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.