75R11732 E                           

         By Brimer, Oliveira, Janek, Eiland, Corte,              H.B. No. 92

            et al. 

         Substitute the following for H.B. No. 92:

         By Brimer                                           C.S.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" means 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 and

1-21     any other expenditure reasonably necessary to construct, improve,

1-22     renovate, or expand a venue.

1-23                 (4)  "Venue" means:

1-24                       (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, museum, aquarium, or plaza located in

2-13     the vicinity of a convention center or facility owned by a

2-14     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; and

4-12                 (2)  the resolution is approved by a majority of the

4-13     qualified voters of the municipality or county voting at an

4-14     election called and held for that purpose under Section 334.024.

4-15           (b)  The resolution must designate each venue project and

4-16     each method of financing authorized by this chapter that the

4-17     municipality or county wants to use to finance a project.  A

4-18     resolution may designate more than one method of financing.

4-19           Sec. 334.022.  STATE FISCAL IMPACT ANALYSIS.  (a)  Before

4-20     calling an election on the resolution under Section 334.024, the

4-21     municipality or county shall send a copy of the resolution to the

4-22     comptroller.

4-23           (b)  Before the 15th day after the date the comptroller

4-24     receives the copy of the resolution, the comptroller shall:

4-25                 (1)  perform an analysis to determine if approval and

4-26     implementation of the resolution will have a significant negative

4-27     fiscal impact on state revenue; and

 5-1                 (2)  provide to the municipality or county written

 5-2     notice of the results of the analysis.

 5-3           (c)  If the comptroller determines that implementation will

 5-4     have a significant negative fiscal impact on state revenue, the

 5-5     written analysis required under Subsection (b)(2) must include

 5-6     information on how to change the resolution so that implementation

 5-7     will not have a significant negative fiscal impact on state

 5-8     revenue.

 5-9           (d)  If the comptroller does not complete the analysis and

5-10     provide the notice before the 15th day after the date the

5-11     comptroller receives the copy of the resolution, the comptroller is

5-12     considered to have determined that approval and implementation of

5-13     the resolution will not have a significant negative fiscal impact

5-14     on state revenue.

5-15           Sec. 334.023.  APPEAL OF COMPTROLLER DETERMINATION.  (a)  If

5-16     the comptroller determines under Section 334.022 that

5-17     implementation of the resolution will have a significant negative

5-18     fiscal impact on state revenue, the municipality or county may

5-19     contest the finding by filing an appeal with the comptroller not

5-20     later than the 10th day after the date the municipality or county

5-21     receives the written notice under Section 334.022.

5-22           (b)  Before the 11th day after the date the comptroller

5-23     receives the appeal under Subsection (a),  the comptroller shall

5-24     perform a new analysis to determine if implementation of the

5-25     resolution will have a significant negative fiscal impact on state

5-26     revenue and  provide to the municipality or county written notice

5-27     of the results of the analysis.

 6-1           (c)  If the comptroller again determines that implementation

 6-2     will have a significant negative fiscal impact on state revenue,

 6-3     the written analysis required under Subsection (b) must include

 6-4     additional information on how to change the resolution so that

 6-5     implementation will not have a significant negative fiscal impact

 6-6     on state revenue.

 6-7           (d)  If the comptroller does not comply with Subsection (b)

 6-8     before the 11th day after the date the comptroller receives the

 6-9     appeal or request for information, the comptroller is considered to

6-10     have determined that approval and implementation of the resolution

6-11     will not have a significant negative fiscal impact on state

6-12     revenue.

6-13           Sec. 334.024.  ELECTION.  (a)  If the comptroller determines

6-14     under Section 334.022 or 334.023 that the implementation of the

6-15     resolution will not have a significant negative fiscal impact on

6-16     state revenue, the governing body of the municipality or county may

6-17     order an election on the question of approving and implementing the

6-18     resolution.

6-19           (b)  The order calling the election must:

6-20                 (1)  allow the voters to vote separately on each venue

6-21     project;

6-22                 (2)  designate the venue project;

6-23                 (3)  designate each method of financing authorized by

6-24     this chapter that the municipality or county wants to use to

6-25     finance the project and the maximum rate of each method; and

6-26                 (4)  allow the voters to vote, in the same proposition

6-27     or in separate propositions, on each method of financing authorized

 7-1     by this chapter that the municipality or county wants to use to

 7-2     finance the project and the maximum rate of each method.

 7-3           (c)  The ballot at the election held under this section must

 7-4     be printed to permit voting for or against the proposition:

 7-5     "Authorizing ________ (insert name of municipality or county) to

 7-6     _______ (insert description of venue project) and to impose a

 7-7     ________ tax at the rate of ________ (insert the type of tax and

 7-8     the maximum rate of the tax) for the purpose of financing the venue

 7-9     project."

7-10           (d)  If more than one method of financing is to be voted on

7-11     in one proposition, the ballot must be printed to permit voting for

7-12     or against the proposition:  "Authorizing ________ (insert name of

7-13     municipality or county) to ________ (insert description of venue

7-14     project) and to impose a ________ tax at the rate of _______

7-15     (insert each type of tax and the maximum rate of each tax) for the

7-16     purpose of financing the venue project."

7-17           (e)  The Election Code governs an election held under this

7-18     chapter.

7-19              (Sections 334.025-334.040 reserved for expansion

7-20                      SUBCHAPTER C.  POWERS AND DUTIES

7-21           Sec. 334.041.  GENERAL POWERS.  (a)  A municipality or county

7-22     may  perform any act necessary to the full exercise of the

7-23     municipality's or county's powers under this chapter.

7-24           (b)  A municipality or county may acquire, sell, lease,

7-25     convey, or otherwise dispose of property or an interest in

7-26     property, including an approved venue project, under terms and

7-27     conditions determined by the municipality or county.

 8-1           (c)  A municipality or county may contract with a public or

 8-2     private person, including a sports team, club, organization, or

 8-3     other entity to:

 8-4                 (1)  plan, acquire, establish, develop, construct, or

 8-5     renovate an approved venue project; or

 8-6                 (2)  perform any other act the municipality or county

 8-7     is authorized to perform under this chapter.

 8-8           (d)  A municipality or county may contract with or enter into

 8-9     an interlocal agreement with a school district, junior or community

8-10     college district, or an institution of higher education as defined

8-11     by Section 61.003, Education Code, for a purpose described by

8-12     Subsection (c).  The contract or interlocal agreement may provide

8-13     for joint ownership and operation or joint use.

8-14           (e)  The competitive bidding laws, including Chapter 271, do

8-15     not apply to the planning, acquisition, establishment, development,

8-16     construction, or renovation of an approved venue project under this

8-17     chapter.

8-18           (f)  A municipality or county may not use revenue derived

8-19     from ad valorem taxes to plan, acquire, establish, develop,

8-20     construct, or renovate an approved venue project.

8-21           Sec. 334.042.  VENUE PROJECT FUND.  (a)  A municipality or

8-22     county in which an approved venue project is located shall

8-23     establish by resolution a fund known as the venue project fund.

8-24     The municipality or county shall establish separate accounts within

8-25     the fund for the various revenue sources.

8-26           (b)  The municipality or county shall deposit into the venue

8-27     project fund:

 9-1                 (1)  the proceeds of any tax imposed by the

 9-2     municipality or county under this chapter;

 9-3                 (2)  all revenue from the sale of bonds or other

 9-4     obligations by the municipality or county under this chapter; and

 9-5                 (3)  any other money required by law to be deposited in

 9-6     the fund.

 9-7           (c)  The municipality or county may deposit into the venue

 9-8     project fund:

 9-9                 (1)  money derived from innovative funding concepts

9-10     such as the sale or lease of luxury boxes or the sale of licenses

9-11     for personal seats; and

9-12                 (2)  any other revenue derived from the approved venue

9-13     project, including stadium rental payments and revenue from

9-14     concessions and parking.

9-15           (d)  The municipality or county may use money in the venue

9-16     project fund to:

9-17                 (1)  reimburse the municipality or county for or pay

9-18     the costs of planning, acquiring, establishing, developing,

9-19     constructing, or renovating one or more approved venue projects in

9-20     the municipality or county;

9-21                 (2)  pay the principal of, interest on, and other costs

9-22     relating to bonds or other obligations issued by the municipality

9-23     or county or to refund bonds, notes, or other obligations; or

9-24                 (3)  pay the costs of operating or maintaining one or

9-25     more approved venue projects.

9-26           (e)  Money deposited into the venue project fund, including

9-27     money deposited under Subsection (c), is the property of the

 10-1    municipality or county depositing the money.

 10-2          Sec. 334.043.  BONDS AND OTHER OBLIGATIONS.  (a)  A

 10-3    municipality or county in which an approved venue project is

 10-4    located may issue bonds, including revenue bonds and refunding

 10-5    bonds,  or other obligations to pay the costs of the approved venue

 10-6    project.

 10-7          (b)  The bonds or other obligations and the proceedings

 10-8    authorizing the bonds or other obligations shall be submitted to

 10-9    the attorney general for review and approval as required by Article

10-10    3, Chapter 53, Acts of the 70th Legislature, 2nd Called Session,

10-11    1987 (Article 717k-8, Vernon's Texas Civil Statutes).

10-12          (c)  The bonds or other obligations must be payable from and

10-13    secured by the revenues in the venue project fund.

10-14          (d)  The bonds or other obligations may mature serially or

10-15    otherwise not more than 30 years from their date of issuance.

10-16          (e)  The bonds or other obligations are not a debt of and do

10-17    not create a claim for payment against the revenue or property of

10-18    the municipality or county other than the revenue sources pledged

10-19    and an approved venue  project for which the bonds are issued.

10-20          Sec. 334.044.  PUBLIC PURPOSE OF VENUE PROJECT.  (a)  The

10-21    legislature finds for all constitutional and statutory purposes

10-22    that an approved venue project is owned, used, and held for public

10-23    purposes by the municipality or county.

10-24          (b)  Section 25.07(a), Tax Code, does not apply to a

10-25    leasehold or other possessory interest granted by the municipality

10-26    or county while the municipality or county owns the venue project.

10-27          (c)  The venue project is exempt from taxation under Section

 11-1    11.11, Tax Code, while the municipality or county owns the venue

 11-2    project.

 11-3          (d)  If approval and implementation of a resolution under

 11-4    this chapter results in the removal from a school district's

 11-5    property tax rolls of real property otherwise subject to ad valorem

 11-6    taxation, the operator of the approved venue project located on

 11-7    that property shall pay to the school district on January 1 of each

 11-8    year in which the project is in operation and in which the real

 11-9    property is exempt from ad valorem taxation an amount equal to the

11-10    ad valorem taxes that would otherwise have been levied for the

11-11    preceding tax year on that real property by the school district,

11-12    without including the value of any improvements.  This subsection

11-13    does not apply if the operator of the project is a political

11-14    subdivision of this state.

11-15             (Sections 334.045-334.080 reserved for expansion

11-16                     SUBCHAPTER D.  SALES AND USE TAX

11-17          Sec. 334.081.  SALES AND USE TAX.  (a)  A municipality by

11-18    ordinance or a county by order may impose a sales and use tax under

11-19    this subchapter.

11-20          (b)  A municipality by ordinance or a county by order may

11-21    repeal or decrease the rate of a tax imposed under this subchapter.

11-22          (c)  A municipality or county may impose a tax under this

11-23    subchapter only if:

11-24                (1)  an approved venue project is or is planned to be

11-25    located in the municipality or county; and

11-26                (2)  the tax is approved at an election held under

11-27    Section 334.024.

 12-1          Sec. 334.082.  TAX CODE APPLICABLE.  (a)  Chapter 321, Tax

 12-2    Code, governs the imposition, computation, administration,

 12-3    collection, and remittance of a municipal tax authorized under this

 12-4    subchapter except as inconsistent with this chapter.

 12-5          (b)  Chapter 323, Tax Code, governs the imposition,

 12-6    computation, administration, collection, and remittance of a county

 12-7    tax authorized under this subchapter except as inconsistent with

 12-8    this chapter.

 12-9          (c)  Sections 321.101(b) and 323.101(b), Tax Code, do not

12-10    apply to the tax authorized by this subchapter.

12-11          Sec. 334.083.  TAX RATE.  (a)  The rate of a tax adopted

12-12    under this subchapter must be one-eighth, one-fourth,

12-13    three-eighths, or one-half of one percent.

12-14          (b)  The ballot proposition at the election held to adopt the

12-15    tax must specify the rate of the tax to be adopted.

12-16          Sec. 334.084.  RATE INCREASE.  (a)  A municipality or county

12-17    that has adopted a sales and use tax under this subchapter at a

12-18    rate of less than one-half of one percent may by ordinance or order

12-19    increase the rate of the tax if the increase is approved by a

12-20    majority of the registered voters of that municipality or county

12-21    voting at an election called and held for that purpose.

12-22          (b)  The tax may be increased under Subsection (a) in one or

12-23    more increments of one-eighth of one percent to a maximum of

12-24    one-half of one percent.

12-25          (c)  The ballot for an election to increase the tax shall be

12-26    printed to permit voting for or against the proposition:  "The

12-27    adoption of a sales and use tax for the purpose of financing

 13-1    _______ (insert description of venue project) at the rate of

 13-2    _______ of one percent (insert one-fourth, three-eighths, or

 13-3    one-half, as appropriate)."

 13-4          Sec. 334.085.  IMPOSITION IN MUNICIPALITY OR COUNTY WITH

 13-5    OTHER TAXING AUTHORITY.  (a)  In this section, "taxing authority"

 13-6    means:

 13-7                (1)  a rapid transit authority created under Chapter

 13-8    451, Transportation Code;

 13-9                (2)  a regional transportation authority created under

13-10    Chapter 452, Transportation Code;

13-11                (3)  a crime control district created under the Crime

13-12    Control and Prevention District Act (Article 2370c-4, Vernon's

13-13    Texas Civil Statutes); or

13-14                (4)  an industrial development corporation created

13-15    under Section 4A or 4B, Development Corporation Act of 1979

13-16    (Article 5190.6, Vernon's Texas Civil Statutes).

13-17          (b)  If a municipality or county is included within the

13-18    boundaries of another taxing authority and the adoption or increase

13-19    of the tax under this subchapter would result in a combined tax

13-20    rate of more than two percent in any location in the municipality

13-21    or county, the election to approve or increase the tax under this

13-22    chapter is to be treated for all purposes as an election to reduce

13-23    the tax rate of the other taxing authority to the highest rate that

13-24    will not result in a combined tax rate of more than two percent in

13-25    any location in the municipality or county.  If the municipality or

13-26    county is included within the boundaries of more than one taxing

13-27    authority, the election to impose or increase the tax under this

 14-1    subchapter must allow the voters to choose which taxing authority's

 14-2    tax will be reduced.

 14-3          (c)  The rate of the tax imposed by the other taxing

 14-4    authority is increased without further action of the board of the

 14-5    authority or the voters of the authority, municipality,  or county

 14-6    on the date on which the tax imposed under this subchapter is

 14-7    decreased or expires, but only to the extent that any tax imposed

 14-8    by the authority was reduced under this section when the tax

 14-9    imposed by the county was adopted or increased.

14-10          (d)  This section does not permit a taxing authority to

14-11    impose taxes at differential tax rates within the territory of the

14-12    authority.

14-13          Sec. 334.086.  IMPOSITION OF TAX.  (a)  If the municipality

14-14    or county adopts the tax, a tax is imposed on the receipts from the

14-15    sale at retail of taxable items in the municipality or county at

14-16    the rate approved at the election.

14-17          (b)  There is also imposed an excise tax on the use, storage,

14-18    or other consumption in the municipality or county of tangible

14-19    personal property purchased, leased, or rented from a retailer

14-20    during the period that the tax is effective in the municipality or

14-21    county.  The rate of the excise tax is the same as the rate of the

14-22    sales tax portion of the tax and is applied to the sale price of

14-23    the tangible personal property.

14-24          Sec. 334.087.  EFFECTIVE DATE OF TAX.  The adoption of the

14-25    tax or the change of the tax rate takes effect on the first day of

14-26    the first calendar quarter occurring after the expiration of the

14-27    first complete quarter occurring after the date on which the

 15-1    comptroller receives a notice of the results of the election

 15-2    adopting or increasing the tax or of the ordinance or order

 15-3    decreasing the tax.

 15-4          Sec. 334.088.  DEPOSIT OF TAX REVENUES.  Revenue from the tax

 15-5    imposed under this subchapter shall be deposited in the venue

 15-6    project fund of the municipality or county imposing the tax.

 15-7          Sec. 334.089.  ABOLITION OF TAX.  (a)  A sales and use tax

 15-8    imposed under this subchapter may not be collected after the last

 15-9    day of  the first calendar quarter occurring after notification to

15-10    the comptroller by the municipality or county that the municipality

15-11    or county has abolished the tax or that all bonds or other

15-12    obligations of the municipality or county that are payable in whole

15-13    or in part from money in the venue project fund, including any

15-14    refunding bonds or other obligations, have been paid in full or the

15-15    full amount of money, exclusive of guaranteed interest, necessary

15-16    to pay in full the bonds and other obligations has been set aside

15-17    in a trust account dedicated to the payment of the bonds and other

15-18    obligations.

15-19          (b)  The municipality or county shall notify the comptroller

15-20    of the expiration of the tax not later than the 60th day before the

15-21    expiration date.

15-22             (Sections 334.090-334.100 reserved for expansion

15-23            SUBCHAPTER E.  SHORT-TERM MOTOR VEHICLE RENTAL TAX

15-24          Sec. 334.101.  DEFINITIONS.  (a)  In this subchapter:

15-25                (1)  "Motor vehicle" means a self-propelled vehicle

15-26    designed principally to transport persons or property on a public

15-27    roadway and includes a passenger car, van, station wagon, sports

 16-1    utility vehicle, and truck.  The term does not include a:

 16-2                      (A)  trailer, semitrailer, house trailer, truck

 16-3    having a manufacturer's rating of more than one-half ton, or

 16-4    road-building machine;

 16-5                      (B)  device moved only by human power;

 16-6                      (C)  device used exclusively on stationary rails

 16-7    or tracks;

 16-8                      (D)  farm machine; or

 16-9                      (E)  mobile office.

16-10                (2)  "Rental" means an agreement by the owner of a

16-11    motor vehicle to authorize for not longer than 30 days the

16-12    exclusive use of that vehicle to another for consideration.

16-13                (3)  "Place of business of the owner" means an

16-14    established outlet, office, or location operated by the owner of a

16-15    motor vehicle or the owner's agent or employee for the purpose of

16-16    renting motor vehicles and includes any location at which three or

16-17    more rentals are made during a year.

16-18          (b)  Except as provided by Subsection (a), words used in this

16-19    subchapter and defined by Chapter 152, Tax Code, have the meanings

16-20    assigned by Chapter 152, Tax Code.

16-21          Sec. 334.102.  TAX AUTHORIZED.  (a)  A municipality by

16-22    ordinance or a county by order may impose a tax on the rental in

16-23    the municipality or county of a motor vehicle.

16-24          (b)  A municipality by ordinance or a county by order may

16-25    repeal or decrease the rate of a tax imposed under Subsection (a).

16-26          (c)  A municipality or county may impose a tax under this

16-27    subchapter only if:

 17-1                (1)  an approved venue project is or is planned to be

 17-2    located in the municipality or county; and

 17-3                (2)  the tax is approved at an election held under

 17-4    Section 334.024.

 17-5          Sec. 334.103.  SHORT-TERM RENTAL TAX.  (a)  The tax

 17-6    authorized by this subchapter is imposed at a rate in increments of

 17-7    one-eighth of one percent, not to exceed 10 percent, on the gross

 17-8    rental receipts from the rental in the municipality or county of a

 17-9    motor vehicle.

17-10          (b)  The ballot proposition at the election held to adopt the

17-11    tax must specify the maximum rate of the tax to be adopted.

17-12          Sec. 334.104.  RATE INCREASE.  (a)  A municipality or county

17-13    that has adopted a tax under this subchapter at a rate of less than

17-14    10 percent may by ordinance or order increase the rate of the tax

17-15    to a maximum of 10 percent if the increase is approved by a

17-16    majority of the registered voters of that municipality or county

17-17    voting at an election called and held for that purpose.

17-18          (b)  The ballot for an election to increase the rate of the

17-19    tax shall be printed to permit voting for or against the

17-20    proposition:  "The increase of the motor vehicle rental tax for the

17-21    purpose of financing _____ (insert description of venue project) to

17-22    a maximum rate of _______ percent (insert new maximum rate not to

17-23    exceed 10 percent)."

17-24          Sec. 334.105.  COMPUTATION OF TAX.  (a)  The owner of a motor

17-25    vehicle subject to the tax imposed under this subchapter shall

17-26    collect the tax for the benefit of the municipality or county.

17-27          (b)  The owner shall add the short-term motor vehicle rental

 18-1    tax imposed by the municipality or county under this subchapter, if

 18-2    applicable, and the gross rental receipts tax imposed by Chapter

 18-3    152, Tax Code, to the rental charge, and the sum of the taxes is a

 18-4    part of the rental charge, is a debt owed to the motor vehicle

 18-5    owner by the person renting the vehicle, and is recoverable at law

 18-6    in the same manner as the rental charge.

 18-7          Sec. 334.106.  CONSUMMATION OF RENTAL.  A rental of a motor

 18-8    vehicle occurs in the municipality or county in which transfer of

 18-9    possession of the motor vehicle occurs.

18-10          Sec. 334.107.  SHORT-TERM TAX INAPPLICABLE WHEN NO STATE TAX.

18-11    The tax authorized by this subchapter does not apply to the gross

18-12    receipts from the rental of a motor vehicle unless the tax imposed

18-13    by Chapter 152, Tax Code, also applies to the rental.

18-14          Sec. 334.108.  EXEMPTIONS APPLICABLE.  The exemptions

18-15    provided by Subchapter E, Chapter 152, Tax Code, apply to the tax

18-16    authorized by this subchapter.

18-17          Sec. 334.109.  NOTICE OF TAX.  Each bill or other receipt for

18-18    a rental subject to the tax imposed under this subchapter must

18-19    contain a statement in a conspicuous location stating:  "_______

18-20    (insert name of taxing municipality or county) requires that an

18-21    additional tax of ____ percent (insert rate of tax) be imposed on

18-22    each motor vehicle rental for the purpose of financing a venue

18-23    project."

18-24          Sec. 334.110.  GROSS RECEIPTS PRESUMED SUBJECT TO TAX.  All

18-25    gross receipts of an owner of a motor vehicle from the rental of

18-26    the motor vehicle are presumed to be subject to the tax imposed by

18-27    this subchapter, except for gross receipts for which the owner has

 19-1    accepted in good faith a properly completed exemption certificate.

 19-2          Sec. 334.111.  RECORDS.  (a)  The owner of a motor vehicle

 19-3    used for rental purposes shall keep for four years records and

 19-4    supporting documents containing the following information on the

 19-5    amount of:

 19-6                (1)  gross rental receipts received from the rental of

 19-7    the motor vehicle; and

 19-8                (2)  the tax imposed under this subchapter and paid to

 19-9    the municipality or county on each motor vehicle used for rental

19-10    purposes by the owner.

19-11          (b)  Mileage records are not required.

19-12          Sec. 334.112.  FAILURE TO KEEP RECORDS.  (a)  An owner of a

19-13    motor vehicle commits an offense if the owner fails to make and

19-14    retain complete records for the four-year period required by

19-15    Section 334.111.

19-16          (b)  An offense under this section is a misdemeanor

19-17    punishable by a fine of not less than $25 or more than $500.

19-18          Sec. 334.113.  EFFECTIVE DATE AND ENDING DATE OF TAX.  (a)  A

19-19    tax imposed under this subchapter or a change in the tax rate takes

19-20    effect on the date prescribed by the ordinance or order imposing

19-21    the tax or changing the rate.

19-22          (b)  A municipality or county may impose a tax under this

19-23    subchapter only if the municipality or county issues bonds or other

19-24    obligations under Section 334.043.  The municipality or county may

19-25    impose the tax only while those bonds or other obligations are

19-26    outstanding and unpaid.

19-27          Sec. 334.114.  TAX COLLECTION; PENALTY.  (a)  The owner of a

 20-1    motor vehicle required to collect the tax imposed under this

 20-2    subchapter shall report and send the taxes collected to the

 20-3    municipality or county as provided by the ordinance or order

 20-4    imposing the tax.

 20-5          (b)  A municipality by ordinance or a county by order may

 20-6    prescribe penalties, including interest charges, for failure to

 20-7    keep records required by the municipality or county, to report when

 20-8    required, or to pay the tax when due.

 20-9          (c)  The attorney acting for the municipality or county may

20-10    bring suit against a person who fails to collect a tax under this

20-11    subchapter and to pay it over to the municipality or county as

20-12    required.

20-13          Sec. 334.115.  COLLECTION PROCEDURES ON PURCHASE OF MOTOR

20-14    VEHICLE RENTAL BUSINESS.  (a)  If the owner of a motor vehicle

20-15    rental business that makes rentals subject to the tax imposed by

20-16    this subchapter sells the business, the successor to the seller or

20-17    the seller's assignee shall withhold an amount of the purchase

20-18    price sufficient to pay the amount of tax due until the seller

20-19    provides a receipt by a person designated by the municipality or

20-20    county to provide the receipt showing that the amount has been paid

20-21    or a certificate showing that no tax is due.

20-22          (b)  The purchaser of a motor vehicle rental business who

20-23    fails to withhold an amount of the purchase price as required by

20-24    this section is liable for the amount required to be withheld to

20-25    the extent of the value of the purchase price.

20-26          (c)  The purchaser of a motor vehicle rental business may

20-27    request that the person designated by the municipality or county to

 21-1    provide a receipt under Subsection (a) issue a certificate stating

 21-2    that no tax is due or issue a statement of the amount required to

 21-3    be paid before a certificate may be issued.  The person designated

 21-4    by the municipality or county shall issue the certificate or

 21-5    statement not later than the 60th day after the date the person

 21-6    receives the request.

 21-7          (d)  If the person designated by the municipality or county

 21-8    to provide a receipt under Subsection (a) fails to issue the

 21-9    certificate or statement within the period provided by Subsection

21-10    (c), the purchaser is released from the obligation to withhold the

21-11    purchase price or pay the amount due.

21-12          Sec. 334.116.  REIMBURSEMENT FOR TAX COLLECTION EXPENSES.

21-13    (a)  A municipality by ordinance or a county by order may permit a

21-14    person who is required to collect a tax under this subchapter to

21-15    retain a percentage of the amount collected and required to be

21-16    reported as reimbursement to the person for the costs of collecting

21-17    the tax.

21-18          (b)  A municipality or county may provide that the person may

21-19    retain the amount authorized by Subsection (a) only if the person

21-20    pays the tax and files reports as required by the municipality or

21-21    county.

21-22          Sec. 334.117.  DEPOSIT OF TAX REVENUE.  Revenue from the tax

21-23    imposed under this subchapter shall be deposited in the venue

21-24    project fund of the municipality or county imposing the tax.

21-25             (Sections 334.118-334.150 reserved for expansion

21-26                       SUBCHAPTER F.  ADMISSIONS TAX

21-27          Sec. 334.151.  TAX AUTHORIZED.  (a)  A municipality by

 22-1    ordinance or a county by order may impose a tax on each person

 22-2    admitted to an event at an approved venue project in the

 22-3    municipality or county for which the municipality or county has

 22-4    issued bonds to plan, acquire, establish, develop, construct, or

 22-5    renovate the approved venue project.

 22-6          (b)  The municipality or county may not impose the tax under

 22-7    this subchapter for admission to an event at a venue that is not an

 22-8    approved venue project or for which the municipality or county has

 22-9    not issued bonds to plan, acquire, establish, develop, construct,

22-10    or renovate the approved venue project.

22-11          (c)  A municipality or county may impose a tax under this

22-12    subchapter only if:

22-13                (1)  an approved venue project is or will be located in

22-14    the municipality or county; and

22-15                (2)  the tax is approved at an election held under

22-16    Section 334.024.

22-17          Sec. 334.152.  TAX RATE.  (a)  The tax authorized by this

22-18    subchapter is imposed at the tax rate on each person admitted.

22-19          (b)  The amount of the tax may be imposed at any uniform

22-20    monetary amount not to exceed $2.  The tax may not be imposed at a

22-21    percentage rate.

22-22          (c)  The ballot proposition at the election held to adopt the

22-23    tax must specify the maximum rate of the tax to be adopted.

22-24          (d)  The municipality by ordinance or the county by order may

22-25    repeal or decrease the rate of the tax imposed under this

22-26    subchapter.

22-27          Sec. 334.153.  RATE INCREASE.  (a)  A municipality or county

 23-1    that has adopted a tax under this subchapter  at the rate of less

 23-2    than $2 a  person may by ordinance or order increase the rate of

 23-3    the tax to a maximum of $2 a person if the increase is approved by

 23-4    a majority of the registered voters of that municipality or county

 23-5    voting at an election called and held for that purpose.

 23-6          (b)  The ballot for an election to increase the rate of the

 23-7    tax shall be printed to permit voting for or against the

 23-8    proposition:  "The increase of the admissions tax for the purpose

 23-9    of financing _______ (insert description of venue project) to a

23-10    maximum rate of ________ a day (insert new maximum rate not to

23-11    exceed $2)."

23-12          Sec. 334.154.  COLLECTION.  (a)  The municipality by

23-13    ordinance or the county by order may require the owner or lessee of

23-14    an approved venue project in the municipality or county to collect

23-15    the tax for the benefit of the municipality or county.

23-16          (b)  An owner or lessee required to collect the tax under

23-17    this section shall add the tax to the admissions price, and the tax

23-18    is a part of the admissions price, a debt owed to the owner or

23-19    lessee of the approved venue project by the person admitted, and

23-20    recoverable at law in the same manner as the admissions charge.

23-21          (c)  The tax imposed by this subchapter is not an occupation

23-22    tax imposed on the owner or lessee of the approved venue project.

23-23          Sec. 334.155.  EFFECTIVE DATE AND ENDING DATE OF TAX.  (a)  A

23-24    tax imposed under this subchapter or a change in a tax rate takes

23-25    effect on the date prescribed by the ordinance or order imposing

23-26    the tax or changing the rate.

23-27          (b)  A municipality or county may impose a tax under this

 24-1    subchapter only if the municipality or county issues bonds or other

 24-2    obligations under Section 334.043.  The municipality or county may

 24-3    impose the tax only while those bonds or other obligations are

 24-4    outstanding and unpaid.

 24-5          Sec. 334.156.  COLLECTION OF TAX.  (a)  A person required to

 24-6    collect a tax imposed under this subchapter shall report and send

 24-7    the taxes to the municipality or county as provided by the

 24-8    municipality or county imposing the tax.

 24-9          (b)  A municipality by ordinance or a county by order may

24-10    prescribe penalties, including interest charges, for failure to

24-11    keep records required by the municipality or county, to report when

24-12    required, or to pay the tax when due.  The attorney acting for the

24-13    municipality or county may bring suit against a person who fails to

24-14    collect a tax under this subchapter and to pay it over to the

24-15    municipality or county as required.

24-16          (c)  A municipality by ordinance or a county by order may

24-17    permit a person who is required to collect a tax under this

24-18    subchapter to retain a percentage of the amount collected and

24-19    required to be reported as reimbursement to the person for the

24-20    costs of collecting the tax.  The municipality or county may

24-21    provide that the person may retain the amount only if the person

24-22    pays the tax and files reports as required by the municipality or

24-23    county.

24-24          Sec. 334.157.  DEPOSIT OF TAX REVENUE.  Revenue from the tax

24-25    imposed under this subchapter shall be deposited in the venue

24-26    project fund of the municipality or county imposing the tax.

 25-1             (Sections 334.158-334.200 reserved for expansion

 25-2                        SUBCHAPTER G.  PARKING TAX

 25-3          Sec. 334.201.  EVENT PARKING TAX.  (a)  A municipality by

 25-4    ordinance or a county by order may impose a tax on each motor

 25-5    vehicle parking in a parking facility of an approved venue project.

 25-6          (b)  The municipality or county may impose the tax during a

 25-7    period beginning not more than three hours before and ending not

 25-8    more than three hours after the time an event in an approved venue

 25-9    project is scheduled to begin.  The municipality or county may not

25-10    impose the tax under this subchapter during any other time.

25-11          (c)  A municipality or county may impose a tax under this

25-12    subchapter only if the tax is approved at an election held under

25-13    Section 334.024.

25-14          Sec. 334.202.  TAX RATE.  (a)  The municipality by ordinance

25-15    or the county by order may provide that the tax is imposed at a

25-16    flat amount on each parked motor vehicle or is imposed as a

25-17    percentage of the amount charged for event parking by the owner or

25-18    lessee of the parking facility.

25-19          (b)  Regardless of the method of imposition, the amount of

25-20    the tax may not exceed $1 for each motor vehicle.

25-21          (c)  The ballot proposition at the election held to adopt the

25-22    tax must specify the maximum rate of the tax to be adopted.

25-23          (d)  The municipality by ordinance or the county by order may

25-24    repeal or decrease the rate of the tax imposed under this section.

25-25          Sec. 334.203.  RATE INCREASE.  (a)  A municipality or county

25-26    that has adopted a tax under this subchapter at a rate of less than

25-27    $1 a vehicle may by ordinance or order increase the rate of the tax

 26-1    to a maximum of $1 a vehicle if the increase is approved by a

 26-2    majority of the registered voters of that municipality or county

 26-3    voting at an election called and held for that purpose.

 26-4          (b)  The ballot for an election to increase the rate of the

 26-5    tax shall be printed to permit voting for or against the

 26-6    proposition:  "The increase of the parking tax for the purpose of

 26-7    financing _______ (insert description of venue project) to a

 26-8    maximum rate of _______ (insert new maximum rate not to exceed

 26-9    $1)."

26-10          Sec. 334.204.  COLLECTION.  (a)  The municipality by

26-11    ordinance or the county by order may require the owner or lessee of

26-12    a parking facility to collect the tax for the benefit of the

26-13    municipality or county.

26-14          (b)  An owner or lessee required to collect the tax under

26-15    this section shall add the tax to the parking charge, and the tax

26-16    is a part of the parking charge, a debt owed to the parking

26-17    facility owner or lessee by the person parking, and recoverable at

26-18    law in the same manner as the parking charge.

26-19          (c)  The tax imposed by this subchapter is not an occupation

26-20    tax imposed on the owner or lessee of the parking facility.

26-21          Sec. 334.205.  EFFECTIVE DATE AND ENDING DATE OF TAX.  (a)  A

26-22    tax imposed under this subchapter or a change in the tax rate takes

26-23    effect on the date prescribed by the ordinance or order imposing

26-24    the tax or changing the rate.

26-25          (b)  A municipality or county may impose a tax under this

26-26    subchapter only if the municipality or county issues bonds or other

26-27    obligations under Section 334.043.  The municipality or county may

 27-1    impose the tax only while those bonds or other obligations are

 27-2    outstanding and unpaid.

 27-3          Sec. 334.206.  COLLECTION OF TAX.  (a)  A person required to

 27-4    collect a tax imposed under this subchapter shall report and send

 27-5    the taxes to the municipality or county as provided by the

 27-6    municipality or county imposing the tax.

 27-7          (b)  A municipality by ordinance or a county by order may

 27-8    prescribe penalties, including interest charges, for failure to

 27-9    keep records required by the municipality or county, to report when

27-10    required, or to pay the tax when due.  The attorney acting for the

27-11    municipality or county may bring suit against a person who fails to

27-12    collect a tax under this subchapter and to pay it over to the

27-13    municipality or county as required.

27-14          (c)  A municipality by ordinance or a county by order may

27-15    permit a person who is required to collect a tax under this

27-16    subchapter to retain a percentage of the amount collected and

27-17    required to be reported as reimbursement to the person for the

27-18    costs of collecting the tax.  The municipality or county may

27-19    provide that the person may retain the amount only if the person

27-20    pays the tax and files reports as required by the municipality or

27-21    county.

27-22          Sec. 334.207.  DEPOSIT OF TAX REVENUE.  Revenue from the tax

27-23    imposed under this subchapter shall be deposited in the venue

27-24    project fund of the municipality or county imposing the tax.

27-25             (Sections 334.208-334.250 reserved for expansion

27-26                   SUBCHAPTER H.  HOTEL OCCUPANCY TAXES

27-27          Sec. 334.251.  DEFINITION.  In this subchapter, "hotel" has

 28-1    the meaning assigned by Section 156.001, Tax Code.

 28-2          Sec. 334.252.  IMPOSITION OF TAX.  (a)  A municipality by

 28-3    ordinance or a county by order may impose a tax on a person who,

 28-4    under a lease, concession, permit, right of access, license,

 28-5    contract, or agreement, pays for the use or possession or for the

 28-6    right to the use or possession of a room that is in a hotel, costs

 28-7    $2 or more each day, and is ordinarily used for sleeping.

 28-8          (b)  A municipality or county may impose a tax under this

 28-9    subchapter only if:

28-10                (1)  an approved venue project is or is planned to be

28-11    located in the municipality or county; and

28-12                (2)  the tax is approved at an election held under

28-13    Section 334.024.

28-14          Sec. 334.253.  TAX CODE APPLICABLE.  (a)  Sections

28-15    351.002(c), 351.004, 351.0041, 351.005, and 351.006, Tax Code,

28-16    govern the imposition, computation, administration, collection, and

28-17    remittance of a municipal tax authorized under this subchapter

28-18    except as inconsistent with this subchapter.

28-19          (b)  Sections 352.002(c), 352.004, 352.0041, 352.005, and

28-20    352.007, Tax Code, govern the imposition, computation,

28-21    administration, collection, and remittance of a county tax

28-22    authorized under this subchapter except as inconsistent with this

28-23    subchapter.

28-24          (c)  The tax imposed by this subchapter is in addition to a

28-25    tax imposed under Chapter 351 or 352, Tax Code.

28-26          Sec. 334.254.  TAX RATE.  (a)  The tax authorized by this

28-27    subchapter may be imposed at any rate not to exceed five percent of

 29-1    the price paid for a room in a hotel.

 29-2          (b)  The ballot proposition at the election held to adopt the

 29-3    tax must specify the maximum rate of the tax to be adopted.

 29-4          Sec. 334.255.  RATE INCREASE.  (a)  A municipality or county

 29-5    that has adopted a tax under this subchapter  at a rate of less

 29-6    than five percent may by ordinance or order increase the rate of

 29-7    the tax to a maximum of five percent if the increase is approved by

 29-8    a majority of the registered voters of that municipality or county

 29-9    voting at an election called and held for that purpose.

29-10          (b)  The ballot for an election to increase the rate of the

29-11    tax shall be printed to permit voting for or against the

29-12    proposition:  "The increase of the hotel occupancy tax for the

29-13    purpose of financing __________  (insert description of venue

29-14    project) to a maximum rate of ___________ percent (insert new

29-15    maximum rate not to exceed five percent)."

29-16          Sec. 334.256.  NOTICE OF TAX.  Each bill or other receipt for

29-17    a hotel charge subject to the tax imposed under this subchapter

29-18    must contain a statement in a conspicuous location stating:

29-19    "_____________ (insert name of taxing municipality or county)

29-20    requires that an additional tax of _____ percent (insert rate of

29-21    tax) be imposed on each hotel charge for the purpose of financing a

29-22    venue project."

29-23          Sec. 334.257.  EFFECTIVE DATE AND ENDING DATE OF TAX.  (a)  A

29-24    tax imposed under this subchapter or a change in the tax rate takes

29-25    effect on the date prescribed by the ordinance or order imposing

29-26    the tax or changing the rate.

29-27          (b)  A municipality or county may impose a tax under this

 30-1    subchapter only if the municipality or county issues bonds or other

 30-2    obligations under Section 334.043.  The municipality or county may

 30-3    impose the tax only while those bonds or other obligations are

 30-4    outstanding and unpaid.

 30-5          Sec. 334.258.  DEPOSIT OF TAX REVENUE.  Revenue from the tax

 30-6    imposed under this subchapter shall be deposited in the venue

 30-7    project fund of the municipality or county imposing the tax.

 30-8             (Sections 334.259-334.300 reserved for expansion

 30-9                      SUBCHAPTER I.  FACILITY USE TAX

30-10          Sec. 334.301.  DEFINITION.  In this subchapter, "major league

30-11    team" means a team that is a member of the National Football

30-12    League, National Basketball Association, or National Hockey League

30-13    or a major league baseball team.

30-14          Sec. 334.302.  TAX AUTHORIZED.  (a)  A municipality by

30-15    ordinance or a county by order may impose a facility use tax on

30-16    each member of a major league team that plays a professional sports

30-17    game in  an approved venue project in the municipality or county

30-18    for which the municipality or county has issued bonds to plan,

30-19    acquire, establish, develop, construct, or renovate the approved

30-20    venue project.

30-21          (b)  The municipality or county may not impose the facility

30-22    use tax under this subchapter for a professional sports game at a

30-23    venue that is not an approved venue project or for which the

30-24    municipality or county has not issued bonds to plan, acquire,

30-25    establish, develop, construct, or renovate the approved venue

30-26    project.

30-27          (c)  A municipality or county may impose a tax under this

 31-1    subchapter only if:

 31-2                (1)  an approved venue project is or will be located in

 31-3    the municipality or county; and

 31-4                (2)  the tax is approved at an election held under

 31-5    Section 334.024.

 31-6          Sec. 334.303.  TAX RATE.  (a)  The tax authorized by this

 31-7    subchapter is imposed at the tax rate on each member of the

 31-8    professional sports team for each professional game the member

 31-9    plays at the approved venue project.

31-10          (b)  The amount of the tax may be imposed at any uniform

31-11    monetary amount not to exceed $5,000 a game.

31-12          (c)  The ballot proposition at the election held to adopt the

31-13    tax must specify the maximum rate of the tax to be adopted.

31-14          (d)  The municipality by ordinance or the county by order may

31-15    repeal or decrease the rate of the tax imposed under this

31-16    subchapter.

31-17          Sec. 334.304.  RATE INCREASE.  (a)  A municipality or county

31-18    that has adopted a tax under this subchapter  at the rate of less

31-19    than $5,000 a  game may by ordinance or order increase the rate of

31-20    the tax to a maximum of $5,000 a game if the increase is approved

31-21    by a majority of the registered voters of that municipality or

31-22    county voting at an election called and held for that purpose.

31-23          (b)  The ballot for an election to increase the rate of the

31-24    tax shall be printed to permit voting for or against the

31-25    proposition:  "The increase of the facility use tax for the purpose

31-26    of financing _______ (insert description of venue project) to a

31-27    maximum rate of ________ a game (insert new maximum rate not to

 32-1    exceed $5,000)."

 32-2          Sec. 334.305.  COLLECTION.  (a)  The municipality by

 32-3    ordinance or the county by order may require the owner or lessee of

 32-4    an approved  venue project in the municipality or county to collect

 32-5    the tax for the benefit of the municipality or county.

 32-6          (b)  The tax imposed by this subchapter is a debt owed to the

 32-7    owner or lessee of the approved venue project by the team member

 32-8    and recoverable at law.

 32-9          (c)  The tax imposed by this subchapter is not an occupation

32-10    tax imposed on the owner or lessee of the approved venue project

32-11    or on the professional sports team member.

32-12          Sec. 334.306.  EFFECTIVE DATE AND ENDING DATE OF TAX.  (a)  A

32-13    tax imposed under this subchapter or a change in a tax  rate takes

32-14    effect on the date prescribed by the ordinance or order imposing

32-15    the tax or changing the rate.

32-16          (b)  A municipality or county may impose a tax under this

32-17    subchapter only if the municipality or county issues bonds or other

32-18    obligations under Section 334.043.  The municipality or county may

32-19    impose the tax only while those bonds or other obligations are

32-20    outstanding and unpaid.

32-21          Sec. 334.307.  COLLECTION OF TAX.  (a)  A person required to

32-22    collect a tax imposed under this subchapter shall report  and send

32-23    the taxes to the municipality or county as provided by the

32-24    municipality or county imposing the tax.

32-25          (b)  A municipality by ordinance or a county by order may

32-26    prescribe penalties, including interest charges, for failure to

32-27    keep records required by the municipality or county, to report when

 33-1    required, or to pay the tax when due.  The attorney acting for the

 33-2    municipality or county may bring suit against a person who  fails

 33-3    to collect a tax under this subchapter and to pay it over to the

 33-4    municipality or county as required.

 33-5          (c)  A municipality by ordinance or a county by order may

 33-6    permit a person who is required to collect a tax under this

 33-7    subchapter to  retain a percentage of the amount collected and

 33-8    required to be reported as reimbursement to the person for the

 33-9    costs of collecting the tax.  The municipality or county may

33-10    provide that the person may retain the amount only if the person

33-11    pays the tax and files reports as required by the municipality or

33-12    county.

33-13          Sec. 334.308.  DEPOSIT OF TAX REVENUE.  Revenue from the tax

33-14    imposed under this subchapter shall be deposited in the venue

33-15    project fund of the municipality or county imposing the tax.

33-16            CHAPTER 335.  SPORTS AND COMMUNITY VENUE DISTRICTS

33-17                     SUBCHAPTER A.  GENERAL PROVISIONS

33-18          Sec. 335.001.  DEFINITIONS.  In this chapter:

33-19                (1)  "Approved venue project" has the meaning assigned

33-20    by Section 334.001, except that the approval of the project must

33-21    occur under this chapter.

33-22                (2)  "Board" means the board of directors of a venue

33-23    district.

33-24                (3)  "District" means a venue district created under

33-25    this chapter.

33-26                (4)  "Related infrastructure" has the meaning assigned

33-27    by Section 334.001.

 34-1                (5)  "Venue" has the meaning assigned by Section

 34-2    334.001.

 34-3                (6)  "Venue project" has the meaning assigned by

 34-4    Section 334.001, except that the actions described by that section

 34-5    must occur under this chapter.

 34-6          Sec. 335.002.  APPLICATION TO VENUE CONSTRUCTED UNDER OTHER

 34-7    LAW.  A district may use this chapter for a venue project relating

 34-8    to a venue and related infrastructure planned, acquired,

 34-9    established, developed, constructed, or renovated under other law,

34-10    including Section 4B, Development Corporation Act of 1979 (Article

34-11    5190.6, Vernon's Texas Civil Statutes), or Subchapter E, Chapter

34-12    451, Transportation Code.

34-13          Sec. 335.003.  OTHER USES OF VENUE PERMITTED.  This chapter

34-14    does not prohibit the use of a venue for an event that is not

34-15    related to a purpose described by Section 334.001, such as a

34-16    community-related event.

34-17          Sec. 335.004.  SPECIFIC PERFORMANCE.  (a)  The legislature

34-18    expressly finds and determines that:

34-19                (1)  the presence of a professional sports team in an

34-20    approved venue project built or renovated under this chapter

34-21    provides a unique value to the district that built or renovated the

34-22    project and to each political subdivision that created the district

34-23    that cannot be adequately valued in money; and

34-24                (2)  the district that built or renovated the approved

34-25    venue project and each political subdivision that created the

34-26    district would suffer irreparable injury if a professional sports

34-27    team breaches its obligation to play its home games in the approved

 35-1    venue project as required by an agreement between the sports team

 35-2    and the district.

 35-3          (b)  An agreement described by Subsection (a)(2) shall be

 35-4    enforceable by specific performance in the courts of this state.  A

 35-5    waiver of this remedy is contrary to public policy and is

 35-6    unenforceable and void.

 35-7             (Sections 335.005-335.020 reserved for expansion

 35-8                       SUBCHAPTER B.  VENUE DISTRICT

 35-9          Sec. 335.021.  CREATION.  Two or more counties, two or more

35-10    municipalities, or a municipality and a county may create a venue

35-11    district under this chapter to plan, acquire, establish,  develop,

35-12    construct, or renovate one or more venue projects in the district

35-13    subject to voter approval under Subchapter D.

35-14          Sec. 335.022.  ORDER CREATING DISTRICT.  Two or more

35-15    counties, two or more municipalities, or a municipality and a

35-16    county may create a district under this chapter by  adopting

35-17    concurrent orders.  A concurrent order must:

35-18                (1)  contain identical provisions;

35-19                (2)  define the boundaries of the district to be

35-20    coextensive with each creating political subdivision; and

35-21                (3)  designate the number of directors, the manner of

35-22    appointment, and the manner in which the chair will be appointed in

35-23    accordance with Section 335.031.

35-24          Sec. 335.023.  POLITICAL SUBDIVISION; OPEN MEETINGS.  (a)  A

35-25    district is a political subdivision of the creating political

35-26    subdivisions and of this state.

35-27          (b)  A district is subject to Chapter 551, Government Code.

 36-1             (Sections 335.024-335.030 reserved for expansion)

 36-2                     SUBCHAPTER C.  BOARD OF DIRECTORS

 36-3          Sec. 335.031.  COMPOSITION AND APPOINTMENT OF BOARD.  (a)  A

 36-4    district is governed by a board of  at least four directors.

 36-5          (b)  The board is appointed by the mayors or county judges,

 36-6    or both as appropriate, of the political subdivisions that create

 36-7    the district in accordance with the concurrent order.

 36-8          (c)  Directors serve staggered two-year terms.  A director

 36-9    may be removed by the appointing mayor or county judge at any time

36-10    without cause.  Successor directors are appointed in the same

36-11    manner as the original appointees.

36-12          (d)  To qualify to serve as a director, a person must be a

36-13    resident of the appointing political subdivision.  An employee,

36-14    officer, or member of the governing body of the appointing

36-15    political subdivision may serve as a director, but may not have a

36-16    personal interest in a contract executed by the district other than

36-17    as an employee, officer, or member of the governing body of the

36-18    political subdivision.

36-19          Sec. 335.032.  COMPENSATION.  A board member is not entitled

36-20    to compensation,  but is entitled to reimbursement for actual and

36-21    necessary expenses.

36-22          Sec. 335.033.  MEETINGS.  The board shall conduct its

36-23    meetings in the district.

36-24          Sec. 335.034.  OFFICERS.  The presiding officer is designated

36-25    as provided by the concurrent order.  The board shall designate

36-26    from the members of the board a secretary and other officers the

36-27    board considers  necessary.

 37-1             (Sections 335.035-335.050 reserved for expansion

 37-2                       SUBCHAPTER D.  VENUE PROJECTS

 37-3          Sec. 335.051.  RESOLUTION AUTHORIZING PROJECT.  (a)  A

 37-4    district by resolution may provide for the planning, acquisition,

 37-5    establishment, development, construction, or renovation of a venue

 37-6    project if:

 37-7                (1)  the comptroller determines under Section 335.052

 37-8    or 335.053 that the implementation of the resolution will not have

 37-9    a significant negative fiscal impact on state revenue; and

37-10                (2)  the resolution is approved by a majority of the

37-11    qualified voters of each political subdivision that created the

37-12    district voting at separate elections called and held for that

37-13    purpose under Section 335.054.

37-14          (b)  The resolution must designate each venue project and

37-15    each method of financing authorized by this chapter that the

37-16    district wants to use to finance a project.  A resolution may

37-17    designate more than one method of financing.

37-18          Sec. 335.052.  STATE FISCAL IMPACT ANALYSIS.  (a) Before

37-19    calling an election on the resolution under Section 335.054, the

37-20    district shall send a copy of the resolution to the comptroller.

37-21          (b)  Before the 15th day after the date the comptroller

37-22    receives the copy of the resolution, the comptroller shall:

37-23                (1)  perform an analysis to determine if approval and

37-24    implementation of the resolution will have a significant negative

37-25    fiscal impact on state revenue; and

37-26                (2)  provide to the district written notice of the

37-27    results of the analysis.

 38-1          (c)  If the comptroller determines that implementation will

 38-2    have a significant negative fiscal impact on state revenue, the

 38-3    written analysis required under Subsection (b)(2) must include

 38-4    information on how to change the resolution so that implementation

 38-5    will not have a significant negative fiscal impact on state

 38-6    revenue.

 38-7          (d)  If the comptroller does not complete the analysis and

 38-8    provide the notice before the 15th day after the date the

 38-9    comptroller receives the copy of the resolution, the comptroller is

38-10    considered to have determined that approval and implementation of

38-11    the resolution will not have a significant negative fiscal impact

38-12    on state revenue.

38-13          Sec. 335.053.  APPEAL OF COMPTROLLER DETERMINATION.  (a)  If

38-14    the comptroller determines under Section 335.052 that

38-15    implementation of the resolution will have a significant negative

38-16    fiscal impact on state revenue, the district may contest the

38-17    finding by filing an appeal with the comptroller not later than the

38-18    10th day after the date the district receives the written notice

38-19    under Section 335.052.

38-20          (b)  Before the 11th day after the date the comptroller

38-21    receives the appeal under Subsection (a), the comptroller shall

38-22    perform a new analysis to determine if implementation of the

38-23    resolution will have a significant negative fiscal impact on state

38-24    revenue and provide to the district written notice of the results

38-25    of the analysis.

38-26          (c)  If the comptroller again determines that implementation

38-27    will have a significant negative fiscal impact on state revenue,

 39-1    the written analysis required under Subsection (b) must include

 39-2    additional information on how to change the resolution so that

 39-3    implementation will not have a significant negative fiscal impact

 39-4    on state revenue.

 39-5          (d)  If the comptroller does not comply with Subsection (b)

 39-6    before the 11th day after the date the comptroller receives the

 39-7    appeal or request for information, the comptroller is considered to

 39-8    have determined that approval and implementation of the resolution

 39-9    will not have a significant negative fiscal impact on state

39-10    revenue.

39-11          Sec. 335.054.  ELECTION.  (a)  If the comptroller determines

39-12    under Section 335.052 or 335.053 that implementation of the

39-13    resolution will not have a significant negative fiscal impact on

39-14    state revenue, the board may order a separate election in each

39-15    political subdivision that created the district on the question of

39-16    approving and implementing the resolution.  The elections shall be

39-17    held on the same day.

39-18          (b)  The order calling the elections must:

39-19                (1)  allow the voters to vote separately on each venue

39-20    project;

39-21                (2)  designate the venue project;

39-22                (3)  designate each method of financing authorized by

39-23    this chapter that the district wants to use to finance the project

39-24    and the maximum rate of each method; and

39-25                (4)  allow the voters to vote, in the same proposition

39-26    or in separate propositions, on each method of financing authorized

39-27    by this chapter that the district wants to use to finance the

 40-1    project and the maximum rate of each method.

 40-2          (c)  The ballot at the elections held under this section must

 40-3    be printed to permit voting for or against the proposition:

 40-4    "Authorizing _________  (insert name of district) to __________

 40-5    (insert description of venue project) and to impose a __________

 40-6    tax (insert type of tax) at the rate of ________ (insert maximum

 40-7    rate) for the purpose of financing the venue project."

 40-8          (d)  If more than one method of financing is to be voted on

 40-9    in one proposition, the ballot must be printed to permit voting for

40-10    or against the proposition:  "Authorizing _________ (insert name of

40-11    district) to __________ (insert description of venue project) and

40-12    to impose a __________ tax at the rate of ________ (insert each

40-13    type of tax and the maximum rate of each tax) for the purpose of

40-14    financing the venue project."

40-15          (e)  If a majority of the votes cast at the election in each

40-16    creating political subdivision approves the proposition authorizing

40-17    the project, the district may implement the resolution.  If a

40-18    majority of the votes cast in one or more of the creating political

40-19    subdivisions disapproves the proposition authorizing the project,

40-20    the district may not implement the resolution.  If the project is

40-21    approved, but one or more financing methods contained in separate

40-22    propositions are disapproved, the district may use only the

40-23    approved financing methods.

40-24          (f)  The Election Code governs an election held under this

40-25    chapter.

40-26             (Sections 335.055-335.070 reserved for expansion

 41-1                     SUBCHAPTER E.  POWERS AND DUTIES

 41-2          Sec. 335.071.  GENERAL POWERS OF DISTRICT.  (a)  A district

 41-3    may:

 41-4                (1)  perform any act necessary to the full exercise of

 41-5    the district's powers;

 41-6                (2)  accept a grant or loan from a:

 41-7                      (A)  department or agency of the United States;

 41-8                      (B)  department, agency, or political subdivision

 41-9    of this state; or

41-10                      (C)  public or private person;

41-11                (3)  acquire, sell, lease, convey, or otherwise dispose

41-12    of property or an interest in property, including a right-of-way or

41-13    easement or an approved  venue project, under terms and conditions

41-14    determined by the district;

41-15                (4)  employ necessary personnel; and

41-16                (5)  adopt rules to govern the operation of the

41-17    district and its employees and property.

41-18          (b)  A district may contract with a public or private person,

41-19    including one or more political subdivisions that created the

41-20    district or a sports team, club, organization, or other entity, to:

41-21                (1)  plan, acquire, establish, develop, construct, or

41-22    renovate an approved venue project; or

41-23                (2)  perform any other act the district is authorized

41-24    to perform under this chapter.

41-25          (c)  A district may contract with or enter into an interlocal

41-26    agreement with a school district, junior or community college

41-27    district, or an institution of higher education as defined by

 42-1    Section 61.003, Education Code, for a purpose described by

 42-2    Subsection (b).  The contract or interlocal agreement may provide

 42-3    for joint ownership and operation or joint use.

 42-4          (d)  The competitive bidding laws, including Chapter 271, do

 42-5    not apply to the planning, acquisition, establishment, development,

 42-6    construction, or renovation of an approved venue project.

 42-7          (e)  A district may impose any tax a county may impose under

 42-8    Chapter 334, subject to approval of the voters of the district as

 42-9    prescribed by this chapter and Chapter 334.  The district shall

42-10    impose the tax in the same manner as a county.

42-11          (f)  A district may not levy an ad valorem tax.

42-12          Sec. 335.072.  VENUE PROJECT FUND.  (a)  A district in which

42-13    an approved venue project is located shall establish by resolution

42-14    a fund known as the venue project fund.  The district shall

42-15    establish separate accounts within the fund for the various revenue

42-16    sources.

42-17          (b)  The district shall deposit into the venue project fund:

42-18                (1)  the proceeds from any tax imposed by the district;

42-19                (2)  all revenue from the sale of bonds or other

42-20    obligations by the district;

42-21                (3)  money received under Section 335.075 from a

42-22    political subdivision that created the district; and

42-23                (4)  any other money required by law to be deposited in

42-24    the fund.

42-25          (c)  The district may deposit into the venue project fund:

42-26                (1)  money derived from innovative funding concepts

42-27    such as the sale or lease of luxury boxes or the sale of licenses

 43-1    for personal seats; and

 43-2                (2)  any other revenue derived from the approved venue

 43-3    project, including stadium rental payments and revenue from

 43-4    concessions and parking.

 43-5          (d)  The district may use money in the venue project fund

 43-6    only to:

 43-7                (1)  reimburse the district or a political subdivision

 43-8    that created the district for or pay the costs of planning,

 43-9    acquiring, establishing, developing, constructing, or renovating

43-10    one or more approved venue projects in the district;

43-11                (2)  pay the principal of, interest on, and other costs

43-12    relating to bonds or other obligations  issued by the district or

43-13    to refund bonds or other obligations; or

43-14                (3)  pay the costs of operating or maintaining one or

43-15    more approved venue projects.

43-16          (e)  Money deposited into the venue project fund, including

43-17    money deposited under Subsection (c), is the property of the

43-18    district depositing the money.

43-19          Sec. 335.073.  BONDS AND OTHER OBLIGATIONS.  (a)  A district

43-20    in which an approved venue project is located  may issue bonds,

43-21    including revenue bonds and refunding bonds, or other obligations

43-22    to pay the costs of the approved venue project.  For a district

43-23    created by a county with a population of more than 2.2 million and

43-24    a municipality with a population of more than 1.2 million, the

43-25    power of the district to issue bonds or other obligations is

43-26    subject to the prior approval by the governing bodies of the county

43-27    and municipality.

 44-1          (b)  The bonds or other obligations and the proceedings

 44-2    authorizing the bonds or other obligations shall be submitted to

 44-3    the attorney general for review and approval as required by Article

 44-4    3, Chapter 53, Acts of the 70th Legislature, 2nd Called Session,

 44-5    1987 (Article 717k-8, Vernon's Texas Civil Statutes).

 44-6          (c)  The bonds or other obligations must be payable from and

 44-7    secured by the revenues in the venue project fund.

 44-8          (d)  The bonds or other obligations may mature serially or

 44-9    otherwise not more than 30 years from their date of issuance.

44-10          (e)  The bonds or other obligations are not a debt of and do

44-11    not create a claim for payment against the revenue or property of

44-12    the district other than the revenue sources pledged and an approved

44-13    venue  project for which the bonds are issued.

44-14          (f)  A district may issue short term obligations and enter

44-15    into credit agreements under Chapter 656, Acts of the 68th

44-16    Legislature, Regular Session, 1983 (Article 717q, Vernon's Texas

44-17    Civil Statutes).  For purposes of that Act, a district is a "public

44-18    utility" and an approved venue project is an "eligible project."

44-19          Sec. 335.074.  PUBLIC PURPOSE OF VENUE PROJECT.  (a)  The

44-20    legislature finds for all constitutional and statutory purposes

44-21    that an approved venue project is owned, used, and held for public

44-22    purposes by the district.

44-23          (b)  Section 25.07(a), Tax Code, does not apply to a

44-24    leasehold or other possessory interest granted by the district

44-25    while the district owns the venue project.

44-26          (c)  The project is exempt from taxation under Section 11.11,

44-27    Tax Code, while the district owns the venue project.

 45-1          (d)  If approval and implementation of a resolution under

 45-2    this chapter results in the removal from a school district's

 45-3    property tax rolls of real property otherwise subject to ad valorem

 45-4    taxation, the operator of the approved venue project located on

 45-5    that real property shall pay to the school district on January 1 of

 45-6    each year in which the project is in operation and in which the

 45-7    real property is exempt from ad valorem taxation an amount equal to

 45-8    the ad valorem taxes that would otherwise have been levied for the

 45-9    preceding tax year on that real property by the school district,

45-10    without including the value of any improvements.  This subsection

45-11    does not apply if the operator of the project is a political

45-12    subdivision of this state.

45-13          Sec. 335.075.  DEDICATION OR GRANT OF CERTAIN REVENUE BY

45-14    CREATING MUNICIPALITY.  (a)  A municipality  that created the

45-15    district may contribute  or dedicate to the district municipal

45-16    sales and use tax revenue received by the municipality that is

45-17    generated, paid, or collected by any or all businesses operating in

45-18    an approved venue project.

45-19          (b)  The municipality may contribute or dedicate money under

45-20    this section only if:

45-21                (1)  the contribution or dedication is approved at an

45-22    election called and held for that purpose in the municipality; and

45-23                (2)  the municipality determines that the approved

45-24    venue project from which the revenue was derived will contribute to

45-25    the economic, cultural, or recreational development or well-being

45-26    of the residents of the municipality.

45-27          (c)  This section is cumulative of any provision in Chapter

 46-1    321, Tax Code, authorizing a municipality to pledge sales and use

 46-2    tax revenue for an approved project.  An election held for the

 46-3    purpose of pledging revenue under Chapter 321, Tax Code, satisfies

 46-4    the election requirement prescribed by Subsection (b)(1).

 46-5          SECTION 2.  Section 4A, Development Corporation Act of 1979

 46-6    (Article 5190.6, Vernon's Texas Civil Statutes), is amended by

 46-7    adding Subsection (i-1) to read as follows:

 46-8          (i-1)  The corporation may not undertake a project to

 46-9    acquire, construct, remodel, renovate, operate, or maintain a

46-10    sports venue or related  infrastructure.  In this subsection:

46-11                (1)  "Related infrastructure" has the meaning assigned

46-12    by Section 334.001, Local Government Code.

46-13                (2)  "Sports venue" means an arena, coliseum, stadium,

46-14    or other type of area or facility:

46-15                      (A)  that is primarily used or is planned for

46-16    primary use for one or more professional or amateur sports or

46-17    athletics events; and

46-18                      (B)  for which a fee for admission to the sports

46-19    or athletics events, other than occasional civic, charitable, or

46-20    promotional events, is charged or is planned to be charged.

46-21          SECTION 3.  Section 4B, Development Corporation Act of 1979

46-22    (Article 5190.6, Vernon's Texas Civil Statutes), is amended by

46-23    amending Subsection (a)(2) and by adding Subsections (a-3) and

46-24    (a-4) to read as follows:

46-25                (2)  "Project" means land, buildings, equipment,

46-26    facilities, and improvements included in the definition of that

46-27    term under Section 2 of this Act, including recycling facilities,

 47-1    and land, buildings, equipment, facilities, and improvements found

 47-2    by the board of directors to:

 47-3                      (A)  be required or suitable for use for

 47-4    [professional and amateur (including children's) sports, athletic,]

 47-5    entertainment,  tourist, convention, amateur (including children's)

 47-6    sports or athletics, but only if the project would not qualify as a

 47-7    sports venue, and public park purposes and events, including

 47-8    [stadiums, ball parks,] auditoriums, amphitheaters, concert halls,

 47-9    learning centers, parks and park facilities, open space

47-10    improvements, municipal buildings, museums, exhibition facilities,

47-11    and related store, restaurant, concession, and automobile parking

47-12    facilities, related area transportation facilities, and related

47-13    roads, streets, and water and sewer facilities, and other related

47-14    improvements that enhance any of those items; or

47-15                      (B)  promote or develop new or expanded business

47-16    enterprises, including a project to provide public safety

47-17    facilities, streets and roads, drainage and related improvements,

47-18    demolition of existing structures,  general municipally owned

47-19    improvements, as well as any improvements or facilities that are

47-20    related to any of those projects and any other project that the

47-21    board in its discretion determines promotes or develops new or

47-22    expanded business enterprises.

47-23          (a-3)  The corporation may not undertake a project to

47-24    acquire, construct, remodel, renovate, operate, or maintain a

47-25    sports venue or related  infrastructure.

47-26          (a-4)  In this section:

47-27                (1)  "Related infrastructure" has the meaning assigned

 48-1    by Section 334.001, Local Government Code.

 48-2                (2)  "Sports venue" means an arena, coliseum, stadium,

 48-3    or other type of area or facility:

 48-4                      (A)  that is primarily used or is planned for

 48-5    primary use for one or more professional or amateur sports or

 48-6    athletics events; and

 48-7                      (B)  for which a fee for admission to the sports

 48-8    or athletics events, other than occasional civic, charitable, or

 48-9    promotional events, is charged or is planned to be charged.

48-10          SECTION 4.  Subchapter F, Chapter 321, Tax Code, is amended

48-11    by adding Section 321.508 to read as follows:

48-12          Sec. 321.508.  PLEDGE OF TAX REVENUE.  (a)  A municipality

48-13    may call and hold an election on the issue of authorizing the

48-14    municipality to pledge  a percentage of the sales and use tax

48-15    revenue received under Section 321.101(a) or (b), or both, to the

48-16    payment of obligations issued to pay all or part of the costs of

48-17    one or more sports and community venue projects located in the

48-18    municipality.

48-19          (b)  The ballot at the election under this section must be

48-20    printed to permit voting for or against the proposition:

48-21    "Authorizing the City of ______ (insert name of municipality) to

48-22    pledge not more than ____ percent (insert percentage not to exceed

48-23    25 percent) of the revenue received from the _________ (insert

48-24    municipal sales and use tax, additional municipal sales and use

48-25    tax, or both) previously adopted in the city to the payment of

48-26    obligations issued to pay all or part of the costs of _________

48-27    (insert description of  each sports and community venue project)."

 49-1          (c)  If a majority of the voters vote in favor of the

 49-2    proposition, the municipality may:

 49-3                (1)  issue bonds, notes, or other obligations that are

 49-4    payable from the pledged revenues to pay for all or part of the

 49-5    costs of the sports and community venue project or projects

 49-6    described in the proposition; and

 49-7                (2)  set aside the portion of the revenue approved at

 49-8    the election that the municipality actually receives and pledge

 49-9    that revenue as security for the payment of the bonds, notes, or

49-10    other obligations.

49-11          (d)  If the municipality pledges revenue under Subsection

49-12    (c), the pledge and security interest shall continue while the

49-13    bonds, notes, or obligations, including refunding obligations, are

49-14    outstanding and unpaid.

49-15          (e)  The municipality may direct the comptroller to deposit

49-16    the pledged revenue to a trust or account as may be required to

49-17    obtain the financing and to protect the related security interest.

49-18          (f)  Sections 321.506 and 321.507 do not apply to taxes

49-19    pledged under this section.

49-20          (g)  In this section, "sports and community venue project"

49-21    has the meaning assigned by Section 334.001, Local Government Code.

49-22          SECTION 5.  The changes in law made by this Act do not apply

49-23    to the use of tax revenue pledged to secure bonds issued before the

49-24    effective  date of this Act.  Tax revenue pledged to secure bonds

49-25    issued before the effective date of this Act is governed by the law

49-26    in effect on the date the bonds were issued, and that law is

49-27    continued in effect for that purpose.

 50-1          SECTION 6.  (a)  This Act does not affect the authority of:

 50-2                (1)  a municipality that created an industrial

 50-3    development corporation under Section 4A or 4B, Development

 50-4    Corporation Act of 1979 (Article 5190.6, Vernon's Texas Civil

 50-5    Statutes), before the effective date of this Act to continue to

 50-6    collect any tax authorized for the benefit of the corporation

 50-7    before that date; or

 50-8                (2)  an industrial development corporation described by

 50-9    Subdivision (1) to continue a project or category of projects

50-10    authorized for the corporation before the effective date of this

50-11    Act that the corporation had begun before that date.

50-12          (b)  A tax collected under Subsection (a)(1) of this section

50-13    or a project continued under Subsection (a)(2) of this section is

50-14    subject to the same restrictions applicable under Sections 4A and

50-15    4B, Development Corporation Act of 1979 (Article 5190.6, Vernon's

50-16    Texas Civil Statutes), as those sections existed immediately before

50-17    the effective date of this Act, and that law is continued in effect

50-18    for that purpose.

50-19          SECTION 7.  (a)  Notwithstanding any other provision of

50-20    Chapter 334 or 335, Local Government Code, as added by this Act, an

50-21    election to approve a sports and community venue project, to

50-22    approve a method of financing for the project, other than the

50-23    imposition of a sales and use tax, or to create a sports and

50-24    community venue district in a specific county or municipality is

50-25    not necessary if, at an election held before the effective date of

50-26    this Act, the voters of that county, or of the county in which the

50-27    municipality or district is primarily located, authorized the

 51-1    establishment and operation of new or renovated stadiums, arenas,

 51-2    or other facilities for professional sports teams.  This section:

 51-3                (1)  negates the necessity of an election only for the

 51-4    type of venue approved at the previous election; and

 51-5                (2)  does not negate the necessity of an election for

 51-6    approval of the imposition of a sales and use tax to finance a

 51-7    venue.

 51-8          (b)  Effective October 1, 1997, there is imposed within the

 51-9    boundaries of a sports and community venue district described by

51-10    Subsection (a) of this section:

51-11                (1)  a short-term motor vehicle rental tax in

51-12    accordance with Subchapter E, Chapter 334, Local Government Code,

51-13    as added by this Act, at the rate prescribed by order of the

51-14    district but not to exceed the maximum rate prescribed by Section

51-15    334.103(a), Local Government Code, as added by this Act; and

51-16                (2)  a hotel occupancy tax in accordance with

51-17    Subchapter H, Chapter 334, Local Government Code, as added by this

51-18    Act, at the rate prescribed by order of the district but not to

51-19    exceed the maximum rate prescribed by Section 334.254(a), Local

51-20    Government Code, as added by this Act.

51-21          SECTION 8.  Notwithstanding any other provision of Chapter

51-22    334 or 335, Local Government Code, as added by this Act, a

51-23    municipality, county, or venue district is not required to obtain

51-24    from the comptroller a determination of state fiscal impact if, at

51-25    an election held before the effective date of this Act, the voters

51-26    of that county, or of the county in which the municipality or

51-27    district is primarily located, authorized the establishment and

 52-1    operation of new or renovated stadiums, arenas, or other facilities

 52-2    for professional sports teams.  This section negates the necessity

 52-3    of a comptroller determination only for the type of venue project

 52-4    approved at the previous election.

 52-5          SECTION 9.  All acts or proceedings authorized or undertaken

 52-6    by a sports and community venue district or by a county or

 52-7    municipality that created the district that were undertaken before

 52-8    the effective date of this Act, including acts or proceedings to

 52-9    create the district, are validated and confirmed in all respects,

52-10    provided that the validation and confirmation do not apply to an

52-11    act or proceeding that is subject to litigation that is pending on

52-12    the effective date of this Act.

52-13          SECTION 10.  If any provision of this Act or its application

52-14    to any person or circumstance is held invalid, the invalidity does

52-15    not affect other provisions or applications of this Act that can be

52-16    given effect without the invalid provision or application, and to

52-17    this end the provisions of this Act are severable.

52-18          SECTION 11.  The importance of this legislation and the

52-19    crowded condition of the calendars in both houses create an

52-20    emergency and an imperative public necessity that the

52-21    constitutional rule requiring bills to be read on three several

52-22    days in each house be suspended, and this rule is hereby suspended,

52-23    and that this Act take effect and be in force from and after its

52-24    passage, and it is so enacted.