By Madla S.B. No. 1646
76R8245 AJA-D
A BILL TO BE ENTITLED
1-1 AN ACT
1-2 relating to state funding and agreements supporting the bids of
1-3 certain municipalities or counties to host the 2007 Pan American
1-4 Games; providing a penalty.
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 for selection of the municipality as the site of the 2007
1-13 Pan American Games.
1-14 (3) "Games" means the 2007 Pan American Games.
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 Pan American Sports Organization for selection as the
2-8 site of the 2007 Pan American Games; and
2-9 (B) has executed:
2-10 (i) a bid committee agreement with the
2-11 United States Olympic Committee; or
2-12 (ii) an agreement with the Pan American
2-13 Sports Organization regarding a bid to host the Pan American Games.
2-14 (7) "Regional games support authority" means an
2-15 authority created under Section 6 of this Act.
2-16 (8) "Site selection application costs" are costs or
2-17 expenses incurred by a qualified applicant for the preparation of
2-18 the application submitted to the applicable site selection
2-19 organization. The term includes professional services costs for
2-20 which the qualified applicant may seek reimbursement under the
2-21 games support contract, including costs incurred for:
2-22 (A) engineering or architectural planning,
2-23 studies, reports, or designs relating to venue sites for the games;
2-24 (B) environmental impact analyses;
2-25 (C) analyses of transportation needs and
2-26 requirements for the games;
2-27 (D) legal and accounting services; and
3-1 (E) other professional service requirements
3-2 related to the games.
3-3 (9) "Site selection date" means the date on which the
3-4 Pan American Sports Organization designates the site for the 2007
3-5 Pan American Games.
3-6 (10) "Site selection organization" means the Pan
3-7 American Sports Organization.
3-8 SECTION 2. PURPOSE. The purpose of this Act is:
3-9 (1) to provide a method of limited financial support
3-10 that the state, on a neutral basis, may provide to municipalities
3-11 and other persons to assist in the preparation and submission of
3-12 applications to the Pan American Sports Organization for
3-13 designation of a site in this state as the site of the 2007 Pan
3-14 American Games; and
3-15 (2) if a location in the state is designated as the
3-16 site for the 2007 Pan American Games, to provide financial support
3-17 to the designated municipality and other persons and to provide
3-18 assurances to the site selection organization sponsoring the games
3-19 that commitments made by the state through the department in a
3-20 games support contract will be fulfilled.
3-21 SECTION 3. LEGISLATIVE FINDINGS. The conduct in this state
3-22 of the 2007 Pan American Games will:
3-23 (1) provide invaluable public visibility throughout
3-24 the world for this state and the communities where the games are
3-25 held; and
3-26 (2) encourage and provide major economic benefits to
3-27 the communities where the games are held and to the entire state.
4-1 SECTION 4. PAN AMERICAN GAMES SUPPORT FUND. (a) If a site
4-2 selection organization selects a site for the 2007 Pan American
4-3 Games in this state pursuant to an application by a qualified
4-4 applicant, beginning on the first day of the first state fiscal
4-5 year that begins after the site selection date, the comptroller
4-6 shall determine for each calendar month, in accordance with
4-7 procedures developed by the comptroller, the incremental increase
4-8 in the state sales and use tax receipts under Chapter 151, Tax
4-9 Code, within the market area of the qualified applicant whose site
4-10 application has been accepted by the applicable site selection
4-11 organization that is reasonably attributable to the successful
4-12 application and preparation for and the presentation of the
4-13 applicable games and related events.
4-14 (b) The comptroller shall deposit the amount determined
4-15 under Subsection (a) of this section into a special account of the
4-16 department's treasury account called the Pan American Games support
4-17 fund. The comptroller shall discontinue deposit of the amount
4-18 determined under Subsection (a) of this section at the end of the
4-19 third calendar month following the month in which the closing event
4-20 of the games occurs.
4-21 (c) The qualified applicant shall propose the geographic
4-22 boundaries of the market area to be used under Subsection (a) of
4-23 this section. The department shall approve the proposed market
4-24 area if it includes areas that are likely to be affected by the
4-25 conduct of the games the applicant is seeking, including any areas
4-26 that are likely to provide venues, accommodations, and services in
4-27 connection with the games, based on the proposal submitted by the
5-1 applicant under Section 5 of this Act.
5-2 (d) The department may use the funds in the Pan American
5-3 Games support fund to fulfill the state's obligations to a site
5-4 selection organization under a games support contract or any other
5-5 agreement providing assurances from the department to a site
5-6 selection organization.
5-7 SECTION 5. ASSISTANCE OF DEPARTMENT AND OTHER STATE
5-8 AGENCIES. (a) The department shall review requests from a
5-9 qualified applicant that the department enter into a games support
5-10 contract with the applicant.
5-11 (b) A request made under Subsection (a) of this section must
5-12 be accompanied by:
5-13 (1) a general description and summary of the games for
5-14 which a site selection is sought by the qualified applicant;
5-15 (2) a preliminary and general description of the
5-16 proposal the applicant intends to submit to a site selection
5-17 organization;
5-18 (3) the estimated cost of preparing and submitting the
5-19 intended proposal;
5-20 (4) the applicant's intended method of obtaining the
5-21 funds needed for the purpose of preparing the proposal; and
5-22 (5) a description by type and approximate amount of
5-23 the site selection application costs for which the qualified
5-24 applicant intends to seek payment or reimbursement from the state
5-25 under a games support contract.
5-26 (c) The department shall approve or deny a request made
5-27 under Subsection (a) of this section not later than the 30th day
6-1 after the date the request is submitted.
6-2 (d) The department shall approve a request and shall enter
6-3 into a games support contract with a qualified applicant if the
6-4 department determines that:
6-5 (1) the applicant's proposal is reasonable and, if
6-6 completed and submitted, would substantially meet the criteria for
6-7 proposals established by the applicable site selection
6-8 organization; and
6-9 (2) the method of obtaining funds to cover the costs
6-10 of preparing the proposal is commercially reasonable and is likely
6-11 to be successful.
6-12 (e) The department may agree in a games support contract to:
6-13 (1) pay from funds appropriated for that purpose,
6-14 during the period before the applicable site selection date, a
6-15 specified portion of the site selection application costs; and
6-16 (2) provide to the applicable site selection
6-17 organization written assurances on behalf of the state and the
6-18 qualified applicant that, if the applicant's proposal is accepted
6-19 and the site identified in the proposal is selected, and if
6-20 necessary in addition to funds provided by the qualified applicant,
6-21 sufficient funds will be provided by the state from money on
6-22 deposit in the Pan American Games support fund to pay the costs of
6-23 presenting the games in accordance with the qualified applicant's
6-24 proposal.
6-25 (f) Each games support contract shall require a qualified
6-26 applicant to repay the state any funds expended by the department
6-27 under this Act from any surplus of the qualified applicant's funds
7-1 remaining after the presentation of the games and after the payment
7-2 of the expenses and obligations incurred by a qualified applicant.
7-3 If the games are not awarded to a qualified applicant, the
7-4 qualified applicant is not required to repay any state money
7-5 expended by the department under this Act before the site selection
7-6 date.
7-7 (g) A games support contract may contain any additional
7-8 provisions the department requires in order to carry out the
7-9 purposes of this Act.
7-10 (h) The Texas Department of Transportation, the Texas
7-11 Department of Public Safety, and the Texas Department of Housing
7-12 and Community Affairs may:
7-13 (1) assist a qualified applicant in developing
7-14 applications and planning for the games; and
7-15 (2) enter into contracts, agreements, or assurances
7-16 related to the presentation of the games.
7-17 SECTION 6. REGIONAL GAMES SUPPORT AUTHORITY. (a) A
7-18 regional games support authority may be created by a resolution
7-19 concurrently adopted by an endorsing municipality and one or more
7-20 counties. A regional games support authority is a political
7-21 subdivision and a governmental instrumentality of the state.
7-22 (b) The territory of a regional games support authority is
7-23 the same as the territory of the county or counties that
7-24 participate in the creation of the authority.
7-25 (c) A resolution creating a regional games support authority
7-26 must provide for the administration, operation, and governance of
7-27 the authority. A participating municipality or county may be
8-1 granted representation on the board of directors of the authority
8-2 in the resolution creating the authority.
8-3 SECTION 7. POWERS OF PARTICIPATING MUNICIPALITY OR COUNTY
8-4 AND REGIONAL GAMES SUPPORT AUTHORITY. (a) A participating
8-5 municipality or county and a regional games support authority have
8-6 all powers necessary and appropriate to construct, improve, expand,
8-7 and acquire any and all sports venues that are found to be useful
8-8 in the presentation of the games, together with any and all public
8-9 infrastructure, housing, and other facilities that are incident to
8-10 or useful in connection with the presentation of the games,
8-11 including the power to enter into a contract or agreement with a
8-12 qualified applicant.
8-13 (b) A participating municipality or county, regional games
8-14 support authority, and any other political subdivision or local
8-15 governmental entity may enter into an interlocal contract with
8-16 another public entity or into any other agreement with a private or
8-17 public party, including a qualified applicant, regarding the use,
8-18 financing, and improvement of sports venues, housing, and other
8-19 public infrastructure that may be useful in the presentation of the
8-20 games, including the method of allocating and sharing revenues and
8-21 income resulting from the presentation of the games or associated
8-22 events.
8-23 (c) To the extent authorized by a qualified applicant, a
8-24 participating municipality or county or regional games support
8-25 authority may design, obtain, and register sale and use trademarks,
8-26 copyrights, and other intellectual property rights relating to the
8-27 games and may sell, market, advertise, or license the intellectual
9-1 property rights, including the direct manufacture and sale of
9-2 products by a participating municipality or county or a regional
9-3 games support authority.
9-4 (d) A participating municipality or county or a regional
9-5 games support authority may enter into a contract, sue and be sued,
9-6 and condemn property and land in connection with the games.
9-7 SECTION 8. BONDS. (a) A participating municipality or
9-8 county may issue bonds, notes, and other securities determined
9-9 appropriate to:
9-10 (1) construct new venues for the games;
9-11 (2) repair, expand, or improve existing sports venues
9-12 for use as venues for the games; or
9-13 (3) provide other facilities and public infrastructure
9-14 appropriate for the conduct of the games, including housing
9-15 facilities.
9-16 (b) The issuer of obligations authorized under Subsection
9-17 (a) of this section may pledge to the payment of those obligations:
9-18 (1) revenues to be received by the issuer under an
9-19 agreement with a qualified applicant; and
9-20 (2) revenues, taxes, and other sources of income
9-21 authorized by any other law, subject to any election requirements
9-22 imposed by that law.
9-23 (c) A bond, note, or other security issued under this
9-24 section may be issued in the same manner as a participating
9-25 municipality or county may issue any other type of bond, note, or
9-26 other security.
9-27 (d) An obligation issued under Subsection (a) of this
10-1 section may be conditioned on payment of the first proceeds to an
10-2 issuer under an agreement with a qualified applicant.
10-3 (e) An obligation issued under Subsection (a) of this
10-4 section shall be paid before any other obligation incurred by the
10-5 issuer of that obligation under this Act.
10-6 SECTION 9. APPLICATION OF ETHICS RULES. (a) Each endorsing
10-7 municipality, participating municipality or county, qualified
10-8 applicant, and regional games support authority shall adopt a set
10-9 of ethical regulations for the operation of that endorsing
10-10 municipality, participating municipality or county, qualified
10-11 applicant, or regional games support authority and its officers and
10-12 employees in connection with the bid of an endorsing municipality
10-13 for selection as the site of the 2007 Pan American Games, the
10-14 conduct of the 2007 Pan American Games, or any other action taken
10-15 or activity conducted under this Act.
10-16 (b) Regulations adopted under this section must be at least
10-17 as stringent as the more stringent of:
10-18 (1) the ethics regulations of the United States
10-19 Olympic Committee or the Pan American Sports Organization; or
10-20 (2) the ethics laws of this state relating to the
10-21 spending restriction on lobbyists and prohibited activities of
10-22 state employees, including Chapters 305 and 572, Government Code.
10-23 (c) Each endorsing municipality, participating municipality
10-24 or county, qualified applicant, and regional games support
10-25 authority shall report to the Texas Ethics Commission quarterly on
10-26 the compliance of that endorsing municipality, participating
10-27 municipality or county, qualified applicant, or regional games
11-1 support authority and its officers and employees with the ethical
11-2 regulations adopted under Subsection (a) of this section. The Texas
11-3 Ethics Commission shall adopt rules relating to the manner of
11-4 reporting.
11-5 (d) A person commits an offense if the person fails to
11-6 comply with any ethical regulation adopted under Subsection (a) of
11-7 this section or fails to comply with any Texas Ethics Commission
11-8 rule adopted under this section. An offense under this subsection
11-9 is a Class A misdemeanor.
11-10 SECTION 10. EMERGENCY. The importance of this legislation
11-11 and the crowded condition of the calendars in both houses create an
11-12 emergency and an imperative public necessity that the
11-13 constitutional rule requiring bills to be read on three several
11-14 days in each house be suspended, and this rule is hereby suspended,
11-15 and that this Act take effect and be in force from and after its
11-16 passage, and it is so enacted.