1-1 By: Madla, et al. S.B. No. 935 1-2 (In the Senate - Filed March 4, 1997; March 6, 1997, read 1-3 first time and referred to Committee on State Affairs; 1-4 March 19, 1997, reported adversely, with favorable Committee 1-5 Substitute by the following vote: Yeas 8, Nays 4; March 19, 1997, 1-6 sent to printer.) 1-7 COMMITTEE SUBSTITUTE FOR S.B. No. 935 By: Luna 1-8 A BILL TO BE ENTITLED 1-9 AN ACT 1-10 relating to the financing of community venues and related 1-11 infrastructure in certain municipalities or counties; authorizing 1-12 the imposition of certain local taxes and the issuance of local 1-13 bonds; providing penalties. 1-14 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: 1-15 SECTION 1. Subtitle C, Title 10, Local Government Code, is 1-16 amended by adding Chapters 334 and 335 to read as follows: 1-17 CHAPTER 334. COMMUNITY VENUES 1-18 SUBCHAPTER A. GENERAL PROVISIONS 1-19 Sec. 334.001. DEFINITIONS. In this chapter: 1-20 (1) "Approved community venue project" means a 1-21 community venue project that has been approved under this chapter 1-22 by the voters of a municipality or county. 1-23 (2) "Governing body" means the governing body of a 1-24 municipality or the commissioners court of a county. 1-25 (3) "Related infrastructure" means any store, 1-26 restaurant, concession, automobile parking facility, area 1-27 transportation facility, road, street, water or sewer facility, or 1-28 other on-site or off-site improvement that relates to and enhances 1-29 the use, value, or appeal of a community venue and any other 1-30 expenditure reasonably necessary to construct, improve, renovate, 1-31 or expand a community venue. 1-32 (4) "Community venue" means an arena, coliseum, 1-33 stadium, or other type of area or facility for which a fee for 1-34 admission to the community events, athletic events, rodeos, 1-35 livestock shows, agricultural expositions, and other civic, 1-36 charitable, or promotional events is charged or is planned to be 1-37 charged. 1-38 (5) "Community venue project" means a community venue 1-39 and related infrastructure that is planned, acquired, established, 1-40 developed, constructed, or renovated under this chapter. 1-41 Sec. 334.002. APPLICATION OF CHAPTER. This chapter applies 1-42 only to: 1-43 (1) a county with a population of less than 1.5 1-44 million; and 1-45 (2) a municipality located in a county described by 1-46 Subdivision (1). 1-47 Sec. 334.003. APPLICATION TO COMMUNITY VENUE CONSTRUCTED 1-48 UNDER OTHER LAW. A county or municipality may use this chapter for 1-49 a community venue project relating to a community venue and related 1-50 infrastructure planned, acquired, established, developed, 1-51 constructed, or renovated under other law, including Section 4B, 1-52 Development Corporation Act of 1979 (Article 5190.6, Vernon's Texas 1-53 Civil Statutes), or Subchapter E, Chapter 451, Transportation Code. 1-54 Sec. 334.004. OTHER USES OF COMMUNITY VENUE PERMITTED. This 1-55 chapter does not prohibit the use of a community venue for an event 1-56 that is not related to sports or athletics, such as a 1-57 community-related event, including a rodeo, livestock show, 1-58 agricultural exposition, public school event, or other promotional 1-59 or entertainment event. 1-60 (Sections 334.005-334.020 reserved for expansion 1-61 SUBCHAPTER B. COMMUNITY VENUE PROJECTS 1-62 Sec. 334.021. RESOLUTION AUTHORIZING PROJECT. (a) A county 1-63 or municipality by resolution may provide for the planning, 1-64 acquisition, establishment, development, construction, or 2-1 renovation of a community venue project if: 2-2 (1) the comptroller determines under Section 334.022 2-3 or 334.023 that the implementation of the resolution will not have 2-4 a negative fiscal impact on state revenue; and 2-5 (2) the resolution is approved by a majority of the 2-6 qualified voters of the municipality or county voting at an 2-7 election called and held for that purpose under Section 334.024. 2-8 (b) The resolution must designate the community venue 2-9 project and each method of financing authorized by this chapter 2-10 that the municipality or county wants to use to finance the 2-11 project. A resolution may designate more than one method of 2-12 financing. 2-13 Sec. 334.022. STATE FISCAL IMPACT ANALYSIS. (a) Before 2-14 calling an election on the resolution under Section 334.024, the 2-15 municipality or county shall send a copy of the resolution to the 2-16 comptroller. 2-17 (b) Before the 15th day after the date the comptroller 2-18 receives the copy of the resolution, the comptroller shall: 2-19 (1) perform an analysis to determine if approval and 2-20 implementation of the resolution will have a negative fiscal impact 2-21 on state revenue; and 2-22 (2) provide to the municipality or county written 2-23 notice of the results of the analysis. 2-24 (c) If the comptroller does not complete the analysis and 2-25 provide the notice before the 15th day after the date the 2-26 comptroller receives the copy of the resolution, the comptroller is 2-27 considered to have determined that approval and implementation of 2-28 the resolution will not have a negative fiscal impact on state 2-29 revenue. 2-30 Sec. 334.023. APPEAL OF COMPTROLLER DETERMINATION. (a) If 2-31 the comptroller determines under Section 334.022 that 2-32 implementation of the resolution will have a negative fiscal impact 2-33 on state revenue, the municipality or county may: 2-34 (1) contest the finding by filing an appeal with the 2-35 comptroller not later than the 10th day after the date the 2-36 municipality or county receives the written notice under Section 2-37 334.022; or 2-38 (2) ask the comptroller to provide information on how 2-39 to change the resolution so that implementation will not have a 2-40 negative fiscal impact on state revenue. 2-41 (b) Before the 11th day after the date the comptroller 2-42 receives the appeal or request for information under Subsection 2-43 (a), the comptroller shall, as appropriate: 2-44 (1) perform a new analysis to determine if 2-45 implementation of the resolution will have a negative fiscal impact 2-46 on state revenue and provide to the municipality or county written 2-47 notice of the results of the analysis; or 2-48 (2) provide to the municipality or county written 2-49 information on how to change the resolution so that implementation 2-50 will not have a negative fiscal impact on state revenue. 2-51 (c) If the comptroller determines that implementation will 2-52 have a negative fiscal impact on state revenue, the written 2-53 analysis required under Subsection (b)(1) must include information 2-54 on how to change the resolution so that implementation will not 2-55 have a negative fiscal impact on state revenue. 2-56 (d) If the comptroller does not comply with Subsection (b) 2-57 before the 11th day after the date the comptroller receives the 2-58 appeal or request for information, the comptroller is considered to 2-59 have determined that approval and implementation of the resolution 2-60 will not have a negative fiscal impact on state revenue. 2-61 Sec. 334.024. ELECTION. (a) If the comptroller determines 2-62 under Section 334.022 or 334.023 that the implementation of the 2-63 resolution will not have a negative fiscal impact on state revenue, 2-64 the governing body of the municipality or county may order an 2-65 election on the question of approving and implementing the 2-66 resolution. 2-67 (b) The order calling the election must: 2-68 (1) allow the voters to vote separately on each 2-69 community venue project; 3-1 (2) designate the community venue project; 3-2 (3) designate each method of financing authorized by 3-3 this chapter that the municipality or county wants to use to 3-4 finance the project and the maximum rate of each method; and 3-5 (4) allow the voters to vote, in the same proposition 3-6 or in separate propositions, on each method of financing authorized 3-7 by this chapter that the municipality or county wants to use to 3-8 finance the project and the maximum rate of each method. 3-9 (c) The order calling the election may also allow the voters 3-10 to vote, in the same proposition or in separate propositions, on 3-11 one or more other unrelated projects proposed by the municipality 3-12 or county, including a project authorized by Section 4A or 4B, 3-13 Development Corporation Act of 1979 (Article 5190.6, Vernon's Texas 3-14 Civil Statutes), or a water, road, or sewer project. 3-15 (d) The ballot at the election held under this section must 3-16 be printed to permit voting for or against the proposition: 3-17 "Authorizing ________ (insert name of municipality or county) to 3-18 _______ (insert description of community venue project) and to 3-19 impose a ________ tax at the rate of ________ (insert the type of 3-20 tax and the maximum rate of the tax) for the purpose of financing 3-21 the community venue project." 3-22 (e) If more than one method of financing is to be voted on 3-23 in one proposition, the ballot must be printed to permit voting for 3-24 or against the proposition: "Authorizing ________ (insert name of 3-25 municipality or county) to ________ (insert description of 3-26 community venue project) and to impose a ________ tax at the rate 3-27 of _______ (insert each type of tax and the maximum rate of each 3-28 tax) for the purpose of financing the community venue project." 3-29 (f) If a community venue project and one or more unrelated 3-30 projects are to be voted on in the same proposition in accordance 3-31 with Subsection (c), the applicable ballot language required by 3-32 Subsection (d) or (e) must be modified as necessary to allow for a 3-33 vote on all the projects. 3-34 (g) The Election Code governs an election held under this 3-35 chapter, except that the uniform election date provisions of 3-36 Section 41.001(a), Election Code, do not apply to an election 3-37 ordered under this section. 3-38 (Sections 334.025-334.040 reserved for expansion 3-39 SUBCHAPTER C. POWERS AND DUTIES 3-40 Sec. 334.041. GENERAL POWERS. (a) A municipality or county 3-41 may perform any act necessary to the full exercise of the 3-42 municipality's or county's powers under this chapter. 3-43 (b) A municipality or county may acquire, sell, lease, 3-44 convey, or otherwise dispose of property or an interest in 3-45 property, including an approved community venue project, under 3-46 terms and conditions determined by the municipality or county. 3-47 (c) A municipality or county may contract with a public or 3-48 private person, including a sports team, club, organization, or 3-49 other entity to: 3-50 (1) plan, acquire, establish, develop, construct, or 3-51 renovate an approved community venue project; or 3-52 (2) perform any other act the municipality or county 3-53 is authorized to perform under this chapter. 3-54 (d) If a municipality or county contracts with a sports team 3-55 or club for the construction, renovation, or operation of an 3-56 approved community venue project, the municipality or county is not 3-57 a party to a subsequent contract between the team or club and 3-58 another person relating to the project. The competitive bidding 3-59 laws, including Chapter 271, do not apply to a contract between a 3-60 team or club and another person under this subsection. 3-61 Sec. 334.042. COMMUNITY VENUE PROJECT FUND. (a) A 3-62 municipality or county in which an approved community venue project 3-63 is located shall establish by resolution a fund known as the 3-64 community venue project fund. 3-65 (b) The municipality or county shall deposit into the 3-66 community venue project fund: 3-67 (1) the proceeds of any tax imposed by the 3-68 municipality or county under this chapter; 3-69 (2) all revenue from the sale of bonds or other 4-1 obligations by the municipality or county under this chapter; and 4-2 (3) any other money required by law to be deposited in 4-3 the fund. 4-4 (c) The municipality or county may deposit into the 4-5 community venue project fund: 4-6 (1) money derived from innovative funding concepts 4-7 such as the sale or lease of luxury boxes or the sale of licenses 4-8 for personal seats; and 4-9 (2) any other revenue derived from the approved 4-10 community venue project, including stadium rental payments and 4-11 revenue from concessions and parking. 4-12 (d) The municipality or county may use money in the 4-13 community venue project fund only to: 4-14 (1) pay the costs of planning, acquiring, 4-15 establishing, developing, constructing, or renovating one or more 4-16 approved community venue projects in the municipality or county; 4-17 (2) pay the principal of, interest on, and other costs 4-18 relating to bonds or other obligations issued by the municipality 4-19 or county or to refund bonds, notes, or other obligations; or 4-20 (3) pay the costs of operating or maintaining one or 4-21 more approved community venue projects during the planning, 4-22 acquisition, establishment, development, construction, or 4-23 renovation or while bonds, notes, or other obligations for the 4-24 planning, acquisition, establishment, development, construction, or 4-25 renovation are outstanding. 4-26 (e) Money deposited into the community venue project fund, 4-27 including money deposited under Subsection (c), is the property of 4-28 the municipality or county depositing the money. 4-29 Sec. 334.043. BONDS AND OTHER OBLIGATIONS. (a) A 4-30 municipality or county in which an approved community venue project 4-31 is located may issue bonds, including revenue bonds and refunding 4-32 bonds, or other obligations to pay the costs of the approved 4-33 community venue project. 4-34 (b) The bonds or other obligations and the proceedings 4-35 authorizing the bonds or other obligations shall be submitted to 4-36 the attorney general for review and approval as required by Article 4-37 3, Chapter 53, Acts of the 70th Legislature, 2nd Called Session, 4-38 1987 (Article 717k-8, Vernon's Texas Civil Statutes). 4-39 (c) The bonds or other obligations must be payable from and 4-40 secured by the revenue in the community venue project fund. 4-41 (d) The bonds or other obligations may mature serially or 4-42 otherwise not more than 30 years from their date of issuance. 4-43 (e) The bonds or other obligations are not a debt of and do 4-44 not create a claim for payment against the revenue or property of 4-45 the municipality or county other than an approved community venue 4-46 project for which the bonds are issued. 4-47 Sec. 334.044. PUBLIC PURPOSE OF PROJECT. (a) The 4-48 legislature finds for all constitutional and statutory purposes 4-49 that an approved community venue project is owned, used, and held 4-50 for public purposes by the municipality or county. 4-51 (b) Section 25.07(a), Tax Code, does not apply to a 4-52 leasehold or other possessory interest granted by the municipality 4-53 or county while the municipality or county owns the project. 4-54 (c) The project is exempt from taxation under Section 11.11, 4-55 Tax Code, while the municipality or county owns the project. 4-56 (Sections 334.045-334.100 reserved for expansion 4-57 SUBCHAPTER D. SHORT-TERM MOTOR VEHICLE RENTAL TAX 4-58 Sec. 334.101. DEFINITIONS. (a) In this subchapter: 4-59 (1) "Motor vehicle" means a self-propelled vehicle 4-60 designed principally to transport persons or property on a public 4-61 roadway and includes a passenger car, van, station wagon, sport 4-62 utility vehicle, and truck. The term does not include a: 4-63 (A) trailer, semitrailer, house trailer, truck 4-64 having a manufacturer's rating of more than one-half ton, or 4-65 road-building machine; 4-66 (B) device moved only by human power; 4-67 (C) device used exclusively on stationary rails 4-68 or tracks; 4-69 (D) farm machine; or 5-1 (E) mobile office. 5-2 (2) "Place of business of the owner" means an 5-3 established outlet, office, or location operated by the owner of a 5-4 motor vehicle or the owner's agent or employee for the purpose of 5-5 renting motor vehicles and includes any location at which three or 5-6 more rentals are made during a year. 5-7 (3) "Rental" means an agreement by the owner of a 5-8 motor vehicle to authorize for not longer than 30 days the 5-9 exclusive use of that vehicle to another for consideration. 5-10 (b) Except as provided by Subsection (a), words used in this 5-11 subchapter and defined by Chapter 152, Tax Code, have the meanings 5-12 assigned by Chapter 152, Tax Code. 5-13 Sec. 334.102. TAX AUTHORIZED. (a) A municipality by 5-14 ordinance or a county by order may impose a tax on the gross rental 5-15 receipts from the rental in the municipality or county of a motor 5-16 vehicle. 5-17 (b) A municipality by ordinance or a county by order may 5-18 repeal or decrease the rate of a tax imposed under Subsection (a). 5-19 (c) A municipality or county may impose a tax under this 5-20 subchapter only if: 5-21 (1) an approved community venue project is or is 5-22 planned to be located in the municipality or county; and 5-23 (2) the tax is approved at an election held under 5-24 Section 334.024. 5-25 Sec. 334.103. SHORT-TERM RENTAL TAX. (a) The tax 5-26 authorized by this subchapter is imposed at a rate in increments of 5-27 one-eighth of one percent, not to exceed 10 percent, on the gross 5-28 rental receipts from the rental in the municipality or county of a 5-29 motor vehicle. 5-30 (b) The ballot proposition at the election held to adopt the 5-31 tax must specify the maximum rate of the tax to be adopted. 5-32 Sec. 334.104. RATE INCREASE. (a) A municipality or county 5-33 that has adopted a tax under this subchapter at a rate of less than 5-34 10 percent may by ordinance or order increase the rate of the tax 5-35 to a maximum of 10 percent if the increase is approved by a 5-36 majority of the registered voters of that municipality or county 5-37 voting at an election called and held for that purpose. 5-38 (b) The ballot for an election to increase the rate of the 5-39 tax shall be printed to permit voting for or against the 5-40 proposition: "The increase of the motor vehicle rental tax for the 5-41 purpose of financing _____ (insert description of community venue 5-42 project) to a maximum rate of _______ percent (insert new maximum 5-43 rate not to exceed 10 percent)." 5-44 Sec. 334.105. COMPUTATION OF TAX. (a) The owner of a motor 5-45 vehicle subject to the tax imposed under this subchapter shall 5-46 collect the tax for the benefit of the municipality or county. 5-47 (b) The owner shall add the short-term motor vehicle rental 5-48 tax imposed by the municipality or county under this subchapter, if 5-49 applicable, and the gross rental receipts tax imposed by Chapter 5-50 152, Tax Code, to the rental charge, and the sum of the taxes is a 5-51 part of the rental charge, is a debt owed to the motor vehicle 5-52 owner by the person renting the vehicle, and is recoverable at law 5-53 in the same manner as the rental charge. 5-54 Sec. 334.106. CONSUMMATION OF RENTAL. A rental of a motor 5-55 vehicle occurs in the municipality or county in which transfer of 5-56 possession of the motor vehicle occurs. 5-57 Sec. 334.107. SHORT-TERM TAX INAPPLICABLE WHEN NO STATE TAX. 5-58 The tax authorized by this subchapter does not apply to the gross 5-59 receipts from the rental of a motor vehicle unless the tax imposed 5-60 by Chapter 152, Tax Code, also applies to the rental. 5-61 Sec. 334.108. EXEMPTIONS APPLICABLE. The exemptions 5-62 provided by Subchapter E, Chapter 152, Tax Code, apply to the tax 5-63 authorized by this subchapter. 5-64 Sec. 334.109. NOTICE OF TAX. Each bill or other receipt for 5-65 a rental subject to the tax imposed under this subchapter must 5-66 contain a statement in a conspicuous location stating: "_______ 5-67 (insert name of taxing municipality or county) requires that an 5-68 additional tax of ____ percent (insert rate of tax) be imposed on 5-69 each motor vehicle rental for the purpose of financing a community 6-1 venue project." 6-2 Sec. 334.110. GROSS RECEIPTS PRESUMED SUBJECT TO TAX. All 6-3 gross receipts of an owner of a motor vehicle from the rental of 6-4 the motor vehicle are presumed to be subject to the tax imposed by 6-5 this subchapter except gross receipts for which the owner has 6-6 accepted in good faith a properly completed exemption certificate. 6-7 Sec. 334.111. RECORDS. (a) The owner of a motor vehicle 6-8 used for rental purposes shall keep for four years records and 6-9 supporting documents containing information on the amount of: 6-10 (1) gross rental receipts received from the rental of 6-11 the motor vehicle; and 6-12 (2) the tax imposed under this subchapter and paid to 6-13 the municipality or county on each motor vehicle used for rental 6-14 purposes by the owner. 6-15 (b) Mileage records are not required. 6-16 Sec. 334.112. FAILURE TO KEEP RECORDS. (a) An owner of a 6-17 motor vehicle commits an offense if the owner fails to make and 6-18 retain complete records for the four-year period required by 6-19 Section 334.111. 6-20 (b) An offense under this section is a misdemeanor 6-21 punishable by a fine of not less than $25 or more than $500. 6-22 Sec. 334.113. EFFECTIVE DATE AND ENDING DATE OF TAX. (a) A 6-23 tax imposed under this subchapter or a change in the tax rate takes 6-24 effect on the date prescribed by the ordinance or order imposing 6-25 the tax or changing the rate. 6-26 (b) A municipality or county may impose a tax under this 6-27 subchapter only if the municipality or county issues bonds or other 6-28 obligations under Section 334.043. The municipality or county may 6-29 impose the tax only while those bonds or other obligations are 6-30 outstanding and unpaid. 6-31 Sec. 334.114. TAX COLLECTION; PENALTY. (a) The owner of a 6-32 motor vehicle required to collect the tax imposed under this 6-33 subchapter shall report and send the taxes collected to the 6-34 municipality or county as provided by the ordinance or order 6-35 imposing the tax. 6-36 (b) A municipality by ordinance or a county by order may 6-37 prescribe penalties, including interest charges, for failure to 6-38 keep records required by the municipality or county, to report when 6-39 required, or to pay the tax when due. 6-40 (c) The attorney acting for the municipality or county may 6-41 bring suit against a person who fails to collect a tax under this 6-42 subchapter and to pay it over to the municipality or county as 6-43 required. 6-44 Sec. 334.115. COLLECTION PROCEDURES ON PURCHASE OF MOTOR 6-45 VEHICLE RENTAL BUSINESS. (a) If the owner of a motor vehicle 6-46 rental business that makes rentals subject to the tax imposed by 6-47 this subchapter sells the business, the successor to the seller or 6-48 the seller's assignee shall withhold an amount of the purchase 6-49 price sufficient to pay the amount of tax due until the seller 6-50 provides a receipt by a person designated by the municipality or 6-51 county to provide the receipt showing that the amount has been paid 6-52 or a certificate showing that no tax is due. 6-53 (b) The purchaser of a motor vehicle rental business who 6-54 fails to withhold an amount of the purchase price as required by 6-55 this section is liable for the amount required to be withheld to 6-56 the extent of the value of the purchase price. 6-57 (c) The purchaser of a motor vehicle rental business may 6-58 request that the person designated by the municipality or county to 6-59 provide a receipt under Subsection (a) issue a certificate stating 6-60 that no tax is due or issue a statement of the amount required to 6-61 be paid before a certificate may be issued. The person designated 6-62 by the municipality or county shall issue the certificate or 6-63 statement not later than the 60th day after the date the person 6-64 receives the request. 6-65 (d) If the person designated by the municipality or county 6-66 to provide a receipt under Subsection (a) fails to issue the 6-67 certificate or statement within the period provided by Subsection 6-68 (c), the purchaser is released from the obligation to withhold the 6-69 purchase price or pay the amount due. 7-1 Sec. 334.116. REIMBURSEMENT FOR TAX COLLECTION EXPENSES. 7-2 (a) A municipality by ordinance or a county by order may permit a 7-3 person who is required to collect a tax under this subchapter to 7-4 retain a percentage of the amount collected and required to be 7-5 reported as reimbursement to the person for the costs of collecting 7-6 the tax. 7-7 (b) A municipality or county may provide that the person may 7-8 retain the amount authorized by Subsection (a) only if the person 7-9 pays the tax and files reports as required by the municipality or 7-10 county. 7-11 Sec. 334.117. DEPOSIT OF TAX REVENUE. Revenue from the tax 7-12 imposed under this subchapter shall be deposited in the community 7-13 venue project fund of the municipality or county imposing the tax. 7-14 (Sections 334.118-334.150 reserved for expansion 7-15 SUBCHAPTER E. ADMISSIONS TAX 7-16 Sec. 334.151. TAX AUTHORIZED. (a) A municipality by 7-17 ordinance or a county by order may impose a tax on each person 7-18 admitted to an event at an approved community venue project in the 7-19 municipality or county for which the municipality or county has 7-20 issued bonds to plan, acquire, establish, develop, construct, or 7-21 renovate the approved community venue project. 7-22 (b) The municipality or county may not impose the tax under 7-23 this subchapter for admission to an event at a community venue that 7-24 is not an approved community venue project or for which the 7-25 municipality or county has not issued bonds to plan, acquire, 7-26 establish, develop, construct, or renovate the approved community 7-27 venue project. 7-28 (c) A municipality or county may impose a tax under this 7-29 subchapter only if: 7-30 (1) an approved community venue project is or will be 7-31 located in the municipality or county; and 7-32 (2) the tax is approved at an election held under 7-33 Section 334.024. 7-34 Sec. 334.152. TAX RATE. (a) The tax authorized by this 7-35 subchapter is imposed at the tax rate on each person admitted. 7-36 (b) The amount of the tax may be imposed at any uniform 7-37 monetary amount not to exceed $1. The tax may not be imposed at a 7-38 percentage rate. 7-39 (c) The ballot proposition at the election held to adopt the 7-40 tax must specify the maximum rate of the tax to be adopted. 7-41 (d) The municipality by ordinance or the county by order may 7-42 repeal or decrease the rate of the tax imposed under this 7-43 subchapter. 7-44 Sec. 334.153. RATE INCREASE. (a) A municipality or county 7-45 that has adopted a tax under this subchapter at a rate of less than 7-46 $1 a person may by ordinance or order increase the rate of the tax 7-47 to a maximum of $1 a person if the increase is approved by a 7-48 majority of the registered voters of that municipality or county 7-49 voting at an election called and held for that purpose. 7-50 (b) The ballot for an election to increase the rate of the 7-51 tax shall be printed to permit voting for or against the 7-52 proposition: "The increase of the admissions tax for the purpose 7-53 of financing _______ (insert description of community venue 7-54 project) to a maximum rate of ________ a day (insert new maximum 7-55 rate not to exceed $1)." 7-56 Sec. 334.154. COLLECTION. (a) The municipality by 7-57 ordinance or the county by order may require the owner or lessee of 7-58 an approved community venue project in the municipality or county 7-59 to collect the tax for the benefit of the municipality or county. 7-60 (b) An owner or lessee required to collect the tax under 7-61 this section shall add the tax to the admissions price, and the tax 7-62 is a part of the admissions price, is a debt owed to the owner or 7-63 lessee of the approved community venue project by the person 7-64 admitted, and is recoverable at law in the same manner as the 7-65 admissions charge. 7-66 (c) The tax imposed by this subchapter is not an occupation 7-67 tax imposed on the owner or lessee of the approved community venue 7-68 project. 7-69 Sec. 334.155. EFFECTIVE DATE AND ENDING DATE OF TAX. (a) A 8-1 tax imposed under this subchapter or a change in a tax rate takes 8-2 effect on the date prescribed by the ordinance or order imposing 8-3 the tax or changing the rate. 8-4 (b) A municipality or county may impose a tax under this 8-5 subchapter only if the municipality or county issues bonds or other 8-6 obligations under Section 334.043. The municipality or county may 8-7 impose the tax only while those bonds or other obligations are 8-8 outstanding and unpaid. 8-9 Sec. 334.156. COLLECTION OF TAX. (a) A person required to 8-10 collect a tax imposed under this subchapter shall report and send 8-11 the taxes collected to the municipality or county as provided by 8-12 the municipality or county imposing the tax. 8-13 (b) A municipality by ordinance or a county by order may 8-14 prescribe penalties, including interest charges, for failure to 8-15 keep records required by the municipality or county, to report when 8-16 required, or to pay the tax when due. The attorney acting for the 8-17 municipality or county may bring suit against a person who fails to 8-18 collect a tax under this subchapter and to pay it over to the 8-19 municipality or county as required. 8-20 (c) A municipality by ordinance or a county by order may 8-21 permit a person who is required to collect a tax under this 8-22 subchapter to retain a percentage of the amount collected and 8-23 required to be reported as reimbursement to the person for the 8-24 costs of collecting the tax. The municipality or county may 8-25 provide that the person may retain the amount only if the person 8-26 pays the tax and files reports as required by the municipality or 8-27 county. 8-28 Sec. 334.157. DEPOSIT OF TAX REVENUE. Revenue from the tax 8-29 imposed under this subchapter shall be deposited in the community 8-30 venue project fund of the municipality or county imposing the tax. 8-31 (Sections 334.158-334.200 reserved for expansion 8-32 SUBCHAPTER F. PARKING TAX 8-33 Sec. 334.201. EVENT PARKING TAX. (a) A municipality by 8-34 ordinance or a county by order may impose a tax on each motor 8-35 vehicle parking in a parking facility of an approved community 8-36 venue project. 8-37 (b) The municipality or county may impose the tax during a 8-38 period beginning not more than three hours before and ending not 8-39 more than three hours after the time an event in an approved 8-40 community venue project is scheduled to begin. The municipality or 8-41 county may not impose the tax under this subchapter during any 8-42 other time. 8-43 (c) A municipality or county may impose a tax under this 8-44 subchapter only if the tax is approved at an election held under 8-45 Section 334.024. 8-46 Sec. 334.202. TAX RATE. (a) The municipality by ordinance 8-47 or the county by order may provide that the tax is imposed at a 8-48 flat amount on each parked motor vehicle or is imposed as a 8-49 percentage of the amount charged for event parking by the owner of 8-50 the parking facility. 8-51 (b) Regardless of the method of imposition, the amount of 8-52 the tax may not exceed 50 cents for each motor vehicle. 8-53 (c) The ballot proposition at the election held to adopt the 8-54 tax must specify the maximum rate of the tax to be adopted. 8-55 (d) The municipality by ordinance or the county by order may 8-56 repeal or decrease the rate of the tax imposed under this section. 8-57 Sec. 334.203. RATE INCREASE. (a) A municipality or county 8-58 that has adopted a tax under this subchapter at a rate of less than 8-59 50 cents a vehicle may by ordinance or order increase the rate of 8-60 the tax to a maximum of 50 cents a vehicle if the increase is 8-61 approved by a majority of the registered voters of that 8-62 municipality or county voting at an election called and held for 8-63 that purpose. 8-64 (b) The ballot for an election to increase the rate of the 8-65 tax shall be printed to permit voting for or against the 8-66 proposition: "The increase of the parking tax for the purpose of 8-67 financing _______ (insert description of community venue project) 8-68 to a maximum rate of _______ (insert new maximum rate not to exceed 8-69 50 cents)." 9-1 Sec. 334.204. COLLECTION. (a) The municipality by 9-2 ordinance or the county by order may require the owner or lessee of 9-3 a parking facility to collect the tax for the benefit of the 9-4 municipality or county. 9-5 (b) An owner or lessee required to collect the tax under 9-6 this section shall add the tax to the parking charge, and the tax 9-7 is a part of the parking charge, is a debt owed to the parking 9-8 facility owner or lessee by the person parking, and is recoverable 9-9 at law in the same manner as the parking charge. 9-10 (c) The tax imposed by this subchapter is not an occupation 9-11 tax imposed on the owner or lessee of the parking facility. 9-12 Sec. 334.205. EFFECTIVE DATE AND ENDING DATE OF TAX. (a) A 9-13 tax imposed under this subchapter or a change in the tax rate takes 9-14 effect on the date prescribed by the ordinance or order imposing 9-15 the tax or changing the rate. 9-16 (b) A municipality or county may impose a tax under this 9-17 subchapter only if the municipality or county issues bonds or other 9-18 obligations under Section 334.043. The municipality or county may 9-19 impose the tax only while those bonds or other obligations are 9-20 outstanding and unpaid. 9-21 Sec. 334.206. COLLECTION OF TAX. (a) A person required to 9-22 collect a tax imposed under this subchapter shall report and send 9-23 the taxes collected to the municipality or county as provided by 9-24 the municipality or county imposing the tax. 9-25 (b) A municipality by ordinance or a county by order may 9-26 prescribe penalties, including interest charges, for failure to 9-27 keep records required by the municipality or county, to report when 9-28 required, or to pay the tax when due. The attorney acting for the 9-29 municipality or county may bring suit against a person who fails to 9-30 collect a tax under this subchapter and to pay it over to the 9-31 municipality or county as required. 9-32 (c) A municipality by ordinance or a county by order may 9-33 permit a person who is required to collect a tax under this 9-34 subchapter to retain a percentage of the amount collected and 9-35 required to be reported as reimbursement to the person for the 9-36 costs of collecting the tax. The municipality or county may 9-37 provide that the person may retain the amount only if the person 9-38 pays the tax and files reports as required by the municipality or 9-39 county. 9-40 Sec. 334.207. DEPOSIT OF TAX REVENUE. Revenue from the tax 9-41 imposed under this subchapter shall be deposited in the community 9-42 venue project fund of the municipality or county imposing the tax. 9-43 CHAPTER 335. COMMUNITY VENUE DISTRICTS 9-44 SUBCHAPTER A. GENERAL PROVISIONS 9-45 Sec. 335.001. DEFINITIONS. In this chapter: 9-46 (1) "Approved community venue project" has the meaning 9-47 assigned by Section 334.001, except that the approval of the 9-48 project must occur under this chapter. 9-49 (2) "Board" means the board of directors of a 9-50 community venue district. 9-51 (3) "District" means a community venue district 9-52 created under this chapter. 9-53 (4) "Related infrastructure" has the meaning assigned 9-54 by Section 334.001. 9-55 (5) "Community venue" has the meaning assigned by 9-56 Section 334.001. 9-57 (6) "Community venue project" has the meaning assigned 9-58 by Section 334.001, except that the actions described by that 9-59 section must occur under this chapter. 9-60 Sec. 335.002. APPLICATION OF CHAPTER. This chapter applies 9-61 only to: 9-62 (1) a county with a population of less than 1.5 9-63 million; 9-64 (2) a municipality located in a county described by 9-65 Subdivision (1); 9-66 (3) a county adjacent to a county described by 9-67 Subdivision (1); and 9-68 (4) a municipality located in a county described by 9-69 Subdivision (3). 10-1 Sec. 335.003. APPLICATION TO COMMUNITY VENUE CONSTRUCTED 10-2 UNDER OTHER LAW. A district may use this chapter for a community 10-3 venue project relating to a community venue and related 10-4 infrastructure planned, acquired, established, developed, 10-5 constructed, or renovated under other law, including Section 4B, 10-6 Development Corporation Act of 1979 (Article 5190.6, Vernon's Texas 10-7 Civil Statutes), or Subchapter E, Chapter 451, Transportation Code. 10-8 Sec. 335.004. OTHER USES OF COMMUNITY VENUE PERMITTED. This 10-9 chapter does not prohibit the use of a community venue for an event 10-10 that is not related to sports or athletics, such as a 10-11 community-related event, including a rodeo, livestock show, 10-12 agricultural exposition, public school event, or other promotional 10-13 or entertainment event. 10-14 (Sections 335.005-335.020 reserved for expansion 10-15 SUBCHAPTER B. COMMUNITY VENUE DISTRICT 10-16 Sec. 335.021. CREATION. Two or more counties, two or more 10-17 municipalities, or one or more municipalities and one or more 10-18 counties may create a community venue district under this chapter 10-19 to plan, acquire, establish, develop, construct, or renovate one or 10-20 more community venue projects in the district subject to voter 10-21 approval under Subchapter D. 10-22 Sec. 335.022. ORDER CREATING DISTRICT. Two or more 10-23 counties, two or more municipalities, or one or more municipalities 10-24 and one or more counties may create a district under this chapter 10-25 by adopting concurrent orders. The concurrent orders must: 10-26 (1) contain identical provisions; 10-27 (2) define the boundaries of the district to be 10-28 coextensive with each creating political subdivision; and 10-29 (3) designate the number of directors and the manner 10-30 of appointment in accordance with Section 335.031. 10-31 Sec. 335.023. POLITICAL SUBDIVISION; OPEN MEETINGS. (a) A 10-32 district is a political subdivision of the creating political 10-33 subdivisions and of this state. 10-34 (b) A district is subject to Chapter 551, Government Code. 10-35 (Sections 335.024-335.030 reserved for expansion) 10-36 SUBCHAPTER C. BOARD OF DIRECTORS 10-37 Sec. 335.031. COMPOSITION AND APPOINTMENT OF BOARD. (a) A 10-38 district is governed by a board of at least four directors. 10-39 (b) The board is appointed by the governing body of the 10-40 political subdivisions that create the district. Each political 10-41 subdivision is entitled to an equal number of directors. 10-42 (c) Directors serve staggered two-year terms. A director 10-43 may be removed by the appointing political subdivision at any time 10-44 without cause. Successor directors are appointed in the same 10-45 manner as the original appointees. 10-46 (d) To qualify to serve as a director, a person must be a 10-47 resident of the appointing political subdivision. An employee, 10-48 officer, or member of the governing body of the appointing 10-49 political subdivision may serve as a director but may not have a 10-50 personal interest in a contract executed by the district other than 10-51 as an employee, officer, or member of the governing body of the 10-52 political subdivision. 10-53 Sec. 335.032. COMPENSATION. A board member is not entitled 10-54 to compensation but is entitled to reimbursement for actual and 10-55 necessary expenses. 10-56 Sec. 335.033. MEETINGS. The board shall conduct its 10-57 meetings in the district. 10-58 Sec. 335.034. OFFICERS. The board shall designate from the 10-59 members of the board a presiding officer, a secretary, and other 10-60 officers the board considers necessary. 10-61 (Sections 335.035-335.050 reserved for expansion 10-62 SUBCHAPTER D. COMMUNITY VENUE PROJECTS 10-63 Sec. 335.051. RESOLUTION AUTHORIZING PROJECT. (a) A 10-64 district by resolution may provide for the planning, acquisition, 10-65 establishment, development, construction, or renovation of a 10-66 community venue project if: 10-67 (1) the comptroller determines under Section 335.052 10-68 or 335.053 that the implementation of the resolution will not have 10-69 a negative fiscal impact on state revenue; and 11-1 (2) the resolution is approved by a majority of the 11-2 qualified voters of each political subdivision that created the 11-3 district voting at separate elections called and held for that 11-4 purpose under Section 335.054. 11-5 (b) The resolution must designate the community venue 11-6 project and each method of financing authorized by this chapter 11-7 that the district wants to use to finance the project. A 11-8 resolution may designate more than one method of financing. 11-9 Sec. 335.052. STATE FISCAL IMPACT ANALYSIS. (a) Before 11-10 calling an election on the resolution under Section 335.054, the 11-11 district shall send a copy of the resolution to the comptroller. 11-12 (b) Before the 15th day after the date the comptroller 11-13 receives the copy of the resolution, the comptroller shall: 11-14 (1) perform an analysis to determine if approval and 11-15 implementation of the resolution will have a negative fiscal impact 11-16 on state revenue; and 11-17 (2) provide to the district written notice of the 11-18 results of the analysis. 11-19 (c) If the comptroller does not complete the analysis and 11-20 provide the notice before the 15th day after the date the 11-21 comptroller receives the copy of the resolution, the comptroller is 11-22 considered to have determined that approval and implementation of 11-23 the resolution will not have a negative fiscal impact on state 11-24 revenue. 11-25 Sec. 335.053. APPEAL OF COMPTROLLER DETERMINATION. (a) If 11-26 the comptroller determines under Section 335.052 that 11-27 implementation of the resolution will have a negative fiscal impact 11-28 on state revenue, the district may: 11-29 (1) contest the finding by filing an appeal with the 11-30 comptroller not later than the 10th day after the date the district 11-31 receives the written notice under Section 335.052; or 11-32 (2) ask the comptroller to provide information on how 11-33 to change the resolution so that implementation will not have a 11-34 negative fiscal impact on state revenue. 11-35 (b) Before the 11th day after the date the comptroller 11-36 receives the appeal or request for information under Subsection 11-37 (a), the comptroller shall, as appropriate: 11-38 (1) perform a new analysis to determine if 11-39 implementation of the resolution will have a negative fiscal impact 11-40 on state revenue and provide to the district written notice of the 11-41 results of the analysis; or 11-42 (2) provide to the district written information on how 11-43 to change the resolution so that implementation will not have a 11-44 negative fiscal impact on state revenue. 11-45 (c) If the comptroller determines that implementation will 11-46 have a negative fiscal impact on state revenue, the written 11-47 analysis required under Subsection (b)(1) must include information 11-48 on how to change the resolution so that implementation will not 11-49 have a negative fiscal impact on state revenue. 11-50 (d) If the comptroller does not comply with Subsection (b) 11-51 before the 11th day after the date the comptroller receives the 11-52 appeal or request for information, the comptroller is considered to 11-53 have determined that approval and implementation of the resolution 11-54 will not have a negative fiscal impact on state revenue. 11-55 Sec. 335.054. ELECTION. (a) If the comptroller determines 11-56 under Section 335.052 or 335.053 that implementation of the 11-57 resolution will not have a negative fiscal impact on state revenue, 11-58 the board may order a separate election in each political 11-59 subdivision that created the district on the question of approving 11-60 and implementing the resolution. The elections shall be held on 11-61 the same day. 11-62 (b) The order calling the elections must: 11-63 (1) allow the voters to vote separately on each 11-64 community venue project; 11-65 (2) designate the community venue project; 11-66 (3) designate each method of financing authorized by 11-67 this chapter that the district wants to use to finance the project 11-68 and the maximum rate of each method; and 11-69 (4) allow the voters to vote, in the same proposition 12-1 or in separate propositions, on each method of financing authorized 12-2 by this chapter that the district wants to use to finance the 12-3 project and the maximum rate of each method. 12-4 (c) The ballot at the elections held under this section must 12-5 be printed to permit voting for or against the proposition: 12-6 "Authorizing _________ (insert name of district) to __________ 12-7 (insert description of community venue project) and to impose a 12-8 __________ tax (insert type of tax) at the rate of ________ (insert 12-9 maximum rate) for the purpose of financing the community venue 12-10 project." 12-11 (d) If more than one method of financing is to be voted on 12-12 in one proposition, the ballot must be printed to permit voting for 12-13 or against the proposition: "Authorizing _________ (insert name of 12-14 district) to __________ (insert description of community venue 12-15 project) and to impose a __________ tax at the rate of ________ 12-16 (insert each type of tax and the maximum rate of each tax) for the 12-17 purpose of financing the community venue project." 12-18 (e) If a majority of the votes cast at the election in each 12-19 creating political subdivision approves the proposition authorizing 12-20 the project, the district may implement the resolution. If a 12-21 majority of the votes cast in one or more of the creating political 12-22 subdivisions disapproves the proposition authorizing the project, 12-23 the district may not implement the resolution. If the project is 12-24 approved but one or more financing methods contained in separate 12-25 propositions are disapproved, the district may use only the 12-26 approved financing methods. 12-27 (f) The Election Code governs an election held under this 12-28 chapter, except that the uniform election date provisions of 12-29 Section 41.001(a), Election Code, do not apply to an election 12-30 ordered under this section. 12-31 (Sections 335.055-335.070 reserved for expansion 12-32 SUBCHAPTER E. POWERS AND DUTIES 12-33 Sec. 335.071. GENERAL POWERS OF DISTRICT. (a) A district 12-34 may: 12-35 (1) perform any act necessary to the full exercise of 12-36 the district's powers; 12-37 (2) accept a grant or loan from a: 12-38 (A) department or agency of the United States; 12-39 (B) department, agency, or political subdivision 12-40 of this state; or 12-41 (C) public or private person; 12-42 (3) acquire, sell, lease, convey, or otherwise dispose 12-43 of property or an interest in property, including an approved 12-44 community venue project, under terms and conditions determined by 12-45 the district; 12-46 (4) employ necessary personnel; and 12-47 (5) adopt rules to govern the operation of the 12-48 district and its employees and property. 12-49 (b) A district may contract with a public or private person, 12-50 including a sports team, club, organization, or other entity, to: 12-51 (1) plan, acquire, establish, develop, construct, or 12-52 renovate an approved community venue project; or 12-53 (2) perform any other act the district is authorized 12-54 to perform under this chapter. 12-55 (c) If the district contracts with a sports team or club for 12-56 the construction, renovation, or operation of an approved community 12-57 venue project, the district is not a party to a subsequent contract 12-58 between the team or club and another person relating to the 12-59 project. The competitive bidding laws, including Chapter 271, do 12-60 not apply to a contract between a team or club and another person 12-61 under this subsection. 12-62 (d) A district may impose any tax a county may impose under 12-63 Chapter 334, subject to approval of the voters of the district as 12-64 prescribed by this chapter and Chapter 334. The district shall 12-65 impose the tax in the same manner as a county. 12-66 (e) A district may not levy an ad valorem tax. 12-67 Sec. 335.072. COMMUNITY VENUE PROJECT FUND. (a) A district 12-68 in which an approved community venue project is located shall 12-69 establish by resolution a fund known as the community venue project 13-1 fund. 13-2 (b) The district shall deposit into the community venue 13-3 project fund: 13-4 (1) the proceeds from any tax imposed by the district; 13-5 (2) all revenue from the sale of bonds or other 13-6 obligations by the district; and 13-7 (3) any other money required by law to be deposited in 13-8 the fund. 13-9 (c) The district may deposit into the community venue 13-10 project fund: 13-11 (1) money derived from innovative funding concepts 13-12 such as the sale or lease of luxury boxes or the sale of licenses 13-13 for personal seats; and 13-14 (2) any other revenue derived from the approved 13-15 community venue project, including stadium rental payments and 13-16 revenue from concessions and parking. 13-17 (d) The district may use money in the community venue 13-18 project fund only to: 13-19 (1) pay the costs of planning, acquiring, 13-20 establishing, developing, constructing, or renovating one or more 13-21 approved community venue projects in the district; 13-22 (2) pay the principal of, interest on, and other costs 13-23 relating to bonds or other obligations issued by the district or to 13-24 refund bonds or other obligations; or 13-25 (3) pay the costs of operating or maintaining one or 13-26 more approved community venue projects during the planning, 13-27 acquisition, establishment, development, construction, or 13-28 renovation or while bonds or other obligations for the planning, 13-29 acquisition, establishment, development, construction, or 13-30 renovation are outstanding. 13-31 (e) Money deposited into the community venue project fund, 13-32 including money deposited under Subsection (c), is the property of 13-33 the district depositing the money. 13-34 Sec. 335.073. BONDS AND OTHER OBLIGATIONS. (a) A district 13-35 in which an approved community venue project is located may issue 13-36 bonds, including revenue bonds and refunding bonds, or other 13-37 obligations to pay the costs of the approved community venue 13-38 project. 13-39 (b) The bonds or other obligations and the proceedings 13-40 authorizing the bonds or other obligations shall be submitted to 13-41 the attorney general for review and approval as required by Article 13-42 3, Chapter 53, Acts of the 70th Legislature, 2nd Called Session, 13-43 1987 (Article 717k-8, Vernon's Texas Civil Statutes). 13-44 (c) The bonds or other obligations must be payable from and 13-45 secured by the revenue in the community venue project fund. 13-46 (d) The bonds or other obligations may mature serially or 13-47 otherwise not more than 30 years from their date of issuance. 13-48 (e) The bonds or other obligations are not a debt of and do 13-49 not create a claim for payment against the revenue or property of 13-50 the district other than an approved community venue project for 13-51 which the bonds are issued. 13-52 Sec. 335.074. PUBLIC PURPOSE OF PROJECT. (a) The 13-53 legislature finds for all constitutional and statutory purposes 13-54 that an approved community venue project is owned, used, and held 13-55 for public purposes by the district. 13-56 (b) Section 25.07(a), Tax Code, does not apply to a 13-57 leasehold or other possessory interest granted by the district 13-58 while the district owns the project. 13-59 (c) The project is exempt from taxation under Section 11.11, 13-60 Tax Code, while the district owns the project. 13-61 SECTION 2. The importance of this legislation and the 13-62 crowded condition of the calendars in both houses create an 13-63 emergency and an imperative public necessity that the 13-64 constitutional rule requiring bills to be read on three several 13-65 days in each house be suspended, and this rule is hereby suspended, 13-66 and that this Act take effect and be in force from and after its 13-67 passage, and it is so enacted. 13-68 * * * * *