By: Madla, et al. S.B. No. 935 A BILL TO BE ENTITLED AN ACT 1-1 relating to the financing of community venues and related 1-2 infrastructure in certain municipalities or counties; authorizing 1-3 the imposition of certain local taxes and the issuance of local 1-4 bonds; providing penalties. 1-5 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: 1-6 SECTION 1. Subtitle C, Title 10, Local Government Code, is 1-7 amended by adding Chapters 334 and 335 to read as follows: 1-8 CHAPTER 334. COMMUNITY VENUES 1-9 SUBCHAPTER A. GENERAL PROVISIONS 1-10 Sec. 334.001. DEFINITIONS. In this chapter: 1-11 (1) "Approved community venue project" means a 1-12 community venue project that has been approved under this chapter 1-13 by the voters of a municipality or county. 1-14 (2) "Governing body" means the governing body of a 1-15 municipality or the commissioners court of a county. 1-16 (3) "Related infrastructure" means any store, 1-17 restaurant, concession, automobile parking facility, area 1-18 transportation facility, road, street, water or sewer facility, or 1-19 other on-site or off-site improvement that relates to and enhances 1-20 the use, value, or appeal of a community venue and any other 1-21 expenditure reasonably necessary to construct, improve, renovate, 1-22 or expand a community venue. 1-23 (4) "Community venue" means an arena, coliseum, 2-1 stadium, or other type of area or facility for which a fee for 2-2 admission to the community events, athletic events, rodeos, 2-3 livestock shows, agricultural expositions, and other civic, 2-4 charitable, or promotional events is charged or is planned to be 2-5 charged. 2-6 (5) "Community venue project" means a community venue 2-7 and related infrastructure that is planned, acquired, established, 2-8 developed, constructed, or renovated under this chapter. 2-9 Sec. 334.002. APPLICATION OF CHAPTER. (a) Except as 2-10 provided by Subsection (b), this chapter applies only to: 2-11 (1) a county with a population of less than 1.5 2-12 million; and 2-13 (2) a municipality located in a county described by 2-14 Subdivision (1). 2-15 (b) This chapter does not apply to a municipality with a 2-16 population of more than 500,000 that is situated in a county 2-17 bordering the United Mexican States and that has an athletic event, 2-18 as defined by Section 326.001, Tax Code, located within the 2-19 municipality's boundaries. 2-20 Sec. 334.003. APPLICATION TO COMMUNITY VENUE CONSTRUCTED 2-21 UNDER OTHER LAW. A county or municipality may use this chapter for 2-22 a community venue project relating to a community venue and related 2-23 infrastructure planned, acquired, established, developed, 2-24 constructed, or renovated under other law, including Section 4B, 2-25 Development Corporation Act of 1979 (Article 5190.6, Vernon's Texas 3-1 Civil Statutes), or Subchapter E, Chapter 451, Transportation Code. 3-2 Sec. 334.004. OTHER USES OF COMMUNITY VENUE PERMITTED. This 3-3 chapter does not prohibit the use of a community venue for an event 3-4 that is not related to sports or athletics, such as a 3-5 community-related event, including a rodeo, livestock show, 3-6 agricultural exposition, public school event, or other promotional 3-7 or entertainment event. 3-8 (Sections 334.005-334.020 reserved for expansion 3-9 SUBCHAPTER B. COMMUNITY VENUE PROJECTS 3-10 Sec. 334.021. RESOLUTION AUTHORIZING PROJECT. (a) A county 3-11 or municipality by resolution may provide for the planning, 3-12 acquisition, establishment, development, construction, or 3-13 renovation of a community venue project if: 3-14 (1) the comptroller determines under Section 334.022 3-15 or 334.023 that the implementation of the resolution will not have 3-16 a negative fiscal impact on state revenue; and 3-17 (2) the resolution is approved by a majority of the 3-18 qualified voters of the municipality or county voting at an 3-19 election called and held for that purpose under Section 334.024. 3-20 (b) The resolution must designate the community venue 3-21 project and each method of financing authorized by this chapter 3-22 that the municipality or county wants to use to finance the 3-23 project. A resolution may designate more than one method of 3-24 financing. 3-25 Sec. 334.022. STATE FISCAL IMPACT ANALYSIS. (a) Before 4-1 calling an election on the resolution under Section 334.024, the 4-2 municipality or county shall send a copy of the resolution to the 4-3 comptroller. 4-4 (b) Before the 15th day after the date the comptroller 4-5 receives the copy of the resolution, the comptroller shall: 4-6 (1) perform an analysis to determine if approval and 4-7 implementation of the resolution will have a negative fiscal impact 4-8 on state revenue; and 4-9 (2) provide to the municipality or county written 4-10 notice of the results of the analysis. 4-11 (c) If the comptroller does not complete the analysis and 4-12 provide the notice before the 15th day after the date the 4-13 comptroller receives the copy of the resolution, the comptroller is 4-14 considered to have determined that approval and implementation of 4-15 the resolution will not have a negative fiscal impact on state 4-16 revenue. 4-17 Sec. 334.023. APPEAL OF COMPTROLLER DETERMINATION. (a) If 4-18 the comptroller determines under Section 334.022 that 4-19 implementation of the resolution will have a negative fiscal impact 4-20 on state revenue, the municipality or county may: 4-21 (1) contest the finding by filing an appeal with the 4-22 comptroller not later than the 10th day after the date the 4-23 municipality or county receives the written notice under Section 4-24 334.022; or 4-25 (2) ask the comptroller to provide information on how 5-1 to change the resolution so that implementation will not have a 5-2 negative fiscal impact on state revenue. 5-3 (b) Before the 11th day after the date the comptroller 5-4 receives the appeal or request for information under Subsection 5-5 (a), the comptroller shall, as appropriate: 5-6 (1) perform a new analysis to determine if 5-7 implementation of the resolution will have a negative fiscal impact 5-8 on state revenue and provide to the municipality or county written 5-9 notice of the results of the analysis; or 5-10 (2) provide to the municipality or county written 5-11 information on how to change the resolution so that implementation 5-12 will not have a negative fiscal impact on state revenue. 5-13 (c) If the comptroller determines that implementation will 5-14 have a negative fiscal impact on state revenue, the written 5-15 analysis required under Subsection (b)(1) must include information 5-16 on how to change the resolution so that implementation will not 5-17 have a negative fiscal impact on state revenue. 5-18 (d) If the comptroller does not comply with Subsection (b) 5-19 before the 11th day after the date the comptroller receives the 5-20 appeal or request for information, the comptroller is considered to 5-21 have determined that approval and implementation of the resolution 5-22 will not have a negative fiscal impact on state revenue. 5-23 Sec. 334.024. ELECTION. (a) If the comptroller determines 5-24 under Section 334.022 or 334.023 that the implementation of the 5-25 resolution will not have a negative fiscal impact on state revenue, 6-1 the governing body of the municipality or county may order an 6-2 election on the question of approving and implementing the 6-3 resolution. 6-4 (b) The order calling the election must: 6-5 (1) allow the voters to vote separately on each 6-6 community venue project; 6-7 (2) designate the community venue project; 6-8 (3) designate each method of financing authorized by 6-9 this chapter that the municipality or county wants to use to 6-10 finance the project and the maximum rate of each method; and 6-11 (4) allow the voters to vote, in the same proposition 6-12 or in separate propositions, on each method of financing authorized 6-13 by this chapter that the municipality or county wants to use to 6-14 finance the project and the maximum rate of each method. 6-15 (c) The order calling the election may also allow the voters 6-16 to vote, in the same proposition or in separate propositions, on 6-17 one or more other unrelated projects proposed by the municipality 6-18 or county, including a project authorized by Section 4A or 4B, 6-19 Development Corporation Act of 1979 (Article 5190.6, Vernon's Texas 6-20 Civil Statutes), or a water, road, or sewer project. 6-21 (d) The ballot at the election held under this section must 6-22 be printed to permit voting for or against the proposition: 6-23 "Authorizing ________ (insert name of municipality or county) to 6-24 _______ (insert description of community venue project) and to 6-25 impose a ________ tax at the rate of ________ (insert the type of 7-1 tax and the maximum rate of the tax) for the purpose of financing 7-2 the community venue project." 7-3 (e) If more than one method of financing is to be voted on 7-4 in one proposition, the ballot must be printed to permit voting for 7-5 or against the proposition: "Authorizing ________ (insert name of 7-6 municipality or county) to ________ (insert description of 7-7 community venue project) and to impose a ________ tax at the rate 7-8 of _______ (insert each type of tax and the maximum rate of each 7-9 tax) for the purpose of financing the community venue project." 7-10 (f) If a community venue project and one or more unrelated 7-11 projects are to be voted on in the same proposition in accordance 7-12 with Subsection (c), the applicable ballot language required by 7-13 Subsection (d) or (e) must be modified as necessary to allow for a 7-14 vote on all the projects. 7-15 (g) The Election Code governs an election held under this 7-16 chapter, except that the uniform election date provisions of 7-17 Section 41.001(a), Election Code, do not apply to an election 7-18 ordered under this section. 7-19 (Sections 334.025-334.040 reserved for expansion 7-20 SUBCHAPTER C. POWERS AND DUTIES 7-21 Sec. 334.041. GENERAL POWERS. (a) A municipality or county 7-22 may perform any act necessary to the full exercise of the 7-23 municipality's or county's powers under this chapter. 7-24 (b) A municipality or county may acquire, sell, lease, 7-25 convey, or otherwise dispose of property or an interest in 8-1 property, including an approved community venue project, under 8-2 terms and conditions determined by the municipality or county. 8-3 (c) A municipality or county may contract with a public or 8-4 private person, including a sports team, club, organization, or 8-5 other entity to: 8-6 (1) plan, acquire, establish, develop, construct, or 8-7 renovate an approved community venue project; or 8-8 (2) perform any other act the municipality or county 8-9 is authorized to perform under this chapter. 8-10 (d) If a municipality or county contracts with a sports team 8-11 or club for the construction, renovation, or operation of an 8-12 approved community venue project, the municipality or county is not 8-13 a party to a subsequent contract between the team or club and 8-14 another person relating to the project. The competitive bidding 8-15 laws, including Chapter 271, do not apply to a contract between a 8-16 team or club and another person under this subsection. 8-17 Sec. 334.042. COMMUNITY VENUE PROJECT FUND. (a) A 8-18 municipality or county in which an approved community venue project 8-19 is located shall establish by resolution a fund known as the 8-20 community venue project fund. 8-21 (b) The municipality or county shall deposit into the 8-22 community venue project fund: 8-23 (1) the proceeds of any tax imposed by the 8-24 municipality or county under this chapter; 8-25 (2) all revenue from the sale of bonds or other 9-1 obligations by the municipality or county under this chapter; and 9-2 (3) any other money required by law to be deposited in 9-3 the fund. 9-4 (c) The municipality or county may deposit into the 9-5 community venue project fund: 9-6 (1) money derived from innovative funding concepts 9-7 such as the sale or lease of luxury boxes or the sale of licenses 9-8 for personal seats; and 9-9 (2) any other revenue derived from the approved 9-10 community venue project, including stadium rental payments and 9-11 revenue from concessions and parking. 9-12 (d) The municipality or county may use money in the 9-13 community venue project fund only to: 9-14 (1) pay the costs of planning, acquiring, 9-15 establishing, developing, constructing, or renovating one or more 9-16 approved community venue projects in the municipality or county; 9-17 (2) pay the principal of, interest on, and other costs 9-18 relating to bonds or other obligations issued by the municipality 9-19 or county or to refund bonds, notes, or other obligations; or 9-20 (3) pay the costs of operating or maintaining one or 9-21 more approved community venue projects during the planning, 9-22 acquisition, establishment, development, construction, or 9-23 renovation or while bonds, notes, or other obligations for the 9-24 planning, acquisition, establishment, development, construction, or 9-25 renovation are outstanding. 10-1 (e) Money deposited into the community venue project fund, 10-2 including money deposited under Subsection (c), is the property of 10-3 the municipality or county depositing the money. 10-4 Sec. 334.043. BONDS AND OTHER OBLIGATIONS. (a) A 10-5 municipality or county in which an approved community venue project 10-6 is located may issue bonds, including revenue bonds and refunding 10-7 bonds, or other obligations to pay the costs of the approved 10-8 community venue project. 10-9 (b) The bonds or other obligations and the proceedings 10-10 authorizing the bonds or other obligations shall be submitted to 10-11 the attorney general for review and approval as required by Article 10-12 3, Chapter 53, Acts of the 70th Legislature, 2nd Called Session, 10-13 1987 (Article 717k-8, Vernon's Texas Civil Statutes). 10-14 (c) The bonds or other obligations must be payable from and 10-15 secured by the revenue in the community venue project fund. 10-16 (d) The bonds or other obligations may mature serially or 10-17 otherwise not more than 30 years from their date of issuance. 10-18 (e) The bonds or other obligations are not a debt of and do 10-19 not create a claim for payment against the revenue or property of 10-20 the municipality or county other than an approved community venue 10-21 project for which the bonds are issued. 10-22 Sec. 334.044. PUBLIC PURPOSE OF PROJECT. (a) The 10-23 legislature finds for all constitutional and statutory purposes 10-24 that an approved community venue project is owned, used, and held 10-25 for public purposes by the municipality or county. 11-1 (b) Section 25.07(a), Tax Code, does not apply to a 11-2 leasehold or other possessory interest granted by the municipality 11-3 or county while the municipality or county owns the project. 11-4 (c) The project is exempt from taxation under Section 11.11, 11-5 Tax Code, while the municipality or county owns the project. 11-6 (Sections 334.045-334.080 reserved for expansion 11-7 SUBCHAPTER D. SALES AND USE TAX 11-8 Sec. 334.081. SALES AND USE TAX. (a) A municipality by 11-9 ordinance or a county by order may impose a sales and use tax under 11-10 this subchapter. 11-11 (b) A municipality by ordinance or a county by order may 11-12 repeal or decrease the rate of a tax imposed under this subchapter. 11-13 (c) A municipality or county may impose a tax under this 11-14 subchapter only if: 11-15 (1) an approved community venue project is or is 11-16 planned to be located in the municipality or county; and 11-17 (2) the tax is approved at an election held under 11-18 Section 334.024. 11-19 Sec. 334.082. TAX CODE APPLICABLE. (a) Chapter 321, Tax 11-20 Code, governs the imposition, computation, administration, 11-21 collection, and remittance of a municipal tax authorized under this 11-22 subchapter except as inconsistent with this subchapter. 11-23 (b) Chapter 323, Tax Code, governs the imposition, 11-24 computation, administration, collection, and remittance of a county 11-25 tax authorized under this subchapter except as inconsistent with 12-1 this subchapter. 12-2 Sec. 334.083. TAX RATE. (a) The rate of a tax adopted 12-3 under this subchapter must be one-eighth, one-fourth, 12-4 three-eighths, or one-half of one percent. 12-5 (b) The ballot proposition at the election held to adopt the 12-6 tax must specify the rate of the tax to be adopted. 12-7 Sec. 334.084. RATE INCREASE. (a) A municipality or county 12-8 that has adopted a sales and use tax under this subchapter at a 12-9 rate of less than one-half of one percent may by ordinance or order 12-10 increase the rate of the tax if the increase is approved by a 12-11 majority of the registered voters of the municipality or county 12-12 voting at an election called and held for that purpose. 12-13 (b) The tax may be increased under Subsection (a) in one or 12-14 more increments of one-eighth of one percent to a maximum of 12-15 one-half of one percent. 12-16 (c) The ballot for an election to increase the tax shall be 12-17 printed to permit voting for or against the proposition: "The 12-18 adoption of a sales and use tax for the purpose of financing 12-19 ___________________ (insert description of community venue project) 12-20 at the rate of ______ (insert one-fourth, three-eighths, or 12-21 one-half, as appropriate) of one percent." 12-22 Sec. 334.085. IMPOSITION IN MUNICIPALITY OR COUNTY WITH 12-23 TRANSIT AUTHORITY. (a) If a municipality or county is included 12-24 within the boundaries of a rapid transit authority created under 12-25 Chapter 451, Transportation Code, or a regional transportation 13-1 authority created under Chapter 452, Transportation Code, and the 13-2 adoption or increase of the tax under this subchapter would result 13-3 in a combined tax rate of more than two percent in any location in 13-4 the municipality or county, the election to approve or increase the 13-5 tax under this chapter is to be treated for all purposes as an 13-6 election to reduce the tax rate of the transit or transportation 13-7 authority to the highest rate that will not result in a combined 13-8 tax rate of more than two percent in any location in the 13-9 municipality or county. 13-10 (b) The rate of the tax imposed by a rapid transit authority 13-11 under Chapter 451, Transportation Code, or by a regional 13-12 transportation authority under Chapter 452, Transportation Code, is 13-13 increased without further action of the board of the authority or 13-14 the voters of the authority, municipality, or county on the date on 13-15 which the tax imposed under this subchapter is decreased or 13-16 expires, but only to the extent that any tax imposed by the 13-17 authority was reduced under this section when the tax imposed by 13-18 the county was adopted or increased. 13-19 (c) This section does not permit an authority to impose 13-20 taxes at different rates within the territory of the authority. 13-21 Sec. 334.086. IMPOSITION OF TAX. (a) If the municipality 13-22 or county adopts a tax under this subchapter, a tax is imposed on 13-23 the receipts from the sale at retail of taxable items in the 13-24 municipality or county at the rate approved at the election. 13-25 (b) There is also imposed an excise tax on the use, storage, 14-1 or other consumption in the municipality or county of tangible 14-2 personal property purchased, leased, or rented from a retailer 14-3 during the period that the tax is effective in the municipality or 14-4 county. The rate of the excise tax is the same as the rate of the 14-5 sales tax portion of the tax and is applied to the sale price of 14-6 the tangible personal property. 14-7 Sec. 334.087. EFFECTIVE DATE OF TAX. The adoption of a tax 14-8 or the change of the tax rate under this subchapter takes effect on 14-9 the first day of the first calendar quarter occurring after the 14-10 expiration of the first complete quarter occurring after the date 14-11 on which the comptroller receives a notice of the results of the 14-12 election adopting or increasing the tax or of the ordinance or 14-13 order decreasing the tax. 14-14 Sec. 334.088. DEPOSIT OF TAX REVENUES. Revenue from the tax 14-15 imposed under this subchapter shall be deposited in the community 14-16 venue project fund of the municipality or county imposing the tax. 14-17 Sec. 334.089. ABOLITION OF TAX. (a) A sales and use tax 14-18 imposed under this subchapter may not be collected after the last 14-19 day of the first calendar quarter occurring after notification to 14-20 the comptroller by the municipality or county that the municipality 14-21 or county has abolished the tax or that all bonds or other 14-22 obligations of the municipality or county that are payable in whole 14-23 or in part from money in the community venue project fund, 14-24 including any refunding bonds or other obligations, have been paid 14-25 in full or the full amount of money, exclusive of guaranteed 15-1 interest, necessary to pay in full the bonds and other obligations 15-2 has been set aside in a trust account dedicated to the payment of 15-3 the bonds and other obligations. 15-4 (b) The municipality or county shall notify the comptroller 15-5 of the expiration of the tax not later than the 60th day before the 15-6 expiration date. 15-7 (Sections 334.090-334.100 reserved for expansion 15-8 SUBCHAPTER E. SHORT-TERM MOTOR VEHICLE RENTAL TAX 15-9 Sec. 334.101. DEFINITIONS. (a) In this subchapter: 15-10 (1) "Motor vehicle" means a self-propelled vehicle 15-11 designed principally to transport persons or property on a public 15-12 roadway and includes a passenger car, van, station wagon, sport 15-13 utility vehicle, and truck. The term does not include a: 15-14 (A) trailer, semitrailer, house trailer, truck 15-15 having a manufacturer's rating of more than one-half ton, or 15-16 road-building machine; 15-17 (B) device moved only by human power; 15-18 (C) device used exclusively on stationary rails 15-19 or tracks; 15-20 (D) farm machine; or 15-21 (E) mobile office. 15-22 (2) "Place of business of the owner" means an 15-23 established outlet, office, or location operated by the owner of a 15-24 motor vehicle or the owner's agent or employee for the purpose of 15-25 renting motor vehicles and includes any location at which three or 16-1 more rentals are made during a year. 16-2 (3) "Rental" means an agreement by the owner of a 16-3 motor vehicle to authorize for not longer than 30 days the 16-4 exclusive use of that vehicle to another for consideration. 16-5 (b) Except as provided by Subsection (a), words used in this 16-6 subchapter and defined by Chapter 152, Tax Code, have the meanings 16-7 assigned by Chapter 152, Tax Code. 16-8 Sec. 334.102. TAX AUTHORIZED. (a) A municipality by 16-9 ordinance or a county by order may impose a tax on the gross rental 16-10 receipts from the rental in the municipality or county of a motor 16-11 vehicle. 16-12 (b) A municipality by ordinance or a county by order may 16-13 repeal or decrease the rate of a tax imposed under Subsection (a). 16-14 (c) A municipality or county may impose a tax under this 16-15 subchapter only if: 16-16 (1) an approved community venue project is or is 16-17 planned to be located in the municipality or county; and 16-18 (2) the tax is approved at an election held under 16-19 Section 334.024. 16-20 Sec. 334.103. SHORT-TERM RENTAL TAX. (a) The tax 16-21 authorized by this subchapter is imposed at a rate in increments of 16-22 one-eighth of one percent, not to exceed 10 percent, on the gross 16-23 rental receipts from the rental in the municipality or county of a 16-24 motor vehicle. 16-25 (b) The ballot proposition at the election held to adopt the 17-1 tax must specify the maximum rate of the tax to be adopted. 17-2 Sec. 334.104. RATE INCREASE. (a) A municipality or county 17-3 that has adopted a tax under this subchapter at a rate of less than 17-4 10 percent may by ordinance or order increase the rate of the tax 17-5 to a maximum of 10 percent if the increase is approved by a 17-6 majority of the registered voters of that municipality or county 17-7 voting at an election called and held for that purpose. 17-8 (b) The ballot for an election to increase the rate of the 17-9 tax shall be printed to permit voting for or against the 17-10 proposition: "The increase of the motor vehicle rental tax for the 17-11 purpose of financing _____ (insert description of community venue 17-12 project) to a maximum rate of _______ percent (insert new maximum 17-13 rate not to exceed 10 percent)." 17-14 Sec. 334.105. COMPUTATION OF TAX. (a) The owner of a motor 17-15 vehicle subject to the tax imposed under this subchapter shall 17-16 collect the tax for the benefit of the municipality or county. 17-17 (b) The owner shall add the short-term motor vehicle rental 17-18 tax imposed by the municipality or county under this subchapter, if 17-19 applicable, and the gross rental receipts tax imposed by Chapter 17-20 152, Tax Code, to the rental charge, and the sum of the taxes is a 17-21 part of the rental charge, is a debt owed to the motor vehicle 17-22 owner by the person renting the vehicle, and is recoverable at law 17-23 in the same manner as the rental charge. 17-24 Sec. 334.106. CONSUMMATION OF RENTAL. A rental of a motor 17-25 vehicle occurs in the municipality or county in which transfer of 18-1 possession of the motor vehicle occurs. 18-2 Sec. 334.107. SHORT-TERM TAX INAPPLICABLE WHEN NO STATE TAX. 18-3 The tax authorized by this subchapter does not apply to the gross 18-4 receipts from the rental of a motor vehicle unless the tax imposed 18-5 by Chapter 152, Tax Code, also applies to the rental. 18-6 Sec. 334.108. EXEMPTIONS APPLICABLE. The exemptions 18-7 provided by Subchapter E, Chapter 152, Tax Code, apply to the tax 18-8 authorized by this subchapter. 18-9 Sec. 334.109. NOTICE OF TAX. Each bill or other receipt for 18-10 a rental subject to the tax imposed under this subchapter must 18-11 contain a statement in a conspicuous location stating: "_______ 18-12 (insert name of taxing municipality or county) requires that an 18-13 additional tax of ____ percent (insert rate of tax) be imposed on 18-14 each motor vehicle rental for the purpose of financing a community 18-15 venue project." 18-16 Sec. 334.110. GROSS RECEIPTS PRESUMED SUBJECT TO TAX. All 18-17 gross receipts of an owner of a motor vehicle from the rental of 18-18 the motor vehicle are presumed to be subject to the tax imposed by 18-19 this subchapter except gross receipts for which the owner has 18-20 accepted in good faith a properly completed exemption certificate. 18-21 Sec. 334.111. RECORDS. (a) The owner of a motor vehicle 18-22 used for rental purposes shall keep for four years records and 18-23 supporting documents containing information on the amount of: 18-24 (1) gross rental receipts received from the rental of 18-25 the motor vehicle; and 19-1 (2) the tax imposed under this subchapter and paid to 19-2 the municipality or county on each motor vehicle used for rental 19-3 purposes by the owner. 19-4 (b) Mileage records are not required. 19-5 Sec. 334.112. FAILURE TO KEEP RECORDS. (a) An owner of a 19-6 motor vehicle commits an offense if the owner fails to make and 19-7 retain complete records for the four-year period required by 19-8 Section 334.111. 19-9 (b) An offense under this section is a misdemeanor 19-10 punishable by a fine of not less than $25 or more than $500. 19-11 Sec. 334.113. EFFECTIVE DATE AND ENDING DATE OF TAX. (a) A 19-12 tax imposed under this subchapter or a change in the tax rate takes 19-13 effect on the date prescribed by the ordinance or order imposing 19-14 the tax or changing the rate. 19-15 (b) A municipality or county may impose a tax under this 19-16 subchapter only if the municipality or county issues bonds or other 19-17 obligations under Section 334.043. The municipality or county may 19-18 impose the tax only while those bonds or other obligations are 19-19 outstanding and unpaid. 19-20 Sec. 334.114. TAX COLLECTION; PENALTY. (a) The owner of a 19-21 motor vehicle required to collect the tax imposed under this 19-22 subchapter shall report and send the taxes collected to the 19-23 municipality or county as provided by the ordinance or order 19-24 imposing the tax. 19-25 (b) A municipality by ordinance or a county by order may 20-1 prescribe penalties, including interest charges, for failure to 20-2 keep records required by the municipality or county, to report when 20-3 required, or to pay the tax when due. 20-4 (c) The attorney acting for the municipality or county may 20-5 bring suit against a person who fails to collect a tax under this 20-6 subchapter and to pay it over to the municipality or county as 20-7 required. 20-8 Sec. 334.115. COLLECTION PROCEDURES ON PURCHASE OF MOTOR 20-9 VEHICLE RENTAL BUSINESS. (a) If the owner of a motor vehicle 20-10 rental business that makes rentals subject to the tax imposed by 20-11 this subchapter sells the business, the successor to the seller or 20-12 the seller's assignee shall withhold an amount of the purchase 20-13 price sufficient to pay the amount of tax due until the seller 20-14 provides a receipt by a person designated by the municipality or 20-15 county to provide the receipt showing that the amount has been paid 20-16 or a certificate showing that no tax is due. 20-17 (b) The purchaser of a motor vehicle rental business who 20-18 fails to withhold an amount of the purchase price as required by 20-19 this section is liable for the amount required to be withheld to 20-20 the extent of the value of the purchase price. 20-21 (c) The purchaser of a motor vehicle rental business may 20-22 request that the person designated by the municipality or county to 20-23 provide a receipt under Subsection (a) issue a certificate stating 20-24 that no tax is due or issue a statement of the amount required to 20-25 be paid before a certificate may be issued. The person designated 21-1 by the municipality or county shall issue the certificate or 21-2 statement not later than the 60th day after the date the person 21-3 receives the request. 21-4 (d) If the person designated by the municipality or county 21-5 to provide a receipt under Subsection (a) fails to issue the 21-6 certificate or statement within the period provided by Subsection 21-7 (c), the purchaser is released from the obligation to withhold the 21-8 purchase price or pay the amount due. 21-9 Sec. 334.116. REIMBURSEMENT FOR TAX COLLECTION EXPENSES. 21-10 (a) A municipality by ordinance or a county by order may permit a 21-11 person who is required to collect a tax under this subchapter to 21-12 retain a percentage of the amount collected and required to be 21-13 reported as reimbursement to the person for the costs of collecting 21-14 the tax. 21-15 (b) A municipality or county may provide that the person may 21-16 retain the amount authorized by Subsection (a) only if the person 21-17 pays the tax and files reports as required by the municipality or 21-18 county. 21-19 Sec. 334.117. DEPOSIT OF TAX REVENUE. Revenue from the tax 21-20 imposed under this subchapter shall be deposited in the community 21-21 venue project fund of the municipality or county imposing the tax. 21-22 (Sections 334.118-334.150 reserved for expansion 21-23 SUBCHAPTER F. ADMISSIONS TAX 21-24 Sec. 334.151. TAX AUTHORIZED. (a) A municipality by 21-25 ordinance or a county by order may impose a tax on each person 22-1 admitted to an event at an approved community venue project in the 22-2 municipality or county for which the municipality or county has 22-3 issued bonds to plan, acquire, establish, develop, construct, or 22-4 renovate the approved community venue project. 22-5 (b) The municipality or county may not impose the tax under 22-6 this subchapter for admission to an event at a community venue that 22-7 is not an approved community venue project or for which the 22-8 municipality or county has not issued bonds to plan, acquire, 22-9 establish, develop, construct, or renovate the approved community 22-10 venue project. 22-11 (c) A municipality or county may impose a tax under this 22-12 subchapter only if: 22-13 (1) an approved community venue project is or will be 22-14 located in the municipality or county; and 22-15 (2) the tax is approved at an election held under 22-16 Section 334.024. 22-17 Sec. 334.152. TAX RATE. (a) The tax authorized by this 22-18 subchapter is imposed at the tax rate on each person admitted. 22-19 (b) The amount of the tax may be imposed at any uniform 22-20 monetary amount not to exceed $1. The tax may not be imposed at a 22-21 percentage rate. 22-22 (c) The ballot proposition at the election held to adopt the 22-23 tax must specify the maximum rate of the tax to be adopted. 22-24 (d) The municipality by ordinance or the county by order may 22-25 repeal or decrease the rate of the tax imposed under this 23-1 subchapter. 23-2 Sec. 334.153. RATE INCREASE. (a) A municipality or county 23-3 that has adopted a tax under this subchapter at a rate of less than 23-4 $1 a person may by ordinance or order increase the rate of the tax 23-5 to a maximum of $1 a person if the increase is approved by a 23-6 majority of the registered voters of that municipality or county 23-7 voting at an election called and held for that purpose. 23-8 (b) The ballot for an election to increase the rate of the 23-9 tax shall be printed to permit voting for or against the 23-10 proposition: "The increase of the admissions tax for the purpose 23-11 of financing _______ (insert description of community venue 23-12 project) to a maximum rate of ________ a day (insert new maximum 23-13 rate not to exceed $1)." 23-14 Sec. 334.154. COLLECTION. (a) The municipality by 23-15 ordinance or the county by order may require the owner or lessee of 23-16 an approved community venue project in the municipality or county 23-17 to collect the tax for the benefit of the municipality or county. 23-18 (b) An owner or lessee required to collect the tax under 23-19 this section shall add the tax to the admissions price, and the tax 23-20 is a part of the admissions price, is a debt owed to the owner or 23-21 lessee of the approved community venue project by the person 23-22 admitted, and is recoverable at law in the same manner as the 23-23 admissions charge. 23-24 (c) The tax imposed by this subchapter is not an occupation 23-25 tax imposed on the owner or lessee of the approved community venue 24-1 project. 24-2 Sec. 334.155. EFFECTIVE DATE AND ENDING DATE OF TAX. (a) A 24-3 tax imposed under this subchapter or a change in a tax rate takes 24-4 effect on the date prescribed by the ordinance or order imposing 24-5 the tax or changing the rate. 24-6 (b) A municipality or county may impose a tax under this 24-7 subchapter only if the municipality or county issues bonds or other 24-8 obligations under Section 334.043. The municipality or county may 24-9 impose the tax only while those bonds or other obligations are 24-10 outstanding and unpaid. 24-11 Sec. 334.156. COLLECTION OF TAX. (a) A person required to 24-12 collect a tax imposed under this subchapter shall report and send 24-13 the taxes collected to the municipality or county as provided by 24-14 the municipality or county imposing the tax. 24-15 (b) A municipality by ordinance or a county by order may 24-16 prescribe penalties, including interest charges, for failure to 24-17 keep records required by the municipality or county, to report when 24-18 required, or to pay the tax when due. The attorney acting for the 24-19 municipality or county may bring suit against a person who fails to 24-20 collect a tax under this subchapter and to pay it over to the 24-21 municipality or county as required. 24-22 (c) A municipality by ordinance or a county by order may 24-23 permit a person who is required to collect a tax under this 24-24 subchapter to retain a percentage of the amount collected and 24-25 required to be reported as reimbursement to the person for the 25-1 costs of collecting the tax. The municipality or county may 25-2 provide that the person may retain the amount only if the person 25-3 pays the tax and files reports as required by the municipality or 25-4 county. 25-5 Sec. 334.157. DEPOSIT OF TAX REVENUE. Revenue from the tax 25-6 imposed under this subchapter shall be deposited in the community 25-7 venue project fund of the municipality or county imposing the tax. 25-8 (Sections 334.158-334.200 reserved for expansion 25-9 SUBCHAPTER G. PARKING TAX 25-10 Sec. 334.201. EVENT PARKING TAX. (a) A municipality by 25-11 ordinance or a county by order may impose a tax on each motor 25-12 vehicle parking in a parking facility of an approved community 25-13 venue project. 25-14 (b) The municipality or county may impose the tax during a 25-15 period beginning not more than three hours before and ending not 25-16 more than three hours after the time an event in an approved 25-17 community venue project is scheduled to begin. The municipality or 25-18 county may not impose the tax under this subchapter during any 25-19 other time. 25-20 (c) A municipality or county may impose a tax under this 25-21 subchapter only if the tax is approved at an election held under 25-22 Section 334.024. 25-23 Sec. 334.202. TAX RATE. (a) The municipality by ordinance 25-24 or the county by order may provide that the tax is imposed at a 25-25 flat amount on each parked motor vehicle or is imposed as a 26-1 percentage of the amount charged for event parking by the owner of 26-2 the parking facility. 26-3 (b) Regardless of the method of imposition, the amount of 26-4 the tax may not exceed 50 cents for each motor vehicle. 26-5 (c) The ballot proposition at the election held to adopt the 26-6 tax must specify the maximum rate of the tax to be adopted. 26-7 (d) The municipality by ordinance or the county by order may 26-8 repeal or decrease the rate of the tax imposed under this section. 26-9 Sec. 334.203. RATE INCREASE. (a) A municipality or county 26-10 that has adopted a tax under this subchapter at a rate of less than 26-11 50 cents a vehicle may by ordinance or order increase the rate of 26-12 the tax to a maximum of 50 cents a vehicle if the increase is 26-13 approved by a majority of the registered voters of that 26-14 municipality or county voting at an election called and held for 26-15 that purpose. 26-16 (b) The ballot for an election to increase the rate of the 26-17 tax shall be printed to permit voting for or against the 26-18 proposition: "The increase of the parking tax for the purpose of 26-19 financing _______ (insert description of community venue project) 26-20 to a maximum rate of _______ (insert new maximum rate not to exceed 26-21 50 cents)." 26-22 Sec. 334.204. COLLECTION. (a) The municipality by 26-23 ordinance or the county by order may require the owner or lessee of 26-24 a parking facility to collect the tax for the benefit of the 26-25 municipality or county. 27-1 (b) An owner or lessee required to collect the tax under 27-2 this section shall add the tax to the parking charge, and the tax 27-3 is a part of the parking charge, is a debt owed to the parking 27-4 facility owner or lessee by the person parking, and is recoverable 27-5 at law in the same manner as the parking charge. 27-6 (c) The tax imposed by this subchapter is not an occupation 27-7 tax imposed on the owner or lessee of the parking facility. 27-8 Sec. 334.205. EFFECTIVE DATE AND ENDING DATE OF TAX. (a) A 27-9 tax imposed under this subchapter or a change in the tax rate takes 27-10 effect on the date prescribed by the ordinance or order imposing 27-11 the tax or changing the rate. 27-12 (b) A municipality or county may impose a tax under this 27-13 subchapter only if the municipality or county issues bonds or other 27-14 obligations under Section 334.043. The municipality or county may 27-15 impose the tax only while those bonds or other obligations are 27-16 outstanding and unpaid. 27-17 Sec. 334.206. COLLECTION OF TAX. (a) A person required to 27-18 collect a tax imposed under this subchapter shall report and send 27-19 the taxes collected to the municipality or county as provided by 27-20 the municipality or county imposing the tax. 27-21 (b) A municipality by ordinance or a county by order may 27-22 prescribe penalties, including interest charges, for failure to 27-23 keep records required by the municipality or county, to report when 27-24 required, or to pay the tax when due. The attorney acting for the 27-25 municipality or county may bring suit against a person who fails to 28-1 collect a tax under this subchapter and to pay it over to the 28-2 municipality or county as required. 28-3 (c) A municipality by ordinance or a county by order may 28-4 permit a person who is required to collect a tax under this 28-5 subchapter to retain a percentage of the amount collected and 28-6 required to be reported as reimbursement to the person for the 28-7 costs of collecting the tax. The municipality or county may 28-8 provide that the person may retain the amount only if the person 28-9 pays the tax and files reports as required by the municipality or 28-10 county. 28-11 Sec. 334.207. DEPOSIT OF TAX REVENUE. Revenue from the tax 28-12 imposed under this subchapter shall be deposited in the community 28-13 venue project fund of the municipality or county imposing the tax. 28-14 CHAPTER 335. COMMUNITY VENUE DISTRICTS 28-15 SUBCHAPTER A. GENERAL PROVISIONS 28-16 Sec. 335.001. DEFINITIONS. In this chapter: 28-17 (1) "Approved community venue project" has the meaning 28-18 assigned by Section 334.001, except that the approval of the 28-19 project must occur under this chapter. 28-20 (2) "Board" means the board of directors of a 28-21 community venue district. 28-22 (3) "District" means a community venue district 28-23 created under this chapter. 28-24 (4) "Related infrastructure" has the meaning assigned 28-25 by Section 334.001. 29-1 (5) "Community venue" has the meaning assigned by 29-2 Section 334.001. 29-3 (6) "Community venue project" has the meaning assigned 29-4 by Section 334.001, except that the actions described by that 29-5 section must occur under this chapter. 29-6 Sec. 335.002. APPLICATION OF CHAPTER. (a) Except as 29-7 provided by Subsection (b), this chapter applies only to: 29-8 (1) a county with a population of less than 1.5 29-9 million; 29-10 (2) a municipality located in a county described by 29-11 Subdivision (1); 29-12 (3) a county adjacent to a county described by 29-13 Subdivision (1); and 29-14 (4) a municipality located in a county described by 29-15 Subdivision (3). 29-16 (b) This chapter does not apply to a municipality with a 29-17 population of more than 500,000 that is situated in a county 29-18 bordering the United Mexican States and which has an athletic event 29-19 located within the municipality's boundaries. 29-20 Sec. 335.003. APPLICATION TO COMMUNITY VENUE CONSTRUCTED 29-21 UNDER OTHER LAW. A district may use this chapter for a community 29-22 venue project relating to a community venue and related 29-23 infrastructure planned, acquired, established, developed, 29-24 constructed, or renovated under other law, including Section 4B, 29-25 Development Corporation Act of 1979 (Article 5190.6, Vernon's Texas 30-1 Civil Statutes), or Subchapter E, Chapter 451, Transportation Code. 30-2 Sec. 335.004. OTHER USES OF COMMUNITY VENUE PERMITTED. This 30-3 chapter does not prohibit the use of a community venue for an event 30-4 that is not related to sports or athletics, such as a 30-5 community-related event, including a rodeo, livestock show, 30-6 agricultural exposition, public school event, or other promotional 30-7 or entertainment event. 30-8 (Sections 335.005-335.020 reserved for expansion 30-9 SUBCHAPTER B. COMMUNITY VENUE DISTRICT 30-10 Sec. 335.021. CREATION. Two or more counties, two or more 30-11 municipalities, or one or more municipalities and one or more 30-12 counties may create a community venue district under this chapter 30-13 to plan, acquire, establish, develop, construct, or renovate one or 30-14 more community venue projects in the district subject to voter 30-15 approval under Subchapter D. 30-16 Sec. 335.022. ORDER CREATING DISTRICT. Two or more 30-17 counties, two or more municipalities, or one or more municipalities 30-18 and one or more counties may create a district under this chapter 30-19 by adopting concurrent orders. The concurrent orders must: 30-20 (1) contain identical provisions; 30-21 (2) define the boundaries of the district to be 30-22 coextensive with each creating political subdivision; and 30-23 (3) designate the number of directors and the manner 30-24 of appointment in accordance with Section 335.031. 30-25 Sec. 335.023. POLITICAL SUBDIVISION; OPEN MEETINGS. (a) A 31-1 district is a political subdivision of the creating political 31-2 subdivisions and of this state. 31-3 (b) A district is subject to Chapter 551, Government Code. 31-4 (Sections 335.024-335.030 reserved for expansion) 31-5 SUBCHAPTER C. BOARD OF DIRECTORS 31-6 Sec. 335.031. COMPOSITION AND APPOINTMENT OF BOARD. (a) A 31-7 district is governed by a board of at least four directors. 31-8 (b) The board is appointed by the governing body of the 31-9 political subdivisions that create the district. Each political 31-10 subdivision is entitled to an equal number of directors. 31-11 (c) Directors serve staggered two-year terms. A director 31-12 may be removed by the appointing political subdivision at any time 31-13 without cause. Successor directors are appointed in the same 31-14 manner as the original appointees. 31-15 (d) To qualify to serve as a director, a person must be a 31-16 resident of the appointing political subdivision. An employee, 31-17 officer, or member of the governing body of the appointing 31-18 political subdivision may serve as a director but may not have a 31-19 personal interest in a contract executed by the district other than 31-20 as an employee, officer, or member of the governing body of the 31-21 political subdivision. 31-22 Sec. 335.032. COMPENSATION. A board member is not entitled 31-23 to compensation but is entitled to reimbursement for actual and 31-24 necessary expenses. 31-25 Sec. 335.033. MEETINGS. The board shall conduct its 32-1 meetings in the district. 32-2 Sec. 335.034. OFFICERS. The board shall designate from the 32-3 members of the board a presiding officer, a secretary, and other 32-4 officers the board considers necessary. 32-5 (Sections 335.035-335.050 reserved for expansion 32-6 SUBCHAPTER D. COMMUNITY VENUE PROJECTS 32-7 Sec. 335.051. RESOLUTION AUTHORIZING PROJECT. (a) A 32-8 district by resolution may provide for the planning, acquisition, 32-9 establishment, development, construction, or renovation of a 32-10 community venue project if: 32-11 (1) the comptroller determines under Section 335.052 32-12 or 335.053 that the implementation of the resolution will not have 32-13 a negative fiscal impact on state revenue; and 32-14 (2) the resolution is approved by a majority of the 32-15 qualified voters of each political subdivision that created the 32-16 district voting at separate elections called and held for that 32-17 purpose under Section 335.054. 32-18 (b) The resolution must designate the community venue 32-19 project and each method of financing authorized by this chapter 32-20 that the district wants to use to finance the project. A 32-21 resolution may designate more than one method of financing. 32-22 Sec. 335.052. STATE FISCAL IMPACT ANALYSIS. (a) Before 32-23 calling an election on the resolution under Section 335.054, the 32-24 district shall send a copy of the resolution to the comptroller. 32-25 (b) Before the 15th day after the date the comptroller 33-1 receives the copy of the resolution, the comptroller shall: 33-2 (1) perform an analysis to determine if approval and 33-3 implementation of the resolution will have a negative fiscal impact 33-4 on state revenue; and 33-5 (2) provide to the district written notice of the 33-6 results of the analysis. 33-7 (c) If the comptroller does not complete the analysis and 33-8 provide the notice before the 15th day after the date the 33-9 comptroller receives the copy of the resolution, the comptroller is 33-10 considered to have determined that approval and implementation of 33-11 the resolution will not have a negative fiscal impact on state 33-12 revenue. 33-13 Sec. 335.053. APPEAL OF COMPTROLLER DETERMINATION. (a) If 33-14 the comptroller determines under Section 335.052 that 33-15 implementation of the resolution will have a negative fiscal impact 33-16 on state revenue, the district may: 33-17 (1) contest the finding by filing an appeal with the 33-18 comptroller not later than the 10th day after the date the district 33-19 receives the written notice under Section 335.052; or 33-20 (2) ask the comptroller to provide information on how 33-21 to change the resolution so that implementation will not have a 33-22 negative fiscal impact on state revenue. 33-23 (b) Before the 11th day after the date the comptroller 33-24 receives the appeal or request for information under Subsection 33-25 (a), the comptroller shall, as appropriate: 34-1 (1) perform a new analysis to determine if 34-2 implementation of the resolution will have a negative fiscal impact 34-3 on state revenue and provide to the district written notice of the 34-4 results of the analysis; or 34-5 (2) provide to the district written information on how 34-6 to change the resolution so that implementation will not have a 34-7 negative fiscal impact on state revenue. 34-8 (c) If the comptroller determines that implementation will 34-9 have a negative fiscal impact on state revenue, the written 34-10 analysis required under Subsection (b)(1) must include information 34-11 on how to change the resolution so that implementation will not 34-12 have a negative fiscal impact on state revenue. 34-13 (d) If the comptroller does not comply with Subsection (b) 34-14 before the 11th day after the date the comptroller receives the 34-15 appeal or request for information, the comptroller is considered to 34-16 have determined that approval and implementation of the resolution 34-17 will not have a negative fiscal impact on state revenue. 34-18 Sec. 335.054. ELECTION. (a) If the comptroller determines 34-19 under Section 335.052 or 335.053 that implementation of the 34-20 resolution will not have a negative fiscal impact on state revenue, 34-21 the board may order a separate election in each political 34-22 subdivision that created the district on the question of approving 34-23 and implementing the resolution. The elections shall be held on 34-24 the same day. 34-25 (b) The order calling the elections must: 35-1 (1) allow the voters to vote separately on each 35-2 community venue project; 35-3 (2) designate the community venue project; 35-4 (3) designate each method of financing authorized by 35-5 this chapter that the district wants to use to finance the project 35-6 and the maximum rate of each method; and 35-7 (4) allow the voters to vote, in the same proposition 35-8 or in separate propositions, on each method of financing authorized 35-9 by this chapter that the district wants to use to finance the 35-10 project and the maximum rate of each method. 35-11 (c) The ballot at the elections held under this section must 35-12 be printed to permit voting for or against the proposition: 35-13 "Authorizing _________ (insert name of district) to __________ 35-14 (insert description of community venue project) and to impose a 35-15 __________ tax (insert type of tax) at the rate of ________ (insert 35-16 maximum rate) for the purpose of financing the community venue 35-17 project." 35-18 (d) If more than one method of financing is to be voted on 35-19 in one proposition, the ballot must be printed to permit voting for 35-20 or against the proposition: "Authorizing _________ (insert name of 35-21 district) to __________ (insert description of community venue 35-22 project) and to impose a __________ tax at the rate of ________ 35-23 (insert each type of tax and the maximum rate of each tax) for the 35-24 purpose of financing the community venue project." 35-25 (e) If a majority of the votes cast at the election in each 36-1 creating political subdivision approves the proposition authorizing 36-2 the project, the district may implement the resolution. If a 36-3 majority of the votes cast in one or more of the creating political 36-4 subdivisions disapproves the proposition authorizing the project, 36-5 the district may not implement the resolution. If the project is 36-6 approved but one or more financing methods contained in separate 36-7 propositions are disapproved, the district may use only the 36-8 approved financing methods. 36-9 (f) The Election Code governs an election held under this 36-10 chapter, except that the uniform election date provisions of 36-11 Section 41.001(a), Election Code, do not apply to an election 36-12 ordered under this section. 36-13 (Sections 335.055-335.070 reserved for expansion 36-14 SUBCHAPTER E. POWERS AND DUTIES 36-15 Sec. 335.071. GENERAL POWERS OF DISTRICT. (a) A district 36-16 may: 36-17 (1) perform any act necessary to the full exercise of 36-18 the district's powers; 36-19 (2) accept a grant or loan from a: 36-20 (A) department or agency of the United States; 36-21 (B) department, agency, or political subdivision 36-22 of this state; or 36-23 (C) public or private person; 36-24 (3) acquire, sell, lease, convey, or otherwise dispose 36-25 of property or an interest in property, including an approved 37-1 community venue project, under terms and conditions determined by 37-2 the district; 37-3 (4) employ necessary personnel; and 37-4 (5) adopt rules to govern the operation of the 37-5 district and its employees and property. 37-6 (b) A district may contract with a public or private person, 37-7 including a sports team, club, organization, or other entity, to: 37-8 (1) plan, acquire, establish, develop, construct, or 37-9 renovate an approved community venue project; or 37-10 (2) perform any other act the district is authorized 37-11 to perform under this chapter. 37-12 (c) If the district contracts with a sports team or club for 37-13 the construction, renovation, or operation of an approved community 37-14 venue project, the district is not a party to a subsequent contract 37-15 between the team or club and another person relating to the 37-16 project. The competitive bidding laws, including Chapter 271, do 37-17 not apply to a contract between a team or club and another person 37-18 under this subsection. 37-19 (d) A district may impose any tax a county may impose under 37-20 Chapter 334, subject to approval of the voters of the district as 37-21 prescribed by this chapter and Chapter 334. The district shall 37-22 impose the tax in the same manner as a county. 37-23 (e) A district may not levy an ad valorem tax. 37-24 Sec. 335.072. COMMUNITY VENUE PROJECT FUND. (a) A district 37-25 in which an approved community venue project is located shall 38-1 establish by resolution a fund known as the community venue project 38-2 fund. 38-3 (b) The district shall deposit into the community venue 38-4 project fund: 38-5 (1) the proceeds from any tax imposed by the district; 38-6 (2) all revenue from the sale of bonds or other 38-7 obligations by the district; 38-8 (3) money received under Section 335.075 from a 38-9 municipality that created the district; and 38-10 (4) any other money required by law to be deposited in 38-11 the fund. 38-12 (c) The district may deposit into the community venue 38-13 project fund: 38-14 (1) money derived from innovative funding concepts 38-15 such as the sale or lease of luxury boxes or the sale of licenses 38-16 for personal seats; and 38-17 (2) any other revenue derived from the approved 38-18 community venue project, including stadium rental payments and 38-19 revenue from concessions and parking. 38-20 (d) The district may use money in the community venue 38-21 project fund only to: 38-22 (1) pay the costs of planning, acquiring, 38-23 establishing, developing, constructing, or renovating one or more 38-24 approved community venue projects in the district; 38-25 (2) pay the principal of, interest on, and other costs 39-1 relating to bonds or other obligations issued by the district or to 39-2 refund bonds or other obligations; or 39-3 (3) pay the costs of operating or maintaining one or 39-4 more approved community venue projects during the planning, 39-5 acquisition, establishment, development, construction, or 39-6 renovation or while bonds or other obligations for the planning, 39-7 acquisition, establishment, development, construction, or 39-8 renovation are outstanding. 39-9 (e) Money deposited into the community venue project fund, 39-10 including money deposited under Subsection (c), is the property of 39-11 the district depositing the money. 39-12 Sec. 335.073. BONDS AND OTHER OBLIGATIONS. (a) A district 39-13 in which an approved community venue project is located may issue 39-14 bonds, including revenue bonds and refunding bonds, or other 39-15 obligations to pay the costs of the approved community venue 39-16 project. 39-17 (b) The bonds or other obligations and the proceedings 39-18 authorizing the bonds or other obligations shall be submitted to 39-19 the attorney general for review and approval as required by Article 39-20 3, Chapter 53, Acts of the 70th Legislature, 2nd Called Session, 39-21 1987 (Article 717k-8, Vernon's Texas Civil Statutes). 39-22 (c) The bonds or other obligations must be payable from and 39-23 secured by the revenue in the community venue project fund. 39-24 (d) The bonds or other obligations may mature serially or 39-25 otherwise not more than 30 years from their date of issuance. 40-1 (e) The bonds or other obligations are not a debt of and do 40-2 not create a claim for payment against the revenue or property of 40-3 the district other than an approved community venue project for 40-4 which the bonds are issued. 40-5 Sec. 335.074. PUBLIC PURPOSE OF PROJECT. (a) The 40-6 legislature finds for all constitutional and statutory purposes 40-7 that an approved community venue project is owned, used, and held 40-8 for public purposes by the district. 40-9 (b) Section 25.07(a), Tax Code, does not apply to a 40-10 leasehold or other possessory interest granted by the district 40-11 while the district owns the project. 40-12 (c) The project is exempt from taxation under Section 11.11, 40-13 Tax Code, while the district owns the project. 40-14 Sec. 335.075. DEDICATION OR GRANT OF CERTAIN REVENUE BY 40-15 CREATING MUNICIPALITY. (a) A municipality that created the 40-16 district may contribute or dedicate to the district municipal 40-17 sales and use tax revenue received by the municipality that is 40-18 generated, paid, or collected by any or all businesses operating in 40-19 an approved community venue project. 40-20 (b) The municipality may contribute or dedicate money under 40-21 this section only if the municipality determines that the approved 40-22 community venue project from which the revenue was derived will 40-23 contribute to the economic, cultural, or recreational development 40-24 or well-being of the residents of the municipality. 40-25 SECTION 2. Subtitle C, Title 3, Tax Code, is amended by 41-1 adding Chapter 326 to read as follows: 41-2 CHAPTER 326. MUNICIPAL TAX ON RENTAL OF MOTOR VEHICLE 41-3 SUBCHAPTER A. GENERAL PROVISIONS 41-4 Sec. 326.001. DEFINITIONS. (a) In this chapter: 41-5 (1) "Athletic event" means a postseason 41-6 intercollegiate athletic football bowl game for which a fee for 41-7 admission to one or more sports or athletic events is charged. 41-8 (2) "Auto rental tax fund" means the fund established 41-9 by a municipality by resolution for the deposit of the tax revenue 41-10 collected under this chapter. 41-11 (3) "Motor vehicle" means a self-propelled vehicle 41-12 designed principally to transport persons or property on a public 41-13 roadway and includes a passenger car, van, station wagon, sport 41-14 utility vehicle, and truck. The term does not include a: 41-15 (A) trailer, semitrailer, house trailer, truck 41-16 having a manufacturer's rating of more than one-half ton, or 41-17 road-building machine; 41-18 (B) device moved only by human power; 41-19 (C) device used exclusively on stationary rails 41-20 or tracks; 41-21 (D) farm machine; or 41-22 (E) mobile office. 41-23 (4) "Place of business of the owner" means an 41-24 established outlet, office, or location operated by the owner of a 41-25 motor vehicle or the owner's agent or employee for the purpose of 42-1 renting motor vehicles and includes any location at which three or 42-2 more rentals are made during a year. 42-3 (5) "Rental" means an agreement by the owner of a 42-4 motor vehicle to authorize for not longer than 30 days the 42-5 exclusive use of that vehicle to another for consideration. 42-6 (b) Except as provided by Subsection (a), words used in this 42-7 subchapter and defined by Chapter 152 have the meanings assigned by 42-8 Chapter 152. 42-9 Sec. 326.002. APPLICATION OF CHAPTER. This chapter applies 42-10 only to a municipality with a population of more than 500,000 that 42-11 is situated in a county bordering the United Mexican States and 42-12 which has an athletic event located within the municipality's 42-13 boundaries. 42-14 (Sections 326.003-326.100 reserved for expansion 42-15 SUBCHAPTER B. IMPOSITION OF GROSS RENTAL RECEIPTS TAX BY 42-16 MUNICIPALITY 42-17 Sec. 326.101. TAX AUTHORIZED. (a) A municipality by 42-18 ordinance may impose a tax on the gross rental receipts from the 42-19 rental in the municipality of a motor vehicle. 42-20 (b) A municipality by ordinance may repeal or decrease the 42-21 rate of a tax imposed under Subsection (a). 42-22 (c) A municipality may impose a tax under this chapter only 42-23 if the tax is approved at an election held under Section 326.102. 42-24 Sec. 326.102. ELECTION. (a) An election under this chapter 42-25 is called by the adoption of a resolution by the governing body of 43-1 a municipality. 43-2 (b) The governing body may call the election by a majority 43-3 vote of its members. 43-4 (c) The ballot at the election held under this section must 43-5 be printed to permit voting for or against the proposition: 43-6 "Authorizing ________ (insert name of municipality) to 43-7 establish an auto rental tax fund and to impose a tax on the gross 43-8 rental receipts from the rental of a motor vehicle at the rate of 43-9 _________ (insert the maximum rate of the tax) for the purpose of 43-10 financing athletic events." 43-11 (d) The Election Code governs an election held under this 43-12 chapter, except that the uniform election date provisions of 43-13 Section 41.001(a), Election Code, do not apply to an election 43-14 ordered under this section. 43-15 Sec. 326.103. SHORT-TERM RENTAL TAX. (a) The tax 43-16 authorized by this chapter is imposed at a rate in increments of 43-17 one-eighth of one percent, not to exceed 10 percent, on the gross 43-18 rental receipts from the rental in the municipality of a motor 43-19 vehicle. 43-20 (b) The ballot proposition at the election held to adopt the 43-21 tax must specify the maximum rate of the tax to be adopted. 43-22 Sec. 326.104. RATE INCREASE. (a) A municipality that has 43-23 adopted a tax under this chapter at a rate of less than 10 percent 43-24 may by ordinance increase the rate of the tax to a maximum of 10 43-25 percent if the increase is approved by a majority of the registered 44-1 voters of that municipality voting at an election called and held 44-2 for that purpose. 44-3 (b) The ballot for an election to increase the rate of the 44-4 tax shall be printed to permit voting for or against the 44-5 proposition: "The increase of the motor vehicle rental tax for the 44-6 purpose of financing athletic events to a maximum rate of ________ 44-7 percent (insert new maximum rate not to exceed 10 percent)." 44-8 (Sections 326.105-326.200 reserved for expansion 44-9 SUBCHAPTER C. USE OF TAX REVENUE 44-10 Sec. 326.201. AUTO RENTAL TAX FUND. (a) A municipality 44-11 shall establish by resolution a fund known as the auto rental tax 44-12 fund. 44-13 (b) The municipality shall deposit into the auto rental tax 44-14 fund the proceeds of any tax imposed by the municipality under this 44-15 chapter. 44-16 (c) The municipality may use money in the auto rental tax 44-17 fund only to collect the tax imposed by this chapter and to operate 44-18 one or more athletic events, including but not limited to paying 44-19 the costs of planning, acquiring, establishing, developing, 44-20 advertising, promoting, conducting, sponsoring, or otherwise 44-21 supporting such an event. 44-22 (Sections 326.202-326.300 reserved for expansion 44-23 SUBCHAPTER D. COMPUTATION OF TAX 44-24 Sec. 326.301. COMPUTATION OF TAX. (a) The owner of a motor 44-25 vehicle subject to the tax imposed under this chapter shall collect 45-1 the tax for the benefit of the municipality. 45-2 (b) The owner shall add the short-term motor vehicle rental 45-3 tax imposed by the municipality under this chapter, if applicable, 45-4 and the gross rental receipts tax imposed by Chapter 152 to the 45-5 rental charge, and the sum of the taxes is a part of the rental 45-6 charge, is a debt owed to the motor vehicle owner by the person 45-7 renting the vehicle, and is recoverable at law in the same manner 45-8 as the rental charge. 45-9 Sec. 326.302. CONSUMMATION OF RENTAL. A rental of a motor 45-10 vehicle occurs in the municipality in which transfer of possession 45-11 of the motor vehicle occurs. 45-12 Sec. 326.303. SHORT-TERM TAX INAPPLICABLE WHEN NO STATE TAX. 45-13 The tax authorized by this chapter does not apply to the gross 45-14 receipts from the rental of a motor vehicle unless the tax imposed 45-15 by Chapter 152 also applies to the rental. 45-16 Sec. 326.304. STATE EXEMPTIONS APPLICABLE. The exemptions 45-17 provided by Subchapter E, Chapter 152, apply to the tax authorized 45-18 by this chapter. 45-19 Sec. 326.305. GROSS RECEIPTS PRESUMED SUBJECT TO TAX. All 45-20 gross receipts of an owner of a motor vehicle from the rental of 45-21 the motor vehicle are presumed to be subject to the tax imposed by 45-22 this chapter, except for gross receipts for which the owner has 45-23 accepted in good faith a properly completed exemption certificate. 46-1 (Sections 326.306-326.400 reserved for expansion 46-2 SUBCHAPTER E. ADMINISTRATION OF TAX 46-3 Sec. 326.401. RECORDS. (a) The owner of a motor vehicle 46-4 used for rental purposes shall keep for four years records and 46-5 supporting documents containing the amount of the: 46-6 (1) gross rental receipts received from the rental of 46-7 the motor vehicle; and 46-8 (2) tax imposed under this chapter and paid to the 46-9 municipality on each motor vehicle used for rental purposes by the 46-10 owner. 46-11 (b) Mileage records are not required. 46-12 Sec. 326.402. FAILURE TO KEEP RECORDS. (a) An owner of a 46-13 motor vehicle commits an offense if the owner fails to make and 46-14 retain complete records for the four-year period required by 46-15 Section 326.401. 46-16 (b) An offense under this section is a misdemeanor 46-17 punishable by a fine of not less than $25 or more than $500. 46-18 Sec. 326.403. EFFECTIVE DATE OF TAX. A tax imposed under 46-19 this chapter or a change in the tax rate takes effect on the date 46-20 prescribed by the ordinance imposing the tax or changing the rate. 46-21 Sec. 326.404. TAX COLLECTION; PENALTY. (a) The owner of a 46-22 motor vehicle required to collect the tax imposed under this 46-23 chapter shall report and send the taxes collected to the 46-24 municipality as provided by the ordinance imposing the tax. 46-25 (b) A municipality by ordinance may prescribe penalties, 47-1 including interest charges, for failure to keep records required by 47-2 the municipality, to report when required, or to pay the tax when 47-3 due. 47-4 (c) The attorney acting for the municipality may bring suit 47-5 against a person who fails to collect a tax under this chapter and 47-6 to pay it over to the municipality as required. 47-7 Sec. 326.405. COLLECTION PROCEDURES ON PURCHASE OF MOTOR 47-8 VEHICLE RENTAL BUSINESS. (a) If the owner of a motor vehicle 47-9 rental business that makes rentals subject to the tax imposed by 47-10 this chapter sells the business, the successor to the seller or the 47-11 seller's assignee shall withhold an amount of the purchase price 47-12 sufficient to pay the amount of tax due until the seller provides a 47-13 receipt by a person designated by the municipality to provide the 47-14 receipt showing that the amount has been paid or a certificate 47-15 showing that no tax is due. 47-16 (b) The purchaser of a motor vehicle rental business who 47-17 fails to withhold an amount of the purchase price as required by 47-18 this section is liable for the amount required to be withheld to 47-19 the extent of the value of the purchase price. 47-20 (c) The purchaser of a motor vehicle rental business may 47-21 request that the person designated by the municipality to provide a 47-22 receipt under Subsection (a) issue a certificate stating that no 47-23 tax is due or issue a statement of the amount required to be paid 47-24 before a certificate may be issued. The person designated by the 47-25 municipality shall issue the certificate or statement not later 48-1 than the 60th day after the date the person receives the request. 48-2 (d) If the person designated by the municipality to provide 48-3 a receipt under Subsection (a) fails to issue the certificate or 48-4 statement within the period provided by Subsection (c), the 48-5 purchaser is released from the obligation to withhold the purchase 48-6 price or pay the amount due. 48-7 Sec. 326.406. REIMBURSEMENT FOR TAX COLLECTION EXPENSES. 48-8 (a) A municipality by ordinance or a county by order may permit a 48-9 person who is required to collect a tax under this subchapter to 48-10 retain a percentage of the amount collected and required to be 48-11 reported as reimbursement to the person for the costs of collecting 48-12 the tax. 48-13 (b) A municipality or county may provide that the person may 48-14 retain the amount authorized by Subsection (a) only if the person 48-15 pays the tax and files reports as required by the municipality or 48-16 county. 48-17 SECTION 3. The importance of this legislation and the 48-18 crowded condition of the calendars in both houses create an 48-19 emergency and an imperative public necessity that the 48-20 constitutional rule requiring bills to be read on three several 48-21 days in each house be suspended, and this rule is hereby suspended, 48-22 and that this Act take effect and be in force from and after its 48-23 passage, and it is so enacted.