1-1                                   AN ACT
 1-2     relating to the approval and financing of sports and community
 1-3     venue projects.
 1-4           BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
 1-5           SECTION 1. Section 334.001(4), Local Government Code, is
 1-6     amended to read as follows:
 1-7                 (4)  "Venue" means:
 1-8                       (A)  an arena, coliseum, stadium, or other type
 1-9     of area or facility:
1-10                             (i)  that is used or is planned for use for
1-11     one or more professional or amateur sports events, community
1-12     events, or other sports events, including rodeos, livestock shows,
1-13     agricultural expositions, promotional events, and other civic or
1-14     charitable events; and
1-15                             (ii)  for which a fee for admission to the
1-16     events is charged or is planned to be charged;
1-17                       (B)  a convention center facility or related
1-18     improvement such as a convention center, civic center, civic center
1-19     building, civic center hotel, auditorium, theater, opera house,
1-20     music hall, exhibition hall, rehearsal hall, park, zoological park,
1-21     museum, aquarium, or plaza located in the vicinity of a convention
1-22     center or facility owned by a municipality or a county;
1-23                       (C)  a tourist development area along an inland
1-24     waterway;
 2-1                       (D)  a municipal parks and recreation system, or
 2-2     improvements or additions to a parks and recreation system, or an
 2-3     area or facility that is part of a municipal parks and recreation
 2-4     system; and
 2-5                       (E)  a project authorized by Section 4A or 4B,
 2-6     Development Corporation Act of 1979 (Article 5190.6, Vernon's Texas
 2-7     Civil Statutes), as that Act existed on September 1, 1997 [any
 2-8     other economic development project authorized by other law].
 2-9           SECTION 2. Subchapter B, Chapter 334, Local Government Code,
2-10     is amended by adding Section 334.025 to read as follows:
2-11           Sec. 334.025.  FALSE AND MISLEADING CAMPAIGN MATERIAL. (a)
2-12     In this section, "campaign material" means a communication
2-13     supporting or opposing the authorization of a venue project that:
2-14                 (1)  in return for consideration, is published in a
2-15     newspaper, magazine, or other periodical or is broadcast by radio
2-16     or television; or
2-17                 (2)  appears in a pamphlet, circular, flier, billboard
2-18     or other sign, bumper sticker, or similar form of written
2-19     communication.
2-20           (b)  A person may not print, broadcast, or publish, or cause
2-21     to be printed, broadcast, or published, campaign material that
2-22     contains false and misleading information.
2-23           (c)  An individual may file a complaint with the Texas Ethics
2-24     Commission in accordance with Subchapter E, Chapter 571, Government
2-25     Code, alleging a violation of Subsection (b).  The commission may
2-26     impose a penalty in accordance with Chapter 571, Government Code,
2-27     if the commission determines that the campaign materials contain
 3-1     false and misleading information.
 3-2           (d)  Notwithstanding any other law, the Texas Ethics
 3-3     Commission has jurisdiction to consider and investigate a complaint
 3-4     filed under this section and to impose a penalty.
 3-5           SECTION 3. Subchapter E, Chapter 334, Local Government Code,
 3-6     is amended by adding Section 334.1135 to read as follows:
 3-7           Sec. 334.1135.  REIMBURSEMENT FOR TAX COLLECTION EXPENSES.
 3-8     (a)  Subject to Subsection (b), a municipality or county shall
 3-9     allow a person who is required to collect and remit the tax imposed
3-10     under this subchapter one percent of the amount collected and
3-11     required to be remitted as reimbursement to the person for the
3-12     costs of collecting the tax.
3-13           (b)  A person required to collect and remit the tax imposed
3-14     under this subchapter is not entitled to reimbursement under
3-15     Subsection (a) unless the municipality or county receives the
3-16     amount required to be collected not later than the 15th day after
3-17     the end of the collection period.  If the 15th day is on a weekend
3-18     or holiday, the municipality or county  must receive the amount
3-19     required to be collected not later than the first working day after
3-20     the 15th day.  If the person remits the amount required to be
3-21     collected by mail, the date postmarked by the United States Postal
3-22     Service is considered to be the date of receipt by the municipality
3-23     or county.
3-24           SECTION 4. Section 334.2515, Local Government Code, is
3-25     amended to read as follows:
3-26           Sec. 334.2515.  APPLICATION. Except as provided by Section
3-27     334.2516, this [This] subchapter does not apply to the financing of
 4-1     a venue project that is:
 4-2                 (1)  an area or facility that is part of a municipal
 4-3     parks and recreation system as described by Section 334.001(4)(D);
 4-4     or
 4-5                 (2)  a project described by Section 334.001(4)(E),
 4-6     except for projects described in Section 334.001(4)(A).
 4-7           SECTION 5. Subchapter H, Chapter 334, Local Government Code,
 4-8     is amended by adding Section 334.2516 to read as follows:
 4-9           Sec. 334.2516.  USE OF REVENUE BY CERTAIN MUNICIPALITIES FOR
4-10     CERTAIN PURPOSES. (a)  This section applies only to a municipality
4-11     that:
4-12                 (1)  is located in three counties;
4-13                 (2)  has a population of less than 120,000; and
4-14                 (3)  acquires by purchase or lease with a term of not
4-15     less than 20 years an interest in real property that by the terms
4-16     of the acquisition is required to be maintained as park property.
4-17           (b)  A municipality may use revenue under this subchapter to
4-18     acquire, construct, improve, and equip a venue project that is a
4-19     convention center facility or related infrastructure to be
4-20     constructed on real property described by Subsection (a)(3).  In
4-21     addition, the municipality may pledge the revenue to the payment of
4-22     bonds or other obligations the municipality issues to finance the
4-23     convention center facility infrastructure.
4-24           SECTION 6. Section 334.256, Local Government Code, is amended
4-25     to read as follows:
4-26           Sec. 334.256.  NOTICE OF TAX. (a)  Each bill or other receipt
4-27     for a hotel charge subject to the tax imposed under this subchapter
 5-1     must contain a statement in a conspicuous location stating:
 5-2     "___________ (insert name of taxing municipality or county)
 5-3     requires that an additional tax of _____ percent (insert rate of
 5-4     tax) be imposed on each hotel charge for the purpose of financing a
 5-5     venue project.  In addition to the tax imposed to finance a venue
 5-6     project, the State of Texas requires  that a tax of six percent be
 5-7     imposed on each hotel charge."
 5-8           (b)  If a hotel charge is subject to any additional hotel
 5-9     occupancy taxes, the statement required by Subsection (a) must be
5-10     modified to state each additional entity that imposes a hotel
5-11     occupancy tax and the rate of that tax.
5-12           SECTION 7. Subchapter D, Chapter 335, Local Government Code,
5-13     is amended by adding Section 335.055 to read as follows:
5-14           Sec. 335.055.  FALSE AND MISLEADING CAMPAIGN MATERIAL. (a)
5-15     In this section, "campaign material" means a communication
5-16     supporting or opposing the authorization of a venue project that:
5-17                 (1)  in return for consideration, is published in a
5-18     newspaper, magazine, or other periodical or is broadcast by radio
5-19     or television; or
5-20                 (2)  appears in a pamphlet, circular, flier, billboard
5-21     or other sign, bumper sticker, or similar form of written
5-22     communication.
5-23           (b)  A person may not print, broadcast, or publish, or cause
5-24     to be printed, broadcast, or published, campaign material that
5-25     contains false and misleading information.
5-26           (c)  An individual may file a complaint with the Texas Ethics
5-27     Commission in accordance with Subchapter E, Chapter 571, Government
 6-1     Code, alleging a violation of Subsection (b).  The commission may
 6-2     impose a penalty in accordance with Chapter 571, Government Code,
 6-3     if the commission determines that the campaign materials contain
 6-4     false and misleading information.
 6-5           (d)  Notwithstanding any other law, the Texas Ethics
 6-6     Commission has jurisdiction to consider and investigate a complaint
 6-7     filed under this section and to impose a penalty.
 6-8           SECTION 8.  Section 4B(a-3)(1), Development Corporation Act
 6-9     of 1979 (Article 5190.6, Vernon's Texas Civil Statutes), is amended
6-10     to read as follows:
6-11                 (1)  A city that creates or has created a corporation
6-12     governed by this section may submit to the voters of the city, at a
6-13     separate election to be held on a uniform election date or at an
6-14     election held under another provision of this Act, including the
6-15     election at which the proposition to initially authorize the
6-16     collection of a sales and use tax for the benefit of the
6-17     corporation is submitted, a ballot proposition that authorizes the
6-18     corporation to use the sales and use tax, including any amount
6-19     previously authorized and collected, for a specific sports venue
6-20     project, including related infrastructure, or for a specific
6-21     category of sports venue projects, including related
6-22     infrastructure.  Prior approval of a specific sports venue project
6-23     at an election or completion of a specific sports venue project
6-24     approved at an election does not prohibit a city from seeking voter
6-25     approval of an additional project or category of projects under
6-26     this subsection to be funded from the same sales and use tax that
6-27     is used to fund the previously approved sports venue project.  This
 7-1     subsection does not affect the authority of a municipality to call
 7-2     an election under this section to levy a sales and use tax for any
 7-3     purpose authorized by this section after the sales and use tax
 7-4     described by this subsection is no longer collected as provided by
 7-5     Subsection (i) of this section.
 7-6           SECTION 9.  Section 4B(h), Development Corporation Act of
 7-7     1979 (Article 5190.6, Vernon's Texas Civil Statutes), is amended to
 7-8     read as follows:
 7-9           (h)  Bonds or other obligations having a maturity not longer
7-10     than 30 years and issued to pay the costs of projects of the types
7-11     added to the definition of that term by Subsection (a) of this
7-12     section may be made payable from any source of funds available to
7-13     the corporation, including the proceeds of a sales and use tax
7-14     imposed under this section.  [The principal amount of bonds and
7-15     other obligations that by their terms are payable in whole or in
7-16     part from the sales and use tax, together with the amount of the
7-17     costs of the projects, other than interest on bonds and other
7-18     obligations, for which payment is made in cash directly from the
7-19     proceeds of the tax, may not, in the aggregate, exceed $135
7-20     million.] The bonds or other obligations that by their terms are
7-21     payable from the tax may not be paid in whole or in part from any
7-22     property taxes raised or to be raised by the eligible city and are
7-23     not a debt of and do not give rise to a claim for payment against
7-24     the eligible city except as to sales and use tax revenue held by a
7-25     city and required under this section to be paid over to the
7-26     corporation.
7-27           SECTION 10. (a)  This Act takes effect September 1, 2001.
 8-1           (b)  This Act does not apply to a sports and community venue
 8-2     project approved before the effective date of this Act.  A sports
 8-3     and community venue project approved before the effective date of
 8-4     this Act is governed by the law in effect on the date the venue
 8-5     project was approved, and that law is continued in effect for that
 8-6     purpose.
 8-7           (c)  This Act does not apply to the use of tax revenue
 8-8     pledged to secure bonds issued before the effective date of this
 8-9     Act.  Tax revenue pledged to secure bonds issued before the
8-10     effective date of this Act is governed by the law in effect on the
8-11     date the bonds were issued, and that law is continued in effect for
8-12     that purpose.
8-13           (d)  This Act does not apply to the use of tax revenue
8-14     pledged or dedicated before the effective date of this Act for the
8-15     acquisition of sites for and the construction, improvement,
8-16     enlarging, equipping, repairing, operation, and maintenance of
8-17     sports and community venue projects.  Tax revenue pledged for these
8-18     purposes before the effective date of this Act is governed by the
8-19     law in effect on the date the revenue was pledged, and that law is
8-20     continued in effect for that purpose.
8-21           (e)  This Act does not apply to the use of tax revenue for a
8-22     sports and community venue project that was under construction on
8-23     the effective date of this Act, including the pledging of such
8-24     revenue to secure bonds, additional bonds, and refunding bonds.
8-25     Tax revenue used for a sports and community venue project that was
8-26     under construction on the effective date of this Act is governed by
8-27     the law in effect immediately before the effective date of this
 9-1     Act, and that law is continued in effect for that purpose.
         _______________________________     _______________________________
             President of the Senate              Speaker of the House
               I certify that H.B. No. 1772 was passed by the House on April
         4, 2001, by a non-record vote; and that the House concurred in
         Senate amendments to H.B. No. 1772 on May 24, 2001, by a non-record
         vote; and that the House adopted H.C.R. No. 309 authorizing certain
         corrections in H.B. No. 1772 on May 24, 2001, by a non-record vote.
                                             _______________________________
                                                 Chief Clerk of the House
               I certify that H.B. No. 1772 was passed by the Senate, with
         amendments, on May 21, 2001, by a viva-voce vote; and that the
         Senate adopted H.C.R. No. 309 authorizing certain corrections in
         H.B. No. 1772 on May 28, 2001, by a viva-voce vote.
                                             _______________________________
                                                 Secretary of the Senate
         APPROVED:  __________________________
                              Date
                    __________________________
                            Governor