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.