By Luna                                               S.B. No. 1430
       74R8245 MWV-D
                                 A BILL TO BE ENTITLED
    1-1                                AN ACT
    1-2  relating to dedicating interest earned on trust accounts of
    1-3  professional sports franchises to programs for at-risk youth.
    1-4        BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
    1-5        SECTION 1.  Title 16, Revised Statutes, is amended by adding
    1-6  Article 370 to read as follows:
    1-7        Art. 370.  INTEREST EARNED ON TRUST ACCOUNTS OF PROFESSIONAL
    1-8  SPORTS FRANCHISES DEDICATED TO AT-RISK YOUTH
    1-9        Sec. 1.  DEFINITIONS.  In this article:
   1-10              (1)  "Depository" means a bank, savings and loan
   1-11  association, or savings bank that maintains under this article an
   1-12  interest-bearing trust account for a professional sports franchise
   1-13  for the deposit of escrow funds.
   1-14              (2)  "Professional sports franchise" means a franchise
   1-15  for the operation of a sports team competing in a professional
   1-16  sports league, association, or other organization.
   1-17              (3)  "Season ticket holder" means a person owning a
   1-18  series of tickets valid on various dates during the season of a
   1-19  professional sports team.
   1-20              (4)  "Ticket" means a document or other evidence
   1-21  indicating that the holder has paid for entry to view a competition
   1-22  between professional sports teams.
   1-23        Sec. 2.  VALUE OF TICKETS TO BE HELD IN ESCROW.  A
   1-24  professional sports franchise that allows or requires a season
    2-1  ticket holder to purchase tickets to postseason or play-off games
    2-2  played after the regularly scheduled games of the franchise as part
    2-3  of a purchase of season tickets holds in escrow an amount equal to
    2-4  the portion of the purchase price of those season tickets that is
    2-5  attributable to the tickets to the postseason or play-off games.
    2-6        Sec. 3.  TRUST ACCOUNTS FOR DEPOSIT OF ESCROW FUNDS.  Each
    2-7  professional sports franchise that holds escrow funds under Section
    2-8  2 of this article shall maintain at a depository a pooled
    2-9  interest-bearing trust account for the deposit of those escrow
   2-10  funds.
   2-11        Sec. 4.  AMOUNT OF INTEREST ON TRUST ACCOUNTS.  For each
   2-12  trust account deposited in a depository under Section 3 of this
   2-13  article, the depository shall:
   2-14              (1)  pay at least quarterly to the state treasurer
   2-15  interest earned on the account at a rate of interest not less than
   2-16  the depository's highest current passbook savings account rate,
   2-17  less reasonable service charges computed in accordance with the
   2-18  depository's standard accounting practice; and
   2-19              (2)  send a quarterly statement to the state treasurer
   2-20  showing the name of the professional sports franchise for whom the
   2-21  payment is made, the rate of interest applied, the amount of
   2-22  service charges deducted, and the account balance for the period
   2-23  for which the report is made.
   2-24        Sec. 5.  SET-OFF NOT ALLOWED.  A depository is not  allowed a
   2-25  right of set-off under this article against money owed it by a
   2-26  professional sports franchise that maintains a trust account at the
   2-27  depository under this article.
    3-1        Sec. 6.  SPORTS FOR AT-RISK YOUTH ACCOUNT.  The state
    3-2  treasurer shall credit amounts collected under this article to the
    3-3  sports for at-risk youth account established by Section 80.004,
    3-4  Human Resources Code.
    3-5        Sec. 7.  EFFECT OF ARTICLE.  (a)  This article does not
    3-6  require a depository to perform administrative functions or assume
    3-7  responsibilities or obligations in connection with a trust account
    3-8  except as provided by this article.
    3-9        (b)  This article does not prevent  a professional sports
   3-10  franchise from depositing funds of a season ticket holder in a
   3-11  separate interest-bearing account established on behalf of and for
   3-12  the benefit of the season ticket holder if a written agreement
   3-13  between the professional sports franchise and the season ticket
   3-14  holder expressly provides for a separate account not subject to
   3-15  this article and for interest earned on the account to be paid as
   3-16  provided by that agreement.
   3-17        SECTION 2.  Chapter 80, Human Resources Code, is amended by
   3-18  adding Section 80.004 to read as follows:
   3-19        Sec. 80.004.  SPORTS FOR AT-RISK YOUTH ACCOUNT.  (a)  The
   3-20  sports for at-risk youth account is established as an account in
   3-21  the general revenue fund.  The legislature may appropriate money
   3-22  from the account to the department.
   3-23        (b)  The department may distribute the money only to at-risk
   3-24  youth programs operated by a nonprofit organization affiliated with
   3-25  a professional sports franchise and approved by the department.
   3-26  The department shall adopt rules for the distribution of money to
   3-27  the programs.
    4-1        (c)  The comptroller may audit money collected under this
    4-2  section.
    4-3        SECTION 3.  This Act takes effect September 1, 1995.
    4-4        SECTION 4.  The importance of this legislation and the
    4-5  crowded condition of the calendars in both houses create an
    4-6  emergency and an imperative public necessity that the
    4-7  constitutional rule requiring bills to be read on three several
    4-8  days in each house be suspended, and this rule is hereby suspended.