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A BILL TO BE ENTITLED
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AN ACT
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relating to facilitating and supporting efforts of certain |
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municipalities and counties to promote economic development by |
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hosting certain major sporting or athletic events. |
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BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: |
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SECTION 1. Chapter 1507, Acts of the 76th Legislature, |
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Regular Session, 1999 (Article 5190.14, Vernon's Texas Civil |
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Statutes), is amended by adding Section 5C to read as follows: |
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Sec. 5C. SPORTING EVENT TRUST FUND FOR CERTAIN |
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MUNICIPALITIES AND COUNTIES. (a) In this section: |
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(1) "Endorsing county" means a county with a |
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population of 800,000 or more that contains a site selected by a |
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site selection organization for one or more games. |
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(2) "Endorsing municipality" means a municipality |
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with a population of 600,000 or more that contains a site selected |
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by a site selection organization for one or more games. |
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(3) "Event support contract" means a joinder |
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undertaking, a joinder agreement, or a similar contract executed by |
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an endorsing municipality or endorsing county and a site selection |
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organization. |
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(4) "Game" means a National Collegiate Athletic |
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Association regional tournament or playoff game, a Senior Olympic |
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activity, including a training program or feeder program sanctioned |
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by the National Senior Games Association, or a major sporting or |
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athletic event sanctioned by a site selection organization. The |
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term includes any events and activities related to or associated |
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with the games. |
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(5) "Site selection organization" means the National |
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Collegiate Athletic Association, the Professional Golfers' |
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Association, USA Track & Field, the United States Volleyball |
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Association, the World Karting Association, the Professional Rodeo |
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Cowboys Association, and USA Cycling. |
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(b) If a site selection organization selects a site for a |
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game in this state pursuant to an application by a local organizing |
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committee, endorsing municipality, or endorsing county, not later |
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than three months before the date of the game, the comptroller shall |
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determine for the two-week period that ends at the end of the day |
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after the date on which the game will be held or, if the game occurs |
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on more than one day, after the last date on which the game will be |
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held, in accordance with procedures developed by the comptroller: |
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(1) the incremental increase in the receipts to this |
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state from taxes imposed under Chapters 151, 152, 156, and 183, Tax |
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Code, and under Title 5, Alcoholic Beverage Code, within the market |
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areas designated under Subsection (c) of this section, that is |
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directly attributable, as determined by the comptroller, to the |
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preparation for and presentation of the game and related events; |
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(2) the incremental increase in the receipts collected |
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by this state on behalf of each endorsing municipality in the market |
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area from the sales and use tax imposed by each endorsing |
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municipality under Section 321.101(a), Tax Code, and the mixed |
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beverage tax revenue to be received by each endorsing municipality |
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under Section 183.051(b), Tax Code, that is directly attributable, |
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as determined by the comptroller, to the preparation for and |
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presentation of the game and related events; |
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(3) the incremental increase in the receipts collected |
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by this state on behalf of each endorsing county in the market area |
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from the sales and use tax imposed by each endorsing county under |
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Section 323.101(a), Tax Code, and the mixed beverage tax revenue to |
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be received by each endorsing county under Section 183.051(b), Tax |
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Code, that is directly attributable, as determined by the |
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comptroller, to the preparation for and presentation of the game |
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and related events; |
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(4) the incremental increase in the receipts collected |
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by each endorsing municipality in the market area from the hotel |
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occupancy tax imposed under Chapter 351, Tax Code, that is directly |
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attributable, as determined by the comptroller, to the preparation |
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for and presentation of the game and related events; and |
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(5) the incremental increase in the receipts collected |
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by each endorsing county in the market area from the hotel occupancy |
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tax imposed under Chapter 352, Tax Code, that is directly |
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attributable, as determined by the comptroller, to the preparation |
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for and presentation of the game and related events. |
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(c) For the purposes of Subsection (b)(1) of this section, |
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the comptroller shall designate as a market area for the game each |
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area in which the comptroller determines there is a reasonable |
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likelihood of measurable economic impact directly attributable to |
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the preparation for and presentation of the game and related |
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events, including areas likely to provide venues, accommodations, |
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and services in connection with the game based on the proposal |
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provided by the local organizing committee to the comptroller. The |
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comptroller shall determine the geographic boundaries of each |
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market area. An endorsing municipality or endorsing county that |
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has been selected as the site for the game must be included in a |
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market area for the game. |
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(d) Each endorsing municipality or endorsing county shall |
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remit to the comptroller and the comptroller shall deposit into a |
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trust fund created by the comptroller and designated as the |
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Sporting Events trust fund the amount of the municipality's or |
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county's hotel occupancy tax revenue determined under Subsection |
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(b)(4) or (5) of this section, less any amount of the revenue that |
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the municipality or county determines is necessary to meet the |
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obligations of the municipality or county. The comptroller shall |
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retain the amount of sales and use tax revenue and mixed beverage |
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tax revenue determined under Subsection (b)(2) or (3) of this |
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section from the amounts otherwise required to be sent to the |
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municipality under Sections 321.502 and 183.051(b), Tax Code, or to |
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the county under Sections 323.502 and 183.051(b), Tax Code, and |
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deposit into the trust fund the tax revenues, less any amount of the |
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revenue that the municipality or county determines is necessary to |
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meet the obligations of the municipality or county. The |
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comptroller shall begin retaining and depositing the local tax |
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revenues with the first distribution of that tax revenue that |
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occurs after the first day of the two-week period described by |
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Subsection (b) of this section and shall discontinue retaining the |
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local tax revenues under this subsection when the amount of the |
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applicable tax revenue determined under Subsection (b)(2) or (3) of |
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this section has been retained. The Sporting Events trust fund is |
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established outside the state treasury and is held in trust by the |
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comptroller for administration of this section. Money in the trust |
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fund may be disbursed by the comptroller without appropriation only |
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as provided by this section. |
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(e) In addition to the tax revenue deposited in the Sporting |
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Events trust fund under Subsection (d) of this section, an |
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endorsing municipality or endorsing county may guarantee its |
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obligations under a game support contract and this section by |
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pledging surcharges from user fees, including parking or ticket |
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fees, charged in connection with the game. |
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(f) The comptroller shall deposit into the Sporting Events |
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trust fund a portion of the state tax revenue determined under |
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Subsection (b)(1) of this section in an amount equal to 6.25 times |
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the amount of the local sales and use tax revenue and mixed beverage |
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tax revenue retained and the hotel occupancy tax revenue remitted |
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by an endorsing municipality or endorsing county under Subsection |
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(d) of this section. |
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(g) To meet its obligations under a game support contract or |
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event support contract to improve, construct, renovate, or acquire |
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facilities or to acquire equipment, an endorsing municipality by |
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ordinance or an endorsing county by order may authorize the |
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issuance of notes. An endorsing municipality or endorsing county |
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may provide that the notes be paid from and secured by amounts on |
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deposit or amounts to be deposited into the Sporting Events trust |
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fund or surcharges from user fees, including parking or ticket |
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fees, charged in connection with the game. Any note issued must |
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mature not later than seven years from its date of issuance. |
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(h) The money in the Sporting Events trust fund may be used |
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to pay the principal of and interest on notes issued by an endorsing |
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municipality or endorsing county under Subsection (g) of this |
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section and to fulfill obligations of this state or an endorsing |
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municipality or endorsing county to a site selection organization |
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under a game support contract or event support contract, which |
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obligations may include the payment of costs relating to the |
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preparations necessary or desirable for the conduct of the game and |
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the payment of costs of conducting the game, including improvements |
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or renovations to existing facilities or other facilities and costs |
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of acquisition or construction of new facilities or other |
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facilities. |
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(i) A local organizing committee, endorsing municipality, |
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or endorsing county shall provide information required by the |
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comptroller to enable the comptroller to fulfill the comptroller's |
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duties under this section, including annual audited statements of |
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any financial records required by a site selection organization and |
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data obtained by the local organizing committee, an endorsing |
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municipality, or an endorsing county relating to attendance at the |
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game and to the economic impact of the game. A local organizing |
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committee, endorsing municipality, or endorsing county must |
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provide an annual audited financial statement required by the |
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comptroller, if any, not later than the end of the fourth month |
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after the date the period covered by the financial statement ends. |
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(j) The comptroller shall provide an estimate not later than |
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three months before the date of a game of the total amount of tax |
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revenue that would be deposited in the Sporting Events trust fund |
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under this section in connection with that game, if the game were to |
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be held in this state at a site selected pursuant to an application |
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by a local organizing committee, endorsing municipality, or |
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endorsing county. The comptroller shall provide the estimate on |
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request to a local organizing committee, endorsing municipality, or |
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endorsing county. A local organizing committee, endorsing |
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municipality, or endorsing county may submit the comptroller's |
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estimate to a site selection organization. |
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(k) The comptroller may make a disbursement from the |
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Sporting Events trust fund on the prior approval of each |
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contributing endorsing municipality or endorsing county for a |
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purpose for which an endorsing municipality or endorsing county or |
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this state is obligated under a game support contract or event |
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support contract. A disbursement may not be made from the trust |
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fund that the comptroller determines would be used for the purpose |
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of soliciting the relocation of a professional sports franchise |
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located in this state. |
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(l) If a disbursement is made from the Sporting Events trust |
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fund under Subsection (k) of this section, the obligation shall be |
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satisfied proportionately from the state and local revenue in the |
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trust fund. |
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(m) On payment of all state, municipal, or county |
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obligations under a game support contract or event support contract |
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related to the location of any particular game in this state, the |
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comptroller shall remit to each endorsing entity, in proportion to |
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the amount contributed by the entity, any money remaining in the |
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Sporting Events trust fund. |
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(n) This section may not be construed as creating or |
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requiring a state guarantee of obligations imposed on this state or |
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an endorsing municipality or endorsing county under a game support |
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contract or other agreement relating to hosting one or more games in |
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this state. |
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(o) The comptroller may not undertake any of the |
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responsibilities or duties set forth in this section unless a |
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request is submitted by the municipality and the county in which the |
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game will be located. The request must be accompanied by |
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documentation from a site selection organization selecting the site |
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for the game. |
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SECTION 2. Subsection (a), Section 7, Chapter 1507, Acts of |
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the 76th Legislature, Regular Session, 1999 (Article 5190.14, |
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Vernon's Texas Civil Statutes), is amended to read as follows: |
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(a) The department shall review requests from a local |
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organizing committee, endorsing municipality, or endorsing county |
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that the department, on behalf of the state, enter into a games |
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support contract that is required by a site selection organization |
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in connection with the committee's, municipality's, or county's bid |
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to host any of the games. This section does not affect or apply to |
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an event support contract under Section 5A, [or Section] 5B, or 5C |
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of this Act to which the department is not a party. |
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SECTION 3. This Act takes effect September 1, 2007. |