By Coleman H.B. No. 3526 Line and page numbers may not match official copy. Bill not drafted by TLC or Senate E&E. A BILL TO BE ENTITLED 1-1 AN ACT 1-2 relating to facilitating and supporting cooperative efforts of 1-3 municipalities and counties to promote economic development by 1-4 hosting the Olympic Games. 1-5 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: 1-6 SECTION 1. DEFINITIONS. In this Act: 1-7 (1) "Department" means the Texas Department of 1-8 Economic Development. 1-9 (2) "Endorsing municipality" means a municipality that 1-10 authorizes a bid by a qualified applicant for selection of the 1-11 municipality as the site of the Games of the XXX Olympiad. 1-12 (3) "Games" means the Games of the XXX Olympiad. 1-13 (4) "Games support contract" means a contract executed 1-14 by the department and a qualified applicant containing terms 1-15 permitted or required by this Act. 1-16 (5) "Qualified applicant" means a nonprofit 1-17 corporation that: 1-18 (A) has been authorized by an endorsing 1-19 municipality to pursue an application and bid on the applicant's 1-20 behalf to the International Olympic Committee for selection as the 1-21 site of the Games of the XXX Olympiad and 2-1 (B) has executed a bid committee agreement with 2-2 the United States Olympic Committee. 2-3 (7) "Site selection date" means the date on which the 2-4 International Olympic Committee designates the site for the Games 2-5 of the XXX Olympiad. 2-6 (10) "Site selection organization" means the 2-7 International Olympic Committee. 2-8 SECTION 2. PURPOSE. The purpose of this Act is, if a location 2-9 in the state is designated as the site for the Games of the XXX 2-10 Olympiad, solely to provide financial support to the municipalities 2-11 and other persons and to provide assurances to the site selection 2-12 organization sponsoring the games that commitments made by the 2-13 state through the department in a games support contract will be 2-14 fulfilled. 2-15 SECTION 3. LEGISLATIVE FINDINGS. The conduct in this state of 2-16 the Games of the XXX Olympiad in 2012 will: 2-17 (1) provide invaluable public visibility throughout 2-18 the world for this state and the communities where the games are 2-19 held; and 2-20 (2) encourage and provide major economic benefits to 2-21 the communities where the games are held and to the entire state. 2-22 SECTION 4. OLYMPIC GAMES SUPPORT FUND. (a) If a site 2-23 selection organization selects a site for the Games of the XXX 2-24 Olympiad in this state pursuant to an application by a qualified 2-25 applicant, beginning on the first day of the first state fiscal 3-1 year that begins after the site selection date, the comptroller 3-2 shall determine for each quarter, in accordance with procedures 3-3 developed by the comptroller, the incremental increase in the state 3-4 sales and use tax receipts under Chapter 151, Tax Code, within the 3-5 market area of the qualified applicant whose site application has 3-6 been accepted by the applicable site selection organization that is 3-7 reasonably attributable to the successful application and 3-8 preparation for and the presentation of the applicable games and 3-9 related events. 3-10 (b) The comptroller shall deposit the amount determined 3-11 under Subsection (a) of this section into a special account of the 3-12 department's treasury account called the Olympic Games support 3-13 fund. The comptroller shall discontinue deposit of the amount 3-14 determined under Subsection (a) of this section at the end of the 3-15 third calendar month following the month in which the closing event 3-16 of the games occurs. 3-17 (c) The qualified applicant shall propose the geographic 3-18 boundaries of the market area to be used under Subsection (a) of 3-19 this section. The department shall approve the proposed market area 3-20 if it includes areas that are likely to be affected by the conduct 3-21 of the games the applicant is seeking, including any areas that are 3-22 likely to provide venues, accommodations, and services in 3-23 connection with the games, based on the proposal submitted by the 3-24 applicant under Section 5 of this Act. 3-25 (d) The department may use the funds in the Olympics Games 4-1 support fund to fulfill the state's obligations to a site selection 4-2 organization under a games support contract or any other agreement 4-3 providing assurances from the department to a site selection 4-4 organization. 4-5 SECTION 5. ASSISTANCE OF DEPARTMENT AND OTHER STATE AGENCIES. 4-6 (a) The department shall review requests from a qualified 4-7 applicant that the department enter into a games support contract 4-8 with the applicant. 4-9 (b) A request made under Subsection (a) of this section 4-10 must be accompanied by: 4-11 (1) a general description and summary of the games for 4-12 which a site selection is sought by the qualified applicant; 4-13 (2) a preliminary and general description of the 4-14 proposal the applicant intends to submit or has submitted to a site 4-15 selection organization; 4-16 (c) The department shall approve or deny a request made 4-17 under Subsection (a) of this section not later than the 30th day 4-18 after the date the request is submitted. 4-19 (d) The department shall approve a request and shall enter 4-20 into a games support contract with a qualified applicant if the 4-21 department determines that the applicant's proposal is reasonable 4-22 and, if completed and submitted, would substantially meet the 4-23 criteria for proposals established by the applicable site selection 4-24 organization. 4-25 (e) The department may agree in a games support contract to 5-1 provide to the applicable site selection organization written 5-2 assurances on behalf of the state and the qualified applicant that, 5-3 if the applicant's proposal is accepted and the site identified in 5-4 the proposal is selected, and if necessary in addition to funds 5-5 provided by the qualified applicant, funds will be provided by the 5-6 state but limited to the money on deposit in the Olympic Games fund 5-7 to assure the site selection organization that the state will 5-8 support the proposal if necessary. 5-9 (f) A games support contract may contain any additional 5-10 provisions the department requires in order to carry out the 5-11 purposes of this Act. 5-12 SECTION 6. GOVERNMENTAL FUNCTIONS. An action taken or an 5-13 activity conducted under this Act by a qualified applicant, the 5-14 department or other state agency, a participating municipality or 5-15 county, or a regional games support authority is declared to be an 5-16 essential governmental function and is not a proprietary function 5-17 for the purposes of the laws of this state. 5-18 SECTION 7. EMERGENCY. The importance of this legislation and 5-19 the crowded condition of the calendars in both houses create an 5-20 emergency and an imperative public necessity that the 5-21 constitutional rule requiring bills to be read on three several 5-22 days in each house be suspended, and this rule is hereby suspended, 5-23 and that this Act take effect and be in force from and after its 5-24 passage, and it is so enacted.