75(R) HB 92 Senate committee report

 1-1     By:  Brimer, et al. (Senate Sponsor - Whitmire)         H.B. No. 92

 1-2           (In the Senate - Received from the House May 9, 1997;

 1-3     May 9, 1997, read first time and referred to Committee on State

 1-4     Affairs; May 18, 1997, reported adversely, with favorable Committee

 1-5     Substitute by the following vote:  Yeas 7, Nays 5; May 18, 1997,

 1-6     sent to printer.)

 1-7     COMMITTEE SUBSTITUTE FOR H.B. No. 92                  By:  Whitmire

 1-8                            A BILL TO BE ENTITLED

 1-9                                   AN ACT

1-10     relating to the financing of sports and community venues and

1-11     related infrastructure; authorizing the imposition of certain local

1-12     taxes and the issuance of local bonds; providing penalties.

1-13           BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:

1-14           SECTION 1.  Subtitle C, Title 10, Local Government Code, is

1-15     amended by adding Chapters 334 and 335 to read as follows:

1-16                  CHAPTER 334.  SPORTS AND COMMUNITY VENUES

1-17                      SUBCHAPTER A.  GENERAL PROVISIONS

1-18           Sec. 334.001.  DEFINITIONS.  In this chapter:

1-19                 (1)  "Approved venue project" means a sports and

1-20     community venue project that has been approved under this chapter

1-21     by the voters of a municipality or county.

1-22                 (2)  "Governing body" means the governing body of a

1-23     municipality or the commissioners court of a county.

1-24                 (3)  "Related infrastructure" includes any store,

1-25     restaurant, on-site hotel, concession, automobile parking facility,

1-26     area transportation  facility, road, street, water or sewer

1-27     facility, park, or other on-site or off-site improvement that

1-28     relates to and enhances the use, value, or appeal of a venue,

1-29     including areas adjacent to the venue, and any other expenditure

1-30     reasonably necessary to construct, improve, renovate, or expand a

1-31     venue, including an expenditure for environmental remediation.

1-32                 (4)  "Venue" means:

1-33                       (A)  an arena, coliseum, stadium,  or other type

1-34     of area or facility:

1-35                             (i)  that is used or is planned for use for

1-36     one or more professional or amateur sports events, community

1-37     events, or other  sports events, including rodeos, livestock shows,

1-38     agricultural expositions, promotional events, and other civic or

1-39     charitable events; and

1-40                             (ii)  for which a fee for admission to the

1-41     events is charged or is planned to be charged;

1-42                       (B)  a convention center facility or related

1-43     improvement such as a convention center, civic center, civic center

1-44     building, civic center hotel, auditorium, theater, opera house,

1-45     music hall, exhibition hall, rehearsal hall, park, zoological park,

1-46     museum, aquarium, or plaza located in the vicinity of a convention

1-47     center or facility owned by a municipality or a county;

1-48                       (C)  a tourist development area along an inland

1-49     waterway; and

1-50                       (D)  any other economic development project

1-51     authorized by other law.

1-52                 (5)  "Sports and community venue project" or "venue

1-53     project"  means a venue and related infrastructure that is planned,

1-54     acquired, established, developed, constructed, or renovated under

1-55     this chapter.

1-56           Sec. 334.002.  APPLICATION TO CERTAIN MUNICIPALITIES AND

1-57     COUNTIES.  This chapter applies to a municipality with a population

1-58     of more than 1.2 million and to a county with a population of more

1-59     than 2.2 million only if the municipality and county create a

1-60     sports and community venue district under Chapter 335 and only to

1-61     the extent the use of this chapter by the district is necessary or

1-62     convenient for the creation or operation of the district to the

1-63     fullest extent authorized by Chapter 335.

1-64           Sec. 334.003.  APPLICATION TO VENUE CONSTRUCTED UNDER OTHER

 2-1     LAW.  A county or municipality may use this chapter for a venue

 2-2     project relating to a venue and related infrastructure planned,

 2-3     acquired, established, developed, constructed, or renovated under

 2-4     other law, including Section 4B, Development Corporation Act of

 2-5     1979 (Article 5190.6, Vernon's Texas Civil Statutes), or Subchapter

 2-6     E, Chapter 451, Transportation Code.

 2-7           Sec. 334.004.  OTHER USES OF VENUE PERMITTED.  This chapter

 2-8     does not prohibit the use of a venue for an event that is not

 2-9     related to a purpose described by Section 334.001, such as a

2-10     community-related event.

2-11           Sec. 334.005.  SPECIFIC PERFORMANCE.  (a)  The legislature

2-12     expressly finds and determines that:

2-13                 (1)  the presence of a professional sports team in an

2-14     approved venue project built or renovated under this chapter

2-15     provides a unique value to the municipality or county that built or

2-16     renovated the project that cannot be adequately valued in money;

2-17     and

2-18                 (2)  the municipality or county that built or renovated

2-19     the approved venue project would suffer irreparable injury if a

2-20     professional sports team breaches its obligation to play its home

2-21     games in the approved venue project as required by an agreement

2-22     between the sports team and the municipality or county.

2-23           (b)  An agreement described by Subsection (a)(2) shall be

2-24     enforceable by specific performance in the courts of this state.  A

2-25     waiver of this remedy is contrary to public policy and is

2-26     unenforceable and void.

2-27              (Sections 334.006-334.020 reserved for expansion

2-28                        SUBCHAPTER B.  VENUE PROJECTS

2-29           Sec. 334.021.  RESOLUTION AUTHORIZING PROJECT.  (a)  A county

2-30     or municipality by resolution may provide for the  planning,

2-31     acquisition, establishment, development, construction, or

2-32     renovation of a venue project if:

2-33                 (1)  the comptroller determines under Section 334.022

2-34     or 334.023 that the implementation of the resolution will not have

2-35     a significant negative fiscal impact on state revenue;

2-36                 (2)  to the extent required by Section 334.0235 or

2-37     334.0236, a rapid transit authority determines that the

2-38     implementation of the resolution will not have a significant

2-39     negative impact on the authority's ability to provide services and

2-40     will not impair any existing contracts; and

2-41                 (3)  the resolution is approved by a majority of the

2-42     qualified voters of the municipality or county voting at an

2-43     election called and held for that purpose under Section 334.024.

2-44           (b)  The resolution must designate each venue project and

2-45     each method of financing authorized by this chapter that the

2-46     municipality or county wants to use to finance a project.  A

2-47     resolution may designate more than one method of financing.

2-48           Sec. 334.022.  STATE FISCAL IMPACT ANALYSIS.  (a)  Before

2-49     calling an election on the resolution under Section 334.024, the

2-50     municipality or county shall send a copy of the resolution to the

2-51     comptroller.

2-52           (b)  Before the 15th day after the date the comptroller

2-53     receives the copy of the resolution, the comptroller shall:

2-54                 (1)  perform an analysis to determine if approval and

2-55     implementation of the resolution will have a significant negative

2-56     fiscal impact on state revenue; and

2-57                 (2)  provide to the municipality or county written

2-58     notice of the results of the analysis.

2-59           (c)  If the comptroller determines that implementation will

2-60     have a significant negative fiscal impact on state revenue, the

2-61     written analysis required under Subsection (b)(2) must include

2-62     information on how to change the resolution so that implementation

2-63     will not have a significant negative fiscal impact on state

2-64     revenue.

2-65           (d)  If the comptroller does not complete the analysis and

2-66     provide the notice before the 30th day after the date the

2-67     comptroller receives the copy of the resolution, the comptroller is

2-68     considered to have determined that approval and implementation of

2-69     the resolution will not have a significant negative fiscal impact

 3-1     on state revenue.

 3-2           Sec. 334.023.  APPEAL OF COMPTROLLER DETERMINATION.  (a)  If

 3-3     the comptroller determines under Section 334.022 that

 3-4     implementation of the resolution will have a significant negative

 3-5     fiscal impact on state revenue, the municipality or county may

 3-6     contest the finding by filing an appeal with the comptroller not

 3-7     later than the 10th day after the date the municipality or county

 3-8     receives the written notice under Section 334.022.

 3-9           (b)  Before the 11th day after the date the comptroller

3-10     receives the appeal under Subsection (a),  the comptroller shall

3-11     perform a new analysis to determine if implementation of the

3-12     resolution will have a significant negative fiscal impact on state

3-13     revenue and  provide to the municipality or county written notice

3-14     of the results of the analysis.

3-15           (c)  If the comptroller again determines that implementation

3-16     will have a significant negative fiscal impact on state revenue,

3-17     the written analysis required under Subsection (b) must include

3-18     additional information on how to change the resolution so that

3-19     implementation will not have a significant negative fiscal impact

3-20     on state revenue.

3-21           (d)  If the comptroller does not comply with Subsection (b)

3-22     before the 30th day after the date the comptroller receives the

3-23     appeal or request for information, the comptroller is considered to

3-24     have determined that approval and implementation of the resolution

3-25     will not have a significant negative fiscal impact on state

3-26     revenue.

3-27           Sec. 334.0235.  TRANSPORTATION AUTHORITY IMPACT ANALYSIS.

3-28     (a)  If the resolution contains a proposed sales and use tax under

3-29     Subchapter D, and imposition of the tax would result in the

3-30     reduction of the tax rate of a rapid transit authority created

3-31     under Chapter 451, Transportation Code, or a regional

3-32     transportation authority created under Chapter 452, Transportation

3-33     Code, the municipality or county shall send a copy of the

3-34     resolution to the authority before calling an election on the

3-35     resolution under Section 334.024.

3-36           (b)  Before the 30th day after the date the rapid transit

3-37     authority receives the copy of the resolution, the authority shall:

3-38                 (1)  perform an analysis to determine if implementation

3-39     of the proposed sales and use tax and the resulting reduction in

3-40     the authority's tax rate will:

3-41                       (A)  have a significant negative impact on the

3-42     authority's ability to provide services; or

3-43                       (B)  impair any existing contracts; and

3-44                 (2)  provide to the municipality or county written

3-45     notice of the results of the analysis.

3-46           (c)  If the rapid transit authority determines that

3-47     implementation of the resolution will have a significant negative

3-48     impact on the authority's ability to provide services or will

3-49     impair any existing contracts, the written analysis required under

3-50     Subsection (b)(2) must include information on how to change the

3-51     resolution so that implementation will not have a significant

3-52     negative impact on the authority's ability to provide service or

3-53     will not impair any existing contracts.

3-54           (d)  If the rapid transit authority does not complete the

3-55     analysis and provide the notice before the 30th day after the date

3-56     the authority receives the copy of the resolution, the authority is

3-57     considered to have determined that implementation of the resolution

3-58     will not have a significant negative impact on the authority's

3-59     ability to provide services and will not impair any existing

3-60     contracts.

3-61           Sec. 334.0236.  APPEAL OF AUTHORITY DETERMINATION.  (a)  If a

3-62     rapid  transit authority determines under Section 334.0235 that

3-63     implementation of the resolution will have a significant negative

3-64     impact on the authority's ability to provide services or will

3-65     impair an existing contract, the municipality or county may contest

3-66     the finding by filing an appeal with the authority not later than

3-67     the 10th day after the date the municipality or county receives the

3-68     written notice under Section 334.0235.

3-69           (b)  Before the 11th day after the date the rapid transit

 4-1     authority receives the appeal under Subsection (a), the authority

 4-2     shall  perform a new analysis to determine if implementation of the

 4-3     resolution will have a significant negative impact on the

 4-4     authority's ability to provide services or will impair an existing

 4-5     contract and provide to the municipality or county written notice

 4-6     of the results of the analysis.

 4-7           (c)  If the authority again determines that implementation

 4-8     will have a significant negative impact on the authority's ability

 4-9     to provide services or will impair an existing contract, the

4-10     written analysis required under Subsection (b) must include

4-11     additional information on how to change the resolution so that

4-12     implementation will not have a significant negative impact on the

4-13     authority's ability to provide services and will not impair an

4-14     existing contract.

4-15           (d)  If the rapid transit authority does not comply with

4-16     Subsection (b) before the 11th day after the date the authority

4-17     receives the appeal or request for information, the authority is

4-18     considered to have determined that approval and implementation of

4-19     the resolution will not have a significant negative impact on the

4-20     authority's ability to provide services and will not impair any

4-21     existing contracts.

4-22           Sec. 334.024.  ELECTION.  (a)  If the comptroller determines

4-23     under Section 334.022 or 334.023 that the implementation of the

4-24     resolution will not have a significant negative fiscal impact on

4-25     state revenue, and, if applicable, the rapid transit authority

4-26     determines under Section 334.0235 or 334.0236 that the

4-27     implementation will not have a significant negative impact on the

4-28     authority's ability to provide service and will not impair any

4-29     existing contracts, the governing body of the municipality or

4-30     county may order an election on the question of approving and

4-31     implementing the resolution.

4-32           (b)  The order calling the election must:

4-33                 (1)  allow the voters to vote separately on each venue

4-34     project;

4-35                 (2)  designate the venue project;

4-36                 (3)  designate each method of financing authorized by

4-37     this chapter that the municipality or county wants to use to

4-38     finance the project and the maximum rate of each method; and

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

4-40     or in separate propositions, on each method of financing authorized

4-41     by this chapter that the municipality or county wants to use to

4-42     finance the project and the maximum rate of each method.

4-43           (c)  The ballot at the election held under this section must

4-44     be printed to permit voting for or against the proposition:

4-45     "Authorizing ________ (insert name of municipality or county) to

4-46     _______ (insert description of venue project) and to impose a

4-47     ________ tax at the rate of ________ (insert the type of tax and

4-48     the maximum rate of the tax) for the purpose of financing the venue

4-49     project."

4-50           (d)  If more than one method of financing is to be voted on

4-51     in one proposition, the ballot must be printed to permit voting for

4-52     or against the proposition:  "Authorizing ________ (insert name of

4-53     municipality or county) to ________ (insert description of venue

4-54     project) and to impose a ________ tax at the rate of _______

4-55     (insert each type of tax and the maximum rate of each tax) for the

4-56     purpose of financing the venue project."

4-57           (e)  The Election Code governs an election held under this

4-58     chapter.

4-59              (Sections 334.025-334.040 reserved for expansion

4-60                      SUBCHAPTER C.  POWERS AND DUTIES

4-61           Sec. 334.041.  GENERAL POWERS.  (a)  A municipality or county

4-62     may  perform any act necessary to the full exercise of the

4-63     municipality's or county's powers under this chapter.

4-64           (b)  A municipality or county may acquire, sell, lease,

4-65     convey, or otherwise dispose of property or an interest in

4-66     property, including an approved venue project, under terms and

4-67     conditions determined by the municipality or county. In a

4-68     transaction with another public entity that is made as provided by

4-69     this subsection, the public purpose found by the legislature under

 5-1     Section 334.044 is adequate consideration for the municipality or

 5-2     county and the other public entity.

 5-3           (c)  A municipality or county may contract with a public or

 5-4     private person, including a sports team, club, organization, or

 5-5     other entity to:

 5-6                 (1)  plan, acquire, establish, develop, construct, or

 5-7     renovate an approved venue project; or

 5-8                 (2)  perform any other act the municipality or county

 5-9     is authorized to perform under this chapter, other than conducting

5-10     an election under this chapter.

5-11           (d)  A municipality or county may contract with or enter into

5-12     an interlocal agreement with a school district, junior or community

5-13     college district, or an institution of higher education as defined

5-14     by Section 61.003, Education Code, for a purpose described by

5-15     Subsection (c).  The contract or interlocal agreement may provide

5-16     for joint ownership and operation or joint use.

5-17           (e)  The competitive bidding laws, including Chapter 271, do

5-18     not apply to the planning, acquisition, establishment, development,

5-19     construction, or renovation of an approved venue project under this

5-20     chapter.

5-21           (f)  A municipality or county may not use revenue derived

5-22     from ad valorem taxes to plan, acquire, establish, develop,

5-23     construct, operate, maintain, or renovate an approved venue

5-24     project.

5-25           Sec. 334.0415.  USE OF FINANCING FOR CERTAIN PROJECTS.

5-26     Notwithstanding any other provision of this chapter, a municipality

5-27     or county, or an entity created by or acting on behalf of or in

5-28     conjunction with a municipality or county, that contracts with a

5-29     professional sports team or the team's owner or representative for

5-30     the team to relocate and play at an arena, coliseum, or stadium in

5-31     the municipality or county may not use any method of financing

5-32     authorized by this chapter to finance the acquisition or

5-33     construction of the arena, coliseum, or stadium if the team is

5-34     playing under an existing contract and is located in another arena,

5-35     coliseum, or stadium owned by a different municipality or county in

5-36     this state unless the governing body of that different municipality

5-37     or county consents to the contract.

5-38           Sec. 334.042.  VENUE PROJECT FUND.  (a)  A municipality or

5-39     county in which an approved venue project is located shall

5-40     establish by resolution a fund known as the venue project fund.

5-41     The municipality or county shall establish separate accounts within

5-42     the fund for the various revenue sources.

5-43           (b)  The municipality or county shall deposit into the venue

5-44     project fund:

5-45                 (1)  the proceeds of any tax imposed by the

5-46     municipality or county under this chapter;

5-47                 (2)  all revenue from the sale of bonds or other

5-48     obligations by the municipality or county under this chapter; and

5-49                 (3)  any other money required by law to be deposited in

5-50     the fund.

5-51           (c)  The municipality or county may deposit into the venue

5-52     project fund:

5-53                 (1)  money received by the municipality or county from

5-54     innovative funding concepts such as the sale or lease of luxury

5-55     boxes or the sale of licenses for personal seats; and

5-56                 (2)  any other revenue received by the municipality or

5-57     county from the approved venue project, including stadium rental

5-58     payments and revenue from concessions and parking.

5-59           (d)  The municipality or county may use money in the venue

5-60     project fund to:

5-61                 (1)  reimburse or pay the costs of planning, acquiring,

5-62     establishing, developing, constructing, or renovating one or more

5-63     approved venue projects in the municipality or county;

5-64                 (2)  pay the principal of, interest on, and other costs

5-65     relating to bonds or other obligations issued by the municipality

5-66     or county or to refund bonds, notes, or other obligations; or

5-67                 (3)  pay the costs of operating or maintaining one or

5-68     more approved venue projects.

5-69           (e)  Money deposited into the venue project fund, including

 6-1     money deposited under Subsection (c), is the property of the

 6-2     municipality or county depositing the money.

 6-3           Sec. 334.0425.  BOOKS, RECORDS, AND PAPERS.  The books,

 6-4     records, and papers of the municipality or county  relating to an

 6-5     approved venue project and the revenue used to finance the project

 6-6     are public information and subject to disclosure under Chapter 552,

 6-7     Government Code.

 6-8           Sec. 334.043.  BONDS AND OTHER OBLIGATIONS.  (a)  A

 6-9     municipality or county in which an approved venue project is

6-10     located may issue bonds, including revenue bonds and refunding

6-11     bonds,  or other obligations to pay the costs of the approved venue

6-12     project.

6-13           (b)  The bonds or other obligations and the proceedings

6-14     authorizing the bonds or other obligations shall be submitted to

6-15     the attorney general for review and approval as required by Article

6-16     3, Chapter 53, Acts of the 70th Legislature, 2nd Called Session,

6-17     1987 (Article 717k-8, Vernon's Texas Civil Statutes).

6-18           (c)  The bonds or other obligations must be payable from and

6-19     secured by the revenues in the venue project fund.

6-20           (d)  The bonds or other obligations may mature serially or

6-21     otherwise not more than 30 years from their date of issuance.

6-22           (e)  The bonds or other obligations are not a debt of and do

6-23     not create a claim for payment against the revenue or property of

6-24     the municipality or county other than the revenue sources pledged

6-25     and an approved venue  project for which the bonds are issued.

6-26           Sec. 334.044.  PUBLIC PURPOSE OF VENUE PROJECT.  (a)  The

6-27     legislature finds for all constitutional and statutory purposes

6-28     that an approved venue project is owned, used, and held for public

6-29     purposes by the municipality or county.

6-30           (b)  Section 25.07(a), Tax Code, does not apply to a

6-31     leasehold or other possessory interest granted by the municipality

6-32     or county while the municipality or county owns the venue project.

6-33           (c)  The venue project is exempt from taxation under Section

6-34     11.11, Tax Code, while the municipality or county owns the venue

6-35     project.

6-36           (d)  If approval and implementation of a resolution under

6-37     this chapter results in the removal from a school district's

6-38     property tax rolls of real property otherwise subject to ad valorem

6-39     taxation, the operator of the approved venue project located on

6-40     that property shall pay to the school district on January 1 of each

6-41     year in which the project is in operation and in which the real

6-42     property is exempt from ad valorem taxation an amount equal to the

6-43     ad valorem taxes that would otherwise have been levied for the

6-44     preceding tax year on that real property by the school district,

6-45     without including the value of any improvements.  This subsection

6-46     does not apply if the operator of the project is a political

6-47     subdivision of this state.

6-48              (Sections 334.045-334.080 reserved for expansion

6-49                      SUBCHAPTER D.  SALES AND USE TAX

6-50           Sec. 334.081.  SALES AND USE TAX.  (a)  A municipality by

6-51     ordinance or a county by order may impose a sales and use tax under

6-52     this subchapter.

6-53           (b)  A municipality by ordinance or a county by order may

6-54     repeal or decrease the rate of a tax imposed under this subchapter.

6-55           (c)  A municipality or county may impose a tax under this

6-56     subchapter only if:

6-57                 (1)  an approved venue project is or is planned to be

6-58     located in the municipality or county; and

6-59                 (2)  the tax is approved at an election held under

6-60     Section 334.024.

6-61           Sec. 334.082.  TAX CODE APPLICABLE.  (a)  Chapter 321, Tax

6-62     Code, governs the imposition, computation, administration,

6-63     collection, and remittance of a municipal tax authorized under this

6-64     subchapter except as inconsistent with this chapter.

6-65           (b)  Chapter 323, Tax Code, governs the imposition,

6-66     computation, administration, collection, and remittance of a county

6-67     tax authorized under this subchapter except as inconsistent with

6-68     this chapter.

6-69           (c)  Sections 321.101(b), 321.506, and 323.101(b), Tax Code,

 7-1     do not apply to the tax authorized by this subchapter.

 7-2           (d)  The tax imposed by this subchapter is in addition to a

 7-3     tax imposed under other law, including Chapters 321 and 323, Tax

 7-4     Code.

 7-5           Sec. 334.083.  TAX RATE.  (a)  The rate of a tax adopted

 7-6     under this subchapter must be one-eighth, one-fourth,

 7-7     three-eighths, or one-half of one percent.

 7-8           (b)  The ballot proposition at the election held to adopt the

 7-9     tax must specify the rate of the tax to be adopted.

7-10           Sec. 334.084.  RATE INCREASE.  (a)  A municipality or county

7-11     that has adopted a sales and use tax under this subchapter at a

7-12     rate of less than one-half of one percent may by ordinance or order

7-13     increase the rate of the tax if the increase is approved by a

7-14     majority of the registered voters of that municipality or county

7-15     voting at an election called and held for that purpose.

7-16           (b)  The tax may be increased under Subsection (a)  in one or

7-17     more increments of one-eighth of one percent to a maximum of

7-18     one-half of one percent.

7-19           (c)  The ballot for an election to increase the tax shall be

7-20     printed to permit voting for or against the proposition:  "The

7-21     adoption of a sales and use tax for the purpose of financing

7-22     _______ (insert description of venue project) at the rate of

7-23     _______ of one percent (insert one-fourth, three-eighths, or

7-24     one-half, as appropriate)."

7-25           Sec. 334.085.  IMPOSITION IN MUNICIPALITY OR COUNTY WITH

7-26     OTHER TAXING AUTHORITY.  (a)  In this section, "taxing authority"

7-27     means:

7-28                 (1)  a rapid transit authority created under Chapter

7-29     451, Transportation Code;

7-30                 (2)  a regional transportation authority created under

7-31     Chapter 452, Transportation Code;

7-32                 (3)  a crime control district created under the Crime

7-33     Control and Prevention District Act (Article 2370c-4, Vernon's

7-34     Texas Civil Statutes); or

7-35                 (4)  an industrial development corporation created

7-36     under Section 4A or 4B, Development Corporation Act of 1979

7-37     (Article 5190.6, Vernon's Texas Civil Statutes).

7-38           (b)  If a municipality or county is included within the

7-39     boundaries of another taxing authority and the adoption or increase

7-40     of the tax under this subchapter would result in a combined tax

7-41     rate of more than two percent in any location in the municipality

7-42     or county, the election to approve or increase the tax under this

7-43     chapter is to be treated for all purposes as an election to reduce

7-44     the tax rate of the other taxing authority to the highest rate that

7-45     will not result in a combined tax rate of more than two percent in

7-46     any location in the municipality or county.  If the municipality or

7-47     county is located within the boundaries of only one taxing

7-48     authority, and the adoption or increase of the tax under this

7-49     subchapter will result in a decrease of the tax rate of the taxing

7-50     authority, the ballot at an election to impose or increase the tax

7-51     must clearly state that the adoption or increase of the tax will

7-52     result in a reduction of the tax rate of the taxing authority.  If

7-53     the municipality or county is included within the boundaries of

7-54     more than one taxing authority, the election to impose or increase

7-55     the tax under this subchapter must allow the voters to choose which

7-56     taxing authority's tax will be reduced.

7-57           (c)  The rate of the tax imposed by the other taxing

7-58     authority is increased without further action of the board of the

7-59     authority or the voters of the authority, municipality,  or county

7-60     on the date on which the tax imposed under this subchapter is

7-61     decreased or expires, but only to the extent that any tax imposed

7-62     by the authority was reduced under this section when the tax

7-63     imposed by the municipality or county was adopted or increased.

7-64           (d)  This section does not permit a taxing authority to

7-65     impose taxes at differential tax rates within the territory of the

7-66     authority.

7-67           Sec. 334.086.  IMPOSITION OF TAX.  (a)  If the municipality

7-68     or county adopts the tax, a tax is imposed on the receipts from the

7-69     sale at retail of taxable items in the municipality or county at

 8-1     the rate approved at the election.

 8-2           (b)  There is also imposed an excise tax on the use, storage,

 8-3     or other consumption in the municipality or county of tangible

 8-4     personal property purchased, leased, or rented from a retailer

 8-5     during the period that the tax is effective in the municipality or

 8-6     county.  The rate of the excise tax is the same as the rate of the

 8-7     sales tax portion of the tax and is applied to the sale price of

 8-8     the tangible personal property.

 8-9           Sec. 334.087.  EFFECTIVE DATE OF TAX.  The adoption of the

8-10     tax or the change of the tax rate takes effect on the first day of

8-11     the first calendar quarter occurring after the expiration of the

8-12     first complete quarter occurring after the date on which the

8-13     comptroller receives a notice of the results of the election

8-14     adopting or increasing the tax or of the ordinance or order

8-15     decreasing the tax.

8-16           Sec. 334.088.  DEPOSIT OF TAX REVENUES.  Revenue from the tax

8-17     imposed under this subchapter shall be deposited in the venue

8-18     project fund of the municipality or county imposing the tax.

8-19           Sec. 334.089.  ABOLITION OF TAX.  (a)  A sales and use tax

8-20     imposed under this subchapter may not be collected after the last

8-21     day of the first calendar quarter occurring after notification to

8-22     the comptroller by the municipality or county that the municipality

8-23     or county has abolished the tax or that all bonds or other

8-24     obligations of the municipality or county that are payable in whole

8-25     or in part from money in the venue project fund, including any

8-26     refunding bonds or other obligations, have been paid in full or the

8-27     full amount of money, exclusive of guaranteed interest, necessary

8-28     to pay in full the bonds and other obligations has been set aside

8-29     in a trust account dedicated to the payment of the bonds and other

8-30     obligations.

8-31           (b)  The municipality or county shall notify the comptroller

8-32     of the expiration of the tax not later than the 60th day before the

8-33     expiration date.

8-34              (Sections 334.090-334.100 reserved for expansion

8-35             SUBCHAPTER E.  SHORT-TERM MOTOR VEHICLE RENTAL TAX

8-36           Sec. 334.101.  DEFINITIONS.  (a)  In this subchapter:

8-37                 (1)  "Motor vehicle" means a self-propelled vehicle

8-38     designed principally to transport persons or property on a public

8-39     roadway and  includes a passenger car, van, station wagon, sports

8-40     utility vehicle, and truck.  The term does not include a:

8-41                       (A)  trailer, semitrailer, house trailer, truck

8-42     having a manufacturer's rating of more than one-half ton, or

8-43     road-building machine;

8-44                       (B)  device moved only by human power;

8-45                       (C)  device used exclusively on stationary rails

8-46     or tracks;

8-47                       (D)  farm machine; or

8-48                       (E)  mobile office.

8-49                 (2)  "Rental" means an agreement by the owner of a

8-50     motor vehicle to authorize for not longer than 30 days the

8-51     exclusive use of that vehicle to another for consideration.

8-52                 (3)  "Place of business of the owner" means an

8-53     established outlet, office, or location operated by the owner of a

8-54     motor vehicle or the owner's agent or employee for the purpose of

8-55     renting motor vehicles and includes any location at which three or

8-56     more rentals are made during a year.

8-57           (b)  Except as provided by Subsection (a), words used in this

8-58     subchapter and defined by Chapter 152, Tax Code, have the meanings

8-59     assigned by Chapter 152, Tax Code.

8-60           Sec. 334.102.  TAX AUTHORIZED.  (a)  A municipality by

8-61     ordinance or a county by order may impose a tax on the rental in

8-62     the municipality or county of a motor vehicle.

8-63           (b)  A municipality by ordinance or a county by order may

8-64     repeal or decrease the rate of a tax imposed under Subsection (a).

8-65           (c)  A municipality or county may impose a tax under this

8-66     subchapter only if:

8-67                 (1)  an approved venue project is or is planned to be

8-68     located in the municipality or county; and

8-69                 (2)  the tax is approved at an election held under

 9-1     Section 334.024.

 9-2           Sec. 334.103.  SHORT-TERM RENTAL TAX.  (a)  Except as

 9-3     provided by Subsection (b), the tax authorized by this subchapter

 9-4     is  imposed at a rate in increments of one-eighth of one percent,

 9-5     not to exceed 10 percent, on the gross rental receipts from the

 9-6     rental in the municipality or county of a motor vehicle.

 9-7           (b)  In a municipality with a population of more than 1.2

 9-8     million, or a county with a population of more than 2.2 million,

 9-9     the tax authorized by this subchapter is imposed at a rate in

9-10     increments of one-eighth of one percent, not to exceed five

9-11     percent, on the gross rental receipts from the rental in the

9-12     municipality or county of a motor vehicle.

9-13           (c)  The ballot proposition at the election held to adopt the

9-14     tax must specify the maximum rate of the tax to be adopted.

9-15           Sec. 334.104.  RATE INCREASE.  (a)  A municipality or county

9-16     that has adopted a tax under this subchapter at a rate of less than

9-17     five percent or 10 percent, as applicable, may by ordinance or

9-18     order increase the rate of the tax to a maximum of five percent or

9-19     10 percent, as applicable, if the increase is approved by a

9-20     majority of the registered voters of that municipality or county

9-21     voting at an election called and held for that purpose.

9-22           (b)  The ballot for an election to increase the rate of the

9-23     tax shall be printed to permit voting for or against the

9-24     proposition:  "The increase of the motor vehicle rental tax for the

9-25     purpose of financing _____ (insert description of venue project) to

9-26     a maximum rate of _______ percent (insert new maximum rate not to

9-27     exceed five percent or 10 percent, as applicable)."

9-28           Sec. 334.105.  COMPUTATION OF TAX.  (a)  The owner of a motor

9-29     vehicle subject to the tax imposed under this subchapter shall

9-30     collect the tax for the benefit of the municipality or county.

9-31           (b)  The owner shall add the short-term motor vehicle rental

9-32     tax imposed by the municipality or county under this subchapter, if

9-33     applicable, and the gross rental receipts tax imposed by Chapter

9-34     152, Tax Code, to the rental charge, and the sum of the taxes is a

9-35     part of the rental charge, is a debt owed to the motor vehicle

9-36     owner by the person renting the vehicle, and is recoverable at law

9-37     in the same manner as the rental charge.

9-38           Sec. 334.106.  CONSUMMATION OF RENTAL.  A rental of a motor

9-39     vehicle occurs in the municipality or county in which transfer of

9-40     possession of the motor vehicle occurs.

9-41           Sec. 334.107.  EXEMPTIONS APPLICABLE.  The exemptions

9-42     provided by Subchapter E, Chapter 152, Tax Code, apply to the tax

9-43     authorized by this subchapter.

9-44           Sec. 334.108.  NOTICE OF TAX.  Each bill or other receipt for

9-45     a rental subject to the tax imposed under this subchapter must

9-46     contain a statement in a conspicuous location stating:  "_______

9-47     (insert name of taxing municipality or county) requires that an

9-48     additional tax of ____ percent (insert rate of tax) be imposed on

9-49     each motor vehicle rental for the purpose of financing ______

9-50     (describe approved venue project)."

9-51           Sec. 334.109.  GROSS RECEIPTS PRESUMED SUBJECT TO TAX.  All

9-52     gross receipts of an owner of a motor vehicle from the rental of

9-53     the motor vehicle are presumed to be subject to the tax imposed by

9-54     this subchapter, except for gross receipts for which the owner has

9-55     accepted in good faith a properly completed exemption certificate.

9-56           Sec. 334.110.  RECORDS.  (a)  The owner of a motor vehicle

9-57     used for rental purposes shall keep for four years records and

9-58     supporting documents containing the following information on the

9-59     amount of:

9-60                 (1)  gross rental receipts received from the rental of

9-61     the motor vehicle; and

9-62                 (2)  the tax imposed under this subchapter and paid to

9-63     the municipality or county on each motor vehicle used for rental

9-64     purposes by the owner.

9-65           (b)  Mileage records are not required.

9-66           Sec. 334.111.  FAILURE TO KEEP RECORDS.  (a)  An owner of a

9-67     motor vehicle commits an offense if the owner fails to make and

9-68     retain complete records for the four-year period required by

9-69     Section 334.110.

 10-1          (b)  An offense under this section is a misdemeanor

 10-2    punishable by a fine of not less than $25 or more than $500.

 10-3          Sec. 334.112.  EFFECTIVE DATE AND ENDING DATE OF TAX.  (a)  A

 10-4    tax imposed under this subchapter or a change in the tax rate takes

 10-5    effect on the date prescribed by the ordinance or order imposing

 10-6    the tax or changing the rate.

 10-7          (b)  A municipality or county may impose a tax under this

 10-8    subchapter only if the municipality or county issues bonds or other

 10-9    obligations under Section 334.043 before the first anniversary of

10-10    the date the tax is imposed.  The municipality or county may not

10-11    impose the tax after those bonds or other obligations are paid in

10-12    full.

10-13          Sec. 334.113.  TAX COLLECTION; PENALTY.  (a)  The owner of a

10-14    motor vehicle required to collect the tax imposed under this

10-15    subchapter shall report and send the taxes collected to the

10-16    municipality or county as provided by the ordinance or order

10-17    imposing the tax.

10-18          (b)  A municipality by ordinance or a county by order may

10-19    prescribe penalties, including interest charges, for failure to

10-20    keep records required by the municipality or county, to report when

10-21    required, or to pay the tax when due.

10-22          (c)  The attorney acting for the municipality or county may

10-23    bring suit against a person who fails to collect a tax under this

10-24    subchapter and to pay it over to the municipality or county as

10-25    required.

10-26          Sec. 334.114.  COLLECTION PROCEDURES ON PURCHASE OF MOTOR

10-27    VEHICLE RENTAL BUSINESS.  (a)  If the owner of a motor vehicle

10-28    rental business that makes rentals subject to the tax imposed by

10-29    this subchapter sells the business, the successor to the seller or

10-30    the seller's assignee shall withhold an amount of the purchase

10-31    price sufficient to pay the amount of tax due until the seller

10-32    provides a receipt by a person designated by the municipality or

10-33    county to provide the receipt showing that the amount has been paid

10-34    or a certificate showing that no tax is due.

10-35          (b)  The purchaser of a motor vehicle rental business who

10-36    fails to withhold an amount of the purchase price as required by

10-37    this section is liable for the amount required to be withheld to

10-38    the extent of the value of the purchase price.

10-39          (c)  The purchaser of a motor vehicle rental business may

10-40    request that the person designated by the municipality or county to

10-41    provide a receipt under Subsection (a)  issue a certificate stating

10-42    that no tax is due or issue a statement of the amount required to

10-43    be paid before a certificate may be issued.  The person designated

10-44    by the municipality or county shall issue the certificate or

10-45    statement not later than the 60th day after the date the person

10-46    receives the request.

10-47          (d)  If the person designated by the municipality or county

10-48    to provide a receipt under Subsection (a)  fails to issue the

10-49    certificate or statement within the period provided by Subsection

10-50    (c), the purchaser is released from the obligation to withhold the

10-51    purchase price or pay the amount due.

10-52          Sec. 334.115.  DEPOSIT OF TAX REVENUE.  Revenue from the tax

10-53    imposed under this subchapter shall be deposited in the venue

10-54    project fund of the municipality or county imposing the tax.

10-55             (Sections 334.116-334.150 reserved for expansion

10-56                       SUBCHAPTER F. ADMISSIONS TAX

10-57          Sec. 334.151.  TAX AUTHORIZED.  (a)  A municipality by

10-58    ordinance or a county by order may impose a tax on each ticket sold

10-59    as admission to an event held at an approved venue project in the

10-60    municipality or county for which the municipality or county has

10-61    issued bonds to plan, acquire, establish, develop, construct, or

10-62    renovate the approved venue project.

10-63          (b)  The municipality or county may not impose the tax under

10-64    this subchapter for admission to an event at a venue that is not an

10-65    approved venue project or for which the municipality or county has

10-66    not issued bonds to plan, acquire, establish, develop, construct,

10-67    or renovate the approved venue project.

10-68          (c)  A municipality or county may impose a tax under this

10-69    subchapter only if:

 11-1                (1)  an approved venue project is or will be located in

 11-2    the municipality or county; and

 11-3                (2)  the tax is approved at an election held under

 11-4    Section 334.024.

 11-5          Sec. 334.152.  TAX RATE.  (a)  The tax authorized by this

 11-6    subchapter is imposed at the tax rate on each ticket sold as

 11-7    admission to an event held at an approved venue.

 11-8          (b)  The amount of the tax may be imposed at any uniform

 11-9    percentage not to exceed 10 percent of the price of the ticket sold

11-10    as admission to an event held at an approved venue.

11-11          (c)  The ballot proposition at the election held to adopt the

11-12    tax must specify the maximum rate of the tax to be adopted.

11-13          (d)  The municipality by ordinance or the county by order may

11-14    repeal or decrease the rate of the tax imposed under this

11-15    subchapter.

11-16          Sec. 334.153.  RATE INCREASE.  (a)  A municipality or county

11-17    that has adopted a tax under this subchapter at the rate of less

11-18    than the maximum percentage allowed by this subchapter may by

11-19    ordinance or order increase the rate of the tax to the maximum

11-20    percentage allowed by this subchapter if the increase is approved

11-21    by a majority of the registered voters of that municipality or

11-22    county voting at an election called and held for that purpose.

11-23          (b)  The ballot for an election to increase the rate of the

11-24    tax shall be printed to permit voting for or against the

11-25    proposition:  "The increase of the admissions tax for the purpose

11-26    of financing _______ (insert description of venue project) to a

11-27    maximum rate of ________ percent of the price of each ticket sold

11-28    as admission to an event held at an approved venue (insert new

11-29    maximum rate not to exceed 10 percent of the price of each ticket

11-30    sold as admission to an event held at an approved venue)."

11-31          Sec. 334.154.  COLLECTION.  (a)  The municipality by

11-32    ordinance or the county by order may require the owner or lessee of

11-33    an approved venue project in the municipality or county to collect

11-34    the tax for the benefit of the municipality or county.

11-35          (b)  An owner or lessee required to collect the tax under

11-36    this section shall add the tax to the admissions price, and the tax

11-37    is a part of the admissions price, a debt owed to the owner or

11-38    lessee of the approved venue project by the person admitted, and

11-39    recoverable at law in the same manner as the admissions charge.

11-40          (c)  The tax imposed by this subchapter is not an occupation

11-41    tax imposed on the owner or lessee of the approved venue project.

11-42          Sec. 334.155.  EFFECTIVE DATE AND ENDING DATE OF TAX.  (a)  A

11-43    tax imposed under this subchapter or a change in a tax  rate takes

11-44    effect on the date prescribed by the ordinance or order imposing

11-45    the tax or changing the rate.

11-46          (b)  A municipality or county may impose a tax under this

11-47    subchapter only if the municipality or county issues bonds or other

11-48    obligations under Section 334.043.  The municipality or county may

11-49    impose the tax only while those bonds or other obligations are

11-50    outstanding and unpaid.

11-51          Sec. 334.156.  COLLECTION OF TAX.  (a)  A person required to

11-52    collect a tax imposed under this subchapter shall report  and send

11-53    the taxes to the municipality or county as provided by the

11-54    municipality or county imposing the tax.

11-55          (b)  A municipality by ordinance or a county by order may

11-56    prescribe penalties, including interest charges, for failure to

11-57    keep records required by the municipality or county, to report when

11-58    required, or to pay the tax when due.  The attorney acting for the

11-59    municipality or county may bring suit against a person who fails to

11-60    collect a tax under this subchapter and to pay it over to the

11-61    municipality or county as required.

11-62          (c)  A municipality by ordinance or a county by order may

11-63    permit a person who is required to collect a tax under this

11-64    subchapter to retain a percentage of the amount collected and

11-65    required to be reported as reimbursement to the person for the

11-66    costs of collecting the tax.  The municipality or county may

11-67    provide that the person may retain the amount only if the person

11-68    pays the tax and files reports as required by the municipality or

11-69    county.

 12-1          Sec. 334.157.  DEPOSIT OF TAX REVENUE.  Revenue from the tax

 12-2    imposed under this subchapter shall be deposited in the venue

 12-3    project fund of the municipality or county imposing the tax.

 12-4             (Sections 334.158-334.200 reserved for expansion

 12-5                        SUBCHAPTER G.  PARKING TAX

 12-6          Sec. 334.201.  EVENT PARKING TAX.  (a)  A municipality by

 12-7    ordinance or a county by order may impose a tax on each motor

 12-8    vehicle parking in a parking facility of an approved venue project.

 12-9          (b)  The municipality or county may impose the tax during a

12-10    period beginning not more than three hours before and ending not

12-11    more than three hours after the time an event in an approved venue

12-12    project is scheduled to begin.  The municipality or county may not

12-13    impose the tax under this subchapter during any other time.

12-14          (c)  A municipality or county may impose a tax under this

12-15    subchapter only if the tax is approved at an election held under

12-16    Section 334.024.

12-17          Sec. 334.202.  TAX RATE.  (a)  The municipality by ordinance

12-18    or the county by order may provide that the tax is imposed at a

12-19    flat amount on each parked motor vehicle or is imposed as a

12-20    percentage of the amount charged for event parking by the owner or

12-21    lessee of the parking facility.

12-22          (b)  Regardless of the method of imposition, the amount of

12-23    the tax may not exceed $3 for each motor vehicle.

12-24          (c)  The ballot proposition at the election held to adopt the

12-25    tax must specify the maximum rate of the tax to be adopted.

12-26          (d)  The municipality by ordinance or the county by order may

12-27    repeal or decrease the rate of the tax imposed under this section.

12-28          Sec. 334.203.  RATE INCREASE.  (a)  A municipality or county

12-29    that has adopted a tax under this subchapter at a rate of less than

12-30    $3 a vehicle may by ordinance or order increase the rate of the tax

12-31    to a maximum of $3 a vehicle if the increase is approved by a

12-32    majority of the registered voters of that municipality or county

12-33    voting at an election called and held for that purpose.

12-34          (b)  The ballot for an election to increase the rate of the

12-35    tax shall be printed to permit voting for or against the

12-36    proposition:  "The increase of the parking tax for the purpose of

12-37    financing _______ (insert description of venue project) to a

12-38    maximum rate of _______ (insert new maximum rate not to exceed

12-39    $3)."

12-40          Sec. 334.204.  COLLECTION.  (a)  The municipality by

12-41    ordinance or the county by order may require the owner or lessee of

12-42    a  parking facility to collect the tax for the benefit of the

12-43    municipality or county.

12-44          (b)  An owner or lessee required to collect the tax under

12-45    this section shall add the tax to the parking charge, and the tax

12-46    is a part of the parking charge, a debt owed to the parking

12-47    facility owner or lessee by the person parking, and recoverable at

12-48    law in the same manner as the parking charge.

12-49          (c)  The tax imposed by this subchapter is not an occupation

12-50    tax imposed on the owner or lessee of the parking facility.

12-51          Sec. 334.205.  EFFECTIVE DATE AND ENDING DATE OF TAX.  (a)  A

12-52    tax imposed under this subchapter or a change in the tax rate takes

12-53    effect on the date prescribed by the ordinance or order imposing

12-54    the tax or changing the rate.

12-55          (b)  A municipality or county may impose a tax under this

12-56    subchapter only if the municipality or county issues bonds or other

12-57    obligations under Section 334.043.  The municipality or county may

12-58    impose the tax only while those bonds or other obligations are

12-59    outstanding and unpaid.

12-60          Sec. 334.206.  COLLECTION OF TAX.  (a)  A person required to

12-61    collect a tax imposed under this subchapter shall report and send

12-62    the taxes to the municipality or county as provided by the

12-63    municipality or county imposing the tax.

12-64          (b)  A municipality by ordinance or a county by order may

12-65    prescribe penalties, including interest charges, for failure to

12-66    keep records required by the municipality or county, to report when

12-67    required, or to pay the tax when due.  The attorney acting for the

12-68    municipality or county may bring suit against a person who fails to

12-69    collect a tax under this subchapter and to pay it over to the

 13-1    municipality or county as required.

 13-2          (c)  A municipality by ordinance or a county by order may

 13-3    permit a person who is required to collect a tax under this

 13-4    subchapter to retain a percentage of the amount collected and

 13-5    required to be reported as reimbursement to the person for the

 13-6    costs of collecting the tax.  The municipality or county may

 13-7    provide that the person may retain the amount only if the person

 13-8    pays the tax and files reports as required by the municipality or

 13-9    county.

13-10          Sec. 334.207.  DEPOSIT OF TAX REVENUE.  Revenue from the tax

13-11    imposed under this subchapter shall be deposited in the venue

13-12    project fund of the municipality or county imposing the tax.

13-13             (Sections 334.208-334.250 reserved for expansion

13-14                   SUBCHAPTER H.  HOTEL OCCUPANCY TAXES

13-15          Sec. 334.251.  DEFINITION.  In this subchapter, "hotel" has

13-16    the meaning assigned by Section 156.001, Tax Code.

13-17          Sec. 334.252.  APPLICATION OF SUBCHAPTER.  (a)  This

13-18    subchapter applies only to:

13-19                (1)  a municipality with a population of less than

13-20    200,000 whose boundaries are located within two counties;

13-21                (2)  a county contiguous to the Gulf of Mexico or a bay

13-22    or inlet opening into the gulf and bordering the United Mexican

13-23    States;

13-24                (3)  a county adjacent to a county described by

13-25    Subdivision (2) that also borders the United Mexican States;

13-26                (4)  a municipality located within the boundaries of a

13-27    county described by Subdivision (2) or (3); and

13-28                (5)  an eligible entity described by Subsection (b).

13-29          (b)  An eligible entity means a municipality with a

13-30    population of more than 1.2 million or a county with a population

13-31    of more than 2.2 million if the municipality and the county have

13-32    joined together to form a sports and community venue district under

13-33    Chapter 335 or a municipality with a population of less than

13-34    200,000 in the boundary of which is contained a professional sports

13-35    facility with a seating of at least 60,000 seats that has been in

13-36    existence and used for professional sports activities for at least

13-37    25 years.

13-38          Sec. 334.253.  IMPOSITION OF TAX.  (a)  A municipality by

13-39    ordinance or a county by order may impose a tax on a person who,

13-40    under a lease, concession, permit, right of access, license,

13-41    contract, or agreement, pays for the use or possession or for the

13-42    right to the use or possession of a room that is in a hotel, costs

13-43    $2 or more each day, and is ordinarily used for sleeping.

13-44          (b)  A municipality or county may impose a tax under this

13-45    subchapter only if:

13-46                (1)  an approved venue project is or is planned to be

13-47    located in the municipality or county; and

13-48                (2)  the tax is approved at an election held under

13-49    Section 334.024.

13-50          Sec. 334.254.  TAX CODE APPLICABLE.  (a)  Sections

13-51    351.002(c), 351.004, 351.0041, 351.005, and 351.006, Tax Code,

13-52    govern the imposition, computation, administration, collection, and

13-53    remittance of a municipal tax authorized under this subchapter

13-54    except as inconsistent with this subchapter.

13-55          (b)  Sections 352.002(c), 352.004, 352.0041, 352.005, and

13-56    352.007, Tax Code, govern the imposition, computation,

13-57    administration, collection, and remittance of a county tax

13-58    authorized under this subchapter except as inconsistent with this

13-59    subchapter.

13-60          (c)  The tax imposed by this subchapter is in addition to a

13-61    tax imposed under Chapter 351 or 352, Tax Code.

13-62          Sec. 334.255.  TAX RATE.  (a)  The tax authorized by this

13-63    subchapter may be imposed by a municipality or county described by

13-64    Sections 334.252(a)(1)-(4) at any rate not to exceed five percent

13-65    of the price paid for a room in a hotel or by an eligible entity

13-66    described by Section 334.252(b) at any rate not to exceed two

13-67    percent of the price paid for a room in a hotel.

13-68          (b)  The ballot proposition at the election held to adopt the

13-69    tax must specify the maximum rate of the tax to be adopted.

 14-1          Sec. 334.256.  RATE INCREASE.  (a)  A municipality or county

 14-2    that has adopted a tax under this subchapter  at a rate of less

 14-3    than five percent or two percent, as applicable, may by ordinance

 14-4    or order increase the rate of the tax to the maximum applicable

 14-5    rate if the increase is approved by a majority of the registered

 14-6    voters of that municipality or county voting at an election called

 14-7    and held for that purpose.

 14-8          (b)  The ballot for an election to increase the rate of the

 14-9    tax shall be printed to permit voting for or against the

14-10    proposition:  "The increase of the hotel occupancy tax for the

14-11    purpose of financing __________  (insert description of venue

14-12    project) to a maximum rate of ___________ percent (insert new

14-13    maximum applicable rate)."

14-14          Sec. 334.257.  NOTICE OF TAX.  Each bill or other receipt for

14-15    a hotel charge subject to the tax imposed under this subchapter

14-16    must contain a statement in a conspicuous location stating:

14-17    "_____________ (insert name of taxing municipality or county)

14-18    requires that an additional tax of _____ percent (insert rate of

14-19    tax) be imposed on each hotel charge for the purpose of financing a

14-20    venue project."

14-21          Sec. 334.258.  EFFECTIVE DATE AND ENDING DATE OF TAX.  (a)  A

14-22    tax imposed under this subchapter or a change in the tax rate takes

14-23    effect on the date prescribed by the ordinance or order imposing

14-24    the tax or changing the rate.

14-25          (b)  A municipality or county may impose a tax under this

14-26    subchapter only if the municipality or county issues bonds or other

14-27    obligations under Section 334.043 before the first anniversary of

14-28    the date the tax is imposed.  The municipality or county may impose

14-29    the tax only while those bonds or other obligations are outstanding

14-30    and unpaid.

14-31          Sec. 334.259.  DEPOSIT OF TAX REVENUE.  Revenue from the tax

14-32    imposed under this subchapter shall be deposited in the venue

14-33    project fund of the municipality or county imposing the tax.

14-34             (Sections 334.260-334.300 reserved for expansion

14-35                     SUBCHAPTER I.  FACILITY USE TAX 

14-36          Sec. 334.301.  DEFINITION.  In this subchapter, "major league

14-37    team" means a team that is a member of the National Football

14-38    League, National Basketball Association, or National Hockey League

14-39    or a major league baseball team or any other professional team.

14-40          Sec. 334.302.  TAX AUTHORIZED.  (a)  A municipality by

14-41    ordinance or a county by order may impose a facility use tax on

14-42    each member of a major league team that plays a professional sports

14-43    game in  an approved venue project in the municipality or county

14-44    for which the municipality or county has issued bonds to plan,

14-45    acquire, establish, develop, construct, or renovate the approved

14-46    venue project.

14-47          (b)  The municipality or county may not impose the facility

14-48    use tax under this subchapter for a professional sports game at a

14-49    venue that is not an approved venue project or for which the

14-50    municipality or county has not issued bonds to plan, acquire,

14-51    establish, develop, construct, or renovate the approved venue

14-52    project.

14-53          (c)  A municipality or county may impose a tax under this

14-54    subchapter only if:

14-55                (1)  an approved venue project is or will be located in

14-56    the municipality or county; and

14-57                (2)  the tax is approved at an election held under

14-58    Section 334.024.

14-59          Sec. 334.303.  TAX RATE.  (a)  The tax authorized by this

14-60    subchapter is imposed at the tax rate on each member of the

14-61    professional sports team for each professional game the member

14-62    plays at the approved venue project.

14-63          (b)  The amount of the tax may be imposed at any uniform

14-64    monetary amount not to exceed $5,000 a game.

14-65          (c)  The ballot proposition at the election held to adopt the

14-66    tax must specify the maximum rate of the tax to be adopted.

14-67          (d)  The municipality by ordinance or the county by order may

14-68    repeal or decrease the rate of the tax imposed under this

14-69    subchapter.

 15-1          Sec. 334.304.  RATE INCREASE.  (a)  A municipality or county

 15-2    that has adopted a tax under this subchapter  at the rate of less

 15-3    than $5,000 a  game may by ordinance or order increase the rate of

 15-4    the tax to a maximum of $5,000 a game if the increase is approved

 15-5    by a majority of the registered voters of that municipality or

 15-6    county voting at an election called and held for that purpose.

 15-7          (b)  The ballot for an election to increase the rate of the

 15-8    tax shall be printed to permit voting for or against the

 15-9    proposition:  "The increase of the facility use tax for the purpose

15-10    of financing _______ (insert description of venue project) to a

15-11    maximum rate of ________ a game (insert new maximum rate not to

15-12    exceed $5,000)."

15-13          Sec. 334.305.  COLLECTION.  (a)  The municipality by

15-14    ordinance or the county by order may require the owner or lessee of

15-15    an approved  venue project in the municipality or county to collect

15-16    the tax for the benefit of the municipality or county.

15-17          (b)  The tax imposed by this subchapter is a debt owed to the

15-18    owner or lessee of the approved venue project by the team member

15-19    and recoverable at law.

15-20          (c)  The tax imposed by this subchapter is not an occupation

15-21    tax imposed on the owner or lessee of the approved venue project

15-22    or on the professional sports team member.

15-23          Sec. 334.306.  EFFECTIVE DATE AND ENDING DATE OF TAX.  (a)  A

15-24    tax imposed under this subchapter or a change in a tax   rate takes

15-25    effect on the date prescribed by the ordinance or order imposing

15-26    the tax or changing the rate.

15-27          (b)  A municipality or county may impose a tax under this

15-28    subchapter only if the municipality or county issues bonds or other

15-29    obligations under Section 334.043.  The municipality or county may

15-30    impose the tax only while those bonds or other obligations are

15-31    outstanding and unpaid.

15-32          Sec. 334.307.  COLLECTION OF TAX.  (a)  A person required to

15-33    collect a tax imposed under this subchapter shall report   and send

15-34    the taxes to the municipality or county as provided by the

15-35    municipality or county imposing the tax.

15-36          (b)  A municipality by ordinance or a county by order may

15-37    prescribe penalties, including interest charges, for failure to

15-38    keep records required by the municipality or county, to report when

15-39    required, or to pay the tax when due.  The attorney acting for the

15-40    municipality or county may bring suit against a person who  fails

15-41    to collect a tax under this subchapter and to pay it over to the

15-42    municipality or county as required.

15-43          (c)  A municipality by ordinance or a county by order may

15-44    permit a person who is required to collect a tax under this

15-45    subchapter to retain a percentage of the amount collected and

15-46    required to be reported as reimbursement to the person for the

15-47    costs of collecting the tax.  The municipality or county may

15-48    provide that the person may retain the amount only if the person

15-49    pays the tax and files reports as required by the municipality or

15-50    county.

15-51          Sec. 334.308.  DEPOSIT OF TAX REVENUE.  Revenue from the tax

15-52    imposed under this subchapter shall be deposited in the venue

15-53    project fund of the municipality or county imposing the tax.

15-54             (Sections 334.309-334.350 reserved for expansion

15-55         SUBCHAPTER J.  ATHLETIC EVENTS IN CERTAIN MUNICIPALITIES

15-56          Sec. 334.351.  DEFINITION.  In this subchapter, "athletic

15-57    event" means a postseason intercollegiate athletic football bowl

15-58    game that is held annually.

15-59          Sec. 334.352.  APPLICATION OF SUBCHAPTER.  This subchapter

15-60    applies only to a municipality with  a population of more than

15-61    500,000 that is located in a county that borders the United Mexican

15-62    States.

15-63          Sec. 334.353.  SHORT-TERM MOTOR VEHICLE RENTAL TAX.  (a)

15-64    Notwithstanding any other provision of this chapter, a municipality

15-65    to which this subchapter applies may impose by ordinance a tax on

15-66    the rental in the municipality of a motor vehicle.

15-67          (b)  The municipality may impose the tax only if the tax is

15-68    approved at an election called and held for that purpose.

15-69          (c)  Except as otherwise provided by this subchapter,

 16-1    Subchapter E applies to the  tax imposed under this subchapter.

 16-2          Sec. 334.354.  USE OF REVENUE.  Notwithstanding any other

 16-3    provision of this chapter, the municipality may use revenue from

 16-4    the tax to:

 16-5                (1)  pay the costs of collecting the tax;

 16-6                (2)  operate one or more athletic events in the

 16-7    municipality; and

 16-8                (3)  pay costs associated with an athletic event in the

 16-9    municipality, including paying the costs of planning, acquiring,

16-10    establishing, developing, advertising, promoting, conducting,

16-11    sponsoring, or otherwise supporting the event.

16-12            CHAPTER 335.  SPORTS AND COMMUNITY VENUE DISTRICTS

16-13                     SUBCHAPTER A.  GENERAL PROVISIONS

16-14          Sec. 335.001.  DEFINITIONS.  In this chapter:

16-15                (1)  "Approved venue project" has the meaning assigned

16-16    by Section 334.001, except that the approval of the project must

16-17    occur under this chapter.

16-18                (2)  "Board" means the board of directors of a venue

16-19    district.

16-20                (3)  "District" means a venue district created under

16-21    this chapter.

16-22                (4)  "Related infrastructure" has the meaning assigned

16-23    by Section 334.001.

16-24                (5)  "Venue" has the meaning assigned by Section

16-25    334.001.

16-26                (6)  "Venue project" has the meaning assigned by

16-27    Section 334.001, except that the actions described by that section

16-28    must occur under this chapter.

16-29          Sec. 335.002.  APPLICATION TO VENUE CONSTRUCTED UNDER OTHER

16-30    LAW.  A district may use this chapter for a venue project relating

16-31    to a venue and related infrastructure planned, acquired,

16-32    established, developed, constructed, or renovated under other law,

16-33    including Section 4B, Development Corporation Act of 1979 (Article

16-34    5190.6, Vernon's Texas Civil Statutes), or Subchapter E, Chapter

16-35    451, Transportation Code.

16-36          Sec. 335.003.  OTHER USES OF VENUE PERMITTED.  This chapter

16-37    does not prohibit the use of a venue for an event that is not

16-38    related to a purpose described by Section 334.001, such as a

16-39    community-related event.

16-40          Sec. 335.004.  SPECIFIC PERFORMANCE.  (a)  The legislature

16-41    expressly finds and determines that:

16-42                (1)  the presence of a professional sports team in an

16-43    approved venue project built or renovated under this chapter

16-44    provides a unique value to the district that built or renovated the

16-45    project and to each political subdivision that created the district

16-46    that cannot be adequately valued in money; and

16-47                (2)  the district that built or renovated the approved

16-48    venue project and each political subdivision that created the

16-49    district would suffer irreparable injury if a professional sports

16-50    team breaches its obligation to play its home games in the approved

16-51    venue project as required by an agreement between the sports team

16-52    and the district.

16-53          (b)  An agreement described by Subsection (a)(2) shall be

16-54    enforceable by specific performance in the courts of this state.  A

16-55    waiver of this remedy is contrary to public policy and is

16-56    unenforceable and void.

16-57             (Sections 335.005-335.020 reserved for expansion

16-58                       SUBCHAPTER B.  VENUE DISTRICT

16-59          Sec. 335.021.  CREATION.  A county and a municipality, two or

16-60    more counties, two or more municipalities, or a combination of

16-61    municipalities, counties, or municipalities and counties may create

16-62    a venue district under this chapter to plan, acquire, establish,

16-63    develop, construct, or renovate one or more venue projects in the

16-64    district subject to voter approval under Subchapter D.

16-65          Sec. 335.022.  ORDER CREATING DISTRICT.  A county and a

16-66    municipality, two or more counties, two or more municipalities, or

16-67    a combination of municipalities, counties, or municipalities and

16-68    counties may create a district under this chapter by  adopting

16-69    concurrent orders.  A concurrent order must:

 17-1                (1)  contain identical provisions;

 17-2                (2)  define the boundaries of the district to be

 17-3    coextensive with the combined boundaries of each creating political

 17-4    subdivision; and

 17-5                (3)  designate the number of directors, the manner of

 17-6    appointment, and the manner in which the chair will be appointed in

 17-7    accordance with Section 335.031.

 17-8          Sec. 335.023.  POLITICAL SUBDIVISION; OPEN MEETINGS.  (a)  A

 17-9    district is a political subdivision of the creating political

17-10    subdivisions and of this state.

17-11          (b)  A district is subject to Chapter 551, Government Code.

17-12             (Sections 335.024-335.030 reserved for expansion

17-13                     SUBCHAPTER C.  BOARD OF DIRECTORS

17-14          Sec. 335.031.  COMPOSITION AND APPOINTMENT OF BOARD.  (a)  A

17-15    district is governed by a board of  at least four directors.

17-16          (b)  The board is appointed by the mayors or county judges,

17-17    or both as appropriate, of the political subdivisions that create

17-18    the  district in accordance with the concurrent order.

17-19          (c)  Directors serve staggered two-year terms.  A director

17-20    may be removed by the appointing mayor or county judge at any time

17-21    without cause.  Successor directors are appointed in the same

17-22    manner as the original appointees.

17-23          (d)  To qualify to serve as a director, a person must be a

17-24    resident of the appointing political subdivision.  An employee,

17-25    officer, or member of the governing body of the appointing

17-26    political subdivision may serve as a director, but may not have a

17-27    personal interest in a contract executed by the district other than

17-28    as an employee, officer, or member of the governing body of the

17-29    political subdivision.

17-30          Sec. 335.032.  COMPENSATION.  A board member is not entitled

17-31    to compensation,  but is entitled to reimbursement for actual and

17-32    necessary expenses.

17-33          Sec. 335.033.  MEETINGS.  The board shall conduct its

17-34    meetings in the district.

17-35          Sec. 335.034.  OFFICERS.  The presiding officer is designated

17-36    as provided by the concurrent order.  The board shall designate

17-37    from the members of the board a secretary and other officers the

17-38    board considers  necessary.

17-39             (Sections 335.035-335.050 reserved for expansion

17-40                       SUBCHAPTER D.  VENUE PROJECTS

17-41          Sec. 335.051.  RESOLUTION AUTHORIZING PROJECT.  (a)  A

17-42    district by resolution may provide for the planning, acquisition,

17-43    establishment, development, construction, or renovation of a venue

17-44    project if:

17-45                (1)  the comptroller determines under Section 335.052

17-46    or 335.053 that the implementation of the resolution will not have

17-47    a significant negative fiscal impact on state revenue;

17-48                (2)  to the extent required by Section 335.0535 or

17-49    335.0536, a rapid transit authority determines that the

17-50    implementation of the resolution will not have a significant

17-51    negative impact on the authority's ability to provide services and

17-52    will not impair any existing contracts; and

17-53                (3)  the resolution is approved by a majority of the

17-54    qualified voters of each political subdivision that created the

17-55    district voting at one election or at separate elections called and

17-56    held for that purpose under Section 335.054.

17-57          (b)  The resolution must designate each venue project and

17-58    each method of financing authorized by this chapter that the

17-59    district wants to use to finance a project.  A resolution may

17-60    designate more than one method of financing.

17-61          Sec. 335.052.  STATE FISCAL IMPACT ANALYSIS.  (a)  Before

17-62    calling an election on the resolution under Section 335.054, the

17-63    district shall send a copy of the resolution to the comptroller.

17-64          (b)  Before the 15th day after the date the comptroller

17-65    receives the copy of the resolution, the comptroller shall:

17-66                (1)  perform an analysis to determine if approval and

17-67    implementation of the resolution will have a significant negative

17-68    fiscal impact on state revenue; and

17-69                (2)  provide to the district written notice of the

 18-1    results of the analysis.

 18-2          (c)  If the comptroller determines that implementation will

 18-3    have a significant negative fiscal impact on state revenue, the

 18-4    written analysis required under Subsection (b)(2) must include

 18-5    information on how to change the resolution so that implementation

 18-6    will not have a significant negative fiscal impact on state

 18-7    revenue.

 18-8          (d)  If the comptroller does not complete the analysis and

 18-9    provide the notice before the 30th day after the date the

18-10    comptroller receives the copy of the resolution, the comptroller is

18-11    considered to have determined that approval and implementation of

18-12    the resolution will not have a significant negative fiscal impact

18-13    on state revenue.

18-14          Sec. 335.053.  APPEAL OF COMPTROLLER DETERMINATION.  (a)  If

18-15    the comptroller determines under Section 335.052 that

18-16    implementation of the resolution will have a significant negative

18-17    fiscal impact on state revenue, the district may contest the

18-18    finding by filing an appeal with the comptroller not later than the

18-19    10th day after the date the district receives the written notice

18-20    under Section 335.052.

18-21          (b)  Before the 11th day after the date the comptroller

18-22    receives the appeal under Subsection (a), the comptroller shall

18-23    perform a new analysis to determine if implementation of the

18-24    resolution will have a significant negative fiscal impact on state

18-25    revenue and provide to the district written notice of the results

18-26    of the analysis.

18-27          (c)  If the comptroller again determines that implementation

18-28    will have a significant negative fiscal impact on state revenue,

18-29    the written analysis required under Subsection (b) must include

18-30    additional information on how to change the resolution so that

18-31    implementation will not have a significant negative fiscal impact

18-32    on state revenue.

18-33          (d)  If the comptroller does not comply with Subsection (b)

18-34    before the 30th day after the date the comptroller receives the

18-35    appeal or request for information, the comptroller is considered to

18-36    have determined that approval and implementation of the resolution

18-37    will not have a significant negative fiscal impact on state

18-38    revenue.

18-39          Sec. 335.0535.  TRANSPORTATION AUTHORITY IMPACT ANALYSIS.

18-40    (a)  If the resolution contains a proposed sales and use tax under

18-41    Subchapter D, Chapter 334, and imposition of the tax would result

18-42    in the reduction of the tax rate of a rapid transit authority

18-43    created under Chapter 451, Transportation Code, or a regional

18-44    transportation authority created under Chapter 452, Transportation

18-45    Code, the district shall send a copy of the resolution to the

18-46    authority before calling an election on the resolution under

18-47    Section 335.054.

18-48          (b)  Before the 30th day after the date the rapid transit

18-49    authority receives the copy of the resolution, the authority shall:

18-50                (1)  perform an analysis to determine if implementation

18-51    of the proposed sales and use tax and the resulting reduction in

18-52    the authority's tax rate will:

18-53                      (A)  have a significant negative impact on the

18-54    authority's ability to provide services; or

18-55                      (B)  impair any existing contracts; and

18-56                (2)  provide to the district written notice of the

18-57    results of the analysis.

18-58          (c)  If the rapid transit authority determines that

18-59    implementation of the resolution will have a significant negative

18-60    impact on the authority's ability to provide services or will

18-61    impair any existing contracts, the written analysis required under

18-62    Subsection (b)(2) must include information on how to change the

18-63    resolution so that implementation will not have a significant

18-64    negative impact on the authority's ability to provide service or

18-65    will not impair any existing contracts.

18-66          (d)  If the rapid transit authority does not complete the

18-67    analysis and provide the notice before the 30th day after the date

18-68    the authority receives the copy of the resolution, the authority is

18-69    considered to have determined that implementation of the resolution

 19-1    will not have a significant negative impact on the authority's

 19-2    ability to provide services and will not impair any existing

 19-3    contracts.

 19-4          Sec. 335.0536.  APPEAL OF AUTHORITY DETERMINATION.  (a)  If a

 19-5    rapid transit authority determines under Section 335.0535 that

 19-6    implementation of the resolution will have a significant negative

 19-7    impact on the authority's ability to provide services or will

 19-8    impair an existing contract, the district may contest the finding

 19-9    by filing an appeal with the authority not later than the 10th day

19-10    after the date the district receives the written notice under

19-11    Section 335.0535.

19-12          (b)  Before the 11th day after the date the rapid transit

19-13    authority receives the appeal under Subsection (a), the authority

19-14    shall  perform a new analysis to determine if implementation of the

19-15    resolution will have a significant negative impact on the

19-16    authority's ability to provide services or will impair an existing

19-17    contract and provide to the district written notice of the results

19-18    of the analysis.

19-19          (c)  If the authority again determines that implementation

19-20    will have a significant negative impact on the authority's ability

19-21    to provide services or will impair an existing contract, the

19-22    written analysis required under Subsection (b) must include

19-23    additional information on how to change the resolution so that

19-24    implementation will not have a significant negative impact on the

19-25    authority's ability to provide services and will not impair an

19-26    existing contract.

19-27          (d)  If the rapid transit authority does not comply with

19-28    Subsection (b) before the 11th day after the date the authority

19-29    receives the appeal or request for information, the authority is

19-30    considered to have determined that approval and implementation of

19-31    the resolution will not have a significant negative impact on the

19-32    authority's ability to provide services and will not impair any

19-33    existing contracts.

19-34          Sec. 335.054.  ELECTION.  (a)  If the comptroller determines

19-35    under Section 335.052 or 335.053 that implementation of the

19-36    resolution will not have a significant negative fiscal impact on

19-37    state revenue, and, if applicable, the rapid transit authority

19-38    determines under Section 335.0535 or 335.0536 that the

19-39    implementation will not have a significant impact on the

19-40    authority's ability to provide service and will not impair any

19-41    existing contracts, the board may order an election or elections on

19-42    the question of approving and implementing the resolution.  In a

19-43    district created by a county with a population of more than 2.2

19-44    million and a municipality with a population of more than 1.2

19-45    million, the board may order one district-wide election or may

19-46    order a separate election in each political subdivision that

19-47    created the district.  The election or elections shall be held on

19-48    the same day.

19-49          (b)  The order calling the election or elections must:

19-50                (1)  allow the voters to vote separately on each venue

19-51    project;

19-52                (2)  designate the venue project;

19-53                (3)  designate each method of financing authorized by

19-54    this chapter that the district wants to use to finance the project

19-55    and the maximum rate of each method; and

19-56                (4)  allow the voters to vote, in the same proposition

19-57    or in separate propositions, on each method of financing authorized

19-58    by this chapter that the district wants to use to finance the

19-59    project and the maximum rate of each method.

19-60          (c)  The ballot at the election or elections held under this

19-61    section must be printed to permit voting for or against the

19-62    proposition:  "Authorizing ________  (insert name of district) to

19-63    __________ (insert description of venue project) and to impose a

19-64    __________ tax (insert type of tax) at the rate of ________ (insert

19-65    maximum rate) for the purpose of financing the venue project."

19-66          (d)  If more than one method of financing is to be voted on

19-67    in one proposition, the ballot must be printed to permit voting for

19-68    or against the proposition:  "Authorizing _________ (insert name of

19-69    district) to __________ (insert description of venue project) and

 20-1    to impose a __________ tax at the rate of ________ (insert each

 20-2    type of tax and the maximum rate of each tax) for the purpose of

 20-3    financing the venue project."

 20-4          (e)  If a majority of the votes cast at the district-wide

 20-5    election or at the election in each creating political subdivision

 20-6    approves the proposition authorizing the project, the district may

 20-7    implement the resolution.  If separate elections are held and a

 20-8    majority of the votes cast in one or more of the creating political

 20-9    subdivisions disapproves the proposition authorizing the project,

20-10    the district may not implement the resolution.  If the project is

20-11    approved, but one or more financing methods contained in separate

20-12    propositions are disapproved, the district may use only the

20-13    approved financing methods.

20-14          (f)  The Election Code governs an election held under this

20-15    chapter.

20-16             (Sections 335.055-335.070 reserved for expansion

20-17                     SUBCHAPTER E.  POWERS AND DUTIES

20-18          Sec. 335.071.  GENERAL POWERS OF DISTRICT.  (a)  A district

20-19    may:

20-20                (1)  perform any act necessary to the full exercise of

20-21    the district's powers;

20-22                (2)  accept a gift, grant, or loan from a:

20-23                      (A)  department or agency of the United States;

20-24                      (B)  department, agency, or political subdivision

20-25    of this state; or

20-26                      (C)  public or private person;

20-27                (3)  acquire, sell, lease, convey, or otherwise dispose

20-28    of property or an interest in property, including a right-of-way or

20-29    easement or an approved  venue project, under terms and conditions

20-30    determined by the district;

20-31                (4)  employ necessary personnel; and

20-32                (5)  adopt rules to govern the operation of the

20-33    district and its employees and property.

20-34          (b)  A district may contract with a public or private person,

20-35    including one or more political subdivisions that created the

20-36    district or a sports team, club, organization, or other entity, to:

20-37                (1)  plan, acquire, establish, develop, construct, or

20-38    renovate an approved venue project; or

20-39                (2)  perform any other act the district is authorized

20-40    to perform under this chapter, other than conducting an election

20-41    under this chapter.

20-42          (c)  A district may contract with or enter into an interlocal

20-43    agreement with a school district, junior or community college

20-44    district, or an institution of higher education as defined by

20-45    Section 61.003, Education Code, for a purpose described by

20-46    Subsection (b).  The contract or interlocal agreement may provide

20-47    for joint ownership and operation or joint use.

20-48          (d)  The competitive bidding laws, including Chapter 271, do

20-49    not apply to the planning, acquisition, establishment, development,

20-50    construction, or renovation of an approved venue project.

20-51          (e)  A district may impose any tax a municipality or county

20-52    may impose under Chapter 334, subject to approval of the voters of

20-53    the district as prescribed by this chapter and Chapter 334.  The

20-54    district shall impose the tax in the same manner as a county or

20-55    municipality and may issue bonds in lieu of a county or

20-56    municipality as required by Chapter 334.

20-57          (f)  A district may not levy an ad valorem tax.

20-58          (g)  In a transaction with another public entity that is made

20-59    as provided by Subsection (a)(3), the public purpose found by the

20-60    legislature under Section 335.074 is adequate consideration for the

20-61    district and the other public entity.

20-62          (h)  A district has the right and power of eminent domain

20-63    under Chapter 21, Property Code, to acquire and condemn any

20-64    interest, including a fee simple interest, in real property in the

20-65    district, in connection with the planning, acquisition,

20-66    establishment, development, construction, renovation, repair,

20-67    maintenance, or operation of an approved venue project.  A district

20-68    is not required to provide bond for appeal or bond for costs under

20-69    Section 21.021(a)(2) or (3), Property Code, in any lawsuit to which

 21-1    the district is a party and is not required to deposit more than

 21-2    the amount of the award in a suit.

 21-3          Sec. 335.0715.  USE OF FINANCING FOR CERTAIN PROJECTS.

 21-4    Notwithstanding any other provision of this chapter, a district, a

 21-5    municipality or county that created the district, or an entity

 21-6    created by or acting on behalf of or in conjunction with the

 21-7    district, municipality, or county, that contracts with a

 21-8    professional sports team or the team's owner or representative for

 21-9    the team to relocate and play at an arena, coliseum, or stadium in

21-10    the district may not use any method of financing authorized by this

21-11    chapter to finance the acquisition or construction of the arena,

21-12    coliseum, or stadium if the team is playing under an existing

21-13    contract and is located in another arena, coliseum, or stadium

21-14    owned by a different municipality or county in this state unless

21-15    the governing body of that different municipality or county

21-16    consents to the contract.

21-17          Sec. 335.072.  VENUE PROJECT FUND.  (a)  A district in which

21-18    an approved venue project is located shall establish by resolution

21-19    a fund known as the venue project fund.  The district shall

21-20    establish separate accounts within the fund for the various revenue

21-21    sources.

21-22          (b)  The district shall deposit into the venue project fund:

21-23                (1)  the proceeds from any tax imposed by the district;

21-24                (2)  all revenue from the sale of bonds or other

21-25    obligations by the district;

21-26                (3)  money received under Section 335.075 from a

21-27    political subdivision that created the district; and

21-28                (4)  any other money required by law to be deposited in

21-29    the fund.

21-30          (c)  The district may deposit into the venue project fund:

21-31                (1)  money received by the district from innovative

21-32    funding concepts such as the sale or lease of luxury boxes or the

21-33    sale of licenses for personal seats; and

21-34                (2)  any other revenue received by the district from

21-35    the approved venue project, including stadium rental payments and

21-36    revenue from concessions and parking.

21-37          (d)  The district may use money in the venue project fund to:

21-38                (1)  reimburse or pay the costs of planning, acquiring,

21-39    establishing, developing, constructing, or renovating one or more

21-40    approved venue projects in the district;

21-41                (2)  pay the principal of, interest on, and other costs

21-42    relating to bonds or other obligations  issued by the district or

21-43    to refund bonds or other obligations; or

21-44                (3)  pay the costs of operating or maintaining one or

21-45    more approved venue projects.

21-46          (e)  Money deposited into the venue project fund, including

21-47    money deposited under Subsection (c), is the property of the

21-48    district depositing the money.

21-49          Sec. 335.0725.  BOOKS, RECORDS, AND PAPERS.  The books,

21-50    records, and papers of the district relating to an approved venue

21-51    project and the revenue used to finance the project are public

21-52    information and subject to disclosure under Chapter 552, Government

21-53    Code.

21-54          Sec. 335.073.  BONDS AND OTHER OBLIGATIONS.  (a)  A district

21-55    in which an approved venue project is located  may issue bonds,

21-56    including revenue bonds and refunding bonds, or other obligations

21-57    to pay the costs of the approved venue project.  For a district

21-58    created by a county with a population of more than 2.2 million and

21-59    a municipality with a population of more than 1.2 million, the

21-60    power of the district to issue bonds or other obligations is

21-61    subject to the prior approval by the governing bodies of the county

21-62    and municipality.

21-63          (b)  The bonds or other obligations and the proceedings

21-64    authorizing the bonds or other obligations shall be submitted to

21-65    the attorney general for review and approval as required by Article

21-66    3, Chapter 53, Acts of the 70th Legislature, 2nd Called Session,

21-67    1987 (Article 717k-8, Vernon's Texas Civil Statutes).

21-68          (c)  The bonds or other obligations must be payable from and

21-69    secured by the designated revenues in the venue project fund.

 22-1          (d)  The bonds or other obligations may mature serially or

 22-2    otherwise not more than 30 years from their date of issuance.

 22-3          (e)  The bonds or other obligations are not a debt of and do

 22-4    not create a claim for payment against the revenue or property of

 22-5    the district other than the revenue sources pledged and an approved

 22-6    venue  project for which the bonds are issued.

 22-7          (f)  A district may issue short term obligations and enter

 22-8    into credit agreements under Chapter 656, Acts of the 68th

 22-9    Legislature, Regular Session, 1983 (Article 717q, Vernon's Texas

22-10    Civil Statutes).  For purposes of that Act, a district is a "public

22-11    utility" and an approved venue project is an "eligible project."

22-12          Sec. 335.074.  PUBLIC PURPOSE OF VENUE PROJECT.  (a)  The

22-13    legislature finds for all constitutional and statutory purposes

22-14    that an approved venue project is owned, used, and held for public

22-15    purposes by the district.

22-16          (b)  Section 25.07(a), Tax Code, does not apply to a

22-17    leasehold or other possessory interest granted by the district

22-18    while the district owns the venue project.

22-19          (c)  The project is exempt from taxation under Section 11.11,

22-20    Tax Code, while the district owns the venue project.

22-21          (d)  If approval and implementation of a resolution under

22-22    this chapter results in the removal from a school district's

22-23    property tax rolls of real property otherwise subject to ad valorem

22-24    taxation, the operator of the approved venue project located on

22-25    that real property shall pay to the school district on January 1 of

22-26    each year in which the project is in operation and in which the

22-27    real property is exempt from ad valorem taxation an amount equal to

22-28    the ad valorem taxes that would otherwise have been levied for the

22-29    preceding tax year on that real property by the school district,

22-30    without including the value of any improvements.  This subsection

22-31    does not apply if the operator of the project is a political

22-32    subdivision of this state.

22-33          Sec. 335.075.  CONTRIBUTION OR DEDICATION OF CERTAIN REVENUE

22-34    BY POLITICAL SUBDIVISION.  (a)  A political subdivision, including

22-35    a metropolitan rapid transit authority created under Chapter 451,

22-36    Transportation Code, may contribute or dedicate to the district all

22-37    or part of the sales and use tax revenue received by the political

22-38    subdivision that is generated, paid, or collected by any or all

22-39    businesses operating in an approved venue project.  If the

22-40    political subdivision contributes or dedicates the revenue to

22-41    assist the district in securing bonds or other obligations,

22-42    including refunding bonds, that are issued to provide funding for

22-43    an approved venue project, the political subdivision may not make a

22-44    contribution or dedication for that purpose after the date on which

22-45    those bonds or other obligations are no longer outstanding.

22-46          (b)  A political subdivision may contribute or dedicate sales

22-47    and use tax revenue under this section only if the governing body

22-48    or governing board of the political subdivision determines that the

22-49    approved venue project from which the revenue was or will be

22-50    derived will contribute to the economic, cultural, or recreational

22-51    development or well-being of the residents of the political

22-52    subdivision.

22-53          (c)  The district shall deposit revenue contributed or

22-54    dedicated under this section in the venue project fund and may use

22-55    the revenue in the same manner as any other money deposited in the

22-56    fund.

22-57          (d)  A contribution or dedication of revenue under this

22-58    section is not a "method of financing" of the district as that term

22-59    is used in Subchapter D.

22-60          Sec. 335.076.  COUNTY VENUE DISTRICT.  A county, acting

22-61    through its commissioners court, may create a venue district on

22-62    land within the unincorporated area of the county to plan, acquire,

22-63    establish, develop, finance, construct, or renovate one or more

22-64    venue projects in the district, provided said proposed venue

22-65    district contains fewer than 150 acres and is not platted under

22-66    Chapter 212 or 232 for single-family or multi-family residential

22-67    purposes.  Said district shall have those powers granted by

22-68    Chapters 325, 372, and 375.

22-69          SECTION 2.  Section 4A, Development Corporation Act of 1979

 23-1    (Article 5190.6, Vernon's Texas Civil Statutes), is amended by

 23-2    adding Subsection (s) to read as follows:

 23-3          (s)(1)  A city that creates or has created a corporation

 23-4    governed by this section may submit to the voters of the city, at a

 23-5    separate election to be held on a uniform election date or at an

 23-6    election held under another provision of this Act, including the

 23-7    election at which the proposition to initially authorize the

 23-8    collection of a sales and use tax for the benefit of the

 23-9    corporation is submitted, a ballot proposition that authorizes the

23-10    corporation to use the sales and use tax, including any amount

23-11    previously authorized and collected, for a specific project or for

23-12    a specific category of projects, including a sports venue and

23-13    related infrastructure, that does not qualify under this section

23-14    but qualifies under Section 4B of this Act.  Prior approval of a

23-15    specific project at an election or completion of a specific project

23-16    approved at an election does not prohibit a city from seeking voter

23-17    approval of an additional project or category of projects under

23-18    this subsection to be funded from the same sales and use tax.

23-19                (2)  In the election to authorize the use of the sales

23-20    or use tax for a specific project or for a specific category of

23-21    projects not authorized under this section, including a sports

23-22    venue and related infrastructure, the project or category of

23-23    projects must be clearly described on the ballot so that a voter

23-24    will be able to discern the limits of the specific project or

23-25    category of projects authorized by the proposition.  If maintenance

23-26    and operating costs of an otherwise authorized facility are to be

23-27    paid from the sales or use tax, the ballot language must clearly

23-28    state that fact.

23-29                (3)  Before an election may be held under this

23-30    subsection, a public hearing shall be held in the city to inform

23-31    the residents of the city of the cost and impact of the project or

23-32    category of projects.  At least 30 days before the date set for the

23-33    hearing, a notice of the date, time, place, and subject of the

23-34    hearing shall be published in a newspaper with general circulation

23-35    in the city in which the project is located.  The notice shall be

23-36    published on a weekly basis until the date of the hearing.

23-37                (4)  If a majority of the voters voting on the issue do

23-38    not approve a specific project or a specific category of projects

23-39    at an election under this subsection, another election may not be

23-40    held on the same project or category of projects before the first

23-41    anniversary of the date of the most recent election disapproving

23-42    the project or category of projects.

23-43                (5)  In this subsection:

23-44                      (A)  "Related infrastructure" has the meaning

23-45    assigned by Section 334.001, Local Government Code.

23-46                      (B)  "Sports venue" means an arena, coliseum,

23-47    stadium, or other type of area or facility:

23-48                            (i)  that is primarily used or is planned

23-49    for primary use for one or more professional or amateur sports or

23-50    athletics events; and

23-51                            (ii)  for which a fee for admission to the

23-52    sports or athletics events, other than occasional civic,

23-53    charitable, or promotional events, is charged or is planned to be

23-54    charged.

23-55          SECTION 3.  Section 4B, Development Corporation Act of 1979

23-56    (Article 5190.6, Vernon's Texas Civil Statutes), is amended by

23-57    adding Subsections (a-3) and (a-4) to read as follows:

23-58          (a-3)(1)  A city that creates or has created a corporation

23-59    governed by this section may submit to the voters of the city, at a

23-60    separate election to be held on a uniform election date or at an

23-61    election held under another provision of this Act, including the

23-62    election at which the proposition to initially authorize the

23-63    collection of a sales and use tax for the benefit of the

23-64    corporation is submitted, a ballot proposition that authorizes the

23-65    corporation to use the sales and use tax, including any amount

23-66    previously authorized and collected, for a specific sports venue

23-67    project, including related infrastructure, or for a specific

23-68    category of sports venue projects, including related

23-69    infrastructure.  Prior approval of a specific sports venue project

 24-1    at an election or completion of a specific sports venue project

 24-2    approved at an election does not prohibit a city from seeking voter

 24-3    approval of an additional project or category of projects under

 24-4    this subsection to be funded from the same sales and use tax.

 24-5                (2)  In the election to authorize the use of the sales

 24-6    or use tax for a specific sports venue project or for a specific

 24-7    category of sports venue projects, the project or category of

 24-8    projects must be clearly described on the ballot so that a voter

 24-9    will be able to discern the limits of the specific project or

24-10    category of projects authorized by the proposition.  If maintenance

24-11    and operating costs of an otherwise authorized facility are to be

24-12    paid from the sales or use tax, the ballot language must clearly

24-13    state that fact.

24-14                (3)  Before an election may be held under this

24-15    subsection, a public hearing shall be held in the city to inform

24-16    the residents of the city of the cost and impact of the project or

24-17    category of projects.  At least 30 days before the date set for the

24-18    hearing, a notice of the date, time, place, and subject of the

24-19    hearing shall be published in a newspaper with general circulation

24-20    in the city in which the project is located.  The notice shall be

24-21    published on a weekly basis until the date of the hearing.

24-22                (4)  If a majority of the voters voting on the issue do

24-23    not approve a specific sports venue project or a specific category

24-24    of sports venue projects at an election under this subsection,

24-25    another election may not be held on the same project or category of

24-26    projects before the first anniversary of the date of the most

24-27    recent election disapproving the project or category of projects.

24-28          (a-4)  In this section:

24-29                (1)  "Related infrastructure" has the meaning assigned

24-30    by Section 334.001, Local Government Code.

24-31                (2)  "Sports venue" means an arena, coliseum, stadium,

24-32    or other type of area or facility that is primarily used or is

24-33    planned for primary use for one or more professional or amateur

24-34    sports or athletics events and for which a fee for admission to the

24-35    sports or athletics events, other than occasional civic,

24-36    charitable, or promotional events, is charged or is planned to be

24-37    charged.  The term does not include an arena, coliseum, stadium, or

24-38    other type of area or facility that is or will be owned and

24-39    operated by a state-supported institution of higher education.

24-40          SECTION 4.  Subchapter F, Chapter 321, Tax Code, is amended

24-41    by adding Section 321.508 to read as follows:

24-42          Sec. 321.508.  PLEDGE OF TAX REVENUE.  (a)  A municipality

24-43    may call and hold an election on the issue of authorizing the

24-44    municipality to pledge  a percentage of the sales and use tax

24-45    revenue received under Section 321.101(a) or (b), or both, to the

24-46    payment of obligations issued to pay all or part of the costs of

24-47    one or more sports and community venue projects located in the

24-48    municipality.

24-49          (b)  The ballot at the election under this section must be

24-50    printed to permit voting for or against the proposition:

24-51    "Authorizing the City of ______ (insert name of municipality) to

24-52    pledge not more than ______ percent (insert percentage not to

24-53    exceed 25 percent) of the revenue received from the _________

24-54    (insert municipal sales and use tax, additional municipal sales and

24-55    use tax, or both) previously adopted in the city to the payment of

24-56    obligations issued to pay all or part of the costs of _________

24-57    (insert description of  each sports and community venue project)."

24-58          (c)  If a majority of the voters vote in favor of the

24-59    proposition, the municipality may:

24-60                (1)  issue bonds, notes, or other obligations that are

24-61    payable from the pledged revenues to pay for all or part of the

24-62    costs of the sports and community venue project or projects

24-63    described in the proposition; and

24-64                (2)  set aside the portion of the revenue approved at

24-65    the election that the municipality actually receives and pledge

24-66    that revenue as security for the payment of the bonds, notes, or

24-67    other obligations.

24-68          (d)  If the municipality pledges revenue under Subsection

24-69    (c), the pledge and security interest shall continue while the

 25-1    bonds, notes, or obligations, including refunding obligations, are

 25-2    outstanding and unpaid.

 25-3          (e)  The municipality may direct the comptroller to deposit

 25-4    the pledged revenue to a trust or account as may be required to

 25-5    obtain the financing and to protect the related security interest.

 25-6          (f)  Sections 321.506 and 321.507 do not apply to taxes

 25-7    pledged under this section.

 25-8          (g)  In this section, "sports and community venue project"

 25-9    has the meaning assigned by Section 334.001, Local Government Code.

25-10          SECTION 5.  The changes in law made by this Act do not apply

25-11    to the use of tax revenue pledged to secure bonds issued before the

25-12    effective  date of this Act.  Tax revenue pledged to secure bonds

25-13    issued before the effective date of this Act is governed by the law

25-14    in effect on the date the bonds were issued, and that law is

25-15    continued in effect for that purpose.

25-16          SECTION 6.  (a)  This Act does not affect the authority of:

25-17                (1)  a municipality that created an industrial

25-18    development corporation under Section 4A or 4B, Development

25-19    Corporation Act of 1979 (Article 5190.6, Vernon's Texas Civil

25-20    Statutes), before the effective date of this Act to continue to

25-21    collect any tax authorized for the benefit of the corporation

25-22    before that date; or

25-23                (2)  an industrial development corporation described by

25-24    Subdivision (1) to continue a project or category of projects

25-25    authorized for the corporation before the effective date of this

25-26    Act that the corporation had begun before that date.

25-27          (b)  A tax collected under Subsection (a)(1) of this section

25-28    or a project continued under Subsection (a)(2) of this section is

25-29    subject to the same restrictions applicable under Sections 4A and

25-30    4B, Development Corporation Act of 1979 (Article 5190.6, Vernon's

25-31    Texas Civil Statutes), as those sections existed immediately before

25-32    the effective date of this Act, and that law is continued in effect

25-33    for that purpose.

25-34          SECTION 7.  Notwithstanding any other provision of Chapter

25-35    334 or 335, Local Government Code, as added by this Act, an

25-36    election to approve a sports and community venue project, to

25-37    approve a method of financing for the venue project, other than the

25-38    imposition of a sales and use tax or a facility use tax, or to

25-39    create a sports and community venue district in a specific county

25-40    or municipality is not necessary if, at an election held before the

25-41    effective date of this Act, the voters of that county, or of the

25-42    county in which the municipality or district is primarily located,

25-43    authorized the establishment and operation of new or renovated

25-44    stadiums, arenas, or other facilities for professional sports

25-45    teams.  This section:

25-46                (1)  negates the necessity of an election only for the

25-47    type of venue project approved at the previous election; and

25-48                (2)  does not negate the necessity of an election for

25-49    approval of the imposition of a sales and use tax or a facility use

25-50    tax to finance a venue project.

25-51          SECTION 8.  Notwithstanding any other provision of Chapter

25-52    334 or 335, Local Government Code, as added by this Act, a

25-53    municipality, county, or venue district is not required to obtain

25-54    from the comptroller a determination of state fiscal impact if, at

25-55    an election held before the effective date of this Act, the voters

25-56    of that county, or of the county in which the municipality or

25-57    district is primarily located, authorized the establishment and

25-58    operation of new or renovated stadiums, arenas, or other facilities

25-59    for professional sports teams.  This section negates the necessity

25-60    of a comptroller determination only for the type of venue project

25-61    approved at the previous election.

25-62          SECTION 9.  All acts or proceedings authorized or undertaken

25-63    by a sports and community venue district or by a county or

25-64    municipality that created the district that were undertaken before

25-65    the effective date of this Act, including acts or proceedings to

25-66    create the district, are validated and confirmed in all respects,

25-67    provided that the validation and confirmation do not apply to an

25-68    act or proceeding that is subject to litigation that is pending on

25-69    the effective date of this Act.

 26-1          SECTION 10.  If any provision of this Act or its application

 26-2    to any person or circumstance is held invalid, the invalidity does

 26-3    not affect other provisions or applications of this Act that can be

 26-4    given effect without the invalid provision or application, and to

 26-5    this end the provisions of this Act are severable.

 26-6          SECTION 11.  The importance of this legislation and the

 26-7    crowded condition of the calendars in both houses create an

 26-8    emergency and an imperative public necessity that the

 26-9    constitutional rule requiring bills to be read on three several

26-10    days in each house be suspended, and this rule is hereby suspended,

26-11    and that this Act take effect and be in force from and after its

26-12    passage, and it is so enacted.

26-13                                 * * * * *