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.