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.
4-15 * * * * *