By West S.B. No. 1724
75R7668 CBH-F
A BILL TO BE ENTITLED
1-1 AN ACT
1-2 relating to the financing of sports venues, other projects, and
1-3 related infrastructure; authorizing the imposition of certain local
1-4 taxes and the issue of local bonds; providing 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. SPORTS VENUES AND OTHER PROJECTS
1-9 SUBCHAPTER A. GENERAL PROVISIONS
1-10 Sec. 334.001. DEFINITIONS. In this chapter:
1-11 (1) "Approved sports venue project" means a sports
1-12 venue project or other project authorized by Section 334.002 that
1-13 has been approved under this chapter by the voters of a
1-14 municipality or county.
1-15 (2) "Governing body" means the governing body of a
1-16 municipality or the commissioners court of a county.
1-17 (3) "Related infrastructure" means any store,
1-18 restaurant, concession, automobile parking facility, area
1-19 transportation facility, road, street, water, or sewer facility,
1-20 or other on-site or off-site improvement that relates to and
1-21 enhances the use, value, or appeal of a sports venue or other
1-22 project authorized by Section 334.002 and any other expenditure
1-23 reasonably necessary to construct, improve, renovate, or expand a
1-24 sports venue or other project.
2-1 (4) "Sports venue" means an arena, coliseum, stadium,
2-2 or other type of area or facility:
2-3 (A) that is primarily used or is planned for
2-4 primary use for one or more professional or amateur sports or
2-5 athletics events; and
2-6 (B) 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 (5) "Sports venue project" means a sports venue or
2-10 other project authorized by Section 334.002 and related
2-11 infrastructure that is planned, acquired, established, developed,
2-12 constructed, or renovated under this chapter.
2-13 Sec. 334.002. OTHER PROJECTS. A county or municipality may
2-14 use this chapter for a project allowed by Section 4B, Development
2-15 Corporation Act of 1979 (Article 5190.6, Vernon's Texas Civil
2-16 Statutes), or Subchapter E, Chapter 451, Transportation Code.
2-17 Sec. 334.003. OTHER USES OF SPORTS VENUE PERMITTED. This
2-18 chapter does not prohibit the use of a sports venue for an event
2-19 that is not related to sports or athletics, such as a
2-20 community-related event.
2-21 (Sections 334.004-334.020 reserved for expansion
2-22 SUBCHAPTER B. SPORTS VENUE PROJECTS
2-23 Sec. 334.021. RESOLUTION AUTHORIZING PROJECT. (a) A county
2-24 or municipality by resolution may provide for the planning,
2-25 acquisition, establishment, development, construction, or
2-26 renovation of a sports venue project if the resolution is approved
2-27 by a majority of the qualified voters of the municipality or county
3-1 voting at an election called and held for that purpose under
3-2 Section 334.022.
3-3 (b) The resolution must designate the sports venue project
3-4 and the maximum rate of the sales and use tax to be imposed to
3-5 finance the project.
3-6 Sec. 334.022. ELECTION. (a) The governing body of the
3-7 municipality or county may order an election on the question of
3-8 approving and implementing the resolution.
3-9 (b) The order calling the election must:
3-10 (1) allow the voters to vote separately on each sports
3-11 venue project;
3-12 (2) designate the sports venue project; and
3-13 (3) designate the maximum rate of the sales and use
3-14 tax to be imposed to finance the project.
3-15 (c) The ballot at the election held under this section must
3-16 be printed to permit voting for or against the proposition:
3-17 "Authorizing ________ (insert name of municipality or county) to
3-18 _______ (insert description of sports venue project) and to impose
3-19 a sales and use tax at the rate of ________ of one percent (insert
3-20 one-eighth, one-fourth, three-eighths, or one-half, as appropriate)
3-21 for the purpose of financing the project."
3-22 (d) The Election Code governs an election held under this
3-23 chapter, except that the uniform election date provisions of
3-24 Section 41.001(a), Election Code, do not apply to an election
3-25 ordered under this section.
3-26 (Sections 334.023-334.040 reserved for expansion
4-1 SUBCHAPTER C. POWERS AND DUTIES
4-2 Sec. 334.041. GENERAL POWERS. (a) A municipality or county
4-3 may perform any act necessary to the full exercise of the
4-4 municipality's or county's powers under this chapter.
4-5 (b) A municipality or county may acquire, sell, lease,
4-6 convey, or otherwise dispose of property or an interest in
4-7 property, including an approved sports venue project, under terms
4-8 and conditions determined by the municipality or county.
4-9 (c) A municipality or county may contract with a public or
4-10 private person, including a sports team, club, organization, or
4-11 other entity to:
4-12 (1) plan, acquire, establish, develop, construct, or
4-13 renovate an approved sports venue project; or
4-14 (2) perform any other act the municipality or county
4-15 is authorized to perform under this chapter.
4-16 (d) If a municipality or county contracts with a sports team
4-17 or club for the construction, renovation, or operation of an
4-18 approved sports venue project, the municipality or county is not a
4-19 party to a subsequent contract between the team or club and another
4-20 person relating to the project. The competitive bidding laws,
4-21 including Chapter 271, Local Government Code, do not apply to a
4-22 contract between a team or club and another person under this
4-23 subsection.
4-24 Sec. 334.042. SPORTS VENUE PROJECT FUND. (a) A
4-25 municipality or county in which an approved sports venue project is
4-26 located shall establish by resolution a fund known as the sports
4-27 venue project fund.
5-1 (b) The municipality or county shall deposit into the sports
5-2 venue project fund:
5-3 (1) the proceeds of the sales and use tax imposed by
5-4 the municipality or county under this chapter;
5-5 (2) all revenue from the sale of bonds or other
5-6 obligations by the municipality or county under this chapter; and
5-7 (3) any other money required by law to be deposited in
5-8 the fund.
5-9 (c) The municipality or county may deposit into the sports
5-10 venue project fund:
5-11 (1) money derived from innovative funding concepts
5-12 such as the sale or lease of luxury boxes or the sale of licenses
5-13 for personal seats; and
5-14 (2) any other revenue derived from the approved sports
5-15 venue project, including stadium rental payments and revenue from
5-16 concessions and parking.
5-17 (d) The municipality or county may use money in the sports
5-18 venue project fund to:
5-19 (1) pay the costs of planning, acquiring,
5-20 establishing, developing, constructing, or renovating one or more
5-21 approved sports venue projects in the municipality or county;
5-22 (2) pay the principal of, interest on, and other costs
5-23 relating to bonds or other obligations issued by the municipality
5-24 or county or to refund bonds, notes, or other obligations; or
5-25 (3) pay the costs of operating or maintaining one or
5-26 more approved sports venue projects during the planning,
5-27 acquisition, establishment, development, construction, or
6-1 renovation or while bonds, notes, or other obligations for the
6-2 planning, acquisition, establishment, development, construction, or
6-3 renovation are outstanding.
6-4 (e) Money deposited into the sports venue project fund,
6-5 including money deposited under Subsection (b)(3), is the property
6-6 of the municipality or county depositing the money.
6-7 Sec. 334.043. BONDS AND OTHER OBLIGATIONS. (a) A
6-8 municipality or county in which an approved sports venue project is
6-9 located may issue bonds, including revenue bonds and refunding
6-10 bonds, or other obligations to pay the costs of the approved
6-11 sports venue project.
6-12 (b) The bonds or other obligations and the proceedings
6-13 authorizing the bonds or other obligations shall be submitted to
6-14 the attorney general for review and approval as required by Article
6-15 3, Chapter 53, Acts of the 70th Legislature, 2nd Called Session,
6-16 1987 (Article 717k-8, Vernon's Texas Civil Statutes).
6-17 (c) The bonds or other obligations must be payable from and
6-18 secured by the revenues in the sports venue project fund.
6-19 (d) The bonds or other obligations may mature serially or
6-20 otherwise not more than four years from their date of issuance.
6-21 (e) The bonds or other obligations are not a debt of and do
6-22 not create a claim for payment against the revenue or property of
6-23 the municipality or county other than an approved sports venue
6-24 project for which the bonds are issued.
6-25 Sec. 334.044. PUBLIC PURPOSE OF PROJECT. (a) The
6-26 legislature finds for all constitutional and statutory purposes
6-27 that an approved sports venue project is owned, used, and held for
7-1 public purposes by the municipality or county.
7-2 (b) Section 25.07(a), Tax Code, does not apply to a
7-3 leasehold or other possessory interest granted by the municipality
7-4 or county while the municipality or county owns the project.
7-5 (c) The project is exempt from taxation under Section 11.11,
7-6 Tax Code, while the municipality or county owns the project.
7-7 (Sections 334.045-334.080 reserved for expansion
7-8 SUBCHAPTER D. SALES AND USE TAX
7-9 Sec. 334.081. SALES AND USE TAX. (a) A municipality by
7-10 ordinance or a county by order may impose a sales and use tax under
7-11 this subchapter.
7-12 (b) A municipality by ordinance or a county by order may
7-13 repeal or decrease the rate of a tax imposed under this subchapter.
7-14 (c) A municipality or county may impose a tax under this
7-15 subchapter only if:
7-16 (1) an approved sports venue project is or is planned
7-17 to be located in the municipality or county; and
7-18 (2) the tax is approved at an election held under
7-19 Section 334.022.
7-20 Sec. 334.082. TAX CODE APPLICABLE. (a) Chapter 321, Tax
7-21 Code, governs the imposition, computation, administration,
7-22 collection, and remittance of a municipal tax authorized under this
7-23 subchapter except as inconsistent with this subchapter.
7-24 (b) Chapter 323, Tax Code, governs the imposition,
7-25 computation, administration, collection, and remittance of a county
7-26 tax authorized under this subchapter except as inconsistent with
7-27 this subchapter.
8-1 (c) Section 321.101(f), Tax Code, and Sections 323.101(b)
8-2 and (d), Tax Code, do not apply to the tax authorized by this
8-3 subchapter.
8-4 Sec. 334.083. TAX RATE. (a) The rate of a tax adopted
8-5 under this subchapter must be one-eighth, one-fourth,
8-6 three-eighths, or one-half of one percent.
8-7 (b) The ballot proposition at the election held to adopt the
8-8 tax must specify the rate of the tax to be adopted.
8-9 Sec. 334.084. RATE INCREASE. (a) A municipality or county
8-10 that has adopted a sales and use tax under this subchapter at a
8-11 rate of less than one-half of one percent may by ordinance or order
8-12 increase the rate of the tax if the increase is approved by a
8-13 majority of the registered voters of that municipality or county
8-14 voting at an election called and held for that purpose.
8-15 (b) The tax may be increased under Subsection (a) in one or
8-16 more increments of one-eighth of one percent to a maximum of
8-17 one-half of one percent.
8-18 (c) The ballot for an election to increase the tax shall be
8-19 printed to permit voting for or against the proposition: "The
8-20 adoption of a sales and use tax for the purpose of financing
8-21 _______ (insert description of sports venue project) at the rate of
8-22 _______ of one percent (insert one-fourth, three-eighths, or
8-23 one-half, as appropriate)."
8-24 Sec. 334.085. IMPOSITION OF TAX. (a) If the municipality
8-25 or county adopts the tax, a tax is imposed on the receipts from the
8-26 sale at retail of taxable items in the municipality or county at
8-27 the rate approved at the election.
9-1 (b) There is also imposed an excise tax on the use, storage,
9-2 or other consumption in the municipality or county of tangible
9-3 personal property purchased, leased, or rented from a retailer
9-4 during the period that the tax is effective in the municipality or
9-5 county. The rate of the excise tax is the same as the rate of the
9-6 sales tax portion of the tax and is applied to the sale price of
9-7 the tangible personal property.
9-8 Sec. 334.086. EFFECTIVE DATE OF TAX. The adoption of the
9-9 tax or the change of the tax rate takes effect on the first day of
9-10 the first calendar quarter occurring after the expiration of the
9-11 first complete quarter occurring after the date on which the
9-12 comptroller receives a notice of the results of the election
9-13 adopting or increasing the tax or of the ordinance or order
9-14 decreasing the tax.
9-15 Sec. 334.087. DEPOSIT OF TAX REVENUES. Revenue from the tax
9-16 imposed under this subchapter shall be deposited in the sports
9-17 venue project fund of the municipality or county imposing the tax.
9-18 Sec. 334.088. ABOLITION OF TAX. (a) A sales and use tax
9-19 imposed under this subchapter may not be collected after the last
9-20 day of the first calendar quarter occurring after notification to
9-21 the comptroller by the municipality or county that the municipality
9-22 or county has abolished the tax or that all bonds or other
9-23 obligations of the municipality or county that are payable in whole
9-24 or in part from money in the sports venue project fund, including
9-25 any refunding bonds or other obligations, have been paid in full or
9-26 the full amount of money, exclusive of guaranteed interest,
9-27 necessary to pay in full the bonds and other obligations has been
10-1 set aside in a trust account dedicated to the payment of the bonds
10-2 and other obligations.
10-3 (b) The municipality or county shall notify the comptroller
10-4 of the expiration of the tax not later than the 60th day before the
10-5 expiration date.
10-6 SECTION 2. The importance of this legislation and the
10-7 crowded condition of the calendars in both houses create an
10-8 emergency and an imperative public necessity that the
10-9 constitutional rule requiring bills to be read on three several
10-10 days in each house be suspended, and this rule is hereby suspended,
10-11 and that this Act take effect and be in force from and after its
10-12 passage, and it is so enacted.