Texas 2015 - 84th Regular

Texas House Bill HB1292 Compare Versions

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1	1	84R4528 GCB-D
2	2	By: Rodriguez of Travis H.B. No. 1292
3	3
4	4
5	5	A BILL TO BE ENTITLED
6	6	AN ACT
7	7	relating to renaming the Major Events trust fund to the Major Events
8	8	Reimbursement Program.
9	9	BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
10	10	SECTION 1. The heading to Section 5A, Chapter 1507 (S.B.
11	11	456), Acts of the 76th Legislature, Regular Session, 1999 (Article
12	12	5190.14, Vernon's Texas Civil Statutes), is amended to read as
13	13	follows:
14	14	Sec. 5A. PAYMENT OF STATE AND MUNICIPAL OR COUNTY
15	15	OBLIGATIONS UNDER[;] MAJOR EVENTS REIMBURSEMENT PROGRAM [TRUST
16	16	FUND].
17	17	SECTION 2. Sections 5A(a-1), (d), (d-1), (e), (f), (g),
18	18	(h), (j), (k), (l), (m), (w), and (y), Chapter 1507 (S.B. 456), Acts
19	19	of the 76th Legislature, Regular Session, 1999 (Article 5190.14,
20	20	Vernon's Texas Civil Statutes), are amended to read as follows:
21	21	(a-1) An event not listed in Subsection (a)(4) of this
22	22	section is ineligible for funding under this section. A listed
23	23	event may receive funding through the Major Events Reimbursement
24	24	Program under this section only if:
25	25	(1) a site selection organization selects a site
26	26	located in this state for the event to be held one time or, for an
27	27	event scheduled to be held each year for a period of years under an
28	28	event contract, or an event support contract, one time each year for
29	29	the period of years, after considering, through a highly
30	30	competitive selection process, one or more sites that are not
31	31	located in this state;
32	32	(2) a site selection organization selects a site in
33	33	this state as:
34	34	(A) the sole site for the event; or
35	35	(B) the sole site for the event in a region
36	36	composed of this state and one or more adjoining states;
37	37	(3) the event is held not more than one time in any
38	38	year; and
39	39	(4) the amount of the incremental increase in tax
40	40	receipts determined by the comptroller under Subsection (b) of this
41	41	section equals or exceeds $1 million, provided that for an event
42	42	scheduled to be held each year for a period of years under an event
43	43	contract or event support contract, the incremental increase in tax
44	44	receipts shall be calculated as if the event did not occur in the
45	45	prior year.
46	46	(d) Each endorsing municipality or endorsing county
47	47	participating in the Major Events Reimbursement Program shall remit
48	48	to the comptroller and the comptroller shall deposit into a trust
49	49	fund created by the comptroller and designated as the Major Events
50	50	reimbursement program [trust] fund the amount of the municipality's
51	51	or county's hotel occupancy tax revenue determined under Subsection
52	52	(b)(4) or (b)(5) of this section, less any amount of the revenue
53	53	that the municipality or county determines is necessary to meet the
54	54	obligations of the municipality or county. The comptroller shall
55	55	retain the amount of sales and use tax revenue and mixed beverage
56	56	tax revenue determined under Subsection (b)(2) or (b)(3) of this
57	57	section from the amounts otherwise required to be sent to the
58	58	municipality under Sections 321.502 and 183.051(b), Tax Code, or to
59	59	the county under Sections 323.502 and 183.051(b), Tax Code, and
60	60	deposit into the [trust] fund the tax revenues, less any amount of
61	61	the revenue that the municipality or county determines is necessary
62	62	to meet the obligations of the municipality or county. The
63	63	comptroller shall begin retaining and depositing the local tax
64	64	revenues with the first distribution of that tax revenue that
65	65	occurs after the first day of the one-year period described by
66	66	Subsection (b) of this section or at a time otherwise determined to
67	67	be practicable by the comptroller and shall discontinue retaining
68	68	the local tax revenues under this subsection when the amount of the
69	69	applicable tax revenue determined under Subsection (b)(2) or (b)(3)
70	70	of this section has been retained. The Major Events reimbursement
71	71	program [trust] fund is established outside the state treasury and
72	72	is held in trust by the comptroller for administration of this
73	73	Act. Money in the [trust] fund may be disbursed by the comptroller
74	74	without appropriation only as provided by this section.
75	75	(d-1) Not later than the 90th day after the last day of an
76	76	event eligible for funding under the Major Events Reimbursement
77	77	Program and in lieu of the local tax revenues remitted to or
78	78	retained by the comptroller under Subsection (d) of this section, a
79	79	municipality or county may remit to the comptroller for deposit in
80	80	the Major Events reimbursement program [trust] fund other local
81	81	funds in an amount equal to the total amount of local tax revenue
82	82	determined under Subsections (b)(2) through (5) of this
83	83	section. The amount deposited by the comptroller into the Major
84	84	Events reimbursement program [trust] fund under this subsection is
85	85	subject to Subsection (f) of this section.
86	86	(e) In addition to the tax revenue deposited in the Major
87	87	Events reimbursement program [trust] fund under Subsection (d) of
88	88	this section, an endorsing municipality or endorsing county may
89	89	guarantee its obligations under an event support contract and this
90	90	section by pledging surcharges from user fees, including parking or
91	91	ticket fees, charged in connection with the event. An endorsing
92	92	municipality or endorsing county may collect and remit to the
93	93	comptroller surcharges and user fees attributable to the event for
94	94	deposit into the Major Events reimbursement program [trust] fund.
95	95	(f) The comptroller shall deposit into the Major Events
96	96	reimbursement program [trust] fund a portion of the state tax
97	97	revenue not to exceed the amount determined under Subsection (b)(1)
98	98	of this section in an amount equal to 6.25 times the amount of the
99	99	local revenue retained or remitted under this section, including:
100	100	(1) local sales and use tax revenue;
101	101	(2) mixed beverage tax revenue;
102	102	(3) hotel occupancy tax revenue; and
103	103	(4) surcharge and user fee revenue.
104	104	(g) To meet its obligations under a game support contract or
105	105	event support contract to improve, construct, renovate, or acquire
106	106	facilities or to acquire equipment, an endorsing municipality by
107	107	ordinance or an endorsing county by order may authorize the
108	108	issuance of notes. An endorsing municipality or endorsing county
109	109	may provide that the notes be paid from and secured by amounts on
110	110	deposit or amounts to be deposited into the Major Events
111	111	reimbursement program [trust] fund or surcharges from user fees,
112	112	including parking or ticket fees, charged in connection with the
113	113	event. Any note issued must mature not later than seven years from
114	114	its date of issuance.
115	115	(h) The funds in the Major Events reimbursement program
116	116	[trust] fund may be used to pay the principal of and interest on
117	117	notes issued by an endorsing municipality or endorsing county under
118	118	Subsection (g) of this section and to fulfill obligations of the
119	119	state or an endorsing municipality or endorsing county to a site
120	120	selection organization under a game support contract or event
121	121	support contract. Subject to Subsection (k) of this section, the
122	122	obligations may include the payment of costs relating to the
123	123	preparations necessary or desirable for the conduct of the event
124	124	and the payment of costs of conducting the event, including
125	125	improvements or renovations to existing facilities or other
126	126	facilities and costs of acquisition or construction of new
127	127	facilities or other facilities.
128	128	(j) Not later than the 30th day after the date a request of a
129	129	local organizing committee, endorsing municipality, or endorsing
130	130	county is submitted to the comptroller under Subsection (b-1) of
131	131	this section, the comptroller shall provide an estimate of the
132	132	total amount of tax revenue that would be deposited in the Major
133	133	Events reimbursement program [trust] fund under this section in
134	134	connection with that event, if the event were to be held in this
135	135	state at a site selected pursuant to an application by a local
136	136	organizing committee, endorsing municipality, or endorsing
137	137	county. A local organizing committee, endorsing municipality, or
138	138	endorsing county may submit the comptroller's estimate to a site
139	139	selection organization.
140	140	(k) The comptroller may make a disbursement from the Major
141	141	Events reimbursement program [trust] fund on the prior approval of
142	142	each contributing endorsing municipality or endorsing county for a
143	143	purpose for which a local organizing committee, an endorsing
144	144	municipality, or an endorsing county or the state is obligated
145	145	under a game support contract or event support contract. If an
146	146	obligation is incurred under a games support contract or event
147	147	support contract to make a structural improvement to the site or to
148	148	add a fixture to the site for purposes of an event and that
149	149	improvement or fixture is expected to derive most of its value in
150	150	subsequent uses of the site for future events, a disbursement from
151	151	the [trust] fund made for purposes of that obligation is limited to
152	152	five percent of the cost of the improvement or fixture and the
153	153	remainder of the obligation is not eligible for a disbursement from
154	154	the [trust] fund, unless the improvement or fixture is for a
155	155	publicly owned facility. In considering whether to make a
156	156	disbursement from the [trust] fund, the comptroller may not
157	157	consider a contingency clause in an event support contract as
158	158	relieving a local organizing committee's, endorsing
159	159	municipality's, or endorsing county's obligation to pay a cost
160	160	under the contract. A disbursement may not be made from the
161	161	[trust] fund that the comptroller determines would be used for the
162	162	purpose of soliciting the relocation of a professional sports
163	163	franchise located in this state.
164	164	(l) If a disbursement is made from the Major Events
165	165	reimbursement program [trust] fund under Subsection (k), the
166	166	obligation shall be satisfied proportionately from the state and
167	167	local revenue in the [trust] fund.
168	168	(m) On payment of all state, municipal, or county
169	169	obligations under a game support contract or event support contract
170	170	related to the location of any particular event in the state, the
171	171	comptroller shall remit to each endorsing entity, in proportion to
172	172	the amount contributed by the entity, any money remaining in the
173	173	[trust] fund.
174	174	(w) Not later than 10 months after the last day of an event
175	175	eligible for disbursements from the Major Events reimbursement
176	176	program [trust] fund for costs associated with the event, the
177	177	comptroller using existing resources shall complete a study in the
178	178	market area of the event on the measurable economic impact directly
179	179	attributable to the preparation for and presentation of the event
180	180	and related activities. The comptroller shall post on the
181	181	comptroller's Internet website:
182	182	(1) the results of the study conducted under this
183	183	subsection, including any source documentation or other
184	184	information relied on by the comptroller for the study;
185	185	(2) the amount of incremental increase in tax receipts
186	186	for the event determined under Subsection (b) of this section;
187	187	(3) the site selection organization documentation
188	188	described in Subsection (p)(3) of this section;
189	189	(4) any source documentation or information described
190	190	under Subsection (i) of this section that was relied on by the
191	191	comptroller in making the determination of the amount of
192	192	incremental increase in tax receipts under Subsection (b) of this
193	193	section; and
194	194	(5) documentation verifying that:
195	195	(A) a request submitted by a local organizing
196	196	committee, endorsing municipality, or endorsing county under
197	197	Subsection (p) of this section is complete and certified as such by
198	198	the comptroller;
199	199	(B) the determination on the amount of
200	200	incremental increases in tax receipts under Subsection (b) of this
201	201	section considered the information submitted by a local organizing
202	202	committee, endorsing municipality, or endorsing county as required
203	203	under Subsection (b-1) of this section; and
204	204	(C) each deadline established under this section
205	205	was timely met.
206	206	(y) After the conclusion of an event, the comptroller shall
207	207	compare information on the actual attendance figures provided to
208	208	the comptroller under Subsection (i) of this section with the
209	209	estimated attendance numbers used to determine the incremental
210	210	increase in tax receipts under Subsection (b) of this section. If
211	211	the actual attendance figures are significantly lower than the
212	212	estimated attendance numbers, the comptroller may reduce the amount
213	213	of a disbursement for an endorsing entity under the Major Events
214	214	reimbursement program [trust] fund in proportion to the discrepancy
215	215	between the actual and estimated attendance and in proportion to
216	216	the amount contributed to the fund by the entity. The comptroller
217	217	by rule shall define "significantly lower" for purposes of this
218	218	subsection and provide the manner in which a disbursement may be
219	219	proportionately reduced. This subsection does not affect the
220	220	remittance of any money remaining in the fund in accordance with
221	221	Subsection (m) of this section.
222	222	SECTION 3. This Act takes effect immediately if it receives
223	223	a vote of two-thirds of all the members elected to each house, as
224	224	provided by Section 39, Article III, Texas Constitution. If this
225	225	Act does not receive the vote necessary for immediate effect, this
226	226	Act takes effect September 1, 2015.