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; providing a penalty.
 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 local
1-11     organizing committee for selection of the municipality as the site
1-12     of the 2007 Pan American Games or the 2012 Olympic Games.
1-13                 (3)  "Games" means the 2007 Pan American Games or the
1-14     2012 Olympic Games.
1-15                 (4)  "Games support contract" means a joinder
1-16     undertaking, a joinder agreement, or a similar contract executed by
1-17     the department and containing terms permitted or required by this
1-18     Act.
1-19                 (5)  "Joinder agreement" means an agreement entered
1-20     into by:
1-21                       (A)  the department on behalf of this state and a
1-22     site selection organization setting out representations and
1-23     assurances by the state in connection with the selection of a site
1-24     in this state for the location of any of the games; or
 2-1                       (B)  an endorsing municipality and a site
 2-2     selection organization setting out representations and assurances
 2-3     by the endorsing municipality in connection with the selection of a
 2-4     site in this state for the location of any of the games.
 2-5                 (6)  "Joinder undertaking" means an agreement entered
 2-6     into by:
 2-7                       (A)  the department on behalf of this state and a
 2-8     site selection organization that the state will execute a joinder
 2-9     agreement in the event that the site selection organization selects
2-10     a site in this state for any of the games; or
2-11                       (B)  an endorsing municipality and a site
2-12     selection organization that the municipality will execute a joinder
2-13     agreement in the event that the site selection organization selects
2-14     a site in this state for any of the games.
2-15                 (7)  "Local organizing committee" means a nonprofit
2-16     corporation or its successor in interest that:
2-17                       (A)  has been authorized by an endorsing
2-18     municipality to pursue an application and bid on the applicant's
2-19     behalf to a site selection organization for selection as the site
2-20     of one of the games; or
2-21                       (B)  with the authorization of an endorsing
2-22     municipality, has executed an agreement with a site selection
2-23     organization regarding a bid to host one of the games.
2-24                 (8)  "Site selection organization" means the United
2-25     States Olympic Committee, the International Olympic Committee, or
2-26     the Pan American Sports Organization.
 3-1           SECTION 2.  PURPOSE.  The purpose of this Act is to provide
 3-2     assurances required by a site selection organization sponsoring the
 3-3     games.
 3-4           SECTION 3.  LEGISLATIVE FINDINGS.  The conduct in this state
 3-5     of the 2007 Pan American Games or the 2012 Olympic Games will:
 3-6                 (1)  provide invaluable public visibility throughout
 3-7     the world for this state and the communities where the games are
 3-8     held;
 3-9                 (2)  encourage and provide major economic benefits to
3-10     the communities where the games are held and to the entire state;
3-11     and
3-12                 (3)  provide opportunities for the creation of jobs by
3-13     local and Texas businesses that pay a living wage.
3-14           SECTION 4.  GUARANTEE OF STATE AND MUNICIPAL OBLIGATIONS; PAN
3-15     AMERICAN GAMES TRUST FUND.  (a)  In this section:
3-16                 (1)  "Games" means the 2007 Pan American Games.
3-17                 (2)  "Site selection organization" means the United
3-18     States Olympic Committee or the Pan American Sports Organization.
3-19           (b)  If a site selection organization selects a site for the
3-20     games in this state pursuant to an application by a local
3-21     organizing committee, after the first occurrence of a measurable
3-22     economic impact in this state as a result of the preparation for
3-23     the games, as determined by the comptroller, but in no event later
3-24     than one year before the scheduled opening event of the games, the
3-25     comptroller shall determine for each subsequent calendar quarter,
3-26     in accordance with procedures developed by the comptroller:
 4-1                 (1)  the incremental increase in the receipts to the
 4-2     state from the taxes imposed under Chapters 151, 152, 156, and 183,
 4-3     Tax Code, and under Title 5, Alcoholic Beverage Code, within the
 4-4     market areas designated under Subsection (c) of this section, that
 4-5     is directly attributable, as determined by the comptroller, to the
 4-6     preparation for and presentation of the games and related events;
 4-7                 (2)  the incremental increase in the receipts collected
 4-8     by the state on behalf of the endorsing municipality from the sales
 4-9     and use tax imposed by the endorsing municipality under Section
4-10     321.101(a), Tax Code, that is directly attributable, as determined
4-11     by the comptroller, to the preparation for and presentation of the
4-12     games and related events; and
4-13                 (3)  the incremental increase in the receipts collected
4-14     by the endorsing municipality from the municipality's hotel
4-15     occupancy tax imposed under Chapter 351, Tax Code, that is directly
4-16     attributable, as determined by the comptroller, to the preparation
4-17     for and presentation of the games and related events.
4-18           (c)  For the purposes of Subsection (b)(1) of this section,
4-19     the comptroller shall designate as a market area for the games each
4-20     area in which the comptroller determines there is a reasonable
4-21     likelihood of measurable economic impact directly attributable to
4-22     the preparation for and presentation of the games and related
4-23     events, including areas likely to provide venues, accommodations,
4-24     and services in connection with the games based on the proposal
4-25     provided by the local organizing committee under Section 7 of this
4-26     Act.  The comptroller shall determine the geographic boundaries of
 5-1     each market area.  The endorsing municipality that has been
 5-2     selected as the site for the games must be included in a market
 5-3     area for the games.
 5-4           (d)  Subject to Section 6 of this Act, the comptroller shall
 5-5     retain, for the purpose of guaranteeing the joint obligations of
 5-6     the state and the endorsing municipality under a games support
 5-7     contract and this Act, the amount of municipal sales and use tax
 5-8     revenue determined under Subsection (b)(2) of this section from the
 5-9     amounts otherwise required to be sent to the municipality under
5-10     Section 321.502, Tax Code, beginning with the first distribution of
5-11     that tax revenue that occurs after the date the comptroller makes
5-12     the determination of the amount of municipal sales and use tax
5-13     revenue under Subsection (b)(2).  The comptroller shall discontinue
5-14     retaining municipal sales and use tax revenue under this subsection
5-15     on the earlier of:
5-16                 (1)  the end of the third calendar month following the
5-17     month in which the closing event of the games occurs; or
5-18                 (2)  the date the amount of municipal sales and use tax
5-19     revenue and municipal hotel occupancy tax revenue in the Pan
5-20     American Games trust fund equals 14 percent of the maximum amount
5-21     of state and municipal tax revenue that may be deposited in the
5-22     trust fund under Subsection (m) of this section.
5-23           (e)  In addition to municipal sales and use tax revenue
5-24     retained under Subsection (d) of this section, an endorsing
5-25     municipality may guarantee its obligations under a games support
5-26     contract and this Act by pledging surcharges from user fees,
 6-1     including parking or ticket fees, charged in connection with
 6-2     presentation of the games.
 6-3           (f)  Subject to Section 6 of this Act and Subsection (m) of
 6-4     this section, the comptroller shall deposit into a trust fund
 6-5     designated as the Pan American Games trust fund the amount of
 6-6     municipal sales and use tax revenue retained under Subsection (d)
 6-7     of this section and, at the same time, a portion of the state tax
 6-8     revenue determined under Subsection (b)(1) of this section in an
 6-9     amount equal to 6.25 times the amount of that municipal sales and
6-10     use tax revenue.  Subject to Section 6 of this Act and Subsection
6-11     (m) of this section, the endorsing municipality shall deposit into
6-12     the trust fund the amount of the endorsing municipality's hotel
6-13     occupancy tax revenue determined under Subsection (b)(3) of this
6-14     section.  The  endorsing municipality shall deposit that hotel
6-15     occupancy tax revenue into the trust fund at least quarterly.  When
6-16     the endorsing municipality makes a deposit of its hotel occupancy
6-17     tax revenue, the comptroller shall deposit at the same time a
6-18     portion of the state tax revenue determined under Subsection (b)(1)
6-19     of this section in an amount equal to 6.25 times the amount of that
6-20     municipal hotel occupancy tax revenue.  The Pan American Games
6-21     trust fund is established outside the treasury but is held in trust
6-22     by the comptroller for the administration of this Act.  Money in
6-23     the trust fund may be spent by the department without appropriation
6-24     only as provided by this Act.  The comptroller shall discontinue
6-25     depositing into the trust fund any state tax revenue determined
6-26     under Subsection (b)(1) of this section on the earlier of:
 7-1                 (1)  the end of the third calendar month following the
 7-2     month in which the closing event of the games occurs; or
 7-3                 (2)  the date on which the amount of state revenue in
 7-4     the Pan American Games trust fund equals 86 percent of the maximum
 7-5     amount of state and municipal tax revenue that may be deposited in
 7-6     the trust fund under Subsection (m) of this section.
 7-7           (g)  The department may use the funds in the Pan American
 7-8     Games trust fund only to fulfill joint obligations of the state and
 7-9     the endorsing municipality to a site selection organization under a
7-10     games support contract or any other agreement providing assurances
7-11     from the department or the endorsing municipality to a site
7-12     selection organization.
7-13           (h)  A local organizing committee shall provide information
7-14     required by the comptroller to enable the comptroller to fulfill
7-15     the comptroller's duties under this Act, including annual audited
7-16     statements of the local organizing committee's financial records
7-17     required by a site selection organization and data obtained by the
7-18     local organizing committee relating to attendance at the games and
7-19     to the economic impact of the games.  A local organizing committee
7-20     must provide an annual audited financial statement required by the
7-21     comptroller not later than the end of the fourth month after the
7-22     date the period covered by the financial statement ends.
7-23           (i)  The comptroller shall provide an estimate not later than
7-24     September 1, 1999, of the total amount of state and municipal tax
7-25     revenue that would be deposited in the Pan American Games trust
7-26     fund before January 1, 2008, if the games were to be held in this
 8-1     state at a site selected pursuant to an application by a local
 8-2     organizing committee.  The comptroller shall provide the estimate
 8-3     on request to a local organizing committee.  A local organizing
 8-4     committee may submit the comptroller's estimate to a site selection
 8-5     organization.
 8-6           (j)  The department may not make a disbursement from the Pan
 8-7     American Games trust fund unless the comptroller certifies that the
 8-8     disbursement is for a purpose for which the state and the endorsing
 8-9     municipality are jointly obligated under a games support contract
8-10     or other agreement described by Subsection (g) of this section.
8-11           (k)  If the comptroller certifies under Subsection (j) of
8-12     this section that a disbursement may be made from the Pan American
8-13     Games trust fund, the obligation shall be satisfied first out of
8-14     municipal revenue deposited in the trust fund and any interest
8-15     earned on that municipal revenue.  If the municipal revenue is not
8-16     sufficient to satisfy the entire deficit, state revenue deposited
8-17     into the trust fund and any interest earned on that state revenue
8-18     shall be used to satisfy the portion of the deficit not covered by
8-19     the municipal revenue.
8-20           (l)  On January 1, 2009, the comptroller shall transfer to
8-21     the general revenue fund any money remaining in the Pan American
8-22     Games trust fund, not to exceed the amount of state revenue
8-23     remaining in the trust fund, plus any interest earned on that state
8-24     revenue.  The comptroller shall remit to the endorsing municipality
8-25     any money remaining in the trust fund after the required amount is
8-26     transferred to the general revenue fund.
 9-1           (m)  In no event may:
 9-2                 (1)  the total amount of state and municipal tax
 9-3     revenue deposited in the Pan American Games trust fund exceed $20
 9-4     million; or
 9-5                 (2)  the joint liability of the state and the endorsing
 9-6     municipality under a joinder agreement and any other games support
 9-7     contracts entered into pursuant to this Act exceed the lesser of:
 9-8                       (A)  $20 million; or
 9-9                       (B)  the total amount of revenue deposited in the
9-10     Pan American Games trust fund and interest earned on the fund.
9-11           SECTION 5.  GUARANTEE OF STATE AND MUNICIPAL OBLIGATIONS;
9-12     OLYMPIC GAMES TRUST FUND.  (a)  In this section:
9-13                 (1)  "Games" means the 2012 Olympic Games.
9-14                 (2)  "Site selection organization" means the United
9-15     States Olympic Committee or the International Olympic Committee.
9-16           (b)  If a site selection organization selects a site for the
9-17     games in this state pursuant to an application by a local
9-18     organizing committee, after the first occurrence of a measurable
9-19     economic impact in this state as a result of the preparation for
9-20     the games, as determined by the comptroller, but in no event later
9-21     than one year before the scheduled opening event of the games, the
9-22     comptroller shall determine for each subsequent calendar quarter,
9-23     in accordance with procedures developed by the comptroller:
9-24                 (1)  the incremental increase in the receipts to the
9-25     state from the taxes imposed under Chapter 151, Tax Code, within
9-26     the market areas designated under Subsection (c) of this section,
 10-1    that is directly attributable, as determined by the comptroller, to
 10-2    the preparation for and presentation of the games and related
 10-3    events; and
 10-4                (2)  the incremental increase in the receipts collected
 10-5    by the state on behalf of the endorsing municipality from the sales
 10-6    and use tax imposed by the endorsing municipality under Section
 10-7    321.101(a), Tax Code, that is directly attributable, as determined
 10-8    by the comptroller, to the preparation for and presentation of the
 10-9    games and related events.
10-10          (c)  For the purposes of Subsection (b)(1) of this section,
10-11    the comptroller shall designate as a market area for the games each
10-12    area in which the comptroller determines there is a reasonable
10-13    likelihood of measurable economic impact directly attributable to
10-14    the preparation for and presentation of the games and related
10-15    events, including areas likely to provide venues, accommodations,
10-16    and services in connection with the games based on the proposal
10-17    provided by the local organizing committee under Section 7 of this
10-18    Act.  The comptroller shall determine the geographic boundaries of
10-19    each market area.  The endorsing municipality that has been
10-20    selected as the site for the games must be included in a market
10-21    area for the games.
10-22          (d)  Subject to Section 6 of this Act, the comptroller shall
10-23    retain, for the purpose of guaranteeing the joint obligations of
10-24    the state and the endorsing municipality under a games support
10-25    contract and this Act, the amount of municipal sales and use tax
10-26    revenue determined under Subsection (b)(2) of this section from the
 11-1    amounts otherwise required to be sent to the municipality under
 11-2    Section 321.502, Tax Code, beginning with the first distribution of
 11-3    that tax revenue that occurs after the date the comptroller makes
 11-4    the determination of the amount of municipal sales and use tax
 11-5    revenue under Subsection (b)(2).  The comptroller shall discontinue
 11-6    retaining municipal sales and use tax revenue under this subsection
 11-7    on the earlier of:
 11-8                (1)  the end of the third calendar month following the
 11-9    month in which the closing event of the games occurs; or
11-10                (2)  the date the amount of municipal sales and use tax
11-11    revenue in the Olympic Games trust fund equals 14 percent of the
11-12    maximum amount of state and municipal tax revenue that may be
11-13    deposited in the trust fund under Subsection (m) of this section.
11-14          (e)  In addition to municipal sales and use tax revenue
11-15    retained under Subsection (d) of this section, an endorsing
11-16    municipality may guarantee its obligations under a games support
11-17    contract and this Act by pledging surcharges from user fees,
11-18    including parking or ticket fees, charged in connection with
11-19    presentation of the games.
11-20          (f)  Subject to Section 6 of this Act and Subsection (m) of
11-21    this section, the comptroller shall deposit into a trust fund
11-22    designated as the Olympic Games trust fund the amount of municipal
11-23    sales and use tax revenue retained under Subsection (d) of this
11-24    section and, at the same time, a portion of the state tax revenue
11-25    determined under Subsection (b)(1) of this section in an amount
11-26    equal to 6.25 times the amount of that municipal sales and use tax
 12-1    revenue.  The trust fund is established outside the treasury but is
 12-2    held in trust by the comptroller for the administration of this
 12-3    Act.  Money in the trust fund may be spent by the department
 12-4    without appropriation only as provided by this Act.  The
 12-5    comptroller shall discontinue deposit of the amount of state tax
 12-6    revenue determined under Subsection (b)(1) of this section on the
 12-7    earlier of:
 12-8                (1)  the end of the third calendar month following the
 12-9    month in which the closing event of the games occurs; or
12-10                (2)  the date the amount of state revenue in the
12-11    Olympic Games trust fund equals 86 percent of the maximum amount of
12-12    state and municipal tax revenue that may be deposited in the trust
12-13    fund under Subsection (m) of this section.
12-14          (g)  The department may use the funds in the Olympic Games
12-15    trust fund only to fulfill joint obligations of the state and the
12-16    endorsing municipality to a site selection organization under a
12-17    games support contract or any other agreement providing assurances
12-18    from the department or the endorsing municipality to a site
12-19    selection organization.
12-20          (h)  A local organizing committee shall provide information
12-21    required by the comptroller to enable the comptroller to fulfill
12-22    the comptroller's duties under this Act, including annual audited
12-23    statements of the local organizing committee's financial records
12-24    required by a site selection organization and data obtained by the
12-25    local organizing committee relating to attendance at the games and
12-26    to the economic impact of the games.  A local organizing committee
 13-1    must provide an annual audited financial statement required by the
 13-2    comptroller not later than the end of the fourth month after the
 13-3    date the period covered by the financial statement ends.
 13-4          (i)  The comptroller shall provide an estimate before August
 13-5    31, 2000, or as soon as practical after that date, of the total
 13-6    amount of state and municipal tax revenue that would be deposited
 13-7    in the Olympic Games trust fund if the games were to be held in
 13-8    this state at a site selected pursuant to an application by a local
 13-9    organizing committee.  The comptroller shall provide the estimate
13-10    on request to a local organizing committee.  A local organizing
13-11    committee may submit the comptroller's estimate to a site selection
13-12    organization.
13-13          (j)  The department may not make a disbursement from the
13-14    Olympic Games trust fund unless the comptroller certifies that the
13-15    disbursement is for a purpose for which the state and the endorsing
13-16    municipality are jointly obligated under a games support contract
13-17    or other agreement described by Subsection (g) of this section.  A
13-18    disbursement may not be made from the trust fund that the
13-19    department determines would be used for the purpose of soliciting
13-20    the relocation of a professional sports franchise located in this
13-21    state.
13-22          (k)  If the comptroller certifies under Subsection (j) of
13-23    this section that a disbursement may be made from the Olympic Games
13-24    trust fund, the obligation shall be satisfied proportionately from
13-25    the state and municipal revenue in the trust fund.
13-26          (l)  Two years after the closing event of the games, the
 14-1    comptroller shall transfer to the general revenue fund any money
 14-2    remaining in the Olympic Games trust fund, not to exceed the amount
 14-3    of state revenue remaining in the trust fund, plus any interest
 14-4    earned on that state revenue.  The comptroller shall remit to the
 14-5    endorsing municipality any money remaining in the trust fund after
 14-6    the required amount is transferred to the general revenue fund.
 14-7          (m)  In no event may:
 14-8                (1)  the total amount of state and municipal tax
 14-9    revenue deposited in the Olympic Games trust fund exceed $100
14-10    million; or
14-11                (2)  the joint liability of the state and the endorsing
14-12    municipality under a joinder agreement and any other games support
14-13    contracts entered into pursuant to this Act exceed the lesser of:
14-14                      (A)  $100 million; or
14-15                      (B)  the total amount of revenue deposited in the
14-16    Olympic Games trust fund and interest earned on the fund.
14-17          SECTION 6.  MUNICIPAL ELECTION.  (a)  Except as provided by
14-18    Subsection (b) of this section, an endorsing municipality must hold
14-19    an election in the municipality to determine whether the
14-20    municipality may contribute a portion of its sales and use taxes
14-21    and hotel occupancy taxes to the Pan American Games trust fund
14-22    under Section 4 of this Act or a portion of its sales and use taxes
14-23    to the Olympic Games trust fund under Section 5 of this Act, as
14-24    applicable to the games for which the municipality has authorized a
14-25    bid on its behalf.  The election must be held on a uniform election
14-26    date that occurs after the effective date of this Act and before
 15-1    the date a site selection organization requires the endorsing
 15-2    municipality and the state to enter into a joinder undertaking
 15-3    relating to the applicable games.
 15-4          (b)  An endorsing municipality authorizing a bid on its
 15-5    behalf for the 2007 Pan American Games is not required to hold an
 15-6    election under this section if there is not a sufficient number of
 15-7    days between the effective date of this Act and a uniform election
 15-8    date that occurs before the date a site selection organization
 15-9    requires that the endorsing municipality and the state enter into a
15-10    joinder undertaking to allow the municipality to submit the
15-11    proposed election to the United States attorney general for
15-12    preclearance under Section 5 of the Voting Rights Act of 1965, as
15-13    amended (42 U.S.C. Section 1973c), at least 120 days before the
15-14    election.
15-15          (c)  If an endorsing municipality is required to hold an
15-16    election under this section and the contribution of a portion of
15-17    the municipality's taxes to the Pan American Games trust fund or
15-18    Olympic Games trust fund, as applicable to the games for which the
15-19    endorsing municipality authorized a site selection bid on its
15-20    behalf, is not approved by a majority of the voters voting in the
15-21    election:
15-22                (1)  the comptroller may not establish the Pan American
15-23    Games trust fund under Section 4 of this Act or the Olympic Games
15-24    trust fund under Section 5 of this Act, as applicable, may not
15-25    retain the municipality's municipal sales and use tax revenue under
15-26    Section 4(d) or 5(d) of this Act, as applicable, from amounts
 16-1    otherwise required to be sent to that municipality under Section
 16-2    321.502, Tax Code, and may not deposit any state tax revenue into
 16-3    the trust fund;
 16-4                (2)  the comptroller is not required to determine the
 16-5    incremental increase in state and municipal tax revenue under
 16-6    Section 4(b) or 5(b) of this Act, as applicable; and
 16-7                (3)  the department may not enter into a games support
 16-8    contract relating to the games for which the municipality has
 16-9    authorized a bid on its behalf.
16-10          SECTION 7.  ASSISTANCE OF DEPARTMENT AND OTHER STATE
16-11    AGENCIES.  (a)  The department shall review requests from a local
16-12    organizing committee that the department, on behalf of the state,
16-13    enter into a games support contract that is required by a site
16-14    selection organization in connection with the committee's bid to
16-15    host any of the games.
16-16          (b)  A request made under Subsection (a) of this section must
16-17    be accompanied by:
16-18                (1)  a general description and summary of the games for
16-19    which a site selection is sought by the local organizing committee;
16-20                (2)  a preliminary and general description of the
16-21    proposal the local organizing committee intends to submit to a site
16-22    selection organization;
16-23                (3)  the estimated cost of preparing and submitting the
16-24    intended proposal;
16-25                (4)  the local organizing committee's intended method
16-26    of obtaining the funds needed for the purpose of preparing the
 17-1    proposal;
 17-2                (5)  a description by type and approximate amount of
 17-3    the site selection application costs that the local organizing
 17-4    committee intends to pay; and
 17-5                (6)  any other information reasonably requested by the
 17-6    department to assist it in reviewing the request.
 17-7          (c)  The department shall approve or deny a request made
 17-8    under Subsection (a) of this section not later than the 30th day
 17-9    after the date the request is submitted.
17-10          (d)  The department may agree in a joinder undertaking
17-11    entered into with a site selection organization that the department
17-12    will:
17-13                (1)  execute a joinder agreement if the site selection
17-14    organization selects a site in this state for the games; and
17-15                (2)  refrain from taking any action after the execution
17-16    of the joinder undertaking that would impair its ability to execute
17-17    the joinder agreement.
17-18          (e)  The department may agree in a joinder agreement that the
17-19    state will:
17-20                (1)  provide or cause to be provided all of the
17-21    governmental funding, facilities, and other resources specified in
17-22    the local organizing committee's bid to host the games;
17-23                (2)  be bound by the terms of, cause the local
17-24    organizing committee to perform, and guarantee performance of the
17-25    local organizing committee's obligations under contracts relating
17-26    to selecting a site in this state for the games; and
 18-1                (3)  be jointly liable with the local organizing
 18-2    committee for:
 18-3                      (A)  obligations of the local organizing
 18-4    committee to a site selection organization, including obligations
 18-5    indemnifying the site selection organization against claims of and
 18-6    liabilities to third parties arising out of or relating to the
 18-7    games; and
 18-8                      (B)  any financial deficit relating to the games.
 18-9          (f)  The department may agree to execute a joinder
18-10    undertaking, a joinder agreement, or other games support contract
18-11    only if:
18-12                (1)  the department determines that:
18-13                      (A)  the state's assurances and obligations under
18-14    the undertaking, agreement, or contract are reasonable; and
18-15                      (B)  any financial commitments of the state will
18-16    be satisfied exclusively by recourse to the Pan American Games
18-17    trust fund or the Olympic Games trust fund, as applicable; and
18-18                (2)  the endorsing municipality has executed an
18-19    agreement with a site selection organization that contains
18-20    substantially similar terms.
18-21          (g)  Before executing a games support contract, the
18-22    department must execute an agreement with the applicable local
18-23    organizing committee requiring that if a site selection
18-24    organization selects a site for the games in this state pursuant to
18-25    an application by the local organizing committee, the local
18-26    organizing committee will repay the state any funds expended by the
 19-1    department under this Act from any surplus of the local organizing
 19-2    committee's funds remaining after the presentation of the games and
 19-3    after the payment of the expenses and obligations incurred by the
 19-4    local organizing committee.
 19-5          (h)  A games support contract may contain any additional
 19-6    provisions the department requires in order to carry out the
 19-7    purposes of this Act.
 19-8          (i)  The department may require a local organizing committee
 19-9    to list the state as an additional insured on any policy of
19-10    insurance purchased by the local organizing committee and required
19-11    by a site selection organization to be in effect in connection with
19-12    the games.
19-13          (j)  The Texas Department of Transportation, the Department
19-14    of Public Safety of the State of Texas, and the Texas Department of
19-15    Housing and Community Affairs may:
19-16                (1)  assist a local organizing committee in developing
19-17    applications and planning for the games; and
19-18                (2)  enter into contracts, agreements, or assurances
19-19    related to the presentation of the games.
19-20          (k)  Notwithstanding any other provision of this Act, the
19-21    department may not obligate the state to pay or otherwise provide
19-22    funds to cover the costs of the construction or purchase of a
19-23    building or other facility by a municipality.
19-24          SECTION 8.  APPLICATION OF OPEN MEETINGS AND OPEN RECORDS
19-25    LAWS.  (a)  A local organizing committee and its governing body are
19-26    subject to Chapters 551 and 552, Government Code.  For purposes of
 20-1    those chapters, the governing body of a local organizing committee
 20-2    is considered a governmental body as defined by those chapters.
 20-3    For purposes of Chapter 552, Government Code, the records and
 20-4    information of a local organizing committee are considered public
 20-5    records and public information.
 20-6          (b)  A final bid that is submitted by a local organizing
 20-7    committee to a site selection organization, or a draft of that bid,
 20-8    is excepted from required public disclosure under Chapter 552,
 20-9    Government Code, until the applicable site selection organization
20-10    selects the site for the applicable games.
20-11          (c)  Chapter 551, Government Code, does not apply to a
20-12    meeting of a subcommittee of the governing body of a local
20-13    organizing committee if:
20-14                (1)  the subcommittee consists of not more than five
20-15    members;
20-16                (2)  the meeting is not held in a public building;
20-17                (3)  the subcommittee makes a tape recording of the
20-18    proceedings of the meeting in compliance with Section 551.103,
20-19    Government Code, and the local organizing committee preserves the
20-20    tape recording for two years from the date the recording is made;
20-21                (4)  the subcommittee does not discuss or decide any
20-22    financial matters during the meeting; and
20-23                (5)  any decision made by the subcommittee will not
20-24    become effective without being reviewed and officially adopted by
20-25    the governing body of the local organizing committee at a meeting
20-26    held in compliance with Chapter 551, Government Code.
 21-1          (d)  A tape recording made under Subsection (c) of this
 21-2    section is subject to required public disclosure in the manner
 21-3    prescribed by Chapter 552, Government Code, for a public record.
 21-4          SECTION 9.  TAX EXEMPTIONS FOR LOCAL ORGANIZING COMMITTEE.
 21-5    (a)  A local organizing committee that is exempt from paying
 21-6    federal income tax under Section 501(c), Internal Revenue Code of
 21-7    1986, as amended, is exempt from:
 21-8                (1)  the sales, excise, and use taxes imposed under
 21-9    Chapter 151, Tax Code;
21-10                (2)  taxes on the sale, rental, or use of a motor
21-11    vehicle imposed under Chapter 152, Tax Code;
21-12                (3)  the hotel occupancy tax imposed under Chapter 156,
21-13    Tax Code; and
21-14                (4)  the franchise tax imposed under Chapter 171, Tax
21-15    Code.
21-16          (b)  The exemptions provided by Subsections (a)(1), (2), and
21-17    (3) of this section take effect on the first day of the first month
21-18    after the effective date of this Act.  The exemption provided by
21-19    Subsection (a)(4) of this section applies only to a tax imposed
21-20    under Chapter 171, Tax Code, that becomes due on or after the
21-21    effective date of this Act.
21-22          SECTION 10.  ETHICS.  (a)  A local organizing committee that
21-23    submits a request under Section 7(a) of this Act must:
21-24                (1)  affirm as a part of that request that it is fully
21-25    in compliance with the ethical guidelines set forth in all
21-26    contracts entered into and rules adopted by the applicable site
 22-1    selection organization, including the site selection organization's
 22-2    requirements regarding disclosure of any financial interest by a
 22-3    director, officer, or senior-level employee of the local organizing
 22-4    committee in any proposed transaction with the local organizing
 22-5    committee;
 22-6                (2)  not later than the 15th day of the first month
 22-7    following each calendar quarter, file with the secretary of the
 22-8    endorsing municipality for which the local organizing committee
 22-9    submits a request:
22-10                      (A)  a certification that the local organizing
22-11    committee continues to be in compliance with the ethical guidelines
22-12    described by Subdivision (1) of this subsection; and
22-13                      (B)  a report of contributions to and
22-14    expenditures by the local organizing committee in the manner
22-15    described by Subsection (b) of this section; and
22-16                (3)  file with the secretary of the endorsing
22-17    municipality on April 15 of each year a copy of each financial
22-18    statement required to be submitted by a local organizing committee
22-19    or a member of a local organizing committee to the United States
22-20    Olympic Committee during the preceding calendar year.
22-21          (b)  A report made under Subsection (a)(2)(B) of this section
22-22    must include:
22-23                (1)  for each contribution made to a local organizing
22-24    committee:
22-25                      (A)  the contributor's full name and address;
22-26                      (B)  the date of the contribution;
 23-1                      (C)  whether the contribution is cash, made by
 23-2    check, or in-kind; and
 23-3                      (D)  the amount or market value of the
 23-4    contribution; and
 23-5                (2)  for each expenditure made by a local organizing
 23-6    committee:
 23-7                      (A)  the full name and address of the person who
 23-8    receives payment of the expenditure;
 23-9                      (B)  the date of the expenditure;
23-10                      (C)  the purpose of the expenditure; and
23-11                      (D)  the amount of the expenditure.
23-12          (c)  The endorsing municipality for which a local organizing
23-13    committee submits a request under Section 7(a) of this Act must
23-14    have a comprehensive ethics code establishing standards of conduct,
23-15    disclosure requirements, and enforcement mechanisms relating to
23-16    city officials and employees before the department may consider the
23-17    request.
23-18          SECTION 11.  BRIBERY.  (a)  A person commits an offense if
23-19    the person intentionally or knowingly offers, confers, or agrees to
23-20    confer on another person, or solicits, accepts, or agrees to accept
23-21    from another person, any benefit as consideration for the
23-22    recipient's decision, opinion, recommendation, vote, or other
23-23    exercise of discretion as a member or employee of a local
23-24    organizing committee or site selection organization.
23-25          (b)  It is a defense to prosecution under Subsection (a) of
23-26    this section that the benefit conferred is a meal or entertainment
 24-1    reported under Section 10(a)(2)(B) of this Act.
 24-2          (c)  It is not a defense to prosecution under Subsection (a)
 24-3    of this section that a person whom the actor sought to influence
 24-4    was not qualified to act as the actor intended the person to act.
 24-5          (d)  It is not a defense to prosecution under Subsection (a)
 24-6    of this section that the benefit is not offered or conferred or
 24-7    that the benefit is not solicited or accepted until after:
 24-8                (1)  the decision, opinion, recommendation, vote, or
 24-9    other exercise of discretion has occurred; or
24-10                (2)  the person whom the actor sought to influence is
24-11    no longer a member of the local organizing committee or a site
24-12    selection organization.
24-13          (e)  In this section, "benefit" has the meaning assigned by
24-14    Section 36.01, Penal Code.
24-15          (f)  An offense under this section is a felony of the second
24-16    degree.
24-17          SECTION 12.  EMERGENCY.  The importance of this legislation
24-18    and the crowded condition of the calendars in both houses create an
24-19    emergency and an imperative public necessity that the
24-20    constitutional rule requiring bills to be read on three several
24-21    days in each house be suspended, and this rule is hereby suspended.
         _______________________________     _______________________________
             President of the Senate              Speaker of the House
               I hereby certify that S.B. No. 456 passed the Senate on
         April 8, 1999, by the following vote:  Yeas 22, Nays 8; and that
         the Senate concurred in House amendments on May 28, 1999, by the
         following vote:  Yeas 30, Nays 0.
                                             _______________________________
                                                 Secretary of the Senate
               I hereby certify that S.B. No. 456 passed the House, with
         amendments, on May 22, 1999, by a non-record vote.
                                             _______________________________
                                                 Chief Clerk of the House
         Approved:
         _______________________________
                     Date
         _______________________________
                   Governor