By: Madla, et al. S.B. No. 456 A BILL TO BE ENTITLED AN ACT 1-1 relating to facilitating and supporting efforts of certain 1-2 municipalities to promote economic development by hosting the Pan 1-3 American Games and the Olympic Games. 1-4 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: 1-5 SECTION 1. DEFINITIONS. In this Act: 1-6 (1) "Department" means the Texas Department of 1-7 Economic Development. 1-8 (2) "Endorsing municipality" means a municipality that 1-9 has a population of 850,000 or more according to the most recent 1-10 federal decennial census and that authorizes a bid by a qualified 1-11 applicant for selection of the municipality as the site of the 1-12 Games of the XXX Olympiad or the 2007 Pan American Games. 1-13 (3) "Games" means the Games of the XXX Olympiad or the 1-14 2007 Pan American Games. 1-15 (4) "Games support contract" means a contract executed 1-16 by the department and a qualified applicant containing terms 1-17 permitted or required by this Act. 1-18 (5) "Qualified applicant" means a nonprofit 1-19 corporation that: 1-20 (A) has been authorized by an endorsing 1-21 municipality to pursue an application and bid on the applicant's 1-22 behalf to the International Olympic Committee for selection as the 1-23 site of the Games of the XXX Olympiad or to the Pan American Sports 1-24 Organization for selection as the site of the 2007 Pan American 2-1 Games; and 2-2 (B) has executed: 2-3 (i) a bid committee agreement with the 2-4 United States Olympic Committee; or 2-5 (ii) an agreement with the Pan American 2-6 Sports Organization regarding a bid to host the Pan American Games. 2-7 (6) "Site selection date" means the date on which: 2-8 (A) the International Olympic Committee 2-9 designates the site for the Games of the XXX Olympiad; or 2-10 (B) the Pan American Sports Organization 2-11 designates the site for the 2007 Pan American Games. 2-12 (7) "Site selection organization" means the 2-13 International Olympic Committee or the Pan American Sports 2-14 Organization. 2-15 SECTION 2. PURPOSE. The purpose of this Act is, if a 2-16 location in the state is designated as the site for the 2007 Pan 2-17 American Games or the Games of the XXX Olympiad, to provide 2-18 financial support to the municipalities and to provide assurances 2-19 to the site selection organization sponsoring the games that 2-20 commitments made by the state through the department in a games 2-21 support contract will be fulfilled. 2-22 SECTION 3. LEGISLATIVE FINDINGS. The conduct in this state 2-23 of the 2007 Pan American Games or the conduct of the Games of the 2-24 XXX Olympiad in 2012 will: 2-25 (1) provide invaluable public visibility throughout 2-26 the world for this state and the communities where the games are 3-1 held; and 3-2 (2) encourage and provide major economic benefits to 3-3 the communities where the games are held and to the entire state. 3-4 SECTION 4. OLYMPICS AND PAN AMERICAN GAMES SUPPORT FUND. 3-5 (a) If a site selection organization selects a site for the Games 3-6 of the XXX Olympiad or the 2007 Pan American Games in this state 3-7 pursuant to an application by a qualified applicant, beginning on 3-8 the first day of the first state fiscal year that begins after the 3-9 site selection date, the comptroller shall determine quarterly, in 3-10 accordance with procedures developed by the comptroller, the 3-11 incremental increase in the state sales and use tax receipts under 3-12 Chapter 151, Tax Code, within the market area of the qualified 3-13 applicant whose site application has been accepted by the 3-14 applicable site selection organization that is reasonably 3-15 attributable to the successful application and preparation for and 3-16 the presentation of the applicable games and related events. 3-17 (b) The comptroller shall deposit the amount determined 3-18 under Subsection (a) of this section into a special account of the 3-19 department's treasury account called the Olympics and Pan American 3-20 Games support fund. The comptroller shall discontinue deposit of 3-21 the amount determined under Subsection (a) of this section at the 3-22 end of the third calendar month following the month in which the 3-23 closing event of the games occurs. 3-24 (c) The qualified applicant shall propose the geographic 3-25 boundaries of the market area to be used under Subsection (a) of 3-26 this section. The department shall approve the proposed market 4-1 area if it includes areas that are likely to be affected by the 4-2 conduct of the games the applicant is seeking, including any areas 4-3 that are likely to provide venues, accommodations, and services in 4-4 connection with the games, based on the proposal submitted by the 4-5 applicant under Section 5 of this Act. 4-6 (d) The department in its sole discretion may use the money 4-7 in the Olympics and Pan American Games support fund to fulfill the 4-8 state's obligations to a site selection organization under a games 4-9 support contract or any other agreement providing assurances from 4-10 the department to a site selection organization. Money in the fund 4-11 may not be spent except as directed by the department. 4-12 (e) State funds other than those funds in the Olympics and 4-13 Pan American Games support fund may not be used for the purposes of 4-14 this Act. 4-15 SECTION 5. ASSISTANCE OF DEPARTMENT. (a) The department 4-16 shall review requests from a qualified applicant that the 4-17 department enter into a games support contract with the applicant. 4-18 (b) A request made under Subsection (a) of this section must 4-19 be accompanied by: 4-20 (1) a general description and summary of the games for 4-21 which a site selection is sought by the qualified applicant; and 4-22 (2) a preliminary and general description of the 4-23 proposal the applicant intends to submit to a site selection 4-24 organization. 4-25 (c) The department shall approve or deny a request made 4-26 under Subsection (a) of this section not later than the 30th day 5-1 after the date the request is submitted. 5-2 (d) The department shall approve a request and shall enter 5-3 into a games support contract with a qualified applicant if the 5-4 department determines that: 5-5 (1) the applicant's proposal is reasonable and, if 5-6 completed and submitted, would substantially meet the criteria for 5-7 proposals established by the applicable site selection 5-8 organization; and 5-9 (2) the method of obtaining funds to cover the costs 5-10 of preparing the proposal is commercially reasonable and is likely 5-11 to be successful. 5-12 (e) The department may agree in a games support contract to 5-13 provide to the applicable site selection organization written 5-14 assurances on behalf of the state and the qualified applicant that, 5-15 if the applicant's proposal is accepted and the site identified in 5-16 the proposal is selected, and if necessary in addition to funds 5-17 provided by the qualified applicant, funds will be provided by the 5-18 state solely from money on deposit in the Olympics and Pan American 5-19 Games support fund, and from no other source of public funds, to 5-20 pay the costs of presenting the games in accordance with the 5-21 qualified applicant's proposal. 5-22 (f) Each games support contract shall require a qualified 5-23 applicant to repay the state any funds expended by the department 5-24 under this Act from any surplus of the qualified applicant's funds 5-25 remaining after the presentation of the games and after the payment 5-26 of the expenses and obligations incurred by a qualified applicant. 6-1 (g) A games support contract may contain any additional 6-2 provisions the department requires in order to carry out the 6-3 purposes of this Act. 6-4 SECTION 6. GOVERNMENTAL FUNCTIONS. An action taken or an 6-5 activity conducted under this Act by a qualified applicant or the 6-6 department is declared to be an essential governmental function and 6-7 is not a proprietary function for the purposes of the laws of this 6-8 state. 6-9 SECTION 7. EMERGENCY. The importance of this legislation 6-10 and the crowded condition of the calendars in both houses create an 6-11 emergency and an imperative public necessity that the 6-12 constitutional rule requiring bills to be read on three several 6-13 days in each house be suspended, and this rule is hereby suspended, 6-14 and that this Act take effect and be in force from and after its 6-15 passage, and it is so enacted.