HBA-TYH S.B. 456 76(R)    BILL ANALYSIS


Office of House Bill AnalysisS.B. 456
By: Madla
State Affairs
4/23/1999
Engrossed



BACKGROUND AND PURPOSE 

Currently, the City of San Antonio is bidding to host the 2007 Pan American
Games, while the cities of Dallas and Houston are bidding on the 2012
Olympics.  The site selection committees that review these bids require the
bidding cities to submit sufficient evidence with their bid that the state
in which the bidder is located supports the bid and is willing to grant
good faith assurances that the games will be produced in accordance with
the bid should the games be awarded to that city.  S.B. 456 would authorize
the state to provide financial support to persons and municipalities as
well as assurances that Texas Department of Economic Development
commitments will be fulfilled to the site selection organization sponsoring
the games if a state location is the site for the 2007 Pan American Games
or the XXX Olympiad Games in 2012.  Financial support would be provided
through a games support contract supported by a special fund in the
treasury called the Olympics and Pan American Games support fund.  The fund
would be composed of incremental increases in state sales and use tax
revenues that are directly related to the games activities in the
geographical area where the games are to be presented.  S.B. 456
facilitates and supports cooperative efforts of municipalities and counties
to promote economic development by hosting the Pan American Games and the
Olympic Games. 

RULEMAKING AUTHORITY

It is the opinion of the Office of House Bill Analysis that this bill does
not expressly delegate any additional rulemaking authority to a state
officer, department, agency, or institution. 

SECTION BY SECTION ANALYSIS

SECTION 1.  DEFINITIONS.  Defines "department," "endorsing municipality,"
"games," "games support contract," "qualified applicant," "site selection
date," and "site selection organization." 
 
SECTION 2.  PURPOSE.  Provides that if a location in the state is
designated as the site for the 2007 Pan American Games or the XXX Olympiad
Games, the purpose of this Act is to provide financial support to the
municipalities and to provide assurances to the site selection organization
sponsoring the games that commitments made by the state through the Texas
Department of Economic Development (department) in a games support contract
will be fulfilled.  

SECTION 3.  LEGISLATIVE FINDINGS.  Sets forth legislative findings
regarding the 2007 Pan American Games or the XXX Olympiad Games in 2012. 

SECTION 4.  OLYMPICS AND PAN AMERICAN GAMES SUPPORT FUND.  (a)  Requires
the comptroller to determine quarterly incremental increases in sales and
use tax receipts within  an accepted applicant's market area whose site
application has been accepted by the applicable site selection organization
that is reasonably attributable to the successful application and
preparation for and the presentation of the applicable games and related
events, beginning on the first day after the site selection date, if a site
selection organization selects a Texas site for the XXX Olympiad Games or
the 2007 Pan American Games.   

(b)  Requires the comptroller to deposit the amount determined under
Subsection (a) into a special treasury account called the Olympics and Pan
American Games support fund (support fund).  Requires the comptroller to
discontinue depositing the amount at the end  of the third calendar month
following the month in which the closing event of the games occurs.   

(c)  Requires a qualified applicant to propose the geographic market area
boundaries to be used under Subsection (a).  Requires the department to
approve the proposed market area if it includes areas that are likely to be
affected by the conduct of the games the applicant is seeking. 

(d)  Authorizes the department, in its sole discretion, to use the support
fund money to fulfill state obligations to a site selection organization
under a games support contract or any other agreement which provides
assurances from the department to a site selection organization.  Prohibits
money in the fund from being spent except as directed by the department.   

(e)  Prohibits the state funds, other than those funds in the support fund,
from being used for the purposes of this Act. 

SECTION 5.  ASSISTANCE OF DEPARTMENT.  Requires the department to review
requests from a qualified applicant that the department enter into a games
support contract with the applicant. Sets forth the information that must
be included in a request.  Requires the department to approve or deny a
request within 30 days of the date the request is submitted.  Requires the
department to approve a request and enter into a games support contract
with a qualified applicant if the department determines that the specified
conditions are met.  Authorizes the department to provide written
assurances on behalf of the state and qualified applicant to the applicable
site selection organization if the applicant's proposal is accepted and the
identified site is selected, and if necessary in addition to funds provided
by the qualified applicant, the state will provide sufficient funds solely
from money on deposit in the support fund, and from no other  source of
public funds, to pay games presentation costs according to the qualified
applicant's proposal.  Requires a qualified applicant participating in a
games support contract to repay state funds expended  by the department
from a qualified applicant's funds remaining after  incurred expenses have
been met and the presentation of the games.  Authorizes a games support
contract to contain any additional provisions required by the department in
order to meet the purpose of this Act. 

SECTION 6.  GOVERNMENTAL FUNCTIONS.  Provides that an action taken or an
activity conducted under this Act by a qualified applicant or the
department is declared to be an essential governmental function and is not
a proprietary function. 

SECTION 7.Emergency clause.
  Effective date: upon passage.