81R3743 YDB-D
By: Ortiz, Jr. H.B. No. 398
A BILL TO BE ENTITLED
AN ACT
relating to special event trust funds used to promote major
athletic, motor sports racing, and other special events in this
state.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
SECTION 1. Title 12, Local Government Code, is amended by
adding Subtitle D, consisting of the provisions added to that
subtitle by this Act, and a heading to that subtitle is added to
read as follows:
SUBTITLE D. SPECIAL EVENT TRUST FUNDS
SECTION 2. Sections 1, 2, 3, 8, and 9, Chapter 1507 (S.B.
456), Acts of the 76th Legislature, Regular Session, 1999 (Article
5190.14, Vernon's Texas Civil Statutes), are transferred to
Subtitle D, Title 12, Local Government Code, as added by this Act,
designated as Chapter 521, and amended to read as follows:
CHAPTER 521. GENERAL PROVISIONS
Sec. 521.001 [1]. DEFINITIONS. In this subtitle [Act]:
(1) ["Department" means the Texas Department of
Economic Development or its successor.
[(1-a)] "Endorsing county" means an endorsing county
for purposes of Chapter 522, 523, or 524 [Section 5 or 5A of this
Act].
(2) "Endorsing municipality" means an endorsing
municipality for purposes of Chapter 522, 523, or 524 [Section 4, 5,
5A, or 5B of this Act].
(3) ["Games" means the 2011 Pan American Games or the
2012 Olympic Games.
[(3) "Games" means the Pan American Games, the Olympic
Games, the Super Bowl, the National Collegiate Athletic Association
Final Four, the National Basketball Association All-Star Game, the
National Hockey League All-Star Game, the Major League Baseball
All-Star Game, the National Collegiate Athletic Association Bowl
Championship Series Games, the World Cup Soccer Games, or the World
Games. The term includes the events and activities related to the
games.
[(4) "Games support contract" means a joinder
undertaking, a joinder agreement, or a similar contract executed by
the department and containing terms permitted or required by this
Act.
[(5)] "Joinder agreement" means an agreement entered
into by[:
[(A) the department on behalf of this state and a
site selection organization setting out representations and
assurances by the state in connection with the selection of a site
in this state for the location of any of the games; or
[(B)] an endorsing municipality, an endorsing
county, or more than one endorsing municipality or county acting
collectively and a site selection organization setting out
representations and assurances by each endorsing municipality or
county in connection with the selection of a site in this state for
the location of a special event under this subtitle [any of the
games].
(4) [(6)] "Joinder undertaking" means an agreement
entered into by[:
[(A) the department on behalf of this state and a
site selection organization that the state will execute a joinder
agreement in the event that the site selection organization selects
a site in this state for any of the games; or
[(B)] an endorsing municipality, an endorsing
county, or more than one endorsing municipality or county acting
collectively and a site selection organization that each endorsing
municipality or county will execute a joinder agreement in the
event that the site selection organization selects a site in this
state for special events under this subtitle [any of the games].
(5) [(7)] "Local organizing committee" means a
nonprofit corporation or its successor in interest that:
(A) has been authorized by an endorsing
municipality, endorsing county, or more than one endorsing
municipality or county acting collectively to pursue an application
and bid on the applicant's behalf to a site selection organization
for selection as the site of one or more special events under this
subtitle [games]; or
(B) with the authorization of an endorsing
municipality, endorsing county, or more than [that] one endorsing
municipality or county acting collectively, has executed an
agreement with a site selection organization regarding a bid to
host one or more special events under this subtitle [games].
(6) [(8)] "Site selection organization" means a site
selection organization for purposes of Chapter 522, 523, or 524
[the United States Olympic Committee, the International Olympic
Committee, the Pan American Sports Organization, the National
Football League, the National Collegiate Athletic Association, the
National Basketball Association, the National Hockey League, Major
League Baseball, Federation Internationale de Football Association
(FIFA), the International World Games Association, the Automobile
Competition Committee for the United States (ACCUS) affiliated with
the Federation Internationale de l'Automobile, the Champ Car
organization, or the American Le Mans Series organization].
(7) "Special event" means a game or event as defined by
Section 522.001, 523.001, or 524.001.
Sec. 521.002 [2]. PURPOSE. The purpose of this subtitle
[Act] is to provide assurances required by a site selection
organization sponsoring one or more special [major sporting or
athletic] events and to provide financing for the costs of:
(1) applying or bidding for selection as the site of
special [major sporting or athletic] events in this state;
(2) making the preparations necessary and desirable
for the conduct of special [major sporting or athletic] events in
this state, including the construction or renovation of facilities
to the extent authorized by this subtitle [Act]; and
(3) conducting special [major sporting or athletic]
events in this state.
Sec. 521.003 [3]. LEGISLATIVE FINDINGS. The conduct in
this state of special [one or more major sporting or athletic]
events will:
(1) provide invaluable public visibility throughout
the nation or world for this state and the communities where the
special [major sporting or athletic] events are held;
(2) encourage and provide major economic benefits to
the communities where the special [major sporting or athletic]
events are held and to the entire state; and
(3) provide opportunities for the creation of jobs by
local and Texas businesses that pay a living wage.
Sec. 521.004. RULES. The comptroller may adopt rules as
necessary to administer this subtitle.
Sec. 521.005 [8]. APPLICATION OF OPEN MEETINGS AND OPEN
RECORDS LAWS. (a) A local organizing committee and its governing
body are subject to Chapters 551 and 552, Government Code. For
purposes of those chapters, the governing body of a local
organizing committee is considered a governmental body as defined
by those chapters. For purposes of Chapter 552, Government Code,
the records and information of a local organizing committee are
considered public records and public information.
(b) A final bid that is submitted by a local organizing
committee to a site selection organization, or a draft of that bid,
is excepted from required public disclosure under Chapter 552,
Government Code, until the applicable site selection organization
selects the site for the applicable special event [games].
[(c) Chapter 551, Government Code, does not apply to a
meeting of a subcommittee of the governing body of a local
organizing committee if:
[(1) the subcommittee consists of not more than five
members;
[(2) the meeting is not held in a public building;
[(3) the subcommittee makes a tape recording of the
proceedings of the meeting in compliance with Section 551.103,
Government Code, and the local organizing committee preserves the
tape recording for two years from the date the recording is made;
[(4) the subcommittee does not discuss or decide any
financial matters during the meeting; and
[(5) any decision made by the subcommittee will not
become effective without being reviewed and officially adopted by
the governing body of the local organizing committee at a meeting
held in compliance with Chapter 551, Government Code.
[(d) A tape recording made under Subsection (c) of this
section is subject to required public disclosure in the manner
prescribed by Chapter 552, Government Code, for a public record.]
Sec. 521.006 [9]. TAX EXEMPTIONS FOR LOCAL ORGANIZING
COMMITTEE. [(a)] A local organizing committee that is exempt from
paying federal income tax under Section 501(c), Internal Revenue
Code of 1986, as amended, is exempt from:
(1) the sales, excise, and use taxes imposed under
Chapter 151, Tax Code;
(2) taxes on the sale, rental, or use of a motor
vehicle imposed under Chapter 152, Tax Code;
(3) the hotel occupancy tax imposed under Chapter 156,
Tax Code; and
(4) the franchise tax imposed under Chapter 171, Tax
Code.
[(b) The exemptions provided by Subsections (a)(1), (2),
and (3) of this section take effect on the first day of the first
month after the effective date of this Act. The exemption provided
by Subsection (a)(4) of this section applies only to a tax imposed
under Chapter 171, Tax Code, that becomes due on or after the
effective date of this Act.]
SECTION 3. Section 5A, Chapter 1507 (S.B. 456), Acts of the
76th Legislature, Regular Session, 1999 (Article 5190.14, Vernon's
Texas Civil Statutes), is transferred to Subtitle D, Title 12,
Local Government Code, as added by this Act, redesignated as
Chapter 522, and amended to read as follows:
CHAPTER 522. MAJOR SPORTING EVENTS TRUST FUND
Sec. 522.001 [5A]. DEFINITIONS [PAYMENT OF STATE AND
MUNICIPAL OR COUNTY OBLIGATIONS; OTHER EVENTS TRUST FUND]. [(a)]
In this chapter [section]:
(1) "Endorsing county" means a county that contains a
site selected by a site selection organization for one or more
games.
(2) "Endorsing municipality" means a municipality
that contains a site selected by a site selection organization for
one or more games.
(3) "Event support contract" means a joinder
undertaking, joinder agreement, or a similar contract executed by
an endorsing municipality or endorsing county and a site selection
organization.
(4) "Game" means the Pan American Games, the Olympic
Games, a Super Bowl, a National Collegiate Athletic Association
Final Four tournament game, the National Basketball Association
All-Star Game, the National Hockey League All-Star Game, the Major
League Baseball All-Star Game, a National Collegiate Athletic
Association Bowl Championship Series game, a World Cup Soccer game,
the World Games, a national collegiate championship of an amateur
sport sanctioned by the national governing body of the sport that is
recognized by the United States Olympic Committee, or an Olympic
activity, including a Junior or Senior activity, training program,
or feeder program sanctioned by the United States Olympic
Committee's Community Olympic Development Program. The term
includes any events and activities related to or associated with a
game [the games].
(5) "Site selection organization" means the
International Olympic Committee, the Pan American Sports
Organization, the National Football League, the National
Collegiate Athletic Association, the National Basketball
Association, the National Hockey League, Major League Baseball, the
Federation Internationale de Football Association (FIFA), the
International World Games Association, the United States Olympic
Committee, or the national governing body of a sport that is
recognized as such by the United States Olympic Committee.
Sec. 522.002. DETERMINATION OF INCREMENTAL INCREASE IN TAX
RECEIPTS. [(b)] If a site selection organization selects a site
for a game in this state pursuant to an application by a local
organizing committee, endorsing municipality, or endorsing county,
not later than six [three] months before the date of the game [or
six months before the date of the game upon request of a local
organizing committee, endorsing municipality, or endorsing
county], the comptroller shall determine for the one-year
[two-week] period that begins on the first day of the sixth calendar
month before the calendar month in [ends at the end of the day after
the date on] which the game will be held, in accordance with
procedures developed by the comptroller:
(1) the incremental increase in the receipts to the
state from taxes imposed under Chapters 151, 152, 156, and 183, Tax
Code, and under Title 5, Alcoholic Beverage Code, within the market
areas designated under Section 522.003 [Subsection (c) of this
section], that is directly attributable, as determined by the
comptroller, to the preparation for and presentation of the game
and related events;
(2) the incremental increase in the receipts collected
by the state on behalf of each endorsing municipality in the market
area from the sales and use tax imposed by each endorsing
municipality under Section 321.101(a), Tax Code, and the mixed
beverage tax revenue to be received by each endorsing municipality
under Section 183.051(b), Tax Code, that is directly attributable,
as determined by the comptroller, to the preparation for and
presentation of the game and related events;
(3) the incremental increase in the receipts collected
by the state on behalf of each endorsing county in the market area
from the sales and use tax imposed by each endorsing county under
Section 323.101(a), Tax Code, and the mixed beverage tax revenue to
be received by each endorsing county under Section 183.051(b), Tax
Code, that is directly attributable, as determined by the
comptroller, to the preparation for and presentation of the game
and related events;
(4) the incremental increase in the receipts collected
by each endorsing municipality in the market area from the hotel
occupancy tax imposed under Chapter 351, Tax Code, that is directly
attributable, as determined by the comptroller, to the preparation
for and presentation of the game and related events; and
(5) the incremental increase in the receipts collected
by each endorsing county in the market area from the hotel occupancy
tax imposed under Chapter 352, Tax Code, that is directly
attributable, as determined by the comptroller, to the preparation
for and presentation of the game and related events.
Sec. 522.003. MARKET AREA. (a) [(c)] For the purposes of
Section 522.002 [Subsection (b)(1) of this section], the
comptroller shall designate as a market area for the game each area
in which the comptroller determines there is a reasonable
likelihood of measurable economic impact directly attributable to
the preparation for and presentation of the game and related
events, including areas likely to provide venues, accommodations,
and services in connection with the game based on the proposal
provided by the local organizing committee to the comptroller.
(b) The comptroller shall determine the geographic
boundaries of each market area.
(c) An endorsing municipality or endorsing county that has
been selected as the site for the game must be included in a market
area for the game.
Sec. 522.004. DEPOSIT OF TAX REVENUE. (a) [(d)] Each
endorsing municipality or endorsing county shall remit to the
comptroller and the comptroller shall deposit into [a trust fund
created by the comptroller and designated as] the major sporting
events [Other Events] trust fund the amount of the municipality's
or county's hotel occupancy tax revenue determined under Section
522.002(4) or (5) [Subsection (b)(4) or (b)(5) of this section],
less any amount of the revenue that the municipality or county
determines is necessary to meet the obligations of the municipality
or county.
(b) The comptroller shall retain the amount of sales and use
tax revenue and mixed beverage tax revenue determined under Section
522.002(2) or (3) [Subsection (b)(2) or (b)(3) of this section]
from the amounts otherwise required to be sent to the municipality
under Sections 321.502 and 183.051(b), Tax Code, or to the county
under Sections 323.502 and 183.051(b), Tax Code, and deposit into
the major sporting events trust fund the tax revenues, less any
amount of the revenue that the municipality or county determines is
necessary to meet the obligations of the municipality or county.
(c) An endorsing municipality or an endorsing county may
remit other local funds to the comptroller for deposit into the
major sporting events trust fund in an amount not to exceed the
total amount of tax revenue the municipality or county retains
under Subsection (a) or requires the comptroller to send to the
municipality or county under Subsection (b) to meet the obligations
of the municipality or county.
(d) The comptroller shall begin retaining and depositing
the local tax revenues with the first distribution of that tax
revenue that occurs after the first day of the one-year [two-week]
period described by Section 522.002 [Subsection (b) of this
section] and shall discontinue retaining the local tax revenues
under this subsection when the amount of the applicable tax revenue
determined under Section 522.002(2) or (3) [Subsection (b)(2) or
(b)(3) of this section] has been retained.
(e) The comptroller shall deposit into the major sporting
events trust fund a portion of the state tax revenue determined
under Section 522.002(1) in an amount equal to 6.25 times the total
amount of local sales and use tax revenue and mixed beverage tax
revenue, local hotel occupancy tax revenue, or other local funds
deposited into the trust fund under this section.
Sec. 522.005. MAJOR SPORTING EVENTS TRUST FUND. (a) The
major sporting events [Other Events] trust fund is established
outside the state treasury and is held in trust by the comptroller
for administration of this chapter [Act].
(b) Money in the trust fund may be disbursed by the
comptroller without appropriation only as provided by this chapter
[section].
Sec. 522.006. PLEDGE OF SURCHARGES FROM USER FEES. [(e)] In
addition to the [tax] revenue deposited in the major sporting
events [Other Events] trust fund under Section 522.004 [Subsection
(d) of this section], an endorsing municipality or endorsing county
may guarantee its obligations under an event [a game] support
contract and this chapter [section] by pledging surcharges from
user fees, including parking or ticket fees, charged in connection
with the game.
Sec. 522.007. ISSUANCE OF NOTES AUTHORIZED. (a) [(f) The
comptroller shall deposit a portion of the state tax revenue
determined under Subsection (b)(1) of this section in an amount
equal to 6.25 times the amount of the local sales and use tax
revenue and mixed beverage tax revenue retained and the hotel
occupancy tax revenue remitted by an endorsing municipality or
endorsing county under Subsection (d) of this section.
[(g)] To meet its obligations under an [a game support
contract or] event support contract to improve, construct,
renovate, or acquire facilities or to acquire equipment, an
endorsing municipality by ordinance or an endorsing county by order
may authorize the issuance of notes.
(b) An endorsing municipality or endorsing county may
provide that the notes be paid from and secured by amounts on
deposit or amounts to be deposited into the major sporting events
[Other Events] trust fund or surcharges from user fees, including
parking or ticket fees, charged in connection with the game.
(c) Any note issued must mature not later than seven years
from its date of issuance.
Sec. 522.008. PAYMENT OF NOTES AND OBLIGATIONS. [(h)] The
money [funds] in the major sporting events [Other Events] trust
fund may be used to:
(1) pay the principal of and interest on notes issued
by an endorsing municipality or endorsing county under Section
522.007; [Subsection (g) of this section] and
(2) [to] fulfill obligations of the state or an
endorsing municipality or endorsing county to a site selection
organization under an [a game support contract or] event support
contract, which obligations may include the payment of costs
relating to the preparations necessary or desirable for the conduct
of the game and the payment of costs of conducting the game,
including improvements or renovations to existing facilities or
other facilities and costs of acquisition or construction of new
facilities or other facilities.
Sec. 522.009. INFORMATION AND AUDIT. (a) [(i)] A local
organizing committee, endorsing municipality, or endorsing county
shall provide information required by the comptroller to enable the
comptroller to fulfill the comptroller's duties under this chapter
[section], including:
(1) annual audited statements of any financial records
required by a site selection organization; and
(2) data obtained by the local organizing committee,
an endorsing municipality, or an endorsing county relating to
attendance at the game and to the economic impact of the game.
(b) A local organizing committee, endorsing municipality,
or endorsing county must provide an annual audited financial
statement required by the comptroller, if any, not later than the
end of the fourth month after the date the period covered by the
financial statement ends.
Sec. 522.010. COMPTROLLER ESTIMATE. (a) [(j)] The
comptroller shall provide an estimate not later than six [three]
months before the date of a game or nine [six] months before the
date of the game upon request of a local organizing committee,
endorsing municipality, or endorsing county of the total amount of
tax revenue that would be deposited in the major sporting events
[Other Events] trust fund under this chapter [section] in
connection with that game, if the game were to be held in this state
at a site selected pursuant to an application by a local organizing
committee, endorsing municipality, or endorsing county.
(b) The comptroller shall provide the estimate on request to
a local organizing committee, endorsing municipality, or endorsing
county.
(c) A local organizing committee, endorsing municipality,
or endorsing county may submit the comptroller's estimate to a site
selection organization.
Sec. 522.011. DISTRIBUTIONS FROM FUND. (a) [(k)] The
comptroller may make a disbursement from the major sporting events
[Other Events] trust fund on the prior approval of each
contributing endorsing municipality or endorsing county for a
purpose for which an endorsing municipality or endorsing county or
the state is obligated under an [a game support contract or] event
support contract.
(b) A disbursement may not be made from the trust fund that
the comptroller determines would be used for the purpose of
soliciting the relocation of a professional sports franchise
located in this state.
(c) A [(l) If a] disbursement [is made] from the major
sporting events [Other Events] trust fund under Subsection (a)
[(k), the obligation] shall be made [satisfied] proportionately
from the state and local revenue in the trust fund.
Sec. 522.012. REMITTANCE OF MONEY REMAINING IN FUND. [(m)]
On payment of all state, municipal, or county obligations under an
[a game support contract or] event support contract related to the
location of any particular game in the state, the comptroller shall
remit to each endorsing entity, in proportion to the amount
contributed by the entity, any money remaining in the trust fund.
Sec. 522.013. NO STATE GUARANTEE OF OBLIGATIONS. [(n) This
subsection applies only to a bid for or hosting of the 2004 Super
Bowl. Notwithstanding any provision in this section to the
contrary, the comptroller may not retain and the endorsing
municipality or endorsing county may not remit to the comptroller,
as applicable, the local tax revenues described in Subsection
(b)(2), (b)(3), (b)(4), or (b)(5) of this section. For purposes of
Subsection (f) of this section, the comptroller shall deposit a
portion of the state tax revenue determined under Subsection (b)(1)
of this section in an amount equal to 6.25 times the amount of the
local sales and use tax revenue and mixed beverage tax revenue that
the comptroller determines pursuant to Subsection (b) of this
section represents the incremental increase in receipts to an
endorsing municipality or endorsing county.
[(o)] This chapter [section] may not be construed as
creating or requiring a state guarantee of obligations imposed on
the state or an endorsing municipality or endorsing county under an
event [a game] support contract or other agreement relating to
hosting one or more games in this state.
Sec. 522.014. REQUEST REQUIRED. (a) [(p)] The comptroller
may not undertake any of the responsibilities or duties set forth in
this chapter [section] unless a request is submitted by the
municipality and the county in which the game will be located.
(b) The request must be accompanied by documentation from a
site selection organization selecting the site for the game.
SECTION 4. Section 5B, Chapter 1507 (S.B. 456), Acts of the
76th Legislature, Regular Session, 1999 (Article 5190.14, Vernon's
Texas Civil Statutes), is transferred to Subtitle D, Title 12,
Local Government Code, as added by this Act, redesignated as
Chapter 523, and amended to read as follows:
CHAPTER 523. MOTOR SPORTS RACING TRUST FUND
Sec. 523.001 [5B]. DEFINITIONS [GUARANTEE OF STATE AND
MUNICIPAL OR COUNTY OBLIGATIONS; MOTOR SPORTS RACING TRUST FUND].
[(a)] In this chapter [section]:
(1) "Endorsing county" means a county [with a
population of one million or more] that contains a site selected by
a site selection organization for one or more motor sports racing
events.
(2) "Endorsing municipality" means a municipality
[with a population of one million or more] that contains a site
selected by a site selection organization for one or more motor
sports racing events.
(3) "Event support contract" means a joinder
undertaking, joinder agreement, or similar contract executed by an
endorsing municipality or endorsing county and a site selection
organization.
(4) "Motor sports racing event" means a specific
automobile racing event sanctioned by the Automobile Competition
Committee for the United States (ACCUS) and held at a temporary
event venue. The term includes any events and activities held,
sponsored, or endorsed by the site selection organization in
conjunction with the racing event.
Sec. 523.002. DETERMINATION OF INCREMENTAL INCREASE IN TAX
RECEIPTS. [(b)] If a site selection organization selects a site for
a motor sports racing event in this state pursuant to an application
by a local organizing committee, endorsing municipality, or
endorsing county, not later than three months before the date of the
motor sports racing event, the comptroller shall determine for the
30-day period that ends at the end of the day after the date on which
the racing event will be held, in accordance with procedures
developed by the comptroller:
(1) the incremental increase in the receipts to the
state from taxes imposed under Chapters 151, 152, 156, and 183, Tax
Code, and under Title 5, Alcoholic Beverage Code, within the market
areas designated under Section 523.003 [Subsection (c) of this
section], that is directly attributable, as determined by the
comptroller, to the preparation for and presentation of the racing
event;
(2) the incremental increase in the receipts collected
by the state on behalf of each endorsing municipality in the market
area from the sales and use tax imposed by each endorsing
municipality under Section 321.101(a), Tax Code, and the mixed
beverage tax revenue to be received by each endorsing municipality
under Section 183.051(b), Tax Code, that is directly attributable,
as determined by the comptroller, to the preparation for and
presentation of the racing event;
(3) the incremental increase in the receipts collected
by the state on behalf of each endorsing county in the market area
from the sales and use tax imposed by each endorsing county under
Section 323.101(a), Tax Code, and the mixed beverage tax revenue to
be received by each endorsing county under Section 183.051(b), Tax
Code, that is directly attributable, as determined by the
comptroller, to the preparation for and presentation of the racing
event;
(4) the incremental increase in the receipts collected
by each endorsing municipality in the market area from the hotel
occupancy tax imposed under Chapter 351, Tax Code, that is directly
attributable, as determined by the comptroller, to the preparation
for and presentation of the racing event; and
(5) the incremental increase in the receipts collected
by each endorsing county in the market area from the hotel occupancy
tax imposed under Chapter 352, Tax Code, that is directly
attributable, as determined by the comptroller, to the preparation
for and presentation of the racing event.
Sec. 523.003. MARKET AREA. (a) [(c)] For the purposes of
Section 523.002 [Subsection (b)(1) of this section], the
comptroller shall designate as a market area for the motor sports
racing event each area in which the comptroller determines there is
a reasonable likelihood of measurable economic impact directly
attributable to the preparation for and presentation of the racing
event, including areas likely to provide venues, accommodations,
and services in connection with the racing event based on a proposal
or other information provided by an endorsing municipality,
endorsing county, or local organizing committee to the comptroller.
(b) The comptroller shall determine the geographic
boundaries of each market area.
(c) An endorsing municipality or endorsing county that has
been selected as the site for the racing event must be included in a
market area for the racing event.
Sec. 523.004. DEPOSIT OF TAX REVENUE. (a) [(d)] Each
endorsing municipality or endorsing county shall remit to the
comptroller and the comptroller shall deposit into [a trust fund
created by the comptroller and designated as] the motor sports
racing [Motor Sports Racing] trust fund for the particular event
the amount of the municipality's or county's hotel occupancy tax
revenue determined under Section 523.002(4) or (5) [Subsection
(b)(4) or (5) of this section], less any amount of the revenue that
the municipality or county determines is necessary to meet the
obligations of the municipality or county.
(b) The comptroller shall retain the amount of sales and use
tax revenue and mixed beverage tax revenue determined under Section
523.002(2) or (3) [Subsection (b)(2) or (3) of this section] from
the amounts otherwise required to be sent to the municipality under
Sections 321.502 and 183.051(b), Tax Code, or to the county under
Sections 323.502 and 183.051(b), Tax Code, and deposit into the
motor sports racing trust fund the tax revenues, less any amount of
the revenue that the municipality or county determines is necessary
to meet the obligations of the municipality or county.
(c) An endorsing municipality or an endorsing county may
remit other local funds to the comptroller for deposit into the
motor sports racing trust fund in an amount not to exceed the total
amount of tax revenue the municipality or county retains under
Subsection (a) or requires the comptroller to send to the
municipality or county under Subsection (b) to meet the obligations
of the municipality or county.
(d) The comptroller shall begin retaining and depositing
the local tax revenues with the first distribution of that tax
revenue that occurs after the first day of the 30-day period
described by Section 523.002 [Subsection (b) of this section] and
shall discontinue retaining the local tax revenues under this
subsection when the amount of the applicable tax revenue determined
under Section 523.002(2) or (3) [Subsection (b)(2) or (3) of this
section] has been retained.
(e) The comptroller shall deposit into the motor sports
racing trust fund a portion of the state tax revenue determined
under Section 523.002(1) in an amount equal to 6.25 times the total
amount of local sales and use tax revenue and mixed beverage tax
revenue, local hotel occupancy tax revenue, or other local funds
deposited into the trust fund under this section.
Sec. 523.005. MOTOR SPORTS RACING TRUST FUND. (a) The motor
sports racing [Motor Sports Racing] trust fund is established
outside the state treasury and is held in trust by the comptroller
for administration of this chapter [section].
(b) Money in the trust fund may be disbursed by the
comptroller without appropriation only as provided by this chapter
[section].
Sec. 523.006. PLEDGE OF SURCHARGES FROM USER FEES.
[(e)] In addition to the [tax] revenue deposited in the motor
sports racing [Motor Sports Racing] trust fund under Section
523.004 [Subsection (d) of this section], an endorsing municipality
or endorsing county may guarantee its obligations under an [a motor
sports racing] event support contract and this chapter [section] by
pledging surcharges from user fees, including parking or ticket
fees, charged in connection with the racing event.
Sec. 523.007. ISSUANCE OF NOTES AUTHORIZED. (a) [(f) The
comptroller shall deposit a portion of the state tax revenue
determined under Subsection (b)(1) of this section in an amount
equal to 6.25 times the amount of the local sales and use tax
revenue and mixed beverage tax revenue retained and the hotel
occupancy tax revenue remitted by an endorsing municipality or
endorsing county under Subsection (d) of this section.
[(g)] To meet its obligations under an [a motor sports
racing event support contract or] event support contract to
improve, renovate, or acquire facilities or to acquire equipment,
an endorsing municipality by ordinance or an endorsing county by
order may authorize the issuance of notes.
(b) An endorsing municipality or endorsing county may
provide that the notes be paid from and secured by amounts on
deposit or amounts to be deposited into the motor sports racing
[Motor Sports Racing] trust fund or surcharges from user fees,
including parking or ticket fees, charged in connection with the
racing event.
(c) Any note issued must mature not later than seven years
from its date of issuance.
Sec. 523.008. PAYMENT OF NOTES AND OBLIGATIONS. [(h)] The
money [funds] in the motor sports racing [Motor Sports Racing]
trust fund may be used to:
(1) pay the principal of and interest on notes issued
by an endorsing municipality or endorsing county under Section
523.007; [Subsection (g) of this section] and
(2) [to] fulfill obligations of the state or an
endorsing municipality or endorsing county to a site selection
organization under an [a motor sports racing event support contract
or] event support contract, which obligations may include the
payment of costs relating to the preparations necessary or
desirable for the conduct of the racing event and the payment of
costs of conducting the racing event, including temporary
improvements or temporary renovations to existing facilities or
other facilities specific to the event.
Sec. 523.009. INFORMATION AND AUDIT. (a) [(i)] A local
organizing committee, endorsing municipality, or endorsing county
shall provide information required by the comptroller to enable the
comptroller to fulfill the comptroller's duties under this chapter
[section], including:
(1) annual audited statements of any financial records
required by a site selection organization; and
(2) data obtained by the local organizing committee,
an endorsing municipality, or an endorsing county relating to
attendance at the motor sports racing event and to the economic
impact of the racing event.
(b) A local organizing committee, endorsing municipality,
or endorsing county must provide an annual audited financial
statement required by the comptroller, if any, not later than the
end of the fourth month after the date the period covered by the
financial statement ends.
Sec. 523.010. COMPTROLLER ESTIMATE. (a) [(j)] The
comptroller shall provide an estimate not later than three months
before the date of a motor sports racing event of the total amount
of tax revenue that would be deposited in the motor sports racing
[Motor Sports Racing] trust fund under this chapter [section] in
connection with that racing event, if the racing event were to be
held in this state at a site selected pursuant to an application by
a local organizing committee, endorsing municipality, or endorsing
county.
(b) The comptroller shall provide the estimate on request to
a local organizing committee, endorsing municipality, or endorsing
county.
(c) A local organizing committee, endorsing municipality,
or endorsing county may submit the comptroller's estimate to a site
selection organization.
Sec. 523.011. DISTRIBUTIONS FROM FUND. (a) [(k)] The
comptroller may make a disbursement from the motor sports racing
[Motor Sports Racing] trust fund on the prior approval of each
contributing endorsing municipality or endorsing county for a
purpose for which an endorsing municipality or endorsing county or
the state is obligated under an [a motor sports racing event support
contract or] event support contract.
(b) A disbursement may not be made from the trust fund that
the comptroller determines would be used for the purpose of
soliciting the relocation of a professional sports franchise
located in this state.
(c) A [(l) If a] disbursement [is made] from the motor
sports racing [Motor Sports Racing] trust fund under Subsection (a)
[(k) of this section, the obligation] shall be made [satisfied]
proportionately from the state and local revenue in the trust fund.
Sec. 523.012. REMITTANCE OF MONEY REMAINING IN FUND. [(m)]
On payment of all state, municipal, or county obligations under an
[a motor sports racing support contract or] event support contract
related to the location of any particular racing event in the state,
the comptroller shall remit to each endorsing entity, in proportion
to the amount contributed by the entity, any money remaining in the
trust fund.
Sec. 523.013. NO STATE GUARANTEE OF OBLIGATIONS. [(n)] This
chapter [section] may not be construed as creating or requiring a
state guarantee of obligations imposed on the state or an endorsing
municipality or endorsing county under an [a motor sports racing]
event support contract or other agreement relating to hosting one
or more racing events in this state.
Sec. 523.014. REQUEST REQUIRED. (a) [(o)] The comptroller
may not undertake any of the responsibilities or duties set forth in
this chapter [section] unless a request is submitted by the
municipality and the county in which the motor sports racing event
will be held.
(b) The request must be accompanied by documentation from a
site selection organization selecting the site for the racing
event.
[(p) Any provision of this Act applicable to games as
defined by Section 1(3) of this Act also applies to a motor sports
racing event as defined in this section.]
SECTION 5. Section 5C, Chapter 1507 (S.B. 456), Acts of the
76th Legislature, Regular Session, 1999 (Article 5190.14, Vernon's
Texas Civil Statutes), is transferred to Subtitle D, Title 12,
Local Government Code, as added by this Act, redesignated as
Chapter 524, and amended to read as follows:
CHAPTER 524. SPECIAL EVENTS TRUST FUND
Sec. 524.001 [5C]. DEFINITIONS [SPORTING EVENT TRUST FUND
FOR CERTAIN MUNICIPALITIES AND COUNTIES]. [(a)] In this chapter
[section]:
(1) "Endorsing county" means a county [with a
population of 800,000 or more] that contains a site selected by a
site selection organization for one or more events.
(2) "Endorsing municipality" means a municipality
[with a population of 500,000 or more] that contains a site selected
by a site selection organization for one or more events.
(3) "Event" means a National Collegiate Athletic
Association regional tournament or playoff game, a Senior Olympic
activity, including a training program or feeder program sanctioned
by the National Senior Games Association, [or] a major sporting or
athletic event, a special event that undergoes a nationwide site
selection search and that benefits the state's economy, or a
related series of events sanctioned by a site selection
organization. The term includes any activities related to or
associated with the event.
(4) "Event support contract" means a joinder
undertaking, a joinder agreement, or a similar contract executed by
an endorsing municipality or endorsing county and a site selection
organization.
(5) "Site selection organization" means the United
States Olympic Committee (USOC), United States Youth Soccer
Association (USYSA), United States Bowling Congress (USBC),
Amateur Softball Association of America (ASA), National Senior
Games Association (NSGA), American Youth Football and Cheer (AYF),
United States Lacrosse (USL), National Collegiate Athletic
Association (NCAA), United States Tennis Association (USTA),
Special Olympics, National Association for Stock Car Auto Racing
(NASCAR), Breeders' Cup, or another major nationally or
internationally recognized sports or special events organization.
Sec. 524.002. DETERMINATION OF INCREMENTAL INCREASE IN TAX
RECEIPTS. [(b)] If a site selection organization, after considering
through a highly competitive process one or more sites that are not
located in this state, selects a site for an event in this state
pursuant to an application by a local organizing committee,
endorsing municipality, or endorsing county, not later than three
months before the date of the event, the comptroller shall
determine for the 30-day period that ends at the end of the day
after the date on which the event will be held or, if the event
occurs on more than one day, after the last date on which the event
will be held, in accordance with procedures developed by the
comptroller:
(1) the incremental increase in the receipts to this
state from taxes imposed under Chapters 151, 152, 156, and 183, Tax
Code, and under Title 5, Alcoholic Beverage Code, within the market
areas designated under Section 524.003 [Subsection (c) of this
section], that is directly attributable, as determined by the
comptroller, to the preparation for and presentation of the event
and related activities;
(2) the incremental increase in the receipts collected
by this state on behalf of each endorsing municipality in the market
area from the sales and use tax imposed by each endorsing
municipality under Section 321.101(a), Tax Code, and the mixed
beverage tax revenue to be received by each endorsing municipality
under Section 183.051(b), Tax Code, that is directly attributable,
as determined by the comptroller, to the preparation for and
presentation of the event and related activities;
(3) the incremental increase in the receipts collected
by this state on behalf of each endorsing county in the market area
from the sales and use tax imposed by each endorsing county under
Section 323.101(a), Tax Code, and the mixed beverage tax revenue to
be received by each endorsing county under Section 183.051(b), Tax
Code, that is directly attributable, as determined by the
comptroller, to the preparation for and presentation of the event
and related activities;
(4) the incremental increase in the receipts collected
by each endorsing municipality in the market area from the hotel
occupancy tax imposed under Chapter 351, Tax Code, that is directly
attributable, as determined by the comptroller, to the preparation
for and presentation of the event and related activities; and
(5) the incremental increase in the receipts collected
by each endorsing county in the market area from the hotel occupancy
tax imposed under Chapter 352, Tax Code, that is directly
attributable, as determined by the comptroller, to the preparation
for and presentation of the event and related activities.
Sec. 524.003. MARKET AREA. (a) [(c)] For the purposes of
Section 524.002 [Subsection (b)(1) of this section], the
comptroller shall designate as a market area for the event each area
in which the comptroller determines there is a reasonable
likelihood of measurable economic impact directly attributable to
the preparation for and presentation of the event and related
activities, including areas likely to provide venues,
accommodations, and services in connection with the event based on
the proposal provided by the local organizing committee to the
comptroller.
(b) The comptroller shall determine the geographic
boundaries of each market area.
(c) An endorsing municipality or endorsing county that has
been selected as the site for the event must be included in a market
area for the event.
Sec. 524.004. DEPOSIT OF TAX REVENUE. (a) [(d)] Each
endorsing municipality or endorsing county shall remit to the
comptroller and the comptroller shall deposit into [a trust fund
created by the comptroller and designated as] the special
[sporting] events trust fund the amount of the municipality's or
county's hotel occupancy tax revenue determined under Section
524.002(4) or (5) [Subsection (b)(4) or (5) of this section], less
any amount of the revenue that the municipality or county
determines is necessary to meet the obligations of the municipality
or county.
(b) The comptroller shall retain the amount of sales and use
tax revenue and mixed beverage tax revenue determined under Section
524.002(2) or (3) [Subsection (b)(2) or (3) of this section] from
the amounts otherwise required to be sent to the municipality under
Sections 321.502 and 183.051(b), Tax Code, or to the county under
Sections 323.502 and 183.051(b), Tax Code, and deposit into the
special events trust fund the tax revenues, less any amount of the
revenue that the municipality or county determines is necessary to
meet the obligations of the municipality or county.
(c) An endorsing municipality or an endorsing county may
remit other local funds to the comptroller for deposit into the
special events trust fund in an amount not to exceed the total
amount of tax revenue the municipality or county retains under
Subsection (a) or requires the comptroller to send to the
municipality or county under Subsection (b) to meet the obligations
of the municipality or county.
(d) The comptroller shall begin retaining and depositing
the local tax revenues with the first distribution of that tax
revenue that occurs after the first day of the period described by
Section 524.002 [Subsection (b) of this section] and shall
discontinue retaining the local tax revenues under this section
[subsection] when the amount of the applicable tax revenue
determined under Section 524.002(2) or (3) [Subsection (b)(2) or
(3) of this section] has been retained.
(e) The comptroller shall deposit into the special events
trust fund a portion of the state tax revenue determined under
Section 524.002(1) in an amount equal to 6.25 times the total amount
of local sales and use tax revenue and mixed beverage tax revenue,
local hotel occupancy tax revenue, or other local funds deposited
into the trust fund under this section.
Sec. 524.005. SPECIAL EVENTS TRUST FUND. (a) The special
[sporting] events trust fund is established outside the state
treasury and is held in trust by the comptroller for administration
of this chapter [section].
(b) Money in the trust fund may be disbursed by the
comptroller without appropriation only as provided by this chapter
[section].
Sec. 524.006. PLEDGE OF SURCHARGES FROM USER FEES. [(e)] In
addition to the [tax] revenue deposited in the special [sporting]
events trust fund under Section 524.004 [Subsection (d) of this
section], an endorsing municipality or endorsing county may
guarantee its obligations under an event support contract and this
chapter [section] by pledging surcharges from user fees, including
parking or ticket fees, charged in connection with the event.
Sec. 524.007. ISSUANCE OF NOTES AUTHORIZED. (a) [(f) The
comptroller shall deposit into the sporting events trust fund a
portion of the state tax revenue determined under Subsection (b)(1)
of this section in an amount equal to 6.25 times the amount of the
local sales and use tax revenue and mixed beverage tax revenue
retained and the hotel occupancy tax revenue remitted by an
endorsing municipality or endorsing county under Subsection (d) of
this section.
[(g)] To meet its obligations under an event support
contract to improve, construct, renovate, or acquire facilities or
to acquire equipment, an endorsing municipality by ordinance or an
endorsing county by order may authorize the issuance of notes.
(b) An endorsing municipality or endorsing county may
provide that the notes be paid from and secured by amounts on
deposit or amounts to be deposited into the special [sporting]
events trust fund or surcharges from user fees, including parking
or ticket fees, charged in connection with the event.
(c) Any note issued must mature not later than seven years
from its date of issuance.
Sec. 524.008. PAYMENT OF NOTES AND OBLIGATIONS. [(h)] The
money in the special [sporting] events trust fund may be used to:
(1) pay the principal of and interest on notes issued
by an endorsing municipality or endorsing county under Section
524.007; [Subsection (g) of this section] and
(2) [to] fulfill obligations of this state or an
endorsing municipality or endorsing county to a site selection
organization under an event support contract, which obligations may
include the payment of costs relating to the preparations necessary
or desirable for the conduct of the event and the payment of costs
of conducting the event, including improvements or renovations to
existing facilities or other facilities and costs of acquisition or
construction of new facilities or other facilities.
Sec. 524.009. INFORMATION AND AUDIT. (a) [(i)] A local
organizing committee, endorsing municipality, or endorsing county
shall provide information required by the comptroller to enable the
comptroller to fulfill the comptroller's duties under this chapter
[section], including:
(1) annual audited statements of any financial records
required by a site selection organization; and
(2) data obtained by the local organizing committee,
an endorsing municipality, or an endorsing county relating to
attendance at the event and to the economic impact of the event.
(b) A local organizing committee, endorsing municipality,
or endorsing county must provide an annual audited financial
statement required by the comptroller, if any, not later than the
end of the fourth month after the date the period covered by the
financial statement ends.
Sec. 524.010. COMPTROLLER ESTIMATE. (a) Except as
provided by Subsection (b), the [(j) The] comptroller shall
provide an estimate not later than three months before the date of
an event of the total amount of tax revenue that would be deposited
in the special [sporting] events trust fund under this chapter
[section] in connection with that event, if the event were to be
held in this state at a site selected pursuant to an application by
a local organizing committee, endorsing municipality, or endorsing
county.
(b) If the comptroller determines circumstances require
providing an estimate or modified estimate at a time other than the
time provided by Subsection (a), the comptroller may provide the
estimate or a modified estimate at any time during the three months
before the date of the event.
(c) The comptroller shall provide the estimate on request to
a local organizing committee, endorsing municipality, or endorsing
county.
(d) A local organizing committee, endorsing municipality,
or endorsing county may submit the comptroller's estimate to a site
selection organization.
Sec. 524.011. DISBURSEMENTS FROM FUND. (a) [(k)] The
comptroller may make a disbursement from the special [sporting]
events trust fund on the prior approval of each contributing
endorsing municipality or endorsing county for a purpose for which
an endorsing municipality or endorsing county or this state is
obligated under an event support contract.
(b) A disbursement may not be made from the trust fund that
the comptroller determines would be used for the purpose of
soliciting the relocation of a professional sports franchise
located in this state.
(c) A [(l) If a] disbursement [is made] from the special
[sporting] events trust fund under Subsection (a) [(k) of this
section, the obligation] shall be made [satisfied] proportionately
from the state and local revenue in the trust fund.
Sec. 524.012. REMITTANCE OF MONEY REMAINING IN FUND. [(m)]
On payment of all state, municipal, or county obligations under an
event support contract related to the location of any particular
event in this state, the comptroller shall remit to each endorsing
entity, in proportion to the amount contributed by the entity, any
money remaining in the special [sporting] events trust fund.
Sec. 524.013. NO STATE GUARANTEE FOR OBLIGATIONS. [(n)]
This chapter [section] may not be construed as creating or
requiring a state guarantee of obligations imposed on this state or
an endorsing municipality or endorsing county under an event
support contract or other agreement relating to hosting one or more
events in this state.
Sec. 524.014. REQUEST REQUIRED. (a) [(o)] The comptroller
may not undertake any of the responsibilities or duties set forth in
this chapter [section] unless a request is submitted by the
municipality or the county in which the event will be located.
(b) The request must be accompanied by documentation from a
site selection organization selecting the site for the event.
SECTION 6. The following are repealed:
(1) Chapter 398, Local Government Code; and
(2) Sections 4, 5, 6, 7, 10, and 11, Chapter 1507 (S.B.
456), Acts of the 76th Legislature, Regular Session, 1999 (Article
5190.14, Vernon's Texas Civil Statutes).
SECTION 7. Notwithstanding Section 6 of this Act, the
repeal of Chapter 398, Local Government Code, does not apply to a
special event plan approved under that chapter before the effective
date of this Act, and Chapter 398 is continued in effect for
purposes of that special event until all obligations payable for
that special event under that chapter are satisfied.
SECTION 8. (a) The change in law made by this Act applies
only to an offense committed on or after the effective date of this
Act. For purposes of this section, an offense was committed before
the effective date of this Act if any element of the offense
occurred before that date.
(b) An offense committed before the effective date of this
Act is covered by the law in effect when the offense was committed,
and the former law is continued in effect for that purpose.
SECTION 9. This Act takes effect September 1, 2009.