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.