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.