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A BILL TO BE ENTITLED
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AN ACT
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relating to the authority of certain municipalities to create |
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sports and community venue districts and to authorize and finance |
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certain sports and community venue projects; authorizing a tax. |
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BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: |
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SECTION 1. Section 334.001(4), Local Government Code, is |
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amended to read as follows: |
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(4) "Venue" means: |
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(A) an arena, coliseum, stadium, or other type of |
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area or facility: |
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(i) that is used or is planned for use for |
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one or more professional or amateur sports events, community |
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events, or other sports events, including rodeos, livestock shows, |
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agricultural expositions, promotional events, and other civic or |
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charitable events, provided that a facility financed wholly or |
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partly with revenue from a tax imposed under Subchapter H is not, or |
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will not be, primarily used for community, civic, and charitable |
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events that are attended only by residents of the community; and |
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(ii) for which a fee for admission to the |
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events is charged or is planned to be charged; |
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(B) a convention center, a convention center |
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facility as defined by Section 351.001(2) or 352.001(2), Tax Code, |
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or a related improvement such as a civic center hotel, theater, |
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opera house, music hall, rehearsal hall, park, zoological park, |
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museum, aquarium, or plaza located in the vicinity of a convention |
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center or facility owned by a municipality or a county, provided |
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that a related improvement for a facility financed wholly or partly |
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with revenue from a tax imposed under Subchapter H must be in the |
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vicinity of the convention center; |
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(C) a tourist development area; |
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(D) a municipal parks and recreation system, or |
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improvements or additions to a parks and recreation system, or an |
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area or facility, including an area or facility for active |
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transportation use, that is part of a municipal parks and |
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recreation system; |
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(E) a project authorized by Section 4A or 4B, |
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Development Corporation Act of 1979 (Article 5190.6, Vernon's Texas |
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Civil Statutes), as that Act existed on September 1, 1997; |
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(F) a watershed protection and preservation |
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project; a recharge, recharge area, or recharge feature protection |
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project; a conservation easement; or an open-space preservation |
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program intended to protect water; [and] |
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(G) an airport facility located in a municipality |
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located on the international border; and |
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(H) in a municipality with a population of more |
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than 1.9 million: |
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(i) a facility described by Paragraph (B); |
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and |
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(ii) an adjacent park and green space |
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project, including one or more outdoor arenas, pavilions, |
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recreational space, and other commercial or public uses in addition |
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to existing park facilities that: |
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(a) is located between two convention |
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center hotels; and |
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(b) is operated and managed by a local |
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government corporation created by the municipality before 2009. |
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SECTION 2. Section 334.1015, Local Government Code, is |
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amended to read as follows: |
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Sec. 334.1015. APPLICATION. (a) Except as provided by |
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Subsections [Subsection] (b) and (c), this subchapter does not |
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apply to the financing of a venue project that is an area or |
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facility that is part of a municipal parks and recreation system. |
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(b) A municipality located on the international border may |
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finance a venue project described by Section 334.001(4)(D) with the |
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revenue from a tax imposed under this subchapter. |
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(c) A municipality that finances a venue project described |
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by Section 334.001(4)(H) with the revenue from a mixed beverage |
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gross receipts tax imposed under Subchapter L may also finance the |
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venue project with the revenue from a tax imposed under this |
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subchapter. |
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SECTION 3. Section 334.2515, Local Government Code, is |
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amended to read as follows: |
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Sec. 334.2515. APPLICATION. Except as provided by Sections |
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[Section] 334.2516 and 334.2518, this subchapter does not apply to |
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the financing of a venue project that is: |
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(1) an area described by Section 334.001(4)(C); |
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(2) an area or facility that is part of a municipal |
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parks and recreation system as described by Section 334.001(4)(D); |
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(3) a project described by Section 334.001(4)(E), |
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except for a project described by Section 334.001(4)(A); or |
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(4) a facility described by Section 334.001(4)(G). |
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SECTION 4. Subchapter H, Chapter 334, Local Government |
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Code, is amended by adding Section 334.2518 to read as follows: |
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Sec. 334.2518. USE OF REVENUE BY CERTAIN MUNICIPALITIES FOR |
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PARKS IN THE VICINITY OF CONVENTION CENTERS. A municipality that |
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finances a venue project described by Section 334.001(4)(H) with |
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the revenue from a mixed beverage gross receipts tax imposed under |
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Subchapter L may also finance the venue project with the revenue |
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from a tax imposed under this subchapter. |
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SECTION 5. Chapter 334, Local Government Code, is amended |
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by adding Subchapter L to read as follows: |
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SUBCHAPTER L. MIXED BEVERAGE GROSS RECEIPTS TAX IN CERTAIN |
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MUNICIPALITIES |
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Sec. 334.451. DEFINITIONS. (a) In this subchapter, |
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"permittee" means a permittee as defined by Section 183.001, Tax |
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Code, that is located in a municipality to which this subchapter |
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applies. |
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(b) Except as provided by this subchapter, words and phrases |
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used in this subchapter that are defined by Chapter 183, Tax Code, |
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have the meanings assigned by Chapter 183, Tax Code. |
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Sec. 334.452. APPLICATION TO CERTAIN MUNICIPALITIES. This |
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subchapter applies only to a municipality with a population of 1.9 |
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million or more that creates a venue district under Chapter 335. |
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Sec. 334.453. TAX CODE APPLICABLE. (a) Except as |
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inconsistent with this subchapter, Subchapters A, B, and C, Chapter |
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183, Tax Code, govern the imposition, computation, administration, |
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collection, and remittance of a tax under this subchapter. |
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(b) The tax imposed by this subchapter is in addition to the |
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taxes imposed under Subchapter B, Chapter 183, Tax Code. |
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Sec. 334.454. TAX AUTHORIZED. A municipality by ordinance |
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may impose a tax on the gross receipts of a permittee received from |
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the sale, preparation, or service of mixed beverages or from the |
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sale, preparation, or service of ice or nonalcoholic beverages that |
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are sold, prepared, or served for the purpose of being mixed with an |
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alcoholic beverage and consumed on the premises of the permittee |
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if: |
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(1) a venue project is or is planned to be located in |
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the municipality; and |
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(2) the tax is approved at an election held under |
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Section 334.024. |
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Sec. 334.455. TAX RATE. The rate of a tax adopted by a |
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municipality under this subchapter may not exceed the lesser of: |
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(1) two percent of the gross receipts of a permittee; |
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or |
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(2) the rate approved at an election held under |
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Section 334.024. |
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Sec. 334.456. RATE INCREASE. (a) A municipality that |
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adopts a tax under this subchapter at the rate of less than two |
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percent may by ordinance increase the rate of the tax to a rate not |
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to exceed two percent if the increase is approved by a majority of |
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the registered voters voting at an election called for that |
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purpose. |
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(b) The ballot for an election to increase the rate of the |
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tax shall be printed to permit voting for or against the |
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proposition: "The increase of the mixed beverage gross receipts |
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tax for the purpose of financing (insert description of venue |
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project) to a maximum rate of (insert tax rate) percent of the gross |
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receipts of a permittee received from the sale, preparation, or |
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service of mixed beverages or from the sale, preparation, or |
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service of ice or nonalcoholic beverages that are sold, prepared, |
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or served for the purpose of being mixed with an alcoholic beverage |
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and consumed on the premises of the permittee (insert new maximum |
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rate not to exceed two percent of the described gross receipts)." |
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Sec. 334.457. EFFECTIVE DATE OF TAX. (a) The imposition of |
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a tax or a change in the tax rate under this subchapter takes effect |
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on the date prescribed by the ordinance imposing the tax or changing |
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the rate. |
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(b) A municipality may impose a tax under this subchapter |
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only if: |
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(1) the municipality has outstanding bonds or other |
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obligations issued under Section 334.043 that are secured wholly or |
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partly by revenue from the tax; or |
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(2) revenue from the tax is being used to operate or |
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maintain the venue. |
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Sec. 334.458. DEPOSIT OF TAX REVENUE. Revenue from the tax |
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imposed under this subchapter shall be deposited in the venue |
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project fund of the municipality imposing the tax. |
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SECTION 6. Section 335.021, Local Government Code, is |
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amended to read as follows: |
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Sec. 335.021. CREATION. A county and a municipality, two or |
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more counties, two or more municipalities, [or] a combination of |
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municipalities, counties, or municipalities and counties, or a |
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municipality with a population of more than 1.9 million may create a |
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venue district under this chapter to plan, acquire, establish, |
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develop, construct, or renovate one or more venue projects in the |
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district subject to voter approval under Subchapter D. |
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SECTION 7. Section 335.022, Local Government Code, is |
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amended to read as follows: |
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Sec. 335.022. ORDER CREATING DISTRICT. (a) A county and a |
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municipality, two or more counties, two or more municipalities, or |
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a combination of municipalities, counties, or municipalities and |
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counties may create a district under this chapter by adopting |
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concurrent orders. A concurrent order must: |
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(1) contain identical provisions; |
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(2) define the boundaries of the district to be |
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coextensive with the combined boundaries of each creating political |
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subdivision; and |
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(3) designate the number of directors, the manner of |
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appointment, and the manner in which the chair will be appointed in |
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accordance with Section 335.031. |
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(b) A municipality with a population of 1.9 million or more |
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may create a venue district under this chapter by ordinance. The |
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ordinance must: |
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(1) define the boundaries of the district to be |
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coextensive with the boundaries of the creating municipality; and |
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(2) designate the number of directors, the manner of |
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appointment, and the manner in which the chair will be appointed in |
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accordance with Section 335.031. |
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SECTION 8. Section 335.031(b), Local Government Code, is |
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amended to read as follows: |
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(b) The board is appointed by the mayors or county judges, |
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or both as appropriate, of the political subdivisions that create |
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the district in accordance with the concurrent order. In a district |
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created under Section 335.022(b), the mayor of the municipality may |
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appoint the board in accordance with the ordinance creating the |
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district. |
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SECTION 9. Section 335.035(a), Local Government Code, is |
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amended to read as follows: |
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(a) This section applies only to the board of a district |
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located in whole or in part in a county with a population of 3.3 |
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million or more other than a board created under Section |
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335.022(b). |
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SECTION 10. Section 335.054(a), Local Government Code, is |
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amended to read as follows: |
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(a) If the comptroller determines under Section 335.052 or |
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335.053 that implementation of the resolution will not have a |
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significant negative fiscal impact on state revenue, and, if |
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applicable, the rapid transit authority determines under Section |
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335.0535 or 335.0536 that the implementation will not have a |
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significant impact on the authority's ability to provide service |
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and will not impair any existing contracts, the board may order an |
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election or elections on the question of approving and implementing |
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the resolution. In a district created by both a county with a |
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population of more than 3.3 million and a municipality with a |
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population of more than 1.9 million, the board may order one |
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district-wide election or may order a separate election in each |
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political subdivision that created the district. The election or |
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elections shall be held on the same day. |
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SECTION 11. Section 183.051, Tax Code, is amended by adding |
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Subsections (c) and (d) to read as follows: |
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(c) Not later than the last day of the month following a |
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calendar quarter, the comptroller shall calculate the total amount |
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of taxes received under Subchapter L, Chapter 334, Local Government |
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Code, during the quarter from permittees within each venue district |
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created under Chapter 335, Local Government Code, authorized to |
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impose the tax under that subchapter. |
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(d) The comptroller shall transfer from the general revenue |
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fund to each venue district described by Subsection (c) an amount |
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equal to 100 percent of the taxes received under Subchapter L, |
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Chapter 334, Local Government Code, from permittees within the |
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venue district during the quarter for deposit into the district's |
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venue project fund. |
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SECTION 12. This Act takes effect September 1, 2019. |