By: Whitmire S.B. No. 944
97S0685/1
A BILL TO BE ENTITLED
AN ACT
1-1 relating to the financing of sports venues and related
1-2 infrastructure; authorizing the imposition of certain local taxes
1-3 and the issuance of local bonds; providing civil penalties.
1-4 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
1-5 SECTION 1. Subtitle C, Title 10, Local Government Code, is
1-6 amended by adding Chapter 334 to read as follows:
1-7 CHAPTER 334. SPORTS VENUE AUTHORITIES
1-8 SUBCHAPTER A. GENERAL PROVISIONS
1-9 Sec. 334.001. DEFINITIONS. In this chapter:
1-10 (1) "Approved sports venue project" means a sports
1-11 venue project that either:
1-12 (A) is a prior approved sports venue project; or
1-13 (B) has been approved under this chapter by the
1-14 voters of a sports venue authority.
1-15 (2) "Authority" means a sports venue authority created
1-16 under this chapter.
1-17 (3) "Board" means the board of directors of a sports
1-18 venue authority.
1-19 (4) "Governing body" means the governing body of a
1-20 municipality or the commissioners court of a county.
1-21 (5) "Prior approved sports venue project" means a new
1-22 or renovated stadium, arena, or other facility for a professional
1-23 baseball or football team that was approved by the voters of a
2-1 political subdivision under other law prior to the effective date
2-2 of this chapter.
2-3 (6) "Related infrastructure" means any store,
2-4 restaurant, concession, automobile parking facility, area
2-5 transportation facility, road, street, water, or sewer facility, or
2-6 other on-site or off-site improvement that relates to and enhances
2-7 the use, value, or appeal of a sports venue and any other
2-8 expenditure reasonably necessary to construct, improve, renovate,
2-9 or expand a sports venue.
2-10 (7) "Sports venue" means an arena, coliseum, stadium,
2-11 or other type of area or facility:
2-12 (A) that is primarily used or is planned for
2-13 primary use for one or more professional or amateur sports or
2-14 athletics events;
2-15 (B) that is used for rodeo, agricultural, or
2-16 livestock events, exhibitions, and fairs; and
2-17 (C) for which a fee for admission to the sports
2-18 or athletics events, other than occasional civic, charitable, or
2-19 promotional events, is charged or is planned to be charged.
2-20 (8) "Sports venue project" means a sports venue and
2-21 related infrastructure that is planned, acquired, established,
2-22 developed, constructed, or renovated under this chapter.
2-23 Sec. 334.002. APPLICATION OF CHAPTER. This chapter applies
2-24 only to:
2-25 (1) a municipality with a population of more than 1.2
3-1 million; and
3-2 (2) a county with a population of more than 2.2
3-3 million.
3-4 Sec. 334.003. APPLICATION TO SPORTS VENUE CONSTRUCTED UNDER
3-5 OTHER LAW. An authority may use this chapter for a sports venue
3-6 project relating to a sports venue and related infrastructure
3-7 planned, acquired, established, developed, constructed, or
3-8 renovated under other law, including Section 4B, Development
3-9 Corporation Act of 1979 (Article 5190.6, Vernon's Texas Civil
3-10 Statutes), or Subchapter E, Chapter 451, Transportation Code.
3-11 Sec. 334.004. OTHER USES OF SPORTS VENUE PERMITTED. This
3-12 chapter does not prohibit the use of a sports venue project for an
3-13 event that is not related to sports or athletics, such as a
3-14 community-related event.
3-15 (Sections 334.005 to 334.020 reserved for expansion
3-16 SUBCHAPTER B. SPORTS VENUE AUTHORITY
3-17 Sec. 334.021. CREATION. A municipality and a county may
3-18 create a sports venue authority under this chapter to plan,
3-19 acquire, establish, develop, construct, or renovate one or more
3-20 sports venue projects in the authority subject to approval by the
3-21 voters of the authority as provided in Subchapter D.
3-22 Sec. 334.022. ORDER CREATING AUTHORITY. A municipality and
3-23 a county may create an authority under this chapter by adopting a
3-24 concurrent ordinance and order. A concurrent ordinance and order
3-25 must:
4-1 (1) contain substantially identical provisions; and
4-2 (2) define the boundaries of the authority to be
4-3 coextensive with the boundaries of the combined territory of the
4-4 municipality and the county.
4-5 Sec. 334.023. POLITICAL SUBDIVISION; OPEN MEETINGS; OPEN
4-6 RECORDS. (a) An authority is a political subdivision of this
4-7 state.
4-8 (b) An authority is subject to Chapters 551 and 552,
4-9 Government Code.
4-10 (Sections 334.024 to 334.030 reserved for expansion
4-11 SUBCHAPTER C. BOARD OF DIRECTORS
4-12 Sec. 334.031. COMPOSITION AND APPOINTMENT OF BOARD. (a) An
4-13 authority is governed by a board of at least five directors,
4-14 including the chair of the board.
4-15 (b) The board is appointed by the governing bodies of the
4-16 municipality and the county that create the authority. The
4-17 governing bodies are entitled to appoint an equal number of
4-18 directors other than the chair, who shall be jointly appointed by
4-19 the governing bodies.
4-20 (c) Directors serve staggered two-year terms. A director
4-21 may be removed by the appointing governing body, and the chair may
4-22 be removed by both governing bodies acting jointly, at any time
4-23 without cause. Successor directors are appointed in the same
4-24 manner as the appointees whom they succeed.
4-25 (d) To qualify to serve as a director, a person other than
5-1 the chair must be a resident of the municipality or county whose
5-2 governing body appoints the person, and the chair must be a
5-3 resident of at least the county. An employee, officer, or member
5-4 of the governing body of the municipality or county may serve as a
5-5 director but may not have a personal interest in a contract
5-6 executed by the authority other than as an employee, officer, or
5-7 member of the governing body of the municipality or county.
5-8 Sec. 334.032. COMPENSATION. A board member is not entitled
5-9 to compensation but is entitled to reimbursement for actual and
5-10 necessary expenses.
5-11 Sec. 334.033. MEETINGS. The board shall conduct its
5-12 meetings in the authority.
5-13 Sec. 334.034. OFFICERS. The board shall designate from
5-14 among its members a secretary and other officers, except the chair,
5-15 that the board considers necessary.
5-16 (Sections 334.035 to 334.050 reserved for expansion
5-17 SUBCHAPTER D. SPORTS VENUE PROJECTS
5-18 Sec. 334.051. AUTHORITY TO PROVIDE PROJECTS. (a) An
5-19 authority may provide for the planning, acquisition, establishment,
5-20 development, construction, or renovation of a sports venue project
5-21 if the project is:
5-22 (1) a prior approved sports venue project; or
5-23 (2) included in a resolution that is adopted by the
5-24 board of the authority and then approved by a majority of the
5-25 registered voters of the authority voting at an election called and
6-1 held for that purpose under Section 334.052.
6-2 (b) The resolution shall designate the sports venue project
6-3 and each method of financing authorized by this chapter that the
6-4 authority wants to use to finance the project. The resolution may
6-5 designate more than one method of financing.
6-6 Sec. 334.052. ELECTION. (a) The board may order an
6-7 election within the authority's boundaries, which are coextensive
6-8 with the boundaries of the combined territory of the municipality
6-9 and the county that created the authority, on the question of
6-10 approving and implementing a resolution for a sports venue project,
6-11 other than a prior approved sports venue project.
6-12 (b) The order calling the election must:
6-13 (1) designate the sports venue project or projects;
6-14 (2) if more than one sports venue project is
6-15 designated, allow the voters to vote separately on each project;
6-16 (3) designate each method of financing authorized by
6-17 this chapter that the authority wants to use to finance the project
6-18 and the maximum rate of each method; and
6-19 (4) allow the voters to vote, in the same proposition
6-20 or in separate propositions, on the method or methods of financing
6-21 authorized by this chapter that the authority wants to use to
6-22 finance the project or projects and the maximum rates of each
6-23 method or methods.
6-24 (c) The ballot at an election held under this section must
6-25 be printed to permit voting for or against the
7-1 proposition: "Authorizing __________________ (insert name of
7-2 authority) to _________________________ (insert description of
7-3 sports venue project) and to impose a tax ___________________
7-4 (insert type of tax or taxes) at the rate of
7-5 _________________________ (insert maximum rate or rates of each
7-6 tax) for the purpose of financing the sports venue project."
7-7 (d) If a majority of the votes cast at the election approves
7-8 a project or projects and the method or methods of financing the
7-9 project or projects, as required, the authority may implement the
7-10 resolution.
7-11 (e) The Election Code governs an election held under this
7-12 chapter, except that the uniform election date provisions of
7-13 Section 41.001(a), Election Code, do not apply to an election
7-14 ordered under this section.
7-15 (Sections 334.053 to 334.070 reserved for expansion
7-16 SUBCHAPTER E. POWERS AND DUTIES
7-17 Sec. 334.071. GENERAL POWERS OF AUTHORITY. (a) An
7-18 authority may:
7-19 (1) perform any act necessary to the full exercise of
7-20 the authority's powers;
7-21 (2) accept a gift, grant, or loan from a:
7-22 (A) department or agency of the United States;
7-23 (B) department, agency, or political subdivision
7-24 of this state; or
7-25 (C) public or private person;
8-1 (3) acquire, sell, lease, convey, or otherwise dispose
8-2 of property or an interest in property, including an approved
8-3 sports venue project, under terms and conditions determined by the
8-4 authority, provided that in any such transaction with another
8-5 public entity, the public purpose found by the legislature in
8-6 Section 334.074 shall be deemed adequate consideration for the
8-7 authority and the other public entity;
8-8 (4) employ necessary personnel; and
8-9 (5) adopt rules to govern the operation of the
8-10 authority and its employees and property.
8-11 (b) An authority may contract with a public or private
8-12 person, including the county and municipality that created the
8-13 authority, a sports team, club, organization, or other entity, to:
8-14 (1) plan, acquire, establish, develop, construct, or
8-15 renovate a sports venue project under this chapter or any other
8-16 law; or
8-17 (2) perform any other act the authority is authorized
8-18 to perform under this chapter.
8-19 (c) The competitive bidding laws, including Chapter 271, do
8-20 not apply to the planning, acquisition, establishment, development,
8-21 construction, or renovation of a prior approved sports venue
8-22 project that is a new stadium for a professional baseball team.
8-23 (d) An authority may not levy an ad valorem tax.
8-24 Sec. 334.072. SPORTS VENUE PROJECT FUND. (a) An authority
8-25 shall establish by resolution a fund known as the sports venue
9-1 project fund. The authority may establish separate accounts within
9-2 the fund for the various revenue sources.
9-3 (b) The authority shall deposit into the sports venue
9-4 project fund:
9-5 (1) the proceeds from any tax imposed by the
9-6 authority; and
9-7 (2) any other money required by law to be deposited in
9-8 the fund.
9-9 (c) The authority may deposit into the sports venue project
9-10 fund:
9-11 (1) money derived from innovative funding concepts
9-12 such as the sale or lease of luxury boxes or the sale of licenses
9-13 for personal seats; and
9-14 (2) any other revenue derived from the approved sports
9-15 venue project, including stadium rental payments and revenue from
9-16 concessions and parking.
9-17 (d) The authority may use money in the sports venue project
9-18 fund only to:
9-19 (1) pay or reimburse the costs of planning, acquiring,
9-20 establishing, developing, constructing, or renovating one or more
9-21 approved sports venue projects in the authority;
9-22 (2) pay the principal of, interest on, and other costs
9-23 relating to bonds or other obligations issued by the authority or
9-24 to refund bonds or other obligations; or
9-25 (3) pay the costs of operating or maintaining one or
10-1 more approved sports venue projects during the planning,
10-2 acquisition, establishment, development, construction, or
10-3 renovation or while bonds or other obligations for the planning,
10-4 acquisition, establishment, development, construction, or
10-5 renovation are outstanding.
10-6 (e) Money deposited into the sports venue project fund,
10-7 including money deposited under Subsection (c), is the property of
10-8 the authority depositing the money.
10-9 Sec. 334.073. BONDS AND OTHER OBLIGATIONS. (a) With the
10-10 prior consent of the governing bodies of the municipality and the
10-11 county, an authority in which an approved sports venue project is
10-12 located may issue bonds, including revenue bonds and refunding
10-13 bonds, or other obligations to pay the costs of the approved sports
10-14 venue project.
10-15 (b) Proceeds from the sale of bonds or other obligations
10-16 issued by an authority to provide an approved sports venue project
10-17 shall be deposited in accordance with the documents pursuant to
10-18 which the bonds or other obligations are issued and may be used to
10-19 reimburse the authority, or any other public or private party
10-20 designated by the authority, for costs attributable to the project
10-21 that were paid or incurred before the date of issuance of the bonds
10-22 or other obligations.
10-23 (c) An authority is an issuer and a sports venue project is
10-24 a public utility and an eligible project for purposes of Chapter
10-25 656, Acts of the 68th Legislature, Regular Session, 1983 (Article
11-1 717q, Vernon's Texas Civil Statutes).
11-2 (d) The bonds or other obligations and the proceedings
11-3 authorizing the bonds or other obligations shall be submitted to
11-4 the attorney general for review and approval as required by Article
11-5 3, Chapter 53, Acts of the 70th Legislature, 2nd Called Session,
11-6 1987 (Article 717k-8, Vernon's Texas Civil Statutes).
11-7 (e) The bonds or other obligations must be payable from and
11-8 secured by the revenues in the sports venue project fund.
11-9 (f) The bonds or other obligations may mature serially or
11-10 otherwise not more than 30 years from their date of issuance.
11-11 (g) The bonds or other obligations are not a debt of and do
11-12 not create a claim for payment against the revenue or property of
11-13 the authority other than the revenue sources pledged to pay the
11-14 bonds or other obligations and an approved sports venue project for
11-15 which the bonds or other obligations are issued.
11-16 Sec. 334.074. PUBLIC PURPOSE OF PROJECT. (a) The
11-17 legislature finds for all constitutional and statutory purposes
11-18 that an approved sports venue project is owned, used, and held for
11-19 public purposes by the authority.
11-20 (b) Section 25.07(a), Tax Code, does not apply to a
11-21 leasehold or other possessory interest granted by the authority
11-22 while the authority owns the project.
11-23 (c) The project is exempt from taxation under Section 11.11,
11-24 Tax Code, while the authority owns the project.
11-25 (Sections 334.075 to 334.100 reserved for expansion
12-1 SUBCHAPTER F. SHORT-TERM MOTOR VEHICLE RENTAL TAX
12-2 Sec. 334.101. DEFINITIONS. (a) In this subchapter:
12-3 (1) "Motor vehicle" means a self-propelled vehicle
12-4 designed principally to transport persons or property on a public
12-5 roadway and includes a passenger car, van, station wagon, sports
12-6 utility vehicle, and truck. The term does not include a:
12-7 (A) trailer, semitrailer, house trailer, truck
12-8 having a manufacturer's rating of more than one-half ton, or
12-9 road-building machine;
12-10 (B) device moved only by human power;
12-11 (C) device used exclusively on stationary rails
12-12 or tracks;
12-13 (D) farm machine; or
12-14 (E) mobile office.
12-15 (2) "Rental" means an agreement by the owner of a
12-16 motor vehicle to authorize, for not longer than 30 days, the
12-17 exclusive use of the vehicle to another for consideration.
12-18 (3) "Place of business of the owner" means an
12-19 established outlet, office, or location operated by the owner of a
12-20 motor vehicle or the owner's agent or employee for the purpose of
12-21 renting motor vehicles and includes any location at which three or
12-22 more rentals are made during a year.
12-23 (b) Except as provided by Subsection (a), words used in this
12-24 subchapter and defined by Chapter 152, Tax Code, have the meanings
12-25 assigned by Chapter 152, Tax Code.
13-1 Sec. 334.102. TAX AUTHORIZED. (a) Subject to the
13-2 provisions of Section 334.112, an authority by order may impose a
13-3 tax on the rental in the authority of a motor vehicle.
13-4 (b) An authority by order may repeal or decrease the rate of
13-5 a tax imposed under Subsection (a).
13-6 (c) An authority may impose a tax under this subchapter only
13-7 if:
13-8 (1) the tax is imposed as a method of financing a
13-9 prior approved sports venue project; or
13-10 (2) the sports venue project and the tax are approved
13-11 at an election held under Section 334.052.
13-12 Sec. 334.103. SHORT-TERM RENTAL TAX. (a) The tax
13-13 authorized by this subchapter is imposed at a rate in increments of
13-14 one-eighth of one percent, not to exceed five percent, on the gross
13-15 rental receipts from the rental in the authority of a motor
13-16 vehicle.
13-17 (b) The ballot proposition at an election held to adopt the
13-18 tax must specify the maximum rate of the tax to be adopted.
13-19 Sec. 334.104. RATE INCREASE. An authority that has adopted
13-20 a tax under this subchapter at a rate of less than five percent may
13-21 by order increase the rate of the tax to a maximum of five percent
13-22 if the increase is approved by a majority of the registered voters
13-23 of the authority voting at an election called under Section
13-24 334.052.
13-25 Sec. 334.105. COMPUTATION OF TAX. (a) The owner of a motor
14-1 vehicle subject to the tax imposed under this subchapter shall
14-2 collect the tax for the benefit of the authority.
14-3 (b) The owner shall add the short-term motor vehicle rental
14-4 tax imposed by the authority under this subchapter, if applicable,
14-5 and the gross rental receipts tax imposed by Chapter 152, Tax Code,
14-6 to the rental charge, and the sum of the taxes is a part of the
14-7 rental charge, is a debt owed to the motor vehicle owner by the
14-8 person renting the vehicle, and is recoverable at law in the same
14-9 manner as the rental charge.
14-10 Sec. 334.106. CONSUMMATION OF RENTAL. A rental of a motor
14-11 vehicle occurs in the authority in which transfer of possession of
14-12 the motor vehicle occurs.
14-13 Sec. 334.107. EXEMPTIONS APPLICABLE. The exemptions
14-14 provided by Subchapter E, Chapter 152, Tax Code, apply to the tax
14-15 authorized by this subchapter.
14-16 Sec. 334.108. NOTICE OF TAX. Each bill or other receipt for
14-17 a rental subject to the tax imposed under this subchapter must
14-18 contain a statement in a conspicuous location
14-19 stating: "_____________________ (insert name of taxing authority)
14-20 requires that an additional tax of ____________________ percent
14-21 (insert rate of tax) be imposed on each motor vehicle rental for
14-22 the purpose of financing a sports venue project."
14-23 Sec. 334.109. GROSS RECEIPTS PRESUMED SUBJECT TO TAX. All
14-24 gross receipts of an owner of a motor vehicle from the rental of
14-25 the motor vehicle are presumed to be subject to the tax imposed by
15-1 this subchapter, except for gross receipts for which the owner has
15-2 accepted in good faith a properly completed exemption certificate.
15-3 Sec. 334.110. RECORDS. (a) The owner of a motor vehicle
15-4 used for rental purposes shall keep for four years after the date
15-5 of rental records and supporting documents containing the following
15-6 information on the amount of:
15-7 (1) gross rental receipts received from the rental of
15-8 the motor vehicle; and
15-9 (2) the tax imposed under this subchapter and paid to
15-10 the authority on each motor vehicle used for rental purposes by the
15-11 owner.
15-12 (b) Mileage records are not required.
15-13 Sec. 334.111. FAILURE TO KEEP RECORDS. (a) An owner of a
15-14 motor vehicle commits an offense if the owner fails to make and
15-15 retain complete records for the four-year period required by
15-16 Section 334.110.
15-17 (b) An offense under this section is a misdemeanor
15-18 punishable by a fine of not less than $25 or more than $500.
15-19 Sec. 334.112. EFFECTIVE DATE AND DURATION OF TAX. (a) A
15-20 tax imposed under this subchapter or a change in the tax rate takes
15-21 effect on the date prescribed by the order imposing the tax or
15-22 changing the rate, provided that, effective October 1, 1997, as a
15-23 method of financing prior approved sports venue projects, there
15-24 shall be imposed throughout the territory of an authority created
15-25 pursuant to this chapter a tax under this subchapter at the maximum
16-1 uniform monetary amount on each day or part of a day of a person's
16-2 rental in the territory of the authority of a motor vehicle. If an
16-3 authority has not been created on October 1, 1997, the tax imposed
16-4 under this subchapter shall be imposed on creation of an authority.
16-5 (b) If an authority (1) prior to October 1, 1997, or within
16-6 30 days after the date of its creation, adopts a resolution that
16-7 rejects the tax imposed by Subsection (a) or (2) does not issue
16-8 bonds or other obligations secured by such tax to finance a prior
16-9 approved sports venue project within 24 months after October 1,
16-10 1997, or the date of its creation, the tax shall be abolished. The
16-11 authority may not impose the tax after such bonds or other
16-12 obligations, including any refunding bonds, are no longer
16-13 outstanding.
16-14 Sec. 334.113. TAX COLLECTION; PENALTY. (a) The owner of a
16-15 motor vehicle required to collect the tax imposed under this
16-16 subchapter shall report and send the taxes collected to the
16-17 authority as provided by the order imposing the tax.
16-18 (b) An authority by order may prescribe penalties, including
16-19 interest charges, for failure to keep records required by the
16-20 authority, to report when required, or to pay the tax when due.
16-21 (c) An attorney acting for the authority may bring suit
16-22 against a person who fails to collect a tax under this subchapter
16-23 and to pay it over to the authority as required. The fees of such
16-24 attorney shall be assessed against such person.
16-25 Sec. 334.114. COLLECTION PROCEDURES ON PURCHASE OF MOTOR
17-1 VEHICLE RENTAL BUSINESS. (a) If the owner of a motor vehicle
17-2 rental business that makes rentals subject to the tax imposed by
17-3 this subchapter sells the business, the successor to the seller or
17-4 the seller's assignee shall withhold an amount of the purchase
17-5 price sufficient to pay the amount of tax due until the seller
17-6 provides a receipt by a person designated by the authority to
17-7 provide the receipt showing that the amount has been paid or a
17-8 certificate showing that no tax is due.
17-9 (b) The purchaser of a motor vehicle rental business who
17-10 fails to withhold an amount of the purchase price as required by
17-11 this section is liable for the amount required to be withheld to
17-12 the extent of the value of the purchase price.
17-13 (c) The purchaser of a motor vehicle rental business may
17-14 request that the person designated by the authority to provide a
17-15 receipt under Subsection (a) issue a certificate stating that no
17-16 tax is due or issue a statement of the amount required to be paid
17-17 before a certificate may be issued. The person designated by the
17-18 authority shall issue the certificate or statement not later than
17-19 the 60th day after the date the person receives the request.
17-20 (d) If the person designated by the authority to provide a
17-21 receipt under Subsection (a) fails to issue the certificate or
17-22 statement within the period provided by Subsection (c), the
17-23 purchaser is released from the obligation to withhold the purchase
17-24 price or pay the amount due.
17-25 Sec. 334.115. REIMBURSEMENT FOR TAX COLLECTION EXPENSES. An
18-1 authority by order may permit a person who is required to collect a
18-2 tax under this subchapter to retain a percentage of the amount
18-3 collected and required to be reported as reimbursement to the
18-4 person for the costs of collecting the tax. The authority may
18-5 provide that the person may retain the amount authorized to be
18-6 retained only if the person pays the tax and files reports as
18-7 required by the authority.
18-8 Sec. 334.116. DEPOSIT OF TAX REVENUE. Revenue from the tax
18-9 imposed under this subchapter shall be deposited in the sports
18-10 venue project fund of the authority imposing the tax.
18-11 (Sections 334.117 to 334.130 reserved for expansion
18-12 SUBCHAPTER G. ADMISSIONS TAX
18-13 Sec. 334.131. TAX AUTHORIZED. (a) An authority by order
18-14 may impose a tax on each person admitted to some or all of the
18-15 events at an approved sports venue project in the authority for
18-16 which the authority has issued bonds to plan, acquire, establish,
18-17 develop, construct, or renovate the approved sports venue project.
18-18 (b) The authority may not impose a tax under this subchapter
18-19 for admission to an event at a sports venue that is not an approved
18-20 sports venue project or for which the authority has not issued
18-21 bonds to plan, acquire, establish, develop, construct, or renovate
18-22 the approved sports venue project.
18-23 (c) An authority may impose a tax under this subchapter only
18-24 if:
18-25 (1) the sports venue project is a substantially
19-1 completed prior approved sports venue project; or
19-2 (2) the sports venue project and tax are approved at
19-3 an election held under Section 334.052.
19-4 Sec. 334.132. TAX RATE. (a) The tax authorized by this
19-5 subchapter is imposed at the allowed tax rate on each person
19-6 admitted.
19-7 (b) The amount of the tax may be imposed at any uniform
19-8 monetary amount not to exceed $2. The tax may not be imposed at a
19-9 percentage rate.
19-10 (c) The ballot proposition at an election held to adopt the
19-11 tax must specify the maximum rate of the tax to be adopted.
19-12 (d) The authority by order may repeal or decrease the rate
19-13 of the tax imposed under this subchapter.
19-14 Sec. 334.133. RATE INCREASE. An authority that secured
19-15 voter approval of a tax under this subchapter at a rate of less
19-16 than $2 a person may by order increase the rate of the tax to a
19-17 maximum of $2 a person if the increase is approved by a majority of
19-18 the registered voters of the authority voting at an election called
19-19 and held under Section 334.052.
19-20 Sec. 334.134. COLLECTION. (a) The authority by order may
19-21 require the owner of an approved sports venue project in the
19-22 authority to collect the tax for the benefit of the authority.
19-23 (b) An owner required to collect the tax under this section
19-24 shall add the tax to the admissions price, and the tax is a part of
19-25 the admissions price, is a debt owed to the owner of the approved
20-1 sports venue project by the person admitted, and is recoverable at
20-2 law in the same manner as the admissions charge.
20-3 (c) The tax imposed by this subchapter is not an occupation
20-4 tax imposed on the owner of the approved sports venue project.
20-5 Sec. 334.135. EFFECTIVE DATE AND DURATION OF TAX. (a) A
20-6 tax imposed under this subchapter or a change in a tax rate takes
20-7 effect on the date prescribed by the order imposing the tax or
20-8 changing the rate.
20-9 (b) An authority may impose a tax under this subchapter only
20-10 if the authority issues bonds or other obligations under Section
20-11 334.073. The authority may not impose the tax after such bonds or
20-12 other obligations, including any refunding bonds, are no longer
20-13 outstanding.
20-14 Sec. 334.136. COLLECTION OF TAX. (a) A person required to
20-15 collect a tax imposed under this subchapter shall report and send
20-16 the taxes collected to the authority as provided by the authority
20-17 imposing the tax.
20-18 (b) An authority by order may prescribe penalties, including
20-19 interest charges, for failure to keep records required by the
20-20 authority, to report when required, or to pay the tax when due. An
20-21 attorney acting for the authority may bring suit against a person
20-22 who fails to collect a tax under this subchapter and to pay it over
20-23 to the authority as required. The fees of the attorney shall be
20-24 assessed against the person.
20-25 (c) An authority by order may permit a person who is
21-1 required to collect a tax under this subchapter to retain a
21-2 percentage of the amount collected and required to be reported as
21-3 reimbursement to the person for the costs of collecting the tax.
21-4 The authority may provide that the person may retain the amount
21-5 authorized only if the person pays the tax and files reports as
21-6 required by the authority.
21-7 Sec. 334.137. DEPOSIT OF TAX REVENUE. Revenue from the tax
21-8 imposed under this subchapter shall be deposited in the sports
21-9 venue project fund of the authority imposing the tax.
21-10 (Sections 334.138 to 334.180 reserved for expansion
21-11 SUBCHAPTER H. PARKING TAX
21-12 Sec. 334.181. EVENT PARKING TAX. (a) An authority by order
21-13 may impose a tax on each motor vehicle parking in a parking
21-14 facility of, or within a prescribed distance from, an approved
21-15 sports venue project.
21-16 (b) The authority may impose the tax on vehicles during a
21-17 period beginning not more than three hours before and ending not
21-18 more than three hours after the time an event in an approved sports
21-19 venue project is scheduled to begin.
21-20 (c) An authority may impose a tax under this subchapter only
21-21 if:
21-22 (1) the sports venue project is a substantially
21-23 completed prior approved sports venue project; or
21-24 (2) the sports venue project and the tax are approved
21-25 at an election held under Section 334.052.
22-1 Sec. 334.182. TAX RATE. (a) The authority by order may
22-2 prescribe the coverage of the tax imposed by this subchapter and
22-3 may provide that the tax is imposed at a flat amount on each parked
22-4 motor vehicle or is imposed as a percentage of the amount charged
22-5 for event parking by the owner of the parking facility.
22-6 (b) Regardless of the method of imposition, the amount of
22-7 the tax may not exceed $1 for each motor vehicle.
22-8 (c) The ballot proposition at an election held to adopt the
22-9 tax must specify the maximum rate of the tax to be adopted.
22-10 (d) The authority by order may repeal or decrease the rate
22-11 of the tax imposed under this subchapter.
22-12 Sec. 334.183. RATE INCREASE. An authority that secured
22-13 voter approval of a tax under this subchapter at a rate of less
22-14 than $1 a vehicle may by order increase the rate of the tax to a
22-15 maximum of $1 a vehicle if the increase is approved by a majority
22-16 of the registered voters of the authority voting at an election
22-17 called and held under Section 334.052.
22-18 Sec. 334.184. COLLECTION. (a) The authority by order may
22-19 require the owner of a parking facility to collect the tax for the
22-20 benefit of the authority.
22-21 (b) An owner required to collect the tax under this section
22-22 shall add the tax to the parking charge, and the tax is a part of
22-23 the parking charge, is a debt owed to the parking facility owner by
22-24 the person parking, and is recoverable at law in the same manner as
22-25 the parking charge.
23-1 (c) The tax imposed by this subchapter is not an occupation
23-2 tax imposed on the owner of the parking facility.
23-3 Sec. 334.185. EFFECTIVE DATE AND DURATION OF TAX. (a) A
23-4 tax imposed under this subchapter or a change in the tax rate takes
23-5 effect on the date prescribed by the order imposing the tax or
23-6 changing the rate.
23-7 (b) An authority may impose a tax under this subchapter only
23-8 if the authority issues bonds or other obligations under Section
23-9 334.073. The authority may not impose the tax after such bonds or
23-10 other obligations, including any refunding bonds, are no longer
23-11 outstanding.
23-12 Sec. 334.186. COLLECTION OF TAX. (a) A person required to
23-13 collect a tax imposed under this subchapter shall report and send
23-14 the taxes collected to the authority as provided by the authority
23-15 imposing the tax.
23-16 (b) An authority by order may prescribe penalties, including
23-17 interest charges, for failure to keep records required by the
23-18 authority, to report when required, or to pay the tax when due. An
23-19 attorney acting for the authority may bring suit against a person
23-20 who fails to collect a tax under this subchapter and to pay it over
23-21 to the authority as required. The fees of the attorney shall be
23-22 assessed against the person.
23-23 (c) An authority by order may permit a person who is
23-24 required to collect a tax under this subchapter to retain a
23-25 percentage of the amount collected and required to be reported as
24-1 reimbursement to the person for the costs of collecting the tax.
24-2 The authority may provide that the person may retain the amount
24-3 authorized only if the person pays the tax and files reports
24-4 required by the authority.
24-5 Sec. 334.187. DEPOSIT OF TAX REVENUE. Revenue from the tax
24-6 imposed under this subchapter shall be deposited in the sports
24-7 venue project fund of the authority imposing the tax.
24-8 (Sections 334.188 to 334.230 reserved for expansion
24-9 SUBCHAPTER I. HOTEL OCCUPANCY TAXES
24-10 Sec. 334.231. DEFINITION. In this subchapter, "hotel" has
24-11 the meaning assigned by Section 156.001, Tax Code.
24-12 Sec. 334.232. TAX AUTHORIZED. (a) Subject to the
24-13 provisions of Section 334.237, an authority by order may impose a
24-14 tax on a person who, under a lease, concession, permit, right of
24-15 access, license, contract, or agreement, pays for the use or
24-16 possession, or for the right to the use or possession, of a room
24-17 that is in a hotel, costs $2 or more each day, and is ordinarily
24-18 used for sleeping.
24-19 (b) An authority may impose a tax under this subchapter only
24-20 if:
24-21 (1) the tax is imposed as a method of financing a
24-22 prior approved sports venue project; or
24-23 (2) the sports venue project and the tax are approved
24-24 at an election held under Section 334.052.
24-25 Sec. 334.233. TAX CODE APPLICABLE. Sections 352.002(b) and
25-1 (c) and Sections 352.004, 352.0041, 352.005, and 352.007, Tax Code,
25-2 govern the imposition, computation, administration, collection, and
25-3 remittance of the tax authorized under this subchapter except as
25-4 inconsistent with this subchapter.
25-5 Sec. 334.234. TAX RATE. (a) The tax authorized by this
25-6 subchapter may be imposed at any rate not to exceed two percent of
25-7 the price paid for a room in a hotel.
25-8 (b) The ballot proposition at an election held to adopt the
25-9 tax must specify the maximum rate of the tax to be adopted.
25-10 Sec. 334.235. RATE INCREASE. An authority that has adopted
25-11 a tax under this subchapter at a rate of less than two percent may
25-12 by ordinance or order increase the rate of the tax to a maximum of
25-13 two percent if the increase is approved by a majority of the
25-14 registered voters of the authority voting at an election called
25-15 under Section 334.052.
25-16 Sec. 334.236. NOTICE OF TAX. Each bill or other receipt for
25-17 a hotel charge subject to the tax imposed under this subchapter
25-18 must contain a statement in a conspicuous location
25-19 stating: "___________________________ (insert name of taxing
25-20 authority) requires that an additional tax of ________ percent
25-21 (insert rate of tax) be imposed on each hotel charge for the
25-22 purpose of financing a sports venue project."
25-23 Sec. 334.237. EFFECTIVE DATE AND DURATION OF TAX. (a) A
25-24 tax imposed under this subchapter or a change in the tax rate takes
25-25 effect on the date prescribed by the order imposing the tax or
26-1 changing the rate, provided that, effective October 1, 1997, as a
26-2 method of financing prior approved sports venue projects, there
26-3 shall be imposed throughout the territory of an authority created
26-4 pursuant to this chapter a tax under this subchapter at the maximum
26-5 uniform monetary amount on the use or possession of a room that is
26-6 in a hotel, costs $2 or more each day, and is ordinarily used for
26-7 sleeping. If an authority has not been created on October 1, 1997,
26-8 the tax imposed under this subchapter shall be imposed on creation
26-9 of an authority.
26-10 (b) If an authority (1) prior to October 1, 1997, or within
26-11 30 days after the date of its creation, adopts a resolution that
26-12 rejects the tax imposed by Subsection (a) or (2) does not issue
26-13 bonds or other obligations secured by such tax to finance a prior
26-14 approved sports venue project within 24 months after October 1,
26-15 1997, or the date of its creation, the tax shall be abolished. The
26-16 authority may not impose the tax after such bonds or other
26-17 obligations, including any refunding bonds, are no longer
26-18 outstanding.
26-19 Sec. 334.238. DEPOSIT OF TAX REVENUE. Revenue from the tax
26-20 imposed under this subchapter shall be deposited in the sports
26-21 venue project fund of the authority imposing the tax.
26-22 (Sections 334.239 to 334.900 reserved for expansion
26-23 SUBCHAPTER Z. MISCELLANEOUS PROVISIONS
26-24 Sec. 334.901. HISTORICALLY UNDERUTILIZED BUSINESSES. An
26-25 authority shall make good faith efforts to meet or exceed goals for
27-1 awarding contracts or subcontracts associated with approved sports
27-2 venue projects to historically underutilized businesses. Such
27-3 goals shall be consistent with any state law that by its terms is
27-4 applicable to approved sports venue projects.
27-5 Sec. 334.902. SPECIFIC PERFORMANCE. It is expressly found
27-6 and determined by the legislature that the presence of a
27-7 professional sports team in an authority, county, or municipality
27-8 provides a unique value to such authority, county, or municipality
27-9 that cannot be adequately measured in dollars. It is further
27-10 expressly found and determined that an authority, county, or
27-11 municipality would suffer irreparable injury if a professional
27-12 sports team ceases to play its home games in the authority, county,
27-13 or municipality. Consequently, any contracts, leases, or other
27-14 agreements between an authority, county, or municipality and a
27-15 professional sports team or club, or its owner, shall be
27-16 enforceable by specific performance by the courts of this state.
27-17 SECTION 2. Subchapter I, Chapter 151, Tax Code, is amended
27-18 by adding Section 151.430 to read as follows:
27-19 Sec. 151.430. SALES AND USE TAX REFUND FOR APPROVED SPORTS
27-20 VENUE PROJECT. (a) A sports venue authority created under Chapter
27-21 334, Local Government Code, shall receive a rebate, refund, or
27-22 payment for the incremental increase in the proceeds of state and
27-23 local sales and use taxes paid by or collected at an approved
27-24 sports venue project, as defined in Chapter 334, Local Government
27-25 Code, located in the authority if the comptroller determines, in
28-1 response to a written request from the authority, that such rebate,
28-2 refund, or payment will not have a negative fiscal impact on state
28-3 revenues.
28-4 (b) "Incremental increase in the proceeds of state and local
28-5 sales and use taxes" means the amount of state and local sales and
28-6 use taxes received by a taxing entity that is generated, paid, or
28-7 collected within the taxing entity's fiscal year by all businesses
28-8 operating in the approved sports venue project, after adjustment
28-9 for normal economic growth and for the effects of any change in the
28-10 rate of the tax or in the items subject to the tax, and that
28-11 exceeds the amount of those taxes generated, paid, or collected by
28-12 those businesses in the taxing entity's fiscal year preceding the
28-13 fiscal year in which the approved sports venue project is approved.
28-14 (c) A prior approved sports venue project, as defined in
28-15 Chapter 334, Local Government Code, is deemed approved as of the
28-16 effective date of that chapter; provided, however, that if such a
28-17 project is being used by a professional baseball or football team
28-18 as of such effective date, the fiscal year in which such project
28-19 shall be deemed approved for the purposes of this section is the
28-20 first fiscal year thereafter in which neither a professional
28-21 baseball or football team used the project.
28-22 (d) An authority shall begin receiving the rebate, refund,
28-23 or payment under this section after the expiration of the first
28-24 complete calendar quarter after the date that the approved sports
28-25 venue project is approved, or deemed approved, and the comptroller
29-1 receives written notice of such approval from the authority. The
29-2 authority shall deposit such rebate, refund, or payment in the
29-3 sports venue project fund, as provided for in Chapter 334, Local
29-4 Government Code, and may use such money as any other money
29-5 deposited in that fund. The authority may not receive the rebate,
29-6 refund, or payment after any bonds or other obligations, including
29-7 refunding bonds, which are secured by such money and issued to
29-8 provide financing of an approved sports venue project are no longer
29-9 outstanding.
29-10 SECTION 3. The initial members of the board of directors of
29-11 a sports venue authority created under Chapter 334, Local
29-12 Government Code, as added by this Act, shall by lot choose one-year
29-13 or two-year terms. If an even number of directors are appointed,
29-14 then an equal number shall have one-year terms and two-year terms.
29-15 If an odd number of directors are appointed, the number of members
29-16 to serve two-year terms shall be one more than the number to serve
29-17 one-year terms.
29-18 SECTION 4. All acts and proceedings authorized or undertaken
29-19 by a municipality, county, or authority that were taken before the
29-20 effective date of this Act, including acts and proceedings to
29-21 create the authority, are hereby validated and confirmed in all
29-22 respects, provided that such validation and confirmation do not
29-23 apply to any act or proceeding that is subject to litigation that
29-24 is pending on the effective date of the Act.
29-25 SECTION 5. The importance of this legislation and the
30-1 crowded condition of the calendars in both houses create an
30-2 emergency and an imperative public necessity that the
30-3 constitutional rule requiring bills to be read on three several
30-4 days in each house be suspended, and this rule is hereby suspended,
30-5 and that this Act take effect and be in force from and after its
30-6 passage, and it is so enacted.