By Madla, et al. S.B. No. 935 75R1686 CBH-D A BILL TO BE ENTITLED 1-1 AN ACT 1-2 relating to the financing of community venues and related 1-3 infrastructure in certain municipalities or counties; authorizing 1-4 the imposition of certain local taxes and the issuance of local 1-5 bonds; providing penalties. 1-6 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: 1-7 SECTION 1. Subtitle C, Title 10, Local Government Code, is 1-8 amended by adding Chapters 334 and 335 to read as follows: 1-9 CHAPTER 334. COMMUNITY VENUES 1-10 SUBCHAPTER A. GENERAL PROVISIONS 1-11 Sec. 334.001. DEFINITIONS. In this chapter: 1-12 (1) "Approved community venue project" means a 1-13 community venue project that has been approved under this chapter 1-14 by the voters of a municipality or county. 1-15 (2) "Governing body" means the governing body of a 1-16 municipality or the commissioners court of a county. 1-17 (3) "Related infrastructure" means any store, 1-18 restaurant, concession, automobile parking facility, area 1-19 transportation facility, road, street, or water or sewer facility, 1-20 or other on-site or off-site improvement that relates to and 1-21 enhances the use, value, or appeal of a community venue and any 1-22 other expenditure reasonably necessary to construct, improve, 1-23 renovate, or expand a community venue. 1-24 (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, promotional 2-3 events, including rodeos, livestock shows, agricultural 2-4 expositions, and other civic, charitable, or promotional events, is 2-5 charged or is planned to be 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. This chapter applies 2-10 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 Sec. 334.003. APPLICATION TO COMMUNITY VENUE CONSTRUCTED 2-16 UNDER OTHER LAW. A county or municipality may use this chapter for 2-17 a community venue project relating to a community venue and related 2-18 infrastructure planned, acquired, established, developed, 2-19 constructed, or renovated under other law, including Section 4B, 2-20 Development Corporation Act of 1979 (Article 5190.6, Vernon's Texas 2-21 Civil Statutes), or Subchapter E, Chapter 451, Transportation Code. 2-22 Sec. 334.004. OTHER USES OF COMMUNITY VENUE PERMITTED. This 2-23 chapter does not prohibit the use of a community venue for an event 2-24 that is not related to sports or athletics, such as a 2-25 community-related event, including a rodeo, livestock show, 2-26 agricultural exposition, public school event, or other promotional 2-27 or entertainment event. 3-1 (Sections 334.005-334.020 reserved for expansion 3-2 SUBCHAPTER B. COMMUNITY VENUE PROJECTS 3-3 Sec. 334.021. RESOLUTION AUTHORIZING PROJECT. (a) A county 3-4 or municipality by resolution may provide for the planning, 3-5 acquisition, establishment, development, construction, or 3-6 renovation of a community venue project if: 3-7 (1) the comptroller determines under Section 334.022 3-8 or 334.023 that the implementation of the resolution will not have 3-9 a negative fiscal impact on state revenue; and 3-10 (2) the resolution is approved by a majority of the 3-11 qualified voters of the municipality or county voting at an 3-12 election called and held for that purpose under Section 334.024. 3-13 (b) The resolution must designate the community venue 3-14 project and each method of financing authorized by this chapter 3-15 that the municipality or county wants to use to finance the 3-16 project. A resolution may designate more than one method of 3-17 financing. 3-18 Sec. 334.022. STATE FISCAL IMPACT ANALYSIS. (a) Before 3-19 calling an election on the resolution under Section 334.024, the 3-20 municipality or county shall send a copy of the resolution to the 3-21 comptroller. 3-22 (b) Before the 15th day after the date the comptroller 3-23 receives the copy of the resolution, the comptroller shall: 3-24 (1) perform an analysis to determine if approval and 3-25 implementation of the resolution will have a negative fiscal impact 3-26 on state revenue; and 3-27 (2) provide to the municipality or county written 4-1 notice of the results of the analysis. 4-2 (c) If the comptroller does not complete the analysis and 4-3 provide the notice before the 15th day after the date the 4-4 comptroller receives the copy of the resolution, the comptroller is 4-5 considered to have determined that approval and implementation of 4-6 the resolution will not have a negative fiscal impact on state 4-7 revenue. 4-8 Sec. 334.023. APPEAL OF COMPTROLLER DETERMINATION. (a) If 4-9 the comptroller determines under Section 334.022 that 4-10 implementation of the resolution will have a negative fiscal impact 4-11 on state revenue, the municipality or county may: 4-12 (1) contest the finding by filing an appeal with the 4-13 comptroller not later than the 10th day after the date the 4-14 municipality or county receives the written notice under Section 4-15 334.022; or 4-16 (2) ask the comptroller to provide information on how 4-17 to change the resolution so that implementation will not have a 4-18 negative fiscal impact on state revenue. 4-19 (b) Before the 11th day after the date the comptroller 4-20 receives the appeal or request for information under Subsection 4-21 (a), the comptroller shall, as appropriate: 4-22 (1) perform a new analysis to determine if 4-23 implementation of the resolution will have a negative fiscal impact 4-24 on state revenue and provide to the municipality or county written 4-25 notice of the results of the analysis; or 4-26 (2) provide to the municipality or county written 4-27 information on how to change the resolution so that implementation 5-1 will not have a negative fiscal impact on state revenue. 5-2 (c) If the comptroller determines that implementation will 5-3 have a negative fiscal impact on state revenue, the written 5-4 analysis required under Subsection (b)(1) must include information 5-5 on how to change the resolution so that implementation will not 5-6 have a negative fiscal impact on state revenue. 5-7 (d) If the comptroller does not comply with Subsection (b) 5-8 before the 11th day after the date the comptroller receives the 5-9 appeal or request for information, the comptroller is considered to 5-10 have determined that approval and implementation of the resolution 5-11 will not have a negative fiscal impact on state revenue. 5-12 Sec. 334.024. ELECTION. (a) If the comptroller determines 5-13 under Section 334.022 or 334.023 that the implementation of the 5-14 resolution will not have a negative fiscal impact on state revenue, 5-15 the governing body of the municipality or county may order an 5-16 election on the question of approving and implementing the 5-17 resolution. 5-18 (b) The order calling the election must: 5-19 (1) allow the voters to vote separately on each 5-20 community venue project; 5-21 (2) designate the community venue project; 5-22 (3) designate each method of financing authorized by 5-23 this chapter that the municipality or county wants to use to 5-24 finance the project and the maximum rate of each method; and 5-25 (4) allow the voters to vote, in the same proposition 5-26 or in separate propositions, on each method of financing authorized 5-27 by this chapter that the municipality or county wants to use to 6-1 finance the project and the maximum rate of each method. 6-2 (c) The order calling the election may also allow the voters 6-3 to vote, in the same proposition or in separate propositions, on 6-4 one or more other unrelated projects proposed by the municipality 6-5 or county, including a project authorized by Section 4A or 4B, 6-6 Development Corporation Act of 1979 (Article 5190.6, Vernon's Texas 6-7 Civil Statutes), or a water, road, or sewer project. 6-8 (d) The ballot at the election held under this section must 6-9 be printed to permit voting for or against the proposition: 6-10 "Authorizing ________ (insert name of municipality or county) to 6-11 _______ (insert description of community venue project) and to 6-12 impose a ________ tax at the rate of ________ (insert the type of 6-13 tax and the maximum rate of the tax) for the purpose of financing 6-14 the community venue project." 6-15 (e) If more than one method of financing is to be voted on 6-16 in one proposition, the ballot must be printed to permit voting for 6-17 or against the proposition: "Authorizing ________ (insert name of 6-18 municipality or county) to ________ (insert description of 6-19 community venue project) and to impose a ________ tax at the rate 6-20 of _______ (insert each type of tax and the maximum rate of each 6-21 tax) for the purpose of financing the community venue project." 6-22 (f) If a community venue project and one or more unrelated 6-23 projects are to be voted on in the same proposition in accordance 6-24 with Subsection (c), the applicable ballot language required by 6-25 Subsection (d) or (e) must be modified as necessary to allow for a 6-26 vote on all the projects. 6-27 (g) The Election Code governs an election held under this 7-1 chapter, except that the uniform election date provisions of 7-2 Section 41.001(a), Election Code, do not apply to an election 7-3 ordered under this section. 7-4 (Sections 334.025-334.040 reserved for expansion 7-5 SUBCHAPTER C. POWERS AND DUTIES 7-6 Sec. 334.041. GENERAL POWERS. (a) A municipality or county 7-7 may perform any act necessary to the full exercise of the 7-8 municipality's or county's powers under this chapter. 7-9 (b) A municipality or county may acquire, sell, lease, 7-10 convey, or otherwise dispose of property or an interest in 7-11 property, including an approved community venue project, under 7-12 terms and conditions determined by the municipality or county. 7-13 (c) A municipality or county may contract with a public or 7-14 private person, including a sports team, club, organization, or 7-15 other entity to: 7-16 (1) plan, acquire, establish, develop, construct, or 7-17 renovate an approved community venue project; or 7-18 (2) perform any other act the municipality or county 7-19 is authorized to perform under this chapter. 7-20 (d) If a municipality or county contracts with a sports team 7-21 or club for the construction, renovation, or operation of an 7-22 approved community venue project, the municipality or county is not 7-23 a party to a subsequent contract between the team or club and 7-24 another person relating to the project. The competitive bidding 7-25 laws, including Chapter 271, do not apply to a contract between a 7-26 team or club and another person under this subsection. 7-27 Sec. 334.042. COMMUNITY VENUE PROJECT FUND. (a) A 8-1 municipality or county in which an approved community venue project 8-2 is located shall establish by resolution a fund known as the 8-3 community venue project fund. 8-4 (b) The municipality or county shall deposit into the 8-5 community venue project fund: 8-6 (1) the proceeds of any tax imposed by the 8-7 municipality or county under this chapter; 8-8 (2) all revenue from the sale of bonds or other 8-9 obligations by the municipality or county under this chapter; and 8-10 (3) any other money required by law to be deposited in 8-11 the fund. 8-12 (c) The municipality or county may deposit into the 8-13 community venue project fund: 8-14 (1) money derived from innovative funding concepts 8-15 such as the sale or lease of luxury boxes or the sale of licenses 8-16 for personal seats; and 8-17 (2) any other revenue derived from the approved 8-18 community venue project, including stadium rental payments and 8-19 revenue from concessions and parking. 8-20 (d) The municipality or county may use money in the 8-21 community venue project fund only to: 8-22 (1) pay the costs of planning, acquiring, 8-23 establishing, developing, constructing, or renovating one or more 8-24 approved community venue projects in the municipality or county; 8-25 (2) pay the principal of, interest on, and other costs 8-26 relating to bonds or other obligations issued by the municipality 8-27 or county or to refund bonds, notes, or other obligations; or 9-1 (3) pay the costs of operating or maintaining one or 9-2 more approved community venue projects during the planning, 9-3 acquisition, establishment, development, construction, or 9-4 renovation or while bonds, notes, or other obligations for the 9-5 planning, acquisition, establishment, development, construction, or 9-6 renovation are outstanding. 9-7 (e) Money deposited into the community venue project fund, 9-8 including money deposited under Subsection (c), is the property of 9-9 the municipality or county depositing the money. 9-10 Sec. 334.043. BONDS AND OTHER OBLIGATIONS. (a) A 9-11 municipality or county in which an approved community venue project 9-12 is located may issue bonds, including revenue bonds and refunding 9-13 bonds, or other obligations to pay the costs of the approved 9-14 community venue project. 9-15 (b) The bonds or other obligations and the proceedings 9-16 authorizing the bonds or other obligations shall be submitted to 9-17 the attorney general for review and approval as required by Article 9-18 3, Chapter 53, Acts of the 70th Legislature, 2nd Called Session, 9-19 1987 (Article 717k-8, Vernon's Texas Civil Statutes). 9-20 (c) The bonds or other obligations must be payable from and 9-21 secured by the revenue in the community venue project fund. 9-22 (d) The bonds or other obligations may mature serially or 9-23 otherwise not more than 30 years from their date of issuance. 9-24 (e) The bonds or other obligations are not a debt of and do 9-25 not create a claim for payment against the revenue or property of 9-26 the municipality or county other than an approved community venue 9-27 project for which the bonds are issued. 10-1 Sec. 334.044. PUBLIC PURPOSE OF PROJECT. (a) The 10-2 legislature finds for all constitutional and statutory purposes 10-3 that an approved community venue project is owned, used, and held 10-4 for public purposes by the municipality or county. 10-5 (b) Section 25.07(a), Tax Code, does not apply to a 10-6 leasehold or other possessory interest granted by the municipality 10-7 or county while the municipality or county owns the project. 10-8 (c) The project is exempt from taxation under Section 11.11, 10-9 Tax Code, while the municipality or county owns the project. 10-10 (Sections 334.045-334.100 reserved for expansion 10-11 SUBCHAPTER D. SHORT-TERM MOTOR VEHICLE RENTAL TAX 10-12 Sec. 334.101. DEFINITIONS. (a) In this subchapter: 10-13 (1) "Motor vehicle" means a self-propelled vehicle 10-14 designed principally to transport persons or property on a public 10-15 roadway and includes a passenger car, van, station wagon, sport 10-16 utility vehicle, and truck. The term does not include a: 10-17 (A) trailer, semitrailer, house trailer, truck 10-18 having a manufacturer's rating of more than one-half ton, or 10-19 road-building machine; 10-20 (B) device moved only by human power; 10-21 (C) device used exclusively on stationary rails 10-22 or tracks; 10-23 (D) farm machine; or 10-24 (E) mobile office. 10-25 (2) "Place of business of the owner" means an 10-26 established outlet, office, or location operated by the owner of a 10-27 motor vehicle or the owner's agent or employee for the purpose of 11-1 renting motor vehicles and includes any location at which three or 11-2 more rentals are made during a year. 11-3 (3) "Rental" means an agreement by the owner of a 11-4 motor vehicle to authorize for not longer than 30 days the 11-5 exclusive use of that vehicle to another for consideration. 11-6 (b) Except as provided by Subsection (a), words used in this 11-7 subchapter and defined by Chapter 152, Tax Code, have the meanings 11-8 assigned by Chapter 152, Tax Code. 11-9 Sec. 334.102. TAX AUTHORIZED. (a) A municipality by 11-10 ordinance or a county by order may impose a tax on the gross rental 11-11 receipts from the rental in the municipality or county of a motor 11-12 vehicle. 11-13 (b) A municipality by ordinance or a county by order may 11-14 repeal or decrease the rate of a tax imposed under Subsection (a). 11-15 (c) A municipality or county may impose a tax under this 11-16 subchapter only if: 11-17 (1) an approved community venue project is or is 11-18 planned to be located in the municipality or county; and 11-19 (2) the tax is approved at an election held under 11-20 Section 334.024. 11-21 Sec. 334.103. SHORT-TERM RENTAL TAX. (a) The tax 11-22 authorized by this subchapter is imposed at a rate in increments of 11-23 one-eighth of one percent, not to exceed 10 percent, on the gross 11-24 rental receipts from the rental in the municipality or county of a 11-25 motor vehicle. 11-26 (b) The ballot proposition at the election held to adopt the 11-27 tax must specify the maximum rate of the tax to be adopted. 12-1 Sec. 334.104. RATE INCREASE. (a) A municipality or county 12-2 that has adopted a tax under this subchapter at a rate of less than 12-3 10 percent may by ordinance or order increase the rate of the tax 12-4 to a maximum of 10 percent if the increase is approved by a 12-5 majority of the registered voters of that municipality or county 12-6 voting at an election called and held for that purpose. 12-7 (b) The ballot for an election to increase the rate of the 12-8 tax shall be printed to permit voting for or against the 12-9 proposition: "The increase of the motor vehicle rental tax for the 12-10 purpose of financing _____ (insert description of community venue 12-11 project) to a maximum rate of _______ percent (insert new maximum 12-12 rate not to exceed 10 percent)." 12-13 Sec. 334.105. COMPUTATION OF TAX. (a) The owner of a motor 12-14 vehicle subject to the tax imposed under this subchapter shall 12-15 collect the tax for the benefit of the municipality or county. 12-16 (b) The owner shall add the short-term motor vehicle rental 12-17 tax imposed by the municipality or county under this subchapter, if 12-18 applicable, and the gross rental receipts tax imposed by Chapter 12-19 152, Tax Code, to the rental charge, and the sum of the taxes is a 12-20 part of the rental charge, is a debt owed to the motor vehicle 12-21 owner by the person renting the vehicle, and is recoverable at law 12-22 in the same manner as the rental charge. 12-23 Sec. 334.106. CONSUMMATION OF RENTAL. A rental of a motor 12-24 vehicle occurs in the municipality or county in which transfer of 12-25 possession of the motor vehicle occurs. 12-26 Sec. 334.107. SHORT-TERM TAX INAPPLICABLE WHEN NO STATE TAX. 12-27 The tax authorized by this subchapter does not apply to the gross 13-1 receipts from the rental of a motor vehicle unless the tax imposed 13-2 by Chapter 152, Tax Code, also applies to the rental. 13-3 Sec. 334.108. EXEMPTIONS APPLICABLE. The exemptions 13-4 provided by Subchapter E, Chapter 152, Tax Code, apply to the tax 13-5 authorized by this subchapter. 13-6 Sec. 334.109. NOTICE OF TAX. Each bill or other receipt for 13-7 a rental subject to the tax imposed under this subchapter must 13-8 contain a statement in a conspicuous location stating: "_______ 13-9 (insert name of taxing municipality or county) requires that an 13-10 additional tax of ____ percent (insert rate of tax) be imposed on 13-11 each motor vehicle rental for the purpose of financing a community 13-12 venue project." 13-13 Sec. 334.110. GROSS RECEIPTS PRESUMED SUBJECT TO TAX. All 13-14 gross receipts of an owner of a motor vehicle from the rental of 13-15 the motor vehicle are presumed to be subject to the tax imposed by 13-16 this subchapter, except for gross receipts for which the owner has 13-17 accepted in good faith a properly completed exemption certificate. 13-18 Sec. 334.111. RECORDS. (a) The owner of a motor vehicle 13-19 used for rental purposes shall keep for four years records and 13-20 supporting documents containing the following information on the 13-21 amount of: 13-22 (1) gross rental receipts received from the rental of 13-23 the motor vehicle; and 13-24 (2) the tax imposed under this subchapter and paid to 13-25 the municipality or county on each motor vehicle used for rental 13-26 purposes by the owner. 13-27 (b) Mileage records are not required. 14-1 Sec. 334.112. FAILURE TO KEEP RECORDS. (a) An owner of a 14-2 motor vehicle commits an offense if the owner fails to make and 14-3 retain complete records for the four-year period required by 14-4 Section 334.111. 14-5 (b) An offense under this section is a misdemeanor 14-6 punishable by a fine of not less than $25 or more than $500. 14-7 Sec. 334.113. EFFECTIVE DATE AND ENDING DATE OF TAX. (a) A 14-8 tax imposed under this subchapter or a change in the tax rate takes 14-9 effect on the date prescribed by the ordinance or order imposing 14-10 the tax or changing the rate. 14-11 (b) A municipality or county may impose a tax under this 14-12 subchapter only if the municipality or county issues bonds or other 14-13 obligations under Section 334.043. The municipality or county may 14-14 impose the tax only while those bonds or other obligations are 14-15 outstanding and unpaid. 14-16 Sec. 334.114. TAX COLLECTION; PENALTY. (a) The owner of a 14-17 motor vehicle required to collect the tax imposed under this 14-18 subchapter shall report and send the taxes collected to the 14-19 municipality or county as provided by the ordinance or order 14-20 imposing the tax. 14-21 (b) A municipality by ordinance or a county by order may 14-22 prescribe penalties, including interest charges, for failure to 14-23 keep records required by the municipality or county, to report when 14-24 required, or to pay the tax when due. 14-25 (c) The attorney acting for the municipality or county may 14-26 bring suit against a person who fails to collect a tax under this 14-27 subchapter and to pay it over to the municipality or county as 15-1 required. 15-2 Sec. 334.115. COLLECTION PROCEDURES ON PURCHASE OF MOTOR 15-3 VEHICLE RENTAL BUSINESS. (a) If the owner of a motor vehicle 15-4 rental business that makes rentals subject to the tax imposed by 15-5 this subchapter sells the business, the successor to the seller or 15-6 the seller's assignee shall withhold an amount of the purchase 15-7 price sufficient to pay the amount of tax due until the seller 15-8 provides a receipt by a person designated by the municipality or 15-9 county to provide the receipt showing that the amount has been paid 15-10 or a certificate showing that no tax is due. 15-11 (b) The purchaser of a motor vehicle rental business who 15-12 fails to withhold an amount of the purchase price as required by 15-13 this section is liable for the amount required to be withheld to 15-14 the extent of the value of the purchase price. 15-15 (c) The purchaser of a motor vehicle rental business may 15-16 request that the person designated by the municipality or county to 15-17 provide a receipt under Subsection (a) issue a certificate stating 15-18 that no tax is due or issue a statement of the amount required to 15-19 be paid before a certificate may be issued. The person designated 15-20 by the municipality or county shall issue the certificate or 15-21 statement not later than the 60th day after the date the person 15-22 receives the request. 15-23 (d) If the person designated by the municipality or county 15-24 to provide a receipt under Subsection (a) fails to issue the 15-25 certificate or statement within the period provided by Subsection 15-26 (c), the purchaser is released from the obligation to withhold the 15-27 purchase price or pay the amount due. 16-1 Sec. 334.116. REIMBURSEMENT FOR TAX COLLECTION EXPENSES. 16-2 (a) A municipality by ordinance or a county by order may permit a 16-3 person who is required to collect a tax under this subchapter to 16-4 retain a percentage of the amount collected and required to be 16-5 reported as reimbursement to the person for the costs of collecting 16-6 the tax. 16-7 (b) A municipality or county may provide that the person may 16-8 retain the amount authorized by Subsection (a) only if the person 16-9 pays the tax and files reports as required by the municipality or 16-10 county. 16-11 Sec. 334.117. DEPOSIT OF TAX REVENUE. Revenue from the tax 16-12 imposed under this subchapter shall be deposited in the community 16-13 venue project fund of the municipality or county imposing the tax. 16-14 (Sections 334.118-334.150 reserved for expansion 16-15 SUBCHAPTER E. ADMISSIONS TAX 16-16 Sec. 334.151. TAX AUTHORIZED. (a) A municipality by 16-17 ordinance or a county by order may impose a tax on each person 16-18 admitted to an event at an approved community venue project in the 16-19 municipality or county for which the municipality or county has 16-20 issued bonds to plan, acquire, establish, develop, construct, or 16-21 renovate the approved community venue project. 16-22 (b) The municipality or county may not impose the tax under 16-23 this subchapter for admission to an event at a community venue that 16-24 is not an approved community venue project or for which the 16-25 municipality or county has not issued bonds to plan, acquire, 16-26 establish, develop, construct, or renovate the approved community 16-27 venue project. 17-1 (c) A municipality or county may impose a tax under this 17-2 subchapter only if: 17-3 (1) an approved community venue project is or will be 17-4 located in the municipality or county; and 17-5 (2) the tax is approved at an election held under 17-6 Section 334.024. 17-7 Sec. 334.152. TAX RATE. (a) The tax authorized by this 17-8 subchapter is imposed at the tax rate on each person admitted. 17-9 (b) The amount of the tax may be imposed at any uniform 17-10 monetary amount not to exceed $1. The tax may not be imposed at a 17-11 percentage rate. 17-12 (c) The ballot proposition at the election held to adopt the 17-13 tax must specify the maximum rate of the tax to be adopted. 17-14 (d) The municipality by ordinance or the county by order may 17-15 repeal or decrease the rate of the tax imposed under this 17-16 subchapter. 17-17 Sec. 334.153. RATE INCREASE. (a) A municipality or county 17-18 that has adopted a tax under this subchapter at the rate of less 17-19 than $1 a person may by ordinance or order increase the rate of the 17-20 tax to a maximum of $1 a person if the increase is approved by a 17-21 majority of the registered voters of that municipality or county 17-22 voting at an election called and held for that purpose. 17-23 (b) The ballot for an election to increase the rate of the 17-24 tax shall be printed to permit voting for or against the 17-25 proposition: "The increase of the admissions tax for the purpose 17-26 of financing _______ (insert description of community venue 17-27 project) to a maximum rate of ________ a day (insert new maximum 18-1 rate not to exceed $1)." 18-2 Sec. 334.154. COLLECTION. (a) The municipality by 18-3 ordinance or the county by order may require the owner or lessee of 18-4 an approved community venue project in the municipality or county 18-5 to collect the tax for the benefit of the municipality or county. 18-6 (b) An owner or lessee required to collect the tax under 18-7 this section shall add the tax to the admissions price, and the tax 18-8 is a part of the admissions price, is a debt owed to the owner or 18-9 lessee of the approved community venue project by the person 18-10 admitted, and is recoverable at law in the same manner as the 18-11 admissions charge. 18-12 (c) The tax imposed by this subchapter is not an occupation 18-13 tax imposed on the owner or lessee of the approved community venue 18-14 project. 18-15 Sec. 334.155. EFFECTIVE DATE AND ENDING DATE OF TAX. (a) A 18-16 tax imposed under this subchapter or a change in a tax rate takes 18-17 effect on the date prescribed by the ordinance or order imposing 18-18 the tax or changing the rate. 18-19 (b) A municipality or county may impose a tax under this 18-20 subchapter only if the municipality or county issues bonds or other 18-21 obligations under Section 334.043. The municipality or county may 18-22 impose the tax only while those bonds or other obligations are 18-23 outstanding and unpaid. 18-24 Sec. 334.156. COLLECTION OF TAX. (a) A person required to 18-25 collect a tax imposed under this subchapter shall report and send 18-26 the taxes collected to the municipality or county as provided by 18-27 the municipality or county imposing the tax. 19-1 (b) A municipality by ordinance or a county by order may 19-2 prescribe penalties, including interest charges, for failure to 19-3 keep records required by the municipality or county, to report when 19-4 required, or to pay the tax when due. The attorney acting for the 19-5 municipality or county may bring suit against a person who fails to 19-6 collect a tax under this subchapter and to pay it over to the 19-7 municipality or county as required. 19-8 (c) A municipality by ordinance or a county by order may 19-9 permit a person who is required to collect a tax under this 19-10 subchapter to retain a percentage of the amount collected and 19-11 required to be reported as reimbursement to the person for the 19-12 costs of collecting the tax. The municipality or county may 19-13 provide that the person may retain the amount only if the person 19-14 pays the tax and files reports as required by the municipality or 19-15 county. 19-16 Sec. 334.157. DEPOSIT OF TAX REVENUE. Revenue from the tax 19-17 imposed under this subchapter shall be deposited in the community 19-18 venue project fund of the municipality or county imposing the tax. 19-19 (Sections 334.158-334.200 reserved for expansion 19-20 SUBCHAPTER F. PARKING TAX 19-21 Sec. 334.201. EVENT PARKING TAX. (a) A municipality by 19-22 ordinance or a county by order may impose a tax on each motor 19-23 vehicle parking in a parking facility of an approved community 19-24 venue project. 19-25 (b) The municipality or county may impose the tax during a 19-26 period beginning not more than three hours before and ending not 19-27 more than three hours after the time an event in an approved 20-1 community venue project is scheduled to begin. The municipality or 20-2 county may not impose the tax under this subchapter during any 20-3 other time. 20-4 (c) A municipality or county may impose a tax under this 20-5 subchapter only if the tax is approved at an election held under 20-6 Section 334.024. 20-7 Sec. 334.202. TAX RATE. (a) The municipality by ordinance 20-8 or the county by order may provide that the tax is imposed at a 20-9 flat amount on each parked motor vehicle or is imposed as a 20-10 percentage of the amount charged for event parking by the owner of 20-11 the parking facility. 20-12 (b) Regardless of the method of imposition, the amount of 20-13 the tax may not exceed 50 cents for each motor vehicle. 20-14 (c) The ballot proposition at the election held to adopt the 20-15 tax must specify the maximum rate of the tax to be adopted. 20-16 (d) The municipality by ordinance or the county by order may 20-17 repeal or decrease the rate of the tax imposed under this section. 20-18 Sec. 334.203. RATE INCREASE. (a) A municipality or county 20-19 that has adopted a tax under this subchapter at a rate of less than 20-20 50 cents a vehicle may by ordinance or order increase the rate of 20-21 the tax to a maximum of 50 cents a vehicle if the increase is 20-22 approved by a majority of the registered voters of that 20-23 municipality or county voting at an election called and held for 20-24 that purpose. 20-25 (b) The ballot for an election to increase the rate of the 20-26 tax shall be printed to permit voting for or against the 20-27 proposition: "The increase of the parking tax for the purpose of 21-1 financing _______ (insert description of community venue project) 21-2 to a maximum rate of _______ (insert new maximum rate not to exceed 21-3 50 cents)." 21-4 Sec. 334.204. COLLECTION. (a) The municipality by 21-5 ordinance or the county by order may require the owner or lessee of 21-6 a parking facility to collect the tax for the benefit of the 21-7 municipality or county. 21-8 (b) An owner or lessee required to collect the tax under 21-9 this section shall add the tax to the parking charge, and the tax 21-10 is a part of the parking charge, is a debt owed to the parking 21-11 facility owner or lessee by the person parking, and is recoverable 21-12 at law in the same manner as the parking charge. 21-13 (c) The tax imposed by this subchapter is not an occupation 21-14 tax imposed on the owner or lessee of the parking facility. 21-15 Sec. 334.205. EFFECTIVE DATE AND ENDING DATE OF TAX. (a) A 21-16 tax imposed under this subchapter or a change in the tax rate takes 21-17 effect on the date prescribed by the ordinance or order imposing 21-18 the tax or changing the rate. 21-19 (b) A municipality or county may impose a tax under this 21-20 subchapter only if the municipality or county issues bonds or other 21-21 obligations under Section 334.043. The municipality or county may 21-22 impose the tax only while those bonds or other obligations are 21-23 outstanding and unpaid. 21-24 Sec. 334.206. COLLECTION OF TAX. (a) A person required to 21-25 collect a tax imposed under this subchapter shall report and send 21-26 the taxes collected to the municipality or county as provided by 21-27 the municipality or county imposing the tax. 22-1 (b) A municipality by ordinance or a county by order may 22-2 prescribe penalties, including interest charges, for failure to 22-3 keep records required by the municipality or county, to report when 22-4 required, or to pay the tax when due. The attorney acting for the 22-5 municipality or county may bring suit against a person who fails to 22-6 collect a tax under this subchapter and to pay it over to the 22-7 municipality or county as required. 22-8 (c) A municipality by ordinance or a county by order may 22-9 permit a person who is required to collect a tax under this 22-10 subchapter to retain a percentage of the amount collected and 22-11 required to be reported as reimbursement to the person for the 22-12 costs of collecting the tax. The municipality or county may 22-13 provide that the person may retain the amount only if the person 22-14 pays the tax and files reports as required by the municipality or 22-15 county. 22-16 Sec. 334.207. DEPOSIT OF TAX REVENUE. Revenue from the tax 22-17 imposed under this subchapter shall be deposited in the community 22-18 venue project fund of the municipality or county imposing the tax. 22-19 CHAPTER 335. COMMUNITY VENUE DISTRICTS 22-20 SUBCHAPTER A. GENERAL PROVISIONS 22-21 Sec. 335.001. DEFINITIONS. In this chapter: 22-22 (1) "Approved community venue project" has the meaning 22-23 assigned by Section 334.001, except that the approval of the 22-24 project must occur under this chapter. 22-25 (2) "Board" means the board of directors of a 22-26 community venue district. 22-27 (3) "District" means a community venue district 23-1 created under this chapter. 23-2 (4) "Related infrastructure" has the meaning assigned 23-3 by Section 334.001. 23-4 (5) "Community venue" has the meaning assigned by 23-5 Section 334.001. 23-6 (6) "Community venue project" has the meaning assigned 23-7 by Section 334.001, except that the actions described by that 23-8 section must occur under this chapter. 23-9 Sec. 335.002. APPLICATION OF CHAPTER. This chapter applies 23-10 only to: 23-11 (1) a county with a population of less than 1.5 23-12 million; 23-13 (2) a municipality located in a county described by 23-14 Subdivision (1); 23-15 (3) a county adjacent to a county described by 23-16 Subdivision (1); and 23-17 (4) a municipality located in a county described by 23-18 Subdivision (3). 23-19 Sec. 335.003. APPLICATION TO COMMUNITY VENUE CONSTRUCTED 23-20 UNDER OTHER LAW. A district may use this chapter for a community 23-21 venue project relating to a community venue and related 23-22 infrastructure planned, acquired, established, developed, 23-23 constructed, or renovated under other law, including Section 4B, 23-24 Development Corporation Act of 1979 (Article 5190.6, Vernon's Texas 23-25 Civil Statutes), or Subchapter E, Chapter 451, Transportation Code. 23-26 Sec. 335.004. OTHER USES OF COMMUNITY VENUE PERMITTED. This 23-27 chapter does not prohibit the use of a community venue for an event 24-1 that is not related to sports or athletics, such as a 24-2 community-related event, including a rodeo, livestock show, 24-3 agricultural exposition, public school event, or other promotional 24-4 or entertainment event. 24-5 (Sections 335.005-335.020 reserved for expansion 24-6 SUBCHAPTER B. COMMUNITY VENUE DISTRICT 24-7 Sec. 335.021. CREATION. Two or more counties, two or more 24-8 municipalities, or one or more municipalities and one or more 24-9 counties may create a community venue district under this chapter 24-10 to plan, acquire, establish, develop, construct, or renovate one 24-11 or more community venue projects in the district subject to voter 24-12 approval under Subchapter D. 24-13 Sec. 335.022. ORDER CREATING DISTRICT. Two or more 24-14 counties, two or more municipalities, or one or more municipalities 24-15 and one or more counties may create a district under this chapter 24-16 by adopting concurrent orders. The concurrent orders must: 24-17 (1) contain identical provisions; 24-18 (2) define the boundaries of the district to be 24-19 coextensive with each creating political subdivision; and 24-20 (3) designate the number of directors and the manner 24-21 of appointment in accordance with Section 335.031. 24-22 Sec. 335.023. POLITICAL SUBDIVISION; OPEN MEETINGS. (a) A 24-23 district is a political subdivision of the creating political 24-24 subdivisions and of this state. 24-25 (b) A district is subject to Chapter 551, Government Code. 24-26 (Sections 335.024-335.030 reserved for expansion) 25-1 SUBCHAPTER C. BOARD OF DIRECTORS 25-2 Sec. 335.031. COMPOSITION AND APPOINTMENT OF BOARD. (a) A 25-3 district is governed by a board of at least four directors. 25-4 (b) The board is appointed by the governing body of the 25-5 political subdivisions that create the district. Each political 25-6 subdivision is entitled to an equal number of directors. 25-7 (c) Directors serve staggered two-year terms. A director 25-8 may be removed by the appointing political subdivision at any time 25-9 without cause. Successor directors are appointed in the same 25-10 manner as the original appointees. 25-11 (d) To qualify to serve as a director, a person must be a 25-12 resident of the appointing political subdivision. An employee, 25-13 officer, or member of the governing body of the appointing 25-14 political subdivision may serve as a director, but may not have a 25-15 personal interest in a contract executed by the district other than 25-16 as an employee, officer, or member of the governing body of the 25-17 political subdivision. 25-18 Sec. 335.032. COMPENSATION. A board member is not entitled 25-19 to compensation, but is entitled to reimbursement for actual and 25-20 necessary expenses. 25-21 Sec. 335.033. MEETINGS. The board shall conduct its 25-22 meetings in the district. 25-23 Sec. 335.034. OFFICERS. The board shall designate from the 25-24 members of the board a presiding officer, a secretary, and other 25-25 officers the board considers necessary. 25-26 (Sections 335.035-335.050 reserved for expansion 25-27 SUBCHAPTER D. COMMUNITY VENUE PROJECTS 26-1 Sec. 335.051. RESOLUTION AUTHORIZING PROJECT. (a) A 26-2 district by resolution may provide for the planning, acquisition, 26-3 establishment, development, construction, or renovation of a 26-4 community venue project if: 26-5 (1) the comptroller determines under Section 335.052 26-6 or 335.053 that the implementation of the resolution will not have 26-7 a negative fiscal impact on state revenue; and 26-8 (2) the resolution is approved by a majority of the 26-9 qualified voters of each political subdivision that created the 26-10 district voting at separate elections called and held for that 26-11 purpose under Section 335.054. 26-12 (b) The resolution must designate the community venue 26-13 project and each method of financing authorized by this chapter 26-14 that the district wants to use to finance the project. A 26-15 resolution may designate more than one method of financing. 26-16 Sec. 335.052. STATE FISCAL IMPACT ANALYSIS. (a) Before 26-17 calling an election on the resolution under Section 335.054, the 26-18 district shall send a copy of the resolution to the comptroller. 26-19 (b) Before the 15th day after the date the comptroller 26-20 receives the copy of the resolution, the comptroller shall: 26-21 (1) perform an analysis to determine if approval and 26-22 implementation of the resolution will have a negative fiscal 26-23 impact on state revenue; and 26-24 (2) provide to the district written notice of the 26-25 results of the analysis. 26-26 (c) If the comptroller does not complete the analysis and 26-27 provide the notice before the 15th day after the date the 27-1 comptroller receives the copy of the resolution, the comptroller is 27-2 considered to have determined that approval and implementation of 27-3 the resolution will not have a negative fiscal impact on state 27-4 revenue. 27-5 Sec. 335.053. APPEAL OF COMPTROLLER DETERMINATION. (a) If 27-6 the comptroller determines under Section 335.052 that 27-7 implementation of the resolution will have a negative fiscal impact 27-8 on state revenue, the district may: 27-9 (1) contest the finding by filing an appeal with the 27-10 comptroller not later than the 10th day after the date the district 27-11 receives the written notice under Section 335.052; or 27-12 (2) ask the comptroller to provide information on how 27-13 to change the resolution so that implementation will not have a 27-14 negative fiscal impact on state revenue. 27-15 (b) Before the 11th day after the date the comptroller 27-16 receives the appeal or request for information under Subsection 27-17 (a), the comptroller shall, as appropriate: 27-18 (1) perform a new analysis to determine if 27-19 implementation of the resolution will have a negative fiscal impact 27-20 on state revenue and provide to the district written notice of the 27-21 results of the analysis; or 27-22 (2) provide to the district written information on how 27-23 to change the resolution so that implementation will not have a 27-24 negative fiscal impact on state revenue. 27-25 (c) If the comptroller determines that implementation will 27-26 have a negative fiscal impact on state revenue, the written 27-27 analysis required under Subsection (b)(1) must include information 28-1 on how to change the resolution so that implementation will not 28-2 have a negative fiscal impact on state revenue. 28-3 (d) If the comptroller does not comply with Subsection (b) 28-4 before the 11th day after the date the comptroller receives the 28-5 appeal or request for information, the comptroller is considered to 28-6 have determined that approval and implementation of the resolution 28-7 will not have a negative fiscal impact on state revenue. 28-8 Sec. 335.054. ELECTION. (a) If the comptroller determines 28-9 under Section 335.052 or 335.053 that implementation of the 28-10 resolution will not have a negative fiscal impact on state revenue, 28-11 the board may order a separate election in each political 28-12 subdivision that created the district on the question of approving 28-13 and implementing the resolution. The elections shall be held on 28-14 the same day. 28-15 (b) The order calling the elections must: 28-16 (1) allow the voters to vote separately on each 28-17 community venue project; 28-18 (2) designate the community venue project; 28-19 (3) designate each method of financing authorized by 28-20 this chapter that the district wants to use to finance the project 28-21 and the maximum rate of each method; and 28-22 (4) allow the voters to vote, in the same proposition 28-23 or in separate propositions, on each method of financing authorized 28-24 by this chapter that the district wants to use to finance the 28-25 project and the maximum rate of each method. 28-26 (c) The ballot at the elections held under this section must 28-27 be printed to permit voting for or against the proposition: 29-1 "Authorizing _________ (insert name of district) to __________ 29-2 (insert description of community venue project) and to impose a 29-3 __________ tax (insert type of tax) at the rate of ________ (insert 29-4 maximum rate) for the purpose of financing the community venue 29-5 project." 29-6 (d) If more than one method of financing is to be voted on 29-7 in one proposition, the ballot must be printed to permit voting for 29-8 or against the proposition: "Authorizing _________ (insert name of 29-9 district) to __________ (insert description of community venue 29-10 project) and to impose a __________ tax at the rate of ________ 29-11 (insert each type of tax and the maximum rate of each tax) for the 29-12 purpose of financing the community venue project." 29-13 (e) If a majority of the votes cast at the election in each 29-14 creating political subdivision approves the proposition authorizing 29-15 the project, the district may implement the resolution. If a 29-16 majority of the votes cast in one or more of the creating political 29-17 subdivisions disapproves the proposition authorizing the project, 29-18 the district may not implement the resolution. If the project is 29-19 approved, but one or more financing methods contained in separate 29-20 propositions are disapproved, the district may use only the 29-21 approved financing methods. 29-22 (f) The Election Code governs an election held under this 29-23 chapter, except that the uniform election date provisions of 29-24 Section 41.001(a), Election Code, do not apply to an election 29-25 ordered under this section. 29-26 (Sections 335.055-335.070 reserved for expansion 30-1 SUBCHAPTER E. POWERS AND DUTIES 30-2 Sec. 335.071. GENERAL POWERS OF DISTRICT. (a) A district 30-3 may: 30-4 (1) perform any act necessary to the full exercise of 30-5 the district's powers; 30-6 (2) accept a grant or loan from a: 30-7 (A) department or agency of the United States; 30-8 (B) department, agency, or political subdivision 30-9 of this state; or 30-10 (C) public or private person; 30-11 (3) acquire, sell, lease, convey, or otherwise dispose 30-12 of property or an interest in property, including an approved 30-13 community venue project, under terms and conditions determined by 30-14 the district; 30-15 (4) employ necessary personnel; and 30-16 (5) adopt rules to govern the operation of the 30-17 district and its employees and property. 30-18 (b) A district may contract with a public or private person, 30-19 including a sports team, club, organization, or other entity, to: 30-20 (1) plan, acquire, establish, develop, construct, or 30-21 renovate an approved community venue project; or 30-22 (2) perform any other act the district is authorized 30-23 to perform under this chapter. 30-24 (c) If the district contracts with a sports team or club for 30-25 the construction, renovation, or operation of an approved community 30-26 venue project, the district is not a party to a subsequent contract 30-27 between the team or club and another person relating to the 31-1 project. The competitive bidding laws, including Chapter 271, do 31-2 not apply to a contract between a team or club and another person 31-3 under this subsection. 31-4 (d) A district may impose any tax a county may impose under 31-5 Chapter 334, subject to approval of the voters of the district as 31-6 prescribed by this chapter and Chapter 334. The district shall 31-7 impose the tax in the same manner as a county. 31-8 (e) A district may not levy an ad valorem tax. 31-9 Sec. 335.072. COMMUNITY VENUE PROJECT FUND. (a) A district 31-10 in which an approved community venue project is located shall 31-11 establish by resolution a fund known as the community venue project 31-12 fund. 31-13 (b) The district shall deposit into the community venue 31-14 project fund: 31-15 (1) the proceeds from any tax imposed by the district; 31-16 (2) all revenue from the sale of bonds or other 31-17 obligations by the district; and 31-18 (3) any other money required by law to be deposited in 31-19 the fund. 31-20 (c) The district may deposit into the community venue 31-21 project fund: 31-22 (1) money derived from innovative funding concepts 31-23 such as the sale or lease of luxury boxes or the sale of licenses 31-24 for personal seats; and 31-25 (2) any other revenue derived from the approved 31-26 community venue project, including stadium rental payments and 31-27 revenue from concessions and parking. 32-1 (d) The district may use money in the community venue 32-2 project fund only to: 32-3 (1) pay the costs of planning, acquiring, 32-4 establishing, developing, constructing, or renovating one or more 32-5 approved community venue projects in the district; 32-6 (2) pay the principal of, interest on, and other costs 32-7 relating to bonds or other obligations issued by the district or 32-8 to refund bonds or other obligations; or 32-9 (3) pay the costs of operating or maintaining one or 32-10 more approved community venue projects during the planning, 32-11 acquisition, establishment, development, construction, or 32-12 renovation or while bonds or other obligations for the planning, 32-13 acquisition, establishment, development, construction, or 32-14 renovation are outstanding. 32-15 (e) Money deposited into the community venue project fund, 32-16 including money deposited under Subsection (c), is the property of 32-17 the district depositing the money. 32-18 Sec. 335.073. BONDS AND OTHER OBLIGATIONS. (a) A district 32-19 in which an approved community venue project is located may issue 32-20 bonds, including revenue bonds and refunding bonds, or other 32-21 obligations to pay the costs of the approved community venue 32-22 project. 32-23 (b) The bonds or other obligations and the proceedings 32-24 authorizing the bonds or other obligations shall be submitted to 32-25 the attorney general for review and approval as required by Article 32-26 3, Chapter 53, Acts of the 70th Legislature, 2nd Called Session, 32-27 1987 (Article 717k-8, Vernon's Texas Civil Statutes). 33-1 (c) The bonds or other obligations must be payable from and 33-2 secured by the revenue in the community venue project fund. 33-3 (d) The bonds or other obligations may mature serially or 33-4 otherwise not more than 30 years from their date of issuance. 33-5 (e) The bonds or other obligations are not a debt of and do 33-6 not create a claim for payment against the revenue or property of 33-7 the district other than an approved community venue project for 33-8 which the bonds are issued. 33-9 Sec. 335.074. PUBLIC PURPOSE OF PROJECT. (a) The 33-10 legislature finds for all constitutional and statutory purposes 33-11 that an approved community venue project is owned, used, and held 33-12 for public purposes by the district. 33-13 (b) Section 25.07(a), Tax Code, does not apply to a 33-14 leasehold or other possessory interest granted by the district 33-15 while the district owns the project. 33-16 (c) The project is exempt from taxation under Section 11.11, 33-17 Tax Code, while the district owns the project. 33-18 SECTION 2. The importance of this legislation and the 33-19 crowded condition of the calendars in both houses create an 33-20 emergency and an imperative public necessity that the 33-21 constitutional rule requiring bills to be read on three several 33-22 days in each house be suspended, and this rule is hereby suspended, 33-23 and that this Act take effect and be in force from and after its 33-24 passage, and it is so enacted.