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.