By Brimer H.B. No. 92
75R857 CBH-D
A BILL TO BE ENTITLED
1-1 AN ACT
1-2 relating to the financing of sports venues and related
1-3 infrastructure; authorizing the imposition of certain local taxes
1-4 and the issue 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 VENUES
1-9 SUBCHAPTER A. GENERAL PROVISIONS
1-10 Sec. 334.001. DEFINITIONS. In this chapter:
1-11 (1) "Approved sports venue project" means a sports
1-12 venue project that has been approved under this chapter by the
1-13 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, concession, automobile parking facility, area
1-18 transportation facility, road, street, water, or sewer facility,
1-19 or other on-site or off-site improvement that relates to and
1-20 enhances the use, value, or appeal of a sports venue and any other
1-21 expenditure reasonably necessary to construct, improve, renovate,
1-22 or expand a sports venue.
1-23 (4) "Sports venue" means an arena, coliseum, stadium,
1-24 or other type of area or facility:
2-1 (A) that is primarily used or is planned for
2-2 primary use for one or more professional or amateur sports or
2-3 athletics events; and
2-4 (B) for which a fee for admission to the sports
2-5 or athletics events, other than occasional civic, charitable, or
2-6 promotional events, is charged or is planned to be charged.
2-7 (5) "Sports venue project" means a sports venue and
2-8 related infrastructure that is planned, acquired, established,
2-9 developed, constructed, or renovated under this chapter.
2-10 Sec. 334.002. APPLICATION TO SPORTS VENUE CONSTRUCTED UNDER
2-11 OTHER LAW. A county or municipality may use this chapter for a
2-12 sports venue project relating to a sports venue and related
2-13 infrastructure planned, acquired, established, developed,
2-14 constructed, or renovated under other law, including Section 4B,
2-15 Development Corporation Act of 1979 (Article 5190.6, Vernon's Texas
2-16 Civil Statutes), or Subchapter E, Chapter 451, Transportation Code,
2-17 only if:
2-18 (1) all bonds or other obligations issued under the
2-19 other law in relation to the project have been paid in full; or
2-20 (2) the full amount of money, exclusive of guaranteed
2-21 interest, necessary to pay in full the bonds or other obligations
2-22 has been set aside in a trust account dedicated to the payment of
2-23 the bonds and other obligations.
2-24 Sec. 334.003. OTHER USES OF SPORTS VENUE PERMITTED. This
2-25 chapter does not prohibit the use of a sports venue for an event
2-26 that is not related to sports or athletics, such as a
2-27 community-related event.
3-1 (Sections 334.004-334.020 reserved for expansion
3-2 SUBCHAPTER B. SPORTS VENUE PROJECTS
3-3 Sec. 334.021. RESOLUTION AUTHORIZING PROJECT. (a) A county
3-4 or municipality by resolution may provide for the planning,
3-5 acquisition, establishment, development, construction, or
3-6 renovation of a sports venue project if:
3-7 (1) the comptroller determines under Section 334.022
3-8 or 334.023 that the implementation of the resolution will not have
3-9 a negative fiscal impact on state revenue; and
3-10 (2) the resolution is approved by a majority of the
3-11 qualified voters of the municipality or county voting at an
3-12 election called and held for that purpose under Section 334.024.
3-13 (b) The resolution must designate the sports venue project
3-14 and each method of financing authorized by this chapter that the
3-15 municipality or county wants to use to finance the project. A
3-16 resolution may designate more than one method of financing.
3-17 Sec. 334.022. STATE FISCAL IMPACT ANALYSIS. (a) Before
3-18 calling an election on the resolution under Section 334.024, the
3-19 municipality or county shall send a copy of the resolution to the
3-20 comptroller.
3-21 (b) Before the 15th day after the date the comptroller
3-22 receives the copy of the resolution, the comptroller shall:
3-23 (1) perform an analysis to determine if approval and
3-24 implementation of the resolution will have a negative fiscal impact
3-25 on state revenue; and
3-26 (2) provide to the municipality or county written
3-27 notice of the results of the analysis.
4-1 (c) If the comptroller does not complete the analysis and
4-2 provide the notice before the 15th day after the date the
4-3 comptroller receives the copy of the resolution, the comptroller is
4-4 considered to have determined that approval and implementation of
4-5 the resolution will not have a negative fiscal impact on state
4-6 revenue.
4-7 Sec. 334.023. APPEAL OF COMPTROLLER DETERMINATION. (a) If
4-8 the comptroller determines under Section 334.022 that
4-9 implementation of the resolution will have a negative fiscal impact
4-10 on state revenue, the municipality or county may:
4-11 (1) contest the finding by filing an appeal with the
4-12 comptroller not later than the 10th day after the date the
4-13 municipality or county receives the written notice under Section
4-14 334.022; or
4-15 (2) ask the comptroller to provide information on how
4-16 to change the resolution so that implementation will not have a
4-17 negative fiscal impact on state revenue.
4-18 (b) Before the 11th day after the date the comptroller
4-19 receives the appeal or request for information under Subsection
4-20 (a), the comptroller shall, as appropriate:
4-21 (1) perform a new analysis to determine if
4-22 implementation of the resolution will have a negative fiscal impact
4-23 on state revenue and provide to the municipality or county written
4-24 notice of the results of the analysis; or
4-25 (2) provide to the municipality or county written
4-26 information on how to change the resolution so that implementation
4-27 will not have a negative fiscal impact on state revenue.
5-1 (c) If the comptroller determines that implementation will
5-2 have a negative impact on state revenue, the written analysis
5-3 required under Subsection (b)(1) must include information on how
5-4 to change the resolution so that implementation will not have a
5-5 negative fiscal impact on state revenue.
5-6 (d) If the comptroller does not comply with Subsection (b)
5-7 before the 11th day after the date the comptroller receives the
5-8 appeal or request for information, the comptroller is considered to
5-9 have determined that approval and implementation of the resolution
5-10 will not have a negative fiscal impact on state revenue.
5-11 Sec. 334.024. ELECTION. (a) If the comptroller determines
5-12 under Section 334.022 or 334.023 that the implementation of the
5-13 resolution will not have a negative impact on state revenue, the
5-14 governing body of the municipality or county may order an election
5-15 on the question of approving and implementing the resolution.
5-16 (b) The order calling the election must:
5-17 (1) allow the voters to vote separately on each sports
5-18 venue project;
5-19 (2) designate the sports venue project;
5-20 (3) designate each method of financing authorized by
5-21 this chapter that the municipality or county wants to use to
5-22 finance the project and the maximum rate of each method; and
5-23 (4) allow the voters to vote, in the same proposition
5-24 or in separate propositions, on each method of financing authorized
5-25 by this chapter that the municipality or county wants to use to
5-26 finance the project and the maximum rate of each method.
5-27 (c) The ballot at the election held under this section must
6-1 be printed to permit voting for or against the proposition:
6-2 "Authorizing ________ (insert name of municipality or county) to
6-3 _______ (insert description of sports venue project) and to impose
6-4 a ________ tax at the rate of ________ (insert the type of tax and
6-5 the maximum rate of the tax) for the purpose of financing the
6-6 sports venue project."
6-7 (d) If more than one method of financing is to be voted on
6-8 in one proposition, the ballot must be printed to permit voting for
6-9 or against the proposition: "Authorizing ________ (insert name of
6-10 municipality or county) to ________ (insert description of sports
6-11 venue project) and to impose a ________ tax at the rate of _______
6-12 (insert each type of tax and the maximum rate of each tax) for the
6-13 purpose of financing the sports venue project."
6-14 (e) The Election Code governs an election held under this
6-15 chapter, except that the uniform election date provisions of
6-16 Section 41.001(a), Election Code, do not apply to an election
6-17 ordered under this section.
6-18 (Sections 334.025-334.040 reserved for expansion
6-19 SUBCHAPTER C. POWERS AND DUTIES
6-20 Sec. 334.041. GENERAL POWERS. (a) A municipality or county
6-21 may perform any act necessary to the full exercise of the
6-22 municipality's or county's powers under this chapter.
6-23 (b) A municipality or county may acquire, sell, lease,
6-24 convey, or otherwise dispose of property or an interest in
6-25 property, including an approved sports venue project, under terms
6-26 and conditions determined by the municipality or county.
6-27 (c) A municipality or county may contract with a public or
7-1 private person, including a sports team, club, organization, or
7-2 other entity to:
7-3 (1) plan, acquire, establish, develop, construct, or
7-4 renovate an approved sports venue project; or
7-5 (2) perform any other act the municipality or county
7-6 is authorized to perform under this chapter.
7-7 (d) If a municipality or county contracts with a sports team
7-8 or club for the construction, renovation, or operation of an
7-9 approved sports venue project, the municipality or county is not a
7-10 party to a subsequent contract between the team or club and another
7-11 person relating to the project. The competitive bidding laws,
7-12 including Chapter 271, Local Government Code, do not apply to a
7-13 contract between a team or club and another person under this
7-14 subsection.
7-15 Sec. 334.042. SPORTS VENUE PROJECT FUND. (a) A
7-16 municipality or county in which an approved sports venue project is
7-17 located shall establish by resolution a fund known as the sports
7-18 venue project fund.
7-19 (b) The municipality or county shall deposit into the sports
7-20 venue project fund:
7-21 (1) the proceeds of any tax imposed by the
7-22 municipality or county under this chapter;
7-23 (2) all revenue from the sale of bonds or other
7-24 obligations by the municipality or county under this chapter; and
7-25 (3) any other money required by law to be deposited in
7-26 the fund.
7-27 (c) The municipality or county may deposit into the sports
8-1 venue project fund:
8-2 (1) money derived from innovative funding concepts
8-3 such as the sale or lease of luxury boxes or the sale of licenses
8-4 for personal seats; and
8-5 (2) any other revenue derived from the approved sports
8-6 venue project, including stadium rental payments and revenue from
8-7 concessions and parking.
8-8 (d) The municipality or county may use money in the sports
8-9 venue project fund to:
8-10 (1) pay the costs of planning, acquiring, estabishing,
8-11 developing, constructing, or renovating one or more approved
8-12 sports venue projects in the municipality or county;
8-13 (2) pay the principal of, interest on, and other costs
8-14 relating to bonds or other obligations issued by the municipality
8-15 or county or to refund bonds, notes, or other obligations; or
8-16 (3) pay the costs of operating or maintaining one or
8-17 more approved sports venue projects during the planning,
8-18 acquisition, establishment, development, construction, or
8-19 renovation or while bonds, notes, or other obligations for the
8-20 planning, acquisition, establishment, development, construction, or
8-21 renovation are outstanding.
8-22 (e) Money deposited into the sports venue project fund,
8-23 including money deposited under Subsection (b)(3), is the property
8-24 of the municipality or county depositing the money.
8-25 Sec. 334.043. BONDS AND OTHER OBLIGATIONS. (a) A
8-26 municipality or county in which an approved sports venue project is
8-27 located may issue bonds, including revenue bonds and refunding
9-1 bonds, or other obligations to pay the costs of the approved
9-2 sports venue project.
9-3 (b) The bonds or other obligations and the proceedings
9-4 authorizing the bonds or other obligations shall be submitted to
9-5 the attorney general for review and approval as required by Article
9-6 3, Chapter 53, Acts of the 70th Legislature, 2nd Called Session,
9-7 1987 (Article 717k-8, Vernon's Texas Civil Statutes).
9-8 (c) The bonds or other obligations must be payable from and
9-9 secured by the revenues in the sports venue project fund.
9-10 (d) The bonds or other obligations may mature serially or
9-11 otherwise not more than 20 years from their date of issuance.
9-12 (e) The bonds or other obligations are not a debt of and do
9-13 not create a claim for payment against the revenue or property of
9-14 the municipality or county other than an approved sports venue
9-15 project for which the bonds are issued.
9-16 Sec. 334.044. PUBLIC PURPOSE OF PROJECT. (a) The
9-17 legislature finds for all constitutional and statutory purposes
9-18 that an approved sports venue project is owned, used, and held for
9-19 public purposes by the municipality or county.
9-20 (b) Section 25.07(a), Tax Code, does not apply to a
9-21 leasehold or other possessory interest granted by the municipality
9-22 or county while the municipality or county owns the project.
9-23 (c) The project is exempt from taxation under Section 11.11,
9-24 Tax Code, while the municipality or county owns the project.
9-25 (Sections 334.045-334.080 reserved for expansion
9-26 SUBCHAPTER D. SALES AND USE TAX
9-27 Sec. 334.081. SALES AND USE TAX. (a) A municipality by
10-1 ordinance or a county by order may impose a sales and use tax under
10-2 this subchapter.
10-3 (b) A municipality by ordinance or a county by order may
10-4 repeal or decrease the rate of a tax imposed under this subchapter.
10-5 (c) A municipality or county may impose a tax under this
10-6 subchapter only if:
10-7 (1) an approved sports venue project is or is planned
10-8 to be located in the municipality or county; and
10-9 (2) the tax is approved at an election held under
10-10 Section 334.024.
10-11 Sec. 334.082. TAX CODE APPLICABLE. (a) Chapter 321, Tax
10-12 Code, governs the imposition, computation, administration,
10-13 collection, and remittance of a municipal tax authorized under this
10-14 subchapter except as inconsistent with this subchapter.
10-15 (b) Chapter 323, Tax Code, governs the imposition,
10-16 computation, administration, collection, and remittance of a county
10-17 tax authorized under this subchapter except as inconsistent with
10-18 this subchapter.
10-19 (c) Section 321.101(f), Tax Code, and Sections 323.101(b)
10-20 and (d), Tax Code, do not apply to the tax authorized by this
10-21 subchapter.
10-22 Sec. 334.083. TAX RATE. (a) The rate of a tax adopted
10-23 under this subchapter must be one-eighth, one-fourth,
10-24 three-eighths, or one-half of one percent.
10-25 (b) The ballot proposition at the election held to adopt the
10-26 tax must specify the rate of the tax to be adopted.
10-27 Sec. 334.084. RATE INCREASE. (a) A municipality or county
11-1 that has adopted a sales and use tax under this subchapter at a
11-2 rate of less than one-half of one percent may by ordinance or order
11-3 increase the rate of the tax if the increase is approved by a
11-4 majority of the registered voters of that municipality or county
11-5 voting at an election called and held for that purpose.
11-6 (b) The tax may be increased under Subsection (a) in one or
11-7 more increments of one-eighth of one percent to a maximum of
11-8 one-half of one percent.
11-9 (c) The ballot for an election to increase the tax shall be
11-10 printed to permit voting for or against the proposition: "The
11-11 adoption of a sales and use tax for the purpose of financing
11-12 _______ (insert description of sports venue project) at the rate of
11-13 _______ of one percent (insert one-fourth, three-eighths, or
11-14 one-half, as appropriate)."
11-15 Sec. 334.085. IMPOSITION OF TAX. (a) If the municipality
11-16 or county adopts the tax, a tax is imposed on the receipts from the
11-17 sale at retail of taxable items in the municipality or county at
11-18 the rate approved at the election.
11-19 (b) There is also imposed an excise tax on the use, storage,
11-20 or other consumption in the municipality or county of tangible
11-21 personal property purchased, leased, or rented from a retailer
11-22 during the period that the tax is effective in the municipality or
11-23 county. The rate of the excise tax is the same as the rate of the
11-24 sales tax portion of the tax and is applied to the sale price of
11-25 the tangible personal property.
11-26 Sec. 334.086. EFFECTIVE DATE OF TAX. The adoption of the
11-27 tax or the change of the tax rate takes effect on the first day of
12-1 the first calendar quarter occurring after the expiration of the
12-2 first complete quarter occurring after the date on which the
12-3 comptroller receives a notice of the results of the election
12-4 adopting or increasing the tax or of the ordinance or order
12-5 decreasing the tax.
12-6 Sec. 334.087. DEPOSIT OF TAX REVENUES. Revenue from the tax
12-7 imposed under this subchapter shall be deposited in the sports
12-8 venue project fund of the municipality or county imposing the tax.
12-9 Sec. 334.088. ABOLITION OF TAX. (a) A sales and use tax
12-10 imposed under this subchapter may not be collected after the last
12-11 day of the first calendar quarter occurring after notification to
12-12 the comptroller by the municipality or county that the municipality
12-13 or county has abolished the tax or that all bonds or other
12-14 obligations of the municipality or county that are payable in whole
12-15 or in part from money in the sports venue project fund, including
12-16 any refunding bonds or other obligations, have been paid in full or
12-17 the full amount of money, exclusive of guaranteed interest,
12-18 necessary to pay in full the bonds and other obligations has been
12-19 set aside in a trust account dedicated to the payment of the bonds
12-20 and other obligations.
12-21 (b) The municipality or county shall notify the comptroller
12-22 of the expiration of the tax not later than the 60th day before the
12-23 expiration date.
12-24 (Sections 334.089-334.100 reserved for expansion
12-25 SUBCHAPTER E. SHORT-TERM MOTOR VEHICLE RENTAL TAX
12-26 Sec. 334.101. DEFINITIONS. (a) In this subchapter:
12-27 (1) "Motor vehicle" means a self-propelled vehicle
13-1 designed principally to transport persons or property on a public
13-2 roadway and includes a passenger car, van, station wagon, sports
13-3 utility vehicle, and truck. The term does not include a:
13-4 (A) trailer, semitrailer, house trailer, truck
13-5 having a manufacturer's rating of more than one-half ton, or
13-6 road-building machine;
13-7 (B) device moved only by human power;
13-8 (C) device used exclusively on stationary rails
13-9 or tracks;
13-10 (D) farm machine; or
13-11 (E) mobile office.
13-12 (2) "Rental" means an agreement by the owner of a
13-13 motor vehicle to authorize for not longer than 30 days the
13-14 exclusive use of that vehicle to another for consideration.
13-15 (3) "Place of business of the owner" means an
13-16 established outlet, office, or location operated by the owner of a
13-17 motor vehicle or the owner's agent or employee for the purpose of
13-18 renting motor vehicles and includes any location at which three or
13-19 more rentals are made during a year.
13-20 (b) Except as provided by Subsection (a), words used in this
13-21 subchapter and defined by Chapter 152, Tax Code, have the meanings
13-22 assigned by Chapter 152, Tax Code.
13-23 Sec. 334.102. TAX AUTHORIZED. (a) A municipality by
13-24 ordinance or a county by order may impose a tax on the rental in
13-25 the municipality or county of a motor vehicle.
13-26 (b) A municipality by ordinance or a county by order may
13-27 repeal or decrease the rate of a tax imposed under Subsection (a).
14-1 (c) A municipality or county may impose a tax under this
14-2 subchapter only if:
14-3 (1) an approved sports venue facility is or is planned
14-4 to be located in the municipality or county; and
14-5 (2) the tax is approved at an election held under
14-6 Section 334.024.
14-7 Sec. 334.103. SHORT-TERM RENTAL TAX. (a) The tax
14-8 authorized by this subchapter is imposed at the tax rate on each
14-9 day or part of a day of a person's rental in the municipality or
14-10 county of a motor vehicle.
14-11 (b) The amount of the tax may be imposed at any uniform
14-12 monetary amount not to exceed $2. The tax may not be imposed at a
14-13 percentage rate.
14-14 (c) The ballot proposition at the election held to adopt the
14-15 tax must specify the maximum rate of the tax to be adopted.
14-16 Sec. 334.104. RATE INCREASE. (a) A municipality or county
14-17 that has adopted a tax under this subchapter at a rate of less than
14-18 $2 may by ordinance or order increase the rate of the tax to a
14-19 maximum of $2 if the increase is approved by a majority of the
14-20 registered voters of that municipality or county voting at an
14-21 election called and held for that purpose.
14-22 (b) The ballot for an election to increase the rate of the
14-23 tax shall be printed to permit voting for or against the
14-24 proposition: "The increase of the motor vehicle rental tax for the
14-25 purpose of financing _____ (insert description of sports venue
14-26 project) to a maximum rate of _______ a day (insert new maximum
14-27 rate not to exceed $2)."
15-1 Sec. 334.105. COMPUTATION OF TAX. (a) The owner of a motor
15-2 vehicle subject to the tax imposed under this subchapter shall
15-3 collect the tax for the benefit of the municipality or county.
15-4 (b) The owner shall add the short-term motor vehicle rental
15-5 tax imposed by the municipality or county under this subchapter, if
15-6 applicable, and the gross rental receipts tax imposed by Chapter
15-7 152, Tax Code, to the rental charge, and the sum of the taxes is a
15-8 part of the rental charge, a debt owed to the motor vehicle owner
15-9 by the person renting the vehicle, and recoverable at law in the
15-10 same manner as the rental charge.
15-11 Sec. 334.106. CONSUMMATION OF RENTAL. A rental of a motor
15-12 vehicle occurs in the municipality or county in which transfer of
15-13 possession of the motor vehicle occurs.
15-14 Sec. 334.107. SHORT-TERM TAX INAPPLICABLE WHEN NO STATE TAX.
15-15 The tax authorized by this subchapter does not apply to the rental
15-16 of a motor vehicle unless the tax imposed by Chapter 152, Tax Code,
15-17 also applies to the rental.
15-18 Sec. 334.108. EXEMPTIONS APPLICABLE. (a) The exemptions
15-19 provided by Subchapter E, Chapter 152, Tax Code, apply to the tax
15-20 authorized by this subchapter.
15-21 (b) The tax authorized by this chapter does not apply to a
15-22 vehicle owned by an automobile service or repair shop and that is
15-23 used by a customer of the shop during a period when the customer's
15-24 vehicle is in the possession of the shop owner for repair or
15-25 service if no separate charge is made for the use of the loaned
15-26 vehicle.
15-27 Sec. 334.109. NOTICE OF TAX. Each bill or other receipt for
16-1 a rental subject to the tax imposed under this subchapter must
16-2 contain a statement in a conspicuous location stating: "_______
16-3 (insert name of taxing municipality or county) requires that an
16-4 additional tax of $____ (insert rate of tax) a day be imposed on
16-5 each motor vehicle rental for the purpose of financing a sports
16-6 venue project."
16-7 Sec. 334.110. RECORDS. (a) The owner of a motor vehicle
16-8 used for rental purposes shall keep for four years records and
16-9 supporting documents containing information on the amount of the
16-10 tax imposed under this subchapter and paid to the municipality or
16-11 county on each motor vehicle used for rental purposes by the owner.
16-12 (b) Mileage records are not required.
16-13 Sec. 334.111. FAILURE TO KEEP RECORDS. (a) An owner of a
16-14 motor vehicle commits an offense if the owner fails to make and
16-15 retain complete records for the four-year period required by
16-16 Section 334.110.
16-17 (b) An offense under this section is a misdemeanor
16-18 punishable by a fine of not less than $25 or more than $500.
16-19 Sec. 334.112. EFFECTIVE DATE AND ENDING DATE OF TAX. (a) A
16-20 tax imposed under this subchapter or a change in the tax rate takes
16-21 effect on the date prescribed by the ordinance or order imposing
16-22 the tax or changing the rate.
16-23 (b) A municipality or county may impose a tax under this
16-24 subchapter only if the municipality or county issues bonds or other
16-25 obligations under Section 334.043. The municipality or county may
16-26 impose the tax only while those bonds or other obligations are
16-27 outstanding and unpaid.
17-1 Sec. 334.113. TAX COLLECTION; PENALTY. (a) The owner of a
17-2 motor vehicle required to collect the tax imposed under this
17-3 subchapter shall report and send the taxes collected to the
17-4 municipality or county as provided by the ordinance or order
17-5 imposing the tax.
17-6 (b) A municipality by ordinance or a county by order may
17-7 prescribe penalties, including interest charges, for failure to
17-8 keep records required by the municipality or county, to report when
17-9 required, or to pay the tax when due.
17-10 (c) The attorney acting for the municipality or county may
17-11 bring suit against a person who fails to collect a tax under this
17-12 subchapter and to pay it over to the municipality or county as
17-13 required.
17-14 Sec. 334.114. COLLECTION PROCEDURES ON PURCHASE OF MOTOR
17-15 VEHICLE RENTAL BUSINESS. (a) If the owner of a motor vehicle
17-16 rental business that makes rentals subject to the tax imposed by
17-17 this subchapter sells the business, the successor to the seller or
17-18 the seller's assignee shall withhold an amount of the purchase
17-19 price sufficient to pay the amount of tax due until the seller
17-20 provides a receipt by a person designated by the municipality or
17-21 county to provide the receipt showing that the amount has been paid
17-22 or a certificate showing that no tax is due.
17-23 (b) The purchaser of a motor vehicle rental business who
17-24 fails to withhold an amount of the purchase price as required by
17-25 this section is liable for the amount required to be withheld to
17-26 the extent of the value of the purchase price.
17-27 (c) The purchaser of a motor vehicle rental business may
18-1 request that the person designated by the municipality or county to
18-2 provide a receipt under Subsection (a) issue a certificate stating
18-3 that no tax is due or issue a statement of the amount required to
18-4 be paid before a certificate may be issued. The person designated
18-5 by the municipality or county shall issue the certificate or
18-6 statement not later than the 60th day after the date the person
18-7 receives the request.
18-8 (d) If the person designated by the municipality or county
18-9 to provide a receipt under Subsection (a) fails to issue the
18-10 certificate or statement within the period provided by Subsection
18-11 (c), the purchaser is released from the obligation to withhold the
18-12 purchase price or pay the amount due.
18-13 Sec. 334.115. REIMBURSEMENT FOR TAX COLLECTION EXPENSES.
18-14 (a) A municipality by ordinance or a county by order may permit a
18-15 person who is required to collect a tax under this subchapter to
18-16 retain a percentage of the amount collected and required to be
18-17 reported as reimbursement to the person for the costs of collecting
18-18 the tax.
18-19 (b) A municipality or county may provide that the person may
18-20 retain the amount authorized by Subsection (a) only if the person
18-21 pays the tax and files reports as required by the municipality or
18-22 county.
18-23 Sec. 334.116. DEPOSIT OF TAX REVENUE. Revenue from the tax
18-24 imposed under this subchapter shall be deposited in the sports
18-25 venue project fund of the municipality or county imposing the tax.
18-26 (Sections 334.117-334.150 reserved for expansion
19-1 SUBCHAPTER F. ADMISSIONS TAX
19-2 Sec. 334.151. TAX AUTHORIZED. (a) A municipality by
19-3 ordinance or a county by order may impose a tax on each person
19-4 admitted to an event at an approved sports venue project in the
19-5 municipality or county for which the municipality or county has
19-6 issued bonds to plan, acquire, establish, develop, construct, or
19-7 renovate the approved sports venue project.
19-8 (b) The municipality or county may not impose the tax under
19-9 this subchapter for admission to an event at a sports venue that is
19-10 not an approved sports venue project or for which the municipality
19-11 or county has not issued bonds to plan, acquire, establish,
19-12 develop, construct, or renovate the approved sports venue project.
19-13 (c) A municipality or county may impose a tax under this
19-14 subchapter only if:
19-15 (1) an approved sports venue facility is or will be
19-16 located in the municipality or county; and
19-17 (2) the tax is approved at an election held under
19-18 Section 334.024.
19-19 Sec. 334.152. TAX RATE. (a) The tax authorized by this
19-20 subchapter is imposed at the tax rate on each person admitted.
19-21 (b) The amount of the tax may be imposed at any uniform
19-22 monetary amount not to exceed $2. The tax may not be imposed at a
19-23 percentage rate.
19-24 (c) The ballot proposition at the election held to adopt the
19-25 tax must specify the maximum rate of the tax to be adopted.
19-26 (d) The municipality by ordinance or the county by order may
19-27 repeal or decrease the rate of the tax imposed under this
20-1 subchapter.
20-2 Sec. 334.153. RATE INCREASE. (a) A municipality or county
20-3 that has adopted a tax under this subchapter at the rate of less
20-4 than $2 a person may by ordinance or order increase the rate of
20-5 the tax to a maximum of $2 a person if the increase is approved by
20-6 a majority of the registered voters of that municipality or county
20-7 voting at an election called and held for that purpose.
20-8 (b) The ballot for an election to increase the rate of the
20-9 tax shall be printed to permit voting for or against the
20-10 proposition: "The increase of the admissions tax for the purpose
20-11 of financing _______ (insert description of sports venue project)
20-12 to a maximum rate of ________ a day (insert new maximum rate not to
20-13 exceed $2)."
20-14 Sec. 334.154. COLLECTION. (a) The municipality by
20-15 ordinance or the county by order may require the owner of an
20-16 approved sports venue project in the municipality or county to
20-17 collect the tax for the benefit of the municipality or county.
20-18 (b) An owner required to collect the tax under this section
20-19 shall add the tax to the admissions price, and the tax is a part of
20-20 the admissions price, a debt owed to the owner of the approved
20-21 sports venue project by the person admitted, and recoverable at law
20-22 in the same manner as the admissions charge.
20-23 (c) The tax imposed by this subchapter is not an occupation
20-24 tax imposed on the owner of the approved sports venue project.
20-25 Sec. 334.155. EFFECTIVE DATE AND ENDING DATE OF TAX. (a) A
20-26 tax imposed under this subchapter or a change in a tax rate takes
20-27 effect on the date prescribed by the ordinance or order imposing
21-1 the tax or changing the rate.
21-2 (b) A municipality or county may impose a tax under this
21-3 subchapter only if the municipality or county issues bonds or other
21-4 obligations under Section 334.043. The municipality or county may
21-5 impose the tax only while those bonds or other obligations are
21-6 outstanding and unpaid.
21-7 Sec. 334.156. COLLECTION OF TAX. (a) A person required to
21-8 collect a tax imposed under this subchapter shall report and send
21-9 the taxes to the municipality or county as provided by the
21-10 municipality or county imposing the tax.
21-11 (b) A municipality by ordinance or a county by order may
21-12 prescribe penalties, including interest charges, for failure to
21-13 keep records required by the municipality or county, to report when
21-14 required, or to pay the tax when due. The attorney acting for the
21-15 municipality or county may bring suit against a person who fails to
21-16 collect a tax under this subchapter and to pay it over to the
21-17 municipality or county as required.
21-18 (c) A municipality by ordinance or a county by order may
21-19 permit a person who is required to collect a tax under this
21-20 subchapter to retain a percentage of the amount collected and
21-21 required to be reported as reimbursement to the person for the
21-22 costs of collecting the tax. The municipality or county may
21-23 provide that the person may retain the amount only if the person
21-24 pays the tax and files reports as required by the municipality or
21-25 county.
21-26 Sec. 334.157. DEPOSIT OF TAX REVENUE. Revenue from the tax
21-27 imposed under this subchapter shall be deposited in the sports
22-1 venue project fund of the municipality or county imposing the tax.
22-2 (Sections 334.158-334.200 reserved for expansion
22-3 SUBCHAPTER G. PARKING TAX
22-4 Sec. 334.201. EVENT PARKING TAX. (a) A municipality by
22-5 ordinance or a county by order may impose a tax on each motor
22-6 vehicle parking in a parking facility of an approved sports venue
22-7 project.
22-8 (b) The municipality or county may impose the tax during a
22-9 period beginning not more than three hours before and ending not
22-10 more than three hours after the time an event in an approved sports
22-11 venue project is scheduled to begin. The municipality or county
22-12 may not impose the tax under this subchapter during any other time.
22-13 (c) A municipality or county may impose a tax under this
22-14 subchapter only if the tax is approved at an election held under
22-15 Section 334.024.
22-16 Sec. 334.202. TAX RATE. (a) The municipality by ordinance
22-17 or the county by order may provide that the tax is imposed at a
22-18 flat amount on each parked motor vehicle or is imposed as a
22-19 percentage of the amount charged for event parking by the owner of
22-20 the parking facility.
22-21 (b) Regardless of the method of imposition, the amount of
22-22 the tax may not exceed $1 for each motor vehicle.
22-23 (c) The ballot proposition at the election held to adopt the
22-24 tax must specify the maximum rate of the tax to be adopted.
22-25 (d) The municipality by ordinance or the county by order may
22-26 repeal or decrease the rate of the tax imposed under this section.
22-27 Sec. 334.203. RATE INCREASE. (a) A municipality or county
23-1 that has adopted a tax under this subchapter at a rate of less than
23-2 $1 a vehicle may by ordinance or order increase the rate of the tax
23-3 to a maximum of $1 a vehicle if the increase is approved by a
23-4 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 parking tax for the purpose of
23-9 financing _______ (insert description of sports venue project) to a
23-10 maximum rate of _______ (insert new maximum rate not to exceed
23-11 $1)."
23-12 Sec. 334.204. COLLECTION. (a) The municipality by
23-13 ordinance or the county by order may require the owner of a parking
23-14 facility to collect the tax for the benefit of the municipality or
23-15 county.
23-16 (b) An owner required to collect the tax under this section
23-17 shall add the tax to the parking charge, and the tax is a part of
23-18 the parking charge, a debt owed to the parking facility owner by
23-19 the person parking, and recoverable at law in the same manner as
23-20 the parking charge.
23-21 (c) The tax imposed by this subchapter is not an occupation
23-22 tax imposed on the owner of the parking facility.
23-23 Sec. 334.205. EFFECTIVE DATE AND ENDING DATE OF TAX. (a) A
23-24 tax imposed under this subchapter or a change in the 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. 334.206. 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. 334.207. DEPOSIT OF TAX REVENUE. Revenue from the tax
24-25 imposed under this subchapter shall be deposited in the sports
24-26 venue project fund of the municipality or county imposing the tax.
24-27 (Sections 334.208-334.250 reserved for expansion
25-1 SUBCHAPTER H. HOTEL OCCUPANCY TAXES
25-2 Sec. 334.251. DEFINITION. In this subchapter, "hotel" has
25-3 the meaning assigned by Section 156.001, Tax Code.
25-4 Sec. 334.252. IMPOSITION OF TAX. (a) A municipality by
25-5 ordinance or a county by order may impose a tax on a person who,
25-6 under a lease, concession, permit, right of access, license,
25-7 contract, or agreement, pays for the use or possession or for the
25-8 right to the use or possession of a room that is in a hotel, costs
25-9 $2 or more each day, and is ordinarily used for sleeping.
25-10 (b) A municipality or county may impose a tax under this
25-11 subchapter only if:
25-12 (1) an approved sports venue project is or is planned
25-13 to be located in the municipality or county; and
25-14 (2) the tax is approved at an election held under
25-15 Section 334.024.
25-16 Sec. 334.253. TAX CODE APPLICABLE. (a) Sections
25-17 351.002(c), 351.004, 351.0041, 351.005, and 351.006, Tax Code,
25-18 govern the imposition, computation, administration, collection, and
25-19 remittance of a municipal tax authorized under this subchapter
25-20 except as inconsistent with this subchapter.
25-21 (b) Sections 352.002(c), 352.004, 352.0041, 352.005, and
25-22 352.007, Tax Code, govern the imposition, computation,
25-23 administration, collection, and remittance of a county tax
25-24 authorized under this subchapter except as inconsistent with this
25-25 subchapter.
25-26 Sec. 334.254. TAX RATE. (a) The tax authorized by this
25-27 subchapter is imposed at the tax rate on each day or part of a day
26-1 for which a person pays for a room in a hotel.
26-2 (b) The amount of the tax may be imposed at any uniform
26-3 monetary amount not to exceed $5. The tax may not be imposed at a
26-4 percentage rate.
26-5 (c) The ballot proposition at the election held to adopt the
26-6 tax must specify the maximum rate of the tax to be adopted.
26-7 Sec. 334.255. RATE INCREASE. (a) A municipality or county
26-8 that has adopted a tax under this subchapter at a rate of less
26-9 than $5 a day may by ordinance or order increase the rate of the
26-10 tax to a maximum of $5 a day if the increase is approved by a
26-11 majority of the registered voters of that municipality or county
26-12 voting at an election called and held for that purpose.
26-13 (b) The ballot for an election to increase the rate of the
26-14 tax shall be printed to permit voting for or against the
26-15 proposition: "The increase of the hotel occupancy tax for the
26-16 purpose of financing __________ (insert description of sports
26-17 venue project) to a maximum rate of ___________ a day (insert new
26-18 maximum rate not to exceed $5)."
26-19 Sec. 334.256. NOTICE OF TAX. Each bill or other receipt for
26-20 a hotel charge subject to the tax imposed under this subchapter
26-21 must contain a statement in a conspicuous location stating:
26-22 "_____________ (insert name of taxing municipality or county)
26-23 requires that an additional tax of $_____ (insert rate of tax) a
26-24 day be imposed on each hotel charge for the purpose of financing a
26-25 sports venue."
26-26 Sec. 334.257. EFFECTIVE DATE AND ENDING DATE OF TAX. (a) A
26-27 tax imposed under this subchapter or a change in the tax rate takes
27-1 effect on the date prescribed by the ordinance or order imposing
27-2 the tax or changing the rate.
27-3 (b) A municipality or county may impose a tax under this
27-4 subchapter only if the municipality or county issues bonds or other
27-5 obligations under Section 334.043. The municipality or county may
27-6 impose the tax only while those bonds or other obligations are
27-7 outstanding and unpaid.
27-8 Sec. 334.258. DEPOSIT OF TAX REVENUE. Revenue from the tax
27-9 imposed under this subchapter shall be deposited in the sports
27-10 venue project fund of the municipality or county imposing the tax.
27-11 CHAPTER 335. SPORTS VENUE DISTRICTS
27-12 SUBCHAPTER A. GENERAL PROVISIONS
27-13 Sec. 335.001. DEFINITIONS. In this chapter:
27-14 (1) "Approved sports venue project" has the meaning
27-15 assigned by Section 334.001, except that the approval of the
27-16 project must occur under this chapter.
27-17 (2) "Board" means the board of directors of a sports
27-18 venue district.
27-19 (3) "District" means a sports venue district created
27-20 under this chapter.
27-21 (4) "Related infrastructure" has the meaning assigned
27-22 by Section 334.001.
27-23 (5) "Sports venue" has the meaning assigned by Section
27-24 334.001.
27-25 (6) "Sports venue project" has the meaning assigned by
27-26 Section 334.001, except that the actions described by that section
27-27 must occur under this chapter.
28-1 Sec. 335.002. APPLICATION TO SPORTS VENUE CONSTRUCTED UNDER
28-2 OTHER LAW. A district may use this chapter for a sports venue
28-3 project relating to a sports venue and related infrastructure
28-4 planned, acquired, established, developed, constructed, or
28-5 renovated under other law, including Section 4B, Development
28-6 Corporation Act of 1979 (Article 5190.6, Vernon's Texas Civil
28-7 Statutes), or Subchapter E, Chapter 451, Transportation Code, only
28-8 if:
28-9 (1) all bonds or other obligations issued under the
28-10 other law in relation to the project have been paid in full; or
28-11 (2) the full amount of money, exclusive of guaranteed
28-12 interest, necessary to pay in full the bonds or other obligations
28-13 has been set aside in a trust account dedicated to the payment of
28-14 the bonds and other obligations.
28-15 Sec. 335.003. OTHER USES OF SPORTS VENUE PERMITTED. This
28-16 chapter does not prohibit the use of a sports venue for an event
28-17 that is not related to sports or athletics, such as a
28-18 community-related event.
28-19 (Sections 335.004-335.020 reserved for expansion
28-20 SUBCHAPTER B. SPORTS VENUE DISTRICT
28-21 Sec. 335.021. CREATION. Two or more counties, two or more
28-22 municipalities, or a municipality and a county may create a sports
28-23 venue district under this chapter to plan, acquire, establish,
28-24 develop, construct, or renovate one or more sports venue projects
28-25 in the district subject to voter approval under Subchapter D.
28-26 Sec. 335.022. ORDER CREATING DISTRICT. Two or more
28-27 counties, two or more municipalities, or a municipality and a
29-1 county may create a district under this chapter by adopting
29-2 concurrent orders. A concurrent order must:
29-3 (1) contain identical provisions;
29-4 (2) define the boundaries of the district to be
29-5 coextensive with each creating political subdivision; and
29-6 (3) designate the number of directors and the manner
29-7 of appointment in accordance with Section 335.031.
29-8 Sec. 335.023. POLITICAL SUBDIVISION; OPEN MEETINGS. (a) A
29-9 district is a political subdivision of the creating political
29-10 subdivisions and of this state.
29-11 (b) A district is subject to Chapter 551, Government Code.
29-12 (Sections 335.024-335.030 reserved for expansion)
29-13 SUBCHAPTER C. BOARD OF DIRECTORS
29-14 Sec. 335.031. COMPOSITION AND APPOINTMENT OF BOARD. (a) A
29-15 district is governed by a board of at least four directors.
29-16 (b) The board is appointed by the governing body of the
29-17 political subdivisions that create the district. Each political
29-18 subdivision is entitled to an equal number of directors.
29-19 (c) Directors serve staggered two-year terms. A director
29-20 may be removed by the appointing political subdivision at any time
29-21 without cause. Successor directors are appointed in the same
29-22 manner as the original appointees.
29-23 (d) To qualify to serve as a director, a person must be a
29-24 resident of the appointing political subdivision. An employee,
29-25 officer, or member of the governing body of the appointing
29-26 political subdivision may serve as a director, but may not have a
29-27 personal interest in a contract executed by the district other than
30-1 as an employee, officer, or member of the governing body of the
30-2 political subdivision.
30-3 Sec. 335.032. COMPENSATION. A board member is not entitled
30-4 to compensation, but is entitled to reimbursement for actual and
30-5 necessary expenses.
30-6 Sec. 335.033. MEETINGS. The board shall conduct its
30-7 meetings in the district.
30-8 Sec. 335.034. OFFICERS. The board shall designate from the
30-9 members of the board a presiding officer, a secretary, and other
30-10 officers the board considers necessary.
30-11 (Sections 335.035-335.050 reserved for expansion
30-12 SUBCHAPTER D. SPORTS VENUE PROJECTS
30-13 Sec. 335.051. RESOLUTION AUTHORIZING PROJECT. (a) A
30-14 district by resolution may provide for the planning, acquisition,
30-15 establishment, development, construction, or renovation of a sports
30-16 venue project if:
30-17 (1) the comptroller determines under Section 335.052
30-18 or 335.053 that the implementation of the resolution will not have
30-19 a negative fiscal impact on state revenue; and
30-20 (2) the resolution is approved by a majority of the
30-21 qualified voters of each political subdivision that created the
30-22 district voting at separate elections called and held for that
30-23 purpose under Section 335.054.
30-24 (b) The resolution must designate the sports venue project
30-25 and each method of financing authorized by this chapter that the
30-26 district wants to use to finance the project. A resolution may
30-27 designate more than one method of financing.
31-1 Sec. 335.052. STATE FISCAL IMPACT ANALYSIS. (a) Before
31-2 calling an election on the resolution under Section 335.054, the
31-3 district shall send a copy of the resolution to the comptroller.
31-4 (b) Before the 15th day after the date the comptroller
31-5 receives the copy of the resolution, the comptroller shall:
31-6 (1) perform an analysis to determine if approval and
31-7 implementation of the resolution will have a negative fiscal
31-8 impact on state revenue; and
31-9 (2) provide to the district written notice of the
31-10 results of the analysis.
31-11 (c) If the comptroller does not complete the analysis and
31-12 provide the notice before the 15th day after the date the
31-13 comptroller receives the copy of the resolution, the comptroller is
31-14 considered to have determined that approval and implementation of
31-15 the resolution will not have a negative fiscal impact on state
31-16 revenue.
31-17 Sec. 335.053. APPEAL OF COMPTROLLER DETERMINATION. (a) If
31-18 the comptroller determines under Section 335.052 that
31-19 implementation of the resolution will have a negative fiscal impact
31-20 on state revenue, the district may:
31-21 (1) contest the finding by filing an appeal with the
31-22 comptroller not later than the 10th day after the date the district
31-23 receives the written notice under Section 335.052; or
31-24 (2) ask the comptroller to provide information on how
31-25 to change the resolution so that implementation will not have a
31-26 negative fiscal impact on state revenue.
31-27 (b) Before the 11th day after the date the comptroller
32-1 receives the appeal or request for information under Subsection
32-2 (a), the comptroller shall, as appropriate:
32-3 (1) perform a new analysis to determine if
32-4 implementation of the resolution will have a negative fiscal impact
32-5 on state revenue and provide to the district written notice of the
32-6 results of the analysis; or
32-7 (2) provide to the district written information on how
32-8 to change the resolution so that implementation will not have a
32-9 negative fiscal impact on state revenue.
32-10 (c) If the comptroller determines that implementation will
32-11 have a negative impact on state revenue, the written analysis
32-12 required under Subsection (b)(1) must include information on how to
32-13 change the resolution so that implementation will not have a
32-14 negative fiscal impact on state revenue.
32-15 (d) If the comptroller does not comply with Subsection (b)
32-16 before the 11th day after the date the comptroller receives the
32-17 appeal or request for information, the comptroller is considered to
32-18 have determined that approval and implementation of the resolution
32-19 will not have a negative fiscal impact on state revenue.
32-20 Sec. 335.054. ELECTION. (a) If the comptroller determines
32-21 under Section 335.052 or 335.053 that implementation of the
32-22 resolution will not have a negative impact on state revenue, the
32-23 board may order a separate election in each political subdivision
32-24 that created the district on the question of approving and
32-25 implementing the resolution. The elections shall be held on the
32-26 same day.
32-27 (b) The order calling the elections must:
33-1 (1) allow the voters to vote separately on each sports
33-2 venue project;
33-3 (2) designate the sports venue project;
33-4 (3) designate each method of financing authorized by
33-5 this chapter that the district wants to use to finance the project
33-6 and the maximum rate of each method; and
33-7 (4) allow the voters to vote, in the same proposition
33-8 or in separate propositions, on each method of financing authorized
33-9 by this chapter that the district wants to use to finance the
33-10 project and the maximum rate of each method.
33-11 (c) The ballot at the elections held under this section must
33-12 be printed to permit voting for or against the proposition:
33-13 "Authorizing _________ (insert name of district) to __________
33-14 (insert description of sports venue project) and to impose a
33-15 __________ tax (insert type of tax) at the rate of ________ (insert
33-16 maximum rate) for the purpose of financing the sports venue
33-17 project."
33-18 (d) If more than one method of financing is to be voted on
33-19 in one proposition, the ballot must be printed to permit voting for
33-20 or against the proposition: "Authorizing _________ (insert name of
33-21 district) to __________ (insert description of sports venue
33-22 project) and to impose a __________ tax at the rate of ________
33-23 (insert each type of tax and the maximum rate of each tax) for the
33-24 purpose of financing the sports venue project."
33-25 (e) If a majority of the votes cast at the election in each
33-26 creating political subdivision approves the proposition authorizing
33-27 the project, the district may implement the resolution. If a
34-1 majority of the votes cast in one or more of the creating political
34-2 subdivisions disapproves the proposition authorizing the project,
34-3 the district may not implement the resolution. If the project is
34-4 approved, but one or more financing methods contained in separate
34-5 propositions are disapproved, the district may use only the
34-6 approved financing methods.
34-7 (f) The Election Code governs an election held under this
34-8 chapter, except that the uniform election date provisions of
34-9 Section 41.001(a), Election Code, do not apply to an election
34-10 ordered under this section.
34-11 (Sections 335.055-335.070 reserved for expansion
34-12 SUBCHAPTER E. POWERS AND DUTIES
34-13 Sec. 335.071. GENERAL POWERS OF DISTRICT. (a) A district
34-14 may:
34-15 (1) perform any act necessary to the full exercise of
34-16 the district's powers;
34-17 (2) accept a grant or loan from a:
34-18 (A) department or agency of the United States;
34-19 (B) department, agency, or political subdivision
34-20 of this state; or
34-21 (C) public or private person;
34-22 (3) acquire, sell, lease, convey, or otherwise dispose
34-23 of property or an interest in property, including an approved
34-24 sports venue project, under terms and conditions determined by the
34-25 district;
34-26 (4) employ necessary personnel; and
34-27 (5) adopt rules to govern the operation of the
35-1 district and its employees and property.
35-2 (b) A district may contract with a public or private person,
35-3 including a sports team, club, organization, or other entity, to:
35-4 (1) plan, acquire, establish, develop, construct, or
35-5 renovate an approved sports venue project; or
35-6 (2) perform any other act the district is authorized
35-7 to perform under this chapter.
35-8 (c) If a municipality or county contracts with a sports team
35-9 or club for the construction, renovation, or operation of an
35-10 approved sports venue project, the municipality or county is not a
35-11 party to a subsequent contract between the team or club and another
35-12 person relating to the project. The competitive bidding laws,
35-13 including Chapter 271, Local Government Code, do not apply to a
35-14 contract between a team or club and another person under this
35-15 subsection.
35-16 (d) A district may impose any tax a county may impose under
35-17 Chapter 334, subject to approval of the voters of the district as
35-18 prescribed by this chapter and Chapter 334. The district shall
35-19 impose the tax in the same manner as a county.
35-20 (e) A district may not levy an ad valorem tax.
35-21 Sec. 335.072. SPORTS VENUE PROJECT FUND. (a) A district in
35-22 which an approved sports venue project is located shall establish
35-23 by resolution a fund known as the sports venue project fund.
35-24 (b) The district shall deposit into the sports venue project
35-25 fund:
35-26 (1) the proceeds from any tax imposed by the district;
35-27 (2) all revenue from the sale of bonds or other
36-1 obligations by the district; and
36-2 (3) any other money required by law to be deposited in
36-3 the fund.
36-4 (c) The district may deposit into the sports venue project
36-5 fund:
36-6 (1) money derived from innovative funding concepts
36-7 such as the sale or lease of luxury boxes or the sale of licenses
36-8 for personal seats; and
36-9 (2) any other revenue derived from the approved sports
36-10 venue project, including stadium rental payments and revenue from
36-11 concessions and parking.
36-12 (d) The district may use money in the sports venue project
36-13 fund only to:
36-14 (1) pay the costs of planning, acquiring,
36-15 establishing, developing, constructing, or renovating one or more
36-16 approved sports venue projects in the district;
36-17 (2) pay the principal of, interest on, and other costs
36-18 relating to bonds or other obligations issued by the district or
36-19 to refund bonds or other obligations; or
36-20 (3) pay the costs of operating or maintaining one or
36-21 more approved sports venue projects during the planning,
36-22 acquisition, establishment, development, construction, or
36-23 renovation or while bonds or other obligations for the planning,
36-24 acquisition, establishment, development, construction, or
36-25 renovation are outstanding.
36-26 (e) Money deposited into the sports venue project fund,
36-27 including money deposited under Subsection (b)(3), is the property
37-1 of the district depositing the money.
37-2 Sec. 335.073. BONDS AND OTHER OBLIGATIONS. (a) A district
37-3 in which an approved sports venue project is located may issue
37-4 bonds, including revenue bonds and refunding bonds, or other
37-5 obligations to pay the costs of the approved sports venue project.
37-6 (b) The bonds or other obligations and the proceedings
37-7 authorizing the bonds or other obligations shall be submitted to
37-8 the attorney general for review and approval as required by Article
37-9 3, Chapter 53, Acts of the 70th Legislature, 2nd Called Session,
37-10 1987 (Article 717k-8, Vernon's Texas Civil Statutes).
37-11 (c) The bonds or other obligations must be payable from and
37-12 secured by the revenues in the sports venue project fund.
37-13 (d) The bonds or other obligations may mature serially or
37-14 otherwise not more than 20 years from their date of issuance.
37-15 (e) The bonds or other obligations are not a debt of and do
37-16 not create a claim for payment against the revenue or property of
37-17 the district other than an approved sports venue project for
37-18 which the bonds are issued.
37-19 Sec. 335.074. PUBLIC PURPOSE OF PROJECT. (a) The
37-20 legislature finds for all constitutional and statutory purposes
37-21 that an approved sports venue project is owned, used, and held for
37-22 public purposes by the district.
37-23 (b) Section 25.07(a), Tax Code, does not apply to a
37-24 leasehold or other possessory interest granted by the district
37-25 while the district owns the project.
37-26 (c) The project is exempt from taxation under Section 11.11,
37-27 Tax Code, while the district owns the project.
38-1 SECTION 2. Section 4A, Development Corporation Act of 1979
38-2 (Article 5190.6, Vernon's Texas Civil Statutes), is amended by
38-3 adding Subsection (i-1) to read as follows:
38-4 (i-1) The corporation may not undertake a project to
38-5 acquire, construct, remodel, renovate, operate, or maintain a
38-6 sports venue or related infrastructure. In this subsection,
38-7 "sports venue" and "related infrastructure" have the meanings
38-8 assigned by Section 334.001, Local Government Code.
38-9 SECTION 3. Section 4B, Development Corporation Act of 1979
38-10 (Article 5190.6, Vernon's Texas Civil Statutes), is amended by
38-11 amending Subsection (a)(2) and by adding Subsections (a-3) and
38-12 (a-4) to read as follows:
38-13 (2) "Project" means land, buildings, equipment,
38-14 facilities, and improvements included in the definition of that
38-15 term under Section 2 of this Act, including recycling facilities,
38-16 and land, buildings, equipment, facilities, and improvements found
38-17 by the board of directors to:
38-18 (A) be required or suitable for use for
38-19 [professional and amateur (including children's) sports, athletic,]
38-20 entertainment, tourist, convention, amateur (including children's)
38-21 sports or athletics, but only if the project would not qualify as a
38-22 sports venue, and public park purposes and events, including
38-23 [stadiums, ball parks,] auditoriums, amphitheaters, concert halls,
38-24 learning centers, parks and park facilities, open space
38-25 improvements, municipal buildings, museums, exhibition facilities,
38-26 and related store, restaurant, concession, and automobile parking
38-27 facilities, related area transportation facilities, and related
39-1 roads, streets, and water and sewer facilities, and other related
39-2 improvements that enhance any of those items; or
39-3 (B) promote or develop new or expanded business
39-4 enterprises, including a project to provide public safety
39-5 facilities, streets and roads, drainage and related improvements,
39-6 demolition of existing structures, general municipally owned
39-7 improvements, as well as any improvements or facilities that are
39-8 related to any of those projects and any other project that the
39-9 board in its discretion determines promotes or develops new or
39-10 expanded business enterprises.
39-11 (a-3) The corporation may not undertake a project to
39-12 acquire, construct, remodel, renovate, operate, or maintain a
39-13 sports venue or related infrastructure.
39-14 (a-4) In this section, "sports venue" and "related
39-15 infrastructure" have the meanings assigned by Section 334.001,
39-16 Local Government Code.
39-17 SECTION 4. The changes in law made by this Act do not apply
39-18 to the use of tax revenue pledged to secure bonds issued before the
39-19 effective date of this Act. Tax revenue pledged to secure bonds
39-20 issued before the effective date of this Act is governed by the law
39-21 in effect on the date the bonds were issued, and that law is
39-22 continued in effect for that purpose.
39-23 SECTION 5. (a) This Act does not affect the authority of:
39-24 (1) a municipality that created an industrial
39-25 development corporation under Section 4A or 4B, Development
39-26 Corporation Act of 1979 (Article 5190.6, Vernon's Texas Civil
39-27 Statutes), before the effective date of this Act to continue to
40-1 collect any tax authorized for the benefit of the corporation
40-2 before that date; or
40-3 (2) an industrial development corporation described by
40-4 Subdivision (1) to continue a project or category of projects
40-5 authorized for the corporation before the effective date of this
40-6 Act that the corporation had begun before that date.
40-7 (b) A tax collected under Subsection (a)(1) of this section
40-8 or a project continued under Subsection (a)(2) of this section is
40-9 subject to the same restrictions applicable under Sections 4A and
40-10 4B, Development Corporation Act of 1979 (Article 5190.6, Vernon's
40-11 Texas Civil Statutes), as those sections existed immediately before
40-12 the effective date of this Act, and that law is continued in effect
40-13 for that purpose.
40-14 SECTION 6. The importance of this legislation and the
40-15 crowded condition of the calendars in both houses create an
40-16 emergency and an imperative public necessity that the
40-17 constitutional rule requiring bills to be read on three several
40-18 days in each house be suspended, and this rule is hereby suspended,
40-19 and that this Act take effect and be in force from and after its
40-20 passage, and it is so enacted.