By: Galloway S.B. No. 1747
Line and page numbers may not match official copy.
Bill not drafted by TLC or Senate E&E.
A BILL TO BE ENTITLED
AN ACT
1-1 relating to the financing of sports venues in certain counties;
1-2 authorizing the imposition of certain local taxes and the issuance
1-3 of local bonds; providing penalties.
1-4 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
1-5 SECTION 1. Subtitle B, Title 10, Local Government Code, is
1-6 amended by adding Chapter 326 to read as follows:
1-7 CHAPTER 326. COUNTY SPORTS VENUES
1-8 SUBCHAPTER A. GENERAL PROVISIONS
1-9 Sec. 326.001. DEFINITIONS. In this chapter:
1-10 (1) "Approved sports venue project" means a sports
1-11 venue project that is approved under this chapter by the voters of
1-12 a county.
1-13 (2) "Related infrastructure" means any store,
1-14 restaurant, concession, automobile parking facility, area
1-15 transportation facility, road, street, water, or sewer facility, or
1-16 other on-site or off-site improvement that relates to and enhances
1-17 the use, value, or appeal of a sports venue and any other
1-18 expenditure reasonably necessary to construct, improve, renovate,
1-19 or expand a sports venue.
1-20 (3) "Sports venue" means an arena, coliseum, stadium,
1-21 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 (4) "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. 326.002. APPLICATION OF CHAPTER. This chapter applies
2-13 only to a county with a population of more than 2.2 million.
2-14 Sec. 326.003. APPLICATION TO SPORTS VENUE CONSTRUCTED UNDER
2-15 OTHER LAW. A county may use this chapter for a sports venue
2-16 project relating to a sports venue and related infrastructure
2-17 planned, acquired, established, developed, constructed, or
2-18 renovated under other law, including Section 4B, Development
2-19 Corporation Act of 1979 (Article 5190.6, Vernon's Texas Civil
2-20 Statutes), or Subchapter E, Chapter 451, Transportation Code.
2-21 Sec. 326.004. PROHIBITION ON USE OF OTHER FINANCING. If a
2-22 county votes to finance the planning, acquisition, establishment,
2-23 development, construction, or renovation of one or more sports
2-24 venue projects in the county under this chapter, the county or a
2-25 political subdivision wholly or partially located in the county may
3-1 not use any other provision of this title to plan, acquire,
3-2 establish, develop, construct, or renovate a sports venue project.
3-3 Sec. 326.005. OTHER USES OF SPORTS VENUE PERMITTED. This
3-4 chapter does not prohibit the use of a sports venue project for an
3-5 event that is not related to sports or athletics, such as a
3-6 community-related event.
3-7 (Sections 326.006-326.020 reserved for expansion
3-8 SUBCHAPTER B. SPORTS VENUE PROJECTS
3-9 Sec. 326.021. AUTHORITY TO PROVIDE PROJECTS. (a) A county
3-10 by resolution may provide for the planning, acquisition,
3-11 establishment, development, construction, or renovation of a sports
3-12 venue project if the resolution is approved by a majority of the
3-13 registered voters of the county voting at an election called and
3-14 held for that purpose under Section 326.022.
3-15 (b) The resolution shall designate the sports venue project
3-16 and each method of financing authorized by this chapter that the
3-17 county wants to use to finance the project. The resolution may
3-18 designate more than one method of financing.
3-19 Sec. 326.022. ELECTION. (a) The commissioners court of a
3-20 county may order an election on the question of approving and
3-21 implementing a resolution for a sports venue project.
3-22 (b) The order calling the election must:
3-23 (1) designate the sports venue project or projects;
3-24 (2) if more than one sports venue project is
3-25 designated, allow the voters to vote separately on each project;
4-1 (3) designate each method of financing authorized by
4-2 this chapter that the county wants to use to finance the project
4-3 and the maximum rate of each method; and
4-4 (4) allow the voters to vote, in the same proposition
4-5 or in separate propositions, on the method or methods of financing
4-6 authorized by this chapter that the county wants to use to finance
4-7 the project or projects and the maximum rates of each method or
4-8 methods.
4-9 (c) If only one sports venue project and one method of
4-10 financing are to be voted on, the ballot at the election must be
4-11 printed to permit voting for or against the proposition:
4-12 "Authorizing ____________ County (insert name of county) to
4-13 ____________ (insert description of sports venue project) and to
4-14 impose a ____________ tax at the rate of ____________ (insert the
4-15 type of tax and the maximum rate of the tax) for the purpose of
4-16 financing the sports venue project."
4-17 (d) If more than one sports venue project or more than one
4-18 method of financing, or both, is to be voted on in a single
4-19 proposition, the county shall ensure that the ballot clearly
4-20 specifies each project included, each method of financing
4-21 authorized by this chapter that the county wants to use to finance
4-22 a project, which method will be used for which project, and the
4-23 maximum rate of each method.
4-24 (e) If a majority of the votes cast at the election approves
4-25 a project or projects and the method or methods of financing the
5-1 project or projects, as required, the county may implement the
5-2 resolution.
5-3 (f) The Election Code governs an election held under this
5-4 chapter, except that the uniform election date provisions of
5-5 Section 41.001(a), Election Code, do not apply to an election
5-6 ordered under this section.
5-7 (Sections 326.023-326.070 reserved for expansion
5-8 SUBCHAPTER C. POWERS AND DUTIES
5-9 Sec. 326.071. GENERAL POWERS OF COUNTY. (a) A county may:
5-10 (1) perform any act necessary to the full exercise of
5-11 the county's powers under this chapter;
5-12 (2) accept a gift, grant, or loan from a:
5-13 (A) department or agency of the United States;
5-14 (B) department, agency, or political subdivision
5-15 of this state; or
5-16 (C) public or private person;
5-17 (3) acquire, sell, lease, convey, or otherwise dispose
5-18 of property or an interest in property, including an approved
5-19 sports venue project, under terms and conditions determined by the
5-20 county, provided that in any transaction with another public
5-21 entity, the public purpose found by the legislature in Section
5-22 326.074 is adequate consideration for the county and the other
5-23 public entity.
5-24 (b) A county may contract with a public or private person,
5-25 including a sports team, club, organization, or other entity, to:
6-1 (1) plan, acquire, establish, develop, construct, or
6-2 renovate a sports venue project under this chapter or any other
6-3 law; or
6-4 (2) perform any other act the county is authorized to
6-5 perform under this chapter.
6-6 (c) The competitive bidding laws, including Chapter 271, do
6-7 not apply to the planning, acquisition, establishment, development,
6-8 construction, or renovation of a sports venue project that is a new
6-9 stadium for a professional baseball team.
6-10 (d) A county may not use ad valorem taxes to plan, acquire,
6-11 establish, develop, construct, or renovate a sport venue project.
6-12 Sec. 326.072. SPORTS VENUE PROJECT FUND. (a) A county
6-13 shall establish by resolution a fund known as the sports venue
6-14 project fund. The county may establish separate accounts within
6-15 the fund for the various revenue sources.
6-16 (b) The county shall deposit into the sports venue project
6-17 fund the proceeds from the sales and use tax imposed by the county
6-18 under Subchapter D.
6-19 (c) The county may deposit into the sports venue project
6-20 fund:
6-21 (1) money derived from innovative funding concepts
6-22 such as the sale or lease of luxury boxes or the sale of licenses
6-23 for personal seats; and
6-24 (2) any other revenue derived from the approved sports
6-25 venue project, including stadium rental payments and revenue from
7-1 concessions and parking.
7-2 (d) The county may use money in the sports venue project
7-3 fund only to:
7-4 (1) pay or reimburse the costs of planning, acquiring,
7-5 establishing, developing, constructing, or renovating one or more
7-6 approved sports venue projects in the county
7-7 (2) pay the principal of, interest on, and other costs
7-8 relating to bonds or other obligations issued by the county or to
7-9 refund bonds or other obligations; or
7-10 (3) pay the costs of operating or maintaining one or
7-11 more approved sports venue projects during the planning,
7-12 acquisition, establishment, development, construction, or
7-13 renovation or while bonds or other obligations for the planning,
7-14 acquisition, establishment, development, construction, or
7-15 renovation are outstanding.
7-16 (e) Money deposited into the sports venue project fund,
7-17 including money deposited under Subsection (c), is the property of
7-18 the county depositing the money.
7-19 Sec. 326.073. BONDS AND OTHER OBLIGATIONS. (a) The county
7-20 may issue bonds, including revenue bonds and refunding bonds, or
7-21 other obligations to pay the costs of the approved sports venue
7-22 project.
7-23 (b) Proceeds from the sale of bonds or other obligations
7-24 issued by an county to provide an approved sports venue project
7-25 shall be deposited in accordance with the documents under which the
8-1 bonds or other obligations are issued and may be used to reimburse
8-2 the county, or any other public or private party designated by the
8-3 county, for costs attributable to the project that were paid or
8-4 incurred before the date of issuance of the bonds or other
8-5 obligations.
8-6 (c) The county is an issuer and a sports venue project is a
8-7 public utility and an eligible project for purposes of Chapter 656,
8-8 Acts of the 68th Legislature, Regular Session, 1983 (Article 717q,
8-9 Vernon's Texas Civil Statutes).
8-10 (d) The bonds or other obligations and the proceedings
8-11 authorizing the bonds or other obligations shall be submitted to
8-12 the attorney general for review and approval as required by Article
8-13 3, Chapter 53, Acts of the 70th Legislature, 2nd Called Session,
8-14 1987 (Article 717k-8, Vernon's Texas Civil Statutes).
8-15 (e) The bonds or other obligations may be payable from and
8-16 secured by the revenues in the sports venue project fund.
8-17 (f) The bonds or other obligations may mature serially or
8-18 otherwise not more than five years from their date of issuance.
8-19 (g) The bonds or other obligations are not a debt of and do
8-20 not create a claim for payment against the revenue or property of
8-21 the county other than the revenue sources pledged to pay the bonds
8-22 or other obligations and an approved sports venue project for which
8-23 the bonds or other obligations are issued.
8-24 Sec. 326.074. PUBLIC PURPOSE OF PROJECT. (a) The
8-25 legislature finds for all constitutional and statutory purposes
9-1 that an approved sports venue project is owned, used, and held for
9-2 public purposes by the county.
9-3 (b) Section 25.07(a), Tax Code, does not apply to a
9-4 leasehold or other possessory interest granted by the county while
9-5 the county owns the project.
9-6 (c) The project is exempt from taxation under Section 11.11,
9-7 Tax Code, while the county owns the project.
9-8 (Sections 326.075-326.100 reserved for expansion
9-9 SUBCHAPTER D. SALES AND USE TAX
9-10 Sec. 326.101. SALES AND USE TAX. (a) A county by order may
9-11 impose a sales and use tax under this subchapter.
9-12 (b) A county by order may repeal or decrease the rate of a
9-13 tax imposed under this subchapter.
9-14 (c) A county may impose a tax under this subchapter only if:
9-15 (1) an approved sports venue project is or is planned
9-16 to be located in the county; and
9-17 (2) the tax is approved at an election held under
9-18 Section 326.022.
9-19 Sec. 326.102. TAX CODE APPLICABLE. (a) Chapter 323, Tax
9-20 Code, governs the imposition, computation, administration,
9-21 collection, and remittance of the tax authorized under this
9-22 subchapter except as inconsistent with this subchapter.
9-23 (b) Section 323.101(b), Tax Code, does not apply to the tax
9-24 authorized by this subchapter. Except as provided by Section
9-25 326.105, Section 323.101(d), Tax Code, does not apply to the tax
10-1 authorized by this subchapter.
10-2 Sec. 326.103. TAX RATE. (a) The rate of a tax adopted
10-3 under this subchapter must be one-eighth, one-fourth,
10-4 three-eighths, or one-half of one percent.
10-5 (b) The ballot proposition at the election held to adopt the
10-6 tax must specify the rate of the tax to be adopted.
10-7 Sec. 326.104. RATE INCREASE. (a) A county that has adopted
10-8 a sales and use tax under this subchapter at a rate of less than
10-9 one-half of one percent may by order increase the rate of the tax
10-10 if the increase is approved by a majority of the registered voters
10-11 of that county voting at an election called and held for that
10-12 purpose.
10-13 (b) The tax may be increased under Subsection (a) in one or
10-14 more increments of one-eighth of one percent to a maximum of
10-15 one-half of one percent.
10-16 (c) The ballot for an election to increase the tax shall be
10-17 printed to permit voting for or against the proposition: "The
10-18 adoption of a sales and use tax for the purpose of financing
10-19 __________ (insert description of sports venue project) at the
10-20 rate of __________ of one percent (interest one-fourth,
10-21 three-eighths, or one-half, as appropriate)."
10-22 Sec. 326.105. IMPOSITION IN COUNTY WITH TRANSIT AUTHORITY.
10-23 (a) If the county is included within the boundaries of a rapid
10-24 transit authority created under Chapter 451, Transportation Code,
10-25 or a regional transportation authority created under Chapter 452,
11-1 Transportation Code, and the adoption or increase of the tax under
11-2 this subchapter would result in a combined tax rate of more than
11-3 two percent in any location in the county, the election to approve
11-4 or increase the tax under this chapter is to be treated for all
11-5 purposes as an election to reduce the tax rate of the transit or
11-6 transportation authority to the highest rate that will not result
11-7 in a combined tax rate of more than two percent in any location in
11-8 the county.
11-9 (b) The rate of the tax imposed by a rapid transit authority
11-10 under Chapter 451, Transportation Code, or by a regional
11-11 transportation authority under Chapter 452, Transportation Code, is
11-12 increased without further action of the board of the transit
11-13 authority or the voters of the transit authority or county on the
11-14 date on which the tax imposed under this subchapter is decreased
11-15 or expires, but only to the extent that any tax imposed by the
11-16 transit authority was reduced under this section when the tax
11-17 imposed by the county was adopted or increased.
11-18 (c) This section does not permit a transit authority to
11-19 impose taxes at differential tax rates within the territory of the
11-20 transit authority.
11-21 Sec. 326.106. IMPOSITION OF TAX. (a) If the county adopts
11-22 the tax, a tax is imposed on the receipts from the sale at retail
11-23 of taxable items in the county at the rate approved at the
11-24 election.
11-25 (b) There is also imposed an excise tax on the use, storage,
12-1 or other consumption in the county of tangible personal property
12-2 purchased, leased, or rented from a retailer during the period that
12-3 the tax is effective in the county. The rate of the excise tax is
12-4 the same as the rate of the sales tax portion of the tax and is
12-5 applied to the sale price of the tangible personal property.
12-6 Sec. 326.107. EFFECTIVE DATE OF TAX. The adoption of the
12-7 tax or the change of the tax rate takes effect on the first day of
12-8 the first calendar quarter occurring after the expiration of the
12-9 first complete quarter occurring after the date on which the
12-10 comptroller receives a notice of the results of the election
12-11 adopting or increasing the tax or of the order decreasing the tax.
12-12 Sec. 326.108. DEPOSIT OF TAX REVENUES. Revenue from the tax
12-13 imposed under this subchapter shall be deposited in the sports
12-14 venue project fund of the county imposing the tax.
12-15 Sec. 326.109. ABOLITION OF TAX. (a) A sales and use tax
12-16 imposed under this subchapter may not be collected after the
12-17 earlier of:
12-18 (1) the fifth anniversary of the date on which the tax
12-19 takes effect; or
12-20 (2) the last day of the first calendar quarter
12-21 occurring after notification to the comptroller by the county that
12-22 all bonds or other obligations of the county that are payable in
12-23 whole or in part from sales and use tax money in the sports venue
12-24 project fund, including any refunding bonds or other obligations,
12-25 have been paid in full or the full amount of money, exclusive of
13-1 guaranteed interest, necessary to pay in full the bonds and other
13-2 obligations has been set aside in a trust account dedicated to the
13-3 payment of the bonds and other obligations.
13-4 (b) The county shall notify the comptroller of the date
13-5 described by Subsection (a) not later than the 60th day before that
13-6 date.
13-7 (Sections 326.110-326.150 reserved for expansion
13-8 SUBCHAPTER E. ADMISSIONS TAX
13-9 Sec. 326.151. TAX AUTHORIZED. (a) A county by order may
13-10 impose a tax on each person admitted to some or all of the events
13-11 at an approved sports venue project in the county.
13-12 (b) The county may not impose a tax under this subchapter
13-13 for admission to an event at a sports venue that is not an approved
13-14 sports venue project.
13-15 (c) A county may impose a tax under this subchapter only if
13-16 the sports venue project and tax are approved at an election held
13-17 under Section 326.022.
13-18 Sec. 326.152. TAX RATE. (a) The tax authorized by this
13-19 subchapter is imposed at the allowed tax rate on each person
13-20 admitted.
13-21 (b) The amount of the tax may be imposed at any uniform
13-22 monetary amount not to exceed $2. The tax may not be imposed at a
13-23 percentage rate.
13-24 (c) The ballot proposition at an election held to adopt the
13-25 tax must specify the maximum rate of the tax to be adopted.
14-1 (d) The county by order may repeal or decrease the rate of
14-2 the tax imposed under this subchapter.
14-3 Sec. 326.153. RATE INCREASE. A county that secured voter
14-4 approval of a tax under this subchapter at a rate of less than $2 a
14-5 person may by order increase the rate of the tax to a maximum of $2
14-6 a person if the increase is approved by a majority of the
14-7 registered voters of the county voting at an election called and
14-8 held for that purpose.
14-9 Sec. 326.154. COLLECTION. (a) The county by order may
14-10 require the owner or lessee of an approved sports venue project in
14-11 the county to collect the tax for the benefit of the county.
14-12 (b) An owner or lessee required to collect the tax under
14-13 this section shall add the tax to the admissions price, and the tax
14-14 is a part of the admissions price, is a debt owed to the owner or
14-15 lessee of the approved sports venue project by the person admitted,
14-16 and is recoverable at law in the same manner as the admissions
14-17 charge.
14-18 (c) The tax imposed by this subchapter is not an occupation
14-19 tax imposed on the owner or lessee of the approved sports venue
14-20 project.
14-21 Sec. 326.155. EFFECTIVE DATE OF TAX. A tax imposed under
14-22 this subchapter or a change in a tax rate takes effect on the date
14-23 prescribed by the order imposing the tax or changing the rate.
14-24 Sec. 326.156. COLLECTION OF TAX. (a) A person required to
14-25 collect a tax imposed under this subchapter shall report and send
15-1 the taxes collected to the county as provided by the county
15-2 imposing the tax.
15-3 (b) A county by order may prescribe penalties, including
15-4 interest charges, for failure to keep records required by the
15-5 county, to report when required, or to pay the tax when due. An
15-6 attorney acting for the county may bring suit against a person who
15-7 fails to collect a tax under this subchapter and to pay it over to
15-8 the county as required. The fees of the attorney shall be assessed
15-9 against the person.
15-10 (c) A county by order may permit a person who is required to
15-11 collect a tax under this subchapter to retain a percentage of the
15-12 amount collected and required to be reported as reimbursement to
15-13 the person for the costs of collecting the tax. The county may
15-14 provide that the person may retain the amount authorized only if
15-15 the person pays the tax and files reports as required by the
15-16 county.
15-17 Sec. 326.157. DEPOSIT OF TAX REVENUE. Revenue from the tax
15-18 imposed under this subchapter shall be deposited in the general
15-19 fund of the county imposing the tax.
15-20 (Sections 326.158-326.180 reserved for expansion
15-21 SUBCHAPTER F. PARKING TAX
15-22 Sec. 326.181. EVENT PARKING TAX. (a) A county by order may
15-23 impose a tax on each motor vehicle parking in a parking facility
15-24 of, or within a prescribed distance from, an approved sports venue
15-25 project.
16-1 (b) The county may impose the tax on vehicles during a
16-2 period beginning not more than three hours before and ending not
16-3 more than three hours after the time an event in an approved sports
16-4 venue project is scheduled to begin.
16-5 (c) A county may impose a tax under this subchapter only if
16-6 the sports venue project and the tax are approved at an election
16-7 held under Section 326.022.
16-8 Sec. 326.182. TAX RATE. (a) The county by order may
16-9 prescribe the coverage of the tax imposed by this subchapter and
16-10 may provide that the tax is imposed at a flat amount on each parked
16-11 motor vehicle or is imposed as a percentage of the amount charged
16-12 for event parking by the owner or lessee of the parking facility.
16-13 (b) Regardless of the method of imposition, the amount of
16-14 the tax may not exceed $1 for each motor vehicle.
16-15 (c) The ballot proposition at an election held to adopt the
16-16 tax must specify the maximum rate of the tax to be adopted.
16-17 (d) The county by order may repeal or decrease the rate of
16-18 the tax imposed under this subchapter.
16-19 Sec. 326.183. RATE INCREASE. A county that secured voter
16-20 approval of a tax under this subchapter at a rate of less than $1 a
16-21 vehicle may by order increase the rate of the tax to a maximum of
16-22 $1 a vehicle if the increase is approved by a majority of the
16-23 registered voters of the county voting at an election called and
16-24 held for that purpose.
16-25 Sec. 326.184. COLLECTION. (a) The county by order may
17-1 require the owner or lessee of a parking facility to collect the
17-2 tax for the benefit of the county.
17-3 (b) An owner or lessee required to collect the tax under
17-4 this section shall add the tax to the parking charge, and the tax
17-5 is a part of the parking charge, is a debt owed to the parking
17-6 facility owner or lessee by the person parking, and is recoverable
17-7 at law in the same manner as the parking charge.
17-8 (c) The tax imposed by this subchapter is not an occupation
17-9 tax imposed on the owner or lessee of the parking facility.
17-10 Sec. 326.185. EFFECTIVE DATE OF TAX. A tax imposed under
17-11 this subchapter or a change in the tax rate takes effect on the
17-12 date prescribed by the order imposing the tax or changing the rate.
17-13 Sec. 326.186. COLLECTION OF TAX. (a) A person required to
17-14 collect a tax imposed under this subchapter shall report and send
17-15 the taxes collected to the county as provided by the county
17-16 imposing the tax.
17-17 (b) A county by order may prescribe penalties, including
17-18 interest charges, for failure to keep records required by the
17-19 county, to report when required, or to pay the tax when due. An
17-20 attorney acting for the county may bring suit against a person who
17-21 fails to collect a tax under this subchapter and to pay it over to
17-22 the county as required. The fees of the attorney shall be assessed
17-23 against the person.
17-24 (c) A county by order may permit a person who is required to
17-25 collect a tax under this subchapter to retain a percentage of the
18-1 amount collected and required to be reported as reimbursement to
18-2 the person for the costs of collecting the tax. The county may
18-3 provide that the person may retain the amount authorized only if
18-4 the person pays the tax and files reports required by the county.
18-5 Sec. 326.187. DEPOSIT OF TAX REVENUE. Revenue from the tax
18-6 imposed under this subchapter shall be deposited in the general
18-7 revenue fund of the county imposing the tax.
18-8 SECTION 2. (a) Not later than September 15, 1997, the
18-9 commissioners court of a county to which Chapter 326, Local
18-10 Government Code, as added by this Act, applies shall adopt a
18-11 resolution providing for the improvement, renovation, or expansion
18-12 of one or more sports venue projects, as that term is defined by
18-13 Section 326.001, Local Government Code, as added by this Act, using
18-14 the financing methods provided by Chapter 326. (b) The
18-15 commissioners court shall call and hold an election on November 4,
18-16 1997, on the question of approving and implementing the resolution
18-17 in accordance with Section 326.022, Local Government Code, as added
18-18 by this Act.
18-19 SECTION 3. This Act takes effect on the first date on which
18-20 it may take effect under Section 39, Article III, Texas
18-21 Constitution.
18-22 SECTION 4. The importance of this legislation and the
18-23 crowded condition of the calendars in both houses create an
18-24 emergency and an imperative public necessity that the
18-25 constitutional rule requiring bills to be read on three several
19-1 days in each house be suspended, and this rule is hereby suspended,
19-2 and that this Act take effect and be in force according to its
19-3 terms, and it is so enacted.