Bill Text: TX SB2249 | 2019-2020 | 86th Legislature | Introduced


Bill Title: Relating to the authority of certain municipalities to create sports and community venue districts and to authorize and finance certain sports and community venue projects; authorizing a tax.

Spectrum: Partisan Bill (Democrat 2-0)

Status: (Introduced) 2019-04-11 - Co-author authorized [SB2249 Detail]

Download: Texas-2019-SB2249-Introduced.html
  86R13562 SMT-F
 
  By: Miles S.B. No. 2249
 
 
 
A BILL TO BE ENTITLED
 
AN ACT
  relating to the authority of certain municipalities to create
  sports and community venue districts and to authorize and finance
  certain sports and community venue projects; authorizing a tax.
         BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
         SECTION 1.  Section 334.001(4), Local Government Code, is
  amended to read as follows:
               (4)  "Venue" means:
                     (A)  an arena, coliseum, stadium, or other type of
  area or facility:
                           (i)  that is used or is planned for use for
  one or more professional or amateur sports events, community
  events, or other sports events, including rodeos, livestock shows,
  agricultural expositions, promotional events, and other civic or
  charitable events, provided that a facility financed wholly or
  partly with revenue from a tax imposed under Subchapter H is not, or
  will not be, primarily used for community, civic, and charitable
  events that are attended only by residents of the community; and
                           (ii)  for which a fee for admission to the
  events is charged or is planned to be charged;
                     (B)  a convention center, a convention center
  facility as defined by Section 351.001(2) or 352.001(2), Tax Code,
  or a related improvement such as a civic center hotel, theater,
  opera house, music hall, rehearsal hall, park, zoological park,
  museum, aquarium, or plaza located in the vicinity of a convention
  center or facility owned by a municipality or a county, provided
  that a related improvement for a facility financed wholly or partly
  with revenue from a tax imposed under Subchapter H must be in the
  vicinity of the convention center;
                     (C)  a tourist development area;
                     (D)  a municipal parks and recreation system, or
  improvements or additions to a parks and recreation system, or an
  area or facility, including an area or facility for active
  transportation use, that is part of a municipal parks and
  recreation system;
                     (E)  a project authorized by Section 4A or 4B,
  Development Corporation Act of 1979 (Article 5190.6, Vernon's Texas
  Civil Statutes), as that Act existed on September 1, 1997;
                     (F)  a watershed protection and preservation
  project; a recharge, recharge area, or recharge feature protection
  project; a conservation easement; or an open-space preservation
  program intended to protect water; [and]
                     (G)  an airport facility located in a municipality
  located on the international border; and
                     (H)  in a municipality with a population of more
  than 1.9 million:
                           (i)  a facility described by Paragraph (B);
  and
                           (ii)  an adjacent park and green space
  project, including one or more outdoor arenas, pavilions,
  recreational space, and other commercial or public uses in addition
  to existing park facilities that:
                                 (a)  is located between two convention
  center hotels; and
                                 (b)  is operated and managed by a local
  government corporation created by the municipality before 2009.
         SECTION 2.  Section 334.1015, Local Government Code, is
  amended to read as follows:
         Sec. 334.1015.  APPLICATION. (a) Except as provided by
  Subsections [Subsection] (b) and (c), this subchapter does not
  apply to the financing of a venue project that is an area or
  facility that is part of a municipal parks and recreation system.
         (b)  A municipality located on the international border may
  finance a venue project described by Section 334.001(4)(D) with the
  revenue from a tax imposed under this subchapter.
         (c)  A municipality that finances a venue project described
  by Section 334.001(4)(H) with the revenue from a mixed beverage
  gross receipts tax imposed under Subchapter L may also finance the
  venue project with the revenue from a tax imposed under this
  subchapter.
         SECTION 3.  Section 334.2515, Local Government Code, is
  amended to read as follows:
         Sec. 334.2515.  APPLICATION. Except as provided by Sections
  [Section] 334.2516 and 334.2518, this subchapter does not apply to
  the financing of a venue project that is:
               (1)  an area described by Section 334.001(4)(C);
               (2)  an area or facility that is part of a municipal
  parks and recreation system as described by Section 334.001(4)(D);
               (3)  a project described by Section 334.001(4)(E),
  except for a project described by Section 334.001(4)(A); or
               (4)  a facility described by Section 334.001(4)(G).
         SECTION 4.  Subchapter H, Chapter 334, Local Government
  Code, is amended by adding Section 334.2518 to read as follows:
         Sec. 334.2518.  USE OF REVENUE BY CERTAIN MUNICIPALITIES FOR
  PARKS IN THE VICINITY OF CONVENTION CENTERS. A municipality that
  finances a venue project described by Section 334.001(4)(H) with
  the revenue from a mixed beverage gross receipts tax imposed under
  Subchapter L may also finance the venue project with the revenue
  from a tax imposed under this subchapter.
         SECTION 5.  Chapter 334, Local Government Code, is amended
  by adding Subchapter L to read as follows:
  SUBCHAPTER L. MIXED BEVERAGE GROSS RECEIPTS TAX IN CERTAIN
  MUNICIPALITIES
         Sec. 334.451.  DEFINITIONS. (a) In this subchapter,
  "permittee" means a permittee as defined by Section 183.001, Tax
  Code, that is located in a municipality to which this subchapter
  applies.
         (b)  Except as provided by this subchapter, words and phrases
  used in this subchapter that are defined by Chapter 183, Tax Code,
  have the meanings assigned by Chapter 183, Tax Code.
         Sec. 334.452.  APPLICATION TO CERTAIN MUNICIPALITIES. This
  subchapter applies only to a municipality with a population of 1.9
  million or more that creates a venue district under Chapter 335.
         Sec. 334.453.  TAX CODE APPLICABLE. (a) Except as
  inconsistent with this subchapter, Subchapters A, B, and C, Chapter
  183, Tax Code, govern the imposition, computation, administration,
  collection, and remittance of a tax under this subchapter.
         (b)  The tax imposed by this subchapter is in addition to the
  taxes imposed under Subchapter B, Chapter 183, Tax Code.
         Sec. 334.454.  TAX AUTHORIZED. A municipality by ordinance
  may impose a tax on the gross receipts of a permittee received from
  the sale, preparation, or service of mixed beverages or from the
  sale, preparation, or service of ice or nonalcoholic beverages that
  are sold, prepared, or served for the purpose of being mixed with an
  alcoholic beverage and consumed on the premises of the permittee
  if:
               (1)  a venue project is or is planned to be located in
  the municipality; and
               (2)  the tax is approved at an election held under
  Section 334.024.
         Sec. 334.455.  TAX RATE. The rate of a tax adopted by a
  municipality under this subchapter may not exceed the lesser of:
               (1)  two percent of the gross receipts of a permittee;
  or
               (2)  the rate approved at an election held under
  Section 334.024.
         Sec. 334.456.  RATE INCREASE. (a) A municipality that
  adopts a tax under this subchapter at the rate of less than two
  percent may by ordinance increase the rate of the tax to a rate not
  to exceed two percent if the increase is approved by a majority of
  the registered voters voting at an election called for that
  purpose.
         (b)  The ballot for an election to increase the rate of the
  tax shall be printed to permit voting for or against the
  proposition: "The increase of the mixed beverage gross receipts
  tax for the purpose of financing (insert description of venue
  project) to a maximum rate of (insert tax rate) percent of the gross
  receipts of a permittee received from the sale, preparation, or
  service of mixed beverages or from the sale, preparation, or
  service of ice or nonalcoholic beverages that are sold, prepared,
  or served for the purpose of being mixed with an alcoholic beverage
  and consumed on the premises of the permittee (insert new maximum
  rate not to exceed two percent of the described gross receipts)."
         Sec. 334.457.  EFFECTIVE DATE OF TAX. (a) The imposition of
  a tax or a change in the tax rate under this subchapter takes effect
  on the date prescribed by the ordinance imposing the tax or changing
  the rate.
         (b)  A municipality may impose a tax under this subchapter
  only if:
               (1)  the municipality has outstanding bonds or other
  obligations issued under Section 334.043 that are secured wholly or
  partly by revenue from the tax; or
               (2)  revenue from the tax is being used to operate or
  maintain the venue.
         Sec. 334.458.  DEPOSIT OF TAX REVENUE. Revenue from the tax
  imposed under this subchapter shall be deposited in the venue
  project fund of the municipality imposing the tax.
         SECTION 6.  Section 335.021, Local Government Code, is
  amended to read as follows:
         Sec. 335.021.  CREATION. A county and a municipality, two or
  more counties, two or more municipalities, [or] a combination of
  municipalities, counties, or municipalities and counties, or a
  municipality with a population of more than 1.9 million may create a
  venue district under this chapter to plan, acquire, establish,
  develop, construct, or renovate one or more venue projects in the
  district subject to voter approval under Subchapter D.
         SECTION 7.  Section 335.022, Local Government Code, is
  amended to read as follows:
         Sec. 335.022.  ORDER CREATING DISTRICT. (a) A county and a
  municipality, two or more counties, two or more municipalities, or
  a combination of municipalities, counties, or municipalities and
  counties may create a district under this chapter by adopting
  concurrent orders. A concurrent order must:
               (1)  contain identical provisions;
               (2)  define the boundaries of the district to be
  coextensive with the combined boundaries of each creating political
  subdivision; and
               (3)  designate the number of directors, the manner of
  appointment, and the manner in which the chair will be appointed in
  accordance with Section 335.031.
         (b)  A municipality with a population of 1.9 million or more
  may create a venue district under this chapter by ordinance. The
  ordinance must:
               (1)  define the boundaries of the district to be
  coextensive with the boundaries of the creating municipality; and
               (2)  designate the number of directors, the manner of
  appointment, and the manner in which the chair will be appointed in
  accordance with Section 335.031.
         SECTION 8.  Section 335.031(b), Local Government Code, is
  amended to read as follows:
         (b)  The board is appointed by the mayors or county judges,
  or both as appropriate, of the political subdivisions that create
  the district in accordance with the concurrent order. In a district
  created under Section 335.022(b), the mayor of the municipality may
  appoint the board in accordance with the ordinance creating the
  district.
         SECTION 9.  Section 335.035(a), Local Government Code, is
  amended to read as follows:
         (a)  This section applies only to the board of a district
  located in whole or in part in a county with a population of 3.3
  million or more other than a board created under Section
  335.022(b).
         SECTION 10.  Section 335.054(a), Local Government Code, is
  amended to read as follows:
         (a)  If the comptroller determines under Section 335.052 or
  335.053 that implementation of the resolution will not have a
  significant negative fiscal impact on state revenue, and, if
  applicable, the rapid transit authority determines under Section
  335.0535 or 335.0536 that the implementation will not have a
  significant impact on the authority's ability to provide service
  and will not impair any existing contracts, the board may order an
  election or elections on the question of approving and implementing
  the resolution. In a district created by both a county with a
  population of more than 3.3 million and a municipality with a
  population of more than 1.9 million, the board may order one
  district-wide election or may order a separate election in each
  political subdivision that created the district. The election or
  elections shall be held on the same day.
         SECTION 11.  Section 183.051, Tax Code, is amended by adding
  Subsections (c) and (d) to read as follows:
         (c)  Not later than the last day of the month following a
  calendar quarter, the comptroller shall calculate the total amount
  of taxes received under Subchapter L, Chapter 334, Local Government
  Code, during the quarter from permittees within each venue district
  created under Chapter 335, Local Government Code, authorized to
  impose the tax under that subchapter.
         (d)  The comptroller shall transfer from the general revenue
  fund to each venue district described by Subsection (c) an amount
  equal to 100 percent of the taxes received under Subchapter L,
  Chapter 334, Local Government Code, from permittees within the
  venue district during the quarter for deposit into the district's
  venue project fund.
         SECTION 12.  This Act takes effect September 1, 2019.
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