79R190 EMT-D
By: Puente H.B. No. 3103
A BILL TO BE ENTITLED
AN ACT
relating to authorizing measures to support efforts to attract
major motor sports racing events to this state.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
SECTION 1. Section 1(8), Chapter 1507, Acts of the 76th
Legislature, Regular Session, 1999 (Article 5190.14, Vernon's
Texas Civil Statutes), is amended to read as follows:
(8) "Site selection organization" means the United
States Olympic Committee, the International Olympic Committee, 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, or the Automobile
Competition Committee of the United States (ACCUS) affiliated with
the Federation Internationale de l'Automobile.
SECTION 2. Section 2, 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. 2. PURPOSE. The purpose of this Act is to provide
assurances required by a site selection organization sponsoring one
or more major sporting or athletic events [games] and to provide
financing for the costs of:
(1) applying or bidding for selection as the site of
major sporting or athletic events [the games] in this state;
(2) making the preparations necessary and desirable
for the conduct of major sporting or athletic events [the games] in
this state, including the construction or renovation of facilities;
and
(3) conducting major sporting or athletic events [the
games] in this state.
SECTION 3. Section 3, Chapter 1507, Acts of the 76th
Legislature, Regular Session, 1999 (Article 5190.14, Vernon's
Texas Civil Statutes), as amended by Section 2, Chapter 579, and
Section 5.02, Chapter 814, Acts of the 78th Legislature, Regular
Session, 2003, is reenacted and amended to read as follows:
Sec. 3. LEGISLATIVE FINDINGS. The conduct in this state of
one or more major sporting or athletic events [games] will:
(1) provide invaluable public visibility throughout
the nation or world for this state and the communities where the
major sporting or athletic events [games] are held;
(2) encourage and provide major economic benefits to
the communities where the major sporting or athletic events [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 4. Chapter 1507, Acts of the 76th Legislature,
Regular Session, 1999 (Article 5190.14, Vernon's Texas Civil
Statutes), is amended by adding Section 5B to read as follows:
Sec. 5B. GUARANTEE OF STATE AND MUNICIPAL OR COUNTY
OBLIGATIONS; UNITED STATES GRAND PRIX TRUST FUND. (a) In this
section:
(1) "Endorsing county" means a county with a
population of one million or more that contains a site selected by a
site selection organization for one or more motor sports racing
events.
(2) "Endorsing municipality" means a municipality
with a population of one million or more that contains a site
selected by a site selection organization for one or more motor
sports racing events.
(3) "Event support contract" means a joinder
undertaking, joinder agreement, or similar contract executed by an
endorsing municipality or endorsing county and a site selection
organization.
(4) "Motor sports racing event" means a specific
automobile racing event for a particular year referred to as the
United States Grand Prix. The term includes any events and
activities held, sponsored, or endorsed by the site selection
organization in conjunction with the racing event.
(b) If a site selection organization selects a site for a
motor sports racing event 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
motor sports racing event, the comptroller shall determine for the
30-day period that ends at the end of the day after the date on which
the racing event 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 racing event;
(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 racing event;
(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 racing
event;
(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 racing event; 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 racing event.
(c) For the purposes of Subsection (b)(1) of this section,
the comptroller shall designate as a market area for the motor
sports racing event 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 racing event, including areas likely to provide venues,
accommodations, and services in connection with the racing event
based on a proposal or other information provided by an endorsing
municipality, endorsing county, or 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 racing
event must be included in a market area for the racing event.
(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 United
States Grand Prix 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 30-day 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 United States Grand Prix
trust fund is established outside the state treasury and is held in
trust by the comptroller for administration of this section. 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 United
States Grand Prix trust fund under Subsection (d) of this section,
an endorsing municipality or endorsing county may guarantee its
obligations under a motor sports racing event support contract and
this section by pledging surcharges from user fees, including
parking or ticket fees, charged in connection with the racing
event.
(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 motor sports racing
event 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 United States Grand Prix trust fund or surcharges from user
fees, including parking or ticket fees, charged in connection with
the racing event. Any note issued must mature not later than seven
years from its date of issuance.
(h) The funds in the United States Grand Prix 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 motor sports racing event 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 racing event and the payment of costs of conducting the
racing event, 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
motor sports racing event and to the economic impact of the racing
event. 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 motor sports racing event of the
total amount of tax revenue that would be deposited in the United
States Grand Prix trust fund under this section in connection with
that racing event, if the racing event 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 United
States Grand Prix 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 motor sports racing event 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 United States Grand
Prix trust fund under Subsection (k) of this section, 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 motor sports racing support contract or event
support contract related to the location of any particular racing
event 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 motor sports
racing event support contract or other agreement relating to
hosting one or more racing events in this state.
(o) 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
motor sports racing event will be held. The request must be
accompanied by documentation from a site selection organization
selecting the site for the racing event.
(p) Any provision of this Act applicable to games as defined
by Section 1(3) of this Act also applies to a motor sports racing
event as defined in this section.
SECTION 5. Section 7(a), Chapter 1507, Acts of the 76th
Legislature, Regular Session, 1999 (Article 5190.14, Vernon's
Texas Civil Statutes), is 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 or Section 5B of this Act
to which the department is not a party.
SECTION 6. This Act takes effect September 1, 2005.