By: Fraser S.B. No. 633
(In the Senate - Filed February 18, 2015; February 23, 2015,
read first time and referred to Committee on Natural Resources and
Economic Development; March 30, 2015, reported adversely, with
favorable Committee Substitute by the following vote: Yeas 10,
Nays 0; March 30, 2015, sent to printer.)
Click here to see the committee vote
COMMITTEE SUBSTITUTE FOR S.B. No. 633 By: Fraser
A BILL TO BE ENTITLED
AN ACT
relating to a Pan American Games reimbursement fund, an Olympic
Games reimbursement fund, a Major Events reimbursement fund, a
Motor Sports Racing reimbursement fund, an Events reimbursement
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. The heading to Section 4, Chapter 1507 (S.B.
456), Acts of the 76th Legislature, Regular Session, 1999 (Article
5190.14, Vernon's Texas Civil Statutes), is amended to read as
follows:
Sec. 4. GUARANTEE OF STATE AND MUNICIPAL OBLIGATIONS; PAN
AMERICAN GAMES REIMBURSEMENT [TRUST] FUND.
SECTION 2. Sections 4(b), (c), (d), (f), (g), (h), (j), (k),
and (m), 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 reimbursement [trust] fund equals 14 percent of the
maximum amount of state and municipal tax revenue that may be
transferred to or deposited in the [trust] fund under Subsection
(m) of this section.
(f) Subject to Subsection (m) of this section, the
comptroller, at the direction of the department, shall deposit into
a [trust] fund designated as the Pan American Games reimbursement
[trust] fund the amount of municipal sales and use tax revenue
retained under Subsection (d) of this section and, at the same time,
shall transfer to the fund 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 transfer to the fund [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 reimbursement [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 transferring [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 reimbursement [trust] fund equals 86 percent
of the maximum amount of state and municipal tax revenue that may be
transferred to or deposited in the [trust] fund under Subsection
(m) of this section.
(g) The department may use the money [funds] in the Pan
American Games reimbursement [trust] fund only to fulfill joint
obligations of the state and the endorsing municipality to a site
selection organization under a games support contract or any other
agreement providing assurances from the department or the endorsing
municipality to a site selection organization.
(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 reimbursement [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 reimbursement [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 transferred [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.
(m) In no event may:
(1) the total amount of state and municipal tax
revenue transferred to or deposited in the Pan American Games
reimbursement [trust] fund exceed $20 million; or
(2) the joint liability of the state and the endorsing
municipality under a joinder agreement and any other games support
contracts entered into pursuant to this Act exceed the lesser of:
(A) $20 million; or
(B) the total amount of revenue transferred to or
deposited in the Pan American Games reimbursement [trust] fund and
interest earned on the fund.
SECTION 3. 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,
Regular Session, 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 transferred to or deposited in the Pan American Games
reimbursement [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
reimbursement [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 4. The heading to Section 5, Chapter 1507 (S.B.
456), Acts of the 76th Legislature, Regular Session, 1999 (Article
5190.14, Vernon's Texas Civil Statutes), is amended to read as
follows:
Sec. 5. GUARANTEE OF STATE AND MUNICIPAL OBLIGATIONS;
OLYMPIC GAMES REIMBURSEMENT [TRUST] FUND.
SECTION 5. Sections 5(b), (c), (d), (f), (g), (h), (i), (j),
(k), (l), and (m), 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
reimbursement [trust] fund equals 14 percent of the maximum amount
of state and local tax revenue that may be transferred to or
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, at the direction of the
department, shall deposit into a trust fund designated as the
Olympic Games reimbursement [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, shall transfer to the fund
the state tax revenue determined by the department under Subsection
(b)(1) of this section for the quarter. The Olympic Games
reimbursement [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 transfer [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 reimbursement [trust] fund equals 86 percent of the maximum
amount of state, municipal, and county tax revenue that may be
transferred to or deposited in the [trust] fund under Subsection
(m) of this section.
(g) The department may use the money [funds] in the Olympic
Games reimbursement [trust] fund only to fulfill joint obligations
of the state and each endorsing municipality or endorsing county to
a site selection organization under a games support contract or any
other agreement providing assurances from the department or the
municipality or county to a site selection organization.
(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 transferred to or deposited in the Olympic
Games reimbursement [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 reimbursement [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 reimbursement [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
department [comptroller] shall transfer to the general revenue fund
any money remaining in the Olympic Games reimbursement [trust]
fund, not to exceed the amount of state revenue remaining in the
[trust] fund, plus any interest earned on that state revenue. The
department [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.
(m) In no event may:
(1) the total amount of state, municipal, and county
tax revenue transferred to or deposited in the Olympic Games
reimbursement [trust] fund exceed $100 million; or
(2) the joint liability of the state and an endorsing
municipality or county under a joinder agreement and any other
games support contracts entered into pursuant to this Act exceed
the lesser of:
(A) $100 million; or
(B) the total amount of revenue transferred to or
deposited in the Olympic Games reimbursement [trust] fund and
interest earned on the fund.
SECTION 6. The heading to Section 5A, Chapter 1507 (S.B.
456), Acts of the 76th Legislature, Regular Session, 1999 (Article
5190.14, Vernon's Texas Civil Statutes), is amended to read as
follows:
Sec. 5A. PAYMENT OF STATE AND MUNICIPAL OR COUNTY
OBLIGATIONS; MAJOR EVENTS REIMBURSEMENT [TRUST] FUND.
SECTION 7. 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 8. Sections 5A(a-1), (a-2), (b), (b-1), (c), (d),
(d-1), (e), (f), (g), (i), (j), (k), (l), (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, at the direction of the
department, and designated as the Major Events reimbursement
[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 reimbursement [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 department [comptroller]
for deposit in the Major Events reimbursement [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
department [comptroller] into the Major Events reimbursement
[trust] fund under this subsection is subject to Subsection (f) of
this section.
(e) In addition to the tax revenue deposited in the Major
Events reimbursement [trust] fund under Subsection (d) of this
section, an endorsing municipality or endorsing county may
guarantee its obligations under an event support contract and this
section by pledging surcharges from user fees, including parking or
ticket fees, charged in connection with the event. An endorsing
municipality or endorsing county may collect and remit to the
department [comptroller] surcharges and user fees attributable to
the event for deposit into the Major Events reimbursement [trust]
fund.
(f) The comptroller, at the direction of the department,
shall transfer [deposit] into the Major Events reimbursement
[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.
(g) To meet its obligations under a game support contract or
event support contract to improve, construct, renovate, or acquire
facilities or to acquire equipment, an endorsing municipality by
ordinance or an endorsing county by order may authorize the
issuance of notes. An endorsing municipality or endorsing county
may provide that the notes be paid from and secured by amounts on
deposit or amounts to be deposited into the Major Events
reimbursement [trust] fund or surcharges from user fees, including
parking or ticket fees, charged in connection with the event. Any
note issued must mature not later than seven years from its date of
issuance.
(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 reimbursement [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 reimbursement [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.
(l) If a disbursement is made from the Major Events
reimbursement [trust] fund under Subsection (k) of this section,
the obligation shall be satisfied proportionately from the state
and local revenue in the [trust] fund.
(m) On payment of all state, municipal, or county
obligations under a game support contract or event support contract
related to the location of any particular event in the state, the
department [comptroller] 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 reimbursement
[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 reimbursement
[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 9. The heading to Section 5B, Chapter 1507 (S.B.
456), Acts of the 76th Legislature, Regular Session, 1999 (Article
5190.14, Vernon's Texas Civil Statutes), is amended to read as
follows:
Sec. 5B. GUARANTEE OF STATE AND MUNICIPAL OR COUNTY
OBLIGATIONS; MOTOR SPORTS RACING REIMBURSEMENT [TRUST] FUND.
SECTION 10. Sections 5B(b), (c), (d), (e), (f), (g), (h),
(i), (j), (k), (l), (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, at the direction of the
department, and designated as the Motor Sports Racing reimbursement
[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 reimbursement [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.
(e) In addition to the tax revenue deposited in the Motor
Sports Racing reimbursement [trust] fund under Subsection (d) of
this section, an endorsing municipality or endorsing county may
guarantee its obligations under a motor sports racing event support
contract and this section by pledging surcharges from user fees,
including parking or ticket fees, charged in connection with the
racing event.
(f) The comptroller, at the direction of the department,
shall transfer [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.
(g) To meet its obligations under a motor sports racing
event support contract or event support contract to improve,
renovate, or acquire facilities or to acquire equipment, an
endorsing municipality by ordinance or an endorsing county by order
may authorize the issuance of notes. An endorsing municipality or
endorsing county may provide that the notes be paid from and secured
by amounts on deposit or amounts to be transferred or deposited into
the Motor Sports Racing reimbursement [trust] fund or surcharges
from user fees, including parking or ticket fees, charged in
connection with the racing event. Any note issued must mature not
later than seven years from its date of issuance.
(h) The money [funds] in the Motor Sports Racing
reimbursement [trust] fund may be used to pay the principal of and
interest on notes issued by an endorsing municipality or endorsing
county under Subsection (g) of this section and to fulfill
obligations of the state or an endorsing municipality or endorsing
county to a site selection organization under a motor sports racing
event support contract or event support contract, which obligations
may include the payment of costs relating to the preparations
necessary or desirable for the conduct of the racing event and the
payment of costs of conducting the racing event, including
temporary improvements or temporary renovations to existing
facilities or other facilities specific to the event.
(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 transferred
to or deposited in the Motor Sports Racing reimbursement [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 reimbursement [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.
(l) If a disbursement is made from the Motor Sports Racing
reimbursement [trust] fund under Subsection (k) of this section,
the obligation shall be satisfied proportionately from the state
and local revenue in the [trust] fund.
(m) On payment of all state, municipal, or county
obligations under a motor sports racing support contract or event
support contract related to the location of any particular racing
event in the state, the department [comptroller] 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 11. The heading to Section 5C, Chapter 1507 (S.B.
456), Acts of the 76th Legislature, Regular Session, 1999 (Article
5190.14, Vernon's Texas Civil Statutes), is amended to read as
follows:
Sec. 5C. EVENTS REIMBURSEMENT [TRUST] FUND FOR CERTAIN
MUNICIPALITIES AND COUNTIES.
SECTION 12. Sections 5C(b), (b-1), (c), (c-1), (d), (d-1),
(e), (f), (g), (h), (i), (j), (k), (k-1), (k-2), (l), (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, at the direction of the
department, and designated as the Events reimbursement [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 reimbursement
[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 department [comptroller]
for deposit in the Events reimbursement [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 department
[comptroller] into the Events reimbursement [trust] fund under this
subsection is subject to Subsection (f) of this section.
(e) In addition to the tax revenue deposited in the Events
reimbursement [trust] fund under Subsection (d) of this section, an
endorsing municipality or endorsing county may guarantee its
obligations under an event support contract and this section by
pledging surcharges from user fees, including parking or ticket
fees, charged in connection with the event. An endorsing
municipality or endorsing county may collect and remit to the
department [comptroller] surcharges and user fees attributable to
the event for deposit into the Events reimbursement [trust] fund.
(f) The comptroller, at the direction of the department,
shall transfer [deposit] into the Events reimbursement [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.
(g) To meet its obligations under an event support contract
to improve, construct, renovate, or acquire facilities or to
acquire equipment, an endorsing municipality by ordinance or an
endorsing county by order may authorize the issuance of notes. An
endorsing municipality or endorsing county may provide that the
notes be paid from and secured by amounts on deposit or amounts to
be transferred or deposited into the Events reimbursement [trust]
fund or surcharges from user fees, including parking or ticket
fees, charged in connection with the event. Any note issued must
mature not later than seven years from its date of issuance.
(h) The money in the Events reimbursement [trust] fund may
be used to pay the principal of and interest on notes issued by an
endorsing municipality or endorsing county under Subsection (g) of
this section and to fulfill obligations of this state or an
endorsing municipality or endorsing county to a site selection
organization under an event support contract. Subject to
Subsection (k) of this section, the obligations may include the
payment of costs relating to the preparations necessary for the
conduct of the event and the payment of costs of conducting the
event, including improvements or renovations to existing
facilities or other facilities and costs of acquisition or
construction of new facilities or other facilities.
(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 transferred into or deposited in
the Events reimbursement [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 reimbursement [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.
(k-2) Subsection (k-1) of this section does not prohibit:
(1) a disbursement from the [trust] fund for the
construction of temporary structures within an arena, stadium, or
convention, if those temporary structures are necessary for the
conduct of the event; or
(2) temporary maintenance of a facility that is
necessary for the preparation for or conduct of the event.
(l) If a disbursement is made from the Events reimbursement
[trust] fund under Subsection (k) of this section, the obligation
shall be satisfied proportionately from the state and local revenue
in the [trust] fund.
(m) On payment of all state, municipal, or county
obligations under an event support contract related to the location
of any particular event in this state, the department [comptroller]
shall remit to each endorsing entity, in proportion to the amount
contributed by the entity, any money remaining in the Events
reimbursement [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 reimbursement [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 13. Sections 6(a) and (b), 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) Except as provided by Subsections (b) and (d) of this
section, an endorsing municipality or endorsing county must hold an
election in the municipality or county to determine whether the
municipality or county may contribute a portion of its sales and use
taxes to the Olympic Games reimbursement [trust] fund under Section
5 of this Act. The election must be held on a uniform election date
before the date a site selection organization requires the
endorsing municipality or endorsing county and the state to enter
into a joinder undertaking relating to the applicable games.
(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 reimbursement [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 reimbursement [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 transfer [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 14. Section 7(f), 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:
(f) The department may agree to execute a joinder
undertaking, a joinder agreement, or other games support contract
only if:
(1) the department determines that:
(A) the state's assurances and obligations under
the undertaking, agreement, or contract are reasonable; and
(B) any financial commitments of the state will
be satisfied exclusively by recourse to the Pan American Games
reimbursement [trust] fund or the Olympic Games reimbursement
[trust] fund, as applicable; and
(2) the endorsing municipality or endorsing county has
executed an agreement with a site selection organization that
contains substantially similar terms.
SECTION 15. 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 16. 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 17. (a) Not later than September 10, 2015:
(1) the administration of the Pan American Games
reimbursement fund, Olympic Games reimbursement fund, Major Events
reimbursement fund, Motor Sports Racing reimbursement fund, and
Events reimbursement 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 reimbursement fund, Olympic Games reimbursement fund, Major
Events reimbursement fund, Motor Sports Racing reimbursement fund,
and Events reimbursement 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 reimbursement fund, Olympic Games reimbursement
fund, Major Events reimbursement fund, Motor Sports Racing
reimbursement fund, and Events reimbursement 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 reimbursement fund, Olympic Games reimbursement
fund, Major Events reimbursement fund, Motor Sports Racing
reimbursement fund, and Events reimbursement fund for sporting and
non-sporting events, the comptroller of public accounts 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 16 of this Act, to ensure a smooth transition.
SECTION 18. 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 19. This Act takes effect September 1, 2015.
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