74R13437 DAK/CBH-D
          By West, et al.                                       S.B. No. 1346
          Substitute the following for S.B. No. 1346:
          By Seidlits                                       C.S.S.B. No. 1346
                                 A BILL TO BE ENTITLED
    1-1                                AN ACT
    1-2  relating to the creation of sports authorities and sports facility
    1-3  enterprise zones and to the financing of sports facilities.
    1-4        BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
    1-5        SECTION 1.  Chapter 2303, Government Code, is amended by
    1-6  adding Subchapter H to read as follows:
    1-7           SUBCHAPTER H.  QUALIFIED SPORTS FACILITY PROJECTS
    1-8        Sec. 2303.601.  DEFINITIONS.  In this subchapter:
    1-9              (1)  "Local government" means a municipality.
   1-10              (2)  "Qualified sports facility project" means a sports
   1-11  facility that is constructed, remodeled, or rehabilitated or is
   1-12  proposed to be constructed, remodeled, or rehabilitated by a
   1-13  municipality, county, or other political subdivision or by a sports
   1-14  authority that is qualified to receive rebates, refunds, or payment
   1-15  from the state or a municipality, county, or other political
   1-16  subdivision under this chapter.
   1-17              (3)  "Sports authority" means a nonprofit corporation
   1-18  created by a local government under Section 4A, Texas
   1-19  Transportation Corporation Act (Article 1528l, Vernon's Texas Civil
   1-20  Statutes).
   1-21              (4)  "Sports facility" means an arena, coliseum,
   1-22  stadium, or speedway, or any combination of these facilities, that
   1-23  is owned by a municipality, county, or other political subdivision
   1-24  or by a sports authority and that is used or proposed to be used
    2-1  for National Football League, National Basketball Association,
    2-2  National Hockey League, or major league or minor league baseball
    2-3  games or events, NASCAR or Indy Car sanctioned events, Professional
    2-4  Rodeo Cowboys Association events, National Cutting Horse
    2-5  Association events, or Olympic or international games or events.
    2-6  The term includes a training, administrative, service, concession,
    2-7  and parking facility associated with the arena, coliseum, stadium,
    2-8  or speedway, but only if any part of the facility is located within
    2-9  a radius of 1,000 feet from the center point of the arena,
   2-10  coliseum, stadium, or speedway.
   2-11              (5)  "Sports facility enterprise zone" means an area:
   2-12                    (A)  that is designated by a local government as
   2-13  a reinvestment zone under Chapter 311, Tax Code;
   2-14                    (B)  that includes a qualified sports facility
   2-15  project or a sports facility for which designation as a qualified
   2-16  sports facility will be requested; and
   2-17                    (C)  no part of which is located farther than two
   2-18  miles from the center point of the sports facility.
   2-19        Sec. 2303.602.  DESIGNATION OF SPORTS FACILITY ENTERPRISE
   2-20  ZONE.  (a)  A sports facility enterprise zone is an enterprise zone
   2-21  entitled to the benefits of this chapter applicable to other
   2-22  enterprise zones.
   2-23        (b)  Subject to department designation under this section for
   2-24  the purpose of state benefits, if a local government in the
   2-25  ordinance or order designating an area as a reinvestment zone under
   2-26  Chapter 311, Tax Code, also designates the area as a sports
   2-27  facility enterprise zone, the area is a sports facility enterprise
    3-1  zone for local benefits without further hearing or procedural
    3-2  requirement other than as required by Chapter 311, Tax Code.
    3-3        (c)  The governing body of a sports facility enterprise zone
    3-4  in which a qualified sports facility project is located may apply
    3-5  to the department for designation as a sports facility enterprise
    3-6  zone for the purpose of state benefits under this chapter.  The
    3-7  department shall designate the sports facility enterprise zone if
    3-8  the department or the governing body of a local government
    3-9  certifies that the zone was created in accordance with this
   3-10  subchapter and Chapter 311, Tax Code.
   3-11        (d)  Designation of a sports facility enterprise zone under
   3-12  this subchapter does not reduce the number of enterprise zones the
   3-13  department may otherwise designate under this chapter.
   3-14        Sec. 2303.603.  QUALIFIED SPORTS FACILITY PROJECT.  (a)  A
   3-15  person is a qualified business and a qualified sports facility
   3-16  project if the governing body of a local government, for the
   3-17  purpose of local benefits, certifies that the person is a qualified
   3-18  sports facility project that is owned by a sports authority.
   3-19        (b)  In determining the number of enterprise projects that
   3-20  the department may approve under this chapter, the new permanent
   3-21  jobs or retained jobs created by a qualified sports facility
   3-22  project may not be considered.
   3-23        (c)  A qualified sports facility project may not be an
   3-24  enterprise project, and the qualified sports facility project is
   3-25  only entitled to local benefits applicable to a qualified business
   3-26  under the provisions of this subchapter and Chapter 311, Tax Code,
   3-27  and the benefits under Section 111.110, Tax Code.
    4-1        (d)  The department may approve a qualified sports facility
    4-2  project for a sports facility that is used or will be used for
    4-3  National Football League, National Basketball Association, or
    4-4  National Hockey League games or events only if the National
    4-5  Football League, National Basketball Association, or National
    4-6  Hockey League team that uses or will use the facility enters into,
    4-7  with each local government guaranteeing bonds for the facility, an
    4-8  agreement that specifies the amount the team will contribute toward
    4-9  the construction, rehabilitation, or remodeling of the facility.
   4-10  In addition, the team must agree to assume total responsibility for
   4-11  all debt related to the facility if the team leaves the facility
   4-12  unless another team or facility tenant agrees to fulfill the terms
   4-13  of the team's agreement with the local government.  If the facility
   4-14  is not used or will not be used for National Football League,
   4-15  National Basketball Association, or National Hockey League games or
   4-16  events, the sports authority shall prescribe a method to ensure
   4-17  that a private sector participation guarantee is made and that the
   4-18  agreement will be fulfilled.
   4-19        (e)  The department may not approve more than 10 qualified
   4-20  sports facility projects to receive state benefits under Section
   4-21  111.110, Tax Code, of which six must be for facilities that are
   4-22  used or will be used for National Football League, National
   4-23  Basketball Association, or National Hockey League games or events
   4-24  or by a New York Stock Exchange listed company for NASCAR or Indy
   4-25  Car sanctioned events.
   4-26        (f)  The four projects not designated in Subsection (e) for
   4-27  specified leagues, associations, or events shall be awarded to
    5-1  sports authorities for projects that the department determines will
    5-2  have the largest new positive economic impact to this state.  In
    5-3  determining whether to approve a project under this subsection, the
    5-4  department shall compare the economic impact of the project in its
    5-5  locality in this state with the economic impact of other proposed
    5-6  projects in other localities in this state.  The department may
    5-7  approve a project only if it determines that the project will have
    5-8  a greater economic impact in its locality than other proposed
    5-9  projects.  At least 30 days before an approval or disapproval
   5-10  becomes effective, the department shall send to the Legislative
   5-11  Budget Board a written explanation of the proposed decision.  At
   5-12  least one of the four projects not designated in Subsection (e)
   5-13  must, to preserve Texas heritage, be for a project for the
   5-14  remodeling or rehabilitation of a facility that is used for
   5-15  professional rodeo or cutting horse events and has been owned by a
   5-16  municipality for more than 50 years.
   5-17        Sec. 2303.604.  REFUND, REBATE, OR PAYMENT OF LOCAL TAX
   5-18  PROCEEDS TO CERTAIN SPORTS AUTHORITIES.  (a)  To promote the public
   5-19  health, safety, or welfare, the governing body of a municipality or
   5-20  county may establish a program by which it reduces or eliminates
   5-21  any fees or taxes that it imposes on a qualified sports facility
   5-22  project.
   5-23        (b)  For the period prescribed by the agreement, a
   5-24  governmental body, including a municipality, county, or political
   5-25  subdivision, may agree to rebate, refund, or pay to a sports
   5-26  authority that owns or is rehabilitating or remodeling a qualified
   5-27  sports facility project:
    6-1              (1)  any eligible tax proceeds; and
    6-2              (2)  any incremental increase in tax proceeds.
    6-3        (c)  A local government may agree to guarantee, from revenue
    6-4  from hotel occupancy taxes or sales and use taxes, the bonds or
    6-5  other obligations of a sports authority that were issued or
    6-6  incurred to pay the cost of construction, remodeling, or
    6-7  rehabilitation of a qualified sports facility project owned by the
    6-8  sports authority or a local government.
    6-9        (d)  An agreement under this section must be in writing,
   6-10  contain an expiration date, and require the beneficiary to provide
   6-11  documentation necessary to support a claim.
   6-12        (e)  A governmental body that makes an agreement under this
   6-13  section shall make the rebate, refund, or payment directly to the
   6-14  beneficiary.
   6-15        (f)  In this section:
   6-16              (1)  "Eligible tax proceeds" means proceeds a taxing
   6-17  entity receives that are generated, paid, or collected by a sports
   6-18  authority at the qualified sports facility project or by a business
   6-19  at a qualified sports facility project or for events at the
   6-20  project, including hotel occupancy taxes, except the hotel
   6-21  occupancy tax authorized by Section 351.1065, Tax Code, or the
   6-22  hotel occupancy tax pledged to obligations issued or to be issued
   6-23  under Chapter 63, Acts of the 59th Legislature, Regular Session,
   6-24  1965 (Article 1269j-4.1, Vernon's Texas Civil Statutes), ad valorem
   6-25  taxes, sales and use taxes, and mixed beverage taxes.
   6-26              (2)  "Incremental increase in tax proceeds" means the
   6-27  amount of hotel occupancy taxes, except the hotel occupancy tax
    7-1  authorized by Section 351.1065, Tax Code, or the hotel occupancy
    7-2  tax pledged to obligations issued or to be issued under Chapter 63,
    7-3  Acts of the 59th Legislature, Regular Session, 1965 (Article
    7-4  1269j-4.1, Vernon's Texas Civil Statutes), sales and use taxes, and
    7-5  mixed beverage taxes received by a taxing entity that is generated,
    7-6  paid, or collected in the taxing entity's fiscal year by all
    7-7  businesses operating in the sports facility enterprise zone, other
    7-8  than those businesses located at the qualified sports facility
    7-9  project, after adjustment for normal economic growth and for the
   7-10  effects of any change in the rate of the tax or in the items
   7-11  subject to the tax, and that exceeds the amount of those taxes
   7-12  generated, paid, or collected by those businesses in the taxing
   7-13  entity's fiscal year preceding the fiscal year in which the sports
   7-14  facility enterprise zone is created.
   7-15              (3)  "Adjustment for normal economic growth" means
   7-16  multiplication of the amount of tax paid or collected in the base
   7-17  year by the ratio of personal income in this state in the year for
   7-18  which the increment is computed to personal income in this state in
   7-19  the base year, before computation of the excess under Subdivision
   7-20  (2).
   7-21        Sec. 2303.605.  REFERENDUM ON SPORTS FACILITY PROJECT;
   7-22  RELOCATION OF TEAM.  (a)  A sports facility that is located in a
   7-23  county with a population of 2 million or more and that is located
   7-24  outside the boundaries of the most populous municipality in the
   7-25  county may not be designated as a qualified sports facility project
   7-26  unless the voters of the county in which the sports facility is
   7-27  located approve, at a public referendum called by the commissioners
    8-1  court, the designation of the sports facility as a qualified sports
    8-2  facility project under this subchapter.
    8-3        (b)  A sports facility enterprise zone in a municipality with
    8-4  a population of 1.5 million or more may not include a sports
    8-5  facility unless the voters of such municipality approve, at a
    8-6  public referendum called by the governing body of such
    8-7  municipality, the designation of the sports facility as a qualified
    8-8  sports facility project under this subchapter.
    8-9        (c)  An election called under this section or Section
   8-10  311.015, Tax Code, may be held on any date.
   8-11        (d)  A professional sports team located and playing at a
   8-12  sports facility in a local government on January 1, 1995, may not
   8-13  contract to relocate and play at a qualified sports facility
   8-14  project in another local government before January 1, 2008, unless
   8-15  a majority of the qualified voters voting at an election called
   8-16  under Section 311.015, Tax Code, or this section fails to approve
   8-17  the creation of a sports facility enterprise zone.  If a majority
   8-18  of the qualified voters fails to approve the creation of a sports
   8-19  facility enterprise zone and the professional sports team
   8-20  relocates, the team is not relieved of any contractual obligations
   8-21  the team has in relation to its former location.  A sports
   8-22  authority that owns or is associated with a qualified sports
   8-23  facility project at which a team locates and plays in violation of
   8-24  this subsection is not entitled to benefits under Section 111.110,
   8-25  Tax Code.
   8-26        Sec. 2303.606.  AVAILABILITY OF QUALIFIED SPORTS FACILITY
   8-27  PROJECT.  At the request of a school district or the University
    9-1  Interscholastic League, a sports authority must make reasonably
    9-2  available a qualified sports facility project for competitions
    9-3  sanctioned or conducted by the University Interscholastic League,
    9-4  at a cost not to exceed the cost of utilities for the period during
    9-5  which the facility is used.
    9-6        SECTION 2.  Subchapter C, Chapter 111, Tax Code, is amended
    9-7  by adding Section 111.110 to read as follows:
    9-8        Sec. 111.110.  REBATE, REFUND, OR PAYMENT OF TAX PROCEEDS TO
    9-9  CERTAIN SPORTS AUTHORITIES; RELOCATION OF TEAM.  (a)  A sports
   9-10  authority that on its own or in conjunction with a municipality,
   9-11  county, or other political subdivision is constructing,
   9-12  rehabilitating, or remodeling a qualified sports facility project
   9-13  located in a sports facility enterprise zone is entitled to receive
   9-14  from the state a rebate, refund, or payment of:
   9-15              (1)  the incremental increase in tax proceeds from the
   9-16  sales and use taxes and the mixed beverage taxes collected at any
   9-17  outlet or location in the sports facility by any person operating a
   9-18  business at the sports facility or as part of an event at the
   9-19  sports facility; and
   9-20              (2)  the incremental increase in tax proceeds collected
   9-21  by any person operating a business at a location in the sports
   9-22  facility enterprise zone but outside the sports facility from the
   9-23  mixed beverage tax, the hotel occupancy tax, and the sales and use
   9-24  tax on food service at restaurants.
   9-25        (b)  Subsection (a) does not affect the liability of any
   9-26  person to the state for taxes collected.
   9-27        (c)  The sports authority is entitled to receive the rebate,
   10-1  refund, or payment subject to the following:
   10-2              (1)  only for the term of the bonds or other
   10-3  obligations issued by the sports authority to construct, remodel,
   10-4  or rehabilitate the qualified sports facility project, but not
   10-5  longer than 30 years;
   10-6              (2)  only if the bonds or other obligations are
   10-7  approved by the Texas Public Finance Authority before they are
   10-8  issued by the sports authority or before the authority incurs any
   10-9  responsibility under the bonds or obligations;
  10-10              (3)  only if each local government that created the
  10-11  sports authority agrees to rebate, refund, or pay to the sports
  10-12  authority eligible tax proceeds and any incremental increase in tax
  10-13  proceeds in accordance with Section 2303.604, Government Code,
  10-14  during the period in which the authority receives funds under this
  10-15  section;
  10-16              (4)  only if the taxes that are rebated, refunded, or
  10-17  paid to the sports authority are imposed or collected by the
  10-18  comptroller after August 31, 1998, regardless of the date on which
  10-19  the bonds or other obligations are issued or incurred; and
  10-20              (5)  if a team described by Section 2303.603(d),
  10-21  Government Code, that has made an agreement as required by that
  10-22  section, ceases to have the facility as the team's location and
  10-23  does not satisfy the requirement of that section that another team
  10-24  or facility tenant fulfill the terms of the agreement with the
  10-25  local government, only if the Texas Department of Commerce approves
  10-26  the transfer of responsibility to another team or facility tenant.
  10-27        (d)  A professional sports team that did not locate in this
   11-1  state before January 1, 1995, or a lessee of a NASCAR or Indy Car
   11-2  sports facility that did not operate in this state on January 1,
   11-3  1995, but locates or operates or contracts to locate or operate
   11-4  after that date in a qualified sports facility project that
   11-5  receives from the state a rebate, refund, or payment under
   11-6  Subsection (a) shall enter into an agreement with the comptroller
   11-7  to pay to the state annually an amount equal to 50 percent of the
   11-8  average annual amount of sales and use taxes and mixed beverage
   11-9  taxes that would otherwise have been paid to the state by the team
  11-10  or lessee over the first three full fiscal years the team begins
  11-11  playing or the lessee begins operating in this state.  The
  11-12  comptroller shall estimate the initial average annual amount and
  11-13  correct its estimation annually until complete tax collection
  11-14  information is available for the first three years.  The agreement
  11-15  under this subsection continues for as long as the sports authority
  11-16  receives benefits under this section.  Payments to the state under
  11-17  this subsection are not subject to rebate, refund, or payment under
  11-18  Subsection (a).
  11-19        (e)  A professional sports team located in a municipality of
  11-20  this state before January 1, 1995, that relocates within the same
  11-21  municipality to a qualified sports facility project that is a new
  11-22  facility constructed after that date and that receives from the
  11-23  state a rebate, refund, or payment under Subsection (a) shall enter
  11-24  into an agreement with the comptroller to pay to the state annually
  11-25  an amount equal to 50 percent of the amount of sales and use taxes
  11-26  and mixed beverage taxes collected by the team during its last full
  11-27  fiscal year at the team's former location.  The agreement under
   12-1  this subsection continues for as long as the sports authority
   12-2  receives benefits under this section.  Payments to the state under
   12-3  this subsection are not subject to rebate, refund, or payment under
   12-4  Subsection (a).
   12-5        (f)  On certification by the sports authority to the
   12-6  comptroller that the sports authority has or intends to issue or
   12-7  incur bonds or other obligations to construct, remodel, or
   12-8  rehabilitate a qualified sports facility project, that each local
   12-9  government that created the sports authority has agreed to rebate,
  12-10  refund, or pay to the sports authority eligible tax proceeds and
  12-11  any incremental increase in tax proceeds in accordance with Section
  12-12  2303.604, Government Code, and that the bonds or other obligations
  12-13  have been approved by the Texas Public Finance Authority, the
  12-14  comptroller shall notify the state treasurer of the certification
  12-15  and the state treasurer shall establish a special fund outside the
  12-16  state treasury for that sports authority.  Not later than the last
  12-17  day of the month following a calendar quarter, the comptroller
  12-18  shall:
  12-19              (1)  compute the aggregate amount of revenue from all
  12-20  taxes to which the sports authority is entitled under Subsection
  12-21  (a) for the preceding fiscal quarter; and
  12-22              (2)  before any other allocation of the taxes collected
  12-23  under Chapter 151, deposit to the credit of the special fund from
  12-24  those taxes an amount equal to the amount computed under
  12-25  Subdivision (1).
  12-26        (g)  Subject to Subsection (h), the sports authority shall
  12-27  administer the fund created for the benefit of the authority under
   13-1  Subsection (f).  The sports authority is the trustee of the fund's
   13-2  assets.  The sports authority may segregate contributions and
   13-3  payments to the fund into various accounts and acquire, hold,
   13-4  manage, purchase, sell, assign, trade, transfer, and dispose of any
   13-5  security, evidence of indebtedness, or other investment in which
   13-6  the fund's assets may be invested.
   13-7        (h)  The state treasurer is the custodian of the assets of
   13-8  the fund.  The state treasurer shall pay money from the fund on a
   13-9  warrant drawn by the comptroller and supported by a voucher signed
  13-10  by the sports authority or the authority's designated
  13-11  representative.  The voucher is a governmental record and must
  13-12  state the name of the payee, the amount of the warrant requested,
  13-13  and a general description of the purpose for the payment.
  13-14        (i)  In this section:
  13-15              (1)  "Incremental increase in tax proceeds" means the
  13-16  amount of taxes collected that exceeds the amount of tax collected
  13-17  in the base year, after adjustment for normal economic growth, as
  13-18  that term is defined by Section 2303.604(f), Government Code, and
  13-19  for the effects of any change in the rate of the tax or in the
  13-20  items subject to the tax.
  13-21              (2)  "Base year" means the state fiscal year preceding
  13-22  the fiscal year in which the sports facility enterprise zone is
  13-23  created.
  13-24        SECTION 3.  Section 311.002, Tax Code, is amended by adding
  13-25  Subdivisions (5) and (6) to read as follows:
  13-26              (5)  "Qualified sports facility project," "sports
  13-27  authority," and "sports facility enterprise zone" have the meanings
   14-1  assigned by Section 2303.601, Government Code.
   14-2              (6)  "Eligible tax proceeds" and "incremental increase
   14-3  in tax proceeds" have the meanings assigned by Section 2303.604,
   14-4  Government Code.
   14-5        SECTION 4.  Section 311.005(a), Tax Code, is amended to read
   14-6  as follows:
   14-7        (a)  To be designated as a reinvestment zone, an area must:
   14-8              (1)  substantially arrest or impair the sound growth of
   14-9  the municipality creating the zone, retard the provision of housing
  14-10  accommodations, or constitute an economic or social liability and
  14-11  be a menace to the public health, safety, morals, or welfare in its
  14-12  present condition and use because of the presence of:
  14-13                    (A)  a substantial number of substandard, slum,
  14-14  deteriorated, or deteriorating structures;
  14-15                    (B)  the predominance of defective or inadequate
  14-16  sidewalk or street layout;
  14-17                    (C)  faulty lot layout in relation to size,
  14-18  adequacy, accessibility, or usefulness;
  14-19                    (D)  unsanitary or unsafe conditions;
  14-20                    (E)  the deterioration of site or other
  14-21  improvements;
  14-22                    (F)  tax or special assessment delinquency
  14-23  exceeding the fair value of the land;
  14-24                    (G)  defective or unusual conditions of title; or
  14-25                    (H)  conditions that endanger life or property by
  14-26  fire or other cause;
  14-27              (2)  be predominantly open and, because of obsolete
   15-1  platting, deterioration of structures or site improvements, or
   15-2  other factors, substantially impair or arrest the sound growth of
   15-3  the municipality; <or>
   15-4              (3)  be in a federally assisted new community located
   15-5  in the municipality or in an area immediately adjacent to a
   15-6  federally assisted new community; <or>
   15-7              (4)  be an area that a local government determines
   15-8  should be designated as a sports facility enterprise zone under
   15-9  Subchapter H, Chapter 2303, Government Code; or
  15-10              (5)  be an area described in a petition requesting that
  15-11  the area be designated as a reinvestment zone, if the petition is
  15-12  submitted to the governing body of the municipality by the owners
  15-13  of property constituting at least 50 percent of the appraised value
  15-14  of the property in the area according to the most recent certified
  15-15  appraisal roll for the county in which the area is located.
  15-16        SECTION 5.  Section 311.015, Tax Code, is amended by adding
  15-17  Subsections (m), (n), and (o) to read as follows:
  15-18        (m)  Notwithstanding Subsection (l), tax increment bonds or
  15-19  notes issued to finance a qualified sports facility project must
  15-20  mature not later than the 30th anniversary after the date of
  15-21  issuance.  A local government may pledge eligible tax proceeds and
  15-22  the incremental increase in tax proceeds to pay bonds or notes
  15-23  issued to pay the costs of a qualified sports facility project
  15-24  under terms and conditions the local government considers
  15-25  appropriate.
  15-26        (n)  Notwithstanding any other provision of this section, a
  15-27  local government that proposes to issue tax increment bonds or
   16-1  notes to construct, remodel, repair, or improve a qualified sports
   16-2  facility project may call an election for the purpose of the voters
   16-3  of the local government to approve the issuance of the tax
   16-4  increment bonds or notes.
   16-5        (o)  The captured appraisal value of a taxing unit shall be
   16-6  excluded from the current total value, as that term is defined by
   16-7  Section 26.012, of the taxing unit for the purpose of the
   16-8  calculation of a rollback tax rate unit under Chapter 26.
   16-9        SECTION 6.  Chapter 311, Tax Code, is amended by adding
  16-10  Section 311.0032 to read as follows:
  16-11        Sec. 311.0032.  SPORTS FACILITY ENTERPRISE ZONE.  (a)  A
  16-12  local government may in the ordinance or order designating an area
  16-13  as a reinvestment zone also designate the area as a sports facility
  16-14  enterprise zone.
  16-15        (b)  A local government may not designate an area as a sports
  16-16  facility enterprise zone unless:
  16-17              (1)  the zone contains or will contain a qualified
  16-18  sports facility project; and
  16-19              (2)  the local government agrees to rebate, refund, or
  16-20  pay to the sports authority that owns, proposes to own, or is
  16-21  assisting a county, municipality, or other political subdivision in
  16-22  rehabilitating or remodeling the qualified sports facility project
  16-23  eligible tax proceeds and any incremental increase in tax proceeds
  16-24  in accordance with Section 2303.604, Government Code.
  16-25        (c)  The local government must agree to provide the rebate,
  16-26  refunding, or payment for the period during which the sports
  16-27  authority receives funding under Section 111.110.
   17-1        SECTION 7.  Section 4A, Texas Transportation Corporation Act
   17-2  (Article 1528l, Vernon's Texas Civil Statutes), is amended by
   17-3  amending Subsections (a), (b), (c), (e), and (f), and by adding
   17-4  Subsection (j) to read as follows:
   17-5        (a)  A local government corporation may be created to aid,
   17-6  assist, and act on behalf of one or more local governments to
   17-7  accomplish any governmental purpose, including a project or
   17-8  activity permitted by its articles of incorporation.  The
   17-9  commission approval is not required for the articles of
  17-10  incorporation, articles of dissolution, or bylaws of a local
  17-11  government corporation.  A local government corporation shall be
  17-12  created and dissolved and the board of directors shall be appointed
  17-13  and serve in the manner, for the term, and on the conditions as a
  17-14  nonprofit corporation created pursuant to the provisions of Chapter
  17-15  394, Local Government Code.  A member of the board of directors is
  17-16  required to be a resident of a local government creating the
  17-17  corporation.  The articles of incorporation and bylaws of a local
  17-18  government corporation and any amendments thereto shall be in the
  17-19  form and shall be executed, approved, and filed in the manner
  17-20  prescribed by Chapter 394, Local Government Code.
  17-21        (b)  A local government corporation shall have all the powers
  17-22  of:
  17-23              (1)  a corporation approved for creation by the
  17-24  commission pursuant to this Act, including the power to contract
  17-25  with the commission and any state agency or local government, road
  17-26  districts, road utility districts, or other political subdivisions
  17-27  in the manner and to the same extent as a corporation approved for
   18-1  creation by the commission to accomplish any purpose for which the
   18-2  corporation was created as prescribed by its articles of
   18-3  incorporation; <, and>
   18-4              (2)  a nonprofit corporation incorporated under the
   18-5  Texas Non-Profit Corporation Act (Article 1396-1.01, et seq.,
   18-6  Vernon's Texas Civil Statutes); and
   18-7              (3)  an industrial development corporation created
   18-8  under Section 4B, Development Corporation Act of 1979 (Article
   18-9  5190.6, Vernon's Texas Civil Statutes), and may:
  18-10                    (A)  exercise its borrowing capacity for any
  18-11  authorized project or activity; and
  18-12                    (B)  acquire land for any authorized project or
  18-13  activity with the consent of each sponsoring local government in
  18-14  accordance with Section 4B, Development Corporation Act of 1979
  18-15  (Article 5190.6, Vernon's Texas Civil Statutes).
  18-16        (c)  A local government corporation is subject to Chapter
  18-17  551, Government Code <the open meetings law (Article 6252-17,
  18-18  Vernon's Texas Civil Statutes)>.  The board of directors of a local
  18-19  government corporation shall file notice of each meeting of the
  18-20  board in the same manner and in the same location as is required of
  18-21  the governing body or bodies of the local government or governments
  18-22  granting approval to the creation of the local government
  18-23  corporation.
  18-24        (e)  The commission, state agencies, local governments, road
  18-25  districts, road utility districts, and other political subdivisions
  18-26  shall have the power to contract with a local government
  18-27  corporation to accomplish a governmental purpose of the sponsoring
   19-1  local government or to implement an authorized project or activity
   19-2  of the local government corporation, if it is also an authorized
   19-3  purpose of the contracting commission, state agency, road district,
   19-4  road utility district, or other political subdivision, in the same
   19-5  manner and to the same extent as such entities have to contract
   19-6  with a corporation approved for creation by the commission and as
   19-7  authorized by Article 6702-3, Revised Statutes.  A local government
   19-8  also has authority to contract with a corporation to carry out a
   19-9  governmental purpose of the sponsoring local government or to
  19-10  implement an authorized project or activity of the corporation in
  19-11  the manner prescribed by Article 6674r-2, Revised Statutes.
  19-12        (f)  A <The property of a> corporation, its property, and any
  19-13  transaction in which the corporation's property <it> is acquired
  19-14  shall have the same exemption from taxation as a corporation
  19-15  created pursuant to Chapter 394, Local Government Code, or Section
  19-16  4B, Development Corporation Act of 1979 (Article 5190.6, Vernon's
  19-17  Texas Civil Statutes), including the exemption from the payment of
  19-18  a sales and use tax.
  19-19        (j)  A municipality may create a local government corporation
  19-20  that is a sports authority.  The articles of incorporation of the
  19-21  sports authority must provide that the sports authority have a
  19-22  seven-member board with three of those members appointed by the
  19-23  comptroller.  The directors are appointed for concurrent six-year
  19-24  terms.
  19-25        SECTION 8.  Chapter 302, Tax Code, is amended by adding
  19-26  Subchapter C to read as follows:
  19-27      SUBCHAPTER C.  SPORTS FACILITY ENTERPRISE ZONE EXCISE TAXES
   20-1        Sec. 302.201.  DEFINITIONS.  In this subchapter:
   20-2              (1)  "Admissions tax" means the tax a municipality may
   20-3  impose under Section 302.203 on each person admitted to an event in
   20-4  a qualified sports facility project.
   20-5              (2)  "Event parking tax" means the tax a municipality
   20-6  may impose under Section 302.202 on certain parking.
   20-7              (3)  "Qualified sports facility project," "sports
   20-8  authority," "sports facility," and "sports facility enterprise
   20-9  zone" have the meanings assigned by Section 2303.601, Government
  20-10  Code.
  20-11        Sec. 302.202.  EVENT PARKING TAX.  (a)  A municipality by
  20-12  ordinance may impose a tax on each motor vehicle parking in a
  20-13  parking facility located within 2,500 feet of a sports facility
  20-14  enterprise zone.  The municipality may not impose the tax under
  20-15  this section:
  20-16              (1)  in an area that is not within 2,500 feet of a
  20-17  sports facility enterprise zone; or
  20-18              (2)  for an event at a sports facility existing on
  20-19  September 1, 1995, unless the sports facility is designated as a
  20-20  qualified sports facility project under Chapter 2303, Government
  20-21  Code.
  20-22        (b)  The municipality may impose the tax during a period
  20-23  beginning not more than two hours before and ending not more than
  20-24  two hours after the time an event in a qualified sports facility
  20-25  project is scheduled to begin.  The municipality may not impose the
  20-26  tax under this subchapter during any other time.
  20-27        (c)  The municipality by ordinance may provide that the tax
   21-1  is imposed at a flat amount on each parked motor vehicle or is
   21-2  imposed as a percentage of the amount charged for event parking by
   21-3  the owner of the parking facility.  Regardless of the method of
   21-4  imposition, the amount of the tax may not exceed $2.50 per motor
   21-5  vehicle.  The municipality by ordinance may repeal or increase or
   21-6  decrease the rate of the tax imposed under this section.
   21-7        (d)  The municipality by ordinance may require the owner of a
   21-8  parking facility to collect the tax for the benefit of the
   21-9  municipality.  An owner required to collect the tax under this
  21-10  section shall add the tax to the parking charge, and the tax is a
  21-11  part of the parking charge, a debt owed to the parking facility
  21-12  owner by the person parking, and recoverable at law in the same
  21-13  manner as the parking charge.  The tax imposed by this section is
  21-14  not an occupation tax imposed on the owner of the parking facility.
  21-15        Sec. 302.203.  ADMISSIONS TAX.  (a)  A municipality by
  21-16  ordinance may impose a tax on each person admitted to an event at a
  21-17  qualified sports facility project.  The municipality may not impose
  21-18  the tax under this section for admission to an event at a facility
  21-19  that is not a qualified sports facility project under Chapter 2303,
  21-20  Government Code.
  21-21        (b)  The municipality by ordinance may provide that the tax
  21-22  is imposed at a flat amount on each person admitted or is imposed
  21-23  as a percentage of the amount charged for admission.  Regardless of
  21-24  the method of imposition, the amount of the tax may not exceed $2
  21-25  per person.  The municipality by ordinance may repeal or increase
  21-26  or decrease the rate of the tax imposed under this section.
  21-27        (c)  The municipality by ordinance may require the owner of a
   22-1  qualified sports facility project to collect the tax for the
   22-2  benefit of the municipality.  An owner required to collect the tax
   22-3  under this section shall add the tax to the admissions price, and
   22-4  the tax is a part of the admissions price, a debt owed to the
   22-5  qualified sports facility project owner by the person admitted, and
   22-6  recoverable at law in the same manner as the admissions charge.
   22-7  The tax imposed by this section is not an occupation tax imposed on
   22-8  the owner of the qualified sports facility project.
   22-9        Sec. 302.204.  EFFECTIVE DATE AND ENDING DATE OF TAX.  (a)  A
  22-10  tax imposed under this subchapter takes effect on the date
  22-11  prescribed by the ordinance imposing the tax.
  22-12        (b)  The municipality may impose a tax under this subchapter
  22-13  only if the municipality or the sports authority issues bonds under
  22-14  Section 302.207.  The municipality may impose the tax only while
  22-15  bonds of the municipality or sports authority issued to pay the
  22-16  costs of constructing, remodeling, or rehabilitating a qualified
  22-17  sports facility project are outstanding and unpaid.
  22-18        Sec. 302.205.  COLLECTION OF TAX.  (a)  A person required to
  22-19  collect a tax imposed under this subchapter shall report and send
  22-20  the taxes to the municipality as provided by the municipality
  22-21  imposing the tax.
  22-22        (b)  The municipality by ordinance may prescribe penalties,
  22-23  including interest charges and criminal penalties, for failure to
  22-24  keep records required by the municipality, to report when required,
  22-25  or to pay the tax when due.  The municipal attorney or other
  22-26  attorney acting for the municipality may bring suit against a
  22-27  person who fails to collect a tax under this subchapter and to pay
   23-1  it over to the municipality as required.
   23-2        (c)  The municipality by ordinance may permit a person who is
   23-3  required to collect a tax under this subchapter to retain a
   23-4  percentage of the amount collected and required to be reported as
   23-5  reimbursement to the person for the costs of collecting the tax.
   23-6  The municipality may provide that the person may retain the amount
   23-7  only if the person pays the tax and files reports as required by
   23-8  the municipality.
   23-9        Sec. 302.206.  USE OF TAX REVENUE.  Revenue from a tax
  23-10  imposed under this subchapter may be used only to acquire sites for
  23-11  and acquire, construct, improve, rehabilitate, remodel, enlarge,
  23-12  equip, or repair a qualified sports facility project.
  23-13        Sec. 302.207.  PLEDGE FOR BONDS.  The municipality shall
  23-14  pledge the revenue derived from a tax imposed under this subchapter
  23-15  for the payment of any bonds issued for a purpose prescribed by
  23-16  Section 302.204 by:
  23-17              (1)  the municipality under Chapter 63, Acts of the
  23-18  59th Legislature, Regular Session, 1965 (Article 1269j-4.1,
  23-19  Vernon's Texas Civil Statutes); or
  23-20              (2)  the sports authority.
  23-21        SECTION 9.  Notwithstanding any provisions to the contrary,
  23-22  this Act does not apply to a sports facility owned by a county with
  23-23  a population of 2 million or more that was constructed before
  23-24  September 1, 1995.
  23-25        SECTION 10.  An enactment of the 74th Legislature, Regular
  23-26  Session, 1995, that imposes a restriction or limitation on a
  23-27  rebate, refund, or payment of state or local taxes to an enterprise
   24-1  zone or qualified project does not apply to a sports facility
   24-2  enterprise zone or qualified sports facility project created under
   24-3  this Act.
   24-4        SECTION 11.  This Act takes effect September 1, 1995.
   24-5        SECTION 12.  The importance of this legislation and the
   24-6  crowded condition of the calendars in both houses create an
   24-7  emergency and an imperative public necessity that the
   24-8  constitutional rule requiring bills to be read on three several
   24-9  days in each house be suspended, and this rule is hereby suspended.