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.