By Wilson H.B. No. 2485 77R6367 JSA-F A BILL TO BE ENTITLED 1-1 AN ACT 1-2 relating to contracts relating to entertainment facilities of 1-3 certain institutions of higher education. 1-4 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: 1-5 SECTION 1. Subchapter C, Chapter 65, Education Code, is 1-6 amended by adding Section 65.345 to read as follows: 1-7 Sec. 65.345. CONTRACTS RELATING TO ENTERTAINMENT FACILITIES. 1-8 (a) In this section, "entertainment facility" means a building or 1-9 other facility, including a stadium, athletic facility, coliseum, 1-10 theater, arena, or performing arts center, that is used to present 1-11 athletic or sporting contests or events, rodeos, fairs, circuses, 1-12 concerts, plays, operas, or other performing arts presentations or 1-13 entertainment displays that are open to the public with or without 1-14 an admission charge. 1-15 (b) The board shall adopt rules prohibiting a contractor, 1-16 management company, or consultant from paying or offering to pay a 1-17 fee or guaranteed payment to a component institution of the system 1-18 based in any part on a percentage of alcoholic beverage sales 1-19 proceeds at a system-owned entertainment facility. 1-20 (c) The board shall adopt rules prohibiting a contractor, 1-21 management company, or consultant from paying or offering to pay 1-22 for capital improvements to a system-owned entertainment facility. 1-23 (d) The board shall adopt rules prohibiting a contractor, 1-24 management company, or consultant from paying or offering to pay 2-1 any guaranteed or prepaid amount, other than rent for a period not 2-2 to exceeed one year, to the system or component institution of the 2-3 system for operating or managing a system-owned entertainment 2-4 facility. 2-5 (e) If a contract for the operation of a system-owned 2-6 entertainment facility is to be awarded based on competitive sealed 2-7 bids, the board shall by rule require that the contract award be 2-8 made to the lowest responsible bidder and that preference be given 2-9 to local and minority-owned bidders. 2-10 SECTION 2. This Act does not affect a contract entered into 2-11 before the effective date of this Act, except that this Act applies 2-12 to an extension or renewal of such a contract to the extent 2-13 permitted by law. 2-14 SECTION 3. This Act takes effect immediately if it receives 2-15 a vote of two-thirds of all the members elected to each house, as 2-16 provided by Section 39, Article III, Texas Constitution. If this 2-17 Act does not receive the vote necessary for immediate effect, this 2-18 Act takes effect September 1, 2001.