1-1     By:  Brimer (Senate Sponsor - Harris)                 H.B. No. 1772
 1-2           (In the Senate - Received from the House April 5, 2001;
 1-3     April 9, 2001, read first time and referred to Committee on State
 1-4     Affairs; May 9, 2001, reported adversely, with favorable Committee
 1-5     Substitute by the following vote:  Yeas 8, Nays 0; May 9, 2001,
 1-6     sent to printer.)
 1-7     COMMITTEE SUBSTITUTE FOR H.B. No. 1772                  By:  Harris
 1-8                            A BILL TO BE ENTITLED
 1-9                                   AN ACT
1-10     relating to the approval and financing of sports and community
1-11     venue projects.
1-12           BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
1-13           SECTION 1. Section 334.001(4), Local Government Code, is
1-14     amended to read as follows:
1-15                 (4)  "Venue" means:
1-16                       (A)  an arena, coliseum, stadium, or other type
1-17     of area or facility:
1-18                             (i)  that is used or is planned for use for
1-19     one or more professional or amateur sports events, community
1-20     events, or other sports events, including rodeos, livestock shows,
1-21     agricultural expositions, promotional events, and other civic or
1-22     charitable events; and
1-23                             (ii)  for which a fee for admission to the
1-24     events is charged or is planned to be charged;
1-25                       (B)  a convention center facility or related
1-26     improvement such as a convention center, civic center, civic center
1-27     building, civic center hotel, auditorium, theater, opera house,
1-28     music hall, exhibition hall, rehearsal hall, park, zoological park,
1-29     museum, aquarium, or plaza located in the vicinity of a convention
1-30     center or facility owned by a municipality or a county;
1-31                       (C)  a tourist development area along an inland
1-32     waterway;
1-33                       (D)  a municipal parks and recreation system, or
1-34     improvements or additions to a parks and recreation system, or an
1-35     area or facility that is part of a municipal parks and recreation
1-36     system; and
1-37                       (E)  a project authorized by Section 4A or 4B,
1-38     Development Corporation Act of 1979 (Article 5190.6, Vernon's Texas
1-39     Civil Statutes), as that Act existed on September 1, 1997 [any
1-40     other economic development project authorized by other law].
1-41           SECTION 2. Subchapter B, Chapter 334, Local Government Code,
1-42     is amended by adding Section 334.025 to read as follows:
1-43           Sec. 334.025.  FALSE AND MISLEADING CAMPAIGN MATERIAL. (a)
1-44     In this section, "campaign material" means a communication
1-45     supporting or opposing the authorization of a venue project that:
1-46                 (1)  in return for consideration, is published in a
1-47     newspaper, magazine, or other periodical or is broadcast by radio
1-48     or television; or
1-49                 (2)  appears in a pamphlet, circular, flier, billboard
1-50     or other sign, bumper sticker, or similar form of written
1-51     communication.
1-52           (b)  A person may not print, broadcast, or publish, or cause
1-53     to be printed, broadcast, or published, campaign material that
1-54     contains false and misleading information.
1-55           (c)  An individual may file a complaint with the Texas Ethics
1-56     Commission in accordance with Subchapter E, Chapter 571, Government
1-57     Code, alleging a violation of Subsection (b).  The commission may
1-58     impose a penalty in accordance with Chapter 571, Government Code,
1-59     if the commission determines that the campaign materials contain
1-60     false and misleading information.
1-61           (d)  Notwithstanding any other law, the Texas Ethics
1-62     Commission has jurisdiction to consider and investigate a complaint
1-63     filed under this section and to impose a penalty.
1-64           SECTION 3. Subchapter E, Chapter 334, Local Government Code,
 2-1     is amended by adding Section 334.1135 to read as follows:
 2-2           Sec. 334.1135.  REIMBURSEMENT FOR TAX COLLECTION EXPENSES.
 2-3     (a)  Subject to Subsection (b), a municipality or county shall
 2-4     allow a person who is required to collect and remit the tax imposed
 2-5     under this subchapter one percent of the amount collected and
 2-6     required to be remitted as reimbursement to the person for the
 2-7     costs of collecting the tax.
 2-8           (b)  A person required to collect and remit the tax imposed
 2-9     under this subchapter is not entitled to reimbursement under
2-10     Subsection (a) unless the municipality or county receives the
2-11     amount required to be collected not later than the 15th day after
2-12     the end of the collection period.  If the 15th day is on a weekend
2-13     or holiday, the municipality or county  must receive the amount
2-14     required to be collected not later than the first working day after
2-15     the 15th day.  If the person remits the amount required to be
2-16     collected by mail, the date postmarked by the United States Postal
2-17     Service is considered to be the date of receipt by the municipality
2-18     or county.
2-19           SECTION 4. Section 334.2515, Local Government Code, is
2-20     amended to read as follows:
2-21           Sec. 334.2515.  APPLICATION. Except as provided by Section
2-22     334.2516, this [This] subchapter does not apply to the financing of
2-23     a venue project that is:
2-24                 (1)  an area or facility that is part of a municipal
2-25     parks and recreation system as described by Section 334.001(4)(D);
2-26     or
2-27                 (2)  a project described by Section 334(4)(E), except
2-28     for projects described in Section 334.001(4)(a).
2-29           SECTION 5. Subchapter H, Chapter 334, Local Government Code,
2-30     is amended by adding Section 334.2516 to read as follows:
2-31           Sec. 334.2516.  USE OF REVENUE BY CERTAIN MUNICIPALITIES FOR
2-32     CERTAIN PURPOSES. (a)  This section applies only to a municipality
2-33     that:
2-34                 (1)  is located in three counties;
2-35                 (2)  has a population of less than 120,000; and
2-36                 (3)  acquires by purchase or lease with a term of not
2-37     less than 20 years an interest in real property that by the terms
2-38     of the acquisition is required to be maintained as park property.
2-39           (b)  A municipality may use revenue under this subchapter to
2-40     acquire, construct, improve, and equip a venue project that is a
2-41     convention center facility or related infrastructure to be
2-42     constructed on real property described by Subsection (a)(3).  In
2-43     addition, the municipality may pledge the revenue to the payment of
2-44     bonds or other obligations the municipality issues to finance the
2-45     convention center facility infrastructure.
2-46           SECTION 6. Section 334.256, Local Government Code, is amended
2-47     to read as follows:
2-48           Sec. 334.256.  NOTICE OF TAX. (a)  Each bill or other receipt
2-49     for a hotel charge subject to the tax imposed under this subchapter
2-50     must contain a statement in a conspicuous location stating:
2-51     "___________ (insert name of taxing municipality or county)
2-52     requires that an additional tax of _____ percent (insert rate of
2-53     tax) be imposed on each hotel charge for the purpose of financing a
2-54     venue project.  In addition to the tax imposed to finance a venue
2-55     project, the State of Texas requires  that a tax of six percent be
2-56     imposed on each hotel charge."
2-57           (b)  If a hotel charge is subject to any additional hotel
2-58     occupancy taxes, the statement required by Subsection (a) must be
2-59     modified to state each additional entity that imposes a hotel
2-60     occupancy tax and the rate of that tax.
2-61           SECTION 7. Subchapter D, Chapter 335, Local Government Code,
2-62     is amended by adding Section 335.055 to read as follows:
2-63           Sec. 335.055.  FALSE AND MISLEADING CAMPAIGN MATERIAL. (a)
2-64     In this section, "campaign material" means a communication
2-65     supporting or opposing the authorization of a venue project that:
2-66                 (1)  in return for consideration, is published in a
2-67     newspaper, magazine, or other periodical or is broadcast by radio
2-68     or television; or
2-69                 (2)  appears in a pamphlet, circular, flier, billboard
 3-1     or other sign, bumper sticker, or similar form of written
 3-2     communication.
 3-3           (b)  A person may not print, broadcast, or publish, or cause
 3-4     to be printed, broadcast, or published, campaign material that
 3-5     contains false and misleading information.
 3-6           (c)  An individual may file a complaint with the Texas Ethics
 3-7     Commission in accordance with Subchapter E, Chapter 571, Government
 3-8     Code, alleging a violation of Subsection (b).  The commission may
 3-9     impose a penalty in accordance with Chapter 571, Government Code,
3-10     if the commission determines that the campaign materials contain
3-11     false and misleading information.
3-12           (d)  Notwithstanding any other law, the Texas Ethics
3-13     Commission has jurisdiction to consider and investigate a complaint
3-14     filed under this section and to impose a penalty.
3-15           SECTION 8.  Section 4B (a-3)(1), Development Corporation Act
3-16     of 1979 (Article 5190.6, Vernon's Texas Civil Statutes), is amended
3-17     to read as follows:
3-18                 (1)  A city that creates or has created a corporation
3-19     governed by this section may submit to the voters of the city, at a
3-20     separate election to be held on a uniform election date or at an
3-21     election held under another provision of this Act, including the
3-22     election at which the proposition to initially authorize the
3-23     collection of a sales and use tax for the benefit of the
3-24     corporation is submitted, a ballot proposition that authorizes the
3-25     corporation to use the sales and use tax, including any amount
3-26     previously authorized and collected, for a specific sports venue
3-27     project, including related infrastructure, or for a specific
3-28     category of sports venue projects, including related
3-29     infrastructure.  Prior approval of a specific sports venue project
3-30     at an election or completion of a specific sports venue project
3-31     approved at an election does not prohibit a city from seeking voter
3-32     approval of an additional project or category of projects under
3-33     this subsection to be funded from the same sales and use tax that
3-34     is used to fund the previously approved sports venue project.  This
3-35     subsection does not affect the authority of a municipality to call
3-36     an election under this section to levy a sales and use tax for any
3-37     purpose authorized by this section after the sales and use tax
3-38     described by this subsection is no longer collected as provided by
3-39     Subsection (i) of this section.
3-40           SECTION 9.  Section 4B(h), Development Corporation Act of
3-41     1979 (Article 5190.6, Vernon's Texas Civil Statutes), is amended to
3-42     read as follows:
3-43           (h)  Bonds or other obligations having a maturity not longer
3-44     than 30 years and issued to pay the costs of projects of the types
3-45     added to the definition of that term by Subsection (a) of this
3-46     section may be made payable from any source of funds available to
3-47     the corporation, including the proceeds of a sales and use tax
3-48     imposed under this section.  [The principal amount of bonds and
3-49     other obligations that by their terms are payable in whole or in
3-50     part from the sales and use tax, together with the amount of the
3-51     costs of the projects, other than interest on bonds and other
3-52     obligations, for which payment is made in cash directly from the
3-53     proceeds of the tax, may not, in the aggregate, exceed $135
3-54     million.]
3-55           SECTION 10. (a)  This Act takes effect September 1, 2001.
3-56           (b)  This Act does not apply to a sports and community venue
3-57     project approved before the effective date of this Act.  A sports
3-58     and community venue project approved before the effective date of
3-59     this Act is governed by the law in effect on the date the venue
3-60     project was approved, and that law is continued in effect for that
3-61     purpose.
3-62           (c)  This Act does not apply to the use of tax revenue
3-63     pledged to secure bonds issued before the effective date of this
3-64     Act.  Tax revenue pledged to secure bonds issued before the
3-65     effective date of this Act is governed by the law in effect on the
3-66     date the bonds were issued, and that law is continued in effect for
3-67     that purpose.
3-68           (d)  This Act does not apply to the use of tax revenue
3-69     pledged or dedicated before the effective date of this Act for the
 4-1     acquisition of sites for and the construction, improvement,
 4-2     enlarging, equipping, repairing, operation, and maintenance of
 4-3     sports and community venue projects.  Tax revenue pledged for these
 4-4     purposes before the effective date of this Act is governed by the
 4-5     law in effect on the date the revenue was pledged, and that law is
 4-6     continued in effect for that purpose.
 4-7           (e)  This Act does not apply to the use of tax revenue for a
 4-8     sports and community venue project that was under construction on
 4-9     the effective date of this Act, including the pledging of such
4-10     revenue to secure bonds, additional bonds, and refunding bonds.
4-11     Tax revenue used for a sports and community venue project that was
4-12     under construction on the effective date of this Act is governed by
4-13     the law in effect immediately before the effective date of this
4-14     Act, and that law is continued in effect for that purpose.
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