By: Harper-Brown H.B. No. 3182
A BILL TO BE ENTITLED
AN ACT
relating to changing eligibility requirements, limiting
disbursements for eligible expenses and changing reporting
requirements under the major events trust fund and events trust
fund.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
SECTION 1. 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-1),
(b-1), (h), (i), (k) and (w) to read as follows:
(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:
(A) the sole site for the event; or [and]
(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 any
year; and
(4) the incremental increase in tax receipts
determined under subsection (b) is at least $1 million.
(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 45 days [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.
(h) The funds in the Major 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. Subject to
subsection (k) of this section, the [, which] obligations may
include the payment of costs relating to the preparations strictly
necessary [or desirable] for the conduct of the event and the
payment of costs of conducting the event, including strictly
necessary improvements or renovations to existing facilities or
other facilities and costs of acquisition or construction of new
facilities or other facilities that are strictly necessary for the
event.
(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, including estimated attendees from out of state, 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, including estimated attendees from out of state, financial
information, or other public information held by the local
organizing committee, endorsing municipality, or endorsing county
that the comptroller considers necessary.
(k) The comptroller may make a disbursement from the Major
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. If an obligation is incurred
under a game support contract or event support contract to make a
structural improvement to the site or to add a fixture to the site
for purposes of an event and that improvement or fixture is expected
to derive most of its value in subsequent uses of the site for
future events, a disbursement from the trust fund made for purposes
of that obligation is limited to five percent of the cost of the
improvement or fixture and the remainder of the obligation is not
eligible for a disbursement from the trust fund. 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.
(w) No [Not] later than 10 [18] months after the last day of
an event eligible for disbursements from the Major Events trust
fund for costs associated with the event, the comptroller using
existing resources shall:
(1) complete a study in the market area of the event on
the measurable economic impact directly attributable to the
preparation for and presentation of the event and related
activities; [and]
(2) post on the comptroller's Internet website the
results of the study conducted under Subdivision (1) of this
subsection; and
(3) not consider a subsequent request to participate
in the major events trust fund program for the same event in the
same endorsing municipality or endorsing county until a post event
study is completed under this subsection for a preceding event.
SECTION 2. 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 adding subsections (a-2) and
(r) and amending subsections (h), (i) and (k) to read as follows:
(a-2) An endorsing municipality or endorsing county may
only submit one request for participation in the events trust fund
program per calendar year, except for any additional event(s) that:
(1) would result in a minimum of $375,000 in incremental tax
gain; or
(2) draw 25,000 or more out state visitors to an event.
(h) The money in the 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 an event support contract. Subject to Subsection (k) of this
section, the [, which] obligations may include the payment of costs
relating to the preparations strictly necessary [or desirable] for
the conduct of the event and the payment of costs of conducting the
event, including strictly necessary improvements or renovations to
existing facilities or other facilities and costs of acquisition or
construction of new facilities or other facilities strictly
necessary for the event.
(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, including estimated attendees from out of state, 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, including estimated attendees from out of state, financial
information, or other public information held by the local
organizing committee, endorsing municipality, or endorsing county
that the comptroller considers necessary.
(k) The comptroller may make a disbursement from the 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.
If an obligation is incurred under a game support contract or event
support contract to make a structural improvement to the site or to
add a fixture to the site for purposes of an event and that
improvement or fixture is expected to derive most of its value in
subsequent uses of the site for future events, a disbursement from
the trust fund made for purposes of that obligation is limited to
five percent of the cost of the improvement or fixture and the
remainder of the obligation is not eligible for a disbursement from
the trust fund. 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.
(r) After an event has concluded, the comptroller shall
compare information submitted to the comptroller under subsection
(i) relating to the actual attendance count at an event to the
projected attendance count used to determine the incremental tax
increase under subsection (b). If the comptroller determines that
actual attendance count is significantly less than the projected
attendance count, the comptroller may proportionately reduce the
total amount that an endorsing municipality or endorsing county may
be eligible to receive in total disbursement distributions from the
trust fund. After the payment of all eligible disbursements, any
excess amounts remaining in the trust fund may be refunded under
subsection (m).
SECTION 3. Subsections (r), (s), (t) and (u), Section 5A,
Chapter 1507 (S.B. 456), Acts of the 76th Legislature, Regular
Session, 1999 (Article 5190.14, Vernon's Texas Civil Statutes) are
repealed.
SECTION 4 The changes in law made by this Act apply only to a
request submitted to the comptroller by an endorsing municipality
or endorsing county under Sections 5A or 5C, Chapter 1507 (S.B.
456), Acts of the 76th Legislature, Regular Session, 1999 (Article
5190.14, Vernon's Texas Civil Statutes), on or after the effective
date of this Act. A request submitted under Section 5A or 5C before
that date is governed by the law in effect on the date the request is
submitted, and that law is continued in effect for that purpose.
SECTION 5. This Act takes effect September 1, 2013.