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.