78R15151 YDB-F


By:  Woolley                                                      H.B. No. 2768

Substitute the following for H.B. No. 2768:                                   

By:  Isett                                                    C.S.H.B. No. 2768


A BILL TO BE ENTITLED
AN ACT
relating to facilitating and supporting the efforts of certain municipalities and counties to promote economic development by hosting certain sport events and authorizing certain municipalities and counties to issue notes for payment of obligations incurred to bid or prepare for and host those events. BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: SECTION 1. 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 (2), (3), (5), (6), (7), and (8) and adding Subdivision (1-a) to read as follows: (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, of 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 2. 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 3. Sections 4(a), (b), (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. (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 4. 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 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 5. 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 in which there is located all or part of a municipality that has a population of one million or more, or a county adjacent to such a county, and that authorizes a bid by a local organizing committee for selection of the county as the site of one or more games. (2) "Endorsing municipality" means a municipality that has a population of one million or more and that authorizes a bid by a local organizing committee for selection of the municipality as the site of one or more games. (3) "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. (4) "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 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. Subject to Section 6 of this Act, 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 but is held in trust by the comptroller for administration of this Act. Money in the trust fund may be spent by the department without appropriation only as provided by this Act. (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 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 department may use the funds in the Other Events trust fund 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 and an endorsing municipality or endorsing county to a site selection organization under a game support contract or any other agreement obligating the department or the municipality or county to a site selection organization, 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 department may not make a disbursement from the Other Events trust fund unless the comptroller certifies that the disbursement is for a purpose for which the state and the endorsing municipality or the endorsing county are jointly or severally obligated under a game support contract or other agreement described by Subsection (h) of this section. The department may not make any disbursements from the Other Events trust fund without obtaining the prior approval of the contributing endorsing municipality or endorsing county, whichever is applicable. 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. (l) If the comptroller certifies under Subsection (k) of this section that a disbursement may be made from the Other Events trust fund, 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 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 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. (o) This section expires January 1, 2007. SECTION 6. 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, or a portion of its sales and use taxes to the Other Events trust fund under Section 5A of this Act, as applicable to the game or games for which the municipality or county 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 game or games. (b) An endorsing municipality or endorsing county authorizing a bid on its behalf for the 2004 Super Bowl [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 the amendment made by the 78th Legislature, Regular Session, 2003, to add Section 5A to this Act and a uniform election date that occurs before the date a site selection organization requires that the endorsing municipality or endorsing county and the state enter into a joinder undertaking to allow the municipality or county 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 under Section 4 of this Act, [or] Olympic Games trust fund under Section 5 of this Act, or the Other Events trust fund under Section 5A 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 applicable [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), or 5A(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), or 5A(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. (d) 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 or Other Events trust fund under Section 5A of this Act, as applicable to the game or games for which the endorsing municipality or endorsing county authorized a site selection bid on its behalf. SECTION 7. 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. (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, or the Other Events 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 8. 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, 5, or 5A, 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 9. Section 7(k), Chapter 1507, Acts of the 76th Legislature, Regular Session, 1999 (Article 5190.14, Vernon's Texas Civil Statutes), is repealed. SECTION 10. This Act takes effect September 1, 2003.