1-1     By:  Madla, Luna, Wentworth                            S.B. No. 456
 1-2           (In the Senate - Filed February 10, 1999; February 15, 1999,
 1-3     read first time and referred to Committee on Economic Development;
 1-4     March 25, 1999, reported adversely, with favorable Committee
 1-5     Substitute by the following vote:  Yeas 4, Nays 0; March 25, 1999,
 1-6     sent to printer.)
 1-7     COMMITTEE SUBSTITUTE FOR S.B. No. 456                    By:  Madla
 1-8                            A BILL TO BE ENTITLED
 1-9                                   AN ACT
1-10     relating to facilitating and supporting efforts of certain
1-11     municipalities to promote economic development by hosting the Pan
1-12     American Games and the Olympic Games.
1-13           BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
1-14           SECTION 1.  DEFINITIONS.  In this Act:
1-15                 (1)  "Department" means the Texas Department of
1-16     Economic Development.
1-17                 (2)  "Endorsing municipality" means a municipality that
1-18     has a population of 850,000 or more according to the most recent
1-19     federal decennial census and that authorizes a bid by a qualified
1-20     applicant for selection of the municipality as the site of the
1-21     Games of the XXX Olympiad or the 2007 Pan American Games.
1-22                 (3)  "Games" means the Games of the XXX Olympiad or the
1-23     2007 Pan American Games.
1-24                 (4)  "Games support contract" means a contract executed
1-25     by the department and a qualified applicant containing terms
1-26     permitted or required by this Act.
1-27                 (5)  "Qualified applicant" means a nonprofit
1-28     corporation that:
1-29                       (A)  has been authorized by an endorsing
1-30     municipality to pursue an application and bid on the applicant's
1-31     behalf to the International Olympic Committee for selection as the
1-32     site of the Games of the XXX Olympiad or to the Pan American Sports
1-33     Organization for selection as the site of the 2007 Pan American
1-34     Games; and
1-35                       (B)  has executed:
1-36                             (i)  a bid committee agreement with the
1-37     United States Olympic Committee; or
1-38                             (ii)  an agreement with the Pan American
1-39     Sports Organization regarding a bid to host the Pan American Games.
1-40                 (6)  "Site selection date" means the date on which:
1-41                       (A)  the International Olympic Committee
1-42     designates the site for the Games of the XXX Olympiad; or
1-43                       (B)  the Pan American Sports Organization
1-44     designates the site for the 2007 Pan American Games.
1-45                 (7)  "Site selection organization" means the
1-46     International Olympic Committee or the Pan American Sports
1-47     Organization.
1-48           SECTION 2.  PURPOSE.  The purpose of this Act is, if a
1-49     location in the state is designated as the site for the 2007 Pan
1-50     American Games or the Games of the XXX Olympiad, to provide
1-51     financial support to the municipalities and to provide assurances
1-52     to the site selection organization sponsoring the games that
1-53     commitments made by the state through the department in a games
1-54     support contract will be fulfilled.
1-55           SECTION 3.  LEGISLATIVE FINDINGS.  The conduct in this state
1-56     of the 2007 Pan American Games or the conduct of the Games of the
1-57     XXX Olympiad in 2012 will:
1-58                 (1)  provide invaluable public visibility throughout
1-59     the world for this state and the communities where the games are
1-60     held; and
1-61                 (2)  encourage and provide major economic benefits to
1-62     the communities where the games are held and to the entire state.
1-63           SECTION 4.  OLYMPICS AND PAN AMERICAN GAMES SUPPORT FUND.
1-64     (a)  If a site selection organization selects a site for the Games
 2-1     of the XXX Olympiad or the 2007 Pan American Games in this state
 2-2     pursuant to an application by a qualified applicant, beginning on
 2-3     the first day of the first state fiscal year that begins after the
 2-4     site selection date, the comptroller shall determine quarterly, in
 2-5     accordance with procedures developed by the comptroller, the
 2-6     incremental increase in the state sales and use tax receipts under
 2-7     Chapter 151, Tax Code, within the market area of the qualified
 2-8     applicant whose site application has been accepted by the
 2-9     applicable site selection organization that is reasonably
2-10     attributable to the successful application and preparation for and
2-11     the presentation of the applicable games and related events.
2-12           (b)  The comptroller shall deposit the amount determined
2-13     under Subsection (a)  of this section into a special account of the
2-14     department's treasury account called the Olympics and Pan American
2-15     Games support fund.  The comptroller shall discontinue deposit of
2-16     the amount determined under Subsection (a) of this section at the
2-17     end of the third calendar month following the month in which the
2-18     closing event of the games occurs.
2-19           (c)  The qualified applicant shall propose the geographic
2-20     boundaries of the market area to be used under Subsection (a) of
2-21     this section.  The department shall approve the proposed market
2-22     area if it includes areas that are likely to be affected by the
2-23     conduct of the games the applicant is seeking, including any areas
2-24     that are likely to provide venues, accommodations, and services in
2-25     connection with the games, based on the proposal submitted by the
2-26     applicant under Section 5 of this Act.
2-27           (d)  The department in its sole discretion may use the money
2-28     in the Olympics and Pan American Games support fund to fulfill the
2-29     state's obligations to a site selection organization under a games
2-30     support contract or any other agreement providing assurances from
2-31     the department to a site selection organization. Money in the fund
2-32     may not be spent except as directed by the department.
2-33           (e)  State funds other than those funds in the Olympics and
2-34     Pan American Games support fund may not be used for the purposes of
2-35     this Act.
2-36           SECTION 5.  ASSISTANCE OF DEPARTMENT.  (a)  The department
2-37     shall review requests from a qualified applicant that the
2-38     department enter into a games support contract with the applicant.
2-39           (b)  A request made under Subsection (a) of this section must
2-40     be accompanied by:
2-41                 (1)  a general description and summary of the games for
2-42     which a site selection is sought by the qualified applicant; and
2-43                 (2)  a preliminary and general description of the
2-44     proposal the applicant intends to submit to a site selection
2-45     organization.
2-46           (c)  The department shall approve or deny a request made
2-47     under Subsection (a) of this section not later than the 30th day
2-48     after the date the request is submitted.
2-49           (d)  The department shall approve a request and shall enter
2-50     into a games support contract with a qualified applicant if the
2-51     department determines that:
2-52                 (1)  the applicant's proposal is reasonable and, if
2-53     completed and submitted, would substantially meet the criteria for
2-54     proposals established by the applicable site selection
2-55     organization; and
2-56                 (2)  the method of obtaining funds to cover the costs
2-57     of preparing the proposal is commercially reasonable and is likely
2-58     to be successful.
2-59           (e)  The department may agree in a games support contract to
2-60     provide to the applicable site selection organization written
2-61     assurances on behalf of the state and the qualified applicant that,
2-62     if the applicant's proposal is accepted and the site identified in
2-63     the proposal is selected, and if necessary in addition to funds
2-64     provided by the qualified applicant, funds will be provided by the
2-65     state solely from money on deposit in the Olympics and Pan American
2-66     Games support fund, and from no other source of public funds, to
2-67     pay the costs of presenting the games in accordance with the
2-68     qualified applicant's proposal.
2-69           (f)  Each games support contract shall require a qualified
 3-1     applicant to repay the state any funds expended by the department
 3-2     under this Act from any surplus of the qualified applicant's funds
 3-3     remaining after the presentation of the games and after the payment
 3-4     of the expenses and obligations incurred by a qualified applicant.
 3-5           (g)  A games support contract may contain any additional
 3-6     provisions the department requires in order to carry out the
 3-7     purposes of this Act.
 3-8           SECTION 6.  GOVERNMENTAL FUNCTIONS.  An action taken or an
 3-9     activity conducted under this Act by a qualified applicant or the
3-10     department is declared to be an essential governmental function and
3-11     is not a proprietary function for the purposes of the laws of this
3-12     state.
3-13           SECTION 7.  EMERGENCY.  The importance of this legislation
3-14     and the crowded condition of the calendars in both houses create an
3-15     emergency and an imperative public necessity that the
3-16     constitutional rule requiring bills to be read on three several
3-17     days in each house be suspended, and this rule is hereby suspended,
3-18     and that this Act take effect and be in force from and after its
3-19     passage, and it is so enacted.
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