Texas 2015 - 84th Regular

Texas House Bill HB3613 Compare Versions

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Version 2 (New)

Old	New	Differences
1	1	84R25111 DDT-D
2	2	By: Isaac, Bell, Anderson of McLennan H.B. No. 3613
3	3	Substitute the following for H.B. No. 3613:
4	4	By: Button C.S.H.B. No. 3613
5	5
6	6
7	7	A BILL TO BE ENTITLED
8	8	AN ACT
9	9	relating to a Pan American Games trust fund, an Olympic Games trust
10	10	fund, a Major Events trust fund, a Motor Sports Racing trust fund,
11	11	and an Events trust fund for sporting and non-sporting events, and
12	12	to the abolishment of the special event trust fund.
13	13	BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
14	14	SECTION 1. Chapter 1507 (S.B. 456), Acts of the 76th
15	15	Legislature, Regular Session, 1999 (Article 5190.14, Vernon's
16	16	Texas Civil Statutes), is amended by adding Section 3A to read as
17	17	follows:
18	18	Sec. 3A. RULES. The office of the governor shall adopt
19	19	rules consistent with this Act to ensure efficient administration
20	20	of the trust funds established under this Act, including rules
21	21	related to application and receipt requirements.
22	22	SECTION 2. Sections 4(b), (c), (d), (f), (h), (j), (k), and
23	23	(m), Chapter 1507 (S.B. 456), Acts of the 76th Legislature, Regular
24	24	Session, 1999 (Article 5190.14, Vernon's Texas Civil Statutes), are
25	25	amended to read as follows:
26	26	(b) If a site selection organization selects a site for the
27	27	games in this state pursuant to an application by a local organizing
28	28	committee acting on behalf of an endorsing municipality, after the
29	29	first occurrence of a measurable economic impact in this state as a
30	30	result of the preparation for the games, as determined by the
31	31	department [comptroller], but in no event later than one year
32	32	before the scheduled opening event of the games, the department
33	33	[comptroller] shall determine for each subsequent calendar
34	34	quarter, in accordance with procedures developed by the department
35	35	[comptroller]:
36	36	(1) the incremental increase in the receipts to the
37	37	state from the taxes imposed under Chapters 151, 152, 156, and 183,
38	38	Tax Code, and under Title 5, Alcoholic Beverage Code, within the
39	39	market areas designated under Subsection (c) of this section, that
40	40	is directly attributable, as determined by the department
41	41	[comptroller], to the preparation for and presentation of the games
42	42	and related events;
43	43	(2) the incremental increase in the receipts collected
44	44	by the state on behalf of the endorsing municipality from the sales
45	45	and use tax imposed by the endorsing municipality under Section
46	46	321.101(a), Tax Code, that is directly attributable, as determined
47	47	by the department [comptroller], to the preparation for and
48	48	presentation of the games and related events; and
49	49	(3) the incremental increase in the receipts collected
50	50	by the endorsing municipality from the municipality's hotel
51	51	occupancy tax imposed under Chapter 351, Tax Code, that is directly
52	52	attributable, as determined by the department [comptroller], to the
53	53	preparation for and presentation of the games and related events.
54	54	(c) For the purposes of Subsection (b)(1) of this section,
55	55	the department [comptroller] shall designate as a market area for
56	56	the games each area in which the department [comptroller]
57	57	determines there is a reasonable likelihood of measurable economic
58	58	impact directly attributable to the preparation for and
59	59	presentation of the games and related events, including areas
60	60	likely to provide venues, accommodations, and services in
61	61	connection with the games based on the proposal provided by the
62	62	local organizing committee under Section 7 of this Act. The
63	63	department [comptroller] shall determine the geographic boundaries
64	64	of each market area. The endorsing municipality that has been
65	65	selected as the site for the games must be included in a market area
66	66	for the games.
67	67	(d) The comptroller, at the direction of the department,
68	68	shall retain, for the purpose of guaranteeing the joint obligations
69	69	of the state and the endorsing municipality under a games support
70	70	contract and this Act, the amount of municipal sales and use tax
71	71	revenue determined under Subsection (b)(2) of this section from the
72	72	amounts otherwise required to be sent to the municipality under
73	73	Section 321.502, Tax Code, beginning with the first distribution of
74	74	that tax revenue that occurs after the date the department
75	75	[comptroller] makes the determination of the amount of municipal
76	76	sales and use tax revenue under Subsection (b)(2). The comptroller
77	77	shall discontinue retaining municipal sales and use tax revenue
78	78	under this subsection on the earlier of:
79	79	(1) the end of the third calendar month following the
80	80	month in which the closing event of the games occurs; or
81	81	(2) the date the amount of municipal sales and use tax
82	82	revenue and municipal hotel occupancy tax revenue in the Pan
83	83	American Games trust fund equals 14 percent of the maximum amount of
84	84	state and municipal tax revenue that may be transferred to or
85	85	deposited in the trust fund under Subsection (m) of this section.
86	86	(f) Subject to Subsection (m) of this section, the
87	87	comptroller, at the direction of the department, shall deposit into
88	88	a trust fund designated as the Pan American Games trust fund the
89	89	amount of municipal sales and use tax revenue retained under
90	90	Subsection (d) of this section and, at the same time, shall transfer
91	91	to the fund a portion of the state tax revenue determined by the
92	92	department under Subsection (b)(1) of this section in an amount
93	93	equal to 6.25 times the amount of that municipal sales and use tax
94	94	revenue. Subject to Subsection (m) of this section, the endorsing
95	95	municipality shall deposit into the trust fund the amount of the
96	96	endorsing municipality's hotel occupancy tax revenue determined by
97	97	the department under Subsection (b)(3) of this section. The
98	98	endorsing municipality shall deposit that hotel occupancy tax
99	99	revenue into the trust fund at least quarterly. When the endorsing
100	100	municipality makes a deposit of its hotel occupancy tax revenue,
101	101	the comptroller, at the direction of the department, shall transfer
102	102	to the fund [deposit] at the same time a portion of the state tax
103	103	revenue determined under Subsection (b)(1) of this section in an
104	104	amount equal to 6.25 times the amount of that municipal hotel
105	105	occupancy tax revenue. The Pan American Games trust fund is
106	106	established outside the treasury but is held in trust by the
107	107	comptroller for the administration of this Act. Money in the trust
108	108	fund may be spent by the department without appropriation only as
109	109	provided by this Act. The comptroller shall discontinue
110	110	transferring [depositing] into the trust fund any state tax revenue
111	111	determined by the department under Subsection (b)(1) of this
112	112	section on the earlier of:
113	113	(1) the end of the third calendar month following the
114	114	month in which the closing event of the games occurs; or
115	115	(2) the date on which the amount of state revenue in
116	116	the Pan American Games trust fund equals 86 percent of the maximum
117	117	amount of state and municipal tax revenue that may be transferred to
118	118	or deposited in the trust fund under Subsection (m) of this section.
119	119	(h) A local organizing committee shall provide information
120	120	required by the department [comptroller] to enable the department
121	121	[comptroller] to fulfill the department's [comptroller's] duties
122	122	under this Act, including annual audited statements of the local
123	123	organizing committee's financial records required by a site
124	124	selection organization and data obtained by the local organizing
125	125	committee relating to attendance at the games and to the economic
126	126	impact of the games. A local organizing committee must provide an
127	127	annual audited financial statement required by the department
128	128	[comptroller] not later than the end of the fourth month after the
129	129	date the period covered by the financial statement ends.
130	130	(j) The department may not make a disbursement from the Pan
131	131	American Games trust fund unless the department [comptroller]
132	132	certifies that the disbursement is for a purpose for which the state
133	133	and the endorsing municipality are jointly obligated under a games
134	134	support contract or other agreement described by Subsection (g) of
135	135	this section.
136	136	(k) If the department [comptroller] certifies under
137	137	Subsection (j) of this section that a disbursement may be made from
138	138	the Pan American Games trust fund, the obligation shall be
139	139	satisfied first out of municipal revenue deposited in the trust
140	140	fund and any interest earned on that municipal revenue. If the
141	141	municipal revenue is not sufficient to satisfy the entire deficit,
142	142	state revenue transferred [deposited] into the trust fund and any
143	143	interest earned on that state revenue shall be used to satisfy the
144	144	portion of the deficit not covered by the municipal revenue.
145	145	(m) In no event may:
146	146	(1) the total amount of state and municipal tax
147	147	revenue transferred to or deposited in the Pan American Games trust
148	148	fund exceed $20 million; or
149	149	(2) the joint liability of the state and the endorsing
150	150	municipality under a joinder agreement and any other games support
151	151	contracts entered into pursuant to this Act exceed the lesser of:
152	152	(A) $20 million; or
153	153	(B) the total amount of revenue transferred to or
154	154	deposited in the Pan American Games trust fund and interest earned
155	155	on the fund.
156	156	SECTION 3. Sections 4(i) and (l), Chapter 1507 (S.B. 456),
157	157	Acts of the 76th Legislature, Regular Session, 1999 (Article
158	158	5190.14, Vernon's Texas Civil Statutes), as amended by Chapters 579
159	159	(H.B. 1675) and 814 (S.B. 275), Acts of the 78th Legislature,
160	160	Regular Session, 2003, are reenacted and amended to read as
161	161	follows:
162	162	(i) The department [comptroller] shall provide an estimate
163	163	not later than September [December] 1 [, 2003,] of the year that is
164	164	eight years before the year in which the games would be held in this
165	165	state of the total amount of state and municipal tax revenue that
166	166	would be transferred to or deposited in the Pan American Games trust
167	167	fund before January 1 [, 2012,] of the year following the year in
168	168	which the games would be held, if the games were to be held in this
169	169	state at a site selected pursuant to an application by a local
170	170	organizing committee. The department [comptroller] shall provide
171	171	the estimate on request to a local organizing committee. A local
172	172	organizing committee may submit the department's [comptroller's]
173	173	estimate to a site selection organization.
174	174	(l) On January 1 [, 2013,] of the second year following the
175	175	year in which the games are held in this state, the comptroller, at
176	176	the direction of the department, shall transfer to the general
177	177	revenue fund any money remaining in the Pan American Games trust
178	178	fund, not to exceed the amount of state revenue remaining in the
179	179	trust fund, plus any interest earned on that state revenue. The
180	180	comptroller shall remit to the endorsing municipality any money
181	181	remaining in the trust fund after the required amount is
182	182	transferred to the general revenue fund.
183	183	SECTION 4. Sections 5(b), (c), (d), (f), (h), (i), (j), (k),
184	184	(l), and (m), Chapter 1507 (S.B. 456), Acts of the 76th Legislature,
185	185	Regular Session, 1999 (Article 5190.14, Vernon's Texas Civil
186	186	Statutes), are amended to read as follows:
187	187	(b) If a site selection organization selects a site for the
188	188	games in this state pursuant to an application by a local organizing
189	189	committee, after the first occurrence of a measurable economic
190	190	impact in this state as a result of the preparation for the games,
191	191	as determined by the department [comptroller], but in no event
192	192	later than one year before the scheduled opening event of the games,
193	193	the department [comptroller] shall determine for each subsequent
194	194	calendar quarter, in accordance with procedures developed by the
195	195	department [comptroller]:
196	196	(1) the incremental increase in the receipts to the
197	197	state from the taxes imposed under Chapters 151, 152, 156, and 183,
198	198	Tax Code, and under Title 5, Alcoholic Beverage Code, within the
199	199	market areas designated under Subsection (c) of this section, that
200	200	is directly attributable, as determined by the department
201	201	[comptroller], to the preparation for and presentation of the games
202	202	and related events;
203	203	(2) the incremental increase in the receipts collected
204	204	by the state on behalf of each endorsing municipality from the sales
205	205	and use tax imposed by the endorsing municipality under Section
206	206	321.101(a), Tax Code, and the mixed beverage tax revenue to be
207	207	received by the endorsing municipality under Section 183.051(b),
208	208	Tax Code, that is directly attributable, as determined by the
209	209	department [comptroller], to the preparation for and presentation
210	210	of the games and related events;
211	211	(3) the incremental increase in the receipts collected
212	212	by the state on behalf of each endorsing county from the sales and
213	213	use tax imposed by the county under Section 323.101(a), Tax Code,
214	214	and the mixed beverage tax revenue to be received by the endorsing
215	215	county under Section 183.051(b), Tax Code, that is directly
216	216	attributable, as determined by the department [comptroller], to the
217	217	preparation for and presentation of the games and related events;
218	218	(4) the incremental increase in the receipts collected
219	219	by each endorsing municipality from the hotel occupancy tax imposed
220	220	under Chapter 351, Tax Code, that is directly attributable, as
221	221	determined by the department [comptroller], to the preparation for
222	222	and presentation of the games and related events; and
223	223	(5) the incremental increase in the receipts collected
224	224	by each endorsing county from the hotel occupancy tax imposed under
225	225	Chapter 352, Tax Code, that is directly attributable, as determined
226	226	by the department [comptroller], to the preparation for and
227	227	presentation of the games and related events.
228	228	(c) For the purposes of Subsection (b)(1) of this section,
229	229	the department [comptroller] shall designate as a market area for
230	230	the games each area in which the department [comptroller]
231	231	determines there is a reasonable likelihood of measurable economic
232	232	impact directly attributable to the preparation for and
233	233	presentation of the games and related events, including areas
234	234	likely to provide venues, accommodations, and services in
235	235	connection with the games based on the proposal provided by the
236	236	local organizing committee under Section 7 of this Act. The
237	237	department [comptroller] shall determine the geographic boundaries
238	238	of each market area. Each endorsing municipality or endorsing
239	239	county that has been selected as the site for the games must be
240	240	included in a market area for the games.
241	241	(d) Subject to Section 6 of this Act, the comptroller, at
242	242	the direction of the department, shall retain, for the purpose of
243	243	guaranteeing the joint obligations of the state and an endorsing
244	244	municipality or endorsing county under a games support contract and
245	245	this Act, the amount of sales and use tax revenue and mixed beverage
246	246	tax revenue determined under Subsection (b)(2) or (b)(3) of this
247	247	section from the amounts otherwise required to be sent to the
248	248	municipality under Section 183.051(b) or 321.502, Tax Code, or to
249	249	the county under Section 183.051(b) or 323.502, Tax Code, beginning
250	250	with the first distribution of that tax revenue that occurs after
251	251	the date the department [comptroller] makes the determination of
252	252	the amount of sales and use tax revenue and mixed beverage tax
253	253	revenue under Subsection (b)(2) or (b)(3) of this section. The
254	254	comptroller shall discontinue retaining sales and use tax revenue
255	255	and mixed beverage tax revenue under this subsection on the earlier
256	256	of:
257	257	(1) the end of the third calendar month following the
258	258	month in which the closing event of the games occurs; or
259	259	(2) the date the amount of local sales and use tax
260	260	revenue and mixed beverage tax revenue in the Olympic Games trust
261	261	fund equals 14 percent of the maximum amount of state and local tax
262	262	revenue that may be transferred to or deposited in the trust fund
263	263	under Subsection (m) of this section.
264	264	(f) Subject to Subsection (m) of this section, each
265	265	endorsing municipality or endorsing county shall remit to the
266	266	comptroller and the comptroller, at the direction of the
267	267	department, shall deposit into a trust fund designated as the
268	268	Olympic Games trust fund, on a quarterly basis, the amount of the
269	269	municipality's or county's hotel occupancy tax revenue determined
270	270	by the department under Subsection (b)(4) or (b)(5) of this
271	271	section, as applicable. Subject to Section 6 of this Act and
272	272	Subsection (m) of this section, the comptroller, at the direction
273	273	of the department, shall deposit into the trust fund the amount of
274	274	sales and use tax revenue and mixed beverage tax revenue retained
275	275	under Subsection (d) of this section for the same calendar quarter
276	276	and, at the same time, shall transfer to the fund the state tax
277	277	revenue determined by the department under Subsection (b)(1) of
278	278	this section for the quarter. The Olympic Games trust fund is
279	279	established outside the treasury but is held in trust by the
280	280	comptroller for the administration of this Act. Money in the trust
281	281	fund may be spent by the department without appropriation only as
282	282	provided by this Act. The comptroller shall discontinue transfer
283	283	[deposit] of the amount of state tax revenue determined by the
284	284	department under Subsection (b)(1) of this section on the earlier
285	285	of:
286	286	(1) the end of the third calendar month following the
287	287	month in which the closing event of the games occurs; or
288	288	(2) the date the amount of state revenue in the Olympic
289	289	Games trust fund equals 86 percent of the maximum amount of state,
290	290	municipal, and county tax revenue that may be transferred to or
291	291	deposited in the trust fund under Subsection (m) of this section.
292	292	(h) A local organizing committee shall provide information
293	293	required by the department [comptroller] to enable the department
294	294	[comptroller] to fulfill the department's [comptroller's] duties
295	295	under this Act, including annual audited statements of the local
296	296	organizing committee's financial records required by a site
297	297	selection organization and data obtained by the local organizing
298	298	committee relating to attendance at the games and to the economic
299	299	impact of the games. A local organizing committee must provide an
300	300	annual audited financial statement required by the department
301	301	[comptroller] not later than the end of the fourth month after the
302	302	date the period covered by the financial statement ends.
303	303	(i) The department [comptroller] shall provide an estimate
304	304	before August 31 of the year that is 12 years before the year in
305	305	which the games would be held in this state, or as soon as practical
306	306	after that date, of the total amount of state, municipal, and county
307	307	tax revenue that would be transferred to or deposited in the Olympic
308	308	Games trust fund if the games were to be held in this state at a site
309	309	selected pursuant to an application by a local organizing
310	310	committee. The department [comptroller] shall provide the estimate
311	311	on request to a local organizing committee. A local organizing
312	312	committee may submit the department's [comptroller's] estimate to a
313	313	site selection organization.
314	314	(j) The department may not make a disbursement from the
315	315	Olympic Games trust fund unless the department [comptroller]
316	316	certifies that the disbursement is for a purpose for which the state
317	317	and each endorsing municipality or endorsing county are jointly
318	318	obligated under a games support contract or other agreement
319	319	described by Subsection (g) of this section. A disbursement may not
320	320	be made from the trust fund that the department determines would be
321	321	used for the purpose of soliciting the relocation of a professional
322	322	sports franchise located in this state.
323	323	(k) If the department [comptroller] certifies under
324	324	Subsection (j) of this section that a disbursement may be made from
325	325	the Olympic Games trust fund, the obligation shall be satisfied
326	326	proportionately from the state and municipal or county revenue in
327	327	the trust fund.
328	328	(l) Two years after the closing event of the games, the
329	329	department [comptroller] shall transfer to the general revenue fund
330	330	any money remaining in the Olympic Games trust fund, not to exceed
331	331	the amount of state revenue remaining in the trust fund, plus any
332	332	interest earned on that state revenue. The department
333	333	[comptroller] shall remit to each endorsing entity in proportion to
334	334	the amount contributed by the entity any money remaining in the
335	335	trust fund after the required amount is transferred to the general
336	336	revenue fund.
337	337	(m) In no event may:
338	338	(1) the total amount of state, municipal, and county
339	339	tax revenue transferred to or deposited in the Olympic Games trust
340	340	fund exceed $100 million; or
341	341	(2) the joint liability of the state and an endorsing
342	342	municipality or county under a joinder agreement and any other
343	343	games support contracts entered into pursuant to this Act exceed
344	344	the lesser of:
345	345	(A) $100 million; or
346	346	(B) the total amount of revenue transferred to or
347	347	deposited in the Olympic Games trust fund and interest earned on the
348	348	fund.
349	349	SECTION 5. Section 5A(a), Chapter 1507 (S.B. 456), Acts of
350	350	the 76th Legislature, Regular Session, 1999 (Article 5190.14,
351	351	Vernon's Texas Civil Statutes), is amended by amending Subdivisions
352	352	(1), (2), and (4) and Subdivision (5), as amended by S.B. 293, Acts
353	353	of the 84th Legislature, Regular Session, 2015, to read as follows:
354	354	(1) "Endorsing county" means:
355	355	(A) a county that contains a site selected by a
356	356	site selection organization for one or more events; or
357	357	(B) a county that:
358	358	(i) does not contain a site selected by a
359	359	site selection organization for an event;
360	360	(ii) is included in the market area for the
361	361	event as designated by the department [comptroller]; and
362	362	(iii) is a party to an event support
363	363	contract.
364	364	(2) "Endorsing municipality" means:
365	365	(A) a municipality that contains a site selected
366	366	by a site selection organization for one or more events; or
367	367	(B) a municipality that:
368	368	(i) does not contain a site selected by a
369	369	site selection organization for an event;
370	370	(ii) is included in the market area for the
371	371	event as designated by the department [comptroller]; and
372	372	(iii) is a party to an event support
373	373	contract.
374	374	(4) "Event" means a Super Bowl, a National Collegiate
375	375	Athletic Association Final Four tournament game, the National
376	376	Basketball Association All-Star Game, the X Games, the National
377	377	Hockey League All-Star Game, the Major League Baseball All-Star
378	378	Game, a game of the National Collegiate Athletic Association Bowl
379	379	Championship Series or its successor or a National Collegiate
380	380	Athletic Association Division I Football Bowl Subdivision
381	381	postseason playoff or championship game, the National Collegiate
382	382	Athletic Association men's or women's lacrosse championships, a
383	383	World Cup Soccer game, the World Cup soccer tournament, the Major
384	384	League Soccer All-Star Game, the Major League Soccer Cup, a
385	385	Professional Rodeo Cowboys Association Finals event, an Elite Rodeo
386	386	Association World Championship, the United States Open
387	387	Championship, the World Games, a national collegiate championship
388	388	of an amateur sport sanctioned by the national governing body of the
389	389	sport that is recognized by the United States Olympic Committee, an
390	390	Olympic activity, including a Junior or Senior activity, training
391	391	program, or feeder program sanctioned by the United States Olympic
392	392	Committee's Community Olympic Development Program, the Amateur
393	393	Athletic Union Junior Olympic Games, a mixed martial arts
394	394	championship, the Breeders' Cup World Championships, a Formula One
395	395	automobile race, the Moto Grand Prix of the United States, the
396	396	Academy of Country Music Awards, the National Cutting Horse
397	397	Association Triple Crown, a national political convention of the
398	398	Republican National Committee or the Democratic National
399	399	Committee, a presidential general election debate, or the largest
400	400	event held each year at a sports entertainment venue in this state
401	401	with a permanent seating capacity, including grandstand and premium
402	402	seating, of not less than 125,000. The term includes any
403	403	activities related to or associated with an event.
404	404	(5) "Site selection organization" means:
405	405	(A) the National Football League, the National
406	406	Collegiate Athletic Association, the National Basketball
407	407	Association, ESPN or an affiliate, the National Hockey League,
408	408	Major League Baseball, the Federation Internationale de Football
409	409	Association (FIFA), the International World Games Association, the
410	410	National Association for Stock Car Auto Racing (NASCAR), Dorna
411	411	Sports, the Amateur Athletic Union, the Professional Rodeo Cowboys
412	412	Association, the Elite Rodeo Association, Major League Soccer, the
413	413	United States Golf Association, or the United States Olympic
414	414	Committee;
415	415	(B) the national governing body of a sport that
416	416	is recognized by the United States Olympic Committee, the National
417	417	Thoroughbred Racing Association, Formula One Management Limited,
418	418	or the Federation Internationale de l'Automobile;
419	419	(C) the Academy of Country Music;
420	420	(D) the National Cutting Horse Association;
421	421	(E) the Republican National Committee or the
422	422	Democratic National Committee; [or]
423	423	(F) the Ultimate Fighting Championship; or
424	424	(G) the Commission on Presidential Debates.
425	425	SECTION 6. Section 5A, Chapter 1507 (S.B. 456), Acts of the
426	426	76th Legislature, Regular Session, 1999 (Article 5190.14, Vernon's
427	427	Texas Civil Statutes), is amended by amending Subsections (a-1),
428	428	(a-2), (b), (b-1), (c), (d), (d-1), (e), (f), (i), (j), (k), (l),
429	429	(m), (p), (v), (w), and (y) and adding Subsection (a-3) to read as
430	430	follows:
431	431	(a-1) An event not listed in Subsection (a)(4) of this
432	432	section is ineligible for funding under this section. A listed
433	433	event may receive funding under this section only if:
434	434	(1) a site selection organization selects a site
435	435	located in this state for the event to be held one time or, for an
436	436	event scheduled to be held each year for a period of years under an
437	437	event contract, or an event support contract, one time each year for
438	438	the period of years, after considering, through a highly
439	439	competitive selection process, one or more sites that are not
440	440	located in this state;
441	441	(2) a site selection organization selects a site in
442	442	this state as:
443	443	(A) the sole site for the event; or
444	444	(B) the sole site for the event in a region
445	445	composed of this state and one or more adjoining states;
446	446	(3) the event is held not more than one time in any
447	447	year; and
448	448	(4) the amount of the incremental increase in tax
449	449	receipts determined by the department [comptroller] under
450	450	Subsection (b) of this section equals or exceeds $1 million,
451	451	provided that for an event scheduled to be held each year for a
452	452	period of years under an event contract or event support contract,
453	453	the incremental increase in tax receipts shall be calculated as if
454	454	the event did not occur in the prior year.
455	455	(a-2) Subsection (a-1)(1) of this section does not apply to
456	456	an event that is the largest event held each year at a sports
457	457	entertainment venue in this state with a permanent seating
458	458	capacity, including grandstand and premium seating, of not less
459	459	than 125,000. If an endorsing municipality or endorsing county
460	460	requests the department [comptroller] to make a determination under
461	461	Subsection (b) of this section for an event described by this
462	462	subsection, the provisions of this section apply to that event as if
463	463	it satisfied the eligibility requirements for an event under
464	464	Subsection (a-1)(1) of this section.
465	465	(a-3) For purposes of Subsection (a-1) of this section, each
466	466	presidential general election debate in a series of presidential
467	467	debates before a general election is considered a separate, single
468	468	event.
469	469	(b) If a site selection organization selects a site for an
470	470	event in this state pursuant to an application by a local organizing
471	471	committee, endorsing municipality, or endorsing county, upon
472	472	request of a local organizing committee, endorsing municipality, or
473	473	endorsing county, the department [comptroller] shall determine for
474	474	a one-year period that begins two months before the date on which
475	475	the event will begin, in accordance with procedures developed by
476	476	the department [comptroller]:
477	477	(1) the incremental increase in the receipts to the
478	478	state from taxes imposed under Chapters 151, 152, 156, and 183, Tax
479	479	Code, and under Title 5, Alcoholic Beverage Code, within the market
480	480	areas designated under Subsection (c) of this section, that is
481	481	directly attributable, as determined by the department
482	482	[comptroller], to the preparation for and presentation of the event
483	483	and related activities;
484	484	(2) the incremental increase in the receipts collected
485	485	by the state on behalf of each endorsing municipality in the market
486	486	area from the sales and use tax imposed by each endorsing
487	487	municipality under Section 321.101(a), Tax Code, and the mixed
488	488	beverage tax revenue to be received by each endorsing municipality
489	489	under Section 183.051(b), Tax Code, that is directly attributable,
490	490	as determined by the department [comptroller], to the preparation
491	491	for and presentation of the event and related activities;
492	492	(3) the incremental increase in the receipts collected
493	493	by the state on behalf of each endorsing county in the market area
494	494	from the sales and use tax imposed by each endorsing county under
495	495	Section 323.101(a), Tax Code, and the mixed beverage tax revenue to
496	496	be received by each endorsing county under Section 183.051(b), Tax
497	497	Code, that is directly attributable, as determined by the
498	498	department [comptroller], to the preparation for and presentation
499	499	of the event and related activities;
500	500	(4) the incremental increase in the receipts collected
501	501	by each endorsing municipality in the market area from the hotel
502	502	occupancy tax imposed under Chapter 351, Tax Code, that is directly
503	503	attributable, as determined by the department [comptroller], to the
504	504	preparation for and presentation of the event and related
505	505	activities; and
506	506	(5) the incremental increase in the receipts collected
507	507	by each endorsing county in the market area from the hotel occupancy
508	508	tax imposed under Chapter 352, Tax Code, that is directly
509	509	attributable, as determined by the department [comptroller], to the
510	510	preparation for and presentation of the event and related
511	511	activities.
512	512	(b-1) A request for a determination of the amount of
513	513	incremental increase in tax receipts specified by Subsection (b) of
514	514	this section must be submitted to the department [comptroller] not
515	515	earlier than one year and not later than 45 days before the date the
516	516	event begins. The department [comptroller] shall base the
517	517	determination specified by Subsection (b) of this section on
518	518	information submitted by the local organizing committee, endorsing
519	519	municipality, or endorsing county, and must make the determination
520	520	not later than the 30th day after the date the department
521	521	[comptroller] receives the request and related information.
522	522	(c) For the purposes of Subsection (b)(1) of this section,
523	523	the department [comptroller] shall designate as a market area for
524	524	the event each area in which the department [comptroller]
525	525	determines there is a reasonable likelihood of measurable economic
526	526	impact directly attributable to the preparation for and
527	527	presentation of the event and related activities, including areas
528	528	likely to provide venues, accommodations, and services in
529	529	connection with the event based on the proposal provided by the
530	530	local organizing committee to the department [comptroller]. The
531	531	department [comptroller] shall determine the geographic boundaries
532	532	of each market area. An endorsing municipality or endorsing county
533	533	that has been selected as the site for the event must be included in
534	534	a market area for the event.
535	535	(d) Each endorsing municipality or endorsing county shall
536	536	remit to the comptroller and the comptroller shall deposit into a
537	537	trust fund created by the comptroller, at the direction of the
538	538	department, and designated as the Major Events trust fund the
539	539	amount of the municipality's or county's hotel occupancy tax
540	540	revenue determined by the department under Subsection (b)(4) or
541	541	(b)(5) of this section, less any amount of the revenue that the
542	542	municipality or county determines is necessary to meet the
543	543	obligations of the municipality or county. The comptroller, at the
544	544	direction of the department, shall retain the amount of sales and
545	545	use tax revenue and mixed beverage tax revenue determined by the
546	546	department under Subsection (b)(2) or (b)(3) of this section from
547	547	the amounts otherwise required to be sent to the municipality under
548	548	Sections 321.502 and 183.051(b), Tax Code, or to the county under
549	549	Sections 323.502 and 183.051(b), Tax Code, and deposit into the
550	550	trust fund the tax revenues, less any amount of the revenue that the
551	551	municipality or county determines is necessary to meet the
552	552	obligations of the municipality or county. The comptroller shall
553	553	begin retaining and depositing the local tax revenues with the
554	554	first distribution of that tax revenue that occurs after the first
555	555	day of the one-year period described by Subsection (b) of this
556	556	section or at a time otherwise determined to be practicable by the
557	557	department [comptroller] and shall discontinue retaining the local
558	558	tax revenues under this subsection when the amount of the
559	559	applicable tax revenue determined by the department under
560	560	Subsection (b)(2) or (b)(3) of this section has been retained. The
561	561	Major Events trust fund is established outside the state treasury
562	562	and is held in trust by the comptroller for administration of this
563	563	Act. Money in the trust fund may be disbursed by the department
564	564	[comptroller] without appropriation only as provided by this
565	565	section.
566	566	(d-1) Not later than the 90th day after the last day of an
567	567	event and in lieu of the local tax revenues remitted [to] or
568	568	retained [by the comptroller] under Subsection (d) of this section,
569	569	a municipality or county may remit to the department [comptroller]
570	570	for deposit in the Major Events trust fund other local funds in an
571	571	amount equal to the total amount of local tax revenue determined by
572	572	the department under Subsections (b)(2) through (5) of this
573	573	section. The amount deposited by the department [comptroller]
574	574	into the Major Events trust fund under this subsection is subject to
575	575	Subsection (f) of this section.
576	576	(e) In addition to the tax revenue deposited in the Major
577	577	Events trust fund under Subsection (d) of this section, an
578	578	endorsing municipality or endorsing county may guarantee its
579	579	obligations under an event support contract and this section by
580	580	pledging surcharges from user fees, including parking or ticket
581	581	fees, charged in connection with the event. An endorsing
582	582	municipality or endorsing county may collect and remit to the
583	583	department [comptroller] surcharges and user fees attributable to
584	584	the event for deposit into the Major Events trust fund.
585	585	(f) The comptroller, at the direction of the department,
586	586	shall transfer [deposit] into the Major Events trust fund a portion
587	587	of the state tax revenue not to exceed the amount determined by the
588	588	department under Subsection (b)(1) of this section in an amount
589	589	equal to 6.25 times the amount of the local revenue retained or
590	590	remitted under this section, including:
591	591	(1) local sales and use tax revenue;
592	592	(2) mixed beverage tax revenue;
593	593	(3) hotel occupancy tax revenue; and
594	594	(4) surcharge and user fee revenue.
595	595	(i) A local organizing committee, endorsing municipality,
596	596	or endorsing county shall provide information required by the
597	597	department [comptroller] to enable the department [comptroller] to
598	598	fulfill the department's [comptroller's] duties under this section,
599	599	including annual audited statements of any financial records
600	600	required by a site selection organization and data obtained by the
601	601	local organizing committee, an endorsing municipality, or an
602	602	endorsing county relating to attendance at the event, including an
603	603	estimate of the number of people expected to attend the event who
604	604	are not residents of this state, and to the economic impact of the
605	605	event. A local organizing committee, endorsing municipality, or
606	606	endorsing county must provide an annual audited financial statement
607	607	required by the department [comptroller], if any, not later than
608	608	the end of the fourth month after the date the period covered by the
609	609	financial statement ends. After the conclusion of an event and on
610	610	the department's [comptroller's] request, a local organizing
611	611	committee, endorsing municipality, or endorsing county must
612	612	provide information relating to the event, such as attendance
613	613	figures, including an estimate of the number of attendees at the
614	614	event who are not residents of this state, financial information,
615	615	or other public information held by the local organizing committee,
616	616	endorsing municipality, or endorsing county that the department
617	617	[comptroller] considers necessary.
618	618	(j) Not later than the 30th day after the date a request of a
619	619	local organizing committee, endorsing municipality, or endorsing
620	620	county is submitted to the department [comptroller] under
621	621	Subsection (b-1) of this section, the department [comptroller]
622	622	shall provide an estimate of the total amount of tax revenue that
623	623	would be deposited in the Major Events trust fund under this section
624	624	in connection with that event, if the event were to be held in this
625	625	state at a site selected pursuant to an application by a local
626	626	organizing committee, endorsing municipality, or endorsing
627	627	county. A local organizing committee, endorsing municipality, or
628	628	endorsing county may submit the department's [comptroller's]
629	629	estimate to a site selection organization.
630	630	(k) The department [comptroller] may make a disbursement
631	631	from the Major Events trust fund on the prior approval of each
632	632	contributing endorsing municipality or endorsing county for a
633	633	purpose for which a local organizing committee, an endorsing
634	634	municipality, or an endorsing county or the state is obligated
635	635	under a game support contract or event support contract. If an
636	636	obligation is incurred under a games support contract or event
637	637	support contract to make a structural improvement to the site or to
638	638	add a fixture to the site for purposes of an event and that
639	639	improvement or fixture is expected to derive most of its value in
640	640	subsequent uses of the site for future events, a disbursement from
641	641	the trust fund made for purposes of that obligation is limited to
642	642	five percent of the cost of the improvement or fixture and the
643	643	remainder of the obligation is not eligible for a disbursement from
644	644	the trust fund, unless the improvement or fixture is for a publicly
645	645	owned facility. In considering whether to make a disbursement from
646	646	the trust fund, the department [comptroller] may not consider a
647	647	contingency clause in an event support contract as relieving a
648	648	local organizing committee's, endorsing municipality's, or
649	649	endorsing county's obligation to pay a cost under the contract. A
650	650	disbursement may not be made from the trust fund that the department
651	651	[comptroller] determines would be used for the purpose of
652	652	soliciting the relocation of a professional sports franchise
653	653	located in this state.
654	654	(l) If a disbursement is made from the Major Events trust
655	655	fund under Subsection (k) of this section, the obligation shall be
656	656	satisfied proportionately from the state and local revenue in the
657	657	trust fund.
658	658	(m) On payment of all state, municipal, or county
659	659	obligations under a game support contract or event support contract
660	660	related to the location of any particular event in the state, the
661	661	department [comptroller] shall remit to each endorsing entity, in
662	662	proportion to the amount contributed by the entity, any money
663	663	remaining in the trust fund.
664	664	(p) The department [comptroller] may not undertake any of
665	665	the responsibilities or duties set forth in this section unless:
666	666	(1) a request is submitted by the municipality or the
667	667	county in which the event will be located;
668	668	(2) the event meets all the requirements for funding
669	669	under this section, including Subsection (a-1) of this section; and
670	670	(3) the request is accompanied by documentation from a
671	671	site selection organization selecting the site for the event.
672	672	(v) The department [comptroller] may adopt rules necessary
673	673	to implement this section.
674	674	(w) Not later than 10 months after the last day of an event
675	675	eligible for disbursements from the Major Events trust fund for
676	676	costs associated with the event, the department [comptroller] using
677	677	existing resources shall complete a study in the market area of the
678	678	event on the measurable economic impact directly attributable to
679	679	the preparation for and presentation of the event and related
680	680	activities. The department [comptroller] shall post on the
681	681	department's [comptroller's] Internet website:
682	682	(1) the results of the study conducted under this
683	683	subsection, including any source documentation or other
684	684	information relied on by the department [comptroller] for the
685	685	study;
686	686	(2) the amount of incremental increase in tax receipts
687	687	for the event determined by the department under Subsection (b) of
688	688	this section;
689	689	(3) the site selection organization documentation
690	690	described in Subsection (p)(3) of this section;
691	691	(4) any source documentation or information described
692	692	under Subsection (i) of this section that was relied on by the
693	693	department [comptroller] in making the determination of the amount
694	694	of incremental increase in tax receipts under Subsection (b) of
695	695	this section; and
696	696	(5) documentation verifying that:
697	697	(A) a request submitted by a local organizing
698	698	committee, endorsing municipality, or endorsing county under
699	699	Subsection (p) of this section is complete and certified as such by
700	700	the department [comptroller];
701	701	(B) the determination on the amount of
702	702	incremental increases in tax receipts under Subsection (b) of this
703	703	section considered the information submitted by a local organizing
704	704	committee, endorsing municipality, or endorsing county as required
705	705	under Subsection (b-1) of this section; and
706	706	(C) each deadline established under this section
707	707	was timely met.
708	708	(y) After the conclusion of an event, the department
709	709	[comptroller] shall compare information on the actual attendance
710	710	figures provided to the department [comptroller] under Subsection
711	711	(i) of this section with the estimated attendance numbers used to
712	712	determine the incremental increase in tax receipts under Subsection
713	713	(b) of this section. If the actual attendance figures are
714	714	significantly lower than the estimated attendance numbers, the
715	715	department [comptroller] may reduce the amount of a disbursement
716	716	for an endorsing entity under the Major Events trust fund in
717	717	proportion to the discrepancy between the actual and estimated
718	718	attendance and in proportion to the amount contributed to the fund
719	719	by the entity. The department [comptroller] by rule shall define
720	720	"significantly lower" for purposes of this subsection and provide
721	721	the manner in which a disbursement may be proportionately reduced.
722	722	This subsection does not affect the remittance of any money
723	723	remaining in the fund in accordance with Subsection (m) of this
724	724	section.
725	725	SECTION 7. Sections 5B(b), (c), (d), (f), (g), (i), (j),
726	726	(k), (m), and (o), Chapter 1507 (S.B. 456), Acts of the 76th
727	727	Legislature, Regular Session, 1999 (Article 5190.14, Vernon's
728	728	Texas Civil Statutes), are amended to read as follows:
729	729	(b) If a site selection organization selects a site for a
730	730	motor sports racing event in this state pursuant to an application
731	731	by a local organizing committee, endorsing municipality, or
732	732	endorsing county, not later than three months before the date of the
733	733	motor sports racing event, the department [comptroller] shall
734	734	determine for the 30-day period that ends at the end of the day
735	735	after the date on which the racing event will be held, in accordance
736	736	with procedures developed by the department [comptroller]:
737	737	(1) the incremental increase in the receipts to the
738	738	state from taxes imposed under Chapters 151, 152, 156, and 183, Tax
739	739	Code, and under Title 5, Alcoholic Beverage Code, within the market
740	740	areas designated under Subsection (c) of this section, that is
741	741	directly attributable, as determined by the department
742	742	[comptroller], to the preparation for and presentation of the
743	743	racing event;
744	744	(2) the incremental increase in the receipts collected
745	745	by the state on behalf of each endorsing municipality in the market
746	746	area from the sales and use tax imposed by each endorsing
747	747	municipality under Section 321.101(a), Tax Code, and the mixed
748	748	beverage tax revenue to be received by each endorsing municipality
749	749	under Section 183.051(b), Tax Code, that is directly attributable,
750	750	as determined by the department [comptroller], to the preparation
751	751	for and presentation of the racing event;
752	752	(3) the incremental increase in the receipts collected
753	753	by the state on behalf of each endorsing county in the market area
754	754	from the sales and use tax imposed by each endorsing county under
755	755	Section 323.101(a), Tax Code, and the mixed beverage tax revenue to
756	756	be received by each endorsing county under Section 183.051(b), Tax
757	757	Code, that is directly attributable, as determined by the
758	758	department [comptroller], to the preparation for and presentation
759	759	of the racing event;
760	760	(4) the incremental increase in the receipts collected
761	761	by each endorsing municipality in the market area from the hotel
762	762	occupancy tax imposed under Chapter 351, Tax Code, that is directly
763	763	attributable, as determined by the department [comptroller], to the
764	764	preparation for and presentation of the racing event; and
765	765	(5) the incremental increase in the receipts collected
766	766	by each endorsing county in the market area from the hotel occupancy
767	767	tax imposed under Chapter 352, Tax Code, that is directly
768	768	attributable, as determined by the department [comptroller], to the
769	769	preparation for and presentation of the racing event.
770	770	(c) For the purposes of Subsection (b)(1) of this section,
771	771	the department [comptroller] shall designate as a market area for
772	772	the motor sports racing event each area in which the department
773	773	[comptroller] determines there is a reasonable likelihood of
774	774	measurable economic impact directly attributable to the
775	775	preparation for and presentation of the racing event, including
776	776	areas likely to provide venues, accommodations, and services in
777	777	connection with the racing event based on a proposal or other
778	778	information provided by an endorsing municipality, endorsing
779	779	county, or local organizing committee to the department
780	780	[comptroller]. The department [comptroller] shall determine the
781	781	geographic boundaries of each market area. An endorsing
782	782	municipality or endorsing county that has been selected as the site
783	783	for the racing event must be included in a market area for the
784	784	racing event.
785	785	(d) Each endorsing municipality or endorsing county shall
786	786	remit to the comptroller and the comptroller shall deposit into a
787	787	trust fund created by the comptroller, at the direction of the
788	788	department, and designated as the Motor Sports Racing trust fund
789	789	for the particular event the amount of the municipality's or
790	790	county's hotel occupancy tax revenue determined by the department
791	791	under Subsection (b)(4) or (5) of this section, less any amount of
792	792	the revenue that the municipality or county determines is necessary
793	793	to meet the obligations of the municipality or county. The
794	794	comptroller, at the direction of the department, shall retain the
795	795	amount of sales and use tax revenue and mixed beverage tax revenue
796	796	determined by the department under Subsection (b)(2) or (3) of this
797	797	section from the amounts otherwise required to be sent to the
798	798	municipality under Sections 321.502 and 183.051(b), Tax Code, or to
799	799	the county under Sections 323.502 and 183.051(b), Tax Code, and
800	800	deposit into the trust fund the tax revenues, less any amount of the
801	801	revenue that the municipality or county determines is necessary to
802	802	meet the obligations of the municipality or county. The
803	803	comptroller shall begin retaining and depositing the local tax
804	804	revenues with the first distribution of that tax revenue that
805	805	occurs after the first day of the 30-day period described by
806	806	Subsection (b) of this section and shall discontinue retaining the
807	807	local tax revenues under this subsection when the amount of the
808	808	applicable tax revenue determined under Subsection (b)(2) or (3) of
809	809	this section has been retained. The Motor Sports Racing trust fund
810	810	is established outside the state treasury and is held in trust by
811	811	the comptroller for administration of this section. Money in the
812	812	trust fund may be disbursed by the department [comptroller] without
813	813	appropriation only as provided by this section.
814	814	(f) The comptroller, at the direction of the department,
815	815	shall transfer [deposit] a portion of the state tax revenue
816	816	determined by the department under Subsection (b)(1) of this
817	817	section in an amount equal to 6.25 times the amount of the local
818	818	sales and use tax revenue and mixed beverage tax revenue retained
819	819	and the hotel occupancy tax revenue remitted by an endorsing
820	820	municipality or endorsing county under Subsection (d) of this
821	821	section.
822	822	(g) To meet its obligations under a motor sports racing
823	823	event support contract or event support contract to improve,
824	824	renovate, or acquire facilities or to acquire equipment, an
825	825	endorsing municipality by ordinance or an endorsing county by order
826	826	may authorize the issuance of notes. An endorsing municipality or
827	827	endorsing county may provide that the notes be paid from and secured
828	828	by amounts on deposit or amounts to be transferred or deposited into
829	829	the Motor Sports Racing trust fund or surcharges from user fees,
830	830	including parking or ticket fees, charged in connection with the
831	831	racing event. Any note issued must mature not later than seven
832	832	years from its date of issuance.
833	833	(i) A local organizing committee, endorsing municipality,
834	834	or endorsing county shall provide information required by the
835	835	department [comptroller] to enable the department [comptroller] to
836	836	fulfill the department's [comptroller's] duties under this section,
837	837	including annual audited statements of any financial records
838	838	required by a site selection organization and data obtained by the
839	839	local organizing committee, an endorsing municipality, or an
840	840	endorsing county relating to attendance at the motor sports racing
841	841	event and to the economic impact of the racing event. A local
842	842	organizing committee, endorsing municipality, or endorsing county
843	843	must provide an annual audited financial statement required by the
844	844	department [comptroller], if any, not later than the end of the
845	845	fourth month after the date the period covered by the financial
846	846	statement ends.
847	847	(j) The department [comptroller] shall provide an estimate
848	848	not later than three months before the date of a motor sports racing
849	849	event of the total amount of tax revenue that would be transferred
850	850	to or deposited in the Motor Sports Racing trust fund under this
851	851	section in connection with that racing event, if the racing event
852	852	were to be held in this state at a site selected pursuant to an
853	853	application by a local organizing committee, endorsing
854	854	municipality, or endorsing county. The department [comptroller]
855	855	shall provide the estimate on request to a local organizing
856	856	committee, endorsing municipality, or endorsing county. A local
857	857	organizing committee, endorsing municipality, or endorsing county
858	858	may submit the department's [comptroller's] estimate to a site
859	859	selection organization.
860	860	(k) The department [comptroller] may make a disbursement
861	861	from the Motor Sports Racing trust fund on the prior approval of
862	862	each contributing endorsing municipality or endorsing county for a
863	863	purpose for which an endorsing municipality or endorsing county or
864	864	the state is obligated under a motor sports racing event support
865	865	contract or event support contract. A disbursement may not be made
866	866	from the trust fund that the department [comptroller] determines
867	867	would be used for the purpose of soliciting the relocation of a
868	868	professional sports franchise located in this state.
869	869	(m) On payment of all state, municipal, or county
870	870	obligations under a motor sports racing support contract or event
871	871	support contract related to the location of any particular racing
872	872	event in the state, the department [comptroller] shall remit to
873	873	each endorsing entity, in proportion to the amount contributed by
874	874	the entity, any money remaining in the trust fund.
875	875	(o) The department [comptroller] may not undertake any of
876	876	the responsibilities or duties set forth in this section unless a
877	877	request is submitted by the municipality and the county in which the
878	878	motor sports racing event will be held. The request must be
879	879	accompanied by documentation from a site selection organization
880	880	selecting the site for the racing event.
881	881	SECTION 8. Sections 5C(b), (b-1), (c), (c-1), (d), (d-1),
882	882	(e), (f), (g), (i), (j), (k), (k-1), (m), (o), (p), (q), (r), and
883	883	(t), Chapter 1507 (S.B. 456), Acts of the 76th Legislature, Regular
884	884	Session, 1999 (Article 5190.14, Vernon's Texas Civil Statutes), are
885	885	amended to read as follows:
886	886	(b) If a site selection organization selects a site for an
887	887	event in this state pursuant to an application by a local organizing
888	888	committee, endorsing municipality, or endorsing county, not later
889	889	than three months before the date of the event, the department
890	890	[comptroller] shall determine for the 30-day period that ends at
891	891	the end of the day after the date on which the event will be held or,
892	892	if the event occurs on more than one day, after the last date on
893	893	which the event will be held, in accordance with procedures
894	894	developed by the department [comptroller]:
895	895	(1) the incremental increase in the receipts to this
896	896	state from taxes imposed under Chapters 151, 152, 156, and 183, Tax
897	897	Code, and under Title 5, Alcoholic Beverage Code, within the market
898	898	areas designated under Subsection (c) of this section, that is
899	899	directly attributable, as determined by the department
900	900	[comptroller], to the preparation for and presentation of the event
901	901	and related activities;
902	902	(2) the incremental increase in the receipts collected
903	903	by this state on behalf of each endorsing municipality in the market
904	904	area from the sales and use tax imposed by each endorsing
905	905	municipality under Section 321.101(a), Tax Code, and the mixed
906	906	beverage tax revenue to be received by each endorsing municipality
907	907	under Section 183.051(b), Tax Code, that is directly attributable,
908	908	as determined by the department [comptroller], to the preparation
909	909	for and presentation of the event and related activities;
910	910	(3) the incremental increase in the receipts collected
911	911	by this state on behalf of each endorsing county in the market area
912	912	from the sales and use tax imposed by each endorsing county under
913	913	Section 323.101(a), Tax Code, and the mixed beverage tax revenue to
914	914	be received by each endorsing county under Section 183.051(b), Tax
915	915	Code, that is directly attributable, as determined by the
916	916	department [comptroller], to the preparation for and presentation
917	917	of the event and related activities;
918	918	(4) the incremental increase in the receipts collected
919	919	by each endorsing municipality in the market area from the hotel
920	920	occupancy tax imposed under Chapter 351, Tax Code, that is directly
921	921	attributable, as determined by the department [comptroller], to the
922	922	preparation for and presentation of the event and related
923	923	activities; and
924	924	(5) the incremental increase in the receipts collected
925	925	by each endorsing county in the market area from the hotel occupancy
926	926	tax imposed under Chapter 352, Tax Code, that is directly
927	927	attributable, as determined by the department [comptroller], to the
928	928	preparation for and presentation of the event and related
929	929	activities.
930	930	(b-1) The number of requests for funding under this section
931	931	that may be submitted by an endorsing county or endorsing
932	932	municipality during any 12-month period for an event for which the
933	933	department [comptroller] determines that the total amount of the
934	934	incremental increase in tax receipts under Subsection (b) of this
935	935	section is less than $200,000 is limited to, during any 12-month
936	936	period, not more than 10 events, only three of which may be
937	937	nonsporting events.
938	938	(c) For the purposes of Subsection (b)(1) of this section,
939	939	the department [comptroller] shall designate as a market area for
940	940	the event each area in which the department [comptroller]
941	941	determines there is a reasonable likelihood of measurable economic
942	942	impact directly attributable to the preparation for and
943	943	presentation of the event and related activities, including areas
944	944	likely to provide venues, accommodations, and services in
945	945	connection with the event based on the proposal provided by the
946	946	local organizing committee to the department [comptroller]. The
947	947	department [comptroller] shall determine the geographic boundaries
948	948	of each market area. An endorsing municipality or endorsing county
949	949	that has been selected as the site for the event must be included in
950	950	a market area for the event.
951	951	(c-1) The department [comptroller] shall base the
952	952	determination specified by Subsection (b) of this section on
953	953	information submitted by the local organizing committee, endorsing
954	954	municipality, or endorsing county, and must make the determination
955	955	not later than the 30th day after the date the department
956	956	[comptroller] receives the information.
957	957	(d) Each endorsing municipality or endorsing county shall
958	958	remit to the comptroller and the comptroller shall deposit into a
959	959	trust fund created by the comptroller, at the direction of the
960	960	department, and designated as the Events trust fund the amount of
961	961	the municipality's or county's hotel occupancy tax revenue
962	962	determined by the department under Subsection (b)(4) or (5) of this
963	963	section, less any amount of the revenue that the municipality or
964	964	county determines is necessary to meet the obligations of the
965	965	municipality or county. The comptroller, at the direction of the
966	966	department, shall retain the amount of sales and use tax revenue and
967	967	mixed beverage tax revenue determined by the department under
968	968	Subsection (b)(2) or (3) of this section from the amounts otherwise
969	969	required to be sent to the municipality under Sections 321.502 and
970	970	183.051(b), Tax Code, or to the county under Sections 323.502 and
971	971	183.051(b), Tax Code, and deposit into the trust fund the tax
972	972	revenues, less any amount of the revenue that the municipality or
973	973	county determines is necessary to meet the obligations of the
974	974	municipality or county. The comptroller shall begin retaining and
975	975	depositing the local tax revenues with the first distribution of
976	976	that tax revenue that occurs after the first day of the period
977	977	described by Subsection (b) of this section or at a time otherwise
978	978	determined to be practicable by the department [comptroller] and
979	979	shall discontinue retaining the local tax revenues under this
980	980	subsection when the amount of the applicable tax revenue determined
981	981	by the department under Subsection (b)(2) or (3) of this section has
982	982	been retained. The Events trust fund is established outside the
983	983	state treasury and is held in trust by the comptroller for
984	984	administration of this section. Money in the trust fund may be
985	985	disbursed by the department [comptroller] without appropriation
986	986	only as provided by this section.
987	987	(d-1) Not later than the 90th day after the last day of an
988	988	event and in lieu of the local tax revenues remitted [to] or
989	989	retained [by the comptroller] under Subsection (d) of this section,
990	990	a municipality or county may remit to the department [comptroller]
991	991	for deposit in the Events trust fund other local funds in an amount
992	992	equal to the total amount of local tax revenue determined by the
993	993	department under Subsections (b)(2) through (5) of this section.
994	994	The amount deposited by the department [comptroller] into the
995	995	Events trust fund under this subsection is subject to Subsection
996	996	(f) of this section.
997	997	(e) In addition to the tax revenue deposited in the Events
998	998	trust fund under Subsection (d) of this section, an endorsing
999	999	municipality or endorsing county may guarantee its obligations
1000	1000	under an event support contract and this section by pledging
1001	1001	surcharges from user fees, including parking or ticket fees,
1002	1002	charged in connection with the event. An endorsing municipality or
1003	1003	endorsing county may collect and remit to the department
1004	1004	[comptroller] surcharges and user fees attributable to the event
1005	1005	for deposit into the Events trust fund.
1006	1006	(f) The comptroller, at the direction of the department,
1007	1007	shall transfer [deposit] into the Events trust fund a portion of the
1008	1008	state tax revenue not to exceed the amount determined by the
1009	1009	department under Subsection (b)(1) of this section in an amount
1010	1010	equal to 6.25 times the amount of the local tax revenue retained or
1011	1011	remitted under this section, including:
1012	1012	(1) local sales and use tax revenue;
1013	1013	(2) mixed beverage tax revenue;
1014	1014	(3) hotel occupancy tax revenue; and
1015	1015	(4) surcharge and user fee revenue.
1016	1016	(g) To meet its obligations under an event support contract
1017	1017	to improve, construct, renovate, or acquire facilities or to
1018	1018	acquire equipment, an endorsing municipality by ordinance or an
1019	1019	endorsing county by order may authorize the issuance of notes. An
1020	1020	endorsing municipality or endorsing county may provide that the
1021	1021	notes be paid from and secured by amounts on deposit or amounts to
1022	1022	be transferred or deposited into the Events trust fund or
1023	1023	surcharges from user fees, including parking or ticket fees,
1024	1024	charged in connection with the event. Any note issued must mature
1025	1025	not later than seven years from its date of issuance.
1026	1026	(i) A local organizing committee, endorsing municipality,
1027	1027	or endorsing county shall provide information required by the
1028	1028	department [comptroller] to enable the department [comptroller] to
1029	1029	fulfill the department's [comptroller's] duties under this section,
1030	1030	including annual audited statements of any financial records
1031	1031	required by a site selection organization and data obtained by the
1032	1032	local organizing committee, an endorsing municipality, or an
1033	1033	endorsing county relating to attendance at the event, including an
1034	1034	estimate of the number of people expected to attend the event who
1035	1035	are not residents of this state, and to the economic impact of the
1036	1036	event. A local organizing committee, endorsing municipality, or
1037	1037	endorsing county must provide an annual audited financial statement
1038	1038	required by the department [comptroller], if any, not later than
1039	1039	the end of the fourth month after the date the period covered by the
1040	1040	financial statement ends. After the conclusion of an event and on
1041	1041	the department's [comptroller's] request, a local organizing
1042	1042	committee, endorsing municipality, or endorsing county must
1043	1043	provide information relating to the event, such as attendance
1044	1044	figures, including an estimate of the number of people who are not
1045	1045	residents of this state who attended the event, financial
1046	1046	information, or other public information held by the local
1047	1047	organizing committee, endorsing municipality, or endorsing county
1048	1048	that the department [comptroller] considers necessary.
1049	1049	(j) The department [comptroller] shall provide an estimate
1050	1050	not later than three months before the date of an event of the total
1051	1051	amount of tax revenue that would be transferred into or deposited in
1052	1052	the Events trust fund under this section in connection with that
1053	1053	event, if the event were to be held in this state at a site selected
1054	1054	pursuant to an application by a local organizing committee,
1055	1055	endorsing municipality, or endorsing county. The department
1056	1056	[comptroller] shall provide the estimate on request to a local
1057	1057	organizing committee, endorsing municipality, or endorsing county.
1058	1058	A local organizing committee, endorsing municipality, or endorsing
1059	1059	county may submit the department's [comptroller's] estimate to a
1060	1060	site selection organization.
1061	1061	(k) The department [comptroller] may make a disbursement
1062	1062	from the Events trust fund on the prior approval of each
1063	1063	contributing endorsing municipality or endorsing county for a
1064	1064	purpose for which a local organizing committee, an endorsing
1065	1065	municipality, or an endorsing county or this state is obligated
1066	1066	under an event support contract, including an obligation to pay
1067	1067	costs incurred in the conduct of the event and costs incurred in
1068	1068	making preparations necessary for the event. If an obligation is
1069	1069	incurred under an event support contract to make a structural
1070	1070	improvement to the site or to add a fixture to the site for purposes
1071	1071	of an event and that improvement or fixture is expected to derive
1072	1072	most of its value in subsequent uses of the site for future events,
1073	1073	a disbursement from the trust fund made for purposes of that
1074	1074	obligation is limited to five percent of the cost of the improvement
1075	1075	or fixture and the remainder of the obligation is not eligible for a
1076	1076	disbursement from the trust fund, unless the improvement or fixture
1077	1077	is for a publicly owned facility. In considering whether to make a
1078	1078	disbursement from the trust fund, the department [comptroller] may
1079	1079	not consider a contingency clause in an event support contract as
1080	1080	relieving a local organizing committee's, endorsing
1081	1081	municipality's, or endorsing county's obligation to pay a cost
1082	1082	under the contract.
1083	1083	(k-1) A disbursement may not be made from the trust fund
1084	1084	that the department [comptroller] determines would be used for the
1085	1085	purpose of:
1086	1086	(1) soliciting the relocation of a professional sports
1087	1087	franchise located in this state;
1088	1088	(2) constructing an arena, stadium, or convention
1089	1089	center; or
1090	1090	(3) conducting usual and customary maintenance of a
1091	1091	facility.
1092	1092	(m) On payment of all state, municipal, or county
1093	1093	obligations under an event support contract related to the location
1094	1094	of any particular event in this state, the department [comptroller]
1095	1095	shall remit to each endorsing entity, in proportion to the amount
1096	1096	contributed by the entity, any money remaining in the Events trust
1097	1097	fund.
1098	1098	(o) The department [comptroller] may not undertake any of
1099	1099	the responsibilities or duties set forth in this section unless a
1100	1100	request is submitted by the municipality or the county in which the
1101	1101	event will be located. The request must be accompanied by
1102	1102	documentation from a site selection organization selecting the site
1103	1103	for the event.
1104	1104	(p) The department [comptroller] may adopt rules necessary
1105	1105	to implement this section.
1106	1106	(q) In determining the amount of state revenue available
1107	1107	under Subsection (b)(1) of this section, the department
1108	1108	[comptroller] may consider whether:
1109	1109	(1) the event has been held in this state on previous
1110	1110	occasions; and
1111	1111	(2) changes to the character of the event could affect
1112	1112	the incremental increase in receipts collected and remitted to the
1113	1113	state by an endorsing county or endorsing municipality under that
1114	1114	subsection.
1115	1115	(r) The department [comptroller] may adopt a model event
1116	1116	support contract and make the contract available on the
1117	1117	department's [comptroller's] Internet website. The adoption by
1118	1118	the department [comptroller] of a model event support contract
1119	1119	under this subsection does not require use of the model event
1120	1120	support contract for purposes of this section.
1121	1121	(t) After the conclusion of an event, the department
1122	1122	[comptroller] shall compare information on the actual attendance
1123	1123	figures provided to the department [comptroller] under Subsection
1124	1124	(i) of this section with the estimated attendance numbers used to
1125	1125	determine the incremental increase in tax receipts under Subsection
1126	1126	(b) of this section. If the actual attendance figures are
1127	1127	significantly lower than the estimated attendance numbers, the
1128	1128	department [comptroller] may reduce the amount of a disbursement
1129	1129	for an endorsing entity under the Events trust fund in proportion to
1130	1130	the discrepancy between the actual and estimated attendance and in
1131	1131	proportion to the amount contributed to the fund by the entity. The
1132	1132	department [comptroller] by rule shall define "significantly
1133	1133	lower" for purposes of this subsection and provide the manner in
1134	1134	which a disbursement may be proportionately reduced. This
1135	1135	subsection does not affect the remittance of any money remaining in
1136	1136	the fund in accordance with Subsection (m) of this section.
1137	1137	SECTION 9. Section 6(b), Chapter 1507 (S.B. 456), Acts of
1138	1138	the 76th Legislature, Regular Session, 1999 (Article 5190.14,
1139	1139	Vernon's Texas Civil Statutes), is amended to read as follows:
1140	1140	(b) If an endorsing municipality or endorsing county is
1141	1141	required to hold an election under this section and the
1142	1142	contribution of a portion of the municipality's or county's sales
1143	1143	and use taxes to the Olympic Games trust fund under Section 5 of
1144	1144	this Act is not approved by a majority of the voters voting in the
1145	1145	election:
1146	1146	(1) the comptroller may not establish the Olympic
1147	1147	Games trust fund under Section 5 of this Act, may not retain the
1148	1148	municipality's or county's tax revenue under Section 5(d) of this
1149	1149	Act from amounts otherwise required to be sent to that municipality
1150	1150	or county, and may not transfer [deposit] any state tax revenue into
1151	1151	the trust fund;
1152	1152	(2) the department [comptroller] is not required to
1153	1153	determine the incremental increase in state, county, or municipal
1154	1154	tax revenue under Section 5(b) of this Act; and
1155	1155	(3) the department may not enter into a games support
1156	1156	contract relating to the games for which the municipality or county
1157	1157	has authorized a bid on its behalf.
1158	1158	SECTION 10. The following laws are repealed:
1159	1159	(1) Section 5C(s), Chapter 1507 (S.B. 456), Acts of
1160	1160	the 76th Legislature, Regular Session, 1999 (Article 5190.14,
1161	1161	Vernon's Texas Civil Statutes); and
1162	1162	(2) Chapter 398, Local Government Code.
1163	1163	SECTION 11. As soon as is practicable after the effective
1164	1164	date of this Act, but not later than September 10, 2015, the office
1165	1165	of the governor and the comptroller of public accounts shall
1166	1166	develop and adopt a memorandum of understanding that:
1167	1167	(1) identifies in detail the applicable powers and
1168	1168	duties of the comptroller that are being transferred to the office
1169	1169	of the governor as a result of this Act; and
1170	1170	(2) establishes a plan for the identification and
1171	1171	transfer of records, property, and unspent appropriations of the
1172	1172	comptroller that are used for purposes of managing the funds
1173	1173	transferred to the office of the governor.
1174	1174	SECTION 12. (a) Not later than September 10, 2015:
1175	1175	(1) the administration of the Pan American Games trust
1176	1176	fund, Olympic Games trust fund, Major Events trust fund, Motor
1177	1177	Sports Racing trust fund, and Events trust fund for sporting and
1178	1178	non-sporting events shall be transferred from the comptroller of
1179	1179	public accounts to the Texas Economic Development and Tourism
1180	1180	Office;
1181	1181	(2) all rules, forms, policies, procedures, or
1182	1182	decisions of the comptroller that are related to the trust funds
1183	1183	described by Subdivision (1) of this subsection are continued in
1184	1184	effect as rules, forms, policies, procedures, or decisions of the
1185	1185	economic development and tourism division, office of the governor,
1186	1186	until superseded by a rule or other appropriate act of the Texas
1187	1187	Economic Development and Tourism Office; and
1188	1188	(3) a reference in law or administrative rule to the
1189	1189	comptroller relating to the decisions for and administration of the
1190	1190	trust funds described by Subdivision (1) of this subsection, other
1191	1191	than a duty typically performed by the comptroller related to a
1192	1192	state fund, means the Texas Economic Development and Tourism
1193	1193	Office.
1194	1194	(b) Before the transfer of the administration of the Pan
1195	1195	American Games trust fund, Olympic Games trust fund, Major Events
1196	1196	trust fund, Motor Sports Racing trust fund, and Events trust fund
1197	1197	for sporting and non-sporting events, the comptroller and the Texas
1198	1198	Economic Development and Tourism Office shall coordinate the
1199	1199	transfer of powers and duties, including records and other items,
1200	1200	in accordance with the memorandum of understanding adopted under
1201	1201	Section 11 of this Act, to ensure a smooth transition.
1202	1202	SECTION 13. Notwithstanding the repeal by this Act of
1203	1203	Chapter 398, Local Government Code, a special event plan approved
1204	1204	under former Chapter 398 of that code before September 1, 2015, is
1205	1205	governed by the law as it existed immediately before the effective
1206	1206	date of this Act, and that law is continued in effect for that
1207	1207	purpose.
1208	1208	SECTION 14. This Act takes effect September 1, 2015.