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

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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.

Sponsorship: Partisan Bill (Democrat 2)

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

Download: Texas-2019-SB2249-Introduced.html

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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.