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.