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.