By Brimer, Oliveira, Janek, Eiland, Corte, H.B. No. 92
A BILL TO BE ENTITLED
1-1 AN ACT
1-2 relating to the financing of sports and community venues and
1-3 related infrastructure; authorizing the imposition of certain local
1-4 taxes and the issuance of local bonds; providing penalties.
1-5 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
1-6 SECTION 1. Subtitle C, Title 10, Local Government Code, is
1-7 amended by adding Chapters 334 and 335 to read as follows:
1-8 CHAPTER 334. SPORTS AND COMMUNITY VENUES
1-9 SUBCHAPTER A. GENERAL PROVISIONS
1-10 Sec. 334.001. DEFINITIONS. In this chapter:
1-11 (1) "Approved venue project" means a sports and
1-12 community venue project that has been approved under this chapter
1-13 by the voters of a municipality or county.
1-14 (2) "Governing body" means the governing body of a
1-15 municipality or the commissioners court of a county.
1-16 (3) "Related infrastructure" includes any store,
1-17 restaurant, on-site hotel, concession, automobile parking facility,
1-18 area transportation facility, road, street, water or sewer
1-19 facility, park, or other on-site or off-site improvement that
1-20 relates to and enhances the use, value, or appeal of a venue,
1-21 including areas adjacent to the venue, and any other expenditure
1-22 reasonably necessary to construct, improve, renovate, or expand a
1-23 venue, including an expenditure for environmental remediation.
1-24 (4) "Venue" means:
1-25 (A) an arena, coliseum, stadium, or other type
2-1 of area or facility:
2-2 (i) that is used or is planned for use for
2-3 one or more professional or amateur sports events, community
2-4 events, or other sports events, including rodeos, livestock shows,
2-5 agricultural expositions, promotional events, and other civic or
2-6 charitable events; and
2-7 (ii) for which a fee for admission to the
2-8 events is charged or is planned to be charged;
2-9 (B) a convention center facility or related
2-10 improvement such as a convention center, civic center, civic center
2-11 building, civic center hotel, auditorium, theater, opera house,
2-12 music hall, exhibition hall, rehearsal hall, park, zoological park,
2-13 museum, aquarium, or plaza located in the vicinity of a convention
2-14 center or facility owned by a municipality or a county;
2-15 (C) a tourist development area along an inland
2-16 waterway; and
2-17 (D) any other economic development project
2-18 authorized by other law.
2-19 (5) "Sports and community venue project" or "venue
2-20 project" means a venue and related infrastructure that is planned,
2-21 acquired, established, developed, constructed, or renovated under
2-22 this chapter.
2-23 Sec. 334.002. APPLICATION TO CERTAIN MUNICIPALITIES AND
2-24 COUNTIES. This chapter applies to a municipality with a population
2-25 of more than 1.2 million and to a county with a population of more
2-26 than 2.2 million only if the municipality and county create a
2-27 sports and community venue district under Chapter 335 and only to
3-1 the extent this chapter is applicable to the creation or operation
3-2 of the district.
3-3 Sec. 334.003. APPLICATION TO VENUE CONSTRUCTED UNDER OTHER
3-4 LAW. A county or municipality may use this chapter for a venue
3-5 project relating to a venue and related infrastructure planned,
3-6 acquired, established, developed, constructed, or renovated under
3-7 other law, including Section 4B, Development Corporation Act of
3-8 1979 (Article 5190.6, Vernon's Texas Civil Statutes), or Subchapter
3-9 E, Chapter 451, Transportation Code.
3-10 Sec. 334.004. OTHER USES OF VENUE PERMITTED. This chapter
3-11 does not prohibit the use of a venue for an event that is not
3-12 related to a purpose described by Section 334.001, such as a
3-13 community-related event.
3-14 Sec. 334.005. SPECIFIC PERFORMANCE. (a) The legislature
3-15 expressly finds and determines that:
3-16 (1) the presence of a professional sports team in an
3-17 approved venue project built or renovated under this chapter
3-18 provides a unique value to the municipality or county that built or
3-19 renovated the project that cannot be adequately valued in money;
3-20 and
3-21 (2) the municipality or county that built or renovated
3-22 the approved venue project would suffer irreparable injury if a
3-23 professional sports team breaches its obligation to play its home
3-24 games in the approved venue project as required by an agreement
3-25 between the sports team and the municipality or county.
3-26 (b) An agreement described by Subsection (a)(2) shall be
3-27 enforceable by specific performance in the courts of this state. A
4-1 waiver of this remedy is contrary to public policy and is
4-2 unenforceable and void.
4-3 (Sections 334.006-334.020 reserved for expansion
4-4 SUBCHAPTER B. VENUE PROJECTS
4-5 Sec. 334.021. RESOLUTION AUTHORIZING PROJECT. (a) A county
4-6 or municipality by resolution may provide for the planning,
4-7 acquisition, establishment, development, construction, or
4-8 renovation of a venue project if:
4-9 (1) the comptroller determines under Section 334.022
4-10 or 334.023 that the implementation of the resolution will not have
4-11 a significant negative fiscal impact on state revenue;
4-12 (2) to the extent required by Section 334.0235 or
4-13 334.0236, a rapid transit authority determines that the
4-14 implementation of the resolution will not have a significant
4-15 negative impact on the authority's ability to provide services and
4-16 will not impair any existing contracts; and
4-17 (3) the resolution is approved by a majority of the
4-18 qualified voters of the municipality or county voting at an
4-19 election called and held for that purpose under Section 334.024.
4-20 (b) The resolution must designate each venue project and
4-21 each method of financing authorized by this chapter that the
4-22 municipality or county wants to use to finance a project. A
4-23 resolution may designate more than one method of financing.
4-24 Sec. 334.022. STATE FISCAL IMPACT ANALYSIS. (a) Before
4-25 calling an election on the resolution under Section 334.024, the
4-26 municipality or county shall send a copy of the resolution to the
4-27 comptroller.
5-1 (b) Before the 15th day after the date the comptroller
5-2 receives the copy of the resolution, the comptroller shall:
5-3 (1) perform an analysis to determine if approval and
5-4 implementation of the resolution will have a significant negative
5-5 fiscal impact on state revenue; and
5-6 (2) provide to the municipality or county written
5-7 notice of the results of the analysis.
5-8 (c) If the comptroller determines that implementation will
5-9 have a significant negative fiscal impact on state revenue, the
5-10 written analysis required under Subsection (b)(2) must include
5-11 information on how to change the resolution so that implementation
5-12 will not have a significant negative fiscal impact on state
5-13 revenue.
5-14 (d) If the comptroller does not complete the analysis and
5-15 provide the notice before the 30th day after the date the
5-16 comptroller receives the copy of the resolution, the comptroller is
5-17 considered to have determined that approval and implementation of
5-18 the resolution will not have a significant negative fiscal impact
5-19 on state revenue.
5-20 Sec. 334.023. APPEAL OF COMPTROLLER DETERMINATION. (a) If
5-21 the comptroller determines under Section 334.022 that
5-22 implementation of the resolution will have a significant negative
5-23 fiscal impact on state revenue, the municipality or county may
5-24 contest the finding by filing an appeal with the comptroller not
5-25 later than the 10th day after the date the municipality or county
5-26 receives the written notice under Section 334.022.
5-27 (b) Before the 11th day after the date the comptroller
6-1 receives the appeal under Subsection (a), the comptroller shall
6-2 perform a new analysis to determine if implementation of the
6-3 resolution will have a significant negative fiscal impact on state
6-4 revenue and provide to the municipality or county written notice
6-5 of the results of the analysis.
6-6 (c) If the comptroller again determines that implementation
6-7 will have a significant negative fiscal impact on state revenue,
6-8 the written analysis required under Subsection (b) must include
6-9 additional information on how to change the resolution so that
6-10 implementation will not have a significant negative fiscal impact
6-11 on state revenue.
6-12 (d) If the comptroller does not comply with Subsection (b)
6-13 before the 30th day after the date the comptroller receives the
6-14 appeal or request for information, the comptroller is considered to
6-15 have determined that approval and implementation of the resolution
6-16 will not have a significant negative fiscal impact on state
6-17 revenue.
6-18 Sec. 334.0235. TRANSPORTATION AUTHORITY IMPACT ANALYSIS.
6-19 (a) If the resolution contains a proposed sales and use tax under
6-20 Subchapter D, and imposition of the tax would result in the
6-21 reduction of the tax rate of a rapid transit authority created
6-22 under Chapter 451, Transportation Code, the municipality or county
6-23 shall send a copy of the resolution to the authority before calling
6-24 an election on the resolution under Section 334.024.
6-25 (b) Before the 30th day after the date the rapid transit
6-26 authority receives the copy of the resolution, the authority shall:
6-27 (1) perform an analysis to determine if implementation
7-1 of the proposed sales and use tax and the resulting reduction in
7-2 the authority's tax rate will:
7-3 (A) have a significant negative impact on the
7-4 authority's ability to provide services; or
7-5 (B) impair any existing contracts; and
7-6 (2) provide to the municipality or county written
7-7 notice of the results of the analysis.
7-8 (c) If the rapid transit authority determines that
7-9 implementation of the resolution will have a significant negative
7-10 impact on the authority's ability to provide services or will
7-11 impair any existing contracts, the written analysis required under
7-12 Subsection (b)(2) must include information on how to change the
7-13 resolution so that implementation will not have a significant
7-14 negative impact on the authority's ability to provide service or
7-15 will not impair any existing contracts.
7-16 (d) If the rapid transit authority does not complete the
7-17 analysis and provide the notice before the 30th day after the date
7-18 the authority receives the copy of the resolution, the authority is
7-19 considered to have determined that implementation of the resolution
7-20 will not have a significant negative impact on the authority's
7-21 ability to provide services and will not impair any existing
7-22 contracts.
7-23 Sec. 334.0236. APPEAL OF AUTHORITY DETERMINATION. (a) If a
7-24 rapid transit authority determines under Section 334.0235 that
7-25 implementation of the resolution will have a significant negative
7-26 impact on the authority's ability to provide services or will
7-27 impair an existing contract, the municipality or county may contest
8-1 the finding by filing an appeal with the authority not later than
8-2 the 10th day after the date the municipality or county receives the
8-3 written notice under Section 334.0235.
8-4 (b) Before the 11th day after the date the rapid transit
8-5 authority receives the appeal under Subsection (a), the authority
8-6 shall perform a new analysis to determine if implementation of the
8-7 resolution will have a significant negative impact on the
8-8 authority's ability to provide services or will impair an existing
8-9 contract and provide to the municipality or county written notice
8-10 of the results of the analysis.
8-11 (c) If the authority again determines that implementation
8-12 will have a significant negative impact on the authority's ability
8-13 to provide services or will impair an existing contract, the
8-14 written analysis required under Subsection (b) must include
8-15 additional information on how to change the resolution so that
8-16 implementation will not have a significant negative impact on the
8-17 authority's ability to provide services and will not impair an
8-18 existing contract.
8-19 (d) If the rapid transit authority does not comply with
8-20 Subsection (b) before the 11th day after the date the authority
8-21 receives the appeal or request for information, the authority is
8-22 considered to have determined that approval and implementation of
8-23 the resolution will not have a significant negative impact on the
8-24 authority's ability to provide services and will not impair any
8-25 existing contracts.
8-26 Sec. 334.024. ELECTION. (a) If the comptroller determines
8-27 under Section 334.022 or 334.023 that the implementation of the
9-1 resolution will not have a significant negative fiscal impact on
9-2 state revenue, and, if applicable, the rapid transit authority
9-3 determines under Section 334.0235 or 334.0236 that the
9-4 implementation will not have a significant negative impact on the
9-5 authority's ability to provide service and will not impair any
9-6 existing contracts, the governing body of the municipality or
9-7 county may order an election on the question of approving and
9-8 implementing the resolution.
9-9 (b) The order calling the election must:
9-10 (1) allow the voters to vote separately on each venue
9-11 project;
9-12 (2) designate the venue project;
9-13 (3) designate each method of financing authorized by
9-14 this chapter that the municipality or county wants to use to
9-15 finance the project and the maximum rate of each method; and
9-16 (4) allow the voters to vote, in the same proposition
9-17 or in separate propositions, on each method of financing authorized
9-18 by this chapter that the municipality or county wants to use to
9-19 finance the project and the maximum rate of each method.
9-20 (c) The ballot at the election held under this section must
9-21 be printed to permit voting for or against the proposition:
9-22 "Authorizing ________ (insert name of municipality or county) to
9-23 _______ (insert description of venue project) and to impose a
9-24 ________ tax at the rate of ________ (insert the type of tax and
9-25 the maximum rate of the tax) for the purpose of financing the venue
9-26 project."
9-27 (d) If more than one method of financing is to be voted on
10-1 in one proposition, the ballot must be printed to permit voting for
10-2 or against the proposition: "Authorizing ________ (insert name of
10-3 municipality or county) to ________ (insert description of venue
10-4 project) and to impose a ________ tax at the rate of _______
10-5 (insert each type of tax and the maximum rate of each tax) for the
10-6 purpose of financing the venue project."
10-7 (e) The Election Code governs an election held under this
10-8 chapter.
10-9 (Sections 334.025-334.040 reserved for expansion
10-10 SUBCHAPTER C. POWERS AND DUTIES
10-11 Sec. 334.041. GENERAL POWERS. (a) A municipality or county
10-12 may perform any act necessary to the full exercise of the
10-13 municipality's or county's powers under this chapter.
10-14 (b) A municipality or county may sell, lease, convey, or
10-15 otherwise dispose of property or an interest in property at fair
10-16 market value, including an approved venue project, under terms and
10-17 conditions determined by the municipality or county. A
10-18 municipality or county may acquire property or an interest in
10-19 property, including an approved venue project, under terms and
10-20 conditions determined by the municipality or county.
10-21 (c) A municipality or county may contract with a public or
10-22 private person, including a sports team, club, organization, or
10-23 other entity to:
10-24 (1) plan, acquire, establish, develop, construct, or
10-25 renovate an approved venue project; or
10-26 (2) perform any other act the municipality or county
10-27 is authorized to perform under this chapter, other than conducting
11-1 an election under this chapter.
11-2 (d) A municipality or county may contract with or enter into
11-3 an interlocal agreement with a school district, junior or community
11-4 college district, or an institution of higher education as defined
11-5 by Section 61.003, Education Code, for a purpose described by
11-6 Subsection (c). The contract or interlocal agreement may provide
11-7 for joint ownership and operation or joint use.
11-8 (e) A municipality or county may not use revenue derived
11-9 from ad valorem taxes to plan, acquire, establish, develop,
11-10 construct, operate, maintain, or renovate an approved venue
11-11 project.
11-12 Sec. 334.042. VENUE PROJECT FUND. (a) A municipality or
11-13 county in which an approved venue project is located shall
11-14 establish by resolution a fund known as the venue project fund.
11-15 The municipality or county shall establish separate accounts within
11-16 the fund for the various revenue sources.
11-17 (b) The municipality or county shall deposit into the venue
11-18 project fund:
11-19 (1) the proceeds of any tax imposed by the
11-20 municipality or county under this chapter;
11-21 (2) all revenue from the sale of bonds or other
11-22 obligations by the municipality or county under this chapter;
11-23 (3) money derived from the naming of the arena,
11-24 coliseum, stadium, or other type of area or facility;
11-25 (4) money derived from innovative funding concepts
11-26 such as the sale or lease of luxury boxes or the sale of licenses
11-27 for personal seats;
12-1 (5) any other revenue derived from the approved venue
12-2 project, including stadium rental payments and revenue from
12-3 concessions and parking; and
12-4 (6) any other money required by law to be deposited in
12-5 the fund.
12-6 (c) The municipality or county shall use money in the venue
12-7 project fund to:
12-8 (1) reimburse the municipality or county for or pay
12-9 the costs of planning, acquiring, establishing, developing,
12-10 constructing, or renovating one or more approved venue projects in
12-11 the municipality or county;
12-12 (2) pay the principal of, interest on, and other costs
12-13 relating to bonds or other obligations issued by the municipality
12-14 or county or to refund bonds, notes, or other obligations arising
12-15 from an approved venue project; or
12-16 (3) pay the costs of operating or maintaining one or
12-17 more approved venue projects.
12-18 (d) Money deposited into the venue project fund, including
12-19 money deposited under Subsection (b), is the property of the
12-20 municipality or county depositing the money.
12-21 Sec. 334.0425. BOOKS, RECORDS, AND PAPERS. The books,
12-22 records, and papers relating to an approved venue project and the
12-23 revenue used to finance the project are public information and
12-24 subject to disclosure under Chapter 552, Government Code, including
12-25 the books, records, and papers of:
12-26 (1) the municipality or county; and
12-27 (2) the owner, lessee, or operator of the project.
13-1 Sec. 334.043. BONDS AND OTHER OBLIGATIONS. (a) A
13-2 municipality or county in which an approved venue project is
13-3 located may issue bonds, including revenue bonds and refunding
13-4 bonds, or other obligations to pay the costs of the approved venue
13-5 project.
13-6 (b) The bonds or other obligations and the proceedings
13-7 authorizing the bonds or other obligations shall be submitted to
13-8 the attorney general for review and approval as required by Article
13-9 3, Chapter 53, Acts of the 70th Legislature, 2nd Called Session,
13-10 1987 (Article 717k-8, Vernon's Texas Civil Statutes).
13-11 (c) The bonds or other obligations must be payable from and
13-12 secured by the revenues in the venue project fund.
13-13 (d) The bonds or other obligations may mature serially or
13-14 otherwise not more than 30 years from their date of issuance.
13-15 (e) The bonds or other obligations are not a debt of and do
13-16 not create a claim for payment against the revenue or property of
13-17 the municipality or county other than the revenue sources pledged
13-18 and an approved venue project for which the bonds are issued.
13-19 Sec. 334.044. PUBLIC PURPOSE OF VENUE PROJECT. (a) The
13-20 legislature finds for all constitutional and statutory purposes
13-21 that an approved venue project is owned, used, and held for public
13-22 purposes by the municipality or county.
13-23 (b) Section 25.07(a), Tax Code, does not apply to a
13-24 leasehold or other possessory interest granted by the municipality
13-25 or county while the municipality or county owns the venue project.
13-26 (c) The venue project is exempt from taxation under Section
13-27 11.11, Tax Code, while the municipality or county owns the venue
14-1 project.
14-2 (d) If approval and implementation of a resolution under
14-3 this chapter results in the removal from a school district's
14-4 property tax rolls of real property otherwise subject to ad valorem
14-5 taxation, the operator of the approved venue project located on
14-6 that property shall pay to the school district on January 1 of each
14-7 year in which the project is in operation and in which the real
14-8 property is exempt from ad valorem taxation an amount equal to the
14-9 ad valorem taxes that would otherwise have been levied for the
14-10 preceding tax year on that real property by the school district,
14-11 without including the value of any improvements. This subsection
14-12 does not apply if the operator of the project is a political
14-13 subdivision of this state.
14-14 (Sections 334.045-334.080 reserved for expansion
14-15 SUBCHAPTER D. SALES AND USE TAX
14-16 Sec. 334.081. SALES AND USE TAX. (a) A municipality by
14-17 ordinance or a county by order may impose a sales and use tax under
14-18 this subchapter.
14-19 (b) A municipality by ordinance or a county by order may
14-20 repeal or decrease the rate of a tax imposed under this subchapter.
14-21 (c) A municipality or county may impose a tax under this
14-22 subchapter only if:
14-23 (1) an approved venue project is or is planned to be
14-24 located in the municipality or county; and
14-25 (2) the tax is approved at an election held under
14-26 Section 334.024.
14-27 Sec. 334.082. TAX CODE APPLICABLE. (a) Chapter 321, Tax
15-1 Code, governs the imposition, computation, administration,
15-2 collection, and remittance of a municipal tax authorized under this
15-3 subchapter except as inconsistent with this chapter.
15-4 (b) Chapter 323, Tax Code, governs the imposition,
15-5 computation, administration, collection, and remittance of a county
15-6 tax authorized under this subchapter except as inconsistent with
15-7 this chapter.
15-8 (c) Sections 321.101(b) and 323.101(b), Tax Code, do not
15-9 apply to the tax authorized by this subchapter.
15-10 Sec. 334.083. TAX RATE. (a) The rate of a tax adopted
15-11 under this subchapter must be one-eighth, one-fourth,
15-12 three-eighths, or one-half of one percent.
15-13 (b) The ballot proposition at the election held to adopt the
15-14 tax must specify the rate of the tax to be adopted.
15-15 Sec. 334.084. RATE INCREASE. (a) A municipality or county
15-16 that has adopted a sales and use tax under this subchapter at a
15-17 rate of less than one-half of one percent may by ordinance or order
15-18 increase the rate of the tax if the increase is approved by a
15-19 majority of the registered voters of that municipality or county
15-20 voting at an election called and held for that purpose.
15-21 (b) The tax may be increased under Subsection (a) in one or
15-22 more increments of one-eighth of one percent to a maximum of
15-23 one-half of one percent.
15-24 (c) The ballot for an election to increase the tax shall be
15-25 printed to permit voting for or against the proposition: "The
15-26 adoption of a sales and use tax for the purpose of financing
15-27 _______ (insert description of venue project) at the rate of
16-1 _______ of one percent (insert one-fourth, three-eighths, or
16-2 one-half, as appropriate)."
16-3 Sec. 334.085. IMPOSITION IN MUNICIPALITY OR COUNTY WITH
16-4 OTHER TAXING AUTHORITY. (a) In this section, "taxing authority"
16-5 means:
16-6 (1) a rapid transit authority created under Chapter
16-7 451, Transportation Code;
16-8 (2) a regional transportation authority created under
16-9 Chapter 452, Transportation Code;
16-10 (3) a crime control district created under the Crime
16-11 Control and Prevention District Act (Article 2370c-4, Vernon's
16-12 Texas Civil Statutes); or
16-13 (4) an industrial development corporation created
16-14 under Section 4A or 4B, Development Corporation Act of 1979
16-15 (Article 5190.6, Vernon's Texas Civil Statutes).
16-16 (b) If a municipality or county is included within the
16-17 boundaries of another taxing authority and the adoption or increase
16-18 of the tax under this subchapter would result in a combined tax
16-19 rate of more than two percent in any location in the municipality
16-20 or county, the election to approve or increase the tax under this
16-21 chapter is to be treated for all purposes as an election to reduce
16-22 the tax rate of the other taxing authority to the highest rate that
16-23 will not result in a combined tax rate of more than two percent in
16-24 any location in the municipality or county. If the municipality or
16-25 county is located within the boundaries of only one taxing
16-26 authority, and the adoption or increase of the tax under this
16-27 subchapter will result in a decrease of the tax rate of the taxing
17-1 authority, the ballot at an election to impose or increase the tax
17-2 must clearly state that the adoption or increase of the tax will
17-3 result in a reduction of the tax rate of the taxing authority. If
17-4 the municipality or county is included within the boundaries of
17-5 more than one taxing authority, the election to impose or increase
17-6 the tax under this subchapter must allow the voters to choose which
17-7 taxing authority's tax will be reduced.
17-8 (c) The rate of the tax imposed by the other taxing
17-9 authority is increased without further action of the board of the
17-10 authority or the voters of the authority, municipality, or county
17-11 on the date on which the tax imposed under this subchapter is
17-12 decreased or expires, but only to the extent that any tax imposed
17-13 by the authority was reduced under this section when the tax
17-14 imposed by the county was adopted or increased.
17-15 (d) This section does not permit a taxing authority to
17-16 impose taxes at differential tax rates within the territory of the
17-17 authority.
17-18 Sec. 334.086. IMPOSITION OF TAX. (a) If the municipality
17-19 or county adopts the tax, a tax is imposed on the receipts from the
17-20 sale at retail of taxable items in the municipality or county at
17-21 the rate approved at the election.
17-22 (b) There is also imposed an excise tax on the use, storage,
17-23 or other consumption in the municipality or county of tangible
17-24 personal property purchased, leased, or rented from a retailer
17-25 during the period that the tax is effective in the municipality or
17-26 county. The rate of the excise tax is the same as the rate of the
17-27 sales tax portion of the tax and is applied to the sale price of
18-1 the tangible personal property.
18-2 Sec. 334.087. EFFECTIVE DATE OF TAX. The adoption of the
18-3 tax or the change of the tax rate takes effect on the first day of
18-4 the first calendar quarter occurring after the expiration of the
18-5 first complete quarter occurring after the date on which the
18-6 comptroller receives a notice of the results of the election
18-7 adopting or increasing the tax or of the ordinance or order
18-8 decreasing the tax.
18-9 Sec. 334.088. DEPOSIT OF TAX REVENUES. (a) Revenue from
18-10 the tax imposed under this subchapter shall be deposited in the
18-11 venue project fund of the municipality or county imposing the tax.
18-12 (b) Notwithstanding Section 334.042, if the municipality or
18-13 county is included within the boundaries of a rapid transit
18-14 authority created under Chapter 451, Transportation Code, and the
18-15 adoption or increase of the tax under this subchapter results in a
18-16 reduction of the tax rate of the authority, the municipality or
18-17 county may use revenue from the tax imposed under this subchapter
18-18 only for a purpose for which the authority could have used the
18-19 revenue.
18-20 Sec. 334.089. ABOLITION OF TAX. (a) A sales and use tax
18-21 imposed under this subchapter may not be collected after the last
18-22 day of the first calendar quarter occurring after notification to
18-23 the comptroller by the municipality or county that the municipality
18-24 or county has abolished the tax or that all bonds or other
18-25 obligations of the municipality or county that are payable in whole
18-26 or in part from money in the venue project fund, including any
18-27 refunding bonds or other obligations, have been paid in full or the
19-1 full amount of money, exclusive of guaranteed interest, necessary
19-2 to pay in full the bonds and other obligations has been set aside
19-3 in a trust account dedicated to the payment of the bonds and other
19-4 obligations.
19-5 (b) The municipality or county shall notify the comptroller
19-6 of the expiration of the tax not later than the 60th day before the
19-7 expiration date.
19-8 (Sections 334.090-334.100 reserved for expansion
19-9 SUBCHAPTER E. SHORT-TERM MOTOR VEHICLE RENTAL TAX
19-10 Sec. 334.101. DEFINITIONS. (a) In this subchapter:
19-11 (1) "Motor vehicle" means a self-propelled vehicle
19-12 designed principally to transport persons or property on a public
19-13 roadway and includes a passenger car, van, station wagon, sports
19-14 utility vehicle, and truck. The term does not include a:
19-15 (A) trailer, semitrailer, house trailer, truck
19-16 having a manufacturer's rating of more than one-half ton, or
19-17 road-building machine;
19-18 (B) device moved only by human power;
19-19 (C) device used exclusively on stationary rails
19-20 or tracks;
19-21 (D) farm machine; or
19-22 (E) mobile office.
19-23 (2) "Rental" means an agreement by the owner of a
19-24 motor vehicle to authorize for not longer than 30 days the
19-25 exclusive use of that vehicle to another for consideration.
19-26 (3) "Place of business of the owner" means an
19-27 established outlet, office, or location operated by the owner of a
20-1 motor vehicle or the owner's agent or employee for the purpose of
20-2 renting motor vehicles and includes any location at which three or
20-3 more rentals are made during a year.
20-4 (b) Except as provided by Subsection (a), words used in this
20-5 subchapter and defined by Chapter 152, Tax Code, have the meanings
20-6 assigned by Chapter 152, Tax Code.
20-7 Sec. 334.102. TAX AUTHORIZED. (a) A municipality by
20-8 ordinance or a county by order may impose a tax on the rental in
20-9 the municipality or county of a motor vehicle.
20-10 (b) A municipality by ordinance or a county by order may
20-11 repeal or decrease the rate of a tax imposed under Subsection (a).
20-12 (c) A municipality or county may impose a tax under this
20-13 subchapter only if:
20-14 (1) an approved venue project is or is planned to be
20-15 located in the municipality or county; and
20-16 (2) the tax is approved at an election held under
20-17 Section 334.024.
20-18 Sec. 334.103. SHORT-TERM RENTAL TAX. (a) The tax
20-19 authorized by this subchapter is imposed at a rate in increments of
20-20 one-eighth of one percent, not to exceed 10 percent, on the gross
20-21 rental receipts from the rental in the municipality or county of a
20-22 motor vehicle.
20-23 (b) The ballot proposition at the election held to adopt the
20-24 tax must specify the maximum rate of the tax to be adopted.
20-25 Sec. 334.104. RATE INCREASE. (a) A municipality or county
20-26 that has adopted a tax under this subchapter at a rate of less than
20-27 10 percent may by ordinance or order increase the rate of the tax
21-1 to a maximum of 10 percent if the increase is approved by a
21-2 majority of the registered voters of that municipality or county
21-3 voting at an election called and held for that purpose.
21-4 (b) The ballot for an election to increase the rate of the
21-5 tax shall be printed to permit voting for or against the
21-6 proposition: "The increase of the motor vehicle rental tax for the
21-7 purpose of financing _____ (insert description of venue project) to
21-8 a maximum rate of _______ percent (insert new maximum rate not to
21-9 exceed 10 percent)."
21-10 Sec. 334.105. COMPUTATION OF TAX. (a) The owner of a motor
21-11 vehicle subject to the tax imposed under this subchapter shall
21-12 collect the tax for the benefit of the municipality or county.
21-13 (b) The owner shall add the short-term motor vehicle rental
21-14 tax imposed by the municipality or county under this subchapter, if
21-15 applicable, and the gross rental receipts tax imposed by Chapter
21-16 152, Tax Code, to the rental charge, and the sum of the taxes is a
21-17 part of the rental charge, is a debt owed to the motor vehicle
21-18 owner by the person renting the vehicle, and is recoverable at law
21-19 in the same manner as the rental charge.
21-20 Sec. 334.106. CONSUMMATION OF RENTAL. A rental of a motor
21-21 vehicle occurs in the municipality or county in which transfer of
21-22 possession of the motor vehicle occurs.
21-23 Sec. 334.107. SHORT-TERM TAX INAPPLICABLE WHEN NO STATE TAX.
21-24 The tax authorized by this subchapter does not apply to the gross
21-25 receipts from the rental of a motor vehicle unless the tax imposed
21-26 by Chapter 152, Tax Code, also applies to the rental.
21-27 Sec. 334.108. EXEMPTIONS APPLICABLE. The exemptions
22-1 provided by Subchapter E, Chapter 152, Tax Code, apply to the tax
22-2 authorized by this subchapter.
22-3 Sec. 334.109. NOTICE OF TAX. Each bill or other receipt for
22-4 a rental subject to the tax imposed under this subchapter must
22-5 contain a statement in a conspicuous location stating: "_______
22-6 (insert name of taxing municipality or county) requires that an
22-7 additional tax of ____ percent (insert rate of tax) be imposed on
22-8 each motor vehicle rental for the purpose of financing ______
22-9 (describe approved venue project)."
22-10 Sec. 334.110. GROSS RECEIPTS PRESUMED SUBJECT TO TAX. All
22-11 gross receipts of an owner of a motor vehicle from the rental of
22-12 the motor vehicle are presumed to be subject to the tax imposed by
22-13 this subchapter, except for gross receipts for which the owner has
22-14 accepted in good faith a properly completed exemption certificate.
22-15 Sec. 334.111. RECORDS. (a) The owner of a motor vehicle
22-16 used for rental purposes shall keep for four years records and
22-17 supporting documents containing the following information on the
22-18 amount of:
22-19 (1) gross rental receipts received from the rental of
22-20 the motor vehicle; and
22-21 (2) the tax imposed under this subchapter and paid to
22-22 the municipality or county on each motor vehicle used for rental
22-23 purposes by the owner.
22-24 (b) Mileage records are not required.
22-25 Sec. 334.112. FAILURE TO KEEP RECORDS. (a) An owner of a
22-26 motor vehicle commits an offense if the owner fails to make and
22-27 retain complete records for the four-year period required by
23-1 Section 334.111.
23-2 (b) An offense under this section is a misdemeanor
23-3 punishable by a fine of not less than $25 or more than $500.
23-4 Sec. 334.113. EFFECTIVE DATE AND ENDING DATE OF TAX. (a) A
23-5 tax imposed under this subchapter or a change in the tax rate takes
23-6 effect on the date prescribed by the ordinance or order imposing
23-7 the tax or changing the rate.
23-8 (b) A municipality or county may impose a tax under this
23-9 subchapter only if the municipality or county issues bonds or other
23-10 obligations under Section 334.043. The municipality or county may
23-11 impose the tax only while those bonds or other obligations are
23-12 outstanding and unpaid.
23-13 Sec. 334.114. TAX COLLECTION; PENALTY. (a) The owner of a
23-14 motor vehicle required to collect the tax imposed under this
23-15 subchapter shall report and send the taxes collected to the
23-16 municipality or county as provided by the ordinance or order
23-17 imposing the tax.
23-18 (b) A municipality by ordinance or a county by order may
23-19 prescribe penalties, including interest charges, for failure to
23-20 keep records required by the municipality or county, to report when
23-21 required, or to pay the tax when due.
23-22 (c) The attorney acting for the municipality or county may
23-23 bring suit against a person who fails to collect a tax under this
23-24 subchapter and to pay it over to the municipality or county as
23-25 required.
23-26 Sec. 334.115. COLLECTION PROCEDURES ON PURCHASE OF MOTOR
23-27 VEHICLE RENTAL BUSINESS. (a) If the owner of a motor vehicle
24-1 rental business that makes rentals subject to the tax imposed by
24-2 this subchapter sells the business, the successor to the seller or
24-3 the seller's assignee shall withhold an amount of the purchase
24-4 price sufficient to pay the amount of tax due until the seller
24-5 provides a receipt by a person designated by the municipality or
24-6 county to provide the receipt showing that the amount has been paid
24-7 or a certificate showing that no tax is due.
24-8 (b) The purchaser of a motor vehicle rental business who
24-9 fails to withhold an amount of the purchase price as required by
24-10 this section is liable for the amount required to be withheld to
24-11 the extent of the value of the purchase price.
24-12 (c) The purchaser of a motor vehicle rental business may
24-13 request that the person designated by the municipality or county to
24-14 provide a receipt under Subsection (a) issue a certificate stating
24-15 that no tax is due or issue a statement of the amount required to
24-16 be paid before a certificate may be issued. The person designated
24-17 by the municipality or county shall issue the certificate or
24-18 statement not later than the 60th day after the date the person
24-19 receives the request.
24-20 (d) If the person designated by the municipality or county
24-21 to provide a receipt under Subsection (a) fails to issue the
24-22 certificate or statement within the period provided by Subsection
24-23 (c), the purchaser is released from the obligation to withhold the
24-24 purchase price or pay the amount due.
24-25 Sec. 334.116. DEPOSIT OF TAX REVENUE. Revenue from the tax
24-26 imposed under this subchapter shall be deposited in the venue
24-27 project fund of the municipality or county imposing the tax.
25-1 (Sections 334.117-334.150 reserved for expansion
25-2 SUBCHAPTER F. ADMISSIONS TAX
25-3 Sec. 334.151. TAX AUTHORIZED. (a) A municipality by
25-4 ordinance or a county by order may impose a tax on each person
25-5 admitted to an event at an approved venue project in the
25-6 municipality or county for which the municipality or county has
25-7 issued bonds to plan, acquire, establish, develop, construct, or
25-8 renovate the approved venue project.
25-9 (b) The municipality or county may not impose the tax under
25-10 this subchapter for admission to an event at a venue that is not an
25-11 approved venue project or for which the municipality or county has
25-12 not issued bonds to plan, acquire, establish, develop, construct,
25-13 or renovate the approved venue project.
25-14 (c) A municipality or county may impose a tax under this
25-15 subchapter only if:
25-16 (1) an approved venue project is or will be located in
25-17 the municipality or county; and
25-18 (2) the tax is approved at an election held under
25-19 Section 334.024.
25-20 Sec. 334.152. TAX RATE. (a) The tax authorized by this
25-21 subchapter is imposed at the tax rate on each ticket sold as
25-22 admission to an event held at an approved venue.
25-23 (b) The amount of the tax may be imposed at any uniform
25-24 percentage not to exceed 10 percent of the price of the ticket sold
25-25 as admission to an event held at an approved venue.
25-26 (c) The ballot proposition at the election held to adopt the
25-27 tax must specify the maximum rate of the tax to be adopted.
26-1 (d) The municipality by ordinance or the county by order may
26-2 repeal or decrease the rate of the tax imposed under this
26-3 subchapter.
26-4 Sec. 334.153. RATE INCREASE. (a) A municipality or county
26-5 that has adopted a tax under this subchapter at the rate of less
26-6 than the maximum percentage allowed by this subchapter may by
26-7 ordinance or order increase the rate of the tax to the maximum
26-8 percentage allowed by this subchapter if the increase is approved
26-9 by a majority of the registered voters of that municipality or
26-10 county voting at an election called and held for that purpose.
26-11 (b) The ballot for an election to increase the rate of the
26-12 tax shall be printed to permit voting for or against the
26-13 proposition: "The increase of the admissions tax for the purpose
26-14 of financing _______ (insert description of venue project) to a
26-15 maximum rate of ________ percent of the price of each ticket sold
26-16 as admission to an event held at an approved venue (insert new
26-17 maximum rate not to exceed 10 percent of the price of each ticket
26-18 sold as admission to an event held at an approved venue)."
26-19 Sec. 334.154. COLLECTION. (a) The municipality by
26-20 ordinance or the county by order may require the owner or lessee of
26-21 an approved venue project in the municipality or county to collect
26-22 the tax for the benefit of the municipality or county.
26-23 (b) An owner or lessee required to collect the tax under
26-24 this section shall add the tax to the admissions price, and the tax
26-25 is a part of the admissions price, a debt owed to the owner or
26-26 lessee of the approved venue project by the person admitted, and
26-27 recoverable at law in the same manner as the admissions charge.
27-1 (c) The tax imposed by this subchapter is not an occupation
27-2 tax imposed on the owner or lessee of the approved venue project.
27-3 Sec. 334.155. EFFECTIVE DATE AND ENDING DATE OF TAX. (a) A
27-4 tax imposed under this subchapter or a change in a tax rate takes
27-5 effect on the date prescribed by the ordinance or order imposing
27-6 the tax or changing the rate.
27-7 (b) A municipality or county may impose a tax under this
27-8 subchapter only if the municipality or county issues bonds or other
27-9 obligations under Section 334.043. The municipality or county may
27-10 impose the tax only while those bonds or other obligations are
27-11 outstanding and unpaid.
27-12 Sec. 334.156. COLLECTION OF TAX. (a) A person required to
27-13 collect a tax imposed under this subchapter shall report and send
27-14 the taxes to the municipality or county as provided by the
27-15 municipality or county imposing the tax.
27-16 (b) A municipality by ordinance or a county by order may
27-17 prescribe penalties, including interest charges, for failure to
27-18 keep records required by the municipality or county, to report when
27-19 required, or to pay the tax when due. The attorney acting for the
27-20 municipality or county may bring suit against a person who fails to
27-21 collect a tax under this subchapter and to pay it over to the
27-22 municipality or county as required.
27-23 Sec. 334.157. DEPOSIT OF TAX REVENUE. Revenue from the tax
27-24 imposed under this subchapter shall be deposited in the venue
27-25 project fund of the municipality or county imposing the tax.
28-1 (Sections 334.158-334.200 reserved for expansion
28-2 SUBCHAPTER G. PARKING TAX
28-3 Sec. 334.201. EVENT PARKING TAX. (a) A municipality by
28-4 ordinance or a county by order may impose a tax on each motor
28-5 vehicle parking in a parking facility of an approved venue project.
28-6 (b) The municipality or county may impose the tax during a
28-7 period beginning not more than three hours before and ending not
28-8 more than three hours after the time an event in an approved venue
28-9 project is scheduled to begin. The municipality or county may not
28-10 impose the tax under this subchapter during any other time.
28-11 (c) A municipality or county may impose a tax under this
28-12 subchapter only if the tax is approved at an election held under
28-13 Section 334.024.
28-14 Sec. 334.202. TAX RATE. (a) The municipality by ordinance
28-15 or the county by order may provide that the tax is imposed at a
28-16 flat amount on each parked motor vehicle or is imposed as a
28-17 percentage of the amount charged for event parking by the owner or
28-18 lessee of the parking facility.
28-19 (b) Regardless of the method of imposition, the amount of
28-20 the tax may not exceed $3 for each motor vehicle.
28-21 (c) The ballot proposition at the election held to adopt the
28-22 tax must specify the maximum rate of the tax to be adopted.
28-23 (d) The municipality by ordinance or the county by order may
28-24 repeal or decrease the rate of the tax imposed under this section.
28-25 Sec. 334.203. RATE INCREASE. (a) A municipality or county
28-26 that has adopted a tax under this subchapter at a rate of less than
28-27 $3 a vehicle may by ordinance or order increase the rate of the tax
29-1 to a maximum of $3 a vehicle if the increase is approved by a
29-2 majority of the registered voters of that municipality or county
29-3 voting at an election called and held for that purpose.
29-4 (b) The ballot for an election to increase the rate of the
29-5 tax shall be printed to permit voting for or against the
29-6 proposition: "The increase of the parking tax for the purpose of
29-7 financing _______ (insert description of venue project) to a
29-8 maximum rate of _______ (insert new maximum rate not to exceed
29-9 $3)."
29-10 Sec. 334.204. COLLECTION. (a) The municipality by
29-11 ordinance or the county by order may require the owner or lessee of
29-12 a parking facility to collect the tax for the benefit of the
29-13 municipality or county.
29-14 (b) An owner or lessee required to collect the tax under
29-15 this section shall add the tax to the parking charge, and the tax
29-16 is a part of the parking charge, a debt owed to the parking
29-17 facility owner or lessee by the person parking, and recoverable at
29-18 law in the same manner as the parking charge.
29-19 (c) The tax imposed by this subchapter is not an occupation
29-20 tax imposed on the owner or lessee of the parking facility.
29-21 Sec. 334.205. EFFECTIVE DATE AND ENDING DATE OF TAX. (a) A
29-22 tax imposed under this subchapter or a change in the tax rate takes
29-23 effect on the date prescribed by the ordinance or order imposing
29-24 the tax or changing the rate.
29-25 (b) A municipality or county may impose a tax under this
29-26 subchapter only if the municipality or county issues bonds or other
29-27 obligations under Section 334.043. The municipality or county may
30-1 impose the tax only while those bonds or other obligations are
30-2 outstanding and unpaid.
30-3 Sec. 334.206. COLLECTION OF TAX. (a) A person required to
30-4 collect a tax imposed under this subchapter shall report and send
30-5 the taxes to the municipality or county as provided by the
30-6 municipality or county imposing the tax.
30-7 (b) A municipality by ordinance or a county by order may
30-8 prescribe penalties, including interest charges, for failure to
30-9 keep records required by the municipality or county, to report when
30-10 required, or to pay the tax when due. The attorney acting for the
30-11 municipality or county may bring suit against a person who fails to
30-12 collect a tax under this subchapter and to pay it over to the
30-13 municipality or county as required.
30-14 Sec. 334.207. DEPOSIT OF TAX REVENUE. Revenue from the tax
30-15 imposed under this subchapter shall be deposited in the venue
30-16 project fund of the municipality or county imposing the tax.
30-17 (Sections 334.208-334.300 reserved for expansion
30-18 SUBCHAPTER H. FACILITY USE TAX
30-19 Sec. 334.301. DEFINITION. In this subchapter, "major league
30-20 team" means a team that is a member of the National Football
30-21 League, National Basketball Association, or National Hockey League
30-22 or a major league baseball team or any other professional team.
30-23 Sec. 334.302. TAX AUTHORIZED. (a) A municipality by
30-24 ordinance or a county by order may impose a facility use tax on
30-25 each member of a major league team that plays a professional sports
30-26 game in an approved venue project in the municipality or county
30-27 for which the municipality or county has issued bonds to plan,
31-1 acquire, establish, develop, construct, or renovate the approved
31-2 venue project.
31-3 (b) The municipality or county may not impose the facility
31-4 use tax under this subchapter for a professional sports game at a
31-5 venue that is not an approved venue project or for which the
31-6 municipality or county has not issued bonds to plan, acquire,
31-7 establish, develop, construct, or renovate the approved venue
31-8 project.
31-9 (c) A municipality or county may impose a tax under this
31-10 subchapter only if:
31-11 (1) an approved venue project is or will be located in
31-12 the municipality or county; and
31-13 (2) the tax is approved at an election held under
31-14 Section 334.024.
31-15 Sec. 334.303. TAX RATE. (a) The tax authorized by this
31-16 subchapter is imposed at the tax rate on each member of the
31-17 professional sports team for each professional game the member
31-18 plays at the approved venue project.
31-19 (b) The amount of the tax may be imposed at any uniform
31-20 monetary amount not to exceed $5,000 a game.
31-21 (c) The ballot proposition at the election held to adopt the
31-22 tax must specify the maximum rate of the tax to be adopted.
31-23 (d) The municipality by ordinance or the county by order may
31-24 repeal or decrease the rate of the tax imposed under this
31-25 subchapter.
31-26 Sec. 334.304. RATE INCREASE. (a) A municipality or county
31-27 that has adopted a tax under this subchapter at the rate of less
32-1 than $5,000 a game may by ordinance or order increase the rate of
32-2 the tax to a maximum of $5,000 a game if the increase is approved
32-3 by a majority of the registered voters of that municipality or
32-4 county voting at an election called and held for that purpose.
32-5 (b) The ballot for an election to increase the rate of the
32-6 tax shall be printed to permit voting for or against the
32-7 proposition: "The increase of the facility use tax for the purpose
32-8 of financing _______ (insert description of venue project) to a
32-9 maximum rate of ________ a game (insert new maximum rate not to
32-10 exceed $5,000)."
32-11 Sec. 334.305. COLLECTION. (a) The municipality by
32-12 ordinance or the county by order may require the owner or lessee of
32-13 an approved venue project in the municipality or county to collect
32-14 the tax for the benefit of the municipality or county.
32-15 (b) The tax imposed by this subchapter is a debt owed to the
32-16 owner or lessee of the approved venue project by the team member
32-17 and recoverable at law.
32-18 (c) The tax imposed by this subchapter is not an occupation
32-19 tax imposed on the owner or lessee of the approved venue project
32-20 or on the professional sports team member.
32-21 Sec. 334.306. EFFECTIVE DATE AND ENDING DATE OF TAX. (a) A
32-22 tax imposed under this subchapter or a change in a tax rate takes
32-23 effect on the date prescribed by the ordinance or order imposing
32-24 the tax or changing the rate.
32-25 (b) A municipality or county may impose a tax under this
32-26 subchapter only if the municipality or county issues bonds or other
32-27 obligations under Section 334.043. The municipality or county may
33-1 impose the tax only while those bonds or other obligations are
33-2 outstanding and unpaid.
33-3 Sec. 334.307. COLLECTION OF TAX. (a) A person required to
33-4 collect a tax imposed under this subchapter shall report and send
33-5 the taxes to the municipality or county as provided by the
33-6 municipality or county imposing the tax.
33-7 (b) A municipality by ordinance or a county by order may
33-8 prescribe penalties, including interest charges, for failure to
33-9 keep records required by the municipality or county, to report when
33-10 required, or to pay the tax when due. The attorney acting for the
33-11 municipality or county may bring suit against a person who fails
33-12 to collect a tax under this subchapter and to pay it over to the
33-13 municipality or county as required.
33-14 Sec. 334.308. DEPOSIT OF TAX REVENUE. Revenue from the tax
33-15 imposed under this subchapter shall be deposited in the venue
33-16 project fund of the municipality or county imposing the tax.
33-17 (Sections 334.309-334.350 reserved for expansion
33-18 SUBCHAPTER I. ATHLETIC EVENTS IN CERTAIN MUNICIPALITIES
33-19 Sec. 334.351. DEFINITION. In this subchapter, "athletic
33-20 event" means a postseason intercollegiate athletic football bowl
33-21 game that is held annually.
33-22 Sec. 334.352. APPLICATION OF SUBCHAPTER. This subchapter
33-23 applies only to a municipality with a population of more than
33-24 500,000 that is located in a county that borders the United Mexican
33-25 States.
33-26 Sec. 334.353. SHORT-TERM MOTOR VEHICLE RENTAL TAX. (a)
33-27 Notwithstanding any other provision of this chapter, a municipality
34-1 to which this subchapter applies may impose by ordinance a tax on
34-2 the rental in the municipality of a motor vehicle.
34-3 (b) The municipality may impose the tax only if the tax is
34-4 approved at an election called and held for that purpose.
34-5 (c) Except as otherwise provided by this subchapter,
34-6 Subchapter E applies to the tax imposed under this subchapter.
34-7 Sec. 334.354. USE OF REVENUE. Notwithstanding any other
34-8 provision of this chapter, the municipality may use revenue from
34-9 the tax to:
34-10 (1) pay the costs of collecting the tax;
34-11 (2) operate one or more athletic events in the
34-12 municipality; and
34-13 (3) pay costs associated with an athletic event in the
34-14 municipality, including paying the costs of planning, acquiring,
34-15 establishing, developing, advertising, promoting, conducting,
34-16 sponsoring, or otherwise supporting the event.
34-17 CHAPTER 335. SPORTS AND COMMUNITY VENUE DISTRICTS
34-18 SUBCHAPTER A. GENERAL PROVISIONS
34-19 Sec. 335.001. DEFINITIONS. In this chapter:
34-20 (1) "Approved venue project" has the meaning assigned
34-21 by Section 334.001, except that the approval of the project must
34-22 occur under this chapter.
34-23 (2) "Board" means the board of directors of a venue
34-24 district.
34-25 (3) "District" means a venue district created under
34-26 this chapter.
34-27 (4) "Related infrastructure" has the meaning assigned
35-1 by Section 334.001.
35-2 (5) "Venue" has the meaning assigned by Section
35-3 334.001.
35-4 (6) "Venue project" has the meaning assigned by
35-5 Section 334.001, except that the actions described by that section
35-6 must occur under this chapter.
35-7 Sec. 335.002. APPLICATION TO VENUE CONSTRUCTED UNDER OTHER
35-8 LAW. A district may use this chapter for a venue project relating
35-9 to a venue and related infrastructure planned, acquired,
35-10 established, developed, constructed, or renovated under other law,
35-11 including Section 4B, Development Corporation Act of 1979 (Article
35-12 5190.6, Vernon's Texas Civil Statutes), or Subchapter E, Chapter
35-13 451, Transportation Code.
35-14 Sec. 335.003. OTHER USES OF VENUE PERMITTED. This chapter
35-15 does not prohibit the use of a venue for an event that is not
35-16 related to a purpose described by Section 334.001, such as a
35-17 community-related event.
35-18 Sec. 335.004. SPECIFIC PERFORMANCE. (a) The legislature
35-19 expressly finds and determines that:
35-20 (1) the presence of a professional sports team in an
35-21 approved venue project built or renovated under this chapter
35-22 provides a unique value to the district that built or renovated the
35-23 project and to each political subdivision that created the district
35-24 that cannot be adequately valued in money; and
35-25 (2) the district that built or renovated the approved
35-26 venue project and each political subdivision that created the
35-27 district would suffer irreparable injury if a professional sports
36-1 team breaches its obligation to play its home games in the approved
36-2 venue project as required by an agreement between the sports team
36-3 and the district.
36-4 (b) An agreement described by Subsection (a)(2) shall be
36-5 enforceable by specific performance in the courts of this state. A
36-6 waiver of this remedy is contrary to public policy and is
36-7 unenforceable and void.
36-8 (Sections 335.005-335.020 reserved for expansion
36-9 SUBCHAPTER B. VENUE DISTRICT
36-10 Sec. 335.021. CREATION. Two or more counties, two or more
36-11 municipalities, or a combination of municipalities, counties, or
36-12 municipalities and counties may create a venue district under this
36-13 chapter to plan, acquire, establish, develop, construct, or
36-14 renovate one or more venue projects in the district subject to
36-15 voter approval under Subchapter D.
36-16 Sec. 335.022. ORDER CREATING DISTRICT. Two or more
36-17 counties, two or more municipalities, or a combination of
36-18 municipalities, counties, or municipalities and counties may create
36-19 a district under this chapter by adopting concurrent orders. A
36-20 concurrent order must:
36-21 (1) contain identical provisions;
36-22 (2) define the boundaries of the district to be
36-23 coextensive with each creating political subdivision; and
36-24 (3) designate the number of directors, the manner of
36-25 appointment, and the manner in which the chair will be appointed in
36-26 accordance with Section 335.031.
36-27 Sec. 335.023. POLITICAL SUBDIVISION; OPEN MEETINGS. (a) A
37-1 district is a political subdivision of the creating political
37-2 subdivisions and of this state.
37-3 (b) A district is subject to Chapter 551, Government Code.
37-4 (Sections 335.024-335.030 reserved for expansion)
37-5 SUBCHAPTER C. BOARD OF DIRECTORS
37-6 Sec. 335.031. COMPOSITION AND APPOINTMENT OF BOARD. (a) A
37-7 district is governed by a board of at least four directors.
37-8 (b) The board is appointed by the mayors or county judges,
37-9 or both as appropriate, of the political subdivisions that create
37-10 the district in accordance with the concurrent order.
37-11 (c) Directors serve staggered two-year terms. A director
37-12 may be removed by the appointing mayor or county judge at any time
37-13 without cause. Successor directors are appointed in the same
37-14 manner as the original appointees.
37-15 (d) To qualify to serve as a director, a person must be a
37-16 resident of the appointing political subdivision. An employee,
37-17 officer, or member of the governing body of the appointing
37-18 political subdivision may serve as a director, but may not have a
37-19 personal interest in a contract executed by the district other than
37-20 as an employee, officer, or member of the governing body of the
37-21 political subdivision.
37-22 Sec. 335.032. COMPENSATION. A board member is not entitled
37-23 to compensation, but is entitled to reimbursement for actual and
37-24 necessary expenses.
37-25 Sec. 335.033. MEETINGS. The board shall conduct its
37-26 meetings in the district.
37-27 Sec. 335.034. OFFICERS. The presiding officer is designated
38-1 as provided by the concurrent order. The board shall designate
38-2 from the members of the board a secretary and other officers the
38-3 board considers necessary.
38-4 (Sections 335.035-335.050 reserved for expansion
38-5 SUBCHAPTER D. VENUE PROJECTS
38-6 Sec. 335.051. RESOLUTION AUTHORIZING PROJECT. (a) A
38-7 district by resolution may provide for the planning, acquisition,
38-8 establishment, development, construction, or renovation of a venue
38-9 project if:
38-10 (1) the comptroller determines under Section 335.052
38-11 or 335.053 that the implementation of the resolution will not have
38-12 a significant negative fiscal impact on state revenue;
38-13 (2) to the extent required by Section 335.0535 or
38-14 335.0536, a rapid transit authority determines that the
38-15 implementation of the resolution will not have a significant
38-16 negative impact on the authority's ability to provide services and
38-17 will not impair any existing contracts; and
38-18 (3) the resolution is approved by a majority of the
38-19 qualified voters of each political subdivision that created the
38-20 district voting at separate elections called and held for that
38-21 purpose under Section 335.054.
38-22 (b) The resolution must designate each venue project and
38-23 each method of financing authorized by this chapter that the
38-24 district wants to use to finance a project. A resolution may
38-25 designate more than one method of financing.
38-26 Sec. 335.052. STATE FISCAL IMPACT ANALYSIS. (a) Before
38-27 calling an election on the resolution under Section 335.054, the
39-1 district shall send a copy of the resolution to the comptroller.
39-2 (b) Before the 15th day after the date the comptroller
39-3 receives the copy of the resolution, the comptroller shall:
39-4 (1) perform an analysis to determine if approval and
39-5 implementation of the resolution will have a significant negative
39-6 fiscal impact on state revenue; and
39-7 (2) provide to the district written notice of the
39-8 results of the analysis.
39-9 (c) If the comptroller determines that implementation will
39-10 have a significant negative fiscal impact on state revenue, the
39-11 written analysis required under Subsection (b)(2) must include
39-12 information on how to change the resolution so that implementation
39-13 will not have a significant negative fiscal impact on state
39-14 revenue.
39-15 (d) If the comptroller does not complete the analysis and
39-16 provide the notice before the 30th day after the date the
39-17 comptroller receives the copy of the resolution, the comptroller is
39-18 considered to have determined that approval and implementation of
39-19 the resolution will not have a significant negative fiscal impact
39-20 on state revenue.
39-21 Sec. 335.053. APPEAL OF COMPTROLLER DETERMINATION. (a) If
39-22 the comptroller determines under Section 335.052 that
39-23 implementation of the resolution will have a significant negative
39-24 fiscal impact on state revenue, the district may contest the
39-25 finding by filing an appeal with the comptroller not later than the
39-26 10th day after the date the district receives the written notice
39-27 under Section 335.052.
40-1 (b) Before the 11th day after the date the comptroller
40-2 receives the appeal under Subsection (a), the comptroller shall
40-3 perform a new analysis to determine if implementation of the
40-4 resolution will have a significant negative fiscal impact on state
40-5 revenue and provide to the district written notice of the results
40-6 of the analysis.
40-7 (c) If the comptroller again determines that implementation
40-8 will have a significant negative fiscal impact on state revenue,
40-9 the written analysis required under Subsection (b) must include
40-10 additional information on how to change the resolution so that
40-11 implementation will not have a significant negative fiscal impact
40-12 on state revenue.
40-13 (d) If the comptroller does not comply with Subsection (b)
40-14 before the 30th day after the date the comptroller receives the
40-15 appeal or request for information, the comptroller is considered to
40-16 have determined that approval and implementation of the resolution
40-17 will not have a significant negative fiscal impact on state
40-18 revenue.
40-19 Sec. 335.0535. TRANSPORTATION AUTHORITY IMPACT ANALYSIS.
40-20 (a) If the resolution contains a proposed sales and use tax under
40-21 Subchapter D, Chapter 334, and imposition of the tax would result
40-22 in the reduction of the tax rate of a rapid transit authority
40-23 created under Chapter 451, Transportation Code, the district shall
40-24 send a copy of the resolution to the authority before calling an
40-25 election on the resolution under Section 335.054.
40-26 (b) Before the 30th day after the date the rapid transit
40-27 authority receives the copy of the resolution, the authority shall:
41-1 (1) perform an analysis to determine if implementation
41-2 of the proposed sales and use tax and the resulting reduction in
41-3 the authority's tax rate will:
41-4 (A) have a significant negative impact on the
41-5 authority's ability to provide services; or
41-6 (B) impair any existing contracts; and
41-7 (2) provide to the district written notice of the
41-8 results of the analysis.
41-9 (c) If the rapid transit authority determines that
41-10 implementation of the resolution will have a significant negative
41-11 impact on the authority's ability to provide services or will
41-12 impair any existing contracts, the written analysis required under
41-13 Subsection (b)(2) must include information on how to change the
41-14 resolution so that implementation will not have a significant
41-15 negative impact on the authority's ability to provide service or
41-16 will not impair any existing contracts.
41-17 (d) If the rapid transit authority does not complete the
41-18 analysis and provide the notice before the 30th day after the date
41-19 the authority receives the copy of the resolution, the authority is
41-20 considered to have determined that implementation of the resolution
41-21 will not have a significant negative impact on the authority's
41-22 ability to provide services and will not impair any existing
41-23 contracts.
41-24 Sec. 335.0536. APPEAL OF AUTHORITY DETERMINATION. (a) If a
41-25 rapid transit authority determines under Section 335.0535 that
41-26 implementation of the resolution will have a significant negative
41-27 impact on the authority's ability to provide services or will
42-1 impair an existing contract, the district may contest the finding
42-2 by filing an appeal with the authority not later than the 10th day
42-3 after the date the district receives the written notice under
42-4 Section 335.0535.
42-5 (b) Before the 11th day after the date the rapid transit
42-6 authority receives the appeal under Subsection (a), the authority
42-7 shall perform a new analysis to determine if implementation of the
42-8 resolution will have a significant negative impact on the
42-9 authority's ability to provide services or will impair an existing
42-10 contract and provide to the district written notice of the results
42-11 of the analysis.
42-12 (c) If the authority again determines that implementation
42-13 will have a significant negative impact on the authority's ability
42-14 to provide services or will impair an existing contract, the
42-15 written analysis required under Subsection (b) must include
42-16 additional information on how to change the resolution so that
42-17 implementation will not have a significant negative impact on the
42-18 authority's ability to provide services and will not impair an
42-19 existing contract.
42-20 (d) If the rapid transit authority does not comply with
42-21 Subsection (b) before the 11th day after the date the authority
42-22 receives the appeal or request for information, the authority is
42-23 considered to have determined that approval and implementation of
42-24 the resolution will not have a significant negative impact on the
42-25 authority's ability to provide services and will not impair any
42-26 existing contracts.
42-27 Sec. 335.054. ELECTION. (a) If the comptroller determines
43-1 under Section 335.052 or 335.053 that implementation of the
43-2 resolution will not have a significant negative fiscal impact on
43-3 state revenue, and, if applicable, the rapid transit authority
43-4 determines under Section 335.0535 or 335.0536 that the
43-5 implementation will not have a significant impact on the
43-6 authority's ability to provide service and will not impair any
43-7 existing contracts, the board may order a separate election in each
43-8 political subdivision that created the district on the question of
43-9 approving and implementing the resolution. The elections shall be
43-10 held on the same day.
43-11 (b) The order calling the elections must:
43-12 (1) allow the voters to vote separately on each venue
43-13 project;
43-14 (2) designate the venue project;
43-15 (3) designate each method of financing authorized by
43-16 this chapter that the district wants to use to finance the project
43-17 and the maximum rate of each method; and
43-18 (4) allow the voters to vote, in the same proposition
43-19 or in separate propositions, on each method of financing authorized
43-20 by this chapter that the district wants to use to finance the
43-21 project and the maximum rate of each method.
43-22 (c) The ballot at the elections held under this section must
43-23 be printed to permit voting for or against the proposition:
43-24 "Authorizing _________ (insert name of district) to __________
43-25 (insert description of venue project) and to impose a __________
43-26 tax (insert type of tax) at the rate of ________ (insert maximum
43-27 rate) for the purpose of financing the venue project."
44-1 (d) If more than one method of financing is to be voted on
44-2 in one proposition, the ballot must be printed to permit voting for
44-3 or against the proposition: "Authorizing _________ (insert name of
44-4 district) to __________ (insert description of venue project) and
44-5 to impose a __________ tax at the rate of ________ (insert each
44-6 type of tax and the maximum rate of each tax) for the purpose of
44-7 financing the venue project."
44-8 (e) If a majority of the votes cast at the election in each
44-9 creating political subdivision approves the proposition authorizing
44-10 the project, the district may implement the resolution. If a
44-11 majority of the votes cast in one or more of the creating political
44-12 subdivisions disapproves the proposition authorizing the project,
44-13 the district may not implement the resolution. If the project is
44-14 approved, but one or more financing methods contained in separate
44-15 propositions are disapproved, the district may use only the
44-16 approved financing methods.
44-17 (f) The Election Code governs an election held under this
44-18 chapter.
44-19 (Sections 335.055-335.070 reserved for expansion
44-20 SUBCHAPTER E. POWERS AND DUTIES
44-21 Sec. 335.071. GENERAL POWERS OF DISTRICT. (a) A district
44-22 may:
44-23 (1) perform any act necessary to the full exercise of
44-24 the district's powers;
44-25 (2) accept a grant or loan from a:
44-26 (A) department or agency of the United States;
44-27 (B) department, agency, or political subdivision
45-1 of this state; or
45-2 (C) public or private person;
45-3 (3) sell, lease, convey, or otherwise dispose of
45-4 property or an interest in property at fair market value, including
45-5 a right-of-way or easement or an approved venue project, under
45-6 terms and conditions determined by the district;
45-7 (4) employ necessary personnel;
45-8 (5) adopt rules to govern the operation of the
45-9 district and its employees and property; and
45-10 (6) acquire property or an interest in property,
45-11 including an approved venue project, under terms and conditions
45-12 determined by the district.
45-13 (b) A district may contract with a public or private person,
45-14 including one or more political subdivisions that created the
45-15 district or a sports team, club, organization, or other entity, to:
45-16 (1) plan, acquire, establish, develop, construct, or
45-17 renovate an approved venue project; or
45-18 (2) perform any other act the district is authorized
45-19 to perform under this chapter, other than conducting an election
45-20 under this chapter.
45-21 (c) A district may contract with or enter into an interlocal
45-22 agreement with a school district, junior or community college
45-23 district, or an institution of higher education as defined by
45-24 Section 61.003, Education Code, for a purpose described by
45-25 Subsection (b). The contract or interlocal agreement may provide
45-26 for joint ownership and operation or joint use.
45-27 (d) A district may impose any tax a county may impose under
46-1 Chapter 334, subject to approval of the voters of the district as
46-2 prescribed by this chapter and Chapter 334. The district shall
46-3 impose the tax in the same manner as a county.
46-4 (e) A district may not levy an ad valorem tax.
46-5 Sec. 335.072. VENUE PROJECT FUND. (a) A district in which
46-6 an approved venue project is located shall establish by resolution
46-7 a fund known as the venue project fund. The district shall
46-8 establish separate accounts within the fund for the various revenue
46-9 sources.
46-10 (b) The district shall deposit into the venue project fund:
46-11 (1) the proceeds from any tax imposed by the district;
46-12 (2) all revenue from the sale of bonds or other
46-13 obligations by the district;
46-14 (3) money received under Section 335.075 from a
46-15 political subdivision that created the district;
46-16 (4) money derived from the naming of the arena,
46-17 coliseum, stadium, or other type of area or facility;
46-18 (5) money derived from innovative funding concepts
46-19 such as the sale or lease of luxury boxes or the sale of licenses
46-20 for personal seats;
46-21 (6) any other revenue derived from the approved venue
46-22 project, including stadium rental payments and revenue from
46-23 concessions and parking; and
46-24 (7) any other money required by law to be deposited in
46-25 the fund.
46-26 (c) The district shall use money in the venue project fund
46-27 to:
47-1 (1) reimburse the district or a political subdivision
47-2 that created the district for or pay the costs of planning,
47-3 acquiring, establishing, developing, constructing, or renovating
47-4 one or more approved venue projects in the district;
47-5 (2) pay the principal of, interest on, and other costs
47-6 relating to bonds or other obligations issued by the district or
47-7 to refund bonds or other obligations; or
47-8 (3) pay the costs of operating or maintaining one or
47-9 more approved venue projects.
47-10 (d) Money deposited into the venue project fund, including
47-11 money deposited under Subsection (b), is the property of the
47-12 district depositing the money.
47-13 Sec. 335.0725. BOOKS, RECORDS, AND PAPERS. The books,
47-14 records, and papers relating to an approved venue project and the
47-15 revenue used to finance the project are public information and
47-16 subject to disclosure under Chapter 552, Government Code, including
47-17 the books, records, and papers of:
47-18 (1) the district; and
47-19 (2) the owner, lessee, or operator of the project.
47-20 Sec. 335.073. BONDS AND OTHER OBLIGATIONS. (a) A district
47-21 in which an approved venue project is located may issue bonds,
47-22 including revenue bonds and refunding bonds, or other obligations
47-23 to pay the costs of the approved venue project. For a district
47-24 created by a county with a population of more than 2.2 million and
47-25 a municipality with a population of more than 1.2 million, the
47-26 power of the district to issue bonds or other obligations is
47-27 subject to the prior approval by the governing bodies of the county
48-1 and municipality.
48-2 (b) The bonds or other obligations and the proceedings
48-3 authorizing the bonds or other obligations shall be submitted to
48-4 the attorney general for review and approval as required by Article
48-5 3, Chapter 53, Acts of the 70th Legislature, 2nd Called Session,
48-6 1987 (Article 717k-8, Vernon's Texas Civil Statutes).
48-7 (c) The bonds or other obligations must be payable from and
48-8 secured by the revenues in the venue project fund.
48-9 (d) The bonds or other obligations may mature serially or
48-10 otherwise not more than 30 years from their date of issuance.
48-11 (e) The bonds or other obligations are not a debt of and do
48-12 not create a claim for payment against the revenue or property of
48-13 the district other than the revenue sources pledged and an approved
48-14 venue project for which the bonds are issued.
48-15 (f) A district may issue short term obligations and enter
48-16 into credit agreements under Chapter 656, Acts of the 68th
48-17 Legislature, Regular Session, 1983 (Article 717q, Vernon's Texas
48-18 Civil Statutes). For purposes of that Act, a district is a "public
48-19 utility" and an approved venue project is an "eligible project."
48-20 Sec. 335.074. PUBLIC PURPOSE OF VENUE PROJECT. (a) The
48-21 legislature finds for all constitutional and statutory purposes
48-22 that an approved venue project is owned, used, and held for public
48-23 purposes by the district.
48-24 (b) Section 25.07(a), Tax Code, does not apply to a
48-25 leasehold or other possessory interest granted by the district
48-26 while the district owns the venue project.
48-27 (c) The project is exempt from taxation under Section 11.11,
49-1 Tax Code, while the district owns the venue project.
49-2 (d) If approval and implementation of a resolution under
49-3 this chapter results in the removal from a school district's
49-4 property tax rolls of real property otherwise subject to ad valorem
49-5 taxation, the operator of the approved venue project located on
49-6 that real property shall pay to the school district on January 1 of
49-7 each year in which the project is in operation and in which the
49-8 real property is exempt from ad valorem taxation an amount equal to
49-9 the ad valorem taxes that would otherwise have been levied for the
49-10 preceding tax year on that real property by the school district,
49-11 without including the value of any improvements. This subsection
49-12 does not apply if the operator of the project is a political
49-13 subdivision of this state.
49-14 Sec. 335.075. DEDICATION OR GRANT OF CERTAIN REVENUE BY
49-15 CREATING MUNICIPALITY. (a) A municipality that created the
49-16 district may contribute or dedicate to the district municipal
49-17 sales and use tax revenue received by the municipality that is
49-18 generated, paid, or collected by any or all businesses operating in
49-19 an approved venue project.
49-20 (b) The municipality may contribute or dedicate money under
49-21 this section only if:
49-22 (1) the contribution or dedication is approved at an
49-23 election called and held for that purpose in the municipality; and
49-24 (2) the municipality determines that the approved
49-25 venue project from which the revenue was derived will contribute to
49-26 the economic, cultural, or recreational development or well-being
49-27 of the residents of the municipality.
50-1 (c) This section is cumulative of any provision in Chapter
50-2 321, Tax Code, authorizing a municipality to pledge sales and use
50-3 tax revenue for an approved project. An election held for the
50-4 purpose of pledging revenue under Chapter 321, Tax Code, satisfies
50-5 the election requirement prescribed by Subsection (b)(1).
50-6 SECTION 2. Section 4A, Development Corporation Act of 1979
50-7 (Article 5190.6, Vernon's Texas Civil Statutes), is amended by
50-8 adding Subsection (s) to read as follows:
50-9 (s)(1) A city that creates or has created a corporation
50-10 governed by this section may submit to the voters of the city, at a
50-11 separate election to be held on a uniform election date or at an
50-12 election held under another provision of this Act, including the
50-13 election at which the proposition to initially authorize the
50-14 collection of a sales and use tax for the benefit of the
50-15 corporation is submitted, a ballot proposition that authorizes the
50-16 corporation to use the sales and use tax, including any amount
50-17 previously authorized and collected, for a specific project or for
50-18 a specific category of projects, including a sports venue and
50-19 related infrastructure, that does not qualify under this section
50-20 but qualifies under Section 4B of this Act. Prior approval of a
50-21 specific project at an election or completion of a specific project
50-22 approved at an election does not prohibit a city from seeking voter
50-23 approval of an additional project or category of projects under
50-24 this subsection to be funded from the same sales and use tax.
50-25 (2) In the election to authorize the use of the sales
50-26 or use tax for a specific project or for a specific category of
50-27 projects not authorized under this section, including a sports
51-1 venue and related infrastructure, the project or category of
51-2 projects must be clearly described on the ballot so that a voter
51-3 will be able to discern the limits of the specific project or
51-4 category of projects authorized by the proposition. If maintenance
51-5 and operating costs of an otherwise authorized facility are to be
51-6 paid from the sales or use tax, the ballot language must clearly
51-7 state that fact.
51-8 (3) Before an election may be held under this
51-9 subsection, a public hearing shall be held in the city to inform
51-10 the residents of the city of the cost and impact of the project or
51-11 category of projects. At least 30 days before the date set for the
51-12 hearing, a notice of the date, time, place, and subject of the
51-13 hearing shall be published in a newspaper with general circulation
51-14 in the city in which the project is located. The notice shall be
51-15 published on a weekly basis until the date of the hearing.
51-16 (4) If a majority of the voters voting on the issue do
51-17 not approve a specific project or a specific category of projects
51-18 at an election under this subsection, another election may not be
51-19 held on the same project or category of projects before the first
51-20 anniversary of the date of the most recent election disapproving
51-21 the project or category of projects.
51-22 (5) In this subsection:
51-23 (A) "Related infrastructure" has the meaning
51-24 assigned by Section 334.001, Local Government Code.
51-25 (B) "Sports venue" means an arena, coliseum,
51-26 stadium, or other type of area or facility:
51-27 (i) that is primarily used or is planned
52-1 for primary use for one or more professional or amateur sports or
52-2 athletics events; and
52-3 (ii) for which a fee for admission to the
52-4 sports or athletics events, other than occasional civic,
52-5 charitable, or promotional events, is charged or is planned to be
52-6 charged.
52-7 SECTION 3. Section 4B, Development Corporation Act of 1979
52-8 (Article 5190.6, Vernon's Texas Civil Statutes), is amended by
52-9 adding Subsections (a-3) and (a-4) to read as follows:
52-10 (a-3)(1) A city that creates or has created a corporation
52-11 governed by this section may submit to the voters of the city, at a
52-12 separate election to be held on a uniform election date or at an
52-13 election held under another provision of this Act, including the
52-14 election at which the proposition to initially authorize the
52-15 collection of a sales and use tax for the benefit of the
52-16 corporation is submitted, a ballot proposition that authorizes the
52-17 corporation to use the sales and use tax, including any amount
52-18 previously authorized and collected, for a specific sports venue
52-19 project, including related infrastructure, or for a specific
52-20 category of sports venue projects, including related
52-21 infrastructure. Prior approval of a specific sports venue project
52-22 at an election or completion of a specific sports venue project
52-23 approved at an election does not prohibit a city from seeking voter
52-24 approval of an additional project or category of projects under
52-25 this subsection to be funded from the same sales and use tax.
52-26 (2) In the election to authorize the use of the sales
52-27 or use tax for a specific sports venue project or for a specific
53-1 category of sports venue projects, the project or category of
53-2 projects must be clearly described on the ballot so that a voter
53-3 will be able to discern the limits of the specific project or
53-4 category of projects authorized by the proposition. If maintenance
53-5 and operating costs of an otherwise authorized facility are to be
53-6 paid from the sales or use tax, the ballot language must clearly
53-7 state that fact.
53-8 (3) Before an election may be held under this
53-9 subsection, a public hearing shall be held in the city to inform
53-10 the residents of the city of the cost and impact of the project or
53-11 category of projects. At least 30 days before the date set for the
53-12 hearing, a notice of the date, time, place, and subject of the
53-13 hearing shall be published in a newspaper with general circulation
53-14 in the city in which the project is located. The notice shall be
53-15 published on a weekly basis until the date of the hearing.
53-16 (4) If a majority of the voters voting on the issue do
53-17 not approve a specific sports venue project or a specific category
53-18 of sports venue projects at an election under this subsection,
53-19 another election may not be held on the same project or category of
53-20 projects before the first anniversary of the date of the most
53-21 recent election disapproving the project or category of projects.
53-22 (a-4) In this section:
53-23 (1) "Related infrastructure" has the meaning assigned
53-24 by Section 334.001, Local Government Code.
53-25 (2) "Sports venue" means an arena, coliseum, stadium,
53-26 or other type of area or facility that is primarily used or is
53-27 planned for primary use for one or more professional or amateur
54-1 sports or athletics events and for which a fee for admission to the
54-2 sports or athletics events, other than occasional civic,
54-3 charitable, or promotional events, is charged or is planned to be
54-4 charged. The term does not include an arena, coliseum, stadium, or
54-5 other type of area or facility that is or will be owned and
54-6 operated by a state-supported institution of higher education.
54-7 SECTION 4. Subchapter F, Chapter 321, Tax Code, is amended
54-8 by adding Section 321.508 to read as follows:
54-9 Sec. 321.508. PLEDGE OF TAX REVENUE. (a) A municipality
54-10 may call and hold an election on the issue of authorizing the
54-11 municipality to pledge a percentage of the sales and use tax
54-12 revenue received under Section 321.101(a) or (b), or both, to the
54-13 payment of obligations issued to pay all or part of the costs of
54-14 one or more sports and community venue projects located in the
54-15 municipality.
54-16 (b) The ballot at the election under this section must be
54-17 printed to permit voting for or against the proposition:
54-18 "Authorizing the City of ______ (insert name of municipality) to
54-19 pledge not more than ____ percent (insert percentage not to exceed
54-20 25 percent) of the revenue received from the _________ (insert
54-21 municipal sales and use tax, additional municipal sales and use
54-22 tax, or both) previously adopted in the city to the payment of
54-23 obligations issued to pay all or part of the costs of _________
54-24 (insert description of each sports and community venue project)."
54-25 (c) If a majority of the voters vote in favor of the
54-26 proposition, the municipality may:
54-27 (1) issue bonds, notes, or other obligations that are
55-1 payable from the pledged revenues to pay for all or part of the
55-2 costs of the sports and community venue project or projects
55-3 described in the proposition; and
55-4 (2) set aside the portion of the revenue approved at
55-5 the election that the municipality actually receives and pledge
55-6 that revenue as security for the payment of the bonds, notes, or
55-7 other obligations.
55-8 (d) If the municipality pledges revenue under Subsection
55-9 (c), the pledge and security interest shall continue while the
55-10 bonds, notes, or obligations, including refunding obligations, are
55-11 outstanding and unpaid.
55-12 (e) The municipality may direct the comptroller to deposit
55-13 the pledged revenue to a trust or account as may be required to
55-14 obtain the financing and to protect the related security interest.
55-15 (f) Sections 321.506 and 321.507 do not apply to taxes
55-16 pledged under this section.
55-17 (g) In this section, "sports and community venue project"
55-18 has the meaning assigned by Section 334.001, Local Government Code.
55-19 SECTION 5. The changes in law made by this Act do not apply
55-20 to the use of tax revenue pledged to secure bonds issued before the
55-21 effective date of this Act. Tax revenue pledged to secure bonds
55-22 issued before the effective date of this Act is governed by the law
55-23 in effect on the date the bonds were issued, and that law is
55-24 continued in effect for that purpose.
55-25 SECTION 6. (a) This Act does not affect the authority of:
55-26 (1) a municipality that created an industrial
55-27 development corporation under Section 4A or 4B, Development
56-1 Corporation Act of 1979 (Article 5190.6, Vernon's Texas Civil
56-2 Statutes), before the effective date of this Act to continue to
56-3 collect any tax authorized for the benefit of the corporation
56-4 before that date; or
56-5 (2) an industrial development corporation described by
56-6 Subdivision (1) to continue a project or category of projects
56-7 authorized for the corporation before the effective date of this
56-8 Act that the corporation had begun before that date.
56-9 (b) A tax collected under Subsection (a)(1) of this section
56-10 or a project continued under Subsection (a)(2) of this section is
56-11 subject to the same restrictions applicable under Sections 4A and
56-12 4B, Development Corporation Act of 1979 (Article 5190.6, Vernon's
56-13 Texas Civil Statutes), as those sections existed immediately before
56-14 the effective date of this Act, and that law is continued in effect
56-15 for that purpose.
56-16 SECTION 7. Notwithstanding any other provision of Chapter
56-17 334 or 335, Local Government Code, as added by this Act, a
56-18 municipality, county, or venue district is not required to obtain
56-19 from the comptroller a determination of state fiscal impact if, at
56-20 an election held before the effective date of this Act, the voters
56-21 of that county, or of the county in which the municipality or
56-22 district is primarily located, authorized the establishment and
56-23 operation of new or renovated stadiums, arenas, or other facilities
56-24 for professional sports teams. This section negates the necessity
56-25 of a comptroller determination only for the type of venue project
56-26 approved at the previous election.
56-27 SECTION 8. All acts or proceedings authorized or undertaken
57-1 by a sports and community venue district or by a county or
57-2 municipality that created the district that were undertaken before
57-3 the effective date of this Act, including acts or proceedings to
57-4 create the district, are validated and confirmed in all respects,
57-5 provided that the validation and confirmation do not apply to an
57-6 act or proceeding that is subject to litigation that is pending on
57-7 the effective date of this Act.
57-8 SECTION 9. If any provision of this Act or its application
57-9 to any person or circumstance is held invalid, the invalidity does
57-10 not affect other provisions or applications of this Act that can be
57-11 given effect without the invalid provision or application, and to
57-12 this end the provisions of this Act are severable.
57-13 SECTION 10. This Act expires August 31, 2001. The terms,
57-14 conditions, and procedures provided by this Act are continued in
57-15 force and effect with respect to a project approved under the terms
57-16 of this Act prior to August 31, 2001.
57-17 SECTION 11. The importance of this legislation and the
57-18 crowded condition of the calendars in both houses create an
57-19 emergency and an imperative public necessity that the
57-20 constitutional rule requiring bills to be read on three several
57-21 days in each house be suspended, and this rule is hereby suspended,
57-22 and that this Act take effect and be in force from and after its
57-23 passage, and it is so enacted.