S.B. No. 1253
AN ACT
relating to measures to support efforts of municipalities and
counties to recruit or retain special events.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
SECTION 1. Subtitle C, Title 12, Local Government Code, is
amended by adding Chapter 398 to read as follows:
CHAPTER 398. MEASURES TO SUPPORT MUNICIPAL AND COUNTY SPECIAL
EVENTS
Sec. 398.001. DEFINITIONS. In this chapter:
(1) "Host community" means a municipality or county
authorized by its governing body to host or assist in the
presentation of a special event. The term includes a group of
counties and municipalities that with the authorization of each
governing body agree to jointly host or assist in the presentation
of a special event.
(2) "Site selection organization" means an
organization that, through a competitive selection process in which
at least one site that is not located in this state was considered,
chooses a site for an event conducted by the organization.
(3) "Special event" means an event held in a public
place within the boundaries of a host community that is selected by
a site selection organization as the site for the event.
Sec. 398.002. PURPOSE. The purpose of this chapter is to
authorize a host community to use a portion of the sales tax revenue
generated by a special event to assist in paying expenses incurred
in connection with the event, including expenses for the purposes
provided by Section 398.007(c).
Sec. 398.003. LEGISLATIVE FINDINGS. The legislature finds
that the conduct in this state of a special event will:
(1) provide substantial economic benefits to the
community where the special event is held and to the entire state;
and
(2) provide opportunities for the creation of jobs by
local and state businesses that pay a living wage.
Sec. 398.004. ECONOMIC IMPACT STUDY. (a) To be eligible
to use a portion of the tax revenue generated by a special event to
assist in paying expenses incurred in connection with the event
under this chapter, a host community must conduct an economic
impact study of the geographic area expected to experience economic
benefits from the special event and submit the study to the
comptroller for certification.
(b) The economic impact study must identify the geographic
area expected to experience economic benefits from the special
event and provide an estimate of:
(1) the general economic impact likely to occur in the
area as a result of the event; and
(2) the anticipated amount of increase in the tax
receipts to this state from the taxes imposed under Chapter 151, Tax
Code, that:
(A) will occur in the special event area during
the period that begins on the day before the first day of the event
and ends at the earlier of:
(i) the end of the day following the last
day of the event; or
(ii) the end of the 30th day after the day
before the first day of the event; and
(B) is directly attributable to the preparation
for and presentation of the event.
Sec. 398.005. COMPTROLLER CERTIFICATION OF ECONOMIC IMPACT
STUDY. (a) Not later than the 30th day after receiving the
economic impact study from a host community, the comptroller shall:
(1) determine whether the study accurately estimates
the amount of increase in the tax receipts to this state described
by Section 398.004(b)(2); and
(2) if the comptroller determines that the study
accurately reflects the increase in those tax receipts, certify the
study.
(b) If the comptroller determines that the economic impact
study submitted by the host community does not accurately estimate
the amount of increase in the tax receipts to this state described
by Section 398.004(b)(2), the comptroller not later than the 30th
day after receiving the study shall:
(1) submit a preliminary determination to the host
community; and
(2) provide the host community with an opportunity to
respond or submit a new or amended economic impact study to the
comptroller.
Sec. 398.006. SPECIAL EVENT PLAN; REQUEST FOR MONEY;
APPROVAL. (a) Not less than six months before the first day of a
special event, a host community requesting money under this chapter
shall submit a special event plan to the Texas Economic Development
and Tourism Office.
(b) A special event plan must include:
(1) a copy of an economic impact study for the special
event that has been certified under Section 398.005;
(2) the history of the event in the special event area,
a description of previous attempts by the host community to secure
the event, information regarding attempts by other communities to
recruit the event, and any other information that would justify
approval of the amount of money requested for the event under this
chapter;
(3) a detailed explanation justifying each expense as
it relates to the purposes provided by Section 398.007(c) that each
political subdivision within a host community anticipates will be
incurred in connection with hosting the event and for which each
political subdivision intends to use revenue from the special event
trust fund established by the comptroller for the host community
under this chapter;
(4) an estimate of the total amount of expenses each
political subdivision within a host community anticipates will be
incurred in hosting the event; and
(5) a request that an amount of money, not to exceed
the lesser of one-half of the amount of the total expenses estimated
under Subdivision (4) or one-half of the amount of the anticipated
increase in tax receipts to this state described by Section
398.004(b)(2) according to the certified economic impact study, be
deposited by the comptroller into a special event trust fund for the
host community.
(c) A host community may submit with a special event plan a
copy of an agreement between each political subdivision within the
host community and the organizers of the special event, which may
include provisions governing the expenses the host community or a
political subdivision has agreed to pay. The agreement may not be
for a term greater than five years.
(d) The Texas Economic Development and Tourism Office shall
submit the host community's special event plan to the governor, the
lieutenant governor, and the speaker of the house of
representatives for approval. The plan is considered approved if
the written approval of the governor, the lieutenant governor, and
the speaker of the house of representatives is received by the
office not later than the 90th day after the date the office
received the plan from the host community.
(e) If the written approval of the governor, the lieutenant
governor, and the speaker of the house of representatives is not
received as provided by Subsection (d), the special event plan is
considered disapproved.
Sec. 398.007. SPECIAL EVENT TRUST FUND. (a) If a special
event plan is approved under Section 398.006 and the host community
is selected as the site of the special event, the comptroller shall
deposit into a special event trust fund established by the
comptroller for the host community the amount requested in the
special event plan approved as provided by Section 398.006. The
comptroller shall make the deposits from the state tax receipts as
soon as practicable after those taxes are collected.
(b) The special event trust fund for a host community shall
be established outside the treasury and held in trust by the
comptroller for the administration of this chapter. Money in the
trust fund may be disbursed by the comptroller only as provided by
this chapter. No appropriation is necessary for that purpose.
(c) A host community may use the money in the special event
trust fund only for a public purpose related to the special event to
pay the expenses of:
(1) providing security specifically for the event;
(2) providing public transportation and traffic
management services for the event;
(3) providing or renting public facilities and the
utilities associated with the use of the facilities during the
event;
(4) preparing or maintaining a contract associated
with conducting the event;
(5) providing maintenance and janitorial services in
preparation for, during, or on completion of the event;
(6) developing or providing a special promotion,
incentive, or award for or associated with the event; and
(7) any other activity or item authorized in the
special event plan approved under Section 398.006.
(d) A host community may not use the money in the special
event trust fund to construct a facility.
(e) Each political subdivision within a host community
shall submit to the comptroller a written application for
reimbursement for an approved event-related expense accompanied by
a paid invoice or receipt. On receipt of the application in proper
form, the comptroller shall make a disbursement from the political
subdivision's special event trust fund to reimburse the political
subdivision for an event-related expense authorized by Subsection
(c) and incurred by the political subdivision.
(f) Not later than the 180th day following the last day of
the special event, or on an earlier date if each political
subdivision within a host community certifies to the comptroller
that the political subdivision has paid all obligations payable
from the special event trust fund, the comptroller shall transfer
to the general revenue fund any money remaining in the trust fund.
Sec. 398.008. INFORMATION AND AUDIT. (a) Each political
subdivision within a host community shall provide the information
required by the comptroller to enable the comptroller to carry out
the comptroller's duties under this chapter.
(b) A political subdivision shall provide to the
comptroller an audited financial statement in the form and at the
time required by the comptroller with sufficient information to
enable the comptroller to verify that all expenditures from a host
community's special event trust fund were authorized by law.
Sec. 398.009. NO STATE GUARANTEE OF OBLIGATIONS. This
chapter may not be construed as creating or requiring a state
guarantee of obligations incurred by a host community under a
contract or other agreement relating to hosting or conducting a
special event in this state.
SECTION 2. This Act takes effect September 1, 2005.
______________________________ ______________________________
President of the Senate Speaker of the House
I hereby certify that S.B. No. 1253 passed the Senate on
May 5, 2005, by the following vote: Yeas 31, Nays 0.
______________________________
Secretary of the Senate
I hereby certify that S.B. No. 1253 passed the House on
May 13, 2005, by a non-record vote.
______________________________
Chief Clerk of the House
Approved:
______________________________
Date
______________________________
Governor