By Madla                                               S.B. No. 456
         76R4250 AJA-F                           
                                A BILL TO BE ENTITLED
 1-1                                   AN ACT
 1-2     relating to facilitating and supporting cooperative efforts of
 1-3     municipalities and counties to promote economic development by
 1-4     hosting the Pan American Games and the Olympic Games.
 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 qualified
1-12     applicant.
1-13                 (3)  "Games" means the Games of the XXX Olympiad or the
1-14     Pan American Games in 2007.
1-15                 (4)  "Games support contract" means a contract executed
1-16     by the department and a qualified applicant containing terms
1-17     permitted or required by this Act.
1-18                 (5)  "Participating municipality or county" means a
1-19     municipality or county, including an endorsing municipality, that
1-20     has entered into an agreement with a qualified applicant to
1-21     provide, either directly, through a nonprofit corporation created
1-22     under Section 4B, Development Corporation Act of 1979  (Article
1-23     5190.6, Vernon's Texas Civil Statutes), or through a sports and
1-24     community venue district created under Chapter 335, Local
 2-1     Government Code, sports venues or facilities that may be used in
 2-2     the presentation of any portion of the games.
 2-3                 (6)  "Qualified applicant" means a nonprofit
 2-4     corporation that:
 2-5                       (A)  has been authorized by an endorsing
 2-6     municipality to pursue an application and bid on the applicant's
 2-7     behalf to the International Olympic Committee for selection as the
 2-8     site of the Games of the XXX Olympiad or to the Pan American Sports
 2-9     Organization for selection as the site of the 2007 Pan American
2-10     Games; and
2-11                       (B)  has executed:
2-12                             (i)  a bid committee agreement with the
2-13     United States Olympic Committee; or
2-14                             (ii)  an agreement with the Pan American
2-15     Sports Organization regarding a bid to host the Pan American Games.
2-16                 (7)  "Regional games support authority" means  an
2-17     authority created under Section 6 of this Act.
2-18                 (8)  "Site selection application costs" are costs or
2-19     expenses incurred by a qualified applicant for the preparation of
2-20     the application submitted to the applicable site selection
2-21     organization.  The term includes professional services costs for
2-22     which the qualified applicant may seek reimbursement under the
2-23     games support contract, including costs incurred for:
2-24                       (A)  engineering or architectural planning,
2-25     studies, reports, or designs relating to venue sites for the games;
2-26                       (B)  environmental impact analyses;
2-27                       (C)  analyses of transportation needs and
 3-1     requirements for the games;
 3-2                       (D)  legal and accounting services; and
 3-3                       (E)  other professional service requirements
 3-4     related to the games.
 3-5                 (9)  "Site selection date" means the date on which:
 3-6                       (A)  the International Olympic Committee
 3-7     designates the site for the Games of the XXX Olympiad; or
 3-8                       (B)  the Pan American Sports Organization
 3-9     designates  the site for the 2007 Pan American Games.
3-10                 (10)  "Site selection organization" means the
3-11     International Olympic Committee or the Pan American Sports
3-12     Organization.
3-13           SECTION 2.  PURPOSE.  The purpose of this Act is:
3-14                 (1)  to provide a method of limited financial support
3-15     that the state, on a neutral basis, may provide to municipalities
3-16     and other persons to assist in the preparation and submission of
3-17     applications to the Pan American Sports Organization for
3-18     designation of a site in this state as the site of the 2007 Pan
3-19     American Games or to the International Olympic Committee for
3-20     designation of a site in this state as the site of the Games of the
3-21     XXX Olympiad in 2012; and
3-22                 (2)  if a location in the state is designated as the
3-23     site for the 2007 Pan American Games or the Games of the XXX
3-24     Olympiad, to provide financial support to the municipalities and
3-25     other persons and to provide assurances to the site selection
3-26     organization sponsoring the games that commitments made by the
3-27     state through the department in a games support contract will be
 4-1     fulfilled.
 4-2           SECTION 3.  LEGISLATIVE FINDINGS.  The conduct in this state
 4-3     of the 2007 Pan American Games or the conduct of the Games of the
 4-4     XXX Olympiad in 2012 will:
 4-5                 (1)  provide invaluable public visibility throughout
 4-6     the world for this state and the communities where the games are
 4-7     held; and
 4-8                 (2)  encourage and provide major economic benefits to
 4-9     the communities where the games are held and to the entire state.
4-10           SECTION 4.  OLYMPICS AND PAN AMERICAN GAMES SUPPORT FUND.
4-11     (a)  If a site selection organization selects a site for the Games
4-12     of the XXX Olympiad or the 2007 Pan American Games in this state
4-13     pursuant to an application by a qualified applicant, beginning on
4-14     the first day of the first state fiscal year that begins after the
4-15     site selection date, the comptroller shall determine for each
4-16     calendar month, in accordance with procedures developed by the
4-17     comptroller, the incremental increase in the state sales and use
4-18     tax receipts under Chapter 151, Tax Code, within the market area of
4-19     the qualified applicant whose site application has been accepted by
4-20     the applicable site selection organization that is  reasonably
4-21     attributable to the successful application and preparation for and
4-22     the presentation of the applicable games and related events.
4-23           (b)  The comptroller shall deposit the amount determined
4-24     under Subsection (a) of this section into a special account of the
4-25     department's treasury account called the Olympics and Pan American
4-26     Games support fund.  The comptroller shall discontinue deposit of
4-27     the amount determined under Subsection (a) of this section at the
 5-1     end of the third calendar month following the month in which the
 5-2     closing event of the games occurs.
 5-3           (c)  The qualified applicant shall propose the geographic
 5-4     boundaries of the market area to be used under Subsection (a) of
 5-5     this section.  The department shall approve the proposed market
 5-6     area if it includes areas that are likely to be affected by the
 5-7     conduct of the games the applicant is seeking, including any areas
 5-8     that are likely to  provide venues, accommodations, and services in
 5-9     connection with the games, based on the proposal submitted by the
5-10     applicant under Section 5 of this Act.
5-11           (d)  The department may use the funds in the Olympics and Pan
5-12     American Games support fund to fulfill the state's obligations to a
5-13     site selection organization under a games support contract or any
5-14     other agreement providing assurances from the department to a site
5-15     selection organization.
5-16           SECTION 5.  ASSISTANCE OF DEPARTMENT AND OTHER STATE
5-17     AGENCIES.  (a)  The department shall review requests from a
5-18     qualified applicant that the department enter into a games support
5-19     contract with the applicant.
5-20           (b)  A request made under Subsection (a) of this section must
5-21     be accompanied by:
5-22                 (1)  a general description and summary of the games for
5-23     which a site selection is sought by the qualified applicant;
5-24                 (2)  a preliminary and general description of the
5-25     proposal the applicant intends to submit to a site selection
5-26     organization;
5-27                 (3)  the estimated cost of preparing and submitting the
 6-1     intended proposal;
 6-2                 (4)  the applicant's intended method of obtaining the
 6-3     funds needed for the purpose of preparing the proposal; and
 6-4                 (5)  a description by type and approximate amount of
 6-5     the site selection application costs for which the qualified
 6-6     applicant intends to seek payment or reimbursement from the state
 6-7     under a games support contract.
 6-8           (c)  The department shall approve or deny a request made
 6-9     under Subsection (a)  of this section not later than the 30th day
6-10     after the date the request is submitted.
6-11           (d)  The department shall approve a request and shall enter
6-12     into a games support contract with a qualified applicant if the
6-13     department determines that:
6-14                 (1)  the applicant's proposal is reasonable and, if
6-15     completed and submitted, would substantially meet the criteria for
6-16     proposals established by the applicable site selection
6-17     organization; and
6-18                 (2)  the method of obtaining funds to cover the costs
6-19     of preparing the proposal is commercially reasonable and is likely
6-20     to be successful.
6-21           (e)  The department may agree in a games support contract to:
6-22                 (1)  pay from funds appropriated for that purpose,
6-23     during the period before the applicable site selection date, a
6-24     specified portion of the site selection application costs; and
6-25                 (2)  provide to the applicable site selection
6-26     organization written assurances on behalf of the state and the
6-27     qualified applicant that, if the applicant's proposal is accepted
 7-1     and the site identified in the proposal is selected, and if
 7-2     necessary in addition to funds provided by the qualified applicant,
 7-3     sufficient funds will be provided by the state from money on
 7-4     deposit in the Olympics and Pan American Games support fund to pay
 7-5     the costs of presenting the games in accordance with the qualified
 7-6     applicant's  proposal.
 7-7           (f)  Each games support contract shall require a qualified
 7-8     applicant to repay the state any funds expended by the department
 7-9     under this Act from any surplus of the qualified applicant's funds
7-10     remaining after the presentation of the games and after the payment
7-11     of the expenses and obligations incurred by a qualified applicant.
7-12     If the games are not awarded to a qualified applicant, the
7-13     qualified applicant is not required to repay any state money
7-14     expended by the department under this Act before the site selection
7-15     date.
7-16           (g)  A games support contract may contain any additional
7-17     provisions the department requires in order to carry out the
7-18     purposes of this Act.
7-19           (h)  The Texas Department of Transportation, the Texas
7-20     Department of Public Safety, and the Texas Department of Housing
7-21     and Community Affairs may:
7-22                 (1)  assist a qualified applicant in developing
7-23     applications and planning for the games; and
7-24                 (2)  enter into contracts, agreements, or assurances
7-25     related to the presentation of the games.
7-26           SECTION 6.  REGIONAL GAMES SUPPORT AUTHORITY.  (a)  A
7-27     regional games support authority may be created by a resolution
 8-1     concurrently adopted by an endorsing municipality and one or more
 8-2     counties.  A regional games support authority is a political
 8-3     subdivision and a governmental instrumentality of the state.
 8-4           (b)  The territory of a regional games support authority is
 8-5     the same as the territory of the county or counties that
 8-6     participate in the creation of the authority.
 8-7           (c)  A resolution creating a regional games support authority
 8-8     must provide for the administration, operation, and governance of
 8-9     the authority.  A participating municipality or county may be
8-10     granted representation on the board of directors of the authority
8-11     in the resolution creating the authority.
8-12           SECTION 7.  POWERS OF PARTICIPATING MUNICIPALITY OR COUNTY
8-13     AND REGIONAL GAMES SUPPORT AUTHORITY.                  (a)  A
8-14     participating municipality or county and a regional games support
8-15     authority have all powers necessary and appropriate to construct,
8-16     improve, expand, and acquire any and all sports venues that are
8-17     found to be useful in the presentation of the games, together with
8-18     any and all public infrastructure, housing, and other facilities
8-19     that are incident to or useful in connection with the presentation
8-20     of the games, including the power to enter into a contract or
8-21     agreement with a qualified applicant.
8-22           (b)  A participating municipality or county, regional games
8-23     support authority, and any other political subdivision or local
8-24     governmental entity may enter into an interlocal contract with
8-25     another public entity or into any other agreement with a private or
8-26     public party, including a qualified applicant, regarding the use,
8-27     financing, and improvement of sports venues, housing, and other
 9-1     public infrastructure that may be useful in the presentation of the
 9-2     games, including the method of allocating and sharing revenues and
 9-3     income resulting from the presentation of the games or associated
 9-4     events.
 9-5           (c)  To the extent authorized by a qualified applicant, a
 9-6     participating municipality or county or regional games support
 9-7     authority may design, obtain, and register sale and use trademarks,
 9-8     copyrights, and other intellectual property rights relating to the
 9-9     games and may sell, market, advertise, or license the intellectual
9-10     property rights, including the direct manufacture and sale of
9-11     products by a participating municipality or county or a regional
9-12     games support authority.
9-13           (d)  A participating municipality or county or a regional
9-14     games support authority may enter into a contract, sue and be sued,
9-15     and condemn property and land in connection with the games.
9-16           SECTION 8.  BONDS.  (a)  A participating municipality or
9-17     county or a regional games support authority may issue bonds,
9-18     notes, and other securities determined appropriate to:
9-19                 (1)  construct new venues for the games;
9-20                 (2)  repair, expand, or improve existing sports venues
9-21     for use as venues for the games; or
9-22                 (3)  provide other facilities and public infrastructure
9-23     appropriate for the conduct of the games, including housing
9-24     facilities.
9-25           (b)  The issuer of obligations authorized under Subsection
9-26     (a) of this section may pledge to the payment of those obligations:
9-27                 (1)  revenues to be received by the issuer under an
 10-1    agreement with a qualified applicant;
 10-2                (2)  revenues, taxes, and other sources of income
 10-3    authorized by any other law, subject to any election requirements
 10-4    imposed by that law; and
 10-5                (3)  revenues expressly permitted by this Act.
 10-6          (c)  A bond, note, or other security issued under this
 10-7    section may be issued in the same manner as a participating
 10-8    municipality or county or regional games support authority may
 10-9    issue any other type of bond, note, or other security.
10-10          SECTION 9.  IMPOSITION OF GAMES SURCHARGE.  (a)  Beginning on
10-11    the first day of the third calendar month before the calendar month
10-12    in which the games begin and ending on the fifth day following the
10-13    closing event of the games, a regional games support authority may
10-14    adopt and impose, in addition to any sales and use taxes that may
10-15    be levied by a local governmental unit under laws in effect during
10-16    that period, a temporary surcharge equal to one percent of the
10-17    retail price of all goods, merchandise, and admission tickets sold
10-18    or distributed at, or on any charges collected for the use of, a
10-19    venue for the games certified by the comptroller as necessary for
10-20    the conduct of the games.
10-21          (b)  Revenues derived from the surcharge under this section
10-22    shall be allocated on a fair and equitable basis among the
10-23    participating municipalities and counties and a regional games
10-24    support authority in accordance with an interlocal agreement
10-25    entered into by the participating municipalities and counties and
10-26    the regional games support authority.
10-27          SECTION 10.  GOVERNMENTAL FUNCTIONS.  An action taken or an
 11-1    activity conducted under this Act by a qualified applicant, the
 11-2    department or other state agency, a participating municipality or
 11-3    county, or a regional games support authority is declared to be an
 11-4    essential governmental function and is not a proprietary function
 11-5    for the purposes of the laws of this state.
 11-6          SECTION 11.  EMERGENCY.  The importance of this legislation
 11-7    and the crowded condition of the calendars in both houses create an
 11-8    emergency and an imperative public necessity that the
 11-9    constitutional rule requiring bills to be read on three several
11-10    days in each house be suspended, and this rule is hereby suspended,
11-11    and that this Act take effect and be in force from and after its
11-12    passage, and it is so enacted.