposed under this subchapter shall report and send
21-6 the taxes to the municipality as provided by the municipality
21-7 imposing the tax.
21-8 (b) The municipality by ordinance may prescribe penalties,
21-9 including interest charges and criminal penalties, for failure to
21-10 keep records required by the municipality, to report when required,
21-11 or to pay the tax when due. The municipal attorney or other
21-12 attorney acting for the municipality may bring suit against a
21-13 person who fails to collect a tax under this subchapter and to pay
21-14 it over to the municipality as required.
21-15 (c) The municipality by ordinance may permit a person who is
21-16 required to collect a tax under this subchapter to retain a
21-17 percentage of the amount collected and required to be reported as
21-18 reimbursement to the person for the costs of collecting the tax.
21-19 The municipality may provide that the person may retain the amount
21-20 only if the person pays the tax and files reports as required by
21-21 the municipality.
21-22 Sec. 302.206. USE OF TAX REVENUE. Revenue from a tax
21-23 imposed under this subchapter may be used only to acquire sites for
21-24 and acquire, construct, improve, rehabilitate, remodel, enlarge,
21-25 equip, or repair a qualified sports facility project.
21-26 Sec. 302.207. PLEDGE FOR BONDS. The municipality shall
21-27 pledge the revenue derived from a tax imposed under this subchapter
22-1 for the payment of any bonds issued for a purpose prescribed by
22-2 Section 302.204 by:
22-3 (1) the municipality under Chapter 63, Acts of the
22-4 59th Legislature, Regular Session, 1965 (Article 1269j-4.1,
22-5 Vernon's Texas Civil Statutes); or
22-6 (2) the sports authority.
22-7 SECTION 9. Notwithstanding any provisions to the contrary,
22-8 this Act does not apply to a sports facility owned by a county with
22-9 a population of 2 million or more that was constructed before
22-10 September 1, 1995.
22-11 SECTION 10. An enactment of the 74th Legislature, Regular
22-12 Session, 1995, that imposes a restriction or limitation on a
22-13 rebate, refund, or payment of state or local taxes to an enterprise
22-14 zone or qualified project does not apply to a sports facility
22-15 enterprise zone or qualified sports facility project created under
22-16 this Act.
22-17 SECTION 11. This Act takes effect September 1, 1995.
22-18 SECTION 12. The importance of this legislation and the
22-19 crowded condition of the calendars in both houses create an
22-20 emergency and an imperative public necessity that the
22-21 constitutional rule requiring bills to be read on three several
22-22 days in each house be suspended, and this rule is hereby suspended.