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