83R7655 GCB-D
By: Watson S.B. No. 765
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 a major
events trust fund; limiting payments from the fund to reimbursement
for attracting unique events to Texas.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
SECTION 1. Section 5A(a), 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
(6) to read as follows:
(6) "Event oversight committee" means a committee
established by the comptroller under Subsection (a-2) of this
section.
SECTION 2. 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), (b-1), (c), (h), (i), (j), (k), (m), (p), (r), and (w) and
adding Subsections (a-2) and (x) to read as follows:
(a-1) An event not listed [included] in Subsection (a)(4) of
this section is ineligible [eligible] for funding under this
section. A listed event may receive funding under this section only
if:
(1) a site selection organization listed in Subsection
(a)(5) of this section 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 listed in Subsection
(a)(5) of this section 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.
(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 (p) 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, upon
request of a local organizing committee, endorsing municipality, or
endorsing county, the event oversight committee [comptroller]
shall determine for a one-year period that begins two months before
the date on which the event will begin, 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 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 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 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 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 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.
(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 event oversight committee
[comptroller] not earlier than one year and not later than three
months before the date the event begins. 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 request and related information.
(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.
(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 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) Not later than the 30th day after the date a request of a
local organizing committee, endorsing municipality, or endorsing
county is submitted to the event oversight committee [comptroller]
under Subsection (b-1) of this section, the event oversight
committee [comptroller] shall provide an estimate of the total
amount of tax revenue that would be deposited in the Major 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. 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 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, 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 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.
(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 in the 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 trust fund.
(p) 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 listed in
Subsection (a)(5) of this section selecting the site for the event.
(r) This subsection applies only to an event that the event
oversight committee [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 event oversight committee [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.
(w) Not later than 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 event oversight committee
[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. The comptroller shall [; and
[(2)] post on the comptroller's Internet website:
(1) the results of the study conducted under this
subsection, including any source documentation or other
information relied on by the event oversight committee for the
study;
(2) the amount of incremental increase in tax receipts
for the event determined under Subsection (b) of this section;
(3) the site selection organization documentation
described in Subsection (p)(4) of this section; and
(4) any source documentation or information described
under Subsection (i) of this section that was relied on by the event
oversight committee in making the unanimous determination of the
amount of incremental increase in tax receipts under Subsection (b)
of this section [Subdivision (1) of this subsection].
(x) Subsection (w) of this section does not require
disclosure of information that is confidential under Chapter 552,
Government Code, or confidential or privileged under other law.
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 5A, 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 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.