H.B. No. 26
AN ACT
relating to state economic development measures, including
administration of the Texas Enterprise Fund, creation of the
Economic Incentive Oversight Board and the governor's university
research initiative, abolishment of the Texas emerging technology
fund, and renaming the Major Events trust fund to the Major Events
Reimbursement Program.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
ARTICLE 1. GOVERNOR'S UNIVERSITY RESEARCH INITIATIVE; ABOLISHMENT
OF TEXAS EMERGING TECHNOLOGY FUND
SECTION 1.01. Chapter 62, Education Code, is amended by
adding Subchapter H to read as follows:
SUBCHAPTER H. GOVERNOR'S UNIVERSITY RESEARCH INITIATIVE
Sec. 62.161. DEFINITIONS. In this subchapter:
(1) "Distinguished researcher" means a researcher who
is:
(A) a Nobel laureate; or
(B) a member of the National Academy of Sciences,
the National Academy of Engineering, or the National Academy of
Medicine, formerly known as the Institute of Medicine.
(2) "Eligible institution" means a general academic
teaching institution or medical and dental unit.
(3) "Fund" means the governor's university research
initiative fund established under this subchapter.
(4) "General academic teaching institution" has the
meaning assigned by Section 61.003.
(5) "Medical and dental unit" has the meaning assigned
by Section 61.003.
(6) "Office" means the Texas Economic Development and
Tourism Office within the office of the governor.
(7) "Private or independent institution of higher
education" has the meaning assigned by Section 61.003.
Sec. 62.162. ADMINISTRATION OF INITIATIVE. (a) The
governor's university research initiative is administered by the
Texas Economic Development and Tourism Office within the office of
the governor.
(b) The office may adopt any rules the office considers
necessary to administer this subchapter.
Sec. 62.163. MATCHING GRANTS TO RECRUIT DISTINGUISHED
RESEARCHERS. (a) From the governor's university research
initiative fund, the office shall award matching grants to assist
eligible institutions in recruiting distinguished researchers.
(b) An eligible institution may apply to the office for a
matching grant from the fund. If the office approves a grant
application, the office shall award to the applicant institution a
grant amount equal to the amount committed by the institution for
the recruitment of a distinguished researcher.
(c) A grant application must identify the source and amount
of the eligible institution's matching funds and must demonstrate
that the proposed use of the grant has the support of the
institution's president and of the institution's governing board,
the chair of the institution's governing board, or the chancellor
of the university system, if the institution is a component of a
university system. An applicant eligible institution may commit
for matching purposes any funds of the institution available for
that purpose other than appropriated general revenue.
(d) A matching grant may not be used by an eligible
institution to recruit a distinguished researcher from:
(1) another eligible institution; or
(2) a private or independent institution of higher
education.
Sec. 62.164. GRANT AWARD CRITERIA; PRIORITIES. (a) In
awarding grants, the office shall give priority to grant proposals
that involve the recruitment of distinguished researchers in the
fields of science, technology, engineering, mathematics, and
medicine. With respect to proposals involving those fields, the
office shall give priority to proposals that demonstrate a
reasonable likelihood of contributing substantially to this
state's national and global economic competitiveness.
(b) A grant proposal should identify a specific
distinguished researcher being recruited.
Sec. 62.165. GOVERNOR'S UNIVERSITY RESEARCH INITIATIVE
FUND. (a) The governor's university research initiative fund is a
dedicated account in the general revenue fund.
(b) The fund consists of:
(1) amounts appropriated or otherwise allocated or
transferred by law to the fund;
(2) money deposited to the fund under Section 62.166
of this subchapter or under Section 490.101(b-1), Government Code;
and
(3) gifts, grants, and other donations received for
the fund.
(c) The fund may be used by the office only for the purposes
of this subchapter, including for necessary expenses incurred in
the administration of the fund and this subchapter.
Sec. 62.166. WINDING UP OF CONTRACTS AND AWARDS IN
CONNECTION WITH TEXAS EMERGING TECHNOLOGY FUND. (a) The
governor's university research initiative is the successor to the
Texas emerging technology fund. Awards from the Texas emerging
technology fund shall be wound up in accordance with this section
and Section 490.104, Government Code, and contracts governing
awards from that fund shall be wound up in accordance with this
section.
(b) If a contract governing an award from the Texas emerging
technology fund provides for the distribution of royalties,
revenue, or other financial benefits to the state, including
royalties, revenue, or other financial benefits realized from the
commercialization of intellectual or real property developed from
an award from the fund, those royalties, revenues, or other
financial benefits shall continue to be distributed in accordance
with the terms of the contract unless the award recipient and the
governor agree otherwise. Unless otherwise required by law,
royalties, revenue, or other financial benefits accruing to the
state under a contract described by this subsection, including any
money returned or repaid to the state by an award recipient, shall
be credited to the governor's university research initiative fund.
(c) If money awarded from the Texas emerging technology fund
is encumbered by a contract executed before September 1, 2015, but
has not been distributed before that date, the money shall be
distributed from the governor's university research initiative
fund in accordance with the terms of the contract, unless the award
recipient and the governor agree otherwise.
(d) Except for an obligation regarding the distribution of
royalties, revenue, or other financial benefits to the state as
provided by Subsection (b), if money awarded from the Texas
emerging technology fund under a contract executed before September
1, 2015, has been fully distributed and the entity that received the
award has fully performed all specific actions under the terms of
the contract governing the award, the entity is considered to have
fully satisfied the entity's obligations under the contract. The
entity shall file with the office a final report showing the
purposes for which the award money has been spent and, if award
money remains unspent, the purposes for which the recipient will
spend the remaining money.
Sec. 62.167. CONFIDENTIALITY OF INFORMATION CONCERNING
AWARDS FROM TEXAS EMERGING TECHNOLOGY FUND. (a) Except as
provided by Subsection (b), information collected under former
provisions of Chapter 490, Government Code, concerning the
identity, background, finance, marketing plans, trade secrets, or
other commercially or academically sensitive information of an
individual or entity that was considered for or received an award
from the Texas emerging technology fund is confidential unless the
individual or entity consents to disclosure of the information.
(b) The following information collected in connection with
the Texas emerging technology fund is public information and may be
disclosed under Chapter 552, Government Code:
(1) the name and address of an individual or entity
that received an award from that fund;
(2) the amount of funding received by an award
recipient;
(3) a brief description of the project funded under
former provisions of Chapter 490, Government Code;
(4) if applicable, a brief description of the equity
position that the governor, on behalf of the state, has taken in an
entity that received an award from that fund; and
(5) any other information with the consent of:
(A) the governor;
(B) the lieutenant governor;
(C) the speaker of the house of representatives;
and
(D) the individual or entity that received an
award from that fund, if the information relates to that individual
or entity.
Sec. 62.168. REPORTING REQUIREMENT. (a) Before the
beginning of each regular session of the legislature the governor
shall submit to the lieutenant governor, the speaker of the house of
representatives, and the standing committees of each house of the
legislature with primary jurisdiction over economic development
and higher education matters and post on the office of the
governor's Internet website a report on matching grants made to
eligible institutions from the fund that states:
(1) the total amount of matching funds granted by the
office;
(2) the total amount of matching funds granted to each
recipient institution;
(3) a brief description of each distinguished
researcher recruited by each recipient institution, including any
amount of external research funding that followed the distinguished
researcher to the institution;
(4) a brief description of the expenditures made from
the matching grant funds for each distinguished researcher; and
(5) when available, a brief description of each
distinguished researcher's contribution to the state's economic
competitiveness, including:
(A) any patents issued to the distinguished
researcher after accepting employment by the recipient
institution; and
(B) any external research funding, public or
private, obtained by the distinguished researcher after accepting
employment by the recipient institution.
(a-1) The report may not include information that is made
confidential by law.
(b) The governor may require an eligible institution that
receives a matching grant under this subchapter to submit, on a form
the governor provides, information required to complete the report.
SECTION 1.02. Subchapter C, Chapter 490, Government Code,
is amended by adding Section 490.104 to read as follows:
Sec. 490.104. MANAGEMENT OF INVESTMENT PORTFOLIO; WINDING
UP AND FINAL LIQUIDATION. (a) In this section, "state's emerging
technology investment portfolio" means:
(1) the equity positions in the form of stock or other
security the governor took, on behalf of the state, in companies
that received awards under the Texas emerging technology fund; and
(2) any other investments made by the governor, on
behalf of the state, and associated assets in connection with an
award made under the Texas emerging technology fund.
(b) The Texas Treasury Safekeeping Trust Company shall
manage and wind up the state's emerging technology investment
portfolio. The trust company shall wind up the portfolio in a
manner that, to the extent feasible, provides for the maximum
return on the state's investment. In managing those investments
and associated assets through procedures and subject to
restrictions that the trust company considers appropriate, the
trust company may acquire, exchange, sell, supervise, manage, or
retain any kind of investment or associated assets that a prudent
investor, exercising reasonable care, skill, and caution, would
acquire or retain in light of the purposes, terms, distribution
requirements, and other circumstances then prevailing pertinent to
each investment or associated asset. The trust company may recover
its reasonable and necessary costs incurred in the management of
the portfolio from the earnings on the investments and associated
assets in the portfolio.
(c) Any realized proceeds or other earnings from the sale of
stock or other investments or associated assets in the state's
emerging technology investment portfolio, less the amount
permitted to be retained for payment of its costs for managing the
portfolio as provided by Subsection (b), shall be remitted by the
Texas Treasury Safekeeping Trust Company to the comptroller for
deposit in the general revenue fund.
(d) The Texas Treasury Safekeeping Trust Company has any
power necessary to accomplish the purposes of this section.
(e) On final liquidation of the state's emerging technology
investment portfolio, the Texas Treasury Safekeeping Trust Company
shall promptly notify the comptroller of that occurrence. As soon
as practicable after receiving that notice, the comptroller shall
verify that the final liquidation has been completed and, if the
comptroller so verifies, shall certify to the governor that the
final liquidation of the portfolio has been completed. The governor
shall post notice of the certification on the office of the
governor's Internet website.
(f) Any balance remaining in the Texas emerging technology
fund on final liquidation by the Texas Treasury Safekeeping Trust
Company shall be remitted to the comptroller for deposit in the
general revenue fund.
SECTION 1.03. Section 490.101, Government Code, is amended
by adding Subsections (b-1) and (b-2) to read as follows:
(b-1) Notwithstanding Subsection (b), benefits realized
from a project undertaken with money from the fund, as provided by a
contract entered into under former Section 490.103 before September
1, 2015, shall be deposited to the credit of the governor's
university research initiative fund established under Subchapter
H, Chapter 62, Education Code.
(b-2) The fund may be used only for the purposes described
by Section 490.104.
SECTION 1.04. (a) The following laws are repealed:
(1) Sections 490.101(c), (d), (e), (f), (f-1), (g),
(h), and (i), Government Code;
(2) Sections 490.102 and 490.103, Government Code; and
(3) Subchapters A, B, D, E, F, and G, Chapter 490,
Government Code.
(b) The Texas emerging technology fund is continued solely
for the purposes of winding up the contracts governing awards from
that fund and the state's portfolio of equity positions and other
investments and associated assets in connection with awards from
that fund in accordance with Section 490.104, Government Code, as
added by this Act. The Texas emerging technology fund is abolished
and Sections 490.101(a), (b), (b-1), and (b-2), Government Code,
are repealed when the comptroller certifies to the governor as
provided by Section 490.104, Government Code, as added by this Act,
that the final liquidation of the state's portfolio of equity
positions and other investments and associated assets by the Texas
Treasury Safekeeping Trust Company has been completed. On the
effective date of this Act, any unencumbered fund balance in the
Texas emerging technology fund may be appropriated in accordance
with Subsection (e) of this section.
(c) The abolishment by this Act of the Texas emerging
technology fund and the repeal of provisions of Chapter 490,
Government Code, relating to that fund do not affect the validity of
an agreement between the governor and the recipient of an award
awarded under Chapter 490, or a person to be awarded money under
that chapter, that is executed before September 1, 2015. Those
agreements shall be performed as provided by Section 62.166,
Education Code, as added by this Act.
(d) A regional center of innovation and commercialization
established under Section 490.152, Government Code, is abolished on
the effective date of this Act. Each center shall transfer to the
office of the governor a copy of any meeting minutes required to be
retained under Section 490.1521, Government Code, as that section
existed immediately before that section's repeal by this Act, and
the office shall retain the minutes for the period prescribed by
that section.
(e) Any unencumbered balance of the Texas emerging
technology fund may be appropriated only to one or more of the
following:
(1) the Texas Research Incentive Program (TRIP) under
Subchapter F, Chapter 62, Education Code;
(2) the Texas research university fund, subject to
Subsection (f) of this section;
(3) the governor's university research initiative fund
established under Subchapter H, Chapter 62, Education Code, as
added by this Act;
(4) the Texas Enterprise Fund established under
Section 481.078, Government Code; and
(5) the comptroller for the purposes of expenses
incurred in managing the state's portfolio of equity positions and
other investments in connection with awards from the Texas emerging
technology fund in accordance with Section 490.104, Government
Code, as added by this Act.
(f) The authority of the Texas research university fund to
receive the appropriation described by Subsection (e) of this
section is contingent on passage and enactment of H.B. 1000, or
similar legislation relating to state support for general academic
teaching institutions in this state by the 84th Legislature,
Regular Session, 2015, that renames the existing Texas competitive
knowledge fund and changes the purposes for which the fund can be
used.
(f-1) On the effective date of this Act, the comptroller of
public accounts shall transfer the encumbered balance of the Texas
emerging technology fund to the credit of the governor's university
research initiative fund established under Subchapter H, Chapter
62, Education Code, as added by this Act, for the purposes of
Section 62.166, Education Code, as added by this Act.
(g) Except as provided by this Act, on September 1, 2015,
the following powers, duties, functions, and activities performed
by the office of the governor immediately before that date are
transferred to the Texas Treasury Safekeeping Trust Company:
(1) all powers, duties, functions, and activities
related to equity positions in the form of stock or other security
the governor has taken, on behalf of the state, in companies that
received awards under the Texas emerging technology fund before
September 1, 2015; and
(2) all powers, duties, functions, and activities
related to other investments made by the governor, on behalf of the
state, and associated assets in connection with an award made under
the Texas emerging technology fund before September 1, 2015.
(h) Notwithstanding the repeal by this Act of provisions of
Chapter 490, Government Code, those provisions of Chapter 490 are
continued in effect for the limited purpose of winding up contracts
governing awards from the Texas emerging technology fund in
accordance with Section 62.166, Education Code, as added by this
Act, and of winding up the state's portfolio of equity positions and
other investments and associated assets in connection with awards
from that fund in accordance with Section 490.104, Government Code,
as added by this Act.
ARTICLE 2. ECONOMIC INCENTIVE OVERSIGHT BOARD
SECTION 2.01. Subtitle F, Title 4, Government Code, is
amended by adding Chapter 490G to read as follows:
CHAPTER 490G. ECONOMIC INCENTIVE OVERSIGHT BOARD
Sec. 490G.001. DEFINITIONS. In this chapter:
(1) "Board" means the Economic Incentive Oversight
Board.
(2) "Monetary incentive" means a grant, loan, or other
form of monetary incentive paid from state revenues, including a
state trust fund, that a business entity or other person may receive
in exchange for or as a result of conducting an activity with an
economic development purpose.
(2-a) "Rural county" means a county with a population
of less than 60,000.
(3) "Tax incentive" means any exemption, deduction,
credit, exclusion, waiver, rebate, discount, deferral, or other
abatement or reduction of state tax liability of a business entity
or other person that the person may receive in exchange for or as a
result of conducting an activity with an economic development
purpose.
Sec. 490G.002. ESTABLISHMENT AND COMPOSITION. (a) The
Economic Incentive Oversight Board is an advisory body composed of
nine members as follows:
(1) two public members appointed by the speaker of the
house of representatives, one of whom must be from a rural county;
(2) two public members appointed by the lieutenant
governor, one of whom must be from a rural county;
(3) two public members appointed by the comptroller;
and
(4) three public members appointed by the governor.
(b) In appointing members of the board, each appointing
officer shall appoint one member who has expertise in the area of
economic development.
(c) A member of the board serves at the pleasure of the
appointing officer.
(d) The board members are entitled to reimbursement for
actual and necessary expenses incurred by the members in serving on
the board as provided by Chapter 660 and the General Appropriations
Act.
(e) The office of the governor shall provide administrative
support and staff to the board.
Sec. 490G.003. PRESIDING OFFICER. The governor shall
appoint the presiding officer of the board.
Sec. 490G.004. MEETINGS. (a) The board shall meet at least
annually at the call of the presiding officer.
(b) The board may hold a meeting by telephone conference
call or videoconference.
(c) A board meeting held under Subsection (b) is subject to
the requirements of Subchapter F, Chapter 551, Government Code,
except that a quorum of the board is not required to be physically
present at one location of the meeting.
Sec. 490G.005. REVIEW OF CERTAIN STATE INCENTIVE PROGRAMS;
PERFORMANCE MATRIX. (a) The board shall examine the effectiveness
and efficiency of programs and funds administered by the office of
the governor, the comptroller, or the Department of Agriculture
that award to business entities and other persons state monetary or
tax incentives for which the governor, comptroller, or department
has discretion in determining whether or not to award the
incentives.
(b) The board shall develop a performance matrix that
clearly establishes the economic performance indicators, measures,
and metrics that will guide the board's evaluations of those
programs and funds.
Sec. 490G.006. SCHEDULE OF REVIEW; RECOMMENDATION TO
LEGISLATIVE AUDIT COMMITTEE. (a) The board shall develop a
schedule for the periodic review of each state incentive program or
fund described by Section 490G.005 for the purposes of making
recommendations on whether to continue the program or fund or
whether to improve program or fund effectiveness and efficiency.
The board shall review and make recommendations to the legislature
regarding each program or fund according to the review schedule.
(b) After conducting a review of a state incentive program
or fund under this chapter, the board may recommend to the
legislative audit committee that an audit of the program or fund be
included in the audit plan under Section 321.013.
Sec. 490G.007. BIENNIAL REPORT. Not later than January 1 of
each odd-numbered year, the board shall submit to the lieutenant
governor, the speaker of the house of representatives, and each
standing committee of the senate and house of representatives with
primary jurisdiction over economic development a report containing
findings and recommendations resulting from each review of state
incentive programs and funds conducted by the board under this
chapter during the preceding two calendar years.
Sec. 490G.008. CONFLICTS OF INTEREST. (a) A member of the
board who has a substantial interest in a business entity or other
person that previously applied for or received a state monetary or
tax incentive from a program or fund subject to review by the board
shall disclose that interest in writing to the board.
(b) A board member who has a business, commercial, or other
relationship, other than an interest described by Subsection (a),
that could reasonably be expected to diminish the person's
independence of judgment in the performance of the person's
responsibilities in relation to the board shall disclose the
relationship in writing to the board.
Sec. 490G.009. CONFIDENTIALITY OF INFORMATION. The
provision of information that is confidential by law to the board
does not affect the confidentiality of the information.
SECTION 2.02. As soon as practicable after the effective
date of this Act, the appointing officials shall appoint members to
the Economic Incentive Oversight Board established under Chapter
490G, Government Code, as added by this article.
ARTICLE 3. TEXAS ENTERPRISE FUND
SECTION 3.01. Section 481.078(e), Government Code, is
amended to read as follows:
(e) The administration of the fund is considered to be a
trusteed program within the office of the governor. The governor
may negotiate on behalf of the state regarding awarding, by grant,
money appropriated from the fund. The governor may award money
appropriated from the fund only with the prior approval of the
lieutenant governor and speaker of the house of
representatives. For purposes of this subsection, an award of
money appropriated from the fund is considered disapproved by the
lieutenant governor or speaker of the house of representatives if
that officer does not approve the proposal to award the grant before
the 31st [91st] day after the date of receipt of the proposal from
the governor. The lieutenant governor or the speaker of the house
of representatives may extend the review deadline applicable to
that officer for an additional 14 days by submitting a written
notice to that effect to the governor before the expiration of the
initial review period.
ARTICLE 4. RENAMING OF MAJOR EVENTS TRUST FUND
SECTION 4.01. 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 4.02. 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 the prevailing state sales tax
rate [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.
ARTICLE 5. EFFECTIVE DATE
SECTION 5.01. This Act takes effect September 1, 2015.
______________________________ ______________________________
President of the Senate Speaker of the House
I certify that H.B. No. 26 was passed by the House on May 1,
2015, by the following vote: Yeas 136, Nays 1, 2 present, not
voting; that the House refused to concur in Senate amendments to
H.B. No. 26 on May 28, 2015, and requested the appointment of a
conference committee to consider the differences between the two
houses; and that the House adopted the conference committee report
on H.B. No. 26 on May 31, 2015, by the following vote: Yeas 132,
Nays 7, 2 present, not voting.
______________________________
Chief Clerk of the House
I certify that H.B. No. 26 was passed by the Senate, with
amendments, on May 26, 2015, by the following vote: Yeas 31, Nays
0; at the request of the House, the Senate appointed a conference
committee to consider the differences between the two houses; and
that the Senate adopted the conference committee report on H.B. No.
26 on May 31, 2015, by the following vote: Yeas 30, Nays 1.
______________________________
Secretary of the Senate
APPROVED: __________________
Date
__________________
Governor