Texas 2009 - 81st Regular

Texas Senate Bill SB1515 Compare Versions

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1	1	S.B. No. 1515
2	2
3	3
4	4	AN ACT
5	5	relating to a major events trust fund, a motor sports racing trust
6	6	fund, and an events trust fund for sporting and non-sporting
7	7	events.
8	8	BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
9	9	SECTION 1. Section 1, Chapter 1507 (S.B. 456), Acts of the
10	10	76th Legislature, Regular Session, 1999 (Article 5190.14, Vernon's
11	11	Texas Civil Statutes), is amended by amending Subdivisions (1),
12	12	(1-a), (2), (5), (6), (7), and (8) and adding Subdivision (2-a) to
13	13	read as follows:
14	14	(1) "Department" means the [Texas Department of]
15	15	Economic Development and Tourism Division, Office of the Governor
16	16	[or its successor].
17	17	(1-a) "Endorsing county" means an endorsing county for
18	18	purposes of Section 5, [or] 5A, 5B, or 5C of this Act.
19	19	(2) "Endorsing municipality" means an endorsing
20	20	municipality for purposes of Section 4, 5, 5A, [or] 5B, or 5C of
21	21	this Act.
22	22	(2-a) "Event" means a game or event as defined by
23	23	Section 5A, 5B, or 5C of this Act.
24	24	(5) "Joinder agreement" means an agreement entered
25	25	into by:
26	26	(A) the department on behalf of this state and a
27	27	site selection organization setting out representations and
28	28	assurances by the state in connection with the selection of a site
29	29	in this state for the location of a game or event [any of the games];
30	30	or
31	31	(B) a local organizing committee, an endorsing
32	32	municipality, an endorsing county, or more than one local
33	33	organizing committee, endorsing municipality, or endorsing county
34	34	acting collectively, and a site selection organization setting out
35	35	representations and assurances by each local organizing committee,
36	36	endorsing municipality, or endorsing county in connection with the
37	37	selection of a site in this state for the location of a game or event
38	38	[any of the games].
39	39	(6) "Joinder undertaking" means an agreement entered
40	40	into by:
41	41	(A) the department on behalf of this state and a
42	42	site selection organization that the state will execute a joinder
43	43	agreement if [in the event that] the site selection organization
44	44	selects a site in this state for a game or event [any of the games];
45	45	or
46	46	(B) a local organizing committee, an endorsing
47	47	municipality, an endorsing county, or more than one local
48	48	organizing committee, endorsing municipality, or endorsing county
49	49	acting collectively, and a site selection organization that each
50	50	local organizing committee, endorsing municipality, or endorsing
51	51	county will execute a joinder agreement if [in the event that] the
52	52	site selection organization selects a site in this state for a game
53	53	or event [any of the games].
54	54	(7) "Local organizing committee" means a nonprofit
55	55	corporation or its successor in interest that:
56	56	(A) has been authorized by an endorsing
57	57	municipality, endorsing county, or more than one endorsing
58	58	municipality or county acting collectively to pursue an application
59	59	and bid on the applicant's behalf to a site selection organization
60	60	for selection as the site of a game or event [one or more games]; or
61	61	(B) with the authorization of an endorsing
62	62	municipality, endorsing county, or more than [that] one endorsing
63	63	municipality or county acting collectively, has executed an
64	64	agreement with a site selection organization regarding a bid to
65	65	host a game or event [one or more games].
66	66	(8) "Site selection organization" means a site
67	67	selection organization as defined by Sections 5, 5A, and 5C of this
68	68	Act [the United States Olympic Committee, the International Olympic
69	69	Committee, the Pan American Sports Organization, the National
70	70	Football League, the National Collegiate Athletic Association, the
71	71	National Basketball Association, the National Hockey League, Major
72	72	League Baseball, Federation Internationale de Football Association
73	73	(FIFA), the International World Games Association, the Automobile
74	74	Competition Committee for the United States (ACCUS) affiliated with
75	75	the Federation Internationale de l'Automobile, the Champ Car
76	76	organization, or the American Le Mans Series organization].
77	77	SECTION 2. Sections 2 and 3, Chapter 1507 (S.B. 456), Acts
78	78	of the 76th Legislature, Regular Session, 1999 (Article 5190.14,
79	79	Vernon's Texas Civil Statutes), are amended to read as follows:
80	80	Sec. 2. PURPOSE. The purpose of this Act is to provide
81	81	assurances required by a site selection organization sponsoring a
82	82	[one or more major] sporting or non-sporting game or event
83	83	[athletic events] and to provide financing for the costs of:
84	84	(1) applying or bidding for selection as the site of a
85	85	game [major sporting] or event [athletic events] in this state;
86	86	(2) making the preparations necessary and desirable
87	87	for the conduct of a game [major sporting] or event [athletic
88	88	events] in this state, including the construction or renovation of
89	89	facilities to the extent authorized by this Act; and
90	90	(3) conducting a game [major sporting] or event
91	91	[athletic events] in this state.
92	92	Sec. 3. LEGISLATIVE FINDINGS. The conduct in this state of
93	93	one or more games [major sporting] or [athletic] events will:
94	94	(1) provide invaluable public visibility throughout
95	95	the nation or world for this state and the communities where the
96	96	games [major sporting] or [athletic] events are held;
97	97	(2) encourage and provide major economic benefits to
98	98	the communities where the games [major sporting] or [athletic]
99	99	events are held and to the entire state; and
100	100	(3) provide opportunities for the creation of jobs by
101	101	local and Texas businesses that pay a living wage.
102	102	SECTION 3. The heading to Section 5A, Chapter 1507 (S.B.
103	103	456), Acts of the 76th Legislature, Regular Session, 1999 (Article
104	104	5190.14, Vernon's Texas Civil Statutes), is amended to read as
105	105	follows:
106	106	Sec. 5A. PAYMENT OF STATE AND MUNICIPAL OR COUNTY
107	107	OBLIGATIONS; MAJOR [OTHER] EVENTS TRUST FUND.
108	108	SECTION 4. Section 5A, Chapter 1507 (S.B. 456), Acts of the
109	109	76th Legislature, Regular Session, 1999 (Article 5190.14, Vernon's
110	110	Texas Civil Statutes), is amended by amending Subsections (a)
111	111	through (m), (o), and (p) and adding Subsections (a-1), (b-1),
112	112	(d-1), (r), (s), (t), (u), and (v) to read as follows:
113	113	(a) In this section:
114	114	(1) "Endorsing county" means:
115	115	(A) a county that contains a site selected by a
116	116	site selection organization for one or more events; or
117	117	(B) a county that:
118	118	(i) does not contain a site selected by a
119	119	site selection organization for an event;
120	120	(ii) is included in the market area for the
121	121	event as designated by the comptroller; and
122	122	(iii) is a party to an event support
123	123	contract [games].
124	124	(2) "Endorsing municipality" means:
125	125	(A) a municipality that contains a site selected
126	126	by a site selection organization for one or more events; or
127	127	(B) a municipality that:
128	128	(i) does not contain a site selected by a
129	129	site selection organization for an event;
130	130	(ii) is included in the market area for the
131	131	event as designated by the comptroller; and
132	132	(iii) is a party to an event support
133	133	contract [games].
134	134	(3) "Event support contract" means a joinder
135	135	undertaking, joinder agreement, or a similar contract executed by a
136	136	local organizing committee, an endorsing municipality, or an
137	137	endorsing county and a site selection organization.
138	138	(4) "Event" ["Game"] means a Super Bowl, a National
139	139	Collegiate Athletic Association Final Four tournament game, the
140	140	National Basketball Association All-Star Game, the National Hockey
141	141	League All-Star Game, the Major League Baseball All-Star Game, a
142	142	National Collegiate Athletic Association Bowl Championship Series
143	143	game, a World Cup Soccer game, the World Games, a national
144	144	collegiate championship of an amateur sport sanctioned by the
145	145	national governing body of the sport that is recognized by the
146	146	United States Olympic Committee, [or] an Olympic activity,
147	147	including a Junior or Senior activity, training program, or feeder
148	148	program sanctioned by the United States Olympic Committee's
149	149	Community Olympic Development Program, the Breeders' Cup World
150	150	Championships, or a Formula One automobile race. The term includes
151	151	any [events and] activities related to or associated with an event
152	152	[the games].
153	153	(5) "Site selection organization" means the National
154	154	Football League, the National Collegiate Athletic Association, the
155	155	National Basketball Association, the National Hockey League, Major
156	156	League Baseball, the Federation Internationale de Football
157	157	Association (FIFA), the International World Games Association, the
158	158	United States Olympic Committee[,] or the national governing body
159	159	of a sport that is recognized [as such] by the United States Olympic
160	160	Committee, the National Thoroughbred Racing Association, Formula
161	161	One Management Limited, or the Federation Internationale de
162	162	l'Automobile.
163	163	(a-1) An event included in Subsection (a)(4) of this section
164	164	is eligible for funding under this section only if:
165	165	(1) a site selection organization selects a site
166	166	located in this state for the event after considering, through a
167	167	highly competitive selection process, one or more sites that are
168	168	not located in this state;
169	169	(2) a site selection organization selects a site in
170	170	this state as the sole site for the event; and
171	171	(3) the event is held not more than one time in any
172	172	year.
173	173	(b) If a site selection organization selects a site for an
174	174	event [a game] in this state pursuant to an application by a local
175	175	organizing committee, endorsing municipality, or endorsing county,
176	176	[not later than three months before the date of the game or six
177	177	months before the date of the game] upon request of a local
178	178	organizing committee, endorsing municipality, or endorsing county,
179	179	the comptroller shall determine for a one-year [the two-week]
180	180	period that begins two months before [ends at the end of the day
181	181	after] the date on which the event [game] will begin [be held], in
182	182	accordance with procedures developed by the comptroller:
183	183	(1) the incremental increase in the receipts to the
184	184	state from taxes imposed under Chapters 151, 152, 156, and 183, Tax
185	185	Code, and under Title 5, Alcoholic Beverage Code, within the market
186	186	areas designated under Subsection (c) of this section, that is
187	187	directly attributable, as determined by the comptroller, to the
188	188	preparation for and presentation of the event [game] and related
189	189	activities [events];
190	190	(2) the incremental increase in the receipts collected
191	191	by the state on behalf of each endorsing municipality in the market
192	192	area from the sales and use tax imposed by each endorsing
193	193	municipality under Section 321.101(a), Tax Code, and the mixed
194	194	beverage tax revenue to be received by each endorsing municipality
195	195	under Section 183.051(b), Tax Code, that is directly attributable,
196	196	as determined by the comptroller, to the preparation for and
197	197	presentation of the event [game] and related activities [events];
198	198	(3) the incremental increase in the receipts collected
199	199	by the state on behalf of each endorsing county in the market area
200	200	from the sales and use tax imposed by each endorsing county under
201	201	Section 323.101(a), Tax Code, and the mixed beverage tax revenue to
202	202	be received by each endorsing county under Section 183.051(b), Tax
203	203	Code, that is directly attributable, as determined by the
204	204	comptroller, to the preparation for and presentation of the event
205	205	[game] and related activities [events];
206	206	(4) the incremental increase in the receipts collected
207	207	by each endorsing municipality in the market area from the hotel
208	208	occupancy tax imposed under Chapter 351, Tax Code, that is directly
209	209	attributable, as determined by the comptroller, to the preparation
210	210	for and presentation of the event [game] and related activities
211	211	[events]; and
212	212	(5) the incremental increase in the receipts collected
213	213	by each endorsing county in the market area from the hotel occupancy
214	214	tax imposed under Chapter 352, Tax Code, that is directly
215	215	attributable, as determined by the comptroller, to the preparation
216	216	for and presentation of the event [game] and related activities
217	217	[events].
218	218	(b-1) A request for a determination of the amount of
219	219	incremental increase in tax receipts specified by Subsection (b) of
220	220	this section must be submitted to the comptroller not earlier than
221	221	one year and not later than three months before the date the event
222	222	begins. The comptroller shall base the determination specified by
223	223	Subsection (b) of this section on information submitted by the
224	224	local organizing committee, endorsing municipality, or endorsing
225	225	county, and must make the determination not later than the 30th day
226	226	after the date the comptroller receives the request and related
227	227	information.
228	228	(c) For the purposes of Subsection (b)(1) of this section,
229	229	the comptroller shall designate as a market area for the event
230	230	[game] each area in which the comptroller determines there is a
231	231	reasonable likelihood of measurable economic impact directly
232	232	attributable to the preparation for and presentation of the event
233	233	[game] and related activities [events], including areas likely to
234	234	provide venues, accommodations, and services in connection with the
235	235	event [game] based on the proposal provided by the local organizing
236	236	committee to the comptroller. The comptroller shall determine the
237	237	geographic boundaries of each market area. An endorsing
238	238	municipality or endorsing county that has been selected as the site
239	239	for the event [game] must be included in a market area for the event
240	240	[game].
241	241	(d) Each endorsing municipality or endorsing county shall
242	242	remit to the comptroller and the comptroller shall deposit into a
243	243	trust fund created by the comptroller and designated as the Major
244	244	[Other] Events trust fund the amount of the municipality's or
245	245	county's hotel occupancy tax revenue determined under Subsection
246	246	(b)(4) or (b)(5) of this section, less any amount of the revenue
247	247	that the municipality or county determines is necessary to meet the
248	248	obligations of the municipality or county. The comptroller shall
249	249	retain the amount of sales and use tax revenue and mixed beverage
250	250	tax revenue determined under Subsection (b)(2) or (b)(3) of this
251	251	section from the amounts otherwise required to be sent to the
252	252	municipality under Sections 321.502 and 183.051(b), Tax Code, or to
253	253	the county under Sections 323.502 and 183.051(b), Tax Code, and
254	254	deposit into the trust fund the tax revenues, less any amount of the
255	255	revenue that the municipality or county determines is necessary to
256	256	meet the obligations of the municipality or county. The
257	257	comptroller shall begin retaining and depositing the local tax
258	258	revenues with the first distribution of that tax revenue that
259	259	occurs after the first day of the one-year [two-week] period
260	260	described by Subsection (b) of this section or at a time otherwise
261	261	determined to be practicable by the comptroller and shall
262	262	discontinue retaining the local tax revenues under this subsection
263	263	when the amount of the applicable tax revenue determined under
264	264	Subsection (b)(2) or (b)(3) of this section has been retained. The
265	265	Major [Other] Events trust fund is established outside the state
266	266	treasury and is held in trust by the comptroller for administration
267	267	of this Act. Money in the trust fund may be disbursed by the
268	268	comptroller without appropriation only as provided by this section.
269	269	(d-1) Not later than the 90th day after the last day of an
270	270	event and in lieu of the local tax revenues remitted to or retained
271	271	by the comptroller under Subsection (d) of this section, a
272	272	municipality or county may remit to the comptroller for deposit in
273	273	the Major Events trust fund other local funds in an amount equal to
274	274	the total amount of local tax revenue determined under Subsections
275	275	(b)(2) through (5) of this section. The amount deposited by the
276	276	comptroller into the Major Events trust fund under this subsection
277	277	is subject to Subsection (f) of this section.
278	278	(e) In addition to the tax revenue deposited in the Major
279	279	[Other] Events trust fund under Subsection (d) of this section, an
280	280	endorsing municipality or endorsing county may guarantee its
281	281	obligations under an event [a game] support contract and this
282	282	section by pledging surcharges from user fees, including parking or
283	283	ticket fees, charged in connection with the event [game]. An
284	284	endorsing municipality or endorsing county may collect and remit to
285	285	the comptroller surcharges and user fees attributable to the event
286	286	for deposit into the Major Events trust fund.
287	287	(f) The comptroller shall deposit into the Major Events
288	288	trust fund a portion of the state tax revenue not to exceed the
289	289	amount determined under Subsection (b)(1) of this section in an
290	290	amount equal to 6.25 times the amount of the local revenue retained
291	291	or remitted under this section, including:
292	292	(1) local sales and use tax revenue;
293	293	(2) [and] mixed beverage tax revenue;
294	294	(3) [retained and the] hotel occupancy tax revenue;
295	295	and
296	296	(4) surcharge and user fee revenue [remitted by an
297	297	endorsing municipality or endorsing county under Subsection (d) of
298	298	this section].
299	299	(g) To meet its obligations under a game support contract or
300	300	event support contract to improve, construct, renovate, or acquire
301	301	facilities or to acquire equipment, an endorsing municipality by
302	302	ordinance or an endorsing county by order may authorize the
303	303	issuance of notes. An endorsing municipality or endorsing county
304	304	may provide that the notes be paid from and secured by amounts on
305	305	deposit or amounts to be deposited into the Major [Other] Events
306	306	trust fund or surcharges from user fees, including parking or
307	307	ticket fees, charged in connection with the event [game]. Any note
308	308	issued must mature not later than seven years from its date of
309	309	issuance.
310	310	(h) The funds in the Major [Other] Events trust fund may be
311	311	used to pay the principal of and interest on notes issued by an
312	312	endorsing municipality or endorsing county under Subsection (g) of
313	313	this section and to fulfill obligations of the state or an endorsing
314	314	municipality or endorsing county to a site selection organization
315	315	under a game support contract or event support contract, which
316	316	obligations may include the payment of costs relating to the
317	317	preparations necessary or desirable for the conduct of the event
318	318	[game] and the payment of costs of conducting the event [game],
319	319	including improvements or renovations to existing facilities or
320	320	other facilities and costs of acquisition or construction of new
321	321	facilities or other facilities.
322	322	(i) A local organizing committee, endorsing municipality,
323	323	or endorsing county shall provide information required by the
324	324	comptroller to enable the comptroller to fulfill the comptroller's
325	325	duties under this section, including annual audited statements of
326	326	any financial records required by a site selection organization and
327	327	data obtained by the local organizing committee, an endorsing
328	328	municipality, or an endorsing county relating to attendance at the
329	329	event [game] and to the economic impact of the event [game]. A
330	330	local organizing committee, endorsing municipality, or endorsing
331	331	county must provide an annual audited financial statement required
332	332	by the comptroller, if any, not later than the end of the fourth
333	333	month after the date the period covered by the financial statement
334	334	ends. After the conclusion of an event and on the comptroller's
335	335	request, a local organizing committee, endorsing municipality, or
336	336	endorsing county must provide information relating to the event,
337	337	such as attendance figures, financial information, or other public
338	338	information held by the local organizing committee, endorsing
339	339	municipality, or endorsing county that the comptroller considers
340	340	necessary.
341	341	(j) Not [The comptroller shall provide an estimate not]
342	342	later than the 30th day after the date a [three months before the
343	343	date of a game or six months before the date of the game upon]
344	344	request of a local organizing committee, endorsing municipality, or
345	345	endorsing county is submitted to the comptroller under Subsection
346	346	(b-1) of this section, the comptroller shall provide an estimate of
347	347	the total amount of tax revenue that would be deposited in the Major
348	348	[Other] Events trust fund under this section in connection with
349	349	that event [game], if the event [game] were to be held in this state
350	350	at a site selected pursuant to an application by a local organizing
351	351	committee, endorsing municipality, or endorsing county. [The
352	352	comptroller shall provide the estimate on request to a local
353	353	organizing committee, endorsing municipality, or endorsing
354	354	county.] A local organizing committee, endorsing municipality, or
355	355	endorsing county may submit the comptroller's estimate to a site
356	356	selection organization.
357	357	(k) The comptroller may make a disbursement from the Major
358	358	[Other] Events trust fund on the prior approval of each
359	359	contributing endorsing municipality or endorsing county for a
360	360	purpose for which a local organizing committee, an endorsing
361	361	municipality, or an endorsing county or the state is obligated
362	362	under a game support contract or event support contract. A
363	363	disbursement may not be made from the trust fund that the
364	364	comptroller determines would be used for the purpose of soliciting
365	365	the relocation of a professional sports franchise located in this
366	366	state.
367	367	(l) If a disbursement is made from the Major [Other] Events
368	368	trust fund under Subsection (k), the obligation shall be satisfied
369	369	proportionately from the state and local revenue in the trust fund.
370	370	(m) On payment of all state, municipal, or county
371	371	obligations under a game support contract or event support contract
372	372	related to the location of any particular event [game] in the state,
373	373	the comptroller shall remit to each endorsing entity, in proportion
374	374	to the amount contributed by the entity, any money remaining in the
375	375	trust fund.
376	376	(o) This section may not be construed as creating or
377	377	requiring a state guarantee of obligations imposed on the state or
378	378	an endorsing municipality or endorsing county under an event [a
379	379	game] support contract or other agreement relating to hosting one
380	380	or more events [games] in this state.
381	381	(p) The comptroller may not undertake any of the
382	382	responsibilities or duties set forth in this section unless a
383	383	request is submitted by the municipality or [and] the county in
384	384	which the event [game] will be located. The request must be
385	385	accompanied by documentation from a site selection organization
386	386	selecting the site for the event [game].
387	387	(r) This subsection applies only to an event that the
388	388	comptroller determines under Subsection (b) of this section will
389	389	generate at least $15 million in state and local tax revenue. The
390	390	comptroller and one or more endorsing municipalities or endorsing
391	391	counties may enter into an agreement to provide that an amount equal
392	392	to the amount of local tax revenue determined by the comptroller
393	393	under Subsections (b)(2) through (5) of this section shall be
394	394	remitted to the comptroller by one or more endorsing municipalities
395	395	or endorsing counties and shall be deposited by the comptroller
396	396	into the Major Events trust fund before the event. In the 12 months
397	397	immediately preceding the event, the comptroller may deposit into
398	398	the trust fund an amount equal to the amount the state is required
399	399	to deposit under Subsection (f) of this section from any amounts
400	400	appropriated by the legislature for the purposes of this
401	401	subsection. The comptroller may make disbursements from the trust
402	402	fund in amounts that do not exceed the amounts deposited under this
403	403	subsection in accordance with the agreement to pay costs relating
404	404	to attracting and securing the event. An agreement under this
405	405	subsection may provide that, following the last day of an event, the
406	406	funds eligible for disbursement under Subsection (k) of this
407	407	section be held in the trust fund and made available to pay the cost
408	408	of securing the event in future years.
409	409	(s) The term of an agreement entered into under Subsection
410	410	(r) of this section may not exceed 10 years and must terminate:
411	411	(1) on the final termination date provided in the
412	412	agreement; or
413	413	(2) if the event covered by the agreement is not held
414	414	during any 18-month period covered by the agreement.
415	415	(t) On termination of an agreement entered into under
416	416	Subsection (r) of this section, the total amount of the state's
417	417	initial contribution under the agreement must be repaid to the
418	418	state from funds disbursed under Subsection (k) of this section or
419	419	from any other source specified in the agreement. An agreement
420	420	entered into under Subsection (r) of this section must include
421	421	terms that the comptroller determines are necessary to protect the
422	422	state's interest, including a provision for a performance bond or
423	423	other guarantee of repayment if the event is not held in the state
424	424	after a disbursement has been made.
425	425	(u) The comptroller shall deposit any amount appropriated
426	426	by the legislature for the purposes of Subsection (r) of this
427	427	section into the Major Event trust fund for the limited purpose of
428	428	paying the costs of attracting and securing an event eligible under
429	429	that subsection.
430	430	(v) The comptroller may adopt rules necessary to implement
431	431	this section.
432	432	SECTION 5. Subdivisions (1) and (2), Subsection (a),
433	433	Section 5B, Chapter 1507 (S.B. 456), Acts of the 76th Legislature,
434	434	Regular Session, 1999 (Article 5190.14, Vernon's Texas Civil
435	435	Statutes), are amended to read as follows:
436	436	(1) "Endorsing county" means a county [with a
437	437	population of one million or more] that contains a site selected by
438	438	a site selection organization for one or more motor sports racing
439	439	events.
440	440	(2) "Endorsing municipality" means a municipality
441	441	[with a population of one million or more] that contains a site
442	442	selected by a site selection organization for one or more motor
443	443	sports racing events.
444	444	SECTION 6. The heading to Section 5C, Chapter 1507 (S.B.
445	445	456), Acts of the 76th Legislature, Regular Session, 1999 (Article
446	446	5190.14, Vernon's Texas Civil Statutes), is amended to read as
447	447	follows:
448	448	Sec. 5C. EVENTS [SPORTING EVENT] TRUST FUND FOR CERTAIN
449	449	MUNICIPALITIES AND COUNTIES.
450	450	SECTION 7. Section 5C, Chapter 1507 (S.B. 456), Acts of the
451	451	76th Legislature, Regular Session, 1999 (Article 5190.14, Vernon's
452	452	Texas Civil Statutes), is amended by amending Subsections (a), (b),
453	453	and (d) through (m), and by adding Subsections (a-1), (c-1), (d-1),
454	454	(p), and (q) to read as follows:
455	455	(a) In this section:
456	456	(1) "Endorsing county" means a county [with a
457	457	population of 800,000 or more] that contains a site selected by a
458	458	site selection organization for one or more events.
459	459	(2) "Endorsing municipality" means a municipality
460	460	[with a population of 500,000 or more] that contains a site selected
461	461	by a site selection organization for one or more events.
462	462	(3) "Event" means an [a National Collegiate Athletic
463	463	Association regional tournament or playoff game, a Senior Olympic
464	464	activity, including a training program or feeder program sanctioned
465	465	by the National Senior Games Association, or a major sporting or
466	466	athletic] event or a related series of events held in this state for
467	467	which a local organizing committee, endorsing county, or endorsing
468	468	municipality seeks approval from [sanctioned by] a site selection
469	469	organization to hold the event at a site in this state. The term
470	470	includes any activities related to or associated with the event.
471	471	(4) "Event support contract" means a joinder
472	472	undertaking, a joinder agreement, or a similar contract executed by
473	473	a local organizing committee, an endorsing municipality, or an
474	474	endorsing county and a site selection organization.
475	475	(5) "Site selection organization" means an entity that
476	476	conducts or considers conducting an eligible event in this state
477	477	[the United States Olympic Committee (USOC), United States Youth
478	478	Soccer Association (USYSA), United States Bowling Congress (USBC),
479	479	Amateur Softball Association of America (ASA), National Senior
480	480	Games Association (NSGA), American Youth Football and Cheer (AYF),
481	481	United States Lacrosse (USL), National Collegiate Athletic
482	482	Association (NCAA), United States Tennis Association (USTA),
483	483	Special Olympics, National Association for Stock Car Auto Racing
484	484	(NASCAR), Breeders' Cup, or another major nationally or
485	485	internationally recognized sports organization].
486	486	(a-1) An event is eligible for funding under this section
487	487	only if:
488	488	(1) a site selection organization selects a site for
489	489	the event located in this state after considering, through a highly
490	490	competitive selection process, one or more sites that are not
491	491	located in this state;
492	492	(2) a site selection organization selects a site in
493	493	this state as:
494	494	(A) the sole site for the event; or
495	495	(B) the sole site for the event in a region
496	496	composed of this state and one or more adjoining states; and
497	497	(3) the event is held not more than one time in this
498	498	state or an adjoining state in any year.
499	499	(b) If a site selection organization[, after considering
500	500	through a highly competitive process one or more sites that are not
501	501	located in this state,] selects a site for an event in this state
502	502	pursuant to an application by a local organizing committee,
503	503	endorsing municipality, or endorsing county, not later than three
504	504	months before the date of the event, the comptroller shall
505	505	determine for the 30-day period that ends at the end of the day
506	506	after the date on which the event will be held or, if the event
507	507	occurs on more than one day, after the last date on which the event
508	508	will be held, in accordance with procedures developed by the
509	509	comptroller:
510	510	(1) the incremental increase in the receipts to this
511	511	state from taxes imposed under Chapters 151, 152, 156, and 183, Tax
512	512	Code, and under Title 5, Alcoholic Beverage Code, within the market
513	513	areas designated under Subsection (c) of this section, that is
514	514	directly attributable, as determined by the comptroller, to the
515	515	preparation for and presentation of the event and related
516	516	activities;
517	517	(2) the incremental increase in the receipts collected
518	518	by this state on behalf of each endorsing municipality in the market
519	519	area from the sales and use tax imposed by each endorsing
520	520	municipality under Section 321.101(a), Tax Code, and the mixed
521	521	beverage tax revenue to be received by each endorsing municipality
522	522	under Section 183.051(b), Tax Code, that is directly attributable,
523	523	as determined by the comptroller, to the preparation for and
524	524	presentation of the event and related activities;
525	525	(3) the incremental increase in the receipts collected
526	526	by this state on behalf of each endorsing county in the market area
527	527	from the sales and use tax imposed by each endorsing county under
528	528	Section 323.101(a), Tax Code, and the mixed beverage tax revenue to
529	529	be received by each endorsing county under Section 183.051(b), Tax
530	530	Code, that is directly attributable, as determined by the
531	531	comptroller, to the preparation for and presentation of the event
532	532	and related activities;
533	533	(4) the incremental increase in the receipts collected
534	534	by each endorsing municipality in the market area from the hotel
535	535	occupancy tax imposed under Chapter 351, Tax Code, that is directly
536	536	attributable, as determined by the comptroller, to the preparation
537	537	for and presentation of the event and related activities; and
538	538	(5) the incremental increase in the receipts collected
539	539	by each endorsing county in the market area from the hotel occupancy
540	540	tax imposed under Chapter 352, Tax Code, that is directly
541	541	attributable, as determined by the comptroller, to the preparation
542	542	for and presentation of the event and related activities.
543	543	(c-1) The comptroller shall base the determination
544	544	specified by Subsection (b) of this section on information
545	545	submitted by the local organizing committee, endorsing
546	546	municipality, or endorsing county, and must make the determination
547	547	not later than the 30th day after the date the comptroller receives
548	548	the information.
549	549	(d) Each endorsing municipality or endorsing county shall
550	550	remit to the comptroller and the comptroller shall deposit into a
551	551	trust fund created by the comptroller and designated as the Events
552	552	[sporting events] trust fund the amount of the municipality's or
553	553	county's hotel occupancy tax revenue determined under Subsection
554	554	(b)(4) or (5) of this section, less any amount of the revenue that
555	555	the municipality or county determines is necessary to meet the
556	556	obligations of the municipality or county. The comptroller shall
557	557	retain the amount of sales and use tax revenue and mixed beverage
558	558	tax revenue determined under Subsection (b)(2) or (3) of this
559	559	section from the amounts otherwise required to be sent to the
560	560	municipality under Sections 321.502 and 183.051(b), Tax Code, or to
561	561	the county under Sections 323.502 and 183.051(b), Tax Code, and
562	562	deposit into the trust fund the tax revenues, less any amount of the
563	563	revenue that the municipality or county determines is necessary to
564	564	meet the obligations of the municipality or county. The
565	565	comptroller shall begin retaining and depositing the local tax
566	566	revenues with the first distribution of that tax revenue that
567	567	occurs after the first day of the period described by Subsection (b)
568	568	of this section or at a time otherwise determined to be practicable
569	569	by the comptroller and shall discontinue retaining the local tax
570	570	revenues under this subsection when the amount of the applicable
571	571	tax revenue determined under Subsection (b)(2) or (3) of this
572	572	section has been retained. The Events [sporting events] trust fund
573	573	is established outside the state treasury and is held in trust by
574	574	the comptroller for administration of this section. Money in the
575	575	trust fund may be disbursed by the comptroller without
576	576	appropriation only as provided by this section.
577	577	(d-1) Not later than the 90th day after the last day of an
578	578	event and in lieu of the local tax revenues remitted to or retained
579	579	by the comptroller under Subsection (d) of this section, a
580	580	municipality or county may remit to the comptroller for deposit in
581	581	the Events trust fund other local funds in an amount equal to the
582	582	total amount of local tax revenue determined under Subsections
583	583	(b)(2) through (5) of this section. The amount deposited by the
584	584	comptroller into the Events trust fund under this subsection is
585	585	subject to Subsection (f) of this section.
586	586	(e) In addition to the tax revenue deposited in the Events
587	587	[sporting events] trust fund under Subsection (d) of this section,
588	588	an endorsing municipality or endorsing county may guarantee its
589	589	obligations under an event support contract and this section by
590	590	pledging surcharges from user fees, including parking or ticket
591	591	fees, charged in connection with the event. An endorsing
592	592	municipality or endorsing county may collect and remit to the
593	593	comptroller surcharges and user fees attributable to the event for
594	594	deposit into the Events trust fund.
595	595	(f) The comptroller shall deposit into the Events [sporting
596	596	events] trust fund a portion of the state tax revenue not to exceed
597	597	the amount determined under Subsection (b)(1) of this section in an
598	598	amount equal to 6.25 times the amount of the local tax revenue
599	599	retained or remitted under this section, including:
600	600	(1) local sales and use tax revenue;
601	601	(2) [and] mixed beverage tax revenue;
602	602	(3) [retained and the] hotel occupancy tax revenue;
603	603	and
604	604	(4) surcharge and user fee revenue [remitted by an
605	605	endorsing municipality or endorsing county under Subsection (d) of
606	606	this section].
607	607	(g) To meet its obligations under an event support contract
608	608	to improve, construct, renovate, or acquire facilities or to
609	609	acquire equipment, an endorsing municipality by ordinance or an
610	610	endorsing county by order may authorize the issuance of notes. An
611	611	endorsing municipality or endorsing county may provide that the
612	612	notes be paid from and secured by amounts on deposit or amounts to
613	613	be deposited into the Events [sporting events] trust fund or
614	614	surcharges from user fees, including parking or ticket fees,
615	615	charged in connection with the event. Any note issued must mature
616	616	not later than seven years from its date of issuance.
617	617	(h) The money in the Events [sporting events] trust fund may
618	618	be used to pay the principal of and interest on notes issued by an
619	619	endorsing municipality or endorsing county under Subsection (g) of
620	620	this section and to fulfill obligations of this state or an
621	621	endorsing municipality or endorsing county to a site selection
622	622	organization under an event support contract, which obligations may
623	623	include the payment of costs relating to the preparations necessary
624	624	or desirable for the conduct of the event and the payment of costs
625	625	of conducting the event, including improvements or renovations to
626	626	existing facilities or other facilities and costs of acquisition or
627	627	construction of new facilities or other facilities.
628	628	(i) A local organizing committee, endorsing municipality,
629	629	or endorsing county shall provide information required by the
630	630	comptroller to enable the comptroller to fulfill the comptroller's
631	631	duties under this section, including annual audited statements of
632	632	any financial records required by a site selection organization and
633	633	data obtained by the local organizing committee, an endorsing
634	634	municipality, or an endorsing county relating to attendance at the
635	635	event and to the economic impact of the event. A local organizing
636	636	committee, endorsing municipality, or endorsing county must
637	637	provide an annual audited financial statement required by the
638	638	comptroller, if any, not later than the end of the fourth month
639	639	after the date the period covered by the financial statement ends.
640	640	After the conclusion of an event and on the comptroller's request, a
641	641	local organizing committee, endorsing municipality, or endorsing
642	642	county must provide information relating to the event, such as
643	643	attendance figures, financial information, or other public
644	644	information held by the local organizing committee, endorsing
645	645	municipality, or endorsing county that the comptroller considers
646	646	necessary.
647	647	(j) The comptroller shall provide an estimate not later than
648	648	three months before the date of an event of the total amount of tax
649	649	revenue that would be deposited in the Events [sporting events]
650	650	trust fund under this section in connection with that event, if the
651	651	event were to be held in this state at a site selected pursuant to an
652	652	application by a local organizing committee, endorsing
653	653	municipality, or endorsing county. The comptroller shall provide
654	654	the estimate on request to a local organizing committee, endorsing
655	655	municipality, or endorsing county. A local organizing committee,
656	656	endorsing municipality, or endorsing county may submit the
657	657	comptroller's estimate to a site selection organization.
658	658	(k) The comptroller may make a disbursement from the Events
659	659	[sporting events] trust fund on the prior approval of each
660	660	contributing endorsing municipality or endorsing county for a
661	661	purpose for which a local organizing committee, an endorsing
662	662	municipality, or an endorsing county or this state is obligated
663	663	under an event support contract. A disbursement may not be made
664	664	from the trust fund that the comptroller determines would be used
665	665	for the purpose of soliciting the relocation of a professional
666	666	sports franchise located in this state.
667	667	(l) If a disbursement is made from the Events [sporting
668	668	events] trust fund under Subsection (k) of this section, the
669	669	obligation shall be satisfied proportionately from the state and
670	670	local revenue in the trust fund.
671	671	(m) On payment of all state, municipal, or county
672	672	obligations under an event support contract related to the location
673	673	of any particular event in this state, the comptroller shall remit
674	674	to each endorsing entity, in proportion to the amount contributed
675	675	by the entity, any money remaining in the Events [sporting events]
676	676	trust fund.
677	677	(p) The comptroller may adopt rules necessary to implement
678	678	this section.
679	679	(q) In determining the amount of state revenue available
680	680	under Subsection (b)(1) of this section, the comptroller may
681	681	consider whether:
682	682	(1) the event has been held in this state on previous
683	683	occasions; and
684	684	(2) changes to the character of the event could affect
685	685	the incremental increase in receipts collected and remitted to the
686	686	state by an endorsing county or endorsing municipality under that
687	687	subsection.
688	688	SECTION 8. Subsection (n), Section 5A, Chapter 1507 (S.B.
689	689	456), Acts of the 76th Legislature, Regular Session, 1999 (Article
690	690	5190.14, Vernon's Texas Civil Statutes), is repealed.
691	691	SECTION 9. The changes in law made by this Act apply only to
692	692	applications for participation in the Major Events trust fund or
693	693	the Events trust fund that are received by the comptroller on or
694	694	after September 1, 2009. An application for participation in the
695	695	Other Events trust fund or the sporting events trust fund received
696	696	before September 1, 2009, is governed by the law as it existed
697	697	immediately before the effective date of this Act, and that law and
698	698	the respective funds are continued in effect for that purpose.
699	699	SECTION 10. This Act takes effect September 1, 2009.
700	700	______________________________ ______________________________
701	701	President of the Senate Speaker of the House
702	702	I hereby certify that S.B. No. 1515 passed the Senate on
703	703	April 15, 2009, by the following vote: Yeas 26, Nays 4; and that
704	704	the Senate concurred in House amendment on May 28, 2009, by the
705	705	following vote: Yeas 28, Nays 3.
706	706	______________________________
707	707	Secretary of the Senate
708	708	I hereby certify that S.B. No. 1515 passed the House, with
709	709	amendment, on May 20, 2009, by the following vote: Yeas 119,
710	710	Nays 16, one present not voting.
711	711	______________________________
712	712	Chief Clerk of the House
713	713	Approved:
714	714	______________________________
715	715	Date
716	716	______________________________
717	717	Governor