76R14780 AJA-D
By Madla, et al. S.B. No. 456
Substitute the following for S.B. No. 456:
By Wolens C.S.S.B. No. 456
A BILL TO BE ENTITLED
1-1 AN ACT
1-2 relating to facilitating and supporting efforts of certain
1-3 municipalities to promote economic development by hosting the Pan
1-4 American Games and the Olympic Games; providing a penalty.
1-5 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
1-6 SECTION 1. DEFINITIONS. In this Act:
1-7 (1) "Department" means the Texas Department of
1-8 Economic Development.
1-9 (2) "Endorsing municipality" means a municipality that
1-10 has a population of 850,000 or more according to the most recent
1-11 federal decennial census and that authorizes a bid by a local
1-12 organizing committee for selection of the municipality as the site
1-13 of the 2007 Pan American Games or the 2012 Olympic Games.
1-14 (3) "Games" means the 2007 Pan American Games or the
1-15 2012 Olympic Games.
1-16 (4) "Games support contract" means a joinder
1-17 undertaking, a joinder agreement, or a similar contract executed by
1-18 the department and containing terms permitted or required by this
1-19 Act.
1-20 (5) "Joinder agreement" means an agreement entered
1-21 into by:
1-22 (A) the department on behalf of this state and a
1-23 site selection organization setting out representations and
1-24 assurances by the state in connection with the selection of a site
2-1 in this state for the location of any of the games; or
2-2 (B) an endorsing municipality and a site
2-3 selection organization setting out representations and assurances
2-4 by the endorsing municipality in connection with the selection of a
2-5 site in this state for the location of any of the games.
2-6 (6) "Joinder undertaking" means an agreement entered
2-7 into by:
2-8 (A) the department on behalf of this state and a
2-9 site selection organization that the state will execute a joinder
2-10 agreement in the event that the site selection organization selects
2-11 a site in this state for any of the games; or
2-12 (B) an endorsing municipality and a site
2-13 selection organization that the municipality will execute a joinder
2-14 agreement in the event that the site selection organization selects
2-15 a site in this state for any of the games.
2-16 (7) "Local organizing committee" means a nonprofit
2-17 corporation or its successor in interest that:
2-18 (A) has been authorized by an endorsing
2-19 municipality to pursue an application and bid on the applicant's
2-20 behalf to a site selection organization for selection as the site
2-21 of one of the games; or
2-22 (B) has executed an agreement with a site
2-23 selection 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.
2-27 SECTION 2. PURPOSE. The purpose of this Act is to provide
3-1 assurances required by a site selection organization sponsoring the
3-2 games.
3-3 SECTION 3. LEGISLATIVE FINDINGS. The conduct in this state
3-4 of the 2007 Pan American Games or the 2012 Olympic Games will:
3-5 (1) provide invaluable public visibility throughout
3-6 the world for this state and the communities where the games are
3-7 held;
3-8 (2) encourage and provide major economic benefits to
3-9 the communities where the games are held and to the entire state;
3-10 and
3-11 (3) provide job creation opportunities for local and
3-12 Texas businesses.
3-13 SECTION 4. GUARANTEE OF STATE AND MUNICIPAL OBLIGATIONS; PAN
3-14 AMERICAN GAMES TRUST FUND. (a) In this section:
3-15 (1) "Games" means the 2007 Pan American Games.
3-16 (2) "Site selection organization" means the United
3-17 States Olympic Committee or the Pan American Sports Organization.
3-18 (b) If a site selection organization selects a site for the
3-19 games in this state pursuant to an application by a local
3-20 organizing committee, after the first occurrence of a measurable
3-21 economic impact in this state as a result of the preparation for
3-22 the games, as determined by the comptroller, but in no event later
3-23 than one year before the scheduled opening event of the games, the
3-24 comptroller shall determine for each subsequent calendar quarter,
3-25 in accordance with procedures developed by the comptroller:
3-26 (1) the incremental increase in the receipts to the
3-27 state from the taxes imposed within the endorsing municipality
4-1 under Chapter 151, Tax Code, that is directly attributable, as
4-2 determined by the comptroller, to the preparation for and
4-3 presentation of the games and related events; and
4-4 (2) the incremental increase in the receipts collected
4-5 by the state on behalf of the endorsing municipality from the sales
4-6 and use tax imposed by the endorsing municipality under Section
4-7 321.101(a), Tax Code, that is directly attributable, as determined
4-8 by the comptroller, to the preparation for and presentation of the
4-9 games and related events.
4-10 (c) Subject to Section 6 of this Act, the comptroller shall
4-11 retain, for the purpose of guaranteeing the joint obligations of
4-12 the state and the endorsing municipality under a games support
4-13 contract and this Act, the amount of municipal sales and use tax
4-14 revenue determined under Subsection (b)(2) of this section from the
4-15 amounts otherwise required to be sent to the municipality under
4-16 Section 321.502, Tax Code, beginning with the first distribution of
4-17 that tax revenue that occurs after the date the comptroller makes
4-18 the determination of the amount of municipal sales and use tax
4-19 revenue under Subsection (b)(2). The comptroller shall discontinue
4-20 retaining municipal sales and use tax revenue under this subsection
4-21 on the earlier of:
4-22 (1) the end of the third calendar month following the
4-23 month in which the closing event of the games occurs; or
4-24 (2) the date the amount of municipal sales and use tax
4-25 revenue and municipal hotel occupancy tax revenue in the Pan
4-26 American Games trust fund equals 14 percent of the maximum amount
4-27 of state and municipal tax revenue that may be deposited in the
5-1 trust fund under Subsection (m) of this section.
5-2 (d) In addition to municipal sales and use tax revenue
5-3 retained under Subsection (c) of this section, an endorsing
5-4 municipality may guarantee its obligations under a games support
5-5 contract and this Act by pledging surcharges from user fees,
5-6 including parking or ticket fees, charged in connection with
5-7 presentation of the games.
5-8 (e) Subject to Section 6 of this Act, the comptroller shall
5-9 deposit the amount of state tax revenue determined under Subsection
5-10 (b)(1) of this section and the amount of municipal sales and use
5-11 tax revenue retained under Subsection (c) of this section into a
5-12 trust fund designated as the Pan American Games trust fund. The
5-13 trust fund is established outside the treasury but is held in trust
5-14 by the comptroller for the administration of this Act. Money in
5-15 the trust fund may be spent by the department without appropriation
5-16 only as provided by this Act. The comptroller shall discontinue
5-17 deposit of the amount of state tax revenue determined under
5-18 Subsection (b)(1) of this section on the earlier of:
5-19 (1) the end of the third calendar month following the
5-20 month in which the closing event of the games occurs; or
5-21 (2) the date the amount of state revenue in the Pan
5-22 American Games trust fund equals 86 percent of the maximum amount
5-23 of state and municipal tax revenue that may be deposited in the
5-24 trust fund under Subsection (m) of this section.
5-25 (f) The endorsing municipality may deposit into the Pan
5-26 American Games trust fund any amount of available revenue from the
5-27 municipality's hotel occupancy tax imposed under Chapter 351, Tax
6-1 Code. Deposit of that revenue into the trust fund is considered an
6-2 authorized use of the revenue for purposes of Chapter 351, Tax
6-3 Code. The comptroller shall credit any amount of municipal hotel
6-4 occupancy tax revenue deposited by the endorsing municipality into
6-5 the trust fund toward the amounts otherwise required to be retained
6-6 under Subsection (c) of this section from the municipality's sales
6-7 and use tax revenue and shall reduce the amount of the
6-8 municipality's sales and use tax revenue retained under Subsection
6-9 (c) from the next distribution of that revenue to the municipality
6-10 under Section 321.502, Tax Code.
6-11 (g) The department may use the funds in the Pan American
6-12 Games trust fund only to fulfill joint obligations of the state and
6-13 the endorsing municipality to a site selection organization under a
6-14 games support contract or any other agreement providing assurances
6-15 from the department or the endorsing municipality to a site
6-16 selection organization.
6-17 (h) A local organizing committee shall provide information
6-18 required by the comptroller to enable the comptroller to fulfill
6-19 the comptroller's duties under this Act, including annual audited
6-20 statements of the local organizing committee's financial records
6-21 required by a site selection organization and data obtained by the
6-22 local organizing committee relating to attendance at the games and
6-23 to the economic impact of the games. A local organizing committee
6-24 must provide an annual audited financial statement required by the
6-25 comptroller not later than the end of the fourth month after the
6-26 date the period covered by the financial statement ends.
6-27 (i) The comptroller shall provide an estimate before August
7-1 31, 1999, of the total amount of state and municipal tax revenue
7-2 that would be deposited in the Pan American Games trust fund before
7-3 January 1, 2008, if the games were to be held in this state at a
7-4 site selected pursuant to an application by a local organizing
7-5 committee. The comptroller shall provide the estimate on request
7-6 to a local organizing committee. A local organizing committee may
7-7 submit the comptroller's estimate to a site selection organization.
7-8 (j) The department may not make a disbursement from the Pan
7-9 American Games trust fund unless the comptroller certifies that the
7-10 disbursement is for a purpose for which the state and the endorsing
7-11 municipality are jointly obligated under a games support contract
7-12 or other agreement described by Subsection (g) of this section.
7-13 (k) If the comptroller certifies under Subsection (j) of
7-14 this section that a disbursement may be made from the Pan American
7-15 Games trust fund, the obligation shall be satisfied first out of
7-16 municipal revenue deposited in the trust fund and any interest
7-17 earned on that municipal revenue. If the municipal revenue is not
7-18 sufficient to satisfy the entire deficit, state revenue deposited
7-19 into the trust fund and any interest earned on that state revenue
7-20 shall be used to satisfy the portion of the deficit not covered by
7-21 the municipal revenue.
7-22 (l) On January 1, 2009, the comptroller shall transfer to
7-23 the general revenue fund any money remaining in the Pan American
7-24 Games trust fund, not to exceed the amount of state revenue
7-25 remaining in the trust fund, plus any interest earned on that state
7-26 revenue. The comptroller shall remit to the endorsing municipality
7-27 any money remaining in the trust fund after the required amount is
8-1 transferred to the general revenue fund.
8-2 (m) In no event may:
8-3 (1) the total amount of state and municipal tax
8-4 revenue deposited in the Pan American Games trust fund exceed $20
8-5 million; or
8-6 (2) the joint liability of the state and the endorsing
8-7 municipality under a joinder agreement and any other games support
8-8 contracts entered into pursuant to this Act exceed $20 million.
8-9 SECTION 5. GUARANTEE OF STATE AND MUNICIPAL OBLIGATIONS;
8-10 OLYMPIC GAMES TRUST FUND. (a) In this section:
8-11 (1) "Games" means the 2012 Olympic Games.
8-12 (2) "Site selection organization" means the United
8-13 States Olympic Committee or the International Olympic Committee.
8-14 (b) If a site selection organization selects a site for the
8-15 games in this state pursuant to an application by a local
8-16 organizing committee, after the first occurrence of a measurable
8-17 economic impact in this state as a result of the preparation for
8-18 the games, as determined by the comptroller, but in no event later
8-19 than one year before the scheduled opening event of the games, the
8-20 comptroller shall determine for each subsequent calendar quarter,
8-21 in accordance with procedures developed by the comptroller:
8-22 (1) the incremental increase in the receipts to the
8-23 state from the taxes imposed within the endorsing municipality
8-24 under Chapter 151, Tax Code, that is directly attributable, as
8-25 determined by the comptroller, to the preparation for and
8-26 presentation of the games and related events; and
8-27 (2) the incremental increase in the receipts collected
9-1 by the state on behalf of the endorsing municipality from the sales
9-2 and use tax imposed by the endorsing municipality under Section
9-3 321.101(a), Tax Code, that is directly attributable, as determined
9-4 by the comptroller, to the preparation for and presentation of the
9-5 games and related events.
9-6 (c) Subject to Section 6 of this Act, the comptroller shall
9-7 retain, for the purpose of guaranteeing the joint obligations of
9-8 the state and the endorsing municipality under a games support
9-9 contract and this Act, the amount of municipal sales and use tax
9-10 revenue determined under Subsection (b)(2) of this section from the
9-11 amounts otherwise required to be sent to the municipality under
9-12 Section 321.502, Tax Code, beginning with the first distribution of
9-13 that tax revenue that occurs after the date the comptroller makes
9-14 the determination of the amount of municipal sales and use tax
9-15 revenue under Subsection (b)(2). The comptroller shall discontinue
9-16 retaining municipal sales and use tax revenue under this subsection
9-17 on the earlier of:
9-18 (1) the end of the third calendar month following the
9-19 month in which the closing event of the games occurs; or
9-20 (2) the date the amount of municipal sales and use tax
9-21 revenue in the Olympic Games trust fund equals 14 percent of the
9-22 maximum amount of state and municipal tax revenue that may be
9-23 deposited in the trust fund under Subsection (l) of this section.
9-24 (d) In addition to municipal sales and use tax revenue
9-25 retained under Subsection (c) of this section, an endorsing
9-26 municipality may guarantee its obligations under a games support
9-27 contract and this Act by pledging surcharges from user fees,
10-1 including parking or ticket fees, charged in connection with
10-2 presentation of the games.
10-3 (e) Subject to Section 6 of this Act, the comptroller shall
10-4 deposit the amount of state tax revenue determined under Subsection
10-5 (b)(1) of this section and the amount of municipal sales and use
10-6 tax revenue retained under Subsection (c) of this section into a
10-7 trust fund designated as the Olympic Games trust fund. The trust
10-8 fund is established outside the treasury but is held in trust by
10-9 the comptroller for the administration of this Act. Money in the
10-10 trust fund may be spent by the department without appropriation
10-11 only as provided by this Act. The comptroller shall discontinue
10-12 deposit of the amount of state tax revenue determined under
10-13 Subsection (b)(1) of this section on the earlier of:
10-14 (1) the end of the third calendar month following the
10-15 month in which the closing event of the games occurs; or
10-16 (2) the date the amount of state revenue in the
10-17 Olympic Games trust fund equals 86 percent of the maximum amount of
10-18 state and municipal tax revenue that may be deposited in the trust
10-19 fund under Subsection (l) of this section.
10-20 (f) The department may use the funds in the Olympic Games
10-21 trust fund only to fulfill joint obligations of the state and the
10-22 endorsing municipality to a site selection organization under a
10-23 games support contract or any other agreement providing assurances
10-24 from the department or the endorsing municipality to a site
10-25 selection organization.
10-26 (g) A local organizing committee shall provide information
10-27 required by the comptroller to enable the comptroller to fulfill
11-1 the comptroller's duties under this Act, including annual audited
11-2 statements of the local organizing committee's financial records
11-3 required by a site selection organization and data obtained by the
11-4 local organizing committee relating to attendance at the games and
11-5 to the economic impact of the games. A local organizing committee
11-6 must provide an annual audited financial statement required by the
11-7 comptroller not later than the end of the fourth month after the
11-8 date the period covered by the financial statement ends.
11-9 (h) The comptroller shall provide an estimate before August
11-10 31, 2000, or as soon as practical after that date, of the total
11-11 amount of state and municipal tax revenue that would be deposited
11-12 in the Olympic Games trust fund if the games were to be held in
11-13 this state at a site selected pursuant to an application by a local
11-14 organizing committee. The comptroller shall provide the estimate
11-15 on request to a local organizing committee. A local organizing
11-16 committee may submit the comptroller's estimate to a site selection
11-17 organization.
11-18 (i) The department may not make a disbursement from the
11-19 Olympic Games trust fund unless the comptroller certifies that the
11-20 disbursement is for a purpose for which the state and the endorsing
11-21 municipality are jointly obligated under a games support contract
11-22 or other agreement described by Subsection (f) of this section.
11-23 (j) If the comptroller certifies under Subsection (i) of
11-24 this section that a disbursement may be made from the Olympic Games
11-25 trust fund, the obligation shall be satisfied proportionately from
11-26 the state and municipal revenue in the trust fund.
11-27 (k) Two years after the closing event of the games, the
12-1 comptroller shall transfer to the general revenue fund any money
12-2 remaining in the Olympic Games trust fund, not to exceed the amount
12-3 of state revenue remaining in the trust fund, plus any interest
12-4 earned on that state revenue. The comptroller shall remit to the
12-5 endorsing municipality any money remaining in the trust fund after
12-6 the required amount is transferred to the general revenue fund.
12-7 (l) In no event may:
12-8 (1) the total amount of state and municipal tax
12-9 revenue deposited in the Olympic Games trust fund exceed $100
12-10 million; or
12-11 (2) the joint liability of the state and the endorsing
12-12 municipality under a joinder agreement and any other games support
12-13 contracts entered into pursuant to this Act exceed $100 million.
12-14 SECTION 6. MUNICIPAL ELECTION. (a) Except as provided by
12-15 Subsection (b) of this section, an endorsing municipality must hold
12-16 an election in the municipality to determine whether the
12-17 municipality may contribute a portion of its sales and use taxes to
12-18 the Pan American Games trust fund under Section 4 of this Act or to
12-19 the Olympic Games trust fund under Section 5 of this Act, as
12-20 applicable to the games for which the municipality has authorized a
12-21 bid on its behalf. The election must be held on a uniform election
12-22 date that occurs after the effective date of this Act and before
12-23 the date a site selection organization requires the endorsing
12-24 municipality and the state to enter into a joinder undertaking
12-25 relating to the applicable games.
12-26 (b) An endorsing municipality authorizing a bid on its
12-27 behalf for the 2007 Pan American Games is not required to hold an
13-1 election under this section if there is not a sufficient number of
13-2 days between the effective date of this Act and a uniform election
13-3 date that occurs before the date a site selection organization
13-4 requires that the endorsing municipality and the state enter into a
13-5 joinder undertaking to allow the municipality to submit the
13-6 proposed election to the United States attorney general for
13-7 preclearance under Section 5 of the Voting Rights Act of 1965, as
13-8 amended (42 U.S.C. Section 1973c), at least 120 days before the
13-9 election.
13-10 (c) If an endorsing municipality is required to hold an
13-11 election under this section and the contribution of a portion of
13-12 the municipality's sales and use taxes is not approved by a
13-13 majority of the voters voting in the election:
13-14 (1) the comptroller may not retain the municipality's
13-15 municipal sales and use tax revenue under Section 4(c) or 5(c) of
13-16 this Act, as applicable, from amounts otherwise required to be sent
13-17 to that municipality under Section 321.502, Tax Code, or deposit
13-18 state tax revenue into the Pan American Games trust fund under
13-19 Section 4(e) of this Act or the Olympic Games trust fund under
13-20 Section 5(e) of this Act, as applicable;
13-21 (2) the comptroller is not required to determine the
13-22 incremental increase in state and municipal tax revenue under
13-23 Section 4(b) or 5(b) of this Act, as applicable; and
13-24 (3) the department may not enter into a games support
13-25 contract relating to the games for which the municipality has
13-26 authorized a bid on its behalf.
13-27 SECTION 7. ASSISTANCE OF DEPARTMENT AND OTHER STATE
14-1 AGENCIES. (a) The department shall review requests from a local
14-2 organizing committee that the department, on behalf of the state,
14-3 enter into a games support contract that is required by a site
14-4 selection organization in connection with the committee's bid to
14-5 host any of the games.
14-6 (b) A request made under Subsection (a) of this section must
14-7 be accompanied by:
14-8 (1) a general description and summary of the games for
14-9 which a site selection is sought by the local organizing committee;
14-10 (2) a preliminary and general description of the
14-11 proposal the local organizing committee intends to submit to a site
14-12 selection organization;
14-13 (3) the estimated cost of preparing and submitting the
14-14 intended proposal;
14-15 (4) the local organizing committee's intended method
14-16 of obtaining the funds needed for the purpose of preparing the
14-17 proposal;
14-18 (5) a description by type and approximate amount of
14-19 the site selection application costs that the local organizing
14-20 committee intends to pay; and
14-21 (6) any other information reasonably requested by the
14-22 department to assist it in reviewing the request.
14-23 (c) The department shall approve or deny a request made
14-24 under Subsection (a) of this section not later than the 30th day
14-25 after the date the request is submitted.
14-26 (d) The department may agree in a joinder undertaking
14-27 entered into with a site selection organization that the department
15-1 will:
15-2 (1) execute a joinder agreement if the site selection
15-3 organization selects a site in this state for the games; and
15-4 (2) refrain from taking any action after the execution
15-5 of the joinder undertaking that would impair its ability to execute
15-6 the joinder agreement.
15-7 (e) The department may agree in a joinder agreement that the
15-8 state will:
15-9 (1) provide or cause to be provided all of the
15-10 governmental funding, facilities, and other resources specified in
15-11 the local organizing committee's bid to host the games;
15-12 (2) be bound by the terms of, cause the local
15-13 organizing committee to perform, and guarantee performance of the
15-14 local organizing committee's obligations under contracts relating
15-15 to selecting a site in this state for the games; and
15-16 (3) be jointly liable with the local organizing
15-17 committee for:
15-18 (A) obligations of the local organizing
15-19 committee to a site selection organization, including obligations
15-20 indemnifying the site selection organization against claims of and
15-21 liabilities to third parties arising out of or relating to the
15-22 games; and
15-23 (B) any financial deficit relating to the games.
15-24 (f) The department may agree to execute a joinder
15-25 undertaking, a joinder agreement, or other games support contract
15-26 only if:
15-27 (1) the department determines that:
16-1 (A) the state's assurances and obligations under
16-2 the undertaking, agreement, or contract are reasonable; and
16-3 (B) any financial commitments of the state will
16-4 be satisfied exclusively by recourse to the Pan American Games
16-5 trust fund or the Olympic Games trust fund, as applicable; and
16-6 (2) the endorsing municipality has executed an
16-7 agreement with a site selection organization that contains
16-8 substantially similar terms.
16-9 (g) Before executing a games support contract, the
16-10 department must execute an agreement with the applicable local
16-11 organizing committee requiring that if a site selection
16-12 organization selects a site for the games in this state pursuant to
16-13 an application by the local organizing committee, the local
16-14 organizing committee will repay the state any funds expended by the
16-15 department under this Act from any surplus of the local organizing
16-16 committee's funds remaining after the presentation of the games and
16-17 after the payment of the expenses and obligations incurred by the
16-18 local organizing committee.
16-19 (h) A games support contract may contain any additional
16-20 provisions the department requires in order to carry out the
16-21 purposes of this Act.
16-22 (i) The department may require a local organizing committee
16-23 to list the state as an additional insured on any policy of
16-24 insurance purchased by the local organizing committee and required
16-25 by a site selection organization to be in effect in connection with
16-26 the games.
16-27 (j) The Texas Department of Transportation, the Texas
17-1 Department of Public Safety, and the Texas Department of Housing
17-2 and Community Affairs may:
17-3 (1) assist a local organizing committee in developing
17-4 applications and planning for the games; and
17-5 (2) enter into contracts, agreements, or assurances
17-6 related to the presentation of the games.
17-7 (k) Notwithstanding any other provision of this Act, the
17-8 department may not obligate the state to pay or otherwise provide
17-9 funds to cover the costs of the construction or purchase of a
17-10 building or other facility by a municipality.
17-11 SECTION 8. APPLICATION OF OPEN MEETINGS AND OPEN RECORDS
17-12 LAWS. (a) A local organizing committee and its governing body are
17-13 subject to Chapters 551 and 552, Government Code. For purposes of
17-14 those chapters, the governing body of a local organizing committee
17-15 is considered a governmental body as defined by those chapters.
17-16 For purposes of Chapter 552, Government Code, the records and
17-17 information of a local organizing committee are considered public
17-18 records and public information.
17-19 (b) A final bid that is submitted by a local organizing
17-20 committee to a site selection organization, or a draft of that bid,
17-21 is excepted from required public disclosure under Chapter 552,
17-22 Government Code, until the applicable site selection organization
17-23 selects the site for the applicable games.
17-24 (c) Chapter 551, Government Code, does not apply to a
17-25 meeting of a subcommittee of the governing body of a local
17-26 organizing committee if:
17-27 (1) the subcommittee consists of not more than five
18-1 members;
18-2 (2) the meeting is not held in a public building;
18-3 (3) the subcommittee makes a tape recording of the
18-4 proceedings of the meeting in compliance with Section 551.103,
18-5 Government Code, and the local organizing committee preserves the
18-6 tape recording for two years from the date the recording is made;
18-7 (4) the subcommittee does not discuss or decide any
18-8 financial matters during the meeting; and
18-9 (5) any decision made by the subcommittee will not
18-10 become effective without being reviewed and officially adopted by
18-11 the governing body of the local organizing committee at a meeting
18-12 held in compliance with Chapter 551, Government Code.
18-13 (d) A tape recording made under Subsection (c) of this
18-14 section is subject to required public disclosure in the manner
18-15 prescribed by Chapter 552, Government Code, for a public record.
18-16 SECTION 9. TAX EXEMPTIONS FOR LOCAL ORGANIZING COMMITTEE.
18-17 (a) A local organizing committee that is exempt from paying
18-18 federal income tax under Section 501(c), Internal Revenue Code of
18-19 1986, as amended, is exempt from:
18-20 (1) the sales, excise, and use taxes imposed under
18-21 Chapter 151, Tax Code;
18-22 (2) taxes on the sale, rental, or use of a motor
18-23 vehicle imposed under Chapter 152, Tax Code;
18-24 (3) the hotel occupancy tax imposed under Chapter 156,
18-25 Tax Code; and
18-26 (4) the franchise tax imposed under Chapter 171, Tax
18-27 Code.
19-1 (b) The exemptions provided by Subsections (a)(1), (2), and
19-2 (3) of this section take effect on the first day of the first month
19-3 after the effective date of this Act. The exemption provided by
19-4 Subsection (a)(4) of this section applies only to a tax imposed
19-5 under Chapter 171, Tax Code, that becomes due on or after the
19-6 effective date of this Act.
19-7 SECTION 10. ETHICS. (a) A local organizing committee that
19-8 submits a request under Section 7(a) of this Act must:
19-9 (1) affirm as a part of that request that it is fully
19-10 in compliance with the ethical guidelines set forth in all
19-11 contracts entered into and rules adopted by the applicable site
19-12 selection organization, including the site selection organization's
19-13 requirements regarding disclosure of any financial interest by a
19-14 director, officer, or senior-level employee of the local organizing
19-15 committee in any proposed transaction with the local organizing
19-16 committee;
19-17 (2) not later than the 15th day of the first month
19-18 following each calendar quarter, file with the secretary of the
19-19 endorsing municipality for which the local organizing committee
19-20 submits a request:
19-21 (A) a certification that the local organizing
19-22 committee continues to be in compliance with the ethical guidelines
19-23 described by Subdivision (1) of this subsection; and
19-24 (B) a report of contributions to and
19-25 expenditures by the local organizing committee in the manner
19-26 described by Subsection (b) of this section; and
19-27 (3) file with the secretary of the endorsing
20-1 municipality on April 15 of each year a copy of each financial
20-2 statement required to be submitted by a local organizing committee
20-3 or a member of a local organizing committee to the United States
20-4 Olympic Committee during the preceding calendar year.
20-5 (b) A report made under Subsection (a)(2)(B) of this section
20-6 must include:
20-7 (1) for each contribution made to a local organizing
20-8 committee:
20-9 (A) the contributor's full name and address;
20-10 (B) the date of the contribution;
20-11 (C) whether the contribution is cash, made by
20-12 check, or in-kind; and
20-13 (D) the amount or market value of the
20-14 contribution; and
20-15 (2) for each expenditure made by a local organizing
20-16 committee:
20-17 (A) the full name and address of the person who
20-18 receives payment of the expenditure;
20-19 (B) the date of the expenditure;
20-20 (C) the purpose of the expenditure; and
20-21 (D) the amount of the expenditure.
20-22 (c) The endorsing municipality for which a local organizing
20-23 committee submits a request under Section 7(a) of this Act must
20-24 have a comprehensive ethics code establishing standards of conduct,
20-25 disclosure requirements, and enforcement mechanisms relating to
20-26 city officials and employees before the department may consider the
20-27 request.
21-1 SECTION 11. BRIBERY. (a) A person commits an offense if
21-2 the person intentionally or knowingly offers, confers, or agrees to
21-3 confer on another person, or solicits, accepts, or agrees to accept
21-4 from another person, any benefit as consideration for the
21-5 recipient's decision, opinion, recommendation, vote, or other
21-6 exercise of discretion as a member or employee of a local
21-7 organizing committee or site selection organization.
21-8 (b) It is a defense to prosecution under Subsection (a) of
21-9 this section that the benefit conferred is a meal or entertainment
21-10 reported under Section 10(a)(2)(B) of this Act.
21-11 (c) It is not a defense to prosecution under Subsection (a)
21-12 of this section that a person whom the actor sought to influence
21-13 was not qualified to act as the actor intended the person to act.
21-14 (d) It is not a defense to prosecution under Subsection (a)
21-15 of this section that the benefit is not offered or conferred or
21-16 that the benefit is not solicited or accepted until after:
21-17 (1) the decision, opinion, recommendation, vote, or
21-18 other exercise of discretion has occurred; or
21-19 (2) the person whom the actor sought to influence is
21-20 no longer a member of the local organizing committee or a site
21-21 selection organization.
21-22 (e) In this section, "benefit" has the meaning assigned by
21-23 Section 36.01, Penal Code.
21-24 (f) An offense under this section is a felony of the second
21-25 degree.
21-26 SECTION 12. EMERGENCY. The importance of this legislation
21-27 and the crowded condition of the calendars in both houses create an
22-1 emergency and an imperative public necessity that the
22-2 constitutional rule requiring bills to be read on three several
22-3 days in each house be suspended, and this rule is hereby suspended.