84R10773 DDT-F
By: Isaac H.B. No. 3613
A BILL TO BE ENTITLED
AN ACT
relating to a Pan American Games trust fund, an Olympic Games trust
fund, a Major Events trust fund, a Motor Sports Racing trust fund,
an Events trust fund for sporting and non-sporting events, and a
Special Event trust fund.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
SECTION 1. Sections 4(b), (c), (d), (f), (h), (j), and (k),
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:
(b) If a site selection organization selects a site for the
games in this state pursuant to an application by a local organizing
committee acting on behalf of an endorsing municipality, after the
first occurrence of a measurable economic impact in this state as a
result of the preparation for the games, as determined by the
department [comptroller], but in no event later than one year
before the scheduled opening event of the games, the department
[comptroller] shall determine for each subsequent calendar
quarter, in accordance with procedures developed by the department
[comptroller]:
(1) the incremental increase in the receipts to the
state from the 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 department
[comptroller], to the preparation for and presentation of the games
and related events;
(2) the incremental increase in the receipts collected
by the state on behalf of the endorsing municipality from the sales
and use tax imposed by the endorsing municipality under Section
321.101(a), Tax Code, that is directly attributable, as determined
by the department [comptroller], to the preparation for and
presentation of the games and related events; and
(3) the incremental increase in the receipts collected
by the endorsing municipality from the municipality's hotel
occupancy tax imposed under Chapter 351, Tax Code, that is directly
attributable, as determined by the department [comptroller], to the
preparation for and presentation of the games and related events.
(c) For the purposes of Subsection (b)(1) of this section,
the department [comptroller] shall designate as a market area for
the games each area in which the department [comptroller]
determines there is a reasonable likelihood of measurable economic
impact directly attributable to the preparation for and
presentation of the games and related events, including areas
likely to provide venues, accommodations, and services in
connection with the games based on the proposal provided by the
local organizing committee under Section 7 of this Act. The
department [comptroller] shall determine the geographic boundaries
of each market area. The endorsing municipality that has been
selected as the site for the games must be included in a market area
for the games.
(d) The comptroller, at the direction of the department,
shall retain, for the purpose of guaranteeing the joint obligations
of the state and the endorsing municipality under a games support
contract and this Act, the amount of municipal sales and use tax
revenue determined under Subsection (b)(2) of this section from the
amounts otherwise required to be sent to the municipality under
Section 321.502, Tax Code, beginning with the first distribution of
that tax revenue that occurs after the date the department
[comptroller] makes the determination of the amount of municipal
sales and use tax revenue under Subsection (b)(2). The comptroller
shall discontinue retaining municipal sales and use tax revenue
under this subsection on the earlier of:
(1) the end of the third calendar month following the
month in which the closing event of the games occurs; or
(2) the date the amount of municipal sales and use tax
revenue and municipal hotel occupancy tax revenue in the Pan
American Games trust fund equals 14 percent of the maximum amount of
state and municipal tax revenue that may be deposited in the trust
fund under Subsection (m) of this section.
(f) Subject to Subsection (m) of this section, the
comptroller shall deposit into a trust fund designated as the Pan
American Games trust fund the amount of municipal sales and use tax
revenue retained under Subsection (d) of this section and, at the
same time, a portion of the state tax revenue determined by the
department under Subsection (b)(1) of this section in an amount
equal to 6.25 times the amount of that municipal sales and use tax
revenue. Subject to Subsection (m) of this section, the endorsing
municipality shall deposit into the trust fund the amount of the
endorsing municipality's hotel occupancy tax revenue determined by
the department under Subsection (b)(3) of this section. The
endorsing municipality shall deposit that hotel occupancy tax
revenue into the trust fund at least quarterly. When the endorsing
municipality makes a deposit of its hotel occupancy tax revenue,
the comptroller, at the direction of the department, shall deposit
at the same time a portion of the state tax revenue determined under
Subsection (b)(1) of this section in an amount equal to 6.25 times
the amount of that municipal hotel occupancy tax revenue. The Pan
American Games trust fund is established outside the treasury but
is held in trust by the comptroller for the administration of this
Act. Money in the trust fund may be spent by the department without
appropriation only as provided by this Act. The comptroller shall
discontinue depositing into the trust fund any state tax revenue
determined by the department under Subsection (b)(1) of this
section on the earlier of:
(1) the end of the third calendar month following the
month in which the closing event of the games occurs; or
(2) the date on which the amount of state revenue in
the Pan American Games trust fund equals 86 percent of the maximum
amount of state and municipal tax revenue that may be deposited in
the trust fund under Subsection (m) of this section.
(h) A local organizing committee shall provide information
required by the department [comptroller] to enable the department
[comptroller] to fulfill the department's [comptroller's] duties
under this Act, including annual audited statements of the local
organizing committee's financial records required by a site
selection organization and data obtained by the local organizing
committee relating to attendance at the games and to the economic
impact of the games. A local organizing committee must provide an
annual audited financial statement required by the department
[comptroller] not later than the end of the fourth month after the
date the period covered by the financial statement ends.
(j) The department may not make a disbursement from the Pan
American Games trust fund unless the department [comptroller]
certifies that the disbursement is for a purpose for which the state
and the endorsing municipality are jointly obligated under a games
support contract or other agreement described by Subsection (g) of
this section.
(k) If the department [comptroller] certifies under
Subsection (j) of this section that a disbursement may be made from
the Pan American Games trust fund, the obligation shall be
satisfied first out of municipal revenue deposited in the trust
fund and any interest earned on that municipal revenue. If the
municipal revenue is not sufficient to satisfy the entire deficit,
state revenue deposited into the trust fund and any interest earned
on that state revenue shall be used to satisfy the portion of the
deficit not covered by the municipal revenue.
SECTION 2. Sections 4(i) and (l), Chapter 1507 (S.B. 456),
Acts of the 76th Legislature, Regular Session, 1999 (Article
5190.14, Vernon's Texas Civil Statutes), as amended by Chapters 579
(H.B. 1675) and 814 (S.B. 275), Acts of the 78th Legislature, 2003,
are reenacted and amended to read as follows:
(i) The department [comptroller] shall provide an estimate
not later than September [December] 1 [, 2003,] of the year that is
eight years before the year in which the games would be held in this
state of the total amount of state and municipal tax revenue that
would be deposited in the Pan American Games trust fund before
January 1 [, 2012,] of the year following the year in which the
games would be held, if the games were to be held in this state at a
site selected pursuant to an application by a local organizing
committee. The department [comptroller] shall provide the estimate
on request to a local organizing committee. A local organizing
committee may submit the department's [comptroller's] estimate to a
site selection organization.
(l) On January 1 [, 2013,] of the second year following the
year in which the games are held in this state, the comptroller, at
the direction of the department, shall transfer to the general
revenue fund any money remaining in the Pan American Games trust
fund, not to exceed the amount of state revenue remaining in the
trust fund, plus any interest earned on that state revenue. The
comptroller shall remit to the endorsing municipality any money
remaining in the trust fund after the required amount is
transferred to the general revenue fund.
SECTION 3. Sections 5(b), (c), (d), (f), (h), (i), (j), (k),
and (l), 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:
(b) If a site selection organization selects a site for the
games in this state pursuant to an application by a local organizing
committee, after the first occurrence of a measurable economic
impact in this state as a result of the preparation for the games,
as determined by the department [comptroller], but in no event
later than one year before the scheduled opening event of the games,
the department [comptroller] shall determine for each subsequent
calendar quarter, in accordance with procedures developed by the
department [comptroller]:
(1) the incremental increase in the receipts to the
state from the 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 department
[comptroller], to the preparation for and presentation of the games
and related events;
(2) the incremental increase in the receipts collected
by the state on behalf of each endorsing municipality from the sales
and use tax imposed by the endorsing municipality under Section
321.101(a), Tax Code, and the mixed beverage tax revenue to be
received by the endorsing municipality under Section 183.051(b),
Tax Code, that is directly attributable, as determined by the
department [comptroller], to the preparation for and presentation
of the games and related events;
(3) the incremental increase in the receipts collected
by the state on behalf of each endorsing county from the sales and
use tax imposed by the county under Section 323.101(a), Tax Code,
and the mixed beverage tax revenue to be received by the endorsing
county under Section 183.051(b), Tax Code, that is directly
attributable, as determined by the department [comptroller], to the
preparation for and presentation of the games and related events;
(4) the incremental increase in the receipts collected
by each endorsing municipality from the hotel occupancy tax imposed
under Chapter 351, Tax Code, that is directly attributable, as
determined by the department [comptroller], to the preparation for
and presentation of the games and related events; and
(5) the incremental increase in the receipts collected
by each endorsing county from the hotel occupancy tax imposed under
Chapter 352, Tax Code, that is directly attributable, as determined
by the department [comptroller], to the preparation for and
presentation of the games and related events.
(c) For the purposes of Subsection (b)(1) of this section,
the department [comptroller] shall designate as a market area for
the games each area in which the department [comptroller]
determines there is a reasonable likelihood of measurable economic
impact directly attributable to the preparation for and
presentation of the games and related events, including areas
likely to provide venues, accommodations, and services in
connection with the games based on the proposal provided by the
local organizing committee under Section 7 of this Act. The
department [comptroller] shall determine the geographic boundaries
of each market area. Each endorsing municipality or endorsing
county that has been selected as the site for the games must be
included in a market area for the games.
(d) Subject to Section 6 of this Act, the comptroller, at
the direction of the department, shall retain, for the purpose of
guaranteeing the joint obligations of the state and an endorsing
municipality or endorsing county under a games support contract and
this Act, 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 Section 183.051(b) or 321.502, Tax Code, or to
the county under Section 183.051(b) or 323.502, Tax Code, beginning
with the first distribution of that tax revenue that occurs after
the date the department [comptroller] makes the determination of
the amount of sales and use tax revenue and mixed beverage tax
revenue under Subsection (b)(2) or (b)(3) of this section. The
comptroller shall discontinue retaining sales and use tax revenue
and mixed beverage tax revenue under this subsection on the earlier
of:
(1) the end of the third calendar month following the
month in which the closing event of the games occurs; or
(2) the date the amount of local sales and use tax
revenue and mixed beverage tax revenue in the Olympic Games trust
fund equals 14 percent of the maximum amount of state and local tax
revenue that may be deposited in the trust fund under Subsection (m)
of this section.
(f) Subject to Subsection (m) of this section, each
endorsing municipality or endorsing county shall remit to the
comptroller and the comptroller shall deposit into a trust fund
designated as the Olympic Games trust fund, on a quarterly basis,
the amount of the municipality's or county's hotel occupancy tax
revenue determined by the department under Subsection (b)(4) or
(b)(5) of this section, as applicable. Subject to Section 6 of this
Act and Subsection (m) of this section, the comptroller, at the
direction of the department, shall deposit into the trust fund the
amount of sales and use tax revenue and mixed beverage tax revenue
retained under Subsection (d) of this section for the same calendar
quarter and, at the same time, the state tax revenue determined by
the department under Subsection (b)(1) of this section for the
quarter. The Olympic Games trust fund is established outside the
treasury but is held in trust by the comptroller for the
administration of this Act. Money in the trust fund may be spent by
the department without appropriation only as provided by this Act.
The comptroller shall discontinue deposit of the amount of state
tax revenue determined by the department under Subsection (b)(1) of
this section on the earlier of:
(1) the end of the third calendar month following the
month in which the closing event of the games occurs; or
(2) the date the amount of state revenue in the Olympic
Games trust fund equals 86 percent of the maximum amount of state,
municipal, and county tax revenue that may be deposited in the trust
fund under Subsection (m) of this section.
(h) A local organizing committee shall provide information
required by the department [comptroller] to enable the department
[comptroller] to fulfill the department's [comptroller's] duties
under this Act, including annual audited statements of the local
organizing committee's financial records required by a site
selection organization and data obtained by the local organizing
committee relating to attendance at the games and to the economic
impact of the games. A local organizing committee must provide an
annual audited financial statement required by the department
[comptroller] not later than the end of the fourth month after the
date the period covered by the financial statement ends.
(i) The department [comptroller] shall provide an estimate
before August 31 of the year that is 12 years before the year in
which the games would be held in this state, or as soon as practical
after that date, of the total amount of state, municipal, and county
tax revenue that would be deposited in the Olympic Games trust fund
if the games were to be held in this state at a site selected
pursuant to an application by a local organizing committee. The
department [comptroller] shall provide the estimate on request to a
local organizing committee. A local organizing committee may
submit the department's [comptroller's] estimate to a site
selection organization.
(j) The department may not make a disbursement from the
Olympic Games trust fund unless the department [comptroller]
certifies that the disbursement is for a purpose for which the state
and each endorsing municipality or endorsing county are jointly
obligated under a games support contract or other agreement
described by Subsection (g) of this section. A disbursement may not
be made from the trust fund that the department determines would be
used for the purpose of soliciting the relocation of a professional
sports franchise located in this state.
(k) If the department [comptroller] certifies under
Subsection (j) of this section that a disbursement may be made from
the Olympic Games trust fund, the obligation shall be satisfied
proportionately from the state and municipal or county revenue in
the trust fund.
(l) Two years after the closing event of the games, the
comptroller, at the direction of the department, shall transfer to
the general revenue fund any money remaining in the Olympic Games
trust fund, not to exceed the amount of state revenue remaining in
the trust fund, plus any interest earned on that state revenue. The
comptroller shall remit to each endorsing entity in proportion to
the amount contributed by the entity any money remaining in the
trust fund after the required amount is transferred to the general
revenue fund.
SECTION 4. Sections 5A(a)(1) and (2), 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:
(1) "Endorsing county" means:
(A) a county that contains a site selected by a
site selection organization for one or more events; or
(B) a county that:
(i) does not contain a site selected by a
site selection organization for an event;
(ii) is included in the market area for the
event as designated by the department [comptroller]; and
(iii) is a party to an event support
contract.
(2) "Endorsing municipality" means:
(A) a municipality that contains a site selected
by a site selection organization for one or more events; or
(B) a municipality that:
(i) does not contain a site selected by a
site selection organization for an event;
(ii) is included in the market area for the
event as designated by the department [comptroller]; and
(iii) is a party to an event support
contract.
SECTION 5. Sections 5A(a-1), (a-2), (b), (b-1), (c), (d),
(d-1), (f), (i), (j), (k), (m), (p), (v), (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 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 department [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.
(a-2) Subsection (a-1)(1) of this section does not apply to
an event that is the largest event held each year at a sports
entertainment venue in this state with a permanent seating
capacity, including grandstand and premium seating, of not less
than 125,000. If an endorsing municipality or endorsing county
requests the department [comptroller] to make a determination under
Subsection (b) of this section for an event described by this
subsection, the provisions of this section apply to that event as if
it satisfied the eligibility requirements for an event under
Subsection (a-1)(1) of this section.
(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 department [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 department [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 department
[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 department [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
department [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 department [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 department [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 department [comptroller] not
earlier than one year and not later than 45 days before the date the
event begins. The department [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 department
[comptroller] receives the request and related information.
(c) For the purposes of Subsection (b)(1) of this section,
the department [comptroller] shall designate as a market area for
the event each area in which the department [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 department [comptroller]. The
department [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.
(d) Each endorsing municipality or endorsing county shall
remit to the comptroller and the comptroller shall deposit into a
trust fund created by the comptroller and designated as the Major
Events trust fund the amount of the municipality's or county's hotel
occupancy tax revenue determined by the department 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, at the
direction of the department, shall retain the amount of sales and
use tax revenue and mixed beverage tax revenue determined by the
department 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
department [comptroller] and shall discontinue retaining the local
tax revenues under this subsection when the amount of the
applicable tax revenue determined by the department under
Subsection (b)(2) or (b)(3) of this section has been retained. The
Major Events 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 department
[comptroller] without appropriation only as provided by this
section.
(d-1) Not later than the 90th day after the last day of an
event 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 trust fund other local funds in an amount equal to
the total amount of local tax revenue determined by the department
under Subsections (b)(2) through (5) of this section. The amount
deposited by the comptroller into the Major Events trust fund under
this subsection is subject to Subsection (f) of this section.
(f) The comptroller, at the direction of the department,
shall deposit into the Major Events trust fund a portion of the
state tax revenue not to exceed the amount determined by the
department 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.
(i) A local organizing committee, endorsing municipality,
or endorsing county shall provide information required by the
department [comptroller] to enable the department [comptroller] to
fulfill the department's [comptroller's] duties 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, including an
estimate of the number of people expected to attend the event who
are not residents of this state, 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 department [comptroller], 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 department's [comptroller's] request, a local organizing
committee, endorsing municipality, or endorsing county must
provide information relating to the event, such as attendance
figures, including an estimate of the number of attendees at the
event who are not residents of this state, financial information,
or other public information held by the local organizing committee,
endorsing municipality, or endorsing county that the department
[comptroller] 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 department [comptroller] under
Subsection (b-1) of this section, the department [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 department's [comptroller's]
estimate to a site selection organization.
(k) The department [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. 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 department [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 department
[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, at the direction of the department, shall remit to
each endorsing entity, in proportion to the amount contributed by
the entity, any money remaining in the trust fund.
(p) The department [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; and
(3) the request is accompanied by documentation from a
site selection organization selecting the site for the event.
(v) The department [comptroller] may adopt rules necessary
to implement this section.
(w) Not later than 10 months after the last day of an event
eligible for disbursements from the Major Events trust fund for
costs associated with the event, the department [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 department [comptroller] shall post on the
department's [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 department [comptroller] for the
study;
(2) the amount of incremental increase in tax receipts
for the event determined by the department 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
department [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 department [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 department
[comptroller] shall compare information on the actual attendance
figures provided to the department [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
department [comptroller] may reduce the amount of a disbursement
for an endorsing entity under the Major Events 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 department [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 6. Sections 5B(b), (c), (d), (f), (i), (j), (k),
(m), and (o), 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:
(b) If a site selection organization selects a site for a
motor sports racing 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
motor sports racing event, the department [comptroller] shall
determine for the 30-day period that ends at the end of the day
after the date on which the racing event will be held, in accordance
with procedures developed by the department [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 department
[comptroller], to the preparation for and presentation of the
racing event;
(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 department [comptroller], to the preparation
for and presentation of the racing event;
(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
department [comptroller], to the preparation for and presentation
of the racing event;
(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 department [comptroller], to the
preparation for and presentation of the racing event; 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 department [comptroller], to the
preparation for and presentation of the racing event.
(c) For the purposes of Subsection (b)(1) of this section,
the department [comptroller] shall designate as a market area for
the motor sports racing event each area in which the department
[comptroller] determines there is a reasonable likelihood of
measurable economic impact directly attributable to the
preparation for and presentation of the racing event, including
areas likely to provide venues, accommodations, and services in
connection with the racing event based on a proposal or other
information provided by an endorsing municipality, endorsing
county, or local organizing committee to the department
[comptroller]. The department [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 racing event must be included in a market area for the
racing event.
(d) Each endorsing municipality or endorsing county shall
remit to the comptroller and the comptroller shall deposit into a
trust fund created by the comptroller and designated as the Motor
Sports Racing trust fund for the particular event the amount of the
municipality's or county's hotel occupancy tax revenue determined
by the department under Subsection (b)(4) or (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, at the direction of the department,
shall retain the amount of sales and use tax revenue and mixed
beverage tax revenue determined by the department under Subsection
(b)(2) or (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 30-day period described by
Subsection (b) of this section 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 (3) of
this section has been retained. The Motor Sports Racing trust fund
is established outside the state treasury and is held in trust by
the comptroller for administration of this section. Money in the
trust fund may be disbursed by the department [comptroller] without
appropriation only as provided by this section.
(f) The comptroller, at the direction of the department,
shall deposit a portion of the state tax revenue determined by the
department under Subsection (b)(1) of this section in an amount
equal to 6.25 times the amount of the local sales and use tax
revenue and mixed beverage tax revenue retained and the hotel
occupancy tax revenue remitted by an endorsing municipality or
endorsing county under Subsection (d) of this section.
(i) A local organizing committee, endorsing municipality,
or endorsing county shall provide information required by the
department [comptroller] to enable the department [comptroller] to
fulfill the department's [comptroller's] duties 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 motor sports racing
event and to the economic impact of the racing event. A local
organizing committee, endorsing municipality, or endorsing county
must provide an annual audited financial statement required by the
department [comptroller], if any, not later than the end of the
fourth month after the date the period covered by the financial
statement ends.
(j) The department [comptroller] shall provide an estimate
not later than three months before the date of a motor sports racing
event of the total amount of tax revenue that would be deposited in
the Motor Sports Racing trust fund under this section in connection
with that racing event, if the racing 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 department [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 department's
[comptroller's] estimate to a site selection organization.
(k) The department [comptroller] may make a disbursement
from the Motor Sports Racing trust fund on the prior approval of
each contributing endorsing municipality or endorsing county for a
purpose for which an endorsing municipality or endorsing county or
the state is obligated under a motor sports racing event support
contract or event support contract. A disbursement may not be made
from the trust fund that the department [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 motor sports racing support contract or event
support contract related to the location of any particular racing
event in the state, the comptroller, at the direction of the
department, shall remit to each endorsing entity, in proportion to
the amount contributed by the entity, any money remaining in the
trust fund.
(o) The department [comptroller] may not undertake any of
the responsibilities or duties set forth in this section unless a
request is submitted by the municipality and the county in which the
motor sports racing event will be held. The request must be
accompanied by documentation from a site selection organization
selecting the site for the racing event.
SECTION 7. Sections 5C(b), (b-1), (c), (c-1), (d), (d-1),
(f), (i), (j), (k), (k-1), (m), (o), (p), (q), (r), and (t), 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:
(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 department
[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 department [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 department
[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 department [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
department [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 department [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 department [comptroller], to the
preparation for and presentation of the event and related
activities.
(b-1) The number of requests for funding under this section
that may be submitted by an endorsing county or endorsing
municipality during any 12-month period for an event for which the
department [comptroller] determines that the total amount of the
incremental increase in tax receipts under Subsection (b) of this
section is less than $200,000 is limited to, during any 12-month
period, not more than 10 events, only three of which may be
nonsporting events.
(c) For the purposes of Subsection (b)(1) of this section,
the department [comptroller] shall designate as a market area for
the event each area in which the department [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 department [comptroller]. The
department [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 department [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 department
[comptroller] receives the information.
(d) Each endorsing municipality or endorsing county shall
remit to the comptroller and the comptroller shall deposit into a
trust fund created by the comptroller and designated as the Events
trust fund the amount of the municipality's or county's hotel
occupancy tax revenue determined by the department under Subsection
(b)(4) or (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, at the
direction of the department, shall retain the amount of sales and
use tax revenue and mixed beverage tax revenue determined by the
department under Subsection (b)(2) or (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 period described by Subsection (b) of this section or at
a time otherwise determined to be practicable by the department
[comptroller] and shall discontinue retaining the local tax
revenues under this subsection when the amount of the applicable
tax revenue determined by the department under Subsection (b)(2) or
(3) of this section has been retained. The Events trust fund is
established outside the state treasury and is held in trust by the
comptroller for administration of this section. Money in the trust
fund may be disbursed by the department [comptroller] without
appropriation only as provided by this section.
(d-1) Not later than the 90th day after the last day of an
event 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 Events trust fund other local funds in an amount equal to the
total amount of local tax revenue determined by the department
under Subsections (b)(2) through (5) of this section. The amount
deposited [by the comptroller] into the Events trust fund under
this subsection is subject to Subsection (f) of this section.
(f) The comptroller, at the direction of the department,
shall deposit into the Events trust fund a portion of the state tax
revenue not to exceed the amount determined by the department under
Subsection (b)(1) of this section in an amount equal to 6.25 times
the amount of the local tax 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.
(i) A local organizing committee, endorsing municipality,
or endorsing county shall provide information required by the
department [comptroller] to enable the department [comptroller] to
fulfill the department's [comptroller's] duties 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, including an
estimate of the number of people expected to attend the event who
are not residents of this state, 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 department [comptroller], 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 department's [comptroller's] request, a local organizing
committee, endorsing municipality, or endorsing county must
provide information relating to the event, such as attendance
figures, including an estimate of the number of people who are not
residents of this state who attended the event, financial
information, or other public information held by the local
organizing committee, endorsing municipality, or endorsing county
that the department [comptroller] considers necessary.
(j) The department [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 department [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 department's [comptroller's] estimate to a site
selection organization.
(k) The department [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, including an obligation to pay
costs incurred in the conduct of the event and costs incurred in
making preparations necessary for 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, unless the improvement or fixture
is for a publicly owned facility. In considering whether to make a
disbursement from the trust fund, the department [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.
(k-1) A disbursement may not be made from the trust fund
that the department [comptroller] determines would be used for the
purpose of:
(1) soliciting the relocation of a professional sports
franchise located in this state;
(2) constructing an arena, stadium, or convention
center; or
(3) conducting usual and customary maintenance of a
facility.
(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, at the
direction of the department, shall remit to each endorsing entity,
in proportion to the amount contributed by the entity, any money
remaining in the Events trust fund.
(o) The department [comptroller] may not undertake any of
the responsibilities or duties set forth in this section unless a
request is submitted by the municipality or the county in which the
event will be located. The request must be accompanied by
documentation from a site selection organization selecting the site
for the event.
(p) The department [comptroller] may adopt rules necessary
to implement this section.
(q) In determining the amount of state revenue available
under Subsection (b)(1) of this section, the department
[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.
(r) The department [comptroller] may adopt a model event
support contract and make the contract available on the
department's [comptroller's] Internet website. The adoption by
the department [comptroller] of a model event support contract
under this subsection does not require use of the model event
support contract for purposes of this section.
(t) After the conclusion of an event, the department
[comptroller] shall compare information on the actual attendance
figures provided to the department [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
department [comptroller] may reduce the amount of a disbursement
for an endorsing entity under the Events 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
department [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 8. Section 6(b), 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:
(b) If an endorsing municipality or endorsing county is
required to hold an election under this section and the
contribution of a portion of the municipality's or county's sales
and use taxes to the Olympic Games trust fund under Section 5 of
this Act is not approved by a majority of the voters voting in the
election:
(1) the comptroller may not establish the Olympic
Games trust fund under Section 5 of this Act, may not retain the
municipality's or county's tax revenue under Section 5(d) of this
Act from amounts otherwise required to be sent to that municipality
or county, and may not deposit any state tax revenue into the trust
fund;
(2) the department [comptroller] is not required to
determine the incremental increase in state, county, or municipal
tax revenue under Section 5(b) of this Act; and
(3) the department may not enter into a games support
contract relating to the games for which the municipality or county
has authorized a bid on its behalf.
SECTION 9. The following laws are repealed:
(1) Section 5C(s), Chapter 1507 (S.B. 456), Acts of
the 76th Legislature, Regular Session, 1999 (Article 5190.14,
Vernon's Texas Civil Statutes); and
(2) Chapter 398, Local Government Code.
SECTION 10. As soon as is practicable after the effective
date of this Act, but not later than September 10, 2015, the office
of the governor and the comptroller of public accounts shall
develop and adopt a memorandum of understanding that:
(1) identifies in detail the applicable powers and
duties of the comptroller that are being transferred to the office
of the governor as a result of this Act; and
(2) establishes a plan for the identification and
transfer of records, property, and unspent appropriations of the
comptroller that are used for purposes of managing the funds
transferred to the office of the governor.
SECTION 11. (a) Not later than September 10, 2015:
(1) the administration of the Pan American Games trust
fund, Olympic Games trust fund, Major Events trust fund, Motor
Sports Racing trust fund, and Events trust fund for sporting and
non-sporting events shall be transferred from the comptroller of
public accounts to the Texas Economic Development and Tourism
Office;
(2) all rules, forms, policies, procedures, or
decisions of the comptroller that are related to the Pan American
Games trust fund, Olympic Games trust fund, Major Events trust
fund, Motor Sports Racing trust fund, and Events trust fund for
sporting and non-sporting events are continued in effect as rules,
forms, policies, procedures, or decisions of the economic
development and tourism division, office of the governor, until
superseded by a rule or other appropriate act of the Texas Economic
Development and Tourism Office; and
(3) a reference in law or administrative rule to the
comptroller relating to the decisions for and administration of the
Pan American Games trust fund, Olympic Games trust fund, Major
Events trust fund, Motor Sports Racing trust fund, and Events trust
fund for sporting and non-sporting events, other than a duty
typically performed by the comptroller related to a state fund,
means the Texas Economic Development and Tourism Office.
(b) Before the transfer of the administration of the Pan
American Games trust fund, Olympic Games trust fund, Major Events
trust fund, Motor Sports Racing trust fund, and Events trust fund
for sporting and non-sporting events, the comptroller and the Texas
Economic Development and Tourism Office shall coordinate the
transfer of powers and duties, including records and other items,
in accordance with the memorandum of understanding adopted under
Section 10 of this Act, to ensure a smooth transition.
SECTION 12. Notwithstanding the repeal by this Act of
Chapter 398, Local Government Code, a special event plan approved
under former Chapter 398 of that code before September 1, 2015, is
governed by the law as it existed immediately before the effective
date of this Act, and that law is continued in effect for that
purpose.
SECTION 13. This Act takes effect September 1, 2015.