Amend CSSB 275 by adding the following appropriately numbered
ARTICLE and renumbering subsequent ARTICLES of the bill
accordingly:
ARTICLE ___. SUPPORT FOR MAJOR SPORTS EVENTS
SECTION __.01. Section 1, Chapter 1507, Acts of the 76th
Legislature, Regular Session, 1999 (Article 5190.14, Vernon's
Texas Civil Statutes), is amended by amending Subdivisions (1),
(2), (3), (5), (6), (7), and (8) and adding Subdivision (1-a) to
read as follows:
(1) "Department" means the Texas Department of
Economic Development or its successor.
(1-a) "Endorsing county" means an endorsing county for
purposes of Section 5 or 5A of this Act.
(2) "Endorsing municipality" means an endorsing [a]
municipality for purposes of Section 4, 5, or 5A of this Act [that
has a population of 850,000 or more according to the most recent
federal decennial census and that authorizes a bid by a local
organizing committee for selection of the municipality as the site
of the 2007 Pan American Games or the 2012 Olympic Games].
(3) "Games" means the [2007] Pan American Games, [or]
the [2012] Olympic Games, the Super Bowl, the National Collegiate
Athletic Association Final Four, the National Basketball
Association All-Star Game, the National Hockey League All-Star
Game, the Major League Baseball All-Star Game, the National
Collegiate Athletic Association Bowl Championship Series Games,
the World Cup Soccer Games, or the World Games. The term includes
the events and activities related to the games.
(5) "Joinder agreement" means an agreement entered
into by:
(A) the department on behalf of this state and a
site selection organization setting out representations and
assurances by the state in connection with the selection of a site
in this state for the location of any of the games; or
(B) an endorsing municipality, an endorsing
county, or more than one endorsing municipality or county acting
collectively and a site selection organization setting out
representations and assurances by each [the] endorsing
municipality or county in connection with the selection of a site in
this state for the location of any of the games.
(6) "Joinder undertaking" means an agreement entered
into by:
(A) the department on behalf of this state and a
site selection organization that the state will execute a joinder
agreement in the event that the site selection organization selects
a site in this state for any of the games; or
(B) an endorsing municipality, an endorsing
county, or more than one endorsing municipality or county acting
collectively and a site selection organization that each endorsing
[the] municipality or county will execute a joinder agreement in
the event that the site selection organization selects a site in
this state for any of the games.
(7) "Local organizing committee" means a nonprofit
corporation or its successor in interest that:
(A) has been authorized by an endorsing
municipality, endorsing county, or more than one endorsing
municipality or county acting collectively to pursue an application
and bid on the applicant's behalf to a site selection organization
for selection as the site of one or more [of the] games; or
(B) with the authorization of an endorsing
municipality, endorsing county, or more that one endorsing
municipality or county acting collectively, has executed an
agreement with a site selection organization regarding a bid to
host one or more [of the] games.
(8) "Site selection organization" means the United
States Olympic Committee, the International Olympic Committee,
[or] the Pan American Sports Organization, the National Football
League, the National Collegiate Athletic Association, the National
Basketball Association, the National Hockey League, Major League
Baseball, Federation Internationale de Football Association
(FIFA), or the International World Games Association.
SECTION __.02. Sections 2 and 3, Chapter 1507, Acts of the
76th Legislature, Regular Session, 1999 (Article 5190.14, Vernon's
Texas Civil Statutes), are amended to read as follows:
Sec. 2. PURPOSE. The purpose of this Act is to provide
assurances required by a site selection organization sponsoring one
or more [the] games and to provide financing for the costs of:
(1) applying or bidding for selection as the site of
the games in this state;
(2) making the preparations necessary and desirable
for the conduct of the games in this state, including the
construction or renovation of facilities; and
(3) conducting the games in this state.
Sec. 3. LEGISLATIVE FINDINGS. The conduct in this state of
one or more games [the 2007 Pan American Games or the 2012 Olympic
Games] will:
(1) provide invaluable public visibility throughout
the nation or world for this state and the communities where the
games are held;
(2) encourage and provide major economic benefits to
the communities where the games are held and to the entire state;
and
(3) provide opportunities for the creation of jobs by
local and Texas businesses that pay a living wage.
SECTION __.03. Sections 4(a), (b), (d), (f), (i), and (l),
Chapter 1507, Acts of the 76th Legislature, Regular Session, 1999
(Article 5190.14, Vernon's Texas Civil Statutes), are amended to
read as follows:
(a) In this section:
(1) "Games" means the [2007] Pan American Games.
(2) "Site selection organization" means the United
States Olympic Committee or the Pan American Sports Organization.
(3) "Endorsing municipality" means a municipality
that has a population of 850,000 or more and that authorizes a bid
by a local organizing committee for selection of the municipality
as the site of the games.
(b) If a site selection organization selects a site for the
games in this state pursuant to an application by a local organizing
committee acting on behalf of an endorsing municipality, after the
first occurrence of a measurable economic impact in this state as a
result of the preparation for the games, as determined by the
comptroller, but in no event later than one year before the
scheduled opening event of the games, the comptroller shall
determine for each subsequent calendar quarter, in accordance with
procedures developed by the comptroller:
(1) the incremental increase in the receipts to the
state from the taxes imposed under Chapters 151, 152, 156, and 183,
Tax Code, and under Title 5, Alcoholic Beverage Code, within the
market areas designated under Subsection (c) of this section, that
is directly attributable, as determined by the comptroller, to the
preparation for and presentation of the games and related events;
(2) the incremental increase in the receipts collected
by the state on behalf of the endorsing municipality from the sales
and use tax imposed by the endorsing municipality under Section
321.101(a), Tax Code, that is directly attributable, as determined
by the comptroller, to the preparation for and presentation of the
games and related events; and
(3) the incremental increase in the receipts collected
by the endorsing municipality from the municipality's hotel
occupancy tax imposed under Chapter 351, Tax Code, that is directly
attributable, as determined by the comptroller, to the preparation
for and presentation of the games and related events.
(d) The [Subject to Section 6 of this Act, the] comptroller
shall retain, for the purpose of guaranteeing the joint obligations
of the state and the endorsing municipality under a games support
contract and this Act, the amount of municipal sales and use tax
revenue determined under Subsection (b)(2) of this section from the
amounts otherwise required to be sent to the municipality under
Section 321.502, Tax Code, beginning with the first distribution of
that tax revenue that occurs after the date the comptroller makes
the determination of the amount of municipal sales and use tax
revenue under Subsection (b)(2). The comptroller shall discontinue
retaining municipal sales and use tax revenue under this subsection
on the earlier of:
(1) the end of the third calendar month following the
month in which the closing event of the games occurs; or
(2) the date the amount of municipal sales and use tax
revenue and municipal hotel occupancy tax revenue in the Pan
American Games trust fund equals 14 percent of the maximum amount of
state and municipal tax revenue that may be deposited in the trust
fund under Subsection (m) of this section.
(f) Subject to [Section 6 of this Act and] Subsection (m) of
this section, the comptroller shall deposit into a trust fund
designated as the Pan American Games trust fund the amount of
municipal sales and use tax revenue retained under Subsection (d)
of this section and, at the same time, a portion of the state tax
revenue determined under Subsection (b)(1) of this section in an
amount equal to 6.25 times the amount of that municipal sales and
use tax revenue. Subject to [Section 6 of this Act and] Subsection
(m) of this section, the endorsing municipality shall deposit into
the trust fund the amount of the endorsing municipality's hotel
occupancy tax revenue determined under Subsection (b)(3) of this
section. The endorsing municipality shall deposit that hotel
occupancy tax revenue into the trust fund at least quarterly. When
the endorsing municipality makes a deposit of its hotel occupancy
tax revenue, the comptroller shall deposit at the same time a
portion of the state tax revenue determined under Subsection (b)(1)
of this section in an amount equal to 6.25 times the amount of that
municipal hotel occupancy tax revenue. The Pan American Games
trust fund is established outside the treasury but is held in trust
by the comptroller for the administration of this Act. Money in the
trust fund may be spent by the department without appropriation
only as provided by this Act. The comptroller shall discontinue
depositing into the trust fund any state tax revenue determined
under Subsection (b)(1) of this section on the earlier of:
(1) the end of the third calendar month following the
month in which the closing event of the games occurs; or
(2) the date on which the amount of state revenue in
the Pan American Games trust fund equals 86 percent of the maximum
amount of state and municipal tax revenue that may be deposited in
the trust fund under Subsection (m) of this section.
(i) The comptroller shall provide an estimate not later than
September 1 of the year that is eight years before the year in which
the games would be held in this state[, 1999,] of the total amount
of state and municipal tax revenue that would be deposited in the
Pan American Games trust fund before January 1 of the year following
the year in which the games would be held, [2008,] if the games were
to be held in this state at a site selected pursuant to an
application by a local organizing committee. The comptroller shall
provide the estimate on request to a local organizing committee. A
local organizing committee may submit the comptroller's estimate to
a site selection organization.
(l) On January 1 of the second year following the year in
which the games are held in this state, [2009,] the comptroller
shall transfer to the general revenue fund any money remaining in
the Pan American Games trust fund, not to exceed the amount of state
revenue remaining in the trust fund, plus any interest earned on
that state revenue. The comptroller shall remit to the endorsing
municipality any money remaining in the trust fund after the
required amount is transferred to the general revenue fund.
SECTION __.04. Sections 5(a)-(g) and (i)-(m), Chapter 1507,
Acts of the 76th Legislature, Regular Session, 1999 (Article
5190.14, Vernon's Texas Civil Statutes), are amended to read as
follows:
(a) In this section:
(1) "Games" means the [2012] Olympic Games.
(2) "Site selection organization" means the United
States Olympic Committee or the International Olympic Committee.
(3) "Endorsing county" means a county in which there
is located all or part of a municipality that has a population of
850,000 or more, or a county adjacent to such a county.
(4) "Endorsing municipality" has the meaning assigned
by Section 4 of this Act.
(b) If a site selection organization selects a site for the
games in this state pursuant to an application by a local organizing
committee, after the first occurrence of a measurable economic
impact in this state as a result of the preparation for the games,
as determined by the comptroller, but in no event later than one
year before the scheduled opening event of the games, the
comptroller shall determine for each subsequent calendar quarter,
in accordance with procedures developed by the comptroller:
(1) the incremental increase in the receipts to the
state from the taxes imposed under Chapters [Chapter] 151, 152,
156, and 183, Tax Code, and under Title 5, Alcoholic Beverage Code,
within the market areas designated under Subsection (c) of this
section, that is directly attributable, as determined by the
comptroller, to the preparation for and presentation of the games
and related events; [and]
(2) the incremental increase in the receipts collected
by the state on behalf of each [the] endorsing municipality from the
sales and use tax imposed by the endorsing municipality under
Section 321.101(a), Tax Code, and the mixed beverage tax revenue to
be received by the endorsing municipality under Section 183.051(b),
Tax Code, that is directly attributable, as determined by the
comptroller, to the preparation for and presentation of the games
and related events;
(3) the incremental increase in the receipts collected
by the state on behalf of each endorsing county from the sales and
use tax imposed by the county under Section 323.101(a), Tax Code,
and the mixed beverage tax revenue to be received by the endorsing
county under Section 183.051(b), Tax Code, that is directly
attributable, as determined by the comptroller, to the preparation
for and presentation of the games and related events;
(4) the incremental increase in the receipts collected
by each endorsing municipality from the hotel occupancy tax imposed
under Chapter 351, Tax Code, that is directly attributable, as
determined by the comptroller, to the preparation for and
presentation of the games and related events; and
(5) the incremental increase in the receipts collected
by each endorsing county from the hotel occupancy tax imposed under
Chapter 352, Tax Code, that is directly attributable, as determined
by the comptroller, to the preparation for and presentation of the
games and related events.
(c) For the purposes of Subsection (b)(1) of this section,
the comptroller shall designate as a market area for the games each
area in which the comptroller determines there is a reasonable
likelihood of measurable economic impact directly attributable to
the preparation for and presentation of the games and related
events, including areas likely to provide venues, accommodations,
and services in connection with the games based on the proposal
provided by the local organizing committee under Section 7 of this
Act. The comptroller shall determine the geographic boundaries of
each market area. Each [The] endorsing municipality or endorsing
county that has been selected as the site for the games must be
included in a market area for the games.
(d) Subject to Section 6 of this Act, the comptroller shall
retain, for the purpose of guaranteeing the joint obligations of
the state and an [the] endorsing municipality or endorsing county
under a games support contract and this Act, the amount of
[municipal] sales and use tax revenue and mixed beverage tax
revenue determined under Subsection (b)(2) or (b)(3) of this
section from the amounts otherwise required to be sent to the
municipality under Section 183.051(b) or 321.502, Tax Code, or to
the county under Section 183.051(b) or 323.502, Tax Code, beginning
with the first distribution of that tax revenue that occurs after
the date the comptroller makes the determination of the amount of
[municipal] sales and use tax revenue and mixed beverage tax
revenue under Subsection (b)(2) or (b)(3) of this section. The
comptroller shall discontinue retaining [municipal] sales and use
tax revenue and mixed beverage tax revenue under this subsection on
the earlier of:
(1) the end of the third calendar month following the
month in which the closing event of the games occurs; or
(2) the date the amount of local [municipal] sales and
use tax revenue and mixed beverage tax revenue in the Olympic Games
trust fund equals 14 percent of the maximum amount of state and
local [municipal] tax revenue that may be deposited in the trust
fund under Subsection (m) of this section.
(e) In addition to [municipal] sales and use tax revenue and
mixed beverage tax revenue retained under Subsection (d) of this
section and hotel occupancy tax revenue retained under Subsection
(f) of this section, an endorsing municipality or endorsing county
may guarantee its obligations under a games support contract and
this Act by pledging surcharges from user fees, including parking
or ticket fees, charged in connection with presentation of the
games.
(f) Subject to [Section 6 of this Act and] Subsection (m) of
this section, each endorsing municipality or endorsing county shall
remit to the comptroller and the comptroller shall deposit into a
trust fund designated as the Olympic Games trust fund, on a
quarterly basis, the amount of the municipality's or county's hotel
occupancy tax revenue determined under Subsection (b)(4) or (b)(5)
of this section, as applicable. Subject to Section 6 of this Act
and Subsection (m) of this section, the comptroller shall deposit
into the trust fund the amount of [municipal] sales and use tax
revenue and mixed beverage tax revenue retained under Subsection
(d) of this section for the same calendar quarter and, at the same
time, [a portion of] the state tax revenue determined under
Subsection (b)(1) of this section for the quarter [in an amount
equal to 6.25 times the amount of that municipal sales and use tax
revenue]. The Olympic Games trust fund is established outside the
treasury but is held in trust by the comptroller for the
administration of this Act. Money in the trust fund may be spent by
the department without appropriation only as provided by this Act.
The comptroller shall discontinue deposit of the amount of state
tax revenue determined under Subsection (b)(1) of this section on
the earlier of:
(1) the end of the third calendar month following the
month in which the closing event of the games occurs; or
(2) the date the amount of state revenue in the Olympic
Games trust fund equals 86 percent of the maximum amount of state,
[and] municipal, and county tax revenue that may be deposited in the
trust fund under Subsection (m) of this section.
(g) The department may use the funds in the Olympic Games
trust fund only to fulfill joint obligations of the state and each
[the] endorsing municipality or endorsing county to a site
selection organization under a games support contract or any other
agreement providing assurances from the department or the
[endorsing] municipality or county to a site selection
organization.
(i) The comptroller shall provide an estimate before August
31 of the year that is 12 years before the year in which the games
would be held in this state, [2000,] or as soon as practical after
that date, of the total amount of state, [and] municipal, and county
tax revenue that would be deposited in the Olympic Games trust fund
if the games were to be held in this state at a site selected
pursuant to an application by a local organizing committee. The
comptroller shall provide the estimate on request to a local
organizing committee. A local organizing committee may submit the
comptroller's estimate to a site selection organization.
(j) The department may not make a disbursement from the
Olympic Games trust fund unless the comptroller certifies that the
disbursement is for a purpose for which the state and each [the]
endorsing municipality or endorsing county are jointly obligated
under a games support contract or other agreement described by
Subsection (g) of this section. A disbursement may not be made from
the trust fund that the department determines would be used for the
purpose of soliciting the relocation of a professional sports
franchise located in this state.
(k) If the comptroller certifies under Subsection (j) of
this section that a disbursement may be made from the Olympic Games
trust fund, the obligation shall be satisfied proportionately from
the state and municipal or county revenue in the trust fund.
(l) Two years after the closing event of the games, the
comptroller shall transfer to the general revenue fund any money
remaining in the Olympic Games trust fund, not to exceed the amount
of state revenue remaining in the trust fund, plus any interest
earned on that state revenue. The comptroller shall remit to each
[the] endorsing entity in proportion to the amount contributed by
the entity [municipality] any money remaining in the trust fund
after the required amount is transferred to the general revenue
fund.
(m) In no event may:
(1) the total amount of state, [and] municipal, and
county tax revenue deposited in the Olympic Games trust fund exceed
$100 million; or
(2) the joint liability of the state and an [the]
endorsing municipality or county under a joinder agreement and any
other games support contracts entered into pursuant to this Act
exceed the lesser of:
(A) $100 million; or
(B) the total amount of revenue deposited in the
Olympic Games trust fund and interest earned on the fund.
SECTION __.05. Chapter 1507, Acts of the 76th Legislature,
Regular Session, 1999 (Article 5190.14, Vernon's Texas Civil
Statutes), is amended by adding Section 5A to read as follows:
Sec. 5A. PAYMENT OF STATE AND MUNICIPAL OR COUNTY
OBLIGATIONS; OTHER EVENTS TRUST FUND. (a) In this section:
(1) "Endorsing county" means a county that has a
population of one million or more and that contains a site selected
by a site selection organization for one or more games.
(2) "Endorsing municipality" means a municipality
that has a population of one million or more and that contains a
site selected by a site selection organization for one or more
games.
(3) "Event support contract" means a joinder
undertaking, joinder agreement, or a similar contract executed by
an endorsing municipality or endorsing county and a site selection
organization.
(4) "Game" means a Super Bowl, a National Collegiate
Athletic Association Final Four tournament game, the National
Basketball Association All-Star Game, the National Hockey League
All-Star Game, the Major League Baseball All-Star Game, a National
Collegiate Athletic Association Bowl Championship Series game, a
World Cup Soccer game, or the World Games. The term includes any
events and activities related to or associated with the games.
(5) "Site selection organization" means the National
Football League, the National Collegiate Athletic Association, the
National Basketball Association, the National Hockey League, Major
League Baseball, the Federation Internationale de Football
Association (FIFA), or the International World Games Association.
(b) If a site selection organization selects a site for a
game in this state pursuant to an application by a local organizing
committee, endorsing municipality, or endorsing county, not later
than three months before the date of the game, the comptroller shall
determine for the two-week period that ends at the end of the day
after the date on which the game will be held, in accordance with
procedures developed by the comptroller:
(1) the incremental increase in the receipts to the
state from taxes imposed under Chapters 151, 152, 156, and 183, Tax
Code, and under Title 5, Alcoholic Beverage Code, within the market
areas designated under Subsection (c) of this section, that is
directly attributable, as determined by the comptroller, to the
preparation for and presentation of the game and related events;
(2) the incremental increase in the receipts collected
by the state on behalf of each endorsing municipality in the market
area from the sales and use tax imposed by each endorsing
municipality under Section 321.101(a), Tax Code, and the mixed
beverage tax revenue to be received by each endorsing municipality
under Section 183.051(b), Tax Code, that is directly attributable,
as determined by the comptroller, to the preparation for and
presentation of the game and related events;
(3) the incremental increase in the receipts collected
by the state on behalf of each endorsing county in the market area
from the sales and use tax imposed by each endorsing county under
Section 323.101(a), Tax Code, and the mixed beverage tax revenue to
be received by each endorsing county under Section 183.051(b), Tax
Code, that is directly attributable, as determined by the
comptroller, to the preparation for and presentation of the game
and related events;
(4) the incremental increase in the receipts collected
by each endorsing municipality in the market area from the hotel
occupancy tax imposed under Chapter 351, Tax Code, that is directly
attributable, as determined by the comptroller, to the preparation
for and presentation of the game and related events; and
(5) the incremental increase in the receipts collected
by each endorsing county in the market area from the hotel occupancy
tax imposed under Chapter 352, Tax Code, that is directly
attributable, as determined by the comptroller, to the preparation
for and presentation of the game and related events.
(c) For the purposes of Subsection (b)(1) of this section,
the comptroller shall designate as a market area for the game each
area in which the comptroller determines there is a reasonable
likelihood of measurable economic impact directly attributable to
the preparation for and presentation of the game and related
events, including areas likely to provide venues, accommodations,
and services in connection with the game based on the proposal
provided by the local organizing committee to the comptroller. The
comptroller shall determine the geographic boundaries of each
market area. An endorsing municipality or endorsing county that
has been selected as the site for the game must be included in a
market area for the game.
(d) Each endorsing municipality or endorsing county shall
remit to the comptroller and the comptroller shall deposit into a
trust fund created by the comptroller and designated as the Other
Events trust fund the amount of the municipality's or county's hotel
occupancy tax revenue determined under Subsection (b)(4) or (b)(5)
of this section, less any amount of the revenue that the
municipality or county determines is necessary to meet the
obligations of the municipality or county. The comptroller shall
retain the amount of sales and use tax revenue and mixed beverage
tax revenue determined under Subsection (b)(2) or (b)(3) of this
section from the amounts otherwise required to be sent to the
municipality under Sections 321.502 and 183.051(b), Tax Code, or to
the county under Sections 323.502 and 183.051(b), Tax Code, and
deposit into the trust fund the tax revenues, less any amount of the
revenue that the municipality or county determines is necessary to
meet the obligations of the municipality or county. The
comptroller shall begin retaining and depositing the local tax
revenues with the first distribution of that tax revenue that
occurs after the first day of the two-week period described by
Subsection (b) of this section and shall discontinue retaining the
local tax revenues under this subsection when the amount of the
applicable tax revenue determined under Subsection (b)(2) or (b)(3)
of this section has been retained. The Other Events trust fund is
established outside the state treasury and is held in trust by the
comptroller for administration of this Act. Money in the trust fund
may be disbursed by the comptroller without appropriation only as
provided by this section.
(e) In addition to the tax revenue deposited in the Other
Events trust fund under Subsection (d) of this section, an
endorsing municipality or endorsing county may guarantee its
obligations under a game support contract and this section by
pledging surcharges from user fees, including parking or ticket
fees, charged in connection with the game.
(f) The comptroller shall deposit a portion of the state tax
revenue determined under Subsection (b)(1) of this section in an
amount equal to 6.25 times the amount of the local sales and use tax
revenue and mixed beverage tax revenue retained and the hotel
occupancy tax revenue remitted by an endorsing municipality or
endorsing county under Subsection (d) of this section.
(g) To meet its obligations under a game support contract or
event support contract to improve, construct, renovate, or acquire
facilities or to acquire equipment, an endorsing municipality by
ordinance or an endorsing county by order may authorize the
issuance of notes. An endorsing municipality or endorsing county
may provide that the notes be paid from and secured by amounts on
deposit or amounts to be deposited into the Other Events trust fund
or surcharges from user fees, including parking or ticket fees,
charged in connection with the game. Any note issued must mature
not later than seven years from its date of issuance.
(h) The funds in the Other Events trust fund may be used to
pay the principal of and interest on notes issued by an endorsing
municipality or endorsing county under Subsection (g) of this
section and to fulfill obligations of the state or an endorsing
municipality or endorsing county to a site selection organization
under a game support contract or event support contract, which
obligations may include the payment of costs relating to the
preparations necessary or desirable for the conduct of the game and
the payment of costs of conducting the game, including improvements
or renovations to existing facilities or other facilities and costs
of acquisition or construction of new facilities or other
facilities.
(i) A local organizing committee, endorsing municipality,
or endorsing county shall provide information required by the
comptroller to enable the comptroller to fulfill the comptroller's
duties under this section, including annual audited statements of
any financial records required by a site selection organization and
data obtained by the local organizing committee, an endorsing
municipality, or an endorsing county relating to attendance at the
game and to the economic impact of the game. A local organizing
committee, endorsing municipality, or endorsing county must
provide an annual audited financial statement required by the
comptroller, if any, not later than the end of the fourth month
after the date the period covered by the financial statement ends.
(j) The comptroller shall provide an estimate not later than
three months before the date of a game of the total amount of tax
revenue that would be deposited in the Other Events trust fund under
this section in connection with that game, if the game were to be
held in this state at a site selected pursuant to an application by
a local organizing committee, endorsing municipality, or endorsing
county. The comptroller shall provide the estimate on request to a
local organizing committee, endorsing municipality, or endorsing
county. A local organizing committee, endorsing municipality, or
endorsing county may submit the comptroller's estimate to a site
selection organization.
(k) The comptroller may make a disbursement from the Other
Events trust fund on the prior approval of each contributing
endorsing municipality or endorsing county for a purpose for which
an endorsing municipality or endorsing county or the state is
obligated under a game support contract or event support contract.
A disbursement may not be made from the trust fund that the
comptroller determines would be used for the purpose of soliciting
the relocation of a professional sports franchise located in this
state.
(l) If a disbursement is made from the Other Events trust
fund under Subsection (k), the obligation shall be satisfied
proportionately from the state and local revenue in the trust fund.
(m) On payment of all state, municipal, or county
obligations under a game support contract or event support contract
related to the location of any particular game in the state, the
comptroller shall remit to each endorsing entity, in proportion to
the amount contributed by the entity, any money remaining in the
trust fund.
(n) This subsection applies only to a bid for or hosting of
the 2004 Super Bowl. Notwithstanding any provision in this section
to the contrary, the comptroller may not retain and the endorsing
municipality or endorsing county may not remit to the comptroller,
as applicable, the local tax revenues described in Subsection
(b)(2), (b)(3), (b)(4), or (b)(5) of this section. For purposes of
Subsection (f) of this section, the comptroller shall deposit a
portion of the state tax revenue determined under Subsection (b)(1)
of this section in an amount equal to 6.25 times the amount of the
local sales and use tax revenue and mixed beverage tax revenue that
the comptroller determines pursuant to Subsection (b) of this
section represents the incremental increase in receipts to an
endorsing municipality or endorsing county.
(o) This section may not be construed as creating or
requiring a state guarantee of obligations imposed on the state or
an endorsing municipality or endorsing county under a game support
contract or other agreement relating to hosting one or more games in
this state.
(p) The comptroller may not undertake any of the
responsibilities or duties set forth in this section unless a
request is submitted by the municipality and the county in which the
game will be located. The request must be accompanied by
documentation from a site selection organization selecting the site
for the game.
(q) This section expires January 1, 2007.
SECTION __.06. Section 6, Chapter 1507, Acts of the 76th
Legislature, Regular Session, 1999 (Article 5190.14, Vernon's
Texas Civil Statutes), is amended to read as follows:
Sec. 6. MUNICIPAL OR COUNTY ELECTION. (a) Except as
provided by Subsections [Subsection] (b) and (d) of this section,
an endorsing municipality or endorsing county must hold an election
in the municipality or county to determine whether the municipality
or county may contribute a portion of its sales and use taxes [and
hotel occupancy taxes to the Pan American Games trust fund under
Section 4 of this Act or a portion of its sales and use taxes] to the
Olympic Games trust fund under Section 5 of this Act[, as applicable
to the games for which the municipality has authorized a bid on its
behalf]. The election must be held on a uniform election date [that
occurs after the effective date of this Act and] before the date a
site selection organization requires the endorsing municipality or
endorsing county and the state to enter into a joinder undertaking
relating to the applicable games.
(b) [An endorsing municipality authorizing a bid on its
behalf for the 2007 Pan American Games is not required to hold an
election under this section if there is not a sufficient number of
days between the effective date of this Act and a uniform election
date that occurs before the date a site selection organization
requires that the endorsing municipality and the state enter into a
joinder undertaking to allow the municipality to submit the
proposed election to the United States attorney general for
preclearance under Section 5 of the Voting Rights Act of 1965, as
amended (42 U.S.C. Section 1973c), at least 120 days before the
election.
[(c)] If an endorsing municipality or endorsing county is
required to hold an election under this section and the
contribution of a portion of the municipality's or county's sales
and use taxes to the [Pan American Games trust fund or] Olympic
Games trust fund under Section 5 of this Act [, as applicable to the
games for which the endorsing municipality authorized a site
selection bid on its behalf,] is not approved by a majority of the
voters voting in the election:
(1) the comptroller may not establish the [Pan
American Games trust fund under Section 4 of this Act or the]
Olympic Games trust fund under Section 5 of this Act[, as
applicable], may not retain the municipality's or county's
[municipal sales and use] tax revenue under Section [4(d) or] 5(d)
of this Act[, as applicable,] from amounts otherwise required to be
sent to that municipality or county [under Section 321.502, Tax
Code], and may not deposit any state tax revenue into the trust
fund;
(2) the comptroller is not required to determine the
incremental increase in state, county, or [and] municipal tax
revenue under Section [4(b) or] 5(b) of this Act[, as applicable];
and
(3) the department may not enter into a games support
contract relating to the games for which the municipality or county
has authorized a bid on its behalf.
(c) Notwithstanding any other provisions of this Act, an
endorsing municipality or endorsing county is not required to hold
an election in order to contribute its mixed beverage tax revenue or
its hotel occupancy tax revenue to the Olympic Games trust fund
under Section 5 of this Act.
SECTION __.07. Sections 7(a), (b), (e), (f), (g), (i), and
(j), Chapter 1507, Acts of the 76th Legislature, Regular Session,
1999 (Article 5190.14, Vernon's Texas Civil Statutes), are amended
to read as follows:
(a) The department shall review requests from a local
organizing committee, endorsing municipality, or endorsing county
that the department, on behalf of the state, enter into a games
support contract that is required by a site selection organization
in connection with the committee's, municipality's, or county's bid
to host any of the games. This section does not affect or apply to
an event support contract under Section 5A of this Act to which the
department is not a party.
(b) A request made under Subsection (a) of this section must
be accompanied by:
(1) a general description and summary of the games for
which a site selection is sought by the local organizing committee,
endorsing municipality, or endorsing county;
(2) a preliminary and general description of the
proposal the local organizing committee, endorsing municipality,
or endorsing county intends to submit to a site selection
organization;
(3) the estimated cost of preparing and submitting the
intended proposal;
(4) the local organizing committee's, endorsing
municipality's, or endorsing county's intended method of obtaining
the funds needed for the purpose of preparing the proposal;
(5) a description by type and approximate amount of
the site selection application costs that the local organizing
committee, endorsing municipality, or endorsing county intends to
pay; and
(6) any other information reasonably requested by the
department to assist it in reviewing the request.
(e) The department may agree in a joinder agreement that the
state will:
(1) provide or cause to be provided all of the
governmental funding, facilities, and other resources specified in
the local organizing committee's, endorsing municipality's, or
endorsing county's bid to host the games;
(2) be bound by the terms of, cause the local
organizing committee, endorsing municipality, or endorsing county
to perform, and guarantee performance of the local organizing
committee's, endorsing municipality's, or endorsing county's
obligations under contracts relating to selecting a site in this
state for the games; and
(3) be jointly and severally liable with the local
organizing committee, endorsing municipality, or endorsing county
for:
(A) obligations of the local organizing
committee, endorsing municipality, or endorsing county to a site
selection organization, including obligations indemnifying the
site selection organization against claims of and liabilities to
third parties arising out of or relating to the games; and
(B) any financial deficit relating to the games.
(f) The department may agree to execute a joinder
undertaking, a joinder agreement, or other games support contract
only if:
(1) the department determines that:
(A) the state's assurances and obligations under
the undertaking, agreement, or contract are reasonable; and
(B) any financial commitments of the state will
be satisfied exclusively by recourse to the Pan American Games
trust fund or the Olympic Games trust fund, as applicable; and
(2) the endorsing municipality or endorsing county has
executed an agreement with a site selection organization that
contains substantially similar terms.
(g) Before executing a games support contract, the
department must execute an agreement with the [applicable] local
organizing committee, endorsing municipality, or endorsing county
requiring that if a site selection organization selects a site for
the games in this state pursuant to an application by the local
organizing committee, endorsing municipality, or endorsing county,
the local organizing committee, endorsing municipality, or
endorsing county will repay the state any funds expended by the
department under this Act from any surplus of the local organizing
committee's, endorsing municipality's, or endorsing county's funds
remaining after the presentation of the games and after the payment
of the expenses and obligations incurred by the local organizing
committee, endorsing municipality, or endorsing county.
(i) The department may require a local organizing
committee, endorsing municipality, or endorsing county to list the
state as an additional insured on any policy of insurance purchased
by the local organizing committee, endorsing municipality, or
endorsing county and required by a site selection organization to
be in effect in connection with the games.
(j) The Texas Department of Transportation, the Department
of Public Safety of the State of Texas, and the Texas Department of
Housing and Community Affairs may:
(1) assist a local organizing committee, endorsing
municipality, or endorsing county in developing applications and
planning for the games; and
(2) enter into contracts, agreements, or assurances
related to the presentation of the games.
SECTION __.08. Section 26.041, Tax Code, is amended by
adding Subsection (j) to read as follows:
(j) Any amount derived from the sales and use tax that is
retained by the comptroller under Section 4 or 5, Chapter 1507, Acts
of the 76th Legislature, Regular Session, 1999 (Article 5190.14,
Vernon's Texas Civil Statutes), is not considered to be sales and
use tax revenue for purposes of this section.
SECTION __.09. Section 7(k), Chapter 1507, Acts of the 76th
Legislature, Regular Session, 1999 (Article 5190.14, Vernon's
Texas Civil Statutes), is repealed.