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.