By: Watson S.B. No. 1800
A BILL TO BE ENTITLED
AN ACT
relating to the establishment and duties of an event oversight
committee for an event eligible to receive funding through an
events trust fund for certain municipalities and counties.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
SECTION 1. Subsection (a), 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
Subdivision (3-a) to read as follows:
(3-a) "Event oversight committee" means a committee
established by the comptroller under Subsection (a-2) of this
section.
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 Subsection (a-2) and
amending Subsections (b), (c), (c-1), (h), (i), (j), (k), (m), (o),
and (q) to read as follows:
(a-2) If a site selection organization selects a site for an
event in this state and a request is submitted in accordance with
Subsection (o) of this section, the comptroller shall establish for
that event an event oversight committee composed of:
(1) the comptroller;
(2) the state auditor; and
(3) for each endorsing county and endorsing
municipality for the event, one representative who has significant
experience in auditing procedures or fiscal matters relevant to the
event.
(b) If a site selection organization 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 event oversight
committee [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 event oversight
committee [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 event oversight committee [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 event
oversight committee [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 event oversight committee
[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 event oversight committee
[comptroller], to the preparation for and presentation of the event
and related activities.
(c) For the purposes of Subsection (b)(1) of this section,
the event oversight committee [comptroller] shall designate as a
market area for the event each area in which the event oversight
committee [comptroller] determines there is a reasonable
likelihood of measurable economic impact directly attributable to
the preparation for and presentation of the event and related
activities, including areas likely to provide venues,
accommodations, and services in connection with the event based on
the proposal provided by the local organizing committee to the
event oversight committee [comptroller]. The event oversight
committee [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 must be included in
a market area for the event.
(c-1) The event oversight committee [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 event
oversight committee [comptroller] receives the information.
(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 this 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 necessary [or desirable] for the
conduct of the event and the payment of costs of conducting the
event, including necessary improvements or renovations to existing
facilities or other facilities and costs of acquisition or
construction of new facilities or other facilities necessary for
the event.
(i) A local organizing committee, endorsing municipality,
or endorsing county shall provide information required by the
comptroller or event oversight committee to enable the comptroller
and event oversight committee to fulfill [the comptroller's] duties
imposed 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 or event oversight committee, 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 of the comptroller or another member of
the event oversight committee, 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 or other member of the event oversight
committee considers necessary.
(j) The event oversight committee [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 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 event oversight
committee [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 event oversight committee's
[comptroller's] estimate to a site selection organization.
(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,
provided that the purpose for which the obligation was incurred is
strictly necessary for the conduct of the event. If an obligation
is incurred under an 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.
(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, the lesser of:
(1) the amount the endorsing entity certifies to the
comptroller that the endorsing entity expended on the event; or
(2) the remainder of the [any] money [remaining] in
the Events trust fund.
(o) The comptroller may not undertake any of the
responsibilities or duties set forth in this section unless:
(1) a request is submitted by the municipality or the
county in which the event will be located;
(2) the event meets all the requirements for funding
under this section, including Subsection (a-1) of this section;
(3) the event oversight committee members unanimously
agree on the amounts of incremental increase in tax receipts
determined under Subsection (b) of this section; and
(4) the request is[. The request must be] accompanied
by documentation from a site selection organization selecting the
site for the event.
(q) In determining the amount of state revenue available
under Subsection (b)(1) of this section, the event oversight
committee [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 3. 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 Section 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 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 4. This Act takes effect immediately if it receives
a vote of two-thirds of all the members elected to each house, as
provided by Section 39, Article III, Texas Constitution. If this
Act does not receive the vote necessary for immediate effect, this
Act takes effect September 1, 2013.