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


Office of House Bill AnalysisC.S.S.B. 456
By: Madla
State Affairs
5/10/1999
Committee Report (Substituted)



BACKGROUND AND PURPOSE 

San Antonio is a finalist to host the 2007 Pan American Games.  Dallas and
Houston are interested in hosting the 2012 Olympic Games.  The national and
international organizations that govern the games are conditioning their
award on a governmental body's guarantee to assume financial obligations
associated with the games.  C.S.S.B. 456 creates the Pan American Games
trust fund and the Olympic Games trust fund.  The bill authorizes the state
comptroller to determine the amount of incremental sales tax to be
attributed to the games.  This amount will be collected and deposited in
the appropriate fund.  The appropriate fund is initiated only when a Texas
city is awarded the games and becomes a host city. 

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," "joinder agreement," "joinder
undertaking," "local organizing committee," and "site selection
organization." 

SECTION 2.  PURPOSE.  Sets forth the purpose of this Act.

SECTION 3.  LEGISLATIVE FINDINGS.  Provides legislative findings regarding
the effects if the 2007 Pan American Games or the 2012 Olympic Games are
held in this state. 

SECTION 4.  GUARANTEE OF STATE AND MUNICIPAL OBLIGATIONS; PAN AMERICAN
GAMES TRUST FUND.  (a)  Defines "games" as the 2007 Pan American Games and
"site selection organization" as the United States Olympic Committee or the
Pan American Sports Organization. 

(b)  Provides that if a site selection organization selects a site for the
games in this state pursuant to an application by a local organizing
committee (committee), within the specified period of time, the comptroller
is required to determine for each subsequent calendar quarter, in
accordance with procedures developed by the comptroller: 

(1)  the incremental increase in the receipts to the state from the taxes
imposed within the endorsing municipality under Chapters 151 (Limited
Sales, Excise, And Use Tax), Tax Code, that is directly attributable, as
determined by the comptroller, to the preparation for and the presentation
of the applicable games and related events; and   

(2)  the incremental increase in the receipts collected by the state on
behalf of the endorsing municipality from the sales and use tax receipts
under Section 321.101(a) (Tax Authorized), Tax Code, that is directly
attributable, as determined by the comptroller, to the preparation for and
the presentation of the applicable games and related events.  

(c)  Requires the comptroller, subject to SECTION 6 of this Act and for the
purpose of guaranteeing the joint obligations of the state and the
endorsing municipality under a games support contract and this Act, to
retain the amount of municipal sales and use tax  revenue determined under
Subsection (b)(2) from the amount otherwise required to be sent to the
municipality under Section 321.502 (Distribution of Trust Funds), Tax Code,
beginning with the specified period.  Requires the comptroller to
discontinue retaining municipal sales and use tax revenue on the earlier of
the two specified dates. 

(d)  Authorizes an endorsing municipality, in addition to municipal sales
and use tax revenue retained, to guarantee its obligations under a games
support contract and this Act by pledging surcharges from user fees charged
in connection with presentation of the game. 

(e)  Requires the comptroller, subject to SECTION 6 of this Act, to deposit
the amount of state tax revenue determined under Subsection (b)(1) and the
amount of municipal sales and use tax retained under Subsection (c) into a
trust fund designated as the Pan American Games trust fund (fund).
Provides that the fund is established outside the treasury but is held in
trust by the comptroller for the administration of this Act. Authorizes
money in the fund to be spent by the Texas Department of Economic
Development (department) without appropriation only as provided by the Act.
Requires the comptroller to discontinue deposit of the amount of state tax
revenue determined under Subsection (b)(1) on the earlier of the two
specified dates. 

(f)  Authorizes the endorsing municipality to deposit into the fund any
amount of available revenue from the municipality's hotel occupancy tax.
Provides that deposit of that revenue into the fund is considered an
authorized use of the revenue.  Requires the comptroller to credit any
amount of municipal hotel occupancy tax revenue deposited by the endorsing
municipality into the fund toward the amount otherwise required to be
retained from the municipality's sales and use tax revenue, and requires
the comptroller to reduce the amount of the municipality's sales and use
tax revenue retained from the next distribution of that revenue to the
municipality. 

(g)  Authorizes the department to use the fund only to fulfill the 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)  Requires a committee to provide information required by the
comptroller, including annual audited statements (statement) of the
committee's financial records required by a site selection organization and
data obtained by the committee relating to attendance at the games and to
the economic impacts of the games.  Provides that a committee must provide
a statement within four months of the end of the period covered by the
statement. 

(i)  Requires the comptroller to provide an estimate before August 31,
1999, of the total amount that would be deposited in the fund before
January 1, 2008, if the games were to be held in this state at a site
selected pursuant to an application by a committee.  Requires the
comptroller to provide the estimate on request to a committee.  Authorizes
a committee to submit the comptroller's estimate to a site selection
organization. 

(j)  Prohibits the department from making a disbursement from the fund
unless the 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). 

(k)  Requires the obligation, if the comptroller certifies that a
disbursement may be made from the fund, to be satisfied first out of
municipal revenue deposited in the trust fund and then out of the state
revenue deposited in the trust fund. 

(l)  Requires the comptroller, on January 1, 2009, to transfer to the
general revenue fund any money remaining in the fund, not exceeding the
amount of state revenue remaining in the trust fund, plus any interest
earned on that state revenue.  Requires the comptroller to remit to the
endorsing municipality any money remaining in the trust fund after the
required amount is transferred to the general revenue fund. 

 (m)  Prohibits the amount deposited in the fund from exceeding $20
million.  Prohibits 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 from exceeding $20 million. 

SECTION 5.  GUARANTEE OF STATE AND MUNICIPAL OBLIGATIONS; OLYMPIC GAMES
TRUST FUND.  (a)  Defines "games" as the 2012 Olympic Games and "site
selection organization" as the United States Olympic Committee or the
International Olympic Committee. 

(b)  Provides that if a site selection organization selects a site for the
games in this state pursuant to an application by a committee (committee),
within the specified period of time, the comptroller is required to
determine for each subsequent calendar quarter, in accordance with
procedures developed by the comptroller: 

(1)  the incremental increase in the receipts to the state from the taxes
imposed within the endorsing municipality under Chapters 151, Tax Code,
that is directly attributable, as determined by the comptroller, to the
preparation for and the presentation of the applicable games and related
events; and   

(2)  the incremental increase in the receipts collected by the state on
behalf of the endorsing municipality from the sales and use tax receipts
under Section 321.101(a), Tax Code, that is directly attributable, as
determined by the comptroller, to the preparation for and the presentation
of the applicable games and related events.  

(c)  Requires the comptroller, subject to SECTION 6 of this Act and for the
purpose of guaranteeing the joint obligations of the state and the
endorsing municipality under a games support contract and this Act, to
retain the amount of municipal sales and use tax revenue determined under
Subsection (b)(2) from the amounts otherwise required to be sent to the
municipality under Section 321.502 (Distribution of Trust Funds), Tax Code,
beginning with the specified period.  Requires the comptroller to
discontinue retaining municipal sales and use tax revenue on the earlier of
the two specified dates. 

(d)  Authorizes an endorsing municipality, in addition to municipal sales
and use tax revenue retained, to guarantee its obligations under a games
support contract and this Act by pledging surcharges from user fees charged
in connection with presentation of the game. 

(e)  Requires the comptroller, subject to SECTION 6 of this Act, to deposit
the amount of state tax revenue determined under Subsection (b)(1) and the
amount of municipal sales and use tax retained under Subsection (c) into a
trust fund designated as the Olympic Games trust fund (Olympic fund).
Provides that the Olympic fund is established outside the treasury but is
held in trust by the comptroller for the administration of this Act.
Authorizes money in the Olympic fund to be spent by the department without
appropriation only as provided by the Act.  Requires the comptroller to
discontinue deposit of the amount of state tax revenue determined under
Subsection (b)(1) on the earlier of the two specified dates. 

(f)  Authorizes the department to use the Olympic fund only to fulfill the
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.  

(g)  Requires a committee to provide information required by the
comptroller, including annual audited statements (statement) of the
committee's financial records required by a site selection organization and
data obtained by the committee relating to attendance at the games and to
the economic impact of the games.  Provides that a committee must provide a
statement within four months of the end of the period covered by the
statement. 

(h)  Requires the comptroller to provide an estimate before August 31,
2000, or as soon as practical after that date, of the total amount that
would be deposited in the Olympic fund if the games were to be held in this
state at a site selected pursuant to an application  by a committee.
Requires the comptroller to provide the estimate on request to a committee.
Authorizes a committee to submit the comptroller's estimate to a site
selection organization. 

(i)  Prohibits the department from making a disbursement from the Olympic
fund unless the 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 (f). 

(j)  Requires the obligation, if the comptroller certifies that a
disbursement may be made from the Olympic fund, to be satisfied
proportionately from the state and municipal revenue in the Olympic fund. 

(k)  Requires the comptroller, two years after the closing event of the
games, to transfer to the general revenue fund any money remaining in the
Olympic fund, not exceeding the amount of state revenue remaining in the
Olympic fund, plus any interest earned on that state revenue.  Requires the
comptroller to remit to the endorsing municipality any money remaining in
the Olympic fund after the required amount is transferred to the general
revenue fund. 

(l)  Prohibits the amount deposited in the Olympic fund from exceeding $100
million. Prohibits 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 from exceeding $100 million. 

SECTION 6.  MUNICIPAL ELECTION.  (a)  Provides that except as provided by
Subsection (b), an endorsing municipality must hold an election in the
municipality to determine whether the municipality may contribute a portion
of its sales and use taxes to the fund under SECTION 4 or the Olympic fund
under SECTION 5, as applicable to the games for which the municipality has
authorized a bid on its behalf.  Provides that the election must be held on
a uniform election date that occurs after the effective date of this Act
and before the date a site selection organization requires the endorsing
municipality and the state to enter into a joinder undertaking. 

(b)  Provides that an endorsing municipality authorizing a bid on its
behalf for the 2007 Pan American Games is not required to hold an election
if there is not a sufficient number of days between the effective date of
this Act and a uniform election date that occurs before the date a site
selection organization requires that the endorsing municipality and the
state enter into a joinder undertaking to allow the municipality to submit
the proposed election to the United States attorney general for
preclearance at least 120 days before the election. 

(c)  Provides that if an endorsing municipality is required to hold an
election and the contribution of a portion of the municipality's sale and
use taxes is not approved by a majority of the voters voting in the
election: 

_the comptroller is prohibited from retaining municipal sales and use tax
revenue from amounts otherwise required to be sent to that municipality, or
from deposing state tax revenue into the fund or the Olympic fund, as
applicable; 

_the comptroller is not required to determine the incremental increase in
state and municipal tax revenue; and 

_the department is prohibited from entering into a games support contract.

SECTION 7.  ASSISTANCE OF DEPARTMENT AND OTHER STATE AGENCIES. (a)
Requires the department to review requests from a committee that the
department, on behalf of the state, enter into a games support contract
that is required by a site selection organization in connection with the
committee's bid to host the game. 
 
(b)  Provides that a request made under Subsection (a) of this section must
be accompanied by the enumerated items. 

(c)  Requires the department to approve or deny a request made under
Subsection (a) within 30 days of the request. 

(d)  Authorizes the department to agree in a joinder undertaking entered
into with a site selection organization that the department will execute a
joinder agreement and refrain from taking any action after the execution of
the joinder undertaking that would impair its ability to execute the
joinder agreement. 

(e)  Authorizes the department to agree in a joinder undertaking that the
state will agree to perform the enumerated actions. 

(f)  Authorizes the department to agree to execute a joinder undertaking, a
joinder agreement, or other games support contract only if the enumerated
conditions apply. 

(g)  Provides that before executing a games support contract, the
department must execute an agreement with the applicable local organizing
committee requiring that if a site selection organization selects a site
for the games in this state pursuant to an application by the committee,
the committee will repay the state any funds expended by the department
under this Act from any surplus of the committee's funds remaining after
the presentation of the games and after the payment of the expenses and
obligations incurred by the committee.  

(h)  Authorizes a games support contract to contain any additional
provisions the department requires in order to carry out the purposes of
this Act.  
 
(i)  Authorizes the department to require a committee to list the state as
an additional insured on any policy of insurance purchased by the committee
and required by a site selection organization to be in effect in connection
with the games. 

(j)  Authorizes the Texas Department of Transportation, the Texas
Department of Public Safety, and the Texas Department of Housing and
Community Affairs to assist a committee in developing applications and
planning for the games and to enter into contracts, agreements, or
assurances related to the presentation of the games.  

(k)  Prohibits the department, not withstanding any other provision of this
Act, from obligating the state to pay or otherwise provide funds to cover
the costs of the construction or purchase of a building or other facility
by a municipality. 

SECTION 8.  APPLICATION OF OPEN MEETINGS AND OPEN RECORDS LAWS.  Provides
that a committee and its governing body are subject to Chapters 551 (Open
Meetings) and 552 (Public Information), Government Code.  Provides that
records and information of a committee are considered public records and
public information.  Provides that a final bid, or a draft of that bid,
submitted by a committee to a site selection organization is excepted from
required public disclosure until the applicable site selection organization
selects the site for the games.  Provides that Chapter 551, Government
Code, does not apply to a meeting of a subcommittee of the governing body
of a local organizing committee if the enumerated conditions exist.
Provides that a tape recording is subject to required public disclosure in
the manner prescribed by Chapter 552, Government Code, for a public record. 

SECTION 9.  TAX EXEMPTIONS FOR LOCAL ORGANIZING COMMITTEE.  Provides that a
committee that is exempt from paying federal income tax under Section
501(c) (Exemption from Tax on Corporations, Certain Trusts, etc.), Internal
Revenue Code, is exempt from the enumerated taxes.  Provides that the
exemptions take effect on the first day of the first month after the
effective date of this Act.  Provides that the exemption from franchise tax
provided by this section applies only to a tax that becomes due on or after
the effective date of this Act. 
 
 SECTION 10.  ETHICS.  (a)  Provides that a local organizing committee that
submits a request under Section 6(a) of this Act must: 

(1) affirm that it is fully in compliance with the ethical guidelines set
forth in all contracts entered into and rules adopted by a site selection
organization; 

(2)  before the 15th of the first month of each calender quarter, file with
the secretary of the endorsing municipality for which the committee submits
a request the enumerated items; and  

(3)  file with the secretary of the endorsing municipality on April 15 of
each year a copy of each financial statement required to be submitted by a
committee to the United States Olympic Committee during the preceding
calendar year. 

(b)  Provides that a report made under Subsection 9(a)(2) must include the
enumerated items. 

(c)  Provides that each endorsing municipality for which a local organizing
committee submits a request under Section 7(a) of this Act must have a
comprehensive ethics code establishing standards of conduct, disclosure
requirement, and enforcement mechanisms relating to city officials and
employees before the department may consider the request. 

SECTION 11.  BRIBERY.  Provides that a person commits an offense if the
person intentionally or knowingly offers, confers, or agrees to confer on
another person, or solicits, accepts, or agrees to accept from another
person, any benefit as consideration for the recipient's decision, opinion,
recommendation, vote, or other exercise of discretion as a member or
employee of a committee.  Sets forth situations which are and are not a
defense to prosecution.  Defines "benefit."  Provides that an offense under
this section is a felony of the second degree. 

SECTION  12.  EMERGENCY.  Emergency clause.
    Effective date: 90 days after adjournment.

COMPARISON OF ORIGINAL TO SUBSTITUTE

The substitute modifies the original bill by adding "providing a penalty"
to the caption. 

The substitute modifies the original bill by removing references to
"qualified applicant"and "Games of the XXX Olympiad" and replacing them
with "local organizing committee" and "2012 Olympic Games," respectively,
throughout the bill. 

The substitute modifies the original bill in SECTION 1, by removing the
definitions of "qualified applicant" and "site selection date," by adding
new definitions of "joinder agreement," "joinder undertaking," and "local
organizing committee," by redefining "site selection organization" to
include the United States Olympic Committee, and by making conforming
changes. 

The substitute modifies the original bill in SECTION 2, by establishing
that the purpose of this act is to provide assurance required by the site
selection organization sponsoring the games.  The original bill established
that the purpose as to provide financial support to the municipalities and
to provide assurance to the site selection organization sponsoring the
games. 

The substitute modifies the original bill in SECTION 3 by providing an
additional legislative finding regarding job creation opportunities. 

The substitute modifies the original bill in SECTION 4, as follows:

SECTION 4.  New title: GUARANTEE OF STATE AND MUNICIPAL OBLIGATIONS; PAN
AMERICAN GAMES TRUST FUND.  (a)  New subsection.  Defines "games" and "site
selection organization" for this section. 

(b)  Sets forth a new period of time within which the comptroller is
required to determine  the specified incremental increases in the receipts.
Specifies that the incremental increases are to be applied to both state
taxes imposed under Chapter 151 and Section 321.101(a), Tax Code, rather
than only to state taxes imposed under Chapter 151. Provides that the
incremental increase in both receipts is directly, rather than reasonably,
attributable to the preparation for and presentation of the games and
related events. Deletes references to market area of the qualified
applicant.  Makes conforming and nonsubstantive changes. 

(c)  New subsection.  Requires the comptroller, subject to SECTION 6 of
this Act and for the purpose of guaranteeing the joint obligations of the
state and the endorsing municipality under a games support contract and
this Act, to retain the amount of municipal sales and use tax revenue
determined under Subsection (b)(2) from the amount otherwise required to be
sent to the municipality under Section 321.502 (Distribution of Trust
Funds), Tax Code, beginning with the specified period.  Requires the
comptroller to discontinue retaining municipal sales and use tax revenue on
the earlier of the two specified dates.  Deletes text in the original bill
requiring the qualified applicant to propose the geographic boundaries of
the market area. 

(d)  New subsection.  Authorizes an endorsing municipality, in addition to
municipal sales and use tax revenue retained, to guarantee its obligations
under a games support contract and this Act by pledging surcharges from
user fees charged in connection with presentation of the game. 

(e)  Redesignated from Subsection (b) of the original bill.  Removing
references to "Olympics and Pan American Games support fund" and replaces
it with "Pan American Games trust fund."  Provides that the fund is
established outside the treasury but is held in trust by the comptroller
for the administration of this Act.  Authorizes money in the fund to be
spent by the department without appropriation only as provided by this Act.
Requires the comptroller to discontinue deposit of the amount of state tax
revenue determined under Subsection (b)(1) on the earlier of the two
specified dates.  The original bill only set forth one date for which the
comptroller is required to discontinue the deposits.  Deletes text in the
original bill that prohibits state funds other than those funds in the
Olympics and Pan American Games support fund from being used for the
purposes of this Act. 

(f)  New subsection.  Authorizes the endorsing municipality to deposit into
the fund any amount of available revenue from the municipality's hotel
occupancy tax.  Provides that deposit of that revenue into the fund is
considered an authorized use of the revenue. Requires the comptroller to
credit any amount of municipal hotel occupancy tax revenue deposited by the
endorsing municipality into the fund toward the amount otherwise required
to be retained from the municipality's sales and use tax revenue, and
requires the comptroller to reduce the amount of the municipality's sales
and use tax revenue retained from the next distribution of that revenue to
the municipality. 

(g)  Redesignated from Subsection (d) of the original bill.  Provides that
the obligation to the site selection organization is jointly held by the
state and the endorsing municipality. Makes conforming and nonsubstantive
changes. 

(h)  New subsection.  Requires a committee to provide information required
by the comptroller, including annual audited statements (statement) of the
committee's financial records required by a site selection organization and
data obtained by the committee relating to attendance at the games and to
the economic impacts of the games.  Provides that a committee must provide
a statement within four months of the end of the period covered by the
statement. 

(i)  New subsection.  Requires the comptroller to provide an estimate
before August 31, 1999, of the total amount that would be deposited in the
fund before January 1, 2008, if the games were to be held in this state at
a site selected pursuant to an application by a committee.  Requires the
comptroller to provide the estimate on request to a committee. Authorizes a
committee to submit the comptroller's estimate to a site selection
organization. 

(j)  New subsection.  Prohibits the department from making a disbursement
from the fund unless the 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). 

(k)  New subsection.  Requires the obligation, if the comptroller certifies
that a disbursement may be made from the fund, to be satisfied first out of
municipal revenue deposited in the trust fund and then out of the state
revenue deposited in the trust fund. 

(l)  New subsection.  Requires the comptroller, on January 1, 2009, to
transfer to the general revenue fund any money remaining in the fund, not
exceeding the amount of state revenue remaining in the trust fund, plus any
interest earned on that state revenue. Requires the comptroller to remit to
the endorsing municipality any money remaining in the trust fund after the
required amount is transferred to the general revenue fund. 

(m)  New subsection.  Prohibits the amount deposited in the fund from
exceeding $20 million.  Prohibits 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 from exceeding $20
million. 

The substitute modifies the original bill by adding new SECTIONS 5
(Guarantee of State and Municipal Obligations; Olympic Games Trust Fund)
and 6 (Municipal Election).  For a complete analysis of SECTIONS 5 and 6,
please see the Section-by-Section Analysis portion of this document. 

The substitute modifies the original bill by removing SECTION 6 of  the
original bill, which provided 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 for
the purposes of the laws of this state. 

The substitute modifies the original bill by redesignating SECTION 5 of the
original bill to SECTION 7, and amending that section, as follows: 

SECTION 7.  New title: ASSISTANCE OF DEPARTMENT AND OTHER STATE AGENCIES.
(a)  Refers to the games support contract that the department enters into,
on behalf of the state, as being required by a site selection organization
in connection with the committee's bid to host any of the games.  The
original bill refers to the games support contract as one that the
department enters into with the qualified applicant.  Makes a conforming
change. 

(b)  Includes the following items in a list of other items to accompany the
request: the estimated cost of preparing and submitting the intended
proposal, the committee's intended method of obtaining the funds needed for
the purpose of preparing the proposal, a description by type and
approximate amount of the site selection application costs that the
committee intends to pay, and any other information reasonably requested by
the department to assist it in reviewing the request.  Makes conforming
changes. 

(c)  Makes no change.

(d)  New subsection.  Authorizes the department to agree in a joinder
undertaking entered into with a site selection organization that the
department will execute a joinder agreement and refrain from taking any
action after the execution of the joinder undertaking that would impair its
ability to execute the joinder agreement.  Deletes Subsection (d) of the
original bill, which related to department approval of request and
conditions under which the department will enter into a games support
contract. 

(e)  New subsection.  Authorizes the department to agree in a joinder
agreement that the state will agree to perform the enumerated actions.
Deletes Subsection (e) of the original bill, which related to terms of the
games support contract. 

 (f)  New subsection.  Authorizes the department to agree to execute a
joinder undertaking, a joinder agreement, or other games support contract
only if the enumerated conditions apply. 

(g)  Redesignated from Subsection (f) of the original bill.  Provides that
before executing a games support contract, the department must execute an
agreement with the applicable local organizing committee requiring that if
a site selection organization selects a site for the games in this state
pursuant to an application by the committee, the committee will repay the
state any funds expended by the department under this Act from any surplus
of the committee's funds remaining after the presentation of the games and
after the payment of the expenses and obligations incurred by the
committee.  The original bill required the games support contract to
prescribe this requirement. 

(h)  Redesignated from Subsection (g) of the original bill.

(i)  New subsection.  Authorizes the department to require a committee to
list the state as an additional insured on any policy of insurance
purchased by the committee and required by a site selection organization to
be in effect in connection with the games. 

(j)  New subsection  Authorizes the Texas Department of Transportation, the
Texas Department of Public Safety, and the Texas Department of Housing and
Community Affairs to assist a committee in developing applications and
planning for the games and to enter into contracts, agreements, or
assurances related to the presentation of the games.  

(k)  New subsection:  Prohibits the department, notwithstanding any other
provision of this Act, from obligating the state to pay or otherwise
provide funds to cover the costs of the construction or purchase of a
building or other facility by a municipality. 


The substitute modifies the original bill by adding new SECTIONS 8
(Application of Open Meetings and Open Records Laws), 9 (Tax Exemptions for
Local Organizing Committee), 10 (Ethics) and 11 (Bribery).  For a complete
analysis of these new SECTIONS, please see the Section-by-Section Analysis
portion of this document. 

The substitute modifies the original bill by redesignating SECTION 7 (long
emergency clause) of the original bill as SECTION 12 (short emergency
clause).