84R4528 GCB-D
By: Rodriguez of Travis H.B. No. 1292
A BILL TO BE ENTITLED
AN ACT
relating to renaming the Major Events trust fund to the Major Events
Reimbursement Program.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
SECTION 1. The heading to 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 to read as
follows:
Sec. 5A. PAYMENT OF STATE AND MUNICIPAL OR COUNTY
OBLIGATIONS UNDER[;] MAJOR EVENTS REIMBURSEMENT PROGRAM [TRUST
FUND].
SECTION 2. Sections 5A(a-1), (d), (d-1), (e), (f), (g),
(h), (j), (k), (l), (m), (w), and (y), Chapter 1507 (S.B. 456), Acts
of the 76th Legislature, Regular Session, 1999 (Article 5190.14,
Vernon's Texas Civil Statutes), are amended to read as follows:
(a-1) An event not listed in Subsection (a)(4) of this
section is ineligible for funding under this section. A listed
event may receive funding through the Major Events Reimbursement
Program under this section only if:
(1) a site selection organization selects a site
located in this state for the event to be held one time or, for an
event scheduled to be held each year for a period of years under an
event contract, or an event support contract, one time each year for
the period of years, 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
(B) the sole site for the event in a region
composed of this state and one or more adjoining states;
(3) the event is held not more than one time in any
year; and
(4) the amount of the incremental increase in tax
receipts determined by the comptroller under Subsection (b) of this
section equals or exceeds $1 million, provided that for an event
scheduled to be held each year for a period of years under an event
contract or event support contract, the incremental increase in tax
receipts shall be calculated as if the event did not occur in the
prior year.
(d) Each endorsing municipality or endorsing county
participating in the Major Events Reimbursement Program shall remit
to the comptroller and the comptroller shall deposit into a trust
fund created by the comptroller and designated as the Major Events
reimbursement program [trust] fund the amount of the municipality's
or county's hotel occupancy tax revenue determined under Subsection
(b)(4) or (b)(5) of this section, less any amount of the revenue
that the municipality or county determines is necessary to meet the
obligations of the municipality or county. The comptroller shall
retain the amount of sales and use tax revenue and mixed beverage
tax revenue determined under Subsection (b)(2) or (b)(3) of this
section from the amounts otherwise required to be sent to the
municipality under Sections 321.502 and 183.051(b), Tax Code, or to
the county under Sections 323.502 and 183.051(b), Tax Code, and
deposit into the [trust] fund the tax revenues, less any amount of
the revenue that the municipality or county determines is necessary
to meet the obligations of the municipality or county. The
comptroller shall begin retaining and depositing the local tax
revenues with the first distribution of that tax revenue that
occurs after the first day of the one-year period described by
Subsection (b) of this section or at a time otherwise determined to
be practicable by the comptroller and shall discontinue retaining
the local tax revenues under this subsection when the amount of the
applicable tax revenue determined under Subsection (b)(2) or (b)(3)
of this section has been retained. The Major Events reimbursement
program [trust] fund is established outside the state treasury and
is held in trust by the comptroller for administration of this
Act. Money in the [trust] fund may be disbursed by the comptroller
without appropriation only as provided by this section.
(d-1) Not later than the 90th day after the last day of an
event eligible for funding under the Major Events Reimbursement
Program and in lieu of the local tax revenues remitted to or
retained by the comptroller under Subsection (d) of this section, a
municipality or county may remit to the comptroller for deposit in
the Major Events reimbursement program [trust] fund other local
funds in an amount equal to the total amount of local tax revenue
determined under Subsections (b)(2) through (5) of this
section. The amount deposited by the comptroller into the Major
Events reimbursement program [trust] fund under this subsection is
subject to Subsection (f) of this section.
(e) In addition to the tax revenue deposited in the Major
Events reimbursement program [trust] fund under Subsection (d) of
this section, an endorsing municipality or endorsing county may
guarantee its obligations under an event support contract and this
section by pledging surcharges from user fees, including parking or
ticket fees, charged in connection with the event. An endorsing
municipality or endorsing county may collect and remit to the
comptroller surcharges and user fees attributable to the event for
deposit into the Major Events reimbursement program [trust] fund.
(f) The comptroller shall deposit into the Major Events
reimbursement program [trust] fund a portion of the state tax
revenue not to exceed the amount determined under Subsection (b)(1)
of this section in an amount equal to 6.25 times the amount of the
local revenue retained or remitted under this section, including:
(1) local sales and use tax revenue;
(2) mixed beverage tax revenue;
(3) hotel occupancy tax revenue; and
(4) surcharge and user fee revenue.
(g) To meet its obligations under a game support contract or
event support contract to improve, construct, renovate, or acquire
facilities or to acquire equipment, an endorsing municipality by
ordinance or an endorsing county by order may authorize the
issuance of notes. An endorsing municipality or endorsing county
may provide that the notes be paid from and secured by amounts on
deposit or amounts to be deposited into the Major Events
reimbursement program [trust] fund or surcharges from user fees,
including parking or ticket fees, charged in connection with the
event. Any note issued must mature not later than seven years from
its date of issuance.
(h) The funds in the Major Events reimbursement program
[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
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
improvements or renovations to existing facilities or other
facilities and costs of acquisition or construction of new
facilities or other facilities.
(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 comptroller under Subsection (b-1) of
this section, the comptroller shall provide an estimate of the
total amount of tax revenue that would be deposited in the Major
Events reimbursement program [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 comptroller's estimate to a site
selection organization.
(k) The comptroller may make a disbursement from the Major
Events reimbursement program [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 games 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, unless the improvement or fixture is for a
publicly owned facility. In considering whether to make a
disbursement from the [trust] fund, the comptroller may not
consider a contingency clause in an event support contract as
relieving a local organizing committee's, endorsing
municipality's, or endorsing county's obligation to pay a cost
under the contract. 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.
(l) If a disbursement is made from the Major Events
reimbursement program [trust] fund under Subsection (k), the
obligation shall be satisfied proportionately from the state and
local revenue in the [trust] fund.
(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, any money remaining in the
[trust] fund.
(w) Not later than 10 months after the last day of an event
eligible for disbursements from the Major Events reimbursement
program [trust] fund for costs associated with the event, the
comptroller using existing resources shall 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 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 comptroller 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)(3) of this section;
(4) any source documentation or information described
under Subsection (i) of this section that was relied on by the
comptroller in making the determination of the amount of
incremental increase in tax receipts under Subsection (b) of this
section; and
(5) documentation verifying that:
(A) a request submitted by a local organizing
committee, endorsing municipality, or endorsing county under
Subsection (p) of this section is complete and certified as such by
the comptroller;
(B) the determination on the amount of
incremental increases in tax receipts under Subsection (b) of this
section considered the information submitted by a local organizing
committee, endorsing municipality, or endorsing county as required
under Subsection (b-1) of this section; and
(C) each deadline established under this section
was timely met.
(y) After the conclusion of an event, the comptroller shall
compare information on the actual attendance figures provided to
the comptroller under Subsection (i) of this section with the
estimated attendance numbers used to determine the incremental
increase in tax receipts under Subsection (b) of this section. If
the actual attendance figures are significantly lower than the
estimated attendance numbers, the comptroller may reduce the amount
of a disbursement for an endorsing entity under the Major Events
reimbursement program [trust] fund in proportion to the discrepancy
between the actual and estimated attendance and in proportion to
the amount contributed to the fund by the entity. The comptroller
by rule shall define "significantly lower" for purposes of this
subsection and provide the manner in which a disbursement may be
proportionately reduced. This subsection does not affect the
remittance of any money remaining in the fund in accordance with
Subsection (m) of this section.
SECTION 3. 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, 2015.