1-1 By: Whitmire, et al. S.B. No. 944 1-2 (In the Senate - Filed March 5, 1997; March 6, 1997, read 1-3 first time and referred to Committee on State Affairs; 1-4 March 19, 1997, reported favorably, as amended, by the following 1-5 vote: Yeas 8, Nays 5; March 19, 1997, sent to printer.) 1-6 COMMITTEE AMENDMENT NO. 1 By: Whitmire 1-7 Amend S.B. No. 944 in SECTION 1, Section 334.902 of Chapter 334 1-8 (page 11, line 6), by striking the last sentence commencing with 1-9 the word "Consequently," and ending with the word "state." and 1-10 inserting the following sentence in lieu thereof: 1-11 Consequently, any provision of a contract, lease, or other 1-12 agreement between an authority, county, or municipality and a 1-13 professional sports team or club, or its owner, regarding the venue 1-14 for playing home games may be enforceable by specific performance 1-15 by the courts of this state. 1-16 COMMITTEE AMENDMENT NO. 2 By: Whitmire 1-17 Amend S.B. No. 944 by adding a new Section 334.903 to SECTION 1 of 1-18 the bill to read as follows: 1-19 Sec. 334.903. SEVERABILITY. The provisions of this chapter 1-20 shall be severable. If any phrase, clause, sentence, or provision 1-21 of this chapter is declared to be contrary to the constitution of 1-22 this state or of the United States or the application of this 1-23 chapter to any person or circumstance is held invalid, the validity 1-24 of the remainder of this chapter and the the application thereof to 1-25 any person or circumstance shall not be affected thereby. 1-26 A BILL TO BE ENTITLED 1-27 AN ACT 1-28 relating to the financing of sports venues and related 1-29 infrastructure; authorizing the imposition of certain local taxes 1-30 and the issuance of local bonds; providing civil penalties. 1-31 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: 1-32 SECTION 1. Subtitle C, Title 10, Local Government Code, is 1-33 amended by adding Chapter 334 to read as follows: 1-34 CHAPTER 334. SPORTS VENUE AUTHORITIES 1-35 SUBCHAPTER A. GENERAL PROVISIONS 1-36 Sec. 334.001. DEFINITIONS. In this chapter: 1-37 (1) "Approved sports venue project" means a sports 1-38 venue project that either: 1-39 (A) is a prior approved sports venue project; or 1-40 (B) has been approved under this chapter by the 1-41 voters of a sports venue authority. 1-42 (2) "Authority" means a sports venue authority created 1-43 under this chapter. 1-44 (3) "Board" means the board of directors of a sports 1-45 venue authority. 1-46 (4) "Governing body" means the governing body of a 1-47 municipality or the commissioners court of a county. 1-48 (5) "Prior approved sports venue project" means a new 1-49 or renovated stadium, arena, or other facility for a professional 1-50 baseball or football team that was approved by the voters of a 1-51 political subdivision under other law prior to the effective date 1-52 of this chapter. 1-53 (6) "Related infrastructure" means any store, 1-54 restaurant, concession, automobile parking facility, area 1-55 transportation facility, road, street, water or sewer facility, or 1-56 other on-site or off-site improvement that relates to and enhances 1-57 the use, value, or appeal of a sports venue and any other 1-58 expenditure reasonably necessary to construct, improve, renovate, 1-59 or expand a sports venue. 1-60 (7) "Sports venue" means an arena, coliseum, stadium, 1-61 or other type of area or facility: 2-1 (A) that is primarily used or is planned for 2-2 primary use for one or more professional or amateur sports or 2-3 athletics events; 2-4 (B) that is used for rodeo, agricultural, or 2-5 livestock events, exhibitions, and fairs; and 2-6 (C) for which a fee for admission to the sports 2-7 or athletics events, other than occasional civic, charitable, or 2-8 promotional events, is charged or is planned to be charged. 2-9 (8) "Sports venue project" means a sports venue and 2-10 related infrastructure that is planned, acquired, established, 2-11 developed, constructed, or renovated under this chapter. 2-12 Sec. 334.002. APPLICATION OF CHAPTER. This chapter applies 2-13 only to: 2-14 (1) a municipality with a population of more than 1.2 2-15 million; and 2-16 (2) a county with a population of more than 2.2 2-17 million. 2-18 Sec. 334.003. APPLICATION TO SPORTS VENUE CONSTRUCTED UNDER 2-19 OTHER LAW. An authority may use this chapter for a sports venue 2-20 project relating to a sports venue and related infrastructure 2-21 planned, acquired, established, developed, constructed, or 2-22 renovated under other law, including Section 4B, Development 2-23 Corporation Act of 1979 (Article 5190.6, Vernon's Texas Civil 2-24 Statutes), or Subchapter E, Chapter 451, Transportation Code. 2-25 Sec. 334.004. OTHER USES OF SPORTS VENUE PERMITTED. This 2-26 chapter does not prohibit the use of a sports venue project for an 2-27 event that is not related to sports or athletics, such as a 2-28 community-related event. 2-29 (Sections 334.005 to 334.020 reserved for expansion 2-30 SUBCHAPTER B. SPORTS VENUE AUTHORITY 2-31 Sec. 334.021. CREATION. A municipality and a county may 2-32 create a sports venue authority under this chapter to plan, 2-33 acquire, establish, develop, construct, or renovate one or more 2-34 sports venue projects in the authority subject to approval by the 2-35 voters of the authority as provided in Subchapter D. 2-36 Sec. 334.022. ORDER CREATING AUTHORITY. A municipality and 2-37 a county may create an authority under this chapter by adopting a 2-38 concurrent ordinance and order. A concurrent ordinance and order 2-39 must: 2-40 (1) contain substantially identical provisions; and 2-41 (2) define the boundaries of the authority to be 2-42 coextensive with the boundaries of the combined territory of the 2-43 municipality and the county. 2-44 Sec. 334.023. POLITICAL SUBDIVISION; OPEN MEETINGS; OPEN 2-45 RECORDS. (a) An authority is a political subdivision of this 2-46 state. 2-47 (b) An authority is subject to Chapters 551 and 552, 2-48 Government Code. 2-49 (Sections 334.024 to 334.030 reserved for expansion 2-50 SUBCHAPTER C. BOARD OF DIRECTORS 2-51 Sec. 334.031. COMPOSITION AND APPOINTMENT OF BOARD. (a) An 2-52 authority is governed by a board of at least five directors, 2-53 including the chair of the board. 2-54 (b) The board is appointed by the governing bodies of the 2-55 municipality and the county that create the authority. The 2-56 governing bodies are entitled to appoint an equal number of 2-57 directors other than the chair, who shall be jointly appointed by 2-58 the governing bodies. 2-59 (c) Directors serve staggered two-year terms. A director 2-60 may be removed by the appointing governing body, and the chair may 2-61 be removed by both governing bodies acting jointly, at any time 2-62 without cause. Successor directors are appointed in the same 2-63 manner as the appointees whom they succeed. 2-64 (d) To qualify to serve as a director, a person other than 2-65 the chair must be a resident of the municipality or county whose 2-66 governing body appoints the person, and the chair must be a 2-67 resident of at least the county. An employee, officer, or member 2-68 of the governing body of the municipality or county may serve as a 2-69 director but may not have a personal interest in a contract 3-1 executed by the authority other than as an employee, officer, or 3-2 member of the governing body of the municipality or county. 3-3 Sec. 334.032. COMPENSATION. A board member is not entitled 3-4 to compensation but is entitled to reimbursement for actual and 3-5 necessary expenses. 3-6 Sec. 334.033. MEETINGS. The board shall conduct its 3-7 meetings in the authority. 3-8 Sec. 334.034. OFFICERS. The board shall designate from 3-9 among its members a secretary and other officers, except the chair, 3-10 that the board considers necessary. 3-11 (Sections 334.035 to 334.050 reserved for expansion 3-12 SUBCHAPTER D. SPORTS VENUE PROJECTS 3-13 Sec. 334.051. AUTHORITY TO PROVIDE PROJECTS. (a) An 3-14 authority may provide for the planning, acquisition, establishment, 3-15 development, construction, or renovation of a sports venue project 3-16 if the project is: 3-17 (1) a prior approved sports venue project; or 3-18 (2) included in a resolution that is adopted by the 3-19 board of the authority and then approved by a majority of the 3-20 registered voters of the authority voting at an election called and 3-21 held for that purpose under Section 334.052. 3-22 (b) The resolution shall designate the sports venue project 3-23 and each method of financing authorized by this chapter that the 3-24 authority wants to use to finance the project. The resolution may 3-25 designate more than one method of financing. 3-26 Sec. 334.052. ELECTION. (a) The board may order an 3-27 election within the authority's boundaries, which are coextensive 3-28 with the boundaries of the combined territory of the municipality 3-29 and the county that created the authority, on the question of 3-30 approving and implementing a resolution for a sports venue project, 3-31 other than a prior approved sports venue project. 3-32 (b) The order calling the election must: 3-33 (1) designate the sports venue project or projects; 3-34 (2) if more than one sports venue project is 3-35 designated, allow the voters to vote separately on each project; 3-36 (3) designate each method of financing authorized by 3-37 this chapter that the authority wants to use to finance the project 3-38 and the maximum rate of each method; and 3-39 (4) allow the voters to vote, in the same proposition 3-40 or in separate propositions, on the method or methods of financing 3-41 authorized by this chapter that the authority wants to use to 3-42 finance the project or projects and the maximum rates of each 3-43 method or methods. 3-44 (c) The ballot at an election held under this section must 3-45 be printed to permit voting for or against the 3-46 proposition: "Authorizing __________________ (insert name of 3-47 authority) to _________________________ (insert description of 3-48 sports venue project) and to impose a tax ___________________ 3-49 (insert type of tax or taxes) at the rate of 3-50 _________________________ (insert maximum rate or rates of each 3-51 tax) for the purpose of financing the sports venue project." 3-52 (d) If a majority of the votes cast at the election approves 3-53 a project or projects and the method or methods of financing the 3-54 project or projects, as required, the authority may implement the 3-55 resolution. 3-56 (e) The Election Code governs an election held under this 3-57 chapter, except that the uniform election date provisions of 3-58 Section 41.001(a), Election Code, do not apply to an election 3-59 ordered under this section. 3-60 (Sections 334.053 to 334.070 reserved for expansion 3-61 SUBCHAPTER E. POWERS AND DUTIES 3-62 Sec. 334.071. GENERAL POWERS OF AUTHORITY. (a) An 3-63 authority may: 3-64 (1) perform any act necessary to the full exercise of 3-65 the authority's powers; 3-66 (2) accept a gift, grant, or loan from a: 3-67 (A) department or agency of the United States; 3-68 (B) department, agency, or political subdivision 3-69 of this state; or 4-1 (C) public or private person; 4-2 (3) acquire, sell, lease, convey, or otherwise dispose 4-3 of property or an interest in property, including an approved 4-4 sports venue project, under terms and conditions determined by the 4-5 authority, provided that in any such transaction with another 4-6 public entity, the public purpose found by the legislature in 4-7 Section 334.074 shall be deemed adequate consideration for the 4-8 authority and the other public entity; 4-9 (4) employ necessary personnel; and 4-10 (5) adopt rules to govern the operation of the 4-11 authority and its employees and property. 4-12 (b) An authority may contract with a public or private 4-13 person, including the county and municipality that created the 4-14 authority, a sports team, club, organization, or other entity, to: 4-15 (1) plan, acquire, establish, develop, construct, or 4-16 renovate a sports venue project under this chapter or any other 4-17 law; or 4-18 (2) perform any other act the authority is authorized 4-19 to perform under this chapter. 4-20 (c) The competitive bidding laws, including Chapter 271, do 4-21 not apply to the planning, acquisition, establishment, development, 4-22 construction, or renovation of a prior approved sports venue 4-23 project that is a new stadium for a professional baseball team. 4-24 (d) An authority may not levy an ad valorem tax. 4-25 Sec. 334.072. SPORTS VENUE PROJECT FUND. (a) An authority 4-26 shall establish by resolution a fund known as the sports venue 4-27 project fund. The authority may establish separate accounts within 4-28 the fund for the various revenue sources. 4-29 (b) The authority shall deposit into the sports venue 4-30 project fund: 4-31 (1) the proceeds from any tax imposed by the 4-32 authority; and 4-33 (2) any other money required by law to be deposited in 4-34 the fund. 4-35 (c) The authority may deposit into the sports venue project 4-36 fund: 4-37 (1) money derived from innovative funding concepts 4-38 such as the sale or lease of luxury boxes or the sale of licenses 4-39 for personal seats; and 4-40 (2) any other revenue derived from the approved sports 4-41 venue project, including stadium rental payments and revenue from 4-42 concessions and parking. 4-43 (d) The authority may use money in the sports venue project 4-44 fund only to: 4-45 (1) pay or reimburse the costs of planning, acquiring, 4-46 establishing, developing, constructing, or renovating one or more 4-47 approved sports venue projects in the authority; 4-48 (2) pay the principal of, interest on, and other costs 4-49 relating to bonds or other obligations issued by the authority or 4-50 to refund bonds or other obligations; or 4-51 (3) pay the costs of operating or maintaining one or 4-52 more approved sports venue projects during the planning, 4-53 acquisition, establishment, development, construction, or 4-54 renovation or while bonds or other obligations for the planning, 4-55 acquisition, establishment, development, construction, or 4-56 renovation are outstanding. 4-57 (e) Money deposited into the sports venue project fund, 4-58 including money deposited under Subsection (c), is the property of 4-59 the authority depositing the money. 4-60 Sec. 334.073. BONDS AND OTHER OBLIGATIONS. (a) With the 4-61 prior consent of the governing bodies of the municipality and the 4-62 county, an authority in which an approved sports venue project is 4-63 located may issue bonds, including revenue bonds and refunding 4-64 bonds, or other obligations to pay the costs of the approved sports 4-65 venue project. 4-66 (b) Proceeds from the sale of bonds or other obligations 4-67 issued by an authority to provide an approved sports venue project 4-68 shall be deposited in accordance with the documents pursuant to 4-69 which the bonds or other obligations are issued and may be used to 5-1 reimburse the authority, or any other public or private party 5-2 designated by the authority, for costs attributable to the project 5-3 that were paid or incurred before the date of issuance of the bonds 5-4 or other obligations. 5-5 (c) An authority is an issuer and a sports venue project is 5-6 a public utility and an eligible project for purposes of Chapter 5-7 656, Acts of the 68th Legislature, Regular Session, 1983 (Article 5-8 717q, Vernon's Texas Civil Statutes). 5-9 (d) The bonds or other obligations and the proceedings 5-10 authorizing the bonds or other obligations shall be submitted to 5-11 the attorney general for review and approval as required by Article 5-12 3, Chapter 53, Acts of the 70th Legislature, 2nd Called Session, 5-13 1987 (Article 717k-8, Vernon's Texas Civil Statutes). 5-14 (e) The bonds or other obligations must be payable from and 5-15 secured by the revenues in the sports venue project fund. 5-16 (f) The bonds or other obligations may mature serially or 5-17 otherwise not more than 30 years from their date of issuance. 5-18 (g) The bonds or other obligations are not a debt of and do 5-19 not create a claim for payment against the revenue or property of 5-20 the authority other than the revenue sources pledged to pay the 5-21 bonds or other obligations and an approved sports venue project for 5-22 which the bonds or other obligations are issued. 5-23 Sec. 334.074. PUBLIC PURPOSE OF PROJECT. (a) The 5-24 legislature finds for all constitutional and statutory purposes 5-25 that an approved sports venue project is owned, used, and held for 5-26 public purposes by the authority. 5-27 (b) Section 25.07(a), Tax Code, does not apply to a 5-28 leasehold or other possessory interest granted by the authority 5-29 while the authority owns the project. 5-30 (c) The project is exempt from taxation under Section 11.11, 5-31 Tax Code, while the authority owns the project. 5-32 (Sections 334.075 to 334.100 reserved for expansion 5-33 SUBCHAPTER F. SHORT-TERM MOTOR VEHICLE RENTAL TAX 5-34 Sec. 334.101. DEFINITIONS. (a) In this subchapter: 5-35 (1) "Motor vehicle" means a self-propelled vehicle 5-36 designed principally to transport persons or property on a public 5-37 roadway and includes a passenger car, van, station wagon, sports 5-38 utility vehicle, and truck. The term does not include a: 5-39 (A) trailer, semitrailer, house trailer, truck 5-40 having a manufacturer's rating of more than one-half ton, or 5-41 road-building machine; 5-42 (B) device moved only by human power; 5-43 (C) device used exclusively on stationary rails 5-44 or tracks; 5-45 (D) farm machine; or 5-46 (E) mobile office. 5-47 (2) "Rental" means an agreement by the owner of a 5-48 motor vehicle to authorize, for not longer than 30 days, the 5-49 exclusive use of the vehicle to another for consideration. 5-50 (3) "Place of business of the owner" means an 5-51 established outlet, office, or location operated by the owner of a 5-52 motor vehicle or the owner's agent or employee for the purpose of 5-53 renting motor vehicles and includes any location at which three or 5-54 more rentals are made during a year. 5-55 (b) Except as provided by Subsection (a), words used in this 5-56 subchapter and defined by Chapter 152, Tax Code, have the meanings 5-57 assigned by Chapter 152, Tax Code. 5-58 Sec. 334.102. TAX AUTHORIZED. (a) Subject to the 5-59 provisions of Section 334.112, an authority by order may impose a 5-60 tax on the rental in the authority of a motor vehicle. 5-61 (b) An authority by order may repeal or decrease the rate of 5-62 a tax imposed under Subsection (a). 5-63 (c) An authority may impose a tax under this subchapter only 5-64 if: 5-65 (1) the tax is imposed as a method of financing a 5-66 prior approved sports venue project; or 5-67 (2) the sports venue project and the tax are approved 5-68 at an election held under Section 334.052. 5-69 Sec. 334.103. SHORT-TERM RENTAL TAX. (a) The tax 6-1 authorized by this subchapter is imposed at a rate in increments of 6-2 one-eighth of one percent, not to exceed five percent, on the gross 6-3 rental receipts from the rental in the authority of a motor 6-4 vehicle. 6-5 (b) The ballot proposition at an election held to adopt the 6-6 tax must specify the maximum rate of the tax to be adopted. 6-7 Sec. 334.104. RATE INCREASE. An authority that has adopted 6-8 a tax under this subchapter at a rate of less than five percent may 6-9 by order increase the rate of the tax to a maximum of five percent 6-10 if the increase is approved by a majority of the registered voters 6-11 of the authority voting at an election called under Section 6-12 334.052. 6-13 Sec. 334.105. COMPUTATION OF TAX. (a) The owner of a motor 6-14 vehicle subject to the tax imposed under this subchapter shall 6-15 collect the tax for the benefit of the authority. 6-16 (b) The owner shall add the short-term motor vehicle rental 6-17 tax imposed by the authority under this subchapter, if applicable, 6-18 and the gross rental receipts tax imposed by Chapter 152, Tax Code, 6-19 to the rental charge, and the sum of the taxes is a part of the 6-20 rental charge, is a debt owed to the motor vehicle owner by the 6-21 person renting the vehicle, and is recoverable at law in the same 6-22 manner as the rental charge. 6-23 Sec. 334.106. CONSUMMATION OF RENTAL. A rental of a motor 6-24 vehicle occurs in the authority in which transfer of possession of 6-25 the motor vehicle occurs. 6-26 Sec. 334.107. EXEMPTIONS APPLICABLE. The exemptions 6-27 provided by Subchapter E, Chapter 152, Tax Code, apply to the tax 6-28 authorized by this subchapter. 6-29 Sec. 334.108. NOTICE OF TAX. Each bill or other receipt for 6-30 a rental subject to the tax imposed under this subchapter must 6-31 contain a statement in a conspicuous location stating: 6-32 "_____________________ (insert name of taxing authority) requires 6-33 that an additional tax of ____________________ percent (insert rate 6-34 of tax) be imposed on each motor vehicle rental for the purpose of 6-35 financing a sports venue project." 6-36 Sec. 334.109. GROSS RECEIPTS PRESUMED SUBJECT TO TAX. All 6-37 gross receipts of an owner of a motor vehicle from the rental of 6-38 the motor vehicle are presumed to be subject to the tax imposed by 6-39 this subchapter, except for gross receipts for which the owner has 6-40 accepted in good faith a properly completed exemption certificate. 6-41 Sec. 334.110. RECORDS. (a) The owner of a motor vehicle 6-42 used for rental purposes shall keep for four years after the date 6-43 of rental records and supporting documents containing the following 6-44 information on the amount of: 6-45 (1) gross rental receipts received from the rental of 6-46 the motor vehicle; and 6-47 (2) the tax imposed under this subchapter and paid to 6-48 the authority on each motor vehicle used for rental purposes by the 6-49 owner. 6-50 (b) Mileage records are not required. 6-51 Sec. 334.111. FAILURE TO KEEP RECORDS. (a) An owner of a 6-52 motor vehicle commits an offense if the owner fails to make and 6-53 retain complete records for the four-year period required by 6-54 Section 334.110. 6-55 (b) An offense under this section is a misdemeanor 6-56 punishable by a fine of not less than $25 or more than $500. 6-57 Sec. 334.112. EFFECTIVE DATE AND DURATION OF TAX. (a) A 6-58 tax imposed under this subchapter or a change in the tax rate takes 6-59 effect on the date prescribed by the order imposing the tax or 6-60 changing the rate, provided that, effective October 1, 1997, as a 6-61 method of financing prior approved sports venue projects, there 6-62 shall be imposed throughout the territory of an authority created 6-63 pursuant to this chapter a tax under this subchapter at the maximum 6-64 uniform monetary amount on each day or part of a day of a person's 6-65 rental of a motor vehicle in the territory of the authority. If an 6-66 authority has not been created on October 1, 1997, the tax imposed 6-67 under this subchapter shall be imposed on creation of an authority. 6-68 (b) If an authority (1) prior to October 1, 1997, or within 6-69 30 days after the date of its creation, adopts a resolution that 7-1 rejects the tax imposed by Subsection (a) or (2) does not issue 7-2 bonds or other obligations secured by such tax to finance a prior 7-3 approved sports venue project within 24 months after October 1, 7-4 1997, or the date of its creation, the tax shall be abolished. The 7-5 authority may not impose the tax after such bonds or other 7-6 obligations, including any refunding bonds, are no longer 7-7 outstanding. 7-8 Sec. 334.113. TAX COLLECTION; PENALTY. (a) The owner of a 7-9 motor vehicle required to collect the tax imposed under this 7-10 subchapter shall report and send the taxes collected to the 7-11 authority as provided by the order imposing the tax. 7-12 (b) An authority by order may prescribe penalties, including 7-13 interest charges, for failure to keep records required by the 7-14 authority, to report when required, or to pay the tax when due. 7-15 (c) An attorney acting for the authority may bring suit 7-16 against a person who fails to collect a tax under this subchapter 7-17 and to pay it over to the authority as required. The fees of such 7-18 attorney shall be assessed against such person. 7-19 Sec. 334.114. COLLECTION PROCEDURES ON PURCHASE OF MOTOR 7-20 VEHICLE RENTAL BUSINESS. (a) If the owner of a motor vehicle 7-21 rental business that makes rentals subject to the tax imposed by 7-22 this subchapter sells the business, the successor to the seller or 7-23 the seller's assignee shall withhold an amount of the purchase 7-24 price sufficient to pay the amount of tax due until the seller 7-25 provides a receipt by a person designated by the authority to 7-26 provide the receipt showing that the amount has been paid or a 7-27 certificate showing that no tax is due. 7-28 (b) The purchaser of a motor vehicle rental business who 7-29 fails to withhold an amount of the purchase price as required by 7-30 this section is liable for the amount required to be withheld to 7-31 the extent of the value of the purchase price. 7-32 (c) The purchaser of a motor vehicle rental business may 7-33 request that the person designated by the authority to provide a 7-34 receipt under Subsection (a) issue a certificate stating that no 7-35 tax is due or issue a statement of the amount required to be paid 7-36 before a certificate may be issued. The person designated by the 7-37 authority shall issue the certificate or statement not later than 7-38 the 60th day after the date the person receives the request. 7-39 (d) If the person designated by the authority to provide a 7-40 receipt under Subsection (a) fails to issue the certificate or 7-41 statement within the period provided by Subsection (c), the 7-42 purchaser is released from the obligation to withhold the purchase 7-43 price or pay the amount due. 7-44 Sec. 334.115. REIMBURSEMENT FOR TAX COLLECTION EXPENSES. An 7-45 authority by order may permit a person who is required to collect a 7-46 tax under this subchapter to retain a percentage of the amount 7-47 collected and required to be reported as reimbursement to the 7-48 person for the costs of collecting the tax. The authority may 7-49 provide that the person may retain the amount authorized to be 7-50 retained only if the person pays the tax and files reports as 7-51 required by the authority. 7-52 Sec. 334.116. DEPOSIT OF TAX REVENUE. Revenue from the tax 7-53 imposed under this subchapter shall be deposited in the sports 7-54 venue project fund of the authority imposing the tax. 7-55 (Sections 334.117 to 334.130 reserved for expansion 7-56 SUBCHAPTER G. ADMISSIONS TAX 7-57 Sec. 334.131. TAX AUTHORIZED. (a) An authority by order 7-58 may impose a tax on each person admitted to some or all of the 7-59 events at an approved sports venue project in the authority for 7-60 which the authority has issued bonds to plan, acquire, establish, 7-61 develop, construct, or renovate the approved sports venue project. 7-62 (b) The authority may not impose a tax under this subchapter 7-63 for admission to an event at a sports venue that is not an approved 7-64 sports venue project or for which the authority has not issued 7-65 bonds to plan, acquire, establish, develop, construct, or renovate 7-66 the approved sports venue project. 7-67 (c) An authority may impose a tax under this subchapter only 7-68 if: 7-69 (1) the sports venue project is a substantially 8-1 completed prior approved sports venue project; or 8-2 (2) the sports venue project and tax are approved at 8-3 an election held under Section 334.052. 8-4 Sec. 334.132. TAX RATE. (a) The tax authorized by this 8-5 subchapter is imposed at the allowed tax rate on each person 8-6 admitted. 8-7 (b) The amount of the tax may be imposed at any uniform 8-8 monetary amount not to exceed $2. The tax may not be imposed at a 8-9 percentage rate. 8-10 (c) The ballot proposition at an election held to adopt the 8-11 tax must specify the maximum rate of the tax to be adopted. 8-12 (d) The authority by order may repeal or decrease the rate 8-13 of the tax imposed under this subchapter. 8-14 Sec. 334.133. RATE INCREASE. An authority that secured 8-15 voter approval of a tax under this subchapter at a rate of less 8-16 than $2 a person may by order increase the rate of the tax to a 8-17 maximum of $2 a person if the increase is approved by a majority of 8-18 the registered voters of the authority voting at an election called 8-19 and held under Section 334.052. 8-20 Sec. 334.134. COLLECTION. (a) The authority by order may 8-21 require the owner of an approved sports venue project in the 8-22 authority to collect the tax for the benefit of the authority. 8-23 (b) An owner required to collect the tax under this section 8-24 shall add the tax to the admissions price, and the tax is a part of 8-25 the admissions price, is a debt owed to the owner of the approved 8-26 sports venue project by the person admitted, and is recoverable at 8-27 law in the same manner as the admissions charge. 8-28 (c) The tax imposed by this subchapter is not an occupation 8-29 tax imposed on the owner of the approved sports venue project. 8-30 Sec. 334.135. EFFECTIVE DATE AND DURATION OF TAX. (a) A 8-31 tax imposed under this subchapter or a change in a tax rate takes 8-32 effect on the date prescribed by the order imposing the tax or 8-33 changing the rate. 8-34 (b) An authority may impose a tax under this subchapter only 8-35 if the authority issues bonds or other obligations under Section 8-36 334.073. The authority may not impose the tax after such bonds or 8-37 other obligations, including any refunding bonds, are no longer 8-38 outstanding. 8-39 Sec. 334.136. COLLECTION OF TAX. (a) A person required to 8-40 collect a tax imposed under this subchapter shall report and send 8-41 the taxes collected to the authority as provided by the authority 8-42 imposing the tax. 8-43 (b) An authority by order may prescribe penalties, including 8-44 interest charges, for failure to keep records required by the 8-45 authority, to report when required, or to pay the tax when due. An 8-46 attorney acting for the authority may bring suit against a person 8-47 who fails to collect a tax under this subchapter and to pay it over 8-48 to the authority as required. The fees of the attorney shall be 8-49 assessed against the person. 8-50 (c) An authority by order may permit a person who is 8-51 required to collect a tax under this subchapter to retain a 8-52 percentage of the amount collected and required to be reported as 8-53 reimbursement to the person for the costs of collecting the tax. 8-54 The authority may provide that the person may retain the amount 8-55 authorized only if the person pays the tax and files reports as 8-56 required by the authority. 8-57 Sec. 334.137. DEPOSIT OF TAX REVENUE. Revenue from the tax 8-58 imposed under this subchapter shall be deposited in the sports 8-59 venue project fund of the authority imposing the tax. 8-60 (Sections 334.138 to 334.180 reserved for expansion 8-61 SUBCHAPTER H. PARKING TAX 8-62 Sec. 334.181. EVENT PARKING TAX. (a) An authority by order 8-63 may impose a tax on each motor vehicle parking in a parking 8-64 facility of, or within a prescribed distance from, an approved 8-65 sports venue project. 8-66 (b) The authority may impose the tax on vehicles during a 8-67 period beginning not more than three hours before and ending not 8-68 more than three hours after the time an event in an approved sports 8-69 venue project is scheduled to begin. 9-1 (c) An authority may impose a tax under this subchapter only 9-2 if: 9-3 (1) the sports venue project is a substantially 9-4 completed prior approved sports venue project; or 9-5 (2) the sports venue project and the tax are approved 9-6 at an election held under Section 334.052. 9-7 Sec. 334.182. TAX RATE. (a) The authority by order may 9-8 prescribe the coverage of the tax imposed by this subchapter and 9-9 may provide that the tax is imposed at a flat amount on each parked 9-10 motor vehicle or is imposed as a percentage of the amount charged 9-11 for event parking by the owner of the parking facility. 9-12 (b) Regardless of the method of imposition, the amount of 9-13 the tax may not exceed $1 for each motor vehicle. 9-14 (c) The ballot proposition at an election held to adopt the 9-15 tax must specify the maximum rate of the tax to be adopted. 9-16 (d) The authority by order may repeal or decrease the rate 9-17 of the tax imposed under this subchapter. 9-18 Sec. 334.183. RATE INCREASE. An authority that secured 9-19 voter approval of a tax under this subchapter at a rate of less 9-20 than $1 a vehicle may by order increase the rate of the tax to a 9-21 maximum of $1 a vehicle if the increase is approved by a majority 9-22 of the registered voters of the authority voting at an election 9-23 called and held under Section 334.052. 9-24 Sec. 334.184. COLLECTION. (a) The authority by order may 9-25 require the owner of a parking facility to collect the tax for the 9-26 benefit of the authority. 9-27 (b) An owner required to collect the tax under this section 9-28 shall add the tax to the parking charge, and the tax is a part of 9-29 the parking charge, is a debt owed to the parking facility owner by 9-30 the person parking, and is recoverable at law in the same manner as 9-31 the parking charge. 9-32 (c) The tax imposed by this subchapter is not an occupation 9-33 tax imposed on the owner of the parking facility. 9-34 Sec. 334.185. EFFECTIVE DATE AND DURATION OF TAX. (a) A 9-35 tax imposed under this subchapter or a change in the tax rate takes 9-36 effect on the date prescribed by the order imposing the tax or 9-37 changing the rate. 9-38 (b) An authority may impose a tax under this subchapter only 9-39 if the authority issues bonds or other obligations under Section 9-40 334.073. The authority may not impose the tax after such bonds or 9-41 other obligations, including any refunding bonds, are no longer 9-42 outstanding. 9-43 Sec. 334.186. COLLECTION OF TAX. (a) A person required to 9-44 collect a tax imposed under this subchapter shall report and send 9-45 the taxes collected to the authority as provided by the authority 9-46 imposing the tax. 9-47 (b) An authority by order may prescribe penalties, including 9-48 interest charges, for failure to keep records required by the 9-49 authority, to report when required, or to pay the tax when due. An 9-50 attorney acting for the authority may bring suit against a person 9-51 who fails to collect a tax under this subchapter and to pay it over 9-52 to the authority as required. The fees of the attorney shall be 9-53 assessed against the person. 9-54 (c) An authority by order may permit a person who is 9-55 required to collect a tax under this subchapter to retain a 9-56 percentage of the amount collected and required to be reported as 9-57 reimbursement to the person for the costs of collecting the tax. 9-58 The authority may provide that the person may retain the amount 9-59 authorized only if the person pays the tax and files reports 9-60 required by the authority. 9-61 Sec. 334.187. DEPOSIT OF TAX REVENUE. Revenue from the tax 9-62 imposed under this subchapter shall be deposited in the sports 9-63 venue project fund of the authority imposing the tax. 9-64 (Sections 334.188 to 334.230 reserved for expansion 9-65 SUBCHAPTER I. HOTEL OCCUPANCY TAXES 9-66 Sec. 334.231. DEFINITION. In this subchapter, "hotel" has 9-67 the meaning assigned by Section 156.001, Tax Code. 9-68 Sec. 334.232. TAX AUTHORIZED. (a) Subject to the 9-69 provisions of Section 334.237, an authority by order may impose a 10-1 tax on a person who, under a lease, concession, permit, right of 10-2 access, license, contract, or agreement, pays for the use or 10-3 possession, or for the right to the use or possession, of a room 10-4 that is in a hotel, costs $2 or more each day, and is ordinarily 10-5 used for sleeping. 10-6 (b) An authority may impose a tax under this subchapter only 10-7 if: 10-8 (1) the tax is imposed as a method of financing a 10-9 prior approved sports venue project; or 10-10 (2) the sports venue project and the tax are approved 10-11 at an election held under Section 334.052. 10-12 Sec. 334.233. TAX CODE APPLICABLE. Sections 352.002(b) and 10-13 (c) and Sections 352.004, 352.0041, 352.005, and 352.007, Tax Code, 10-14 govern the imposition, computation, administration, collection, and 10-15 remittance of the tax authorized under this subchapter except as 10-16 inconsistent with this subchapter. 10-17 Sec. 334.234. TAX RATE. (a) The tax authorized by this 10-18 subchapter may be imposed at any rate not to exceed two percent of 10-19 the price paid for a room in a hotel. 10-20 (b) The ballot proposition at an election held to adopt the 10-21 tax must specify the maximum rate of the tax to be adopted. 10-22 Sec. 334.235. RATE INCREASE. An authority that has adopted 10-23 a tax under this subchapter at a rate of less than two percent may 10-24 by ordinance or order increase the rate of the tax to a maximum of 10-25 two percent if the increase is approved by a majority of the 10-26 registered voters of the authority voting at an election called 10-27 under Section 334.052. 10-28 Sec. 334.236. NOTICE OF TAX. Each bill or other receipt for 10-29 a hotel charge subject to the tax imposed under this subchapter 10-30 must contain a statement in a conspicuous location stating: 10-31 "___________________________ (insert name of taxing authority) 10-32 requires that an additional tax of ________ percent (insert rate of 10-33 tax) be imposed on each hotel charge for the purpose of financing a 10-34 sports venue project." 10-35 Sec. 334.237. EFFECTIVE DATE AND DURATION OF TAX. (a) A 10-36 tax imposed under this subchapter or a change in the tax rate takes 10-37 effect on the date prescribed by the order imposing the tax or 10-38 changing the rate, provided that, effective October 1, 1997, as a 10-39 method of financing prior approved sports venue projects, there 10-40 shall be imposed throughout the territory of an authority created 10-41 pursuant to this chapter a tax under this subchapter at the maximum 10-42 uniform monetary amount on the use or possession of a room that is 10-43 in a hotel, costs $2 or more each day, and is ordinarily used for 10-44 sleeping. If an authority has not been created on October 1, 1997, 10-45 the tax imposed under this subchapter shall be imposed on creation 10-46 of an authority. 10-47 (b) If an authority (1) prior to October 1, 1997, or within 10-48 30 days after the date of its creation, adopts a resolution that 10-49 rejects the tax imposed by Subsection (a) or (2) does not issue 10-50 bonds or other obligations secured by such tax to finance a prior 10-51 approved sports venue project within 24 months after October 1, 10-52 1997, or the date of its creation, the tax shall be abolished. The 10-53 authority may not impose the tax after such bonds or other 10-54 obligations, including any refunding bonds, are no longer 10-55 outstanding. 10-56 Sec. 334.238. DEPOSIT OF TAX REVENUE. Revenue from the tax 10-57 imposed under this subchapter shall be deposited in the sports 10-58 venue project fund of the authority imposing the tax. 10-59 (Sections 334.239 to 334.900 reserved for expansion 10-60 SUBCHAPTER Z. MISCELLANEOUS PROVISIONS 10-61 Sec. 334.901. HISTORICALLY UNDERUTILIZED BUSINESSES. An 10-62 authority shall make good faith efforts to meet or exceed goals for 10-63 awarding contracts or subcontracts associated with approved sports 10-64 venue projects to historically underutilized businesses. Such 10-65 goals shall be consistent with any state law that by its terms is 10-66 applicable to approved sports venue projects. 10-67 Sec. 334.902. SPECIFIC PERFORMANCE. It is expressly found 10-68 and determined by the legislature that the presence of a 10-69 professional sports team in an authority, county, or municipality 11-1 provides a unique value to such authority, county, or municipality 11-2 that cannot be adequately measured in dollars. It is further 11-3 expressly found and determined that an authority, county, or 11-4 municipality would suffer irreparable injury if a professional 11-5 sports team ceases to play its home games in the authority, county, 11-6 or municipality. Consequently, any contracts, leases, or other 11-7 agreements between an authority, county, or municipality and a 11-8 professional sports team or club, or its owner, shall be 11-9 enforceable by specific performance by the courts of this state. 11-10 SECTION 2. Subchapter I, Chapter 151, Tax Code, is amended 11-11 by adding Section 151.430 to read as follows: 11-12 Sec. 151.430. SALES AND USE TAX REFUND FOR APPROVED SPORTS 11-13 VENUE PROJECT. (a) A sports venue authority created under Chapter 11-14 334, Local Government Code, shall receive a rebate, refund, or 11-15 payment for the incremental increase in the proceeds of state and 11-16 local sales and use taxes paid by or collected at an approved 11-17 sports venue project, as defined in Chapter 334, Local Government 11-18 Code, located in the authority if the comptroller determines, in 11-19 response to a written request from the authority, that such rebate, 11-20 refund, or payment will not have a negative fiscal impact on state 11-21 revenues. 11-22 (b) "Incremental increase in the proceeds of state and local 11-23 sales and use taxes" means the amount of state and local sales and 11-24 use taxes received by a taxing entity that is generated, paid, or 11-25 collected within the taxing entity's fiscal year by all businesses 11-26 operating in the approved sports venue project, after adjustment 11-27 for normal economic growth and for the effects of any change in the 11-28 rate of the tax or in the items subject to the tax, and that 11-29 exceeds the amount of those taxes generated, paid, or collected by 11-30 those businesses in the taxing entity's fiscal year preceding the 11-31 fiscal year in which the approved sports venue project is approved. 11-32 (c) A prior approved sports venue project, as defined in 11-33 Chapter 334, Local Government Code, is deemed approved as of the 11-34 effective date of that chapter; provided, however, that if such a 11-35 project is being used by a professional baseball or football team 11-36 as of such effective date, the fiscal year in which such project 11-37 shall be deemed approved for the purposes of this section is the 11-38 first fiscal year thereafter in which neither a professional 11-39 baseball or football team used the project. 11-40 (d) An authority shall begin receiving the rebate, refund, 11-41 or payment under this section after the expiration of the first 11-42 complete calendar quarter after the date that the approved sports 11-43 venue project is approved, or deemed approved, and the comptroller 11-44 receives written notice of such approval from the authority. The 11-45 authority shall deposit such rebate, refund, or payment in the 11-46 sports venue project fund, as provided for in Chapter 334, Local 11-47 Government Code, and may use such money as any other money 11-48 deposited in that fund. The authority may not receive the rebate, 11-49 refund, or payment after any bonds or other obligations, including 11-50 refunding bonds, which are secured by such money and issued to 11-51 provide financing of an approved sports venue project are no longer 11-52 outstanding. 11-53 SECTION 3. The initial members of the board of directors of 11-54 a sports venue authority created under Chapter 334, Local 11-55 Government Code, as added by this Act, shall by lot choose one-year 11-56 or two-year terms. If an even number of directors are appointed, 11-57 then an equal number shall have one-year terms and two-year terms. 11-58 If an odd number of directors are appointed, the number of members 11-59 to serve two-year terms shall be one more than the number to serve 11-60 one-year terms. 11-61 SECTION 4. All acts and proceedings authorized or undertaken 11-62 by a municipality, county, or authority that were taken before the 11-63 effective date of this Act, including acts and proceedings to 11-64 create an authority, are hereby validated and confirmed in all 11-65 respects, provided that such validation and confirmation do not 11-66 apply to any act or proceeding that is subject to litigation that 11-67 is pending on the effective date of the Act. 11-68 SECTION 5. The importance of this legislation and the 11-69 crowded condition of the calendars in both houses create an 12-1 emergency and an imperative public necessity that the 12-2 constitutional rule requiring bills to be read on three several 12-3 days in each house be suspended, and this rule is hereby suspended, 12-4 and that this Act take effect and be in force from and after its 12-5 passage, and it is so enacted. 12-6 * * * * *