CHAPTER 1504. OBLIGATIONS FOR MUNICIPAL BUILDINGS
GOVERNMENT CODE
TITLE 9. PUBLIC SECURITIES
SUBTITLE J. SPECIFIC AUTHORITY FOR MUNICIPALITIES TO ISSUE
SECURITIES
CHAPTER 1504. OBLIGATIONS FOR MUNICIPAL BUILDINGS
SUBCHAPTER A. REVENUE BONDS FOR CERTAIN FACILITIES
Sec. 1504.001. AUTHORITY FOR CERTAIN FACILITIES. (a) A
municipality may establish, acquire, lease as lessee or lessor,
construct, improve, enlarge, equip, repair, operate, or maintain
a facility such as:
(1) a civic center, auditorium, opera house, music hall,
exhibition hall, coliseum, museum, library, or other municipal
building;
(2) a golf course, tennis court, or other similar recreational
facility;
(3) a hotel owned by a municipality or a nonprofit municipally
sponsored local government corporation created under Chapter 431,
Transportation Code, that is located not more than 1,000 feet
from a convention center owned by a municipality with a
population of 1,500,000 or more;
(4) a historic hotel owned by a municipality or a nonprofit
municipally sponsored local government corporation created under
Chapter 431, Transportation Code, that is located not more than
one mile from a convention center owned by a municipality with a
population of 1,500,000 or more; or
(5) a parking facility at or in the immediate vicinity of a
facility described by Subdivisions (1)-(4) for use in connection
with that facility for off-street parking or storage of motor
vehicles or other conveyances.
(b) An eligible central municipality, as defined by Section
351.001, Tax Code, or a municipality with a population of 173,000
or more that is located within two counties may establish,
acquire, lease as lessee or lessor, construct, improve, enlarge,
equip, repair, operate, or maintain a hotel, and any facilities
ancillary to the hotel, including convention center
entertainment-related facilities, restaurants, shops, and parking
facilities, that are owned by or located on land owned by the
municipality or by a nonprofit corporation acting on behalf of
the municipality, and that are located within 1,000 feet of a
hotel or a convention center facility owned by the municipality.
Added by Acts 1999, 76th Leg., ch. 227, Sec. 1, eff. Sept. 1,
1999. Amended by Acts 2001, 77th Leg., ch. 1420, Sec. 8.024(a),
eff. Sept. 1, 2001.
Amended by:
Acts 2009, 81st Leg., R.S., Ch.
519, Sec. 2, eff. September 1, 2009.
Acts 2009, 81st Leg., R.S., Ch.
1087, Sec. 1, eff. June 19, 2009.
Acts 2009, 81st Leg., R.S., Ch.
1220, Sec. 5, eff. September 1, 2009.
Sec. 1504.002. AUTHORITY TO ISSUE REVENUE BONDS. (a) The
governing body of a municipality by ordinance may issue revenue
bonds to provide all or part of the money to establish, acquire,
construct, improve, enlarge, equip, or repair a facility
described by Section 1504.001(a).
(b) An eligible central municipality, as defined by Section
351.001, Tax Code, or a municipality with a population of 173,000
or more that is located within two counties by ordinance may
issue bonds or incur other obligations to acquire, lease,
construct, or equip a facility described by Section 1504.001(b).
Added by Acts 1999, 76th Leg., ch. 227, Sec. 1, eff. Sept. 1,
1999. Amended by Acts 2001, 77th Leg., ch. 1420, Sec. 8.024(a),
eff. Sept. 1, 2001.
Amended by:
Acts 2009, 81st Leg., R.S., Ch.
519, Sec. 3, eff. September 1, 2009.
Acts 2009, 81st Leg., R.S., Ch.
1087, Sec. 2, eff. June 19, 2009.
Sec. 1504.003. PLEDGE OF REVENUE. (a) Bonds issued under this
subchapter must be secured by a pledge of and be payable from all
or a designated part of the revenue from the facility for which
the bonds are issued or from additional sources made available by
the municipality for that purpose, as provided in the ordinance
authorizing or approving the issuance of the bonds.
(b) The pledge securing the bonds is inferior to any previous
pledge of the revenue for the payment of revenue bonds or revenue
refunding bonds that are outstanding.
(c) A municipality that leases as lessee a facility described by
Section 1504.001 may pledge all or part of the revenue from the
facility to the lease payments the municipality must make.
Added by Acts 1999, 76th Leg., ch. 227, Sec. 1, eff. Sept. 1,
1999.
Amended by:
Acts 2009, 81st Leg., R.S., Ch.
264, Sec. 4, eff. May 30, 2009.
Sec. 1504.004. LIEN ON FACILITY. Subject to any limitation
contained in any previous pledge, the governing body of the
municipality may, in addition to pledging the revenue from a
facility, give a lien on all or part of the physical property of
the facility acquired with the proceeds of bonds issued under
this subchapter.
Added by Acts 1999, 76th Leg., ch. 227, Sec. 1, eff. Sept. 1,
1999.
Sec. 1504.005. BONDS NOT PAYABLE FROM TAXES; EXCEPTION. (a)
The owner or holder of a bond issued under this subchapter is not
entitled to demand payment of the principal of or interest on the
bond from money raised by taxation.
(b) Subsection (a) does not apply to a demand for payment from
hotel occupancy taxes that are pledged under Chapter 351, Tax
Code, to the payment of the bond.
Added by Acts 1999, 76th Leg., ch. 227, Sec. 1, eff. Sept. 1,
1999.
Sec. 1504.006. CONTENTS OF ORDINANCE AUTHORIZING BONDS. (a)
The ordinance authorizing the issuance of bonds under this
subchapter may provide for the flow of funds and the
establishment and maintenance of an interest and sinking fund,
reserve fund, or other fund.
(b) The ordinance may:
(1) prohibit the issuance of additional bonds or other
obligations payable from the pledged revenue; or
(2) reserve the right to issue additional bonds to be secured by
a pledge of and payable from the revenue on a parity with, or
subordinate to, the lien and pledge in support of the bonds being
issued, subject to the conditions prescribed by the ordinance.
(c) The ordinance may contain any other provision or covenant,
including a covenant with respect to the bonds, the pledged
revenue, or the operation or maintenance of the facility the
revenue of which is pledged. The ordinance may provide for the
operation or lease of all or part of the facility and the use or
pledge of money derived from operation contracts and leases.
Added by Acts 1999, 76th Leg., ch. 227, Sec. 1, eff. Sept. 1,
1999.
Sec. 1504.007. ADOPTION AND EXECUTION OF DOCUMENTS. The
municipality may adopt and have executed any other proceeding or
instrument necessary or convenient to the issuance of bonds under
this subchapter.
Added by Acts 1999, 76th Leg., ch. 227, Sec. 1, eff. Sept. 1,
1999.
Sec. 1504.008. MATURITY. A bond issued under this subchapter
must mature not later than 40 years after its date.
Added by Acts 1999, 76th Leg., ch. 227, Sec. 1, eff. Sept. 1,
1999.
Sec. 1504.009. SIGNATURES. A bond issued under this subchapter
must be signed by the mayor of the municipality and countersigned
by the secretary or clerk of the municipality.
Added by Acts 1999, 76th Leg., ch. 227, Sec. 1, eff. Sept. 1,
1999.
Sec. 1504.010. SALE OF BONDS. A municipality may sell bonds
issued under this subchapter under the terms the governing body
of the municipality determines to be the most advantageous and
reasonably obtainable.
Added by Acts 1999, 76th Leg., ch. 227, Sec. 1, eff. Sept. 1,
1999.
Sec. 1504.011. INVESTMENT OF BOND PROCEEDS AND FUNDS. (a) The
bond proceeds, until they are needed to implement the purpose for
which the bonds were issued, may be invested in direct
obligations of the United States, placed on time deposit, or
both.
(b) Money in an interest and sinking fund, reserve fund, or any
other fund established or provided for in the bond ordinance may
be invested in the manner and in the securities as provided in
the bond ordinance.
Added by Acts 1999, 76th Leg., ch. 227, Sec. 1, eff. Sept. 1,
1999.
Sec. 1504.012. TERM OF CERTAIN LEASES. In a municipality with a
population of one million or more, a lease entered into under
Section 1504.001 may have a term not to exceed 60 years if:
(1) the lessee proposes to invest more than $20 million:
(A) to renovate or redevelop an existing civic center building
and facilities that are used in connection with and are located
at or in the immediate vicinity of that building; or
(B) to develop a new building or facilities on land
administered, operated, or used as a civic center property; and
(2) the governing body of the municipality finds that:
(A) the renovated or redeveloped building and facilities or the
new building or facilities will generate additional revenue for
the municipality; and
(B) a term that exceeds 30 years is necessary to enable the
lessee to recoup its investment or to obtain financing for the
project.
Added by Acts 1999, 76th Leg., ch. 227, Sec. 1, eff. Sept. 1,
1999. Amended by Acts 2003, 78th Leg., ch. 1253, Sec. 1, eff.
June 20, 2003.
Sec. 1504.013. CHARGES FOR SERVICES. The governing body of the
municipality shall impose and collect charges for the use of a
facility the revenue of which is pledged to secure bonds issued
under this subchapter, and for services provided in connection
with that use, in amounts at least sufficient to comply with each
covenant or provision in the ordinance authorizing the issuance
of the bonds.
Added by Acts 1999, 76th Leg., ch. 227, Sec. 1, eff. Sept. 1,
1999.
Sec. 1504.014. REFUNDING BONDS. (a) A municipality by
ordinance may issue revenue refunding bonds similarly secured to
refund either original bonds or revenue refunding bonds
previously issued by the municipality under this subchapter.
(b) The refunding bonds shall be executed as provided by this
subchapter for original bonds.
(c) The comptroller shall register the refunding bonds on the
surrender and cancellation of the bonds to be refunded.
(d) In lieu of issuing bonds to be registered on the surrender
and cancellation of the bonds to be refunded, the municipality,
in the ordinance authorizing the issuance of the refunding bonds,
may provide for the sale of the refunding bonds and the deposit
of the proceeds in the place the bonds to be refunded are
payable. In that case, the refunding bonds may be issued in an
amount sufficient to pay the principal of and interest on the
bonds to be refunded to their option or maturity date, and the
comptroller shall register the refunding bonds without the
surrender and cancellation of the bonds to be refunded.
Added by Acts 1999, 76th Leg., ch. 227, Sec. 1, eff. Sept. 1,
1999.
Sec. 1504.015. CONFLICT OR INCONSISTENCY WITH MUNICIPAL CHARTER.
To the extent of a conflict or inconsistency between this
subchapter and a municipal charter, this subchapter controls.
Added by Acts 1999, 76th Leg., ch. 227, Sec. 1, eff. Sept. 1,
1999.
SUBCHAPTER C. OBLIGATIONS FOR AUDITORIUMS AND EXHIBITION
FACILITIES IN MUNICIPALITIES WITH POPULATION OF MORE THAN 125,000
Sec. 1504.101. APPLICABILITY OF SUBCHAPTER. This subchapter
applies only to a municipality with a population of more than
125,000.
Added by Acts 1999, 76th Leg., ch. 227, Sec. 1, eff. Sept. 1,
1999.
Sec. 1504.102. AUTHORITY FOR AUDITORIUMS AND EXHIBITION
FACILITIES. A municipality may:
(1) construct, purchase, or encumber a municipal auditorium,
exhibition hall, coliseum, or other building or structure used
for public gatherings;
(2) encumber anything acquired or to be acquired that relates to
a building or structure described by Subdivision (1);
(3) purchase additional real property and facilities for a
building or structure described by Subdivision (1);
(4) improve, enlarge, extend, or repair a building or structure
described by Subdivision (1); or
(5) purchase equipment and appliances necessary in the operation
of a building or structure described by Subdivision (1).
Added by Acts 1999, 76th Leg., ch. 227, Sec. 1, eff. Sept. 1,
1999.
Sec. 1504.103. AUTHORITY TO ISSUE BONDS, NOTES, AND WARRANTS. A
municipality may issue bonds, notes, or warrants to provide the
money to purchase, construct, improve, enlarge, extend, repair,
or equip a building or structure described by Section 1504.102.
Added by Acts 1999, 76th Leg., ch. 227, Sec. 1, eff. Sept. 1,
1999.
Sec. 1504.104. PLEDGE OF REVENUE. A municipality may pledge the
revenue from a building or structure described by Section
1504.102 to the payment of an obligation issued under this
subchapter.
Added by Acts 1999, 76th Leg., ch. 227, Sec. 1, eff. Sept. 1,
1999.
Sec. 1504.105. OBLIGATIONS NOT PAYABLE FROM TAXES. (a) An
obligation issued under this subchapter:
(1) is not a debt of the municipality;
(2) may be a charge only on the revenue pledged for the payment
of the obligation; and
(3) may not be included in determining the power of the
municipality to issue bonds for any purpose authorized by law.
(b) Each contract, bond, note, or other evidence of indebtedness
issued or included under this subchapter must contain the
following provision: "The holder of this obligation is not
entitled to demand payment of this obligation out of any money
raised by taxation."
Added by Acts 1999, 76th Leg., ch. 227, Sec. 1, eff. Sept. 1,
1999.
Sec. 1504.106. ELECTION. (a) Unless authorized by a majority
vote of the qualified voters of the municipality, a municipality
may not:
(1) encumber a building or structure described by Section
1504.102 for more than $5,000, except for purchase money or to
refund existing debt that was authorized by law; or
(2) sell a building or structure described by Section 1504.102.
(b) The governing body shall hold an election under this section
in the manner provided for other bond elections in the
municipality.
Added by Acts 1999, 76th Leg., ch. 227, Sec. 1, eff. Sept. 1,
1999.
Sec. 1504.107. OPERATING EXPENSES AS FIRST LIEN. (a) If the
revenue from a building or structure described by Section
1504.102 is encumbered under this subchapter, each expense of
operation and maintenance, including all salaries, labor,
materials, interest, repairs and additions necessary to provide
efficient service, and each proper item of expense, is a first
lien against that revenue.
(b) An expense for a repair or addition is a first lien only if,
in the judgment of the governing body of the municipality, the
repair or addition is necessary to:
(1) keep the building or structure in operation and provide
adequate service to the municipality and its residents; or
(2) respond to a physical accident or condition that would
otherwise impair the original security.
Added by Acts 1999, 76th Leg., ch. 227, Sec. 1, eff. Sept. 1,
1999.
Sec. 1504.108. CHARGES FOR SERVICES. (a) A municipality shall
impose and collect charges for the use of a building or structure
described by Section 1504.102 and for services provided in
connection with that use in amounts at least sufficient to pay:
(1) all operating, maintenance, depreciation, replacement,
improvement, and interest charges in connection with the building
or structure;
(2) for an interest and sinking fund sufficient to pay any bonds
issued to purchase, construct, or improve the building or
structure; and
(3) any outstanding debt against the building or structure.
(b) The rates charged for the use of and for services provided
in connection with the use of a building or structure described
by Section 1504.102 must be equal and uniform. A municipality may
not allow any free use of or free service in connection with the
building or structure except for an activity or institution
operated by the municipality.
Added by Acts 1999, 76th Leg., ch. 227, Sec. 1, eff. Sept. 1,
1999.
Sec. 1504.109. USE OF REVENUE FOR OTHER PURPOSES PROHIBITED. A
municipality may not use the revenue from a building or structure
described by Section 1504.102 to pay any other debt, expense, or
obligation of the municipality until the debt secured by the
revenue is fully paid.
Added by Acts 1999, 76th Leg., ch. 227, Sec. 1, eff. Sept. 1,
1999.
Sec. 1504.110. RECORDS. The chief executive officer of the
municipality shall establish and maintain a complete system of
records that:
(1) shows each free use of and free service provided in
connection with the use of a building or structure described by
Section 1504.102 and the value of the use or service; and
(2) shows separately the amounts spent and the amounts set aside
for operation, salaries, labor, materials, repairs, maintenance,
depreciation, replacements, additions, interest, and the creation
of a sinking fund to pay the bonds and debt.
Added by Acts 1999, 76th Leg., ch. 227, Sec. 1, eff. Sept. 1,
1999.
Sec. 1504.111. ANNUAL REPORT. (a) Not later than February 1 of
each year, the superintendent or manager of a building or
structure described by Section 1504.102 shall file with the chief
executive officer of the municipality a detailed report of the
operation of the building or structure for the year ending on the
preceding January 1.
(b) The report must show the total amount of money collected and
the balance due, and the total disbursements made and the amounts
remaining unpaid, resulting from the operation of the building or
structure during that year.
Added by Acts 1999, 76th Leg., ch. 227, Sec. 1, eff. Sept. 1,
1999.
Sec. 1504.112. OFFENSE. (a) A chief executive officer of a
municipality commits an offense if the chief executive officer
fails to:
(1) establish the system of records required by Section 1504.110
before the 91st day after the date the building or structure is
completed; or
(2) maintain the system of records required by Section 1504.110.
(b) A superintendent or manager of a building or structure
described by Section 1504.102 commits an offense if the
superintendent or manager fails to file a report required by
Section 1504.111.
(c) An offense under this section is a misdemeanor punishable by
a fine of not less than $100 or more than $1,000.
Added by Acts 1999, 76th Leg., ch. 227, Sec. 1, eff. Sept. 1,
1999.
Sec. 1504.113. CIVIL ENFORCEMENT. A person who resides in a
municipality and is a taxpayer or holder of an obligation issued
under this subchapter and secured by the encumbered income of a
building or structure described by Section 1504.102 is entitled
to enforce the provisions of this subchapter by appropriate civil
action in a district court in the county in which the
municipality is located.
Added by Acts 1999, 76th Leg., ch. 227, Sec. 1, eff. Sept. 1,
1999.
SUBCHAPTER E. OBLIGATIONS FOR EXPOSITION AND CONVENTION HALLS IN
MUNICIPALITIES WITH POPULATION OF 290,000 OR MORE
Sec. 1504.201. APPLICABILITY OF SUBCHAPTER. This subchapter
applies only to a municipality with a population of 290,000 or
more.
Added by Acts 1999, 76th Leg., ch. 227, Sec. 1, eff. Sept. 1,
1999.
Sec. 1504.202. AUTHORITY FOR EXPOSITION AND CONVENTION HALLS. A
municipality may purchase, construct, encumber, renovate, or
repair an exposition or convention hall.
Added by Acts 1999, 76th Leg., ch. 227, Sec. 1, eff. Sept. 1,
1999.
Sec. 1504.203. AUTHORITY TO ISSUE BONDS, NOTES, AND WARRANTS. A
municipality may issue bonds, notes, or warrants to evidence an
obligation incurred to purchase, construct, renovate, or repair
an exposition or convention hall.
Added by Acts 1999, 76th Leg., ch. 227, Sec. 1, eff. Sept. 1,
1999.
Sec. 1504.204. PLEDGE OF INCOME. A municipality may pledge the
income from an exposition or convention hall to the payment of an
obligation issued under this subchapter.
Added by Acts 1999, 76th Leg., ch. 227, Sec. 1, eff. Sept. 1,
1999.
Sec. 1504.205. OBLIGATIONS NOT PAYABLE FROM TAXES. (a) An
obligation issued under this subchapter:
(1) is not a debt of the municipality;
(2) may be a charge only on the property of the exposition or
convention hall encumbered; and
(3) may not be included in determining the power of the
municipality to issue bonds for any purpose authorized by law.
(b) Each contract, bond, or note issued or executed under this
subchapter must contain the following provision: "The holder of
this obligation is not entitled to demand payment of this
obligation out of any money raised by taxation."
Added by Acts 1999, 76th Leg., ch. 227, Sec. 1, eff. Sept. 1,
1999.
Sec. 1504.206. OPERATING EXPENSES AS FIRST LIEN. If the income
from an exposition or convention hall is encumbered under this
subchapter, each expense of operation and maintenance, including
all salaries, labor, materials, interest, repairs, and additions
necessary to properly maintain the exposition or convention hall,
and each proper item of expense, is a first lien against that
income.
Added by Acts 1999, 76th Leg., ch. 227, Sec. 1, eff. Sept. 1,
1999.
Sec. 1504.207. CHARGES FOR SERVICES. (a) A municipality shall
impose and collect charges for the use of an encumbered
exposition or convention hall in amounts determined by the
governing body to be sufficient to pay:
(1) all operating, maintenance, depreciation, replacement,
improvement, and interest charges in connection with the hall;
(2) for an interest and sinking fund sufficient to pay any bonds
issued to purchase, construct, or improve the hall; and
(3) any outstanding debt against the hall.
(b) A municipality may not allow any free use of or free service
in connection with the exposition or convention hall.
Added by Acts 1999, 76th Leg., ch. 227, Sec. 1, eff. Sept. 1,
1999.
Sec. 1504.208. USE OF INCOME FOR OTHER PURPOSES PROHIBITED. A
municipality may not use the income from the exposition or
convention hall to pay any other debt, expense, or obligation of
the municipality until the debt secured by the income is fully
paid.
Added by Acts 1999, 76th Leg., ch. 227, Sec. 1, eff. Sept. 1,
1999.
Sec. 1504.209. MANAGEMENT AND CONTROL. (a) The contract under
which an exposition or convention hall is encumbered must provide
that the governing body of the municipality shall manage and
control the hall during the time the hall is encumbered.
(b) The governing body may:
(1) adopt rules governing the use and rental of the exposition
or convention hall and for the payment of those rents; and
(2) provide penalties for:
(A) the violation of rules adopted under Subdivision (1);
(B) the use of the hall without the consent or knowledge of the
authorities in charge of the hall; or
(C) any interference with, trespass on, or injury to the hall or
the property on which the hall is located.
Added by Acts 1999, 76th Leg., ch. 227, Sec. 1, eff. Sept. 1,
1999.
Sec. 1504.210. TRUSTEE. A contract under which an exposition or
convention hall is encumbered may provide for:
(1) the selection of a trustee to sell the hall on a default in
the payment of principal or interest or another default under the
contract;
(2) the selection of a successor trustee, if the original
trustee is disqualified or fails to act; and
(3) the collection by the trustee of a fee of not more than five
percent of the principal.
Added by Acts 1999, 76th Leg., ch. 227, Sec. 1, eff. Sept. 1,
1999.
Sec. 1504.211. RECEIVER. (a) The trustee may apply to a court
for the appointment of a receiver if:
(1) the contract under which the exposition or convention hall
is encumbered provides for the appointment of a receiver; and
(2) there is a default in the payment of principal and interest
or another default under the contract that continues for at least
30 days.
(b) A receiver appointed under this section may, subject to the
order of the court:
(1) enter and take possession of the exposition or convention
hall; and
(2) operate and maintain the hall and apply the net revenue to
the liquidation of the debt.
(c) The receiver may use or rent any part of the hall for any
purpose consistent with the continued use of the major part of
the hall as an exposition or convention hall, or, if authorized
by the court, rent the hall for any lawful use.
(d) The receiver may rent all or any part of the exposition or
convention hall to the municipality, and the municipality may
lease the hall from the receiver.
(e) An exposition or convention hall that is operated by a
receiver under this section is free from taxation until the debt
secured by the hall is fully paid.
(f) All rights of the receiver and of any lessee or other person
holding under the receiver end when the debt is paid or the
trustee, in the exercise of the trustee's powers, sells the
exposition or convention hall. The trustee may agree with a
person leasing the hall from the receiver not to sell the hall
during the term of the person's lease.
(g) If the principal of all the bonds has not been declared due
or if a declaration that the principal of all the bonds is due is
annulled under the contract under which the exposition or
convention hall is encumbered:
(1) on application to the court, the rights of the receiver may
be terminated and the receiver discharged by remedy or waiver of
the default; and
(2) the rights of a person leasing the hall from the receiver
are subject to adjudication and may be terminated or adjusted by
the court.
Added by Acts 1999, 76th Leg., ch. 227, Sec. 1, eff. Sept. 1,
1999.
Sec. 1504.212. NOTICE TO GOVERNING BODY BEFORE FORECLOSURE OR
OTHER ACTION. (a) Unless written notice is given to the
governing body of the municipality in accordance with this
section that there is a default in payment of any installment of
principal of or interest on an obligation issued under this
subchapter and that payment has been demanded:
(1) a collection fee may not accrue;
(2) a foreclosure proceeding may not be begun in a court or
through a trustee; and
(3) an option to mature any part of the obligation because of
the default may not be exercised.
(b) A notice under Subsection (a) must be sent by prepaid
registered mail to each member of the governing body of the
municipality, addressed to the member at the post office in the
municipality.
(c) An action described by Subsection (a) may not be taken
before the 91st day after the date the notice is mailed.
(d) A payment of a delinquent installment of principal and
interest that is paid before the expiration of the period
prescribed by Subsection (c) and that is accompanied by a payment
of interest as prescribed in the contract, at a rate not to
exceed 10 percent per year, from the date of default until the
date of payment, has the same effect as if paid on the date the
installment was originally due.
Added by Acts 1999, 76th Leg., ch. 227, Sec. 1, eff. Sept. 1,
1999.
SUBCHAPTER F. REVENUE BONDS FOR CULTURAL FACILITIES IN HOME-RULE
MUNICIPALITIES WITH POPULATION OF 1.2 MILLION OR MORE
Sec. 1504.251. APPLICABILITY OF SUBCHAPTER. This subchapter
applies only to a home-rule municipality with a population of 1.9
million or more.
Added by Acts 1999, 76th Leg., ch. 227, Sec. 1, eff. Sept. 1,
1999. Amended by Acts 2001, 77th Leg., ch. 669, Sec. 28, eff.
Sept. 1, 2001.
Sec. 1504.252. AUTHORITY FOR CULTURAL AND PARKING FACILITIES. A
municipality may acquire sites for and establish, acquire, lease
as lessee or lessor, construct, improve, enlarge, equip, repair,
operate, or maintain:
(1) a cultural facility, such as an opera house, ballet or
symphony hall, theater, or similar building;
(2) a building combining cultural facilities listed in
Subdivision (1); or
(3) a parking facility at or in the immediate vicinity of a
cultural facility listed in Subdivision (1) for use in connection
with that facility and otherwise for off-street parking or
storage of motor vehicles or other conveyances.
Added by Acts 1999, 76th Leg., ch. 227, Sec. 1, eff. Sept. 1,
1999.
Sec. 1504.253. AUTHORITY TO ISSUE REVENUE BONDS. The governing
body of a municipality by ordinance may issue revenue bonds to
provide all or part of the money to accomplish any purpose
described by Section 1504.252.
Added by Acts 1999, 76th Leg., ch. 227, Sec. 1, eff. Sept. 1,
1999.
Sec. 1504.254. PLEDGE OF REVENUE. (a) Bonds issued under this
subchapter must be secured by a pledge of and be payable from all
or a designated part of the revenue from the cultural or parking
facility for which the bonds are issued, as provided in the
ordinance authorizing the issuance of the bonds.
(b) The pledge securing the bonds is inferior to any previous
pledge of the revenue for the payment of revenue bonds or
refunding bonds that are outstanding.
(c) A municipality that leases as lessee a cultural or parking
facility described by Section 1504.252 may pledge all or part of
the revenue from the facility to the lease payments the
municipality must make.
Added by Acts 1999, 76th Leg., ch. 227, Sec. 1, eff. Sept. 1,
1999.
Sec. 1504.255. LIEN ON FACILITY. Subject to any limitation
contained in any previous pledge, the governing body of the
municipality may, in addition to pledging the revenue from a
cultural or parking facility, give a lien on all or part of the
physical property and facilities constructed or acquired with the
proceeds of bonds issued under this subchapter.
Added by Acts 1999, 76th Leg., ch. 227, Sec. 1, eff. Sept. 1,
1999.
Sec. 1504.256. PLEDGE OF MIXED BEVERAGE TAX RECEIPTS. (a) The
governing body of a municipality by official action may pledge
for the purposes provided by this subchapter a portion of the
mixed beverage tax that is remitted to the municipality under
Section 183.051, Tax Code.
(b) The total amount of mixed beverage tax receipts pledged
under Subsection (a) may not exceed an amount equal to 1-1/2
percent of the gross receipts subject to taxation under Chapter
183, Tax Code, from permittees within the municipality.
Added by Acts 1999, 76th Leg., ch. 227, Sec. 1, eff. Sept. 1,
1999.
Sec. 1504.257. SHORTAGE OF MIXED BEVERAGE TAX RECEIPTS. If at
the time of a remittance of mixed beverage tax receipts by the
comptroller under Section 183.051, Tax Code, the amount collected
by the comptroller from permittees in a municipality that has
pledged a portion of its mixed beverage tax receipts under
Section 1504.256 is less than the total amount required to be
collected from those permittees by Chapter 183, Tax Code, then
the amount to be pledged under Section 1504.256 is an amount
equal to the total amount actually collected from permittees in
the municipality multiplied by a fraction, the numerator of which
is the amount of mixed beverage tax receipts pledged under
Section 1504.256 for the quarterly period and the denominator of
which is the total amount required to be collected from
permittees in the municipality during that period.
Added by Acts 1999, 76th Leg., ch. 227, Sec. 1, eff. Sept. 1,
1999.
Sec. 1504.258. ADDITIONAL USE OF MIXED BEVERAGE TAX RECEIPTS. A
municipality may spend money derived from the portion of the
mixed beverage tax receipts authorized to be pledged under
Section 1504.256 for:
(1) advertising and promotion of events to take place in a
cultural facility described by Section 1504.252;
(2) the attraction of events to a cultural facility described by
Section 1504.252, either by the municipality or through a
contract with a person or organization selected by the
municipality; and
(3) the encouragement, promotion, improvement, and application
of the cultural arts, including opera, ballet, symphony, and
theater, and the arts related to the presentation, performance,
execution, and exhibition of those major art forms.
Added by Acts 1999, 76th Leg., ch. 227, Sec. 1, eff. Sept. 1,
1999.
Sec. 1504.259. BONDS NOT PAYABLE FROM TAXES; EXCEPTION. (a)
The owner or holder of a bond issued under this subchapter is not
entitled to demand payment of the principal of or interest on the
bond from money raised by taxation.
(b) Subsection (a) does not apply to a demand for payment from
mixed beverage tax receipts that are pledged under Section
1504.256.
Added by Acts 1999, 76th Leg., ch. 227, Sec. 1, eff. Sept. 1,
1999.
Sec. 1504.260. CONTENTS OF ORDINANCE AUTHORIZING BONDS. (a)
The ordinance authorizing the issuance of bonds under this
subchapter may provide for the flow of funds and the
establishment and maintenance of an interest and sinking fund,
reserve fund, or other fund.
(b) The ordinance may:
(1) prohibit the issuance of additional bonds or other
obligations payable from the pledged revenue; or
(2) reserve the right to issue additional bonds to be secured by
a pledge of and payable from the revenue on a parity with, or
subordinate to, the lien and pledge in support of the bonds being
issued, subject to the conditions prescribed by the ordinance.
(c) The ordinance may contain any other provision or covenant,
including a covenant with respect to the bonds, the pledged
revenue, or the operation or maintenance of the cultural or
parking facility the revenue of which is pledged. The ordinance
may provide for the operation or lease of all or part of the
facility and the use or pledge of money derived from operation
contracts and leases.
Added by Acts 1999, 76th Leg., ch. 227, Sec. 1, eff. Sept. 1,
1999.
Sec. 1504.261. ADOPTION AND EXECUTION OF DOCUMENTS. The
municipality may adopt and have executed any other proceeding or
instrument necessary or convenient to the issuance of bonds under
this subchapter.
Added by Acts 1999, 76th Leg., ch. 227, Sec. 1, eff. Sept. 1,
1999.
Sec. 1504.262. SIGNATURES. A bond issued under this subchapter
must be signed by the mayor of the municipality and countersigned
by the secretary or clerk of the municipality.
Added by Acts 1999, 76th Leg., ch. 227, Sec. 1, eff. Sept. 1,
1999.
Sec. 1504.263. SALE OF BONDS. A municipality may sell bonds
issued under this subchapter at public or private sale in the
manner and on the terms provided by the ordinance under which the
bonds are issued.
Added by Acts 1999, 76th Leg., ch. 227, Sec. 1, eff. Sept. 1,
1999.
Sec. 1504.264. INTERIM RECEIPTS. Pending the preparation of a
definitive bond, a municipality may provide to the purchaser of a
bond sold under this subchapter an interim receipt or certificate
in the form and with the provisions specified in the ordinance
authorizing the issuance of the bonds.
Added by Acts 1999, 76th Leg., ch. 227, Sec. 1, eff. Sept. 1,
1999.
Sec. 1504.265. USE OF BOND PROCEEDS. From the proceeds of bonds
issued under this subchapter, a municipality may appropriate or
set aside amounts:
(1) to pay interest and administrative and operating expenses
expected to accrue during the period of construction;
(2) to be deposited into the reserve fund as provided in the
ordinance authorizing the issuance of the bonds; and
(3) to pay all expenses incurred in the issuance, sale, and
delivery of the bonds.
Added by Acts 1999, 76th Leg., ch. 227, Sec. 1, eff. Sept. 1,
1999.
Sec. 1504.266. CHARGES FOR SERVICES. The governing body of the
municipality shall impose and collect charges for the use of a
cultural or parking facility the revenue of which is pledged to
secure bonds issued under this subchapter, and for services
provided in connection with that use, in amounts at least
sufficient to comply with each covenant or provision in the
ordinance authorizing the issuance of the bonds.
Added by Acts 1999, 76th Leg., ch. 227, Sec. 1, eff. Sept. 1,
1999.
Sec. 1504.267. USE OF REVENUE. (a) A municipality shall use
revenue derived from that portion of mixed beverage tax receipts
authorized to be pledged under Section 1504.256 for the purposes
described by Sections 1504.252 and 1504.258, including the pledge
of that revenue to the payment of bonds issued for a purpose
described by Section 1504.252.
(b) Amounts received by a municipality from that portion of the
mixed beverage tax receipts authorized to be pledged under
Section 1504.256 and pledged to the payment of bonds as provided
by Subsection (a) that exceed the amounts required by the
ordinance under which the bonds are issued may be used for any
other purpose described by Section 1504.252 or 1504.258. The
governing body of the municipality may determine that any
remaining amounts are excess money and may use those amounts for
any lawful purpose if that use does not violate an ordinance
adopted by the governing body in connection with the issued
bonds.
Added by Acts 1999, 76th Leg., ch. 227, Sec. 1, eff. Sept. 1,
1999.
Sec. 1504.268. CONFLICT OR INCONSISTENCY WITH MUNICIPAL CHARTER.
To the extent of a conflict or inconsistency between this
subchapter and a municipal charter, this subchapter controls.
Added by Acts 1999, 76th Leg., ch. 227, Sec. 1, eff. Sept. 1,
1999.