81R27150 YDB-F
By: Watson S.B. No. 1515
Substitute the following for S.B. No. 1515:
By: Gattis C.S.S.B. No. 1515
A BILL TO BE ENTITLED
AN ACT
relating to a major events trust fund, a motor sports racing trust
fund, and an events trust fund for sporting and non-sporting
events.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
SECTION 1. Section 1, Chapter 1507 (S.B. 456), Acts of the
76th Legislature, Regular Session, 1999 (Article 5190.14, Vernon's
Texas Civil Statutes), is amended by amending Subdivisions (1),
(1-a), (2), (5), (6), (7), and (8) and adding Subdivision (2-a) to
read as follows:
(1) "Department" means the [Texas Department of]
Economic Development and Tourism Division, Office of the Governor
[or its successor].
(1-a) "Endorsing county" means an endorsing county for
purposes of Section 5, [or] 5A, 5B, or 5C of this Act.
(2) "Endorsing municipality" means an endorsing
municipality for purposes of Section 4, 5, 5A, [or] 5B, or 5C of
this Act.
(2-a) "Event" means a game or event as defined by
Section 5A, 5B, or 5C of 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 a game or event [any of the games];
or
(B) a local organizing committee, an endorsing
municipality, an endorsing county, or more than one local
organizing committee, endorsing municipality, or endorsing county
acting collectively, and a site selection organization setting out
representations and assurances by each local organizing committee,
endorsing municipality, or endorsing county in connection with the
selection of a site in this state for the location of a game or event
[any of the games].
(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 if [in the event that] the site selection organization
selects a site in this state for a game or event [any of the games];
or
(B) a local organizing committee, an endorsing
municipality, an endorsing county, or more than one local
organizing committee, endorsing municipality, or endorsing county
acting collectively, and a site selection organization that each
local organizing committee, endorsing municipality, or endorsing
county will execute a joinder agreement if [in the event that] the
site selection organization selects a site in this state for a game
or event [any of the games].
(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 a game or event [one or more 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 a game or event [one or more games].
(8) "Site selection organization" means a site
selection organization as defined by Sections 5, 5A, and 5C of this
Act [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].
SECTION 2. Sections 2 and 3, Chapter 1507 (S.B. 456), Acts
of the 76th Legislature, Regular Session, 1999 (Article 5190.14,
Vernon's Texas Civil Statutes), are amended to read as follows:
Sec. 2. PURPOSE. The purpose of this Act is to provide
assurances required by a site selection organization sponsoring a
[one or more major] sporting or non-sporting game or event
[athletic events] and to provide financing for the costs of:
(1) applying or bidding for selection as the site of a
game [major sporting] or event [athletic events] in this state;
(2) making the preparations necessary and desirable
for the conduct of a game [major sporting] or event [athletic
events] in this state, including the construction or renovation of
facilities to the extent authorized by this Act; and
(3) conducting a game [major sporting] or event
[athletic events] in this state.
Sec. 3. LEGISLATIVE FINDINGS. The conduct in this state of
one or more games [major sporting] or [athletic] events will:
(1) provide invaluable public visibility throughout
the nation or world for this state and the communities where the
games [major sporting] or [athletic] events are held;
(2) encourage and provide major economic benefits to
the communities where the games [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.
SECTION 3. The heading to Section 5A, Chapter 1507 (S.B.
456), Acts of the 76th Legislature, Regular Session, 1999 (Article
5190.14, Vernon's Texas Civil Statutes), is amended to read as
follows:
Sec. 5A. PAYMENT OF STATE AND MUNICIPAL OR COUNTY
OBLIGATIONS; MAJOR [OTHER] EVENTS TRUST FUND.
SECTION 4. Section 5A, Chapter 1507 (S.B. 456), Acts of the
76th Legislature, Regular Session, 1999 (Article 5190.14, Vernon's
Texas Civil Statutes), is amended by amending Subsections (a)
through (m), (o), and (p) and adding Subsections (a-1), (b-1),
(d-1), (r), (s), (t), (u), and (v) to read as follows:
(a) In this section:
(1) "Endorsing county" means:
(A) a county that contains a site selected by a
site selection organization for one or more events; or
(B) a county that:
(i) does not contain a site selected by a
site selection organization for an event;
(ii) is included in the market area for the
event as designated by the comptroller; and
(iii) is a party to an event support
contract [games].
(2) "Endorsing municipality" means:
(A) a municipality that contains a site selected
by a site selection organization for one or more events; or
(B) a municipality that:
(i) does not contain a site selected by a
site selection organization for an event;
(ii) is included in the market area for the
event as designated by the comptroller; and
(iii) is a party to an event support
contract [games].
(3) "Event support contract" means a joinder
undertaking, joinder agreement, or a similar contract executed by a
local organizing committee, an endorsing municipality, or an
endorsing county and a site selection organization.
(4) "Event" ["Game"] means 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 Breeders' Cup World
Championships, or a Formula One automobile race. The term includes
any [events and] activities related to or associated with an event
[the games].
(5) "Site selection organization" means 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, the National Thoroughbred Racing Association, Formula
One Management Limited, or the Federation Internationale de
l'Automobile.
(a-1) An event included in Subsection (a)(4) of this section
is eligible for funding under this section only if:
(1) a site selection organization selects a site
located in this state for the event after considering, through a
highly competitive selection process, one or more sites that are
not located in this state;
(2) a site selection organization selects a site in
this state as the sole site for the event; and
(3) the event is held not more than one time in any
year.
(b) If a site selection organization selects a site for an
event [a game] 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 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 a one-year [the two-week]
period that begins two months before [ends at the end of the day
after] the date on which the event [game] will begin [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 Subsection (c) of this section, that is
directly attributable, as determined by the comptroller, to the
preparation for and presentation of the event [game] and related
activities [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 event [game] and related activities [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 event
[game] and related activities [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 event [game] and related activities
[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 event [game] and related activities
[events].
(b-1) A request for a determination of the amount of
incremental increase in tax receipts specified by Subsection (b) of
this section must be submitted to the comptroller not earlier than
one year and not later than three months before the date the event
begins. The comptroller shall base the determination specified by
Subsection (b) of this section on information submitted by the
local organizing committee, endorsing municipality, or endorsing
county, and must make the determination not later than the 30th day
after the date the comptroller receives the request and related
information.
(c) For the purposes of Subsection (b)(1) of this section,
the comptroller shall designate as a market area for the event
[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 event
[game] and related activities [events], including areas likely to
provide venues, accommodations, and services in connection with the
event [game] based on the proposal provided by the local organizing
committee to the comptroller. The comptroller shall determine the
geographic boundaries of each market area. An endorsing
municipality or endorsing county that has been selected as the site
for the event [game] must be included in a market area for the event
[game].
(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
[Other] Events trust fund the amount of the municipality's or
county's hotel occupancy tax revenue determined under 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. The comptroller shall
retain the amount of sales and use tax revenue and mixed beverage
tax revenue determined under 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 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. 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 Subsection (b) of this section or at a time otherwise
determined to be practicable by the comptroller and shall
discontinue retaining the local tax revenues under this subsection
when the amount of the applicable tax revenue determined under
Subsection (b)(2) or (b)(3) of this section has been retained. The
Major [Other] Events trust fund is established outside the state
treasury and is held in trust by the comptroller for administration
of this Act. Money in the trust fund may be disbursed by the
comptroller without appropriation only as provided by this section.
(d-1) Not later than the 90th day after the last day of an
event and in lieu of the local tax revenues remitted to or retained
by the comptroller under Subsection (d) of this section, a
municipality or county may remit to the comptroller for deposit in
the Major Events trust fund other local funds in an amount equal to
the total amount of local tax revenue determined under Subsections
(b)(2) through (5) of this section. The amount deposited by the
comptroller into the Major Events trust fund under this subsection
is subject to Subsection (f) of this section.
(e) In addition to the tax revenue deposited in the Major
[Other] Events trust fund under Subsection (d) of this section, an
endorsing municipality or endorsing county may guarantee its
obligations under an event [a game] support contract and this
section by pledging surcharges from user fees, including parking or
ticket fees, charged in connection with the event [game]. An
endorsing municipality or endorsing county may collect and remit to
the comptroller surcharges and user fees attributable to the event
for deposit into the Major Events trust fund.
(f) The comptroller shall deposit into the Major Events
trust fund a portion of the state tax revenue not to exceed the
amount determined under Subsection (b)(1) of this section in an
amount equal to 6.25 times the amount of the local revenue retained
or remitted under this section, including:
(1) local sales and use tax revenue;
(2) [and] mixed beverage tax revenue;
(3) [retained and the] hotel occupancy tax revenue;
and
(4) surcharge and user fee revenue [remitted by an
endorsing municipality or endorsing county under Subsection (d) of
this section].
(g) To meet its obligations under 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. 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 [Other] Events
trust fund or surcharges from user fees, including parking or
ticket fees, charged in connection with the event [game]. Any note
issued must mature not later than seven years from its date of
issuance.
(h) The funds in the Major [Other] Events trust fund may be
used to pay the principal of and interest on notes issued by an
endorsing municipality or endorsing county under Subsection (g) of
this section and to fulfill obligations of the state or an endorsing
municipality or endorsing county to a site selection organization
under 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 event
[game] and the payment of costs of conducting the event [game],
including improvements or renovations to existing facilities or
other facilities and costs of acquisition or construction of new
facilities or other facilities.
(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 section, including annual audited statements of
any financial records required by a site selection organization and
data obtained by the local organizing committee, an endorsing
municipality, or an endorsing county relating to attendance at the
event [game] and to the economic impact of the event [game]. 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. After the conclusion of an event and on the comptroller's
request, a local organizing committee, endorsing municipality, or
endorsing county must provide information relating to the event,
such as attendance figures, financial information, or other public
information held by the local organizing committee, endorsing
municipality, or endorsing county that the comptroller considers
necessary.
(j) Not [The comptroller shall provide an estimate not]
later than the 30th day after the date a [three months before the
date of a game or six months before the date of the game upon]
request of a local organizing committee, endorsing municipality, or
endorsing county is submitted to the comptroller under Subsection
(b-1) of this section, the comptroller shall provide an estimate of
the total amount of tax revenue that would be deposited in the Major
[Other] Events trust fund under this section in connection with
that event [game], if the event [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. [The
comptroller shall provide the estimate on request to a local
organizing committee, endorsing municipality, or endorsing
county.] A local organizing committee, endorsing municipality, or
endorsing county may submit the comptroller's estimate to a site
selection organization.
(k) The comptroller may make a disbursement from the Major
[Other] Events trust fund on the prior approval of each
contributing endorsing municipality or endorsing county for a
purpose for which a local organizing committee, an endorsing
municipality, or an endorsing county or the state is obligated
under a game support contract or event support contract. 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.
(l) If a disbursement is made from the Major [Other] Events
trust fund under Subsection (k), the obligation shall be satisfied
proportionately from the state and local revenue in the trust fund.
(m) On payment of all state, municipal, or county
obligations under a game support contract or event support contract
related to the location of any particular event [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.
(o) This 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 events [games] in this state.
(p) The comptroller may not undertake any of the
responsibilities or duties set forth in this section unless a
request is submitted by the municipality or [and] the county in
which the event [game] will be located. The request must be
accompanied by documentation from a site selection organization
selecting the site for the event [game].
(r) This subsection applies only to an event that the
comptroller determines under Subsection (b) of this section will
generate at least $15 million in state and local tax revenue. The
comptroller and one or more endorsing municipalities or endorsing
counties may enter into an agreement to provide that an amount equal
to the amount of local tax revenue determined by the comptroller
under Subsections (b)(2) through (5) of this section shall be
remitted to the comptroller by one or more endorsing municipalities
or endorsing counties and shall be deposited by the comptroller
into the Major Events trust fund before the event. In the 12 months
immediately preceding the event, the comptroller may deposit into
the trust fund an amount equal to the amount the state is required
to deposit under Subsection (f) of this section from any amounts
appropriated by the legislature for the purposes of this
subsection. The comptroller may make disbursements from the trust
fund in amounts that do not exceed the amounts deposited under this
subsection in accordance with the agreement to pay costs relating
to attracting and securing the event. An agreement under this
subsection may provide that, following the last day of an event, the
funds eligible for disbursement under Subsection (k) of this
section be held in the trust fund and made available to pay the cost
of securing the event in future years.
(s) The term of an agreement entered into under Subsection
(r) of this section may not exceed 10 years and must terminate:
(1) on the final termination date provided in the
agreement; or
(2) if the event covered by the agreement is not held
during any 18-month period covered by the agreement.
(t) On termination of an agreement entered into under
Subsection (r) of this section, the total amount of the state's
initial contribution under the agreement must be repaid to the
state from funds disbursed under Subsection (k) of this section or
from any other source specified in the agreement. An agreement
entered into under Subsection (r) of this section must include
terms that the comptroller determines are necessary to protect the
state's interest, including a provision for a performance bond or
other guarantee of repayment if the event is not held in the state
after a disbursement has been made.
(u) The comptroller shall deposit any amount appropriated
by the legislature for the purposes of Subsection (r) of this
section into the Major Event trust fund for the limited purpose of
paying the costs of attracting and securing an event eligible under
that subsection.
(v) The comptroller may adopt rules necessary to implement
this section.
SECTION 5. Sections 5B(a)(1) and (2), Chapter 1507 (S.B.
456), Acts of the 76th Legislature, Regular Session, 1999 (Article
5190.14, Vernon's Texas Civil Statutes), are amended to read as
follows:
(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.
SECTION 6. The heading to Section 5C, Chapter 1507 (S.B.
456), Acts of the 76th Legislature, Regular Session, 1999 (Article
5190.14, Vernon's Texas Civil Statutes), is amended to read as
follows:
Sec. 5C. EVENTS [SPORTING EVENT] TRUST FUND FOR CERTAIN
MUNICIPALITIES AND COUNTIES.
SECTION 7. Section 5C, Chapter 1507 (S.B. 456), Acts of the
76th Legislature, Regular Session, 1999 (Article 5190.14, Vernon's
Texas Civil Statutes), is amended by amending Subsections (a), (b),
and (d) through (m), and by adding Subsections (a-1), (c-1), (d-1),
(p), and (q) to read as follows:
(a) In this 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 an [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 or a related series of events held in this state for
which a local organizing committee, endorsing county, or endorsing
municipality seeks approval from [sanctioned by] a site selection
organization to hold the event at a site in this state. 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
a local organizing committee, an endorsing municipality, or an
endorsing county and a site selection organization.
(5) "Site selection organization" means an entity that
conducts or considers conducting an eligible event in this state
[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 organization].
(a-1) An event is eligible for funding under this section
only if:
(1) a site selection organization selects a site for
the event located in this state after considering, through a highly
competitive selection process, one or more sites that are not
located in this state;
(2) a site selection organization selects a site in
this state as:
(A) the sole site for the event; or
(B) the sole site for the event in a region
composed of this state and one or more adjoining states; and
(3) the event is held not more than one time in this
state or an adjoining state in any year.
(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 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.
(c-1) The comptroller shall base the determination
specified by Subsection (b) of this section on information
submitted by the local organizing committee, endorsing
municipality, or endorsing county, and must make the determination
not later than the 30th day after the date the comptroller receives
the information.
(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 Events
[sporting events] trust fund the amount of the municipality's or
county's hotel occupancy tax revenue determined under 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. The comptroller shall
retain the amount of sales and use tax revenue and mixed beverage
tax revenue determined under 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 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. 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 Subsection (b)
of this section or at a time otherwise determined to be practicable
by the comptroller and shall discontinue retaining the local tax
revenues under this subsection when the amount of the applicable
tax revenue determined under Subsection (b)(2) or (3) of this
section has been retained. The Events [sporting events] trust fund
is established outside the state treasury and is held in trust by
the comptroller for administration of this section. Money in the
trust fund may be disbursed by the comptroller without
appropriation only as provided by this section.
(d-1) Not later than the 90th day after the last day of an
event and in lieu of the local tax revenues remitted to or retained
by the comptroller under Subsection (d) of this section, a
municipality or county may remit to the comptroller for deposit in
the Events trust fund other local funds in an amount equal to the
total amount of local tax revenue determined under Subsections
(b)(2) through (5) of this section. The amount deposited by the
comptroller into the Events trust fund under this subsection is
subject to Subsection (f) of this section.
(e) In addition to the tax revenue deposited in the Events
[sporting events] trust fund under Subsection (d) of this section,
an endorsing municipality or endorsing county may guarantee its
obligations under an event support contract and this section by
pledging surcharges from user fees, including parking or ticket
fees, charged in connection with the event. An endorsing
municipality or endorsing county may collect and remit to the
comptroller surcharges and user fees attributable to the event for
deposit into the Events trust fund.
(f) The comptroller shall deposit into the Events [sporting
events] trust fund a portion of the state tax revenue not to exceed
the amount determined under Subsection (b)(1) of this section in an
amount equal to 6.25 times the amount of the local tax revenue
retained or remitted under this section, including:
(1) local sales and use tax revenue;
(2) [and] mixed beverage tax revenue;
(3) [retained and the] hotel occupancy tax revenue;
and
(4) surcharge and user fee 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. 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 Events [sporting events] trust fund or
surcharges from user fees, including parking or ticket fees,
charged in connection with the event. Any note issued must mature
not later than seven years from its date of issuance.
(h) The money in the Events [sporting events] trust fund may
be used to pay the principal of and interest on notes issued by an
endorsing municipality or endorsing county under Subsection (g) of
this section and 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.
(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 section, including annual audited statements of
any financial records required by a site selection organization and
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. 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.
After the conclusion of an event and on the comptroller's request, a
local organizing committee, endorsing municipality, or endorsing
county must provide information relating to the event, such as
attendance figures, financial information, or other public
information held by the local organizing committee, endorsing
municipality, or endorsing county that the comptroller considers
necessary.
(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 Events [sporting events]
trust fund under this 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. The comptroller shall provide
the estimate on request to a local organizing committee, endorsing
municipality, or endorsing county. A local organizing committee,
endorsing municipality, or endorsing county may submit the
comptroller's estimate to a site selection organization.
(k) The comptroller may make a disbursement from the Events
[sporting events] trust fund on the prior approval of each
contributing endorsing municipality or endorsing county for a
purpose for which a local organizing committee, an endorsing
municipality, or an endorsing county or this state is obligated
under an event support contract. 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.
(l) If a disbursement is made from the Events [sporting
events] trust fund under Subsection (k) of this section, the
obligation shall be satisfied proportionately from the state and
local revenue in the trust 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 Events [sporting events]
trust fund.
(p) The comptroller may adopt rules necessary to implement
this section.
(q) In determining the amount of state revenue available
under Subsection (b)(1) of this section, the comptroller may
consider whether:
(1) the event has been held in this state on previous
occasions; and
(2) changes to the character of the event could affect
the incremental increase in receipts collected and remitted to the
state by an endorsing county or endorsing municipality under that
subsection.
SECTION 8. Section 5A(n), Chapter 1507 (S.B. 456), Acts of
the 76th Legislature, Regular Session, 1999 (Article 5190.14,
Vernon's Texas Civil Statutes), is repealed.
SECTION 9. The changes in law made by this Act apply only to
applications for participation in the Major Events trust fund or
the Events trust fund that are received by the comptroller on or
after September 1, 2009. An application for participation in the
Other Events trust fund or the sporting events trust fund received
before September 1, 2009, is governed by the law as it existed
immediately before the effective date of this Act, and that law and
the respective funds are continued in effect for that purpose.
SECTION 10. This Act takes effect September 1, 2009.