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. 3-20 * * * * *