2009 Texas Code
LOCAL GOVERNMENT CODE
TITLE 10. PARKS AND OTHER RECREATIONAL AND CULTURAL RESOURCES
CHAPTER 335. SPORTS AND COMMUNITY VENUE DISTRICTS  

LOCAL GOVERNMENT CODE

TITLE 10. PARKS AND OTHER RECREATIONAL AND CULTURAL RESOURCES

SUBTITLE C. PARKS AND OTHER RECREATIONAL AND CULTURAL RESOURCES

PROVISIONS APPLYING TO MORE THAN ONE TYPE OF LOCAL GOVERNMENT

CHAPTER 335. SPORTS AND COMMUNITY VENUE DISTRICTS

SUBCHAPTER A. GENERAL PROVISIONS

Sec. 335.001. DEFINITIONS. In this chapter:

(1) "Approved venue project" has the meaning assigned by Section

334.001, except that the approval of the project must occur under

this chapter.

(2) "Board" means the board of directors of a venue district.

(3) "District" means a venue district created under this

chapter.

(4) "Related infrastructure" has the meaning assigned by Section

334.001.

(5) "Venue" has the meaning assigned by Section 334.001.

(6) "Venue project" has the meaning assigned by Section 334.001,

except that the actions described by that section must occur

under this chapter.

Added by Acts 1997, 75th Leg., ch. 551, Sec. 1, eff. Sept. 1,

1997.

Sec. 335.002. APPLICATION TO VENUE CONSTRUCTED UNDER OTHER LAW.

A district may use this chapter for a venue project relating to a

venue and related infrastructure planned, acquired, established,

developed, constructed, or renovated under other law, including

Chapter 505 of this code or Subchapter E, Chapter 451,

Transportation Code.

Added by Acts 1997, 75th Leg., ch. 551, Sec. 1, eff. Sept. 1,

1997.

Amended by:

Acts 2007, 80th Leg., R.S., Ch.

885, Sec. 3.21, eff. April 1, 2009.

Sec. 335.003. OTHER USES OF VENUE PERMITTED. This chapter does

not prohibit the use of a venue for an event that is not related

to a purpose described by Section 334.001, such as a

community-related event.

Added by Acts 1997, 75th Leg., ch. 551, Sec. 1, eff. Sept. 1,

1997.

Sec. 335.004. SPECIFIC PERFORMANCE. (a) The legislature

expressly finds and determines that:

(1) the presence of a professional sports team in an approved

venue project built or renovated under this chapter provides a

unique value to the district that built or renovated the project

and to each political subdivision that created the district that

cannot be adequately valued in money; and

(2) the district that built or renovated the approved venue

project and each political subdivision that created the district

would suffer irreparable injury if a professional sports team

breaches its obligation to play its home games in the approved

venue project as required by an agreement between the sports team

and the district.

(b) An agreement described by Subsection (a)(2) shall be

enforceable by specific performance in the courts of this state.

A waiver of this remedy is contrary to public policy and is

unenforceable and void.

Added by Acts 1997, 75th Leg., ch. 551, Sec. 1, eff. Sept. 1,

1997.

Sec. 335.005. SUITS; SERVICE OF PROCESS. A district, through

its board, may sue and be sued in any court of this state in the

name of the district. Service of process on a district may be had

by serving either the current chairman of the board or the

current chief executive officer of the district or its registered

agent designated by the district by filing a statement with the

office of the secretary of state setting forth: (i) the name of

the district, and (ii) the name and address of the district's

registered agent, which address must be in the State of Texas.

The statement shall be executed on behalf of the district by an

officer of the district. A district may change the name and

address of its registered agent by filing another statement with

the office of the secretary of state. Upon such filing, the prior

registered agent for the district shall cease to be the

registered agent for the district and service of process may not

be had by serving the prior registered agent.

Added by Acts 2003, 78th Leg., ch. 981, Sec. 1, eff. Sept. 1,

2003.

SUBCHAPTER B. VENUE DISTRICT

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 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.

Added by Acts 1997, 75th Leg., ch. 551, Sec. 1, eff. Sept. 1,

1997.

Sec. 335.022. ORDER CREATING DISTRICT. 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.

Added by Acts 1997, 75th Leg., ch. 551, Sec. 1, eff. Sept. 1,

1997.

Sec. 335.023. POLITICAL SUBDIVISION; RECORDS AND OPEN MEETINGS.

(a) A district is a political subdivision of the creating

political subdivisions and of this state.

(b) A district is subject to Chapter 551, Government Code.

(c) A district's books, records, and papers relating to an

approved venue project and the revenue used to finance the

project are public information and subject to disclosure under

Chapter 552, Government Code.

Added by Acts 1997, 75th Leg., ch. 551, Sec. 1, eff. Sept. 1,

1997. Amended by Acts 2003, 78th Leg., ch. 164, Sec. 5, 6, eff.

May 27, 2003.

SUBCHAPTER C. BOARD OF DIRECTORS

Sec. 335.031. COMPOSITION AND APPOINTMENT OF BOARD. (a) A

district is governed by a board of at least four directors.

(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.

(c) Directors serve staggered two-year terms. A director may be

removed by the appointing person at any time without cause.

Successor directors are appointed in the same manner as the

original appointees.

(d) To qualify to serve as a director, a person must be a

resident of the appointing political subdivision. An employee,

officer, or member of the governing body of the appointing

political subdivision may serve as a director, but may not have a

personal interest in a contract executed by the district other

than as an employee, officer, or member of the governing body of

the political subdivision.

Added by Acts 1997, 75th Leg., ch. 551, Sec. 1, eff. Sept. 1,

1997. Amended by Acts 1999, 76th Leg., ch. 1076, Sec. 3, eff.

Sept. 1, 1999.

Sec. 335.032. COMPENSATION. A board member is not entitled to

compensation, but is entitled to reimbursement for actual and

necessary expenses.

Added by Acts 1997, 75th Leg., ch. 551, Sec. 1, eff. Sept. 1,

1997.

Sec. 335.033. MEETINGS. The board shall conduct its meetings in

the district.

Added by Acts 1997, 75th Leg., ch. 551, Sec. 1, eff. Sept. 1,

1997.

Sec. 335.034. OFFICERS. Except as provided by Section 335.035,

the presiding officer is designated as provided by the concurrent

order. The board shall designate from the members of the board a

secretary and other officers the board considers necessary.

Added by Acts 1997, 75th Leg., ch. 551, Sec. 1, eff. Sept. 1,

1997. Amended by Acts 1999, 76th Leg., ch. 1076, Sec. 4, eff.

Sept. 1, 1999.

Sec. 335.035. ADDITIONAL REQUIREMENTS FOR BOARD OF DISTRICT

CREATED IN POPULOUS COUNTY. (a) This section applies only to

the board of a district located in whole or in part in a county

with a population of 2.4 million or more.

(b) The mayor of each municipality and the commissioners court

of each county that create the district shall appoint an equal

number of directors in accordance with the orders creating the

district and Section 335.031. An appointment of a director by a

mayor must be confirmed by a majority vote of the governing body

of the municipality.

(c) The mayors of the municipalities and the commissioners

courts of the counties that create the district shall appoint a

presiding officer by concurrent orders on or before the 30th day

after the date on which either the two-year term of office

expires or a vacancy occurs in the presiding officer's position.

The appointment must be confirmed by a majority vote of the

governing body of each municipality. The presiding officer serves

for a two-year term.

(d) If the mayors and the commissioners courts fail to agree on

the appointment of a presiding officer under Subsection (c), the

board shall appoint, from the district's directors, a presiding

officer by a majority vote at the first board meeting that

follows the 30-day period described by Subsection (c). The

confirmation requirement of Subsection (c) does not apply to an

appointment of a presiding officer under this subsection.

(e) A presiding officer appointed under Subsection (d) shall

resign as a director before serving as presiding officer. The

vacancy created by the resignation is filled by the authority

that appointed the director. The appointed director serves for

the remainder of the vacated term.

(f) Section 335.031(b) does not apply to a district located in a

county with a population of 2.4 million or more.

Added by Acts 1999, 76th Leg., ch. 1076, Sec. 5, eff. Sept. 1,

1999.

SUBCHAPTER D. VENUE PROJECTS

Sec. 335.051. RESOLUTION AUTHORIZING PROJECT. (a) A district

by resolution may provide for the planning, acquisition,

establishment, development, construction, or renovation of a

venue project if:

(1) the comptroller determines under Section 335.052 or 335.053

that the implementation of the resolution will not have a

significant negative fiscal impact on state revenue;

(2) to the extent required by Section 335.0535 or 335.0536, a

rapid transit authority determines that the implementation of the

resolution will not have a significant negative impact on the

authority's ability to provide services and will not impair any

existing contracts; and

(3) the resolution is approved by a majority of the qualified

voters of each political subdivision that created the district

voting at one election or at separate elections called and held

for that purpose under Section 335.054.

(b) The resolution must designate each venue project and each

method of financing authorized by this chapter that the district

wants to use to finance a project. A resolution may designate

more than one method of financing.

Added by Acts 1997, 75th Leg., ch. 551, Sec. 1, eff. Sept. 1,

1997.

Sec. 335.052. STATE FISCAL IMPACT ANALYSIS. (a) Before calling

an election on the resolution under Section 335.054, the district

shall send a copy of the resolution to the comptroller.

(b) Before the 15th day after the date the comptroller receives

the copy of the resolution, the comptroller shall:

(1) perform an analysis to determine if approval and

implementation of the resolution will have a significant negative

fiscal impact on state revenue; and

(2) provide to the district written notice of the results of the

analysis.

(c) If the comptroller determines that implementation will have

a significant negative fiscal impact on state revenue, the

written analysis required under Subsection (b)(2) must include

information on how to change the resolution so that

implementation will not have a significant negative fiscal impact

on state revenue.

(d) If the comptroller does not complete the analysis and

provide the notice before the 30th day after the date the

comptroller receives the copy of the resolution, the comptroller

is considered to have determined that approval and implementation

of the resolution will not have a significant negative fiscal

impact on state revenue.

Added by Acts 1997, 75th Leg., ch. 551, Sec. 1, eff. Sept. 1,

1997.

Sec. 335.053. APPEAL OF COMPTROLLER DETERMINATION. (a) If the

comptroller determines under Section 335.052 that implementation

of the resolution will have a significant negative fiscal impact

on state revenue, the district may contest the finding by filing

an appeal with the comptroller not later than the 10th day after

the date the district receives the written notice under Section

335.052.

(b) Before the 11th day after the date the comptroller receives

the appeal under Subsection (a), the comptroller shall perform a

new analysis to determine if implementation of the resolution

will have a significant negative fiscal impact on state revenue

and provide to the district written notice of the results of the

analysis.

(c) If the comptroller again determines that implementation will

have a significant negative fiscal impact on state revenue, the

written analysis required under Subsection (b) must include

additional information on how to change the resolution so that

implementation will not have a significant negative fiscal impact

on state revenue.

(d) If the comptroller does not comply with Subsection (b)

before the 30th day after the date the comptroller receives the

appeal or request for information, the comptroller is considered

to have determined that approval and implementation of the

resolution will not have a significant negative fiscal impact on

state revenue.

Added by Acts 1997, 75th Leg., ch. 551, Sec. 1, eff. Sept. 1,

1997.

Sec. 335.0535. TRANSPORTATION AUTHORITY IMPACT ANALYSIS. (a)

If the resolution contains a proposed sales and use tax under

Subchapter D, Chapter 334, and imposition of the tax would result

in the reduction of the tax rate of a rapid transit authority

created under Chapter 451, Transportation Code, or a regional

transportation authority created under Chapter 452,

Transportation Code, the district shall send a copy of the

resolution to the authority before calling an election on the

resolution under Section 335.054.

(b) Before the 30th day after the date the rapid transit

authority receives the copy of the resolution, the authority

shall:

(1) perform an analysis to determine if implementation of the

proposed sales and use tax and the resulting reduction in the

authority's tax rate will:

(A) have a significant negative impact on the authority's

ability to provide services; or

(B) impair any existing contracts; and

(2) provide to the district written notice of the results of the

analysis.

(c) If the rapid transit authority determines that

implementation of the resolution will have a significant negative

impact on the authority's ability to provide services or will

impair any existing contracts, the written analysis required

under Subsection (b)(2) must include information on how to change

the resolution so that implementation will not have a significant

negative impact on the authority's ability to provide service or

will not impair any existing contracts.

(d) If the rapid transit authority does not complete the

analysis and provide the notice before the 30th day after the

date the authority receives the copy of the resolution, the

authority is considered to have determined that implementation of

the resolution will not have a significant negative impact on the

authority's ability to provide services and will not impair any

existing contracts.

Added by Acts 1997, 75th Leg., ch. 551, Sec. 1, eff. Sept. 1,

1997.

Sec. 335.0536. APPEAL OF AUTHORITY DETERMINATION. (a) If a

rapid transit authority determines under Section 335.0535 that

implementation of the resolution will have a significant negative

impact on the authority's ability to provide services or will

impair an existing contract, the district may contest the finding

by filing an appeal with the authority not later than the 10th

day after the date the district receives the written notice under

Section 335.0535.

(b) Before the 11th day after the date the rapid transit

authority receives the appeal under Subsection (a), the authority

shall perform a new analysis to determine if implementation of

the resolution will have a significant negative impact on the

authority's ability to provide services or will impair an

existing contract and provide to the district written notice of

the results of the analysis.

(c) If the authority again determines that implementation will

have a significant negative impact on the authority's ability to

provide services or will impair an existing contract, the written

analysis required under Subsection (b) must include additional

information on how to change the resolution so that

implementation will not have a significant negative impact on the

authority's ability to provide services and will not impair an

existing contract.

(d) If the rapid transit authority does not comply with

Subsection (b) before the 11th day after the date the authority

receives the appeal or request for information, the authority is

considered to have determined that approval and implementation of

the resolution will not have a significant negative impact on the

authority's ability to provide services and will not impair any

existing contracts.

Added by Acts 1997, 75th Leg., ch. 551, Sec. 1, eff. Sept. 1,

1997.

Sec. 335.054. ELECTION. (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 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.

(b) The order calling the election or elections must:

(1) allow the voters to vote separately on each venue project;

(2) designate the venue project;

(3) designate each method of financing authorized by this

chapter that the district wants to use to finance the project and

the maximum rate of each method; and

(4) allow the voters to vote, in the same proposition or in

separate propositions, on each method of financing authorized by

this chapter that the district wants to use to finance the

project and the maximum rate of each method.

(c) The ballot at the election or elections held under this

section must be printed to permit voting for or against the

proposition: "Authorizing ________ (insert name of district) to

__________ (insert description of venue project) and to impose a

__________ tax (insert type of tax) at the rate of ________

(insert maximum rate) for the purpose of financing the venue

project."

(d) If more than one method of financing is to be voted on in

one proposition, the ballot must be printed to permit voting for

or against the proposition: "Authorizing _________ (insert name

of district) to __________ (insert description of venue project)

and to impose a __________ tax at the rate of ________ (insert

each type of tax and the maximum rate of each tax) for the

purpose of financing the venue project."

(e) If a majority of the votes cast at the district-wide

election or at the election in each creating political

subdivision approves the proposition authorizing the project, the

district may implement the resolution. If separate elections are

held and a majority of the votes cast in one or more of the

creating political subdivisions disapproves the proposition

authorizing the project, the district may not implement the

resolution. If the project is approved, but one or more financing

methods contained in separate propositions are disapproved, the

district may use only the approved financing methods.

(f) The Election Code governs an election held under this

chapter.

(g) Notwithstanding Subsections (c) and (d) of this section, if

a district is presently collecting taxes from one or more methods

of financing and seeks to use a portion of the revenue from the

tax or taxes to finance the venue project and does not seek to

change the rate of tax or taxes, the ballot at the election or

elections held under this section must be printed to permit

voting for or against the proposition: "Authorizing __________

(insert name of district) to __________ (insert description of

venue project) using a portion of existing __________ (insert

type of tax or taxes) tax for the purpose of financing the

project."

Added by Acts 1997, 75th Leg., ch. 551, Sec. 1, eff. Sept. 1,

1997. Amended by Acts 1999, 76th Leg., ch. 1076, Sec. 6, eff.

Sept. 1, 1999; Acts 2001, 77th Leg., ch. 669, Sec. 99, eff. Sept.

1, 2001.

Sec. 335.055. FALSE AND MISLEADING CAMPAIGN MATERIAL. (a) In

this section, "campaign material" means a communication

supporting or opposing the authorization of a venue project that:

(1) in return for consideration, is published in a newspaper,

magazine, or other periodical or is broadcast by radio or

television; or

(2) appears in a pamphlet, circular, flier, billboard or other

sign, bumper sticker, or similar form of written communication.

(b) A person may not print, broadcast, or publish, or cause to

be printed, broadcast, or published, campaign material that

contains false and misleading information.

(c) An individual may file a complaint with the Texas Ethics

Commission in accordance with Subchapter E, Chapter 571,

Government Code, alleging a violation of Subsection (b). The

commission may impose a penalty in accordance with Chapter 571,

Government Code, if the commission determines that the campaign

materials contain false and misleading information.

(d) Notwithstanding any other law, the Texas Ethics Commission

has jurisdiction to consider and investigate a complaint filed

under this section and to impose a penalty.

Added by Acts 2001, 77th Leg., ch. 1044, Sec. 7, eff. Sept. 1,

2001.

SUBCHAPTER E. POWERS AND DUTIES

Sec. 335.071. GENERAL POWERS OF DISTRICT. (a) A district may:

(1) perform any act necessary to the full exercise of the

district's powers;

(2) accept a gift, grant, or loan from a:

(A) department or agency of the United States;

(B) department, agency, or political subdivision of this state;

or

(C) public or private person;

(3) acquire, sell, lease, convey, or otherwise dispose of

property or an interest in property, including a right-of-way or

easement or an approved venue project, under terms and conditions

determined by the district;

(4) employ necessary personnel; and

(5) adopt rules to govern the operation of the district and its

employees and property.

(b) A district may contract with a public or private person,

including one or more political subdivisions that created the

district or a sports team, club, organization, or other entity,

to:

(1) plan, acquire, establish, develop, construct, or renovate an

approved venue project; or

(2) perform any other act the district is authorized to perform

under this chapter, other than conducting an election under this

chapter.

(c) A district may contract with or enter into an interlocal

agreement with a school district, junior or community college

district, or an institution of higher education as defined by

Section 61.003, Education Code, for a purpose described by

Subsection (b). The contract or interlocal agreement may provide

for joint ownership and operation or joint use.

(d) The competitive bidding laws, including Chapter 271, do not

apply to the planning, acquisition, establishment, development,

construction, or renovation of an approved venue project.

(e) A district may impose any tax a municipality or county may

impose under Chapter 334, subject to approval of the voters of

the district as prescribed by this chapter and Chapter 334. The

district shall impose the tax in the same manner as a county or

municipality and may issue bonds in lieu of a county or

municipality as required by Chapter 334.

(f) A district may not levy an ad valorem tax.

(g) In a transaction with another public entity that is made as

provided by Subsection (a)(3), the public purpose found by the

legislature under Section 335.074 is adequate consideration for

the district and the other public entity.

(h) A district has the right and power of eminent domain under

Chapter 21, Property Code, to acquire and condemn any interest,

including a fee simple interest, in real property in the

district, in connection with the planning, acquisition,

establishment, development, construction, renovation, repair,

maintenance, or operation of an approved venue project. A

district is not required to provide bond for appeal or bond for

costs under Section 21.021(a)(2) or (3), Property Code, in any

lawsuit to which the district is a party and is not required to

deposit more than the amount of the award in a suit.

Added by Acts 1997, 75th Leg., ch. 551, Sec. 1, eff. Sept. 1,

1997.

Sec. 335.0711. LIMIT ON POWER TO OWN OR ACQUIRE REAL PROPERTY IN

CERTAIN DISTRICTS. (a) In this section:

(1) "Facility site" means a site for:

(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; and

(ii) for which a fee for admission to the events is charged or

is planned to be charged; or

(B) a convention center facility or related improvement such as

a convention center, civic center, civic center building,

auditorium, theater, opera house, music hall, exhibition hall,

rehearsal hall, museum, or aquarium.

(2) "Real property" includes an arena, coliseum, stadium,

facility site, and related infrastructure.

(3) "Related infrastructure" means a store, restaurant, on-site

hotel, concession, automobile parking facility, road, street,

water or sewer facility, or other on-site improvement that

relates to and enhances the use, value, or appeal of a venue.

(b) This section applies only to a district located in a county

with a population of 2.4 million or more.

(c) Notwithstanding any other provision of this chapter, a

district may not own or acquire real property by eminent domain

or any other method unless the property is for a facility site or

related infrastructure as part of an approved venue project.

(d) A district may not participate in any way in planning or

zoning issues before the governing body of a municipality.

Added by Acts 1999, 76th Leg., ch. 1076, Sec. 1, eff. Sept. 1,

1999.

Sec. 335.0715. USE OF FINANCING FOR CERTAIN PROJECTS.

Notwithstanding any other provision of this chapter, a district,

a municipality or county that created the district, or an entity

created by or acting on behalf of or in conjunction with the

district, municipality, or county, that contracts with a

professional sports team or the team's owner or representative on

or before November 1, 1998, for the team to relocate and play at

an arena, coliseum, or stadium in the district may not use any

method of financing authorized by this chapter to finance the

acquisition or construction of the arena, coliseum, or stadium if

the team is playing under an existing contract and is located in

another arena, coliseum, or stadium owned by a different

municipality or county in this state unless the governing body of

that different municipality or county consents to the contract.

Added by Acts 1997, 75th Leg., ch. 551, Sec. 1, eff. Sept. 1,

1997.

Sec. 335.072. VENUE PROJECT FUND. (a) A district in which an

approved venue project is located shall establish by resolution a

fund known as the venue project fund. The district shall

establish separate accounts within the fund for the various

revenue sources.

(b) The district shall deposit into the venue project fund:

(1) the proceeds from any tax imposed by the district;

(2) all revenue from the sale of bonds or other obligations by

the district;

(3) money received under Section 335.075 from a political

subdivision that created the district; and

(4) any other money required by law to be deposited in the fund.

(c) The district may deposit into the venue project fund:

(1) money received by the district from innovative funding

concepts such as the sale or lease of luxury boxes or the sale of

licenses for personal seats; and

(2) any other revenue received by the district from the approved

venue project, including stadium rental payments and revenue from

concessions and parking.

(d) The district may use money in the venue project fund to:

(1) reimburse or pay the costs of planning, acquiring,

establishing, developing, constructing, or renovating one or more

approved venue projects in the district;

(2) pay the principal of, interest on, and other costs relating

to bonds or other obligations issued by the district or to refund

bonds or other obligations; or

(3) pay the costs of operating or maintaining one or more

approved venue projects.

(e) Money deposited into the venue project fund, including money

deposited under Subsection (c), is the property of the district

depositing the money.

Added by Acts 1997, 75th Leg., ch. 551, Sec. 1, eff. Sept. 1,

1997.

Sec. 335.0725. BOOKS, RECORDS, AND PAPERS. The books, records,

and papers of the district relating to an approved venue project

and the revenue used to finance the project are public

information and subject to disclosure under Chapter 552,

Government Code.

Added by Acts 1997, 75th Leg., ch. 551, Sec. 1, eff. Sept. 1,

1997.

Sec. 335.073. BONDS AND OTHER OBLIGATIONS. (a) A district in

which an approved venue project is located may issue bonds,

including revenue bonds and refunding bonds, or other obligations

to pay the costs of the approved venue project. For a district

created by a county with a population of more than 3.3 million

and a municipality with a population of more than 1.9 million,

the power of the district to issue bonds or other obligations is

subject to the prior approval by the governing bodies of the

county and municipality.

(b) The bonds or other obligations and the proceedings

authorizing the bonds or other obligations shall be submitted to

the attorney general for review and approval as required by

Chapter 1202, Government Code.

(c) The bonds or other obligations must be payable from and

secured by the designated revenues in the venue project fund.

(d) The bonds or other obligations may mature serially or

otherwise not more than 30 years from their date of issuance.

(e) The bonds or other obligations are not a debt of and do not

create a claim for payment against the revenue or property of the

district other than the revenue sources pledged and an approved

venue project for which the bonds are issued.

(f) A district may issue obligations and enter into credit

agreements under Chapter 1371, Government Code. For purposes of

that chapter, a district is a "public utility" and an approved

venue project is an "eligible project."

Added by Acts 1997, 75th Leg., ch. 551, Sec. 1, eff. Sept. 1,

1997. Amended by Acts 2001, 77th Leg., ch. 669, Sec. 100, eff.

Sept. 1, 2001; Acts 2001, 77th Leg., ch. 1420, Sec. 8.327, eff.

Sept. 1, 2001.

Sec. 335.074. PUBLIC PURPOSE OF VENUE PROJECT. (a) The

legislature finds for all constitutional and statutory purposes

that an approved venue project is owned, used, and held for

public purposes by the district.

(b) Section 25.07(a), Tax Code, does not apply to a leasehold or

other possessory interest granted by the district while the

district owns the venue project.

(c) The project is exempt from taxation under Section 11.11, Tax

Code, while the district owns the venue project.

(d) If approval and implementation of a resolution under this

chapter results in the removal from a school district's property

tax rolls of real property otherwise subject to ad valorem

taxation, the operator of the approved venue project located on

that real property shall pay to the school district on January 1

of each year in which the project is in operation and in which

the real property is exempt from ad valorem taxation an amount

equal to the ad valorem taxes that would otherwise have been

levied for the preceding tax year on that real property by the

school district, without including the value of any improvements.

This subsection does not apply if the operator of the project is

a political subdivision of this state.

Added by Acts 1997, 75th Leg., ch. 551, Sec. 1, eff. Sept. 1,

1997.

Sec. 335.075. CONTRIBUTION OR DEDICATION OF CERTAIN REVENUE BY

POLITICAL SUBDIVISION. (a) A political subdivision, including a

metropolitan rapid transit authority created under Chapter 451,

Transportation Code, may contribute or dedicate to the district

all or part of the sales and use tax revenue received by the

political subdivision that is generated, paid, or collected by

any or all businesses operating in an approved venue project. If

the political subdivision contributes or dedicates the revenue to

assist the district in securing bonds or other obligations,

including refunding bonds, that are issued to provide funding for

an approved venue project, the political subdivision may not make

a contribution or dedication for that purpose after the date on

which those bonds or other obligations are no longer outstanding.

(b) A political subdivision may contribute or dedicate sales and

use tax revenue under this section only if the governing body or

governing board of the political subdivision determines that the

approved venue project from which the revenue was or will be

derived will contribute to the economic, cultural, or

recreational development or well-being of the residents of the

political subdivision.

(c) The district shall deposit revenue contributed or dedicated

under this section in the venue project fund and may use the

revenue in the same manner as any other money deposited in the

fund.

(d) A contribution or dedication of revenue under this section

is not a "method of financing" of the district as that term is

used in Subchapter D.

Added by Acts 1997, 75th Leg., ch. 551, Sec. 1, eff. Sept. 1,

1997.

Sec. 335.076. CONTRACTS WITH HISTORICALLY UNDERUTILIZED

BUSINESSES. (a) This section applies only in relation to an

approved venue project constructed and operated under the

authority of a district in a county with a population of more

than two million that is adjacent to a county with a population

of more than one million.

(b) In this section, "historically underutilized business" has

the meaning assigned by Section 2161.001, Government Code.

(c) A district shall make a good faith effort to increase the

contracts the district awards to historically underutilized

businesses for the construction of a venue project. The district

shall make the good faith effort in the same manner, based on the

same rules, and under the same conditions as a state agency under

Section 2161.182, Government Code.

(d) A district shall make a good faith effort to increase the

contracts the district awards to historically underutilized

businesses for the purchase of goods and services relating to the

construction or operation of a venue project. The district shall

make the good faith effort in the same manner, based on the same

rules, and under the same conditions as a state agency under

Section 2161.181, Government Code.

Added by Acts 2003, 78th Leg., ch. 164, Sec. 7, eff. May 27,

2003.

SUBCHAPTER F. CODE OF CONDUCT FOR CERTAIN DISTRICTS

Sec. 335.101. DEFINITIONS. In this subchapter:

(1) "Code of conduct" means the rules adopted by a board under

Section 335.104.

(2) "Director" means a board member.

(3) "Employee" means a district employee.

Added by Acts 1999, 76th Leg., ch. 1076, Sec. 2, eff. Sept. 1,

1999.

Sec. 335.102. APPLICABILITY OF SUBCHAPTER. This subchapter

applies only to a district located in a county with a population

of 2.4 million or more.

Added by Acts 1999, 76th Leg., ch. 1076, Sec. 2, eff. Sept. 1,

1999.

Sec. 335.103. APPLICABILITY OF LAWS. (a) Chapter 171 applies

to an employee as if the employee was a local public official, as

that term is defined by Section 171.001.

(b) Chapter 553, Government Code, applies to an employee as if

the employee was a public servant, as that term is defined by

Section 553.001, Government Code.

(c) Chapter 573, Government Code, applies to an employee as if

the employee was a public official, as that term is defined in

Section 573.001, Government Code.

Added by Acts 1999, 76th Leg., ch. 1076, Sec. 2, eff. Sept. 1,

1999.

Sec. 335.104. CREATION OF CODE OF CONDUCT; DISTRIBUTION. (a)

The board by rule shall adopt and maintain a code of conduct that

establishes the general duties of directors and employees of the

district and specific rules for directors, employees, and

vendors. The code of conduct must include:

(1) information regarding a person's duties relating to the

standards of conduct for a government officer or employee;

(2) a summary of and citation to the laws applicable to the

conduct of a district officer, employee, or vendor, including a

copy of the text of this subchapter;

(3) disclosure requirements for directors, employees, and

vendors; and

(4) a summary of penalties provided by this subchapter and other

law.

(b) The presiding officer of the board shall provide to

directors, employees, and vendors, as often as necessary, the

code of conduct created under this section.

Added by Acts 1999, 76th Leg., ch. 1076, Sec. 2, eff. Sept. 1,

1999.

Sec. 335.105. RULEMAKING. The board by rule may modify its code

of conduct.

Added by Acts 1999, 76th Leg., ch. 1076, Sec. 2, eff. Sept. 1,

1999.

Sec. 335.106. GENERAL DUTIES. A director or employee shall:

(1) be, and give the appearance of being, independent and

impartial;

(2) place, and give the appearance of placing, the public

interest above any private interest in the person's position of

public trust; and

(3) strive to instill confidence in the integrity of the board

and employees.

Added by Acts 1999, 76th Leg., ch. 1076, Sec. 2, eff. Sept. 1,

1999.

Sec. 335.107. VENDOR REQUIREMENTS. (a) This section applies to

a vendor who:

(1) responds to a district request for a proposal; or

(2) otherwise communicates with the district in connection with

a potential agreement between that vendor and the district.

(b) The board by rule shall design a conflict of interest

questionnaire that requires disclosure of a vendor's affiliations

or business relationships that might cause a conflict of

interest.

(c) A vendor shall file a completed conflict of interest

questionnaire with the board secretary not less than seven days

after the vendor:

(1) begins contract discussions or negotiations with the

district; or

(2) forwards an application, response to a request for proposal,

correspondence, or other writings related to an agreement or

potential agreement with the district.

(d) A vendor shall file an updated completed questionnaire with

the board secretary:

(1) on September 1 of each year; and

(2) after each event that would make a statement in the

questionnaire incomplete or inaccurate.

(e) Each contract entered into between a district and a vendor

shall contain a provision stating that the contract is voidable

if the board or vendor violates this section. A contract entered

into between a district and a vendor is voidable if the board or

a vendor violates this section.

Added by Acts 1999, 76th Leg., ch. 1076, Sec. 2, eff. Sept. 1,

1999.

Sec. 335.108. DISCLOSURE OF VENDOR RELATIONSHIP BY DIRECTORS AND

EMPLOYEES. (a) The board by rule shall design a conflicts

disclosure statement for directors and employees that includes:

(1) a requirement that each director and employee disclose:

(A) an employment or other business relationship with a vendor

that results in the director's or employee's receiving taxable

income, including the nature and extent of the relationship; and

(B) any gifts received in a 12-month period by that director or

employee from a vendor that have a total value of more than $250;

(2) an acknowledgment from the director or employee that:

(A) the disclosure applies to a person related to that director

or employee within the first degree by consanguinity or by

affinity, as defined by Subchapter B, Chapter 573, Government

Code; and

(B) the statement covers the preceding 12 months; and

(3) a signature by the director or employee acknowledging

execution of the statement under penalty of perjury.

(b) The disclosure requirement applies to a director or employee

and requires disclosure for a person related to that director or

employee within the first degree by consanguinity or by affinity,

as defined by Subchapter B, Chapter 573, Government Code.

(c) A director or employee shall file a conflicts disclosure

statement with the board secretary not later than the end of the

first business day on which the director or employee became aware

of the relationship between the district and the vendor if:

(1) the vendor has contracted with the district;

(2) the district is considering conducting business with the

vendor; or

(3) a vendor offered one or more gifts to that director or

employee in the previous 12-month period that have a total value

of more than $250.

(d) If a director has knowledge that another director has not

made a disclosure required by this section, the director may

notify the presiding officer of the board of this fact, or may

notify the board secretary if the presiding officer is the person

who failed to make the disclosure. The presiding officer or

secretary, as appropriate, may make a preliminary inquiry

regarding the disclosure and may notify in writing the official

who appointed the director of the alleged failure to disclose and

the reasons for believing that a failure to disclose occurred.

(e) An employee may not receive during a 12-month period any

gifts from a vendor that have a total value of more than $250

unless the employee receives written approval from the presiding

officer.

Added by Acts 1999, 76th Leg., ch. 1076, Sec. 2, eff. Sept. 1,

1999.

Sec. 335.1085. FILING OF FINANCIAL STATEMENT BY DIRECTOR. (a)

A director shall file the financial statement required of state

officers under Subchapter B, Chapter 572, Government Code, with:

(1) the board; and

(2) the Texas Ethics Commission.

(b) Subchapter B, Chapter 572, Government Code:

(1) applies to a director as if the director were a state

officer; and

(2) governs the contents, timeliness of filing, and public

inspection of a statement filed under this section.

(c) A director commits an offense if the director fails to file

the statement required by this section. An offense under this

section is a Class B misdemeanor.

Added by Acts 2003, 78th Leg., ch. 249, Sec. 6.03, eff. Sept. 1,

2003.

Sec. 335.109. REQUEST FOR OPINION FROM GENERAL COUNSEL. (a) An

employee, with the presiding officer's consent, or a director may

seek a written advisory opinion from the district's general

counsel concerning whether a violation of Section 335.107 or

335.108 exists in a certain situation. The request must provide

detailed information about the alleged violation or hypothetical

situation.

(b) After receiving a request, the district's general counsel

shall prepare a written advisory opinion addressing whether a

violation has occurred under the information provided.

(c) A director or employee may rely in good faith on a written

advisory opinion issued under this section with respect to a

potential violation of Section 335.107 or 335.108.

Added by Acts 1999, 76th Leg., ch. 1076, Sec. 2, eff. Sept. 1,

1999.

Sec. 335.110. PENALTIES. The board may reprimand, suspend, or

terminate an employee who violates the district's code of

conduct.

Added by Acts 1999, 76th Leg., ch. 1076, Sec. 2, eff. Sept. 1,

1999.