78R8961 T
By: Woolley H.B. No. 2768
A BILL TO BE ENTITLED
AN ACT
relating to facilitating and supporting the efforts of certain
municipalities to promote economic development by hosting the Pan
American Games, the Olympic Games, the Super Bowl, the NCAA Final
Four, the NBA All Star Game, the MLB All Star Game, BCS Games, and
World Cup Soccer Games, and events and activities related to any of
the foregoing; authorizing certain municipalities and certain
counties to issue notes for payment of obligations incurred to bid
for, prepare for, and host any of the foregoing events.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
SECTION 1. The heading to Article 5190.14, Vernon's Texas
Civil Statutes, is amended to read as follows:
Art. 5190.14. Pan American Games; Olympic Games; Other
Events
SECTION 2. Section 1, Article 5190.14, Vernon's Texas Civil
Statutes, is amended to read as follows:
Sec. 1. In this Act:
(1) "BCS" means the NCAA Bowl Championship Series.
(2) "Department" means the Texas Department of
Economic Development.
(3) "Endorsing municipality" means a municipality
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 game or games.
(4) "Endorsing county" means a county in which an
endorsing municipality is located or which is adjacent to the
county in which an endorsing municipality is located, and that
authorizes a bid by a local organizing committee for selection of
the county as the site for one or more Games.
(5) "FIFA" means the Fédération Internationale de
Football Association.
(6) "Game" or "Games" means individually the [2007]
Pan American Games, [or] the [2012] Olympic Games, the Super Bowl,
the NCAA Final Four, the NBA All Star Game, NHL All Star Game, the
MLB All Star Game, BCS Games, and World Cup Soccer Games, and any
events and activities related to or associated with any of the
foregoing.
(7) "Games support contract" means a joinder
undertaking, a joinder agreement, or a similar contract executed by
the department and containing terms permitted or required by this
Act.
(8) "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 and/or endorsing
county, individually or collectively, and a site selection
organization setting out representations and assurances by the
endorsing municipality and/or the endorsing county in connection
with the selection of a site in this state for the location of any of
the games.
(9) "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 and/or an
endorsing county, individually or collectively, and a site
selection organization that the endorsing municipality and/or the
endorsing 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.
(10) "Local organizing committee" means a nonprofit
corporation or its successor in interest that:
(A) has been authorized by an endorsing
municipality and/or an endorsing county, individually or
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, has executed an agreement with a site selection
organization regarding a bid to host one or more [of the] games.
(11) "MLB" means Major League Baseball.
(12) "NBA" means the National Basketball Association.
(13) "NCAA" means the National Collegiate Athletic
Association.
(14) "NFL" means the National Football League.
(15) "NHL" means the National Hockey League.
(16) "Site selection organization" means the United
States Olympic Committee, the International Olympic Committee,
[or] the Pan American Sports Organization, the NFL, the NCAA, the
NBA, the NHL, the MLB, or FIFA.
SECTION 3. Section 2, Article 5190.14, Vernon's Texas Civil
Statutes, is amended to read as follows:
Sec. 2. 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 involved in (1)
making an application or bid for the location of one or more games
in this state, and/or (2) making the preparations necessary and
desirable for the conduct of one or more games in this state,
including the construction or renovation of facilities, and/or (3)
conducting one or more games in this state.
SECTION 4. Section 3, Article 5190.14, Vernon's Texas Civil
Statutes, is amended to read as follows:
Sec. 3. The conduct in this state of one or more of the games
will:
(1) provide invaluable public visibility throughout
the world or the nation 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 5. Section 4(a), Article 5190.14, Vernon's Texas
Civil Statutes, is amended to read as follows:
Sec. 4. (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.
SECTION 6. Section 4(i), Article 5190.14, Vernon's Texas
Civil Statutes, is amended to read as follows:
(i) The comptroller shall provide an estimate not later than
September 1[, 1999] of the year which is eight years prior to the
year in which it is anticipated that the games may be held in the
state, of the total amount of state and municipal tax revenue that
would be deposited in the Pan American Games trust fund before
January 1[, 2008] of the year after the year in which it is
anticipated that the games will be held, 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.
SECTION 7. Section 4(l), Article 5190.14, Vernon's Texas
Civil Statutes, is amended to read as follows:
(l) On January 1[, 2009] of the second year after the year in
which the games were held in the state, 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 8. Section 5(a), Vernon's Texas Civil Statutes, is
amended to read as follows:
Sec. 5. (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.
SECTION 9. Section 5(b), Vernon's Texas Civil Statutes, is
amended to read as follows:
(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 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 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 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;
and
(3) the incremental increase in the receipts collected
by the state on behalf of the endorsing county from the sales and
use tax imposed by the endorsing municipality under Section
323.101(a), Tax Code, and the mixed beverage tax to be received by
the endorsing county under Section 183.051(b), Tax Code, that are
directly attributable, as determined by the comptroller, to the
preparation for and presentation of the games and related events;
and
(4) the incremental increase in the receipts collected
by the endorsing municipality from its 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 the endorsing county from its 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.
SECTION 10. Section 5(d), Vernon's Texas Civil Statutes, is
amended to read as follows:
(d) 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 and/or endorsing county
under a games support contract and this Act, the amount of sales and
use tax revenue and mixed beverage tax revenue determined under
Subsection (b)(2) and/or (b)(3) of this section from the amounts
otherwise required to be sent to the endorsing municipality under
Sections 321.502 or 183.051(b), Tax Code, or to the endorsing
county under Sections 323.502 and 183.051(b), 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
sales and use tax revenue and mixed beverage tax revenue under
Subsection (b)(2) and/or (b)(3) of this section. The comptroller
shall discontinue retaining 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 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 municipal tax
revenue that may be deposited in the trust fund under Subsection (m)
of this section.
SECTION 11. Section 5(f), Vernon's Texas Civil Statutes, is
amended to read as follows:
(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 Olympic 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 and/or endorsing county
shall deposit into the trust fund the amount of their/its hotel
occupancy tax revenue determined under Subsections (b)(4) or (b)(5)
of this section. The endorsing municipality and/or endorsing
county shall deposit that hotel occupancy tax revenue into the
trust fund at least quarterly. When the endorsing municipality
and/or endorsing county makes a deposit of their/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 hotel occupancy tax revenue. The 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 tax revenue that may be deposited in the trust fund
under Subsection (m) of this section.
SECTION 12. Section 5(i), Vernon's Texas Civil Statutes, is
amended to read as follows:
(i) The comptroller shall provide an estimate before August
31[, 2000] of the year which is twelve years prior to the year in
which the games are scheduled to be held, or as soon as practical
after that date, of the total amount of state and municipal 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.
SECTION 13. Article 5190.14, Vernon's Texas Civil Statutes,
is amended is add Section 5A to read as follows:
Payment and/or Guarantee of Municipal and/or County
Obligations; Other Events Trust Fund
Sec. 5A. (a) In this section:
(1) "Game" means the Super Bowl, the NCAA Final Four,
the NBA All Star Game, the NHL All Star Game, the MLB All Star Game,
BCS Games, or World Cup Soccer Game and any events and activities
related to or associated with any of the foregoing.
(2) "Games support contract" means, for the purposes
of this section, a joinder undertaking, a joinder agreement, or a
similar contract executed by the endorsing municipality and/or an
endorsing county and containing terms permitted or required by this
section.
(3) "Joinder agreement" means, for the purposes of
this section, an agreement entered into by an endorsing
municipality and/or endorsing county and a site selection
organization setting out representations and assurances by the
endorsing municipality in connection with the selection of a site
in this state for the location of the game.
(4) "Joinder undertaking" means, for the purposes of
this section, an agreement entered into by an endorsing
municipality and/or an endorsing county and a site selection
organization that the endorsing municipality and/or endorsing
county will execute a joinder agreement in the event that the site
selection organization selects a site in this state for the game.
(5) "Site selection organization" means the NFL, NCAA,
NBA, NHL, MLB or FIFA.
(b) If the site section organization selects a site for a
game 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 game, as
determined by the comptroller, but in no event later than three
months before the date of the game, the comptroller shall determine
for each subsequent calendar month, in accordance with procedures
developed by the comptroller:
(1) 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, and the mixed beverage tax 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 game and related events;
and
(2) the incremental increase in the receipts collected
by the state on behalf of the endorsing county from the sales and
use tax imposed by the endorsing county under Section 323.101(a),
Tax Code, and the mixed beverage tax 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; and
(3) the incremental increase in the receipts collected
by the endorsing municipality from its 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
(4) the incremental increase in the receipts collected
by the endorsing county from its 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. The endorsing municipality and/or endorsing county
that has been selected as the site for the game must be included in a
market area for the game.
(d) Subject to Section 6 of this Act, the endorsing
municipality and/or endorsing county shall establish a trust fund
designated as the Other Events trust fund, and shall deposit into
the trust fund the estimated incremental increase in the amount of
sales and use tax revenue and mixed beverage tax revenue in the
amount estimated by the comptroller under Subsection (b) of this
section, minus any amount of such revenues which may be pledged to
obligations of the municipality and/or county issued for purposes
other than the support of a bid for, preparation for, or hosting of
the games or related activities or events. Subject to Section 6 of
this Act, the endorsing municipality and/or endorsing county shall
also deposit into the trust fund the estimated incremental increase
in the amount of their/its hotel occupancy tax revenue in the amount
estimated by the comptroller under Subsection (b)(3) and/or (b)(4)
of this section, minus any amount of such revenue which may be
pledged to obligations of the municipality and/or county issued for
purposes other than the support of a bid for, preparation for, or
hosting of the game or related activities or events. The Other
Events trust fund shall be established outside the general fund of
the endorsing municipality and/or endorsing county and is to be
held in trust by the endorsing municipality and/or endorsing county
for the administration of this section. Money in the trust fund may
be spent by the endorsing municipality and/or endorsing county
without appropriation and only as provided by this Act.
(e) In addition to the use of municipal sales and use, mixed
beverage tax, and hotel occupancy tax revenue described under
Subsection (d) of this section, an endorsing municipality and/or
endorsing county may guarantee its obligations under a games
support contract and this section by pledging surcharges from user
fees, including parking or ticket fees, charged in connection with
the game.
(f) To meet its obligations under a games support contract
to improve, construct, renovate or acquire facilities or to acquire
equipment, the endorsing municipality by ordinance and/or the
endorsing county by order may authorize the issuance of notes. The
endorsing municipality 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 and/or surcharges from user fees, including
parking or ticket fees, charged in connection with the game. Any
note issued must mature no later than [seven] years from its date of
issuance.
(g) The endorsing municipality and/or endorsing county may
use the funds in the Other Events trust fund only to fulfill
obligations of the endorsing municipality and/or endorsing county
to a site selection organization under a games support contract or
any other agreement providing assurances from the endorsing
municipality and/or endorsing county to a site selection
organization, which obligations may include the payment of costs
relating to preparations necessary or desirable for the conduct of
the game and the payment of costs of conducting the game (including
costs of improvements or renovations to existing facilities or
other facilities and costs of acquisition or construction of new
facilities or other facilities).
(h) A local organizing committee 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 the local organizing committee's financial
records required by a site selection organization and data obtained
by the local organizing committee relating to attendance at the
game and to the economic impact of the game. A local organizing
committee must provide an annual audited financial statement
required by the comptroller not later than the end of the fourth
month after the date the period covered by the financial statement
ends.
(i) The comptroller shall provide an estimate not later than
one month after requested, of the total amount of tax revenue that
would be deposited in the Other Events trust fund before the date of
the game, if the game was 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.
SECTION 14. Section 6, Article 5190.14, Vernon's Texas
Civil Statutes, is amended to read as follows:
Sec. 6. (a) Except as provided by Subsection (b) of this
section, an endorsing municipality and/or endorsing county must
hold an election in the endorsing municipality and/or endorsing
county to determine whether the endorsing municipality and/or
endorsing county may contribute a portion of its sales and use 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, and/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 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 or applicable revisions to this Act and before the date a site
selection organization requires the endorsing municipality and/or
the endorsing county and the state to enter into a joinder
undertaking relating to the applicable games.
(b) An endorsing municipality and/or an endorsing county
authorizing a bid on its behalf for the 2007 Pan American Games or
the 2004 Super Bowl 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 or applicable revisions to this Act and a
uniform election date that occurs before the date a site selection
organization requires that the endorsing municipality and/or the
endorsing county and/or the state enter into a joinder undertaking
to allow the endorsing municipality and/or the endorsing 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) An endorsing municipality and/or an endorsing county
shall not be required to hold an election in order to contribute its
mixed beverage tax revenue or its hotel occupancy tax revenue to the
Pan American Games trust fund under Section 4 of this Act, to the
Olympic Games trust fund under Section 5 of this Act, or to the
Other Events trust fund under Section 6 of this Act.
SECTION 15. Section 6, Article 5190.14, Vernon's Texas
Civil Statutes, is amended to add subsection (d) to read as follows:
(d) If an endorsing municipality and/or an endorsing county
is required to hold an election under this section and the
contribution of a portion of their/its sales and use taxes to the
Other Events trust fund is not approved by a majority of the voters
voting in the election, the endorsing municipality and/or the
endorsing county may not request that the comptroller estimate the
incremental increase in the taxes due to the hosting of the game in
the municipality and/or county and may not deposit the estimated
incremental increase in the sales and use taxes into the Other
Events trust fund or use such taxes to support obligations of the
endorsing municipality and/or the endorsing county under a games
support contract.
SECTION 16. This Act takes effect September 1, 2003.
SECTION 17. The importance of this legislation and the
crowded condition of the calendars in both houses create an
emergency and an imperative public necessity that the
constitutional rule requiring bills to be read on three several
days in each house be suspended, and this rule is hereby suspended.