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 - Dead) 2019-04-11 - Co-author authorized [SB2249 Detail]
Download: Texas-2019-SB2249-Introduced.html
86R13562 SMT-F | ||
By: Miles | S.B. No. 2249 |
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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; [ |
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(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 [ |
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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 | ||
[ |
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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, [ |
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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. |