By: Whitmire, et al. S.B. No. 944
A BILL TO BE ENTITLED
AN ACT
1-1 relating to the financing of venues for tourism, sports, arts, and
1-2 entertainment and to related infrastructure; authorizing the
1-3 imposition of certain local taxes and the issuance of local bonds;
1-4 providing civil penalties.
1-5 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
1-6 SECTION 1. Subtitle C, Title 10, Local Government Code, is
1-7 amended by adding Chapter 334 to read as follows:
1-8 CHAPTER 334. TOURISM, SPORTS, ARTS, AND ENTERTAINMENT
1-9 VENUE AUTHORITIES
1-10 SUBCHAPTER A. GENERAL PROVISIONS
1-11 Sec. 334.001. DEFINITIONS. In this chapter:
1-12 (1) "Approved venue project" means a venue project
1-13 that either:
1-14 (A) is a prior approved venue project; or
1-15 (B) has been approved under this chapter by the
1-16 voters of a venue authority.
1-17 (2) "Authority" means a venue authority created under
1-18 this chapter.
1-19 (3) "Board" means the board of directors of a venue
1-20 authority.
1-21 (4) "Governing body" means the governing body of a
1-22 municipality or the commissioners court of a county.
1-23 (5) "Prior approved venue project" means a new or
2-1 renovated stadium, arena, or other facility for a professional
2-2 baseball or football team that was approved by the voters of a
2-3 political subdivision under other law prior to the effective date
2-4 of this chapter.
2-5 (6) "Related infrastructure" means any store,
2-6 restaurant, concession, automobile parking facility, area
2-7 transportation facility, road, street, water or sewer facility, or
2-8 other on-site or off-site improvement that relates to and enhances
2-9 the use, value, or appeal of a venue and any other expenditure
2-10 reasonably necessary to construct, improve, renovate, or expand a
2-11 venue.
2-12 (7) "Venue" means:
2-13 (A) an arena, coliseum, stadium, or other type
2-14 of area or facility:
2-15 (i) that is primarily used or is planned
2-16 for the primary use for one or more professional or amateur sports
2-17 or athletic events;
2-18 (ii) for which a fee for admission to the
2-19 sports or athletic events, other than occasional civic, charitable,
2-20 or promotional events, is charged or is planned to be charged; and
2-21 (iii) that is used for rodeo,
2-22 agricultural, or livestock events, exhibitions, and fairs;
2-23 (B) a convention center facility or related
2-24 improvement such as a convention center, civic center, civic center
2-25 building, civic center hotel, auditorium, theater, opera house,
3-1 music hall, or exhibition or rehearsal hall and related facility or
3-2 a museum, aquarium, park, or plaza located in the vicinity of a
3-3 municipally owned convention center and facility; or
3-4 (C) a tourist development area along an inland
3-5 waterway.
3-6 (8) "Venue project" means a venue and related
3-7 infrastructure that is planned, acquired, established, developed,
3-8 constructed, or renovated under this chapter.
3-9 Sec. 334.002. APPLICATION OF CHAPTER. This chapter applies
3-10 only to:
3-11 (1) a municipality with a population of more than 1.2
3-12 million; and
3-13 (2) a county with a population of more than 2.2
3-14 million.
3-15 Sec. 334.003. APPLICATION TO VENUE CONSTRUCTED UNDER OTHER
3-16 LAW. An authority may use this chapter for a venue project
3-17 relating to a venue and related infrastructure planned, acquired,
3-18 established, developed, constructed, or renovated under other law,
3-19 including Section 4B, Development Corporation Act of 1979 (Article
3-20 5190.6, Vernon's Texas Civil Statutes), or Subchapter E, Chapter
3-21 451, Transportation Code.
3-22 Sec. 334.004. OTHER USES OF VENUE PERMITTED. This chapter
3-23 does not prohibit the use of a venue project for an event that is
3-24 not related to sports or athletics, such as a community-related
3-25 event.
4-1 (Sections 334.005 to 334.020 reserved for expansion
4-2 SUBCHAPTER B. VENUE AUTHORITY
4-3 Sec. 334.021. CREATION. A municipality and a county may
4-4 create a venue authority under this chapter to plan, acquire,
4-5 establish, develop, construct, or renovate one or more venue
4-6 projects in the authority subject to approval by the voters of the
4-7 authority as provided in Subchapter D.
4-8 Sec. 334.022. ORDER CREATING AUTHORITY. A municipality and
4-9 a county may create an authority under this chapter by adopting a
4-10 concurrent ordinance and order. A concurrent ordinance and order
4-11 must:
4-12 (1) contain substantially identical provisions; and
4-13 (2) define the boundaries of the authority to be
4-14 coextensive with the boundaries of the combined territory of the
4-15 municipality and the county.
4-16 Sec. 334.023. POLITICAL SUBDIVISION; OPEN MEETINGS; OPEN
4-17 RECORDS. (a) An authority is a political subdivision of this
4-18 state.
4-19 (b) An authority is subject to Chapters 551 and 552,
4-20 Government Code.
4-21 (Sections 334.024 to 334.030 reserved for expansion
4-22 SUBCHAPTER C. BOARD OF DIRECTORS
4-23 Sec. 334.031. COMPOSITION AND APPOINTMENT OF BOARD. (a) An
4-24 authority is governed by a board of at least five directors,
4-25 including the chair of the board.
5-1 (b) The board is appointed by the governing bodies of the
5-2 municipality and the county that create the authority. The
5-3 governing bodies are entitled to appoint an equal number of
5-4 directors other than the chair, who shall be jointly appointed by
5-5 the governing bodies.
5-6 (c) Directors serve staggered two-year terms. A director
5-7 may be removed by the appointing governing body, and the chair may
5-8 be removed by both governing bodies acting jointly, at any time
5-9 without cause. Successor directors are appointed in the same
5-10 manner as the appointees whom they succeed.
5-11 (d) To qualify to serve as a director, a person other than
5-12 the chair must be a resident of the municipality or county whose
5-13 governing body appoints the person, and the chair must be a
5-14 resident of at least the county. An employee, officer, or member
5-15 of the governing body of the municipality or county may serve as a
5-16 director but may not have a personal interest in a contract
5-17 executed by the authority other than as an employee, officer, or
5-18 member of the governing body of the municipality or county.
5-19 Sec. 334.032. COMPENSATION. A board member is not entitled
5-20 to compensation but is entitled to reimbursement for actual and
5-21 necessary expenses.
5-22 Sec. 334.033. MEETINGS. The board shall conduct its
5-23 meetings in the authority.
5-24 Sec. 334.034. OFFICERS. The board shall designate from
5-25 among its members a secretary and other officers, except the chair,
6-1 that the board considers necessary.
6-2 (Sections 334.035 to 334.050 reserved for expansion
6-3 SUBCHAPTER D. VENUE PROJECTS
6-4 Sec. 334.051. AUTHORITY TO PROVIDE PROJECTS. (a) An
6-5 authority may provide for the planning, acquisition, establishment,
6-6 development, construction, or renovation of a venue project if the
6-7 project is:
6-8 (1) a prior approved venue project; or
6-9 (2) included in a resolution that is adopted by the
6-10 board of the authority and then approved by a majority of the
6-11 registered voters of the authority voting at an election called and
6-12 held for that purpose under Section 334.052.
6-13 (b) The resolution shall designate the venue project and
6-14 each method of financing authorized by this chapter that the
6-15 authority wants to use to finance the project. The resolution may
6-16 designate more than one method of financing.
6-17 Sec. 334.052. ELECTION. (a) The board may order an
6-18 election within the authority's boundaries, which are coextensive
6-19 with the boundaries of the combined territory of the municipality
6-20 and the county that created the authority, on the question of
6-21 approving and implementing a resolution for a venue project, other
6-22 than a prior approved venue project.
6-23 (b) The order calling the election must:
6-24 (1) designate the venue project or projects;
6-25 (2) if more than one venue project is designated,
7-1 allow the voters to vote separately on each project;
7-2 (3) designate each method of financing authorized by
7-3 this chapter that the authority wants to use to finance the project
7-4 and the maximum rate of each method; and
7-5 (4) allow the voters to vote, in the same proposition
7-6 or in separate propositions, on the method or methods of financing
7-7 authorized by this chapter that the authority wants to use to
7-8 finance the project or projects and the maximum rates of each
7-9 method or methods.
7-10 (c) The ballot at an election held under this section must
7-11 be printed to permit voting for or against the
7-12 proposition: "Authorizing __________________ (insert name of
7-13 authority) to _________________________ (insert description of
7-14 venue project) and to impose a tax ___________________ (insert type
7-15 of tax or taxes) at the rate of _________________________ (insert
7-16 maximum rate or rates of each tax) for the purpose of financing the
7-17 venue project."
7-18 (d) If a majority of the votes cast at the election approves
7-19 a project or projects and the method or methods of financing the
7-20 project or projects, as required, the authority may implement the
7-21 resolution.
7-22 (e) The Election Code governs an election held under this
7-23 chapter, except that the uniform election date provisions of
7-24 Section 41.001(a), Election Code, do not apply to an election
7-25 ordered under this section.
8-1 (Sections 334.053 to 334.070 reserved for expansion
8-2 SUBCHAPTER E. POWERS AND DUTIES
8-3 Sec. 334.071. GENERAL POWERS OF AUTHORITY. (a) An
8-4 authority may:
8-5 (1) perform any act necessary to the full exercise of
8-6 the authority's powers;
8-7 (2) accept a gift, grant, or loan from a:
8-8 (A) department or agency of the United States;
8-9 (B) department, agency, or political subdivision
8-10 of this state; or
8-11 (C) public or private person;
8-12 (3) acquire, sell, lease, convey, or otherwise dispose
8-13 of property or an interest in property, including an approved venue
8-14 project, under terms and conditions determined by the authority,
8-15 provided that in any such transaction with another public entity,
8-16 the public purpose found by the legislature in Section 334.074
8-17 shall be deemed adequate consideration for the authority and the
8-18 other public entity;
8-19 (4) employ necessary personnel; and
8-20 (5) adopt rules to govern the operation of the
8-21 authority and its employees and property.
8-22 (b) An authority may contract with a public or private
8-23 person, including the county and municipality that created the
8-24 authority, a sports team, club, organization, or other entity, to:
8-25 (1) plan, acquire, establish, develop, construct, or
9-1 renovate a venue project under this chapter or any other law; or
9-2 (2) perform any other act the authority is authorized
9-3 to perform under this chapter.
9-4 (c) The competitive bidding laws, including Chapter 271, do
9-5 not apply to the planning, acquisition, establishment, development,
9-6 construction, or renovation of a prior approved venue project that
9-7 is a new stadium for a professional baseball team.
9-8 (d) An authority may not levy an ad valorem tax.
9-9 Sec. 334.072. VENUE PROJECT FUND. (a) An authority shall
9-10 establish by resolution a fund known as the venue project fund.
9-11 The authority may establish separate accounts within the fund for
9-12 the various revenue sources.
9-13 (b) The authority shall deposit into the venue project fund:
9-14 (1) the proceeds from any tax imposed by the
9-15 authority; and
9-16 (2) any other money required by law to be deposited in
9-17 the fund.
9-18 (c) The authority may deposit into the venue project fund:
9-19 (1) money derived from innovative funding concepts
9-20 such as the sale or lease of luxury boxes or the sale of licenses
9-21 for personal seats; and
9-22 (2) any other revenue derived from the approved venue
9-23 project, including stadium rental payments and revenue from
9-24 concessions and parking.
9-25 (d) The authority may use money in the venue project fund
10-1 only to:
10-2 (1) pay or reimburse the costs of planning, acquiring,
10-3 establishing, developing, constructing, or renovating one or more
10-4 approved venue projects in the authority;
10-5 (2) pay the principal of, interest on, and other costs
10-6 relating to bonds or other obligations issued by the authority or
10-7 to refund bonds or other obligations; or
10-8 (3) pay the costs of operating or maintaining one or
10-9 more approved venue projects during the planning, acquisition,
10-10 establishment, development, construction, or renovation or while
10-11 bonds or other obligations for the planning, acquisition,
10-12 establishment, development, construction, or renovation are
10-13 outstanding.
10-14 (e) Money deposited into the venue project fund, including
10-15 money deposited under Subsection (c), is the property of the
10-16 authority depositing the money.
10-17 Sec. 334.073. BONDS AND OTHER OBLIGATIONS. (a) With the
10-18 prior consent of the governing bodies of the municipality and the
10-19 county, an authority in which an approved venue project is located
10-20 may issue bonds, including revenue bonds and refunding bonds, or
10-21 other obligations to pay the costs of the approved venue project.
10-22 (b) Proceeds from the sale of bonds or other obligations
10-23 issued by an authority to provide an approved venue project shall
10-24 be deposited in accordance with the documents pursuant to which the
10-25 bonds or other obligations are issued and may be used to reimburse
11-1 the authority, or any other public or private party designated by
11-2 the authority, for costs attributable to the project that were paid
11-3 or incurred before the date of issuance of the bonds or other
11-4 obligations.
11-5 (c) An authority is an issuer and a venue project is a
11-6 public utility and an eligible project for purposes of Chapter 656,
11-7 Acts of the 68th Legislature, Regular Session, 1983 (Article 717q,
11-8 Vernon's Texas Civil Statutes).
11-9 (d) The bonds or other obligations and the proceedings
11-10 authorizing the bonds or other obligations shall be submitted to
11-11 the attorney general for review and approval as required by Article
11-12 3, Chapter 53, Acts of the 70th Legislature, 2nd Called Session,
11-13 1987 (Article 717k-8, Vernon's Texas Civil Statutes).
11-14 (e) The bonds or other obligations must be payable from and
11-15 secured by the revenues in the venue project fund.
11-16 (f) The bonds or other obligations may mature serially or
11-17 otherwise not more than 30 years from their date of issuance.
11-18 (g) The bonds or other obligations are not a debt of and do
11-19 not create a claim for payment against the revenue or property of
11-20 the authority other than the revenue sources pledged to pay the
11-21 bonds or other obligations and an approved venue project for which
11-22 the bonds or other obligations are issued.
11-23 Sec. 334.074. PUBLIC PURPOSE OF PROJECT. (a) The
11-24 legislature finds for all constitutional and statutory purposes
11-25 that an approved venue project is owned, used, and held for public
12-1 purposes by the authority.
12-2 (b) The project is exempt from taxation under Section 11.11,
12-3 Tax Code, while the authority owns the project.
12-4 Sec. 334.075. CONTRIBUTION OR DEDICATION OF CERTAIN REVENUE
12-5 BY POLITICAL SUBDIVISION. (a) A political subdivision, including
12-6 a metropolitan rapid transit authority created under Chapter 451,
12-7 Transportation Code, may contribute or dedicate to the authority
12-8 all or part of the sales and use tax revenue received by the
12-9 political subdivision that is generated, paid, or collected by any
12-10 or all businesses operating in an approved venue project. If the
12-11 political subdivision contributes or dedicates the revenue to
12-12 assist the authority in securing bonds or other obligations,
12-13 including refunding bonds, that are issued to provide funding for
12-14 an approved venue project, the political subdivision may not make a
12-15 contribution or dedication for that purpose after the date on which
12-16 those bonds or other obligations are no longer outstanding.
12-17 (b) A political subdivision may contribute or grant sales
12-18 and use tax revenue under this section only if the governing body
12-19 or governing board of the political subdivision determines that the
12-20 approved venue project from which the revenue was or will be
12-21 derived will contribute to the economic, cultural, or recreational
12-22 development or well-being of the residents of the political
12-23 subdivision.
12-24 (c) The authority shall deposit revenue contributed or
12-25 dedicated under this section in the venue project fund and may use
13-1 the revenue in the same manner as any other money deposited in the
13-2 fund.
13-3 (d) A contribution or dedication of revenue under this
13-4 section is not a "method of financing" of the authority as that
13-5 term is used in Subchapter D.
13-6 (Sections 334.076 to 334.100 reserved for expansion
13-7 SUBCHAPTER F. SHORT-TERM MOTOR VEHICLE RENTAL TAX
13-8 Sec. 334.101. DEFINITIONS. (a) In this subchapter:
13-9 (1) "Motor vehicle" means a self-propelled vehicle
13-10 designed principally to transport persons or property on a public
13-11 roadway and includes a passenger car, van, station wagon, sports
13-12 utility vehicle, and truck. The term does not include a:
13-13 (A) trailer, semitrailer, house trailer, truck
13-14 having a manufacturer's rating of more than one-half ton, or
13-15 road-building machine;
13-16 (B) device moved only by human power;
13-17 (C) device used exclusively on stationary rails
13-18 or tracks;
13-19 (D) farm machine; or
13-20 (E) mobile office.
13-21 (2) "Rental" means an agreement by the owner of a
13-22 motor vehicle to authorize, for not longer than 30 days, the
13-23 exclusive use of the vehicle to another for consideration.
13-24 (3) "Place of business of the owner" means an
13-25 established outlet, office, or location operated by the owner of a
14-1 motor vehicle or the owner's agent or employee for the purpose of
14-2 renting motor vehicles and includes any location at which three or
14-3 more rentals are made during a year.
14-4 (b) Except as provided by Subsection (a), words used in this
14-5 subchapter and defined by Chapter 152, Tax Code, have the meanings
14-6 assigned by Chapter 152, Tax Code.
14-7 Sec. 334.102. TAX AUTHORIZED. (a) Subject to the
14-8 provisions of Section 334.112, an authority by order may impose a
14-9 tax on the rental in the authority of a motor vehicle.
14-10 (b) An authority by order may repeal or decrease the rate of
14-11 a tax imposed under Subsection (a).
14-12 (c) An authority may impose a tax under this subchapter only
14-13 if:
14-14 (1) the tax is imposed as a method of financing a
14-15 prior approved venue project; or
14-16 (2) the venue project and the tax are approved at an
14-17 election held under Section 334.052.
14-18 Sec. 334.103. SHORT-TERM RENTAL TAX. (a) The tax
14-19 authorized by this subchapter is imposed at a rate in increments of
14-20 one-eighth of one percent, not to exceed five percent, on the gross
14-21 rental receipts from the rental in the authority of a motor
14-22 vehicle.
14-23 (b) The ballot proposition at an election held to adopt the
14-24 tax must specify the maximum rate of the tax to be adopted.
14-25 Sec. 334.104. RATE INCREASE. An authority that has adopted
15-1 a tax under this subchapter at a rate of less than five percent may
15-2 by order increase the rate of the tax to a maximum of five percent
15-3 if the increase is approved by a majority of the registered voters
15-4 of the authority voting at an election called under Section
15-5 334.052.
15-6 Sec. 334.105. COMPUTATION OF TAX. (a) The owner of a motor
15-7 vehicle subject to the tax imposed under this subchapter shall
15-8 collect the tax for the benefit of the authority.
15-9 (b) The owner shall add the short-term motor vehicle rental
15-10 tax imposed by the authority under this subchapter, if applicable,
15-11 and the gross rental receipts tax imposed by Chapter 152, Tax Code,
15-12 to the rental charge, and the sum of the taxes is a part of the
15-13 rental charge, is a debt owed to the motor vehicle owner by the
15-14 person renting the vehicle, and is recoverable at law in the same
15-15 manner as the rental charge.
15-16 Sec. 334.106. CONSUMMATION OF RENTAL. A rental of a motor
15-17 vehicle occurs in the authority in which transfer of possession of
15-18 the motor vehicle occurs.
15-19 Sec. 334.107. EXEMPTIONS APPLICABLE. The exemptions
15-20 provided by Subchapter E, Chapter 152, Tax Code, apply to the tax
15-21 authorized by this subchapter.
15-22 Sec. 334.108. NOTICE OF TAX. Each bill or other receipt for
15-23 a rental subject to the tax imposed under this subchapter must
15-24 contain a statement in a conspicuous location
15-25 stating: "_____________________ (insert name of taxing authority)
16-1 requires that an additional tax of ____________________ percent
16-2 (insert rate of tax) be imposed on each motor vehicle rental for
16-3 the purpose of financing a venue project."
16-4 Sec. 334.109. GROSS RECEIPTS PRESUMED SUBJECT TO TAX. All
16-5 gross receipts of an owner of a motor vehicle from the rental of
16-6 the motor vehicle are presumed to be subject to the tax imposed by
16-7 this subchapter, except for gross receipts for which the owner has
16-8 accepted in good faith a properly completed exemption certificate.
16-9 Sec. 334.110. RECORDS. (a) The owner of a motor vehicle
16-10 used for rental purposes shall keep for four years after the date
16-11 of rental records and supporting documents containing the following
16-12 information on the amount of:
16-13 (1) gross rental receipts received from the rental of
16-14 the motor vehicle; and
16-15 (2) the tax imposed under this subchapter and paid to
16-16 the authority on each motor vehicle used for rental purposes by the
16-17 owner.
16-18 (b) Mileage records are not required.
16-19 Sec. 334.111. FAILURE TO KEEP RECORDS. (a) An owner of a
16-20 motor vehicle commits an offense if the owner fails to make and
16-21 retain complete records for the four-year period required by
16-22 Section 334.110.
16-23 (b) An offense under this section is a misdemeanor
16-24 punishable by a fine of not less than $25 or more than $500.
16-25 Sec. 334.112. EFFECTIVE DATE AND DURATION OF TAX. (a) A
17-1 tax imposed under this subchapter or a change in the tax rate takes
17-2 effect on the date prescribed by the order imposing the tax or
17-3 changing the rate, provided that, effective October 1, 1997, as a
17-4 method of financing prior approved venue projects, there shall be
17-5 imposed throughout the territory of an authority created pursuant
17-6 to this chapter a tax under this subchapter at the maximum uniform
17-7 monetary amount on each day or part of a day of a person's rental
17-8 of a motor vehicle in the territory of the authority. If an
17-9 authority has not been created on October 1, 1997, the tax imposed
17-10 under this subchapter shall be imposed on creation of an authority.
17-11 (b) If an authority (1) prior to October 1, 1997, or within
17-12 30 days after the date of its creation, adopts a resolution that
17-13 rejects the tax imposed by Subsection (a) or (2) does not issue
17-14 bonds or other obligations secured by such tax to finance a prior
17-15 approved venue project within 24 months after October 1, 1997, or
17-16 the date of its creation, the tax shall be abolished. The
17-17 authority may not impose the tax after such bonds or other
17-18 obligations, including any refunding bonds, are no longer
17-19 outstanding.
17-20 Sec. 334.113. TAX COLLECTION; PENALTY. (a) The owner of a
17-21 motor vehicle required to collect the tax imposed under this
17-22 subchapter shall report and send the taxes collected to the
17-23 authority as provided by the order imposing the tax.
17-24 (b) An authority by order may prescribe penalties, including
17-25 interest charges, for failure to keep records required by the
18-1 authority, to report when required, or to pay the tax when due.
18-2 (c) An attorney acting for the authority may bring suit
18-3 against a person who fails to collect a tax under this subchapter
18-4 and to pay it over to the authority as required. The fees of such
18-5 attorney shall be assessed against such person.
18-6 Sec. 334.114. COLLECTION PROCEDURES ON PURCHASE OF MOTOR
18-7 VEHICLE RENTAL BUSINESS. (a) If the owner of a motor vehicle
18-8 rental business that makes rentals subject to the tax imposed by
18-9 this subchapter sells the business, the successor to the seller or
18-10 the seller's assignee shall withhold an amount of the purchase
18-11 price sufficient to pay the amount of tax due until the seller
18-12 provides a receipt by a person designated by the authority to
18-13 provide the receipt showing that the amount has been paid or a
18-14 certificate showing that no tax is due.
18-15 (b) The purchaser of a motor vehicle rental business who
18-16 fails to withhold an amount of the purchase price as required by
18-17 this section is liable for the amount required to be withheld to
18-18 the extent of the value of the purchase price.
18-19 (c) The purchaser of a motor vehicle rental business may
18-20 request that the person designated by the authority to provide a
18-21 receipt under Subsection (a) issue a certificate stating that no
18-22 tax is due or issue a statement of the amount required to be paid
18-23 before a certificate may be issued. The person designated by the
18-24 authority shall issue the certificate or statement not later than
18-25 the 60th day after the date the person receives the request.
19-1 (d) If the person designated by the authority to provide a
19-2 receipt under Subsection (a) fails to issue the certificate or
19-3 statement within the period provided by Subsection (c), the
19-4 purchaser is released from the obligation to withhold the purchase
19-5 price or pay the amount due.
19-6 Sec. 334.115. REIMBURSEMENT FOR TAX COLLECTION EXPENSES. An
19-7 authority by order may permit a person who is required to collect a
19-8 tax under this subchapter to retain a percentage of the amount
19-9 collected and required to be reported as reimbursement to the
19-10 person for the costs of collecting the tax. The authority may
19-11 provide that the person may retain the amount authorized to be
19-12 retained only if the person pays the tax and files reports as
19-13 required by the authority.
19-14 Sec. 334.116. DEPOSIT OF TAX REVENUE. Revenue from the tax
19-15 imposed under this subchapter shall be deposited in the venue
19-16 project fund of the authority imposing the tax.
19-17 (Sections 334.117 to 334.130 reserved for expansion
19-18 SUBCHAPTER G. ADMISSIONS TAX
19-19 Sec. 334.131. TAX AUTHORIZED. (a) An authority by order
19-20 may impose a tax on each person admitted to some or all of the
19-21 events at an approved venue project in the authority for which the
19-22 authority has issued bonds to plan, acquire, establish, develop,
19-23 construct, or renovate the approved venue project.
19-24 (b) The authority may not impose a tax under this subchapter
19-25 for admission to an event at a venue that is not an approved venue
20-1 project or for which the authority has not issued bonds to plan,
20-2 acquire, establish, develop, construct, or renovate the approved
20-3 venue project.
20-4 (c) An authority may impose a tax under this subchapter only
20-5 if:
20-6 (1) the venue project is a substantially completed
20-7 prior approved venue project; or
20-8 (2) the venue project and tax are approved at an
20-9 election held under Section 334.052.
20-10 Sec. 334.132. TAX RATE. (a) The tax authorized by this
20-11 subchapter is imposed at the allowed tax rate on each person
20-12 admitted.
20-13 (b) The amount of the tax may be imposed at any uniform
20-14 monetary amount not to exceed $2. The tax may not be imposed at a
20-15 percentage rate.
20-16 (c) The ballot proposition at an election held to adopt the
20-17 tax must specify the maximum rate of the tax to be adopted.
20-18 (d) The authority by order may repeal or decrease the rate
20-19 of the tax imposed under this subchapter.
20-20 Sec. 334.133. RATE INCREASE. An authority that secured
20-21 voter approval of a tax under this subchapter at a rate of less
20-22 than $2 a person may by order increase the rate of the tax to a
20-23 maximum of $2 a person if the increase is approved by a majority of
20-24 the registered voters of the authority voting at an election called
20-25 and held under Section 334.052.
21-1 Sec. 334.134. COLLECTION. (a) The authority by order may
21-2 require the owner of an approved venue project in the authority to
21-3 collect the tax for the benefit of the authority.
21-4 (b) An owner required to collect the tax under this section
21-5 shall add the tax to the admissions price, and the tax is a part of
21-6 the admissions price, is a debt owed to the owner of the approved
21-7 venue project by the person admitted, and is recoverable at law in
21-8 the same manner as the admissions charge.
21-9 (c) The tax imposed by this subchapter is not an occupation
21-10 tax imposed on the owner of the approved venue project.
21-11 Sec. 334.135. EFFECTIVE DATE AND DURATION OF TAX. (a) A
21-12 tax imposed under this subchapter or a change in a tax rate takes
21-13 effect on the date prescribed by the order imposing the tax or
21-14 changing the rate.
21-15 (b) An authority may impose a tax under this subchapter only
21-16 if the authority issues bonds or other obligations under Section
21-17 334.073. The authority may not impose the tax after such bonds or
21-18 other obligations, including any refunding bonds, are no longer
21-19 outstanding.
21-20 Sec. 334.136. COLLECTION OF TAX. (a) A person required to
21-21 collect a tax imposed under this subchapter shall report and send
21-22 the taxes collected to the authority as provided by the authority
21-23 imposing the tax.
21-24 (b) An authority by order may prescribe penalties, including
21-25 interest charges, for failure to keep records required by the
22-1 authority, to report when required, or to pay the tax when due. An
22-2 attorney acting for the authority may bring suit against a person
22-3 who fails to collect a tax under this subchapter and to pay it over
22-4 to the authority as required. The fees of the attorney shall be
22-5 assessed against the person.
22-6 (c) An authority by order may permit a person who is
22-7 required to collect a tax under this subchapter to retain a
22-8 percentage of the amount collected and required to be reported as
22-9 reimbursement to the person for the costs of collecting the tax.
22-10 The authority may provide that the person may retain the amount
22-11 authorized only if the person pays the tax and files reports as
22-12 required by the authority.
22-13 Sec. 334.137. DEPOSIT OF TAX REVENUE. Revenue from the tax
22-14 imposed under this subchapter shall be deposited in the venue
22-15 project fund of the authority imposing the tax.
22-16 (Sections 334.138 to 334.180 reserved for expansion
22-17 SUBCHAPTER H. PARKING TAX
22-18 Sec. 334.181. EVENT PARKING TAX. (a) An authority by order
22-19 may impose a tax on each motor vehicle parking in a parking
22-20 facility of, or within a prescribed distance from, an approved
22-21 venue project.
22-22 (b) The authority may impose the tax on vehicles during a
22-23 period beginning not more than three hours before and ending not
22-24 more than three hours after the time an event in an approved venue
22-25 project is scheduled to begin.
23-1 (c) An authority may impose a tax under this subchapter only
23-2 if:
23-3 (1) the venue project is a substantially completed
23-4 prior approved venue project; or
23-5 (2) the venue project and the tax are approved at an
23-6 election held under Section 334.052.
23-7 Sec. 334.182. TAX RATE. (a) The authority by order may
23-8 prescribe the coverage of the tax imposed by this subchapter and
23-9 may provide that the tax is imposed at a flat amount on each parked
23-10 motor vehicle or is imposed as a percentage of the amount charged
23-11 for event parking by the owner of the parking facility.
23-12 (b) Regardless of the method of imposition, the amount of
23-13 the tax may not exceed $1 for each motor vehicle.
23-14 (c) The ballot proposition at an election held to adopt the
23-15 tax must specify the maximum rate of the tax to be adopted.
23-16 (d) The authority by order may repeal or decrease the rate
23-17 of the tax imposed under this subchapter.
23-18 Sec. 334.183. RATE INCREASE. An authority that secured
23-19 voter approval of a tax under this subchapter at a rate of less
23-20 than $1 a vehicle may by order increase the rate of the tax to a
23-21 maximum of $1 a vehicle if the increase is approved by a majority
23-22 of the registered voters of the authority voting at an election
23-23 called and held under Section 334.052.
23-24 Sec. 334.184. COLLECTION. (a) The authority by order may
23-25 require the owner of a parking facility to collect the tax for the
24-1 benefit of the authority.
24-2 (b) An owner required to collect the tax under this section
24-3 shall add the tax to the parking charge, and the tax is a part of
24-4 the parking charge, is a debt owed to the parking facility owner by
24-5 the person parking, and is recoverable at law in the same manner as
24-6 the parking charge.
24-7 (c) The tax imposed by this subchapter is not an occupation
24-8 tax imposed on the owner of the parking facility.
24-9 Sec. 334.185. EFFECTIVE DATE AND DURATION OF TAX. (a) A
24-10 tax imposed under this subchapter or a change in the tax rate takes
24-11 effect on the date prescribed by the order imposing the tax or
24-12 changing the rate.
24-13 (b) An authority may impose a tax under this subchapter only
24-14 if the authority issues bonds or other obligations under Section
24-15 334.073. The authority may not impose the tax after such bonds or
24-16 other obligations, including any refunding bonds, are no longer
24-17 outstanding.
24-18 Sec. 334.186. COLLECTION OF TAX. (a) A person required to
24-19 collect a tax imposed under this subchapter shall report and send
24-20 the taxes collected to the authority as provided by the authority
24-21 imposing the tax.
24-22 (b) An authority by order may prescribe penalties, including
24-23 interest charges, for failure to keep records required by the
24-24 authority, to report when required, or to pay the tax when due. An
24-25 attorney acting for the authority may bring suit against a person
25-1 who fails to collect a tax under this subchapter and to pay it over
25-2 to the authority as required. The fees of the attorney shall be
25-3 assessed against the person.
25-4 (c) An authority by order may permit a person who is
25-5 required to collect a tax under this subchapter to retain a
25-6 percentage of the amount collected and required to be reported as
25-7 reimbursement to the person for the costs of collecting the tax.
25-8 The authority may provide that the person may retain the amount
25-9 authorized only if the person pays the tax and files reports
25-10 required by the authority.
25-11 Sec. 334.187. DEPOSIT OF TAX REVENUE. Revenue from the tax
25-12 imposed under this subchapter shall be deposited in the venue
25-13 project fund of the authority imposing the tax.
25-14 (Sections 334.188 to 334.230 reserved for expansion
25-15 SUBCHAPTER I. HOTEL OCCUPANCY TAXES
25-16 Sec. 334.231. DEFINITION. In this subchapter, "hotel" has
25-17 the meaning assigned by Section 156.001, Tax Code.
25-18 Sec. 334.232. TAX AUTHORIZED. (a) Subject to the
25-19 provisions of Section 334.237, an authority by order may impose a
25-20 tax on a person who, under a lease, concession, permit, right of
25-21 access, license, contract, or agreement, pays for the use or
25-22 possession, or for the right to the use or possession, of a room
25-23 that is in a hotel, costs $2 or more each day, and is ordinarily
25-24 used for sleeping.
25-25 (b) An authority may impose a tax under this subchapter only
26-1 if:
26-2 (1) the tax is imposed as a method of financing a
26-3 prior approved venue project; or
26-4 (2) the venue project and the tax are approved at an
26-5 election held under Section 334.052.
26-6 Sec. 334.233. TAX CODE APPLICABLE. Sections 352.002(b) and
26-7 (c) and Sections 352.004, 352.0041, 352.005, and 352.007, Tax Code,
26-8 govern the imposition, computation, administration, collection, and
26-9 remittance of the tax authorized under this subchapter except as
26-10 inconsistent with this subchapter.
26-11 Sec. 334.234. TAX RATE. (a) The tax authorized by this
26-12 subchapter may be imposed at any rate not to exceed two percent of
26-13 the price paid for a room in a hotel.
26-14 (b) The ballot proposition at an election held to adopt the
26-15 tax must specify the maximum rate of the tax to be adopted.
26-16 Sec. 334.235. RATE INCREASE. An authority that has adopted
26-17 a tax under this subchapter at a rate of less than two percent may
26-18 by ordinance or order increase the rate of the tax to a maximum of
26-19 two percent if the increase is approved by a majority of the
26-20 registered voters of the authority voting at an election called
26-21 under Section 334.052.
26-22 Sec. 334.236. NOTICE OF TAX. Each bill or other receipt for
26-23 a hotel charge subject to the tax imposed under this subchapter
26-24 must contain a statement in a conspicuous location
26-25 stating: "___________________________ (insert name of taxing
27-1 authority) requires that an additional tax of ________ percent
27-2 (insert rate of tax) be imposed on each hotel charge for the
27-3 purpose of financing a venue project."
27-4 Sec. 334.237. EFFECTIVE DATE AND DURATION OF TAX. (a) A
27-5 tax imposed under this subchapter or a change in the tax rate takes
27-6 effect on the date prescribed by the order imposing the tax or
27-7 changing the rate, provided that, effective October 1, 1997, as a
27-8 method of financing prior approved venue projects, there shall be
27-9 imposed throughout the territory of an authority created pursuant
27-10 to this chapter a tax under this subchapter at the maximum uniform
27-11 monetary amount on the use or possession of a room that is in a
27-12 hotel, costs $2 or more each day, and is ordinarily used for
27-13 sleeping. If an authority has not been created on October 1, 1997,
27-14 the tax imposed under this subchapter shall be imposed on creation
27-15 of an authority.
27-16 (b) If an authority (1) prior to October 1, 1997, or within
27-17 30 days after the date of its creation, adopts a resolution that
27-18 rejects the tax imposed by Subsection (a) or (2) does not issue
27-19 bonds or other obligations secured by such tax to finance a prior
27-20 approved venue project within 24 months after October 1, 1997, or
27-21 the date of its creation, the tax shall be abolished. The
27-22 authority may not impose the tax after such bonds or other
27-23 obligations, including any refunding bonds, are no longer
27-24 outstanding.
27-25 Sec. 334.238. DEPOSIT OF TAX REVENUE. Revenue from the tax
28-1 imposed under this subchapter shall be deposited in the venue
28-2 project fund of the authority imposing the tax.
28-3 (Sections 334.239 to 334.900 reserved for expansion
28-4 SUBCHAPTER Z. MISCELLANEOUS PROVISIONS
28-5 Sec. 334.901. HISTORICALLY UNDERUTILIZED BUSINESSES. An
28-6 authority shall make good faith efforts to meet or exceed goals for
28-7 awarding contracts or subcontracts associated with approved venue
28-8 projects to historically underutilized businesses. Such goals
28-9 shall be consistent with any state law that by its terms is
28-10 applicable to approved venue projects.
28-11 Sec. 334.902. SPECIFIC PERFORMANCE. It is expressly found
28-12 and determined by the legislature that the presence of a
28-13 professional sports team in an authority, county, or municipality
28-14 provides a unique value to such authority, county, or municipality
28-15 that cannot be adequately measured in dollars. It is further
28-16 expressly found and determined that an authority, county, or
28-17 municipality would suffer irreparable injury if a professional
28-18 sports team ceases to play its home games in the authority, county,
28-19 or municipality. Consequently, any provision of a contract, lease,
28-20 or other agreement between an authority, county, or municipality
28-21 and a professional sports team or club, or its owner, regarding the
28-22 venue for playing home games may be enforceable by specific
28-23 performance by the courts of this state.
28-24 Sec. 334.903. SEVERABILITY. The provisions of this chapter
28-25 shall be severable. If any phrase, clause, sentence, or provision
29-1 of this chapter is declared to be contrary to the constitution of
29-2 this state or of the United States or the application of this
29-3 chapter to any person or circumstance is held invalid, the validity
29-4 of the remainder of this chapter and the application thereof to any
29-5 person or circumstance shall not be affected thereby.
29-6 SECTION 2. The initial members of the board of directors of
29-7 a venue authority created under Chapter 334, Local Government Code,
29-8 as added by this Act, shall by lot choose one-year or two-year
29-9 terms. If an even number of directors are appointed, then an equal
29-10 number shall have one-year terms and two-year terms. If an odd
29-11 number of directors are appointed, the number of members to serve
29-12 two-year terms shall be one more than the number to serve one-year
29-13 terms.
29-14 SECTION 3. All acts and proceedings authorized or undertaken
29-15 by a municipality, county, or authority that were taken before the
29-16 effective date of this Act, including acts and proceedings to
29-17 create an authority, are hereby validated and confirmed in all
29-18 respects, provided that such validation and confirmation do not
29-19 apply to any act or proceeding that is subject to litigation that
29-20 is pending on the effective date of the Act.
29-21 SECTION 4. The importance of this legislation and the
29-22 crowded condition of the calendars in both houses create an
29-23 emergency and an imperative public necessity that the
29-24 constitutional rule requiring bills to be read on three several
29-25 days in each house be suspended, and this rule is hereby suspended,
30-1 and that this Act take effect and be in force from and after its
30-2 passage, and it is so enacted.