81R3743 YDB-D

By: Ortiz, Jr. H.B. No. 398

A BILL TO BE ENTITLED

AN ACT

relating to special event trust funds used to promote major athletic, motor sports racing, and other special events in this state.

BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:

SECTION 1. Title 12, Local Government Code, is amended by adding Subtitle D, consisting of the provisions added to that subtitle by this Act, and a heading to that subtitle is added to read as follows:

SUBTITLE D. SPECIAL EVENT TRUST FUNDS

SECTION 2. Sections 1, 2, 3, 8, and 9, Chapter 1507 (S.B. 456), Acts of the 76th Legislature, Regular Session, 1999 (Article 5190.14, Vernon's Texas Civil Statutes), are transferred to Subtitle D, Title 12, Local Government Code, as added by this Act, designated as Chapter 521, and amended to read as follows:

CHAPTER 521. GENERAL PROVISIONS

Sec. 521.001 [1]. DEFINITIONS. In this subtitle [Act]:

(1) ["Department" means the Texas Department of Economic Development or its successor.

[(1-a)] "Endorsing county" means an endorsing county for purposes of Chapter 522, 523, or 524 [Section 5 or 5A of this Act].

(2) "Endorsing municipality" means an endorsing municipality for purposes of Chapter 522, 523, or 524 [Section 4, 5, 5A, or 5B of this Act].

(3) ["Games" means the 2011 Pan American Games or the 2012 Olympic Games.

[(3) "Games" means the Pan American Games, the 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.

[(4) "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.

[(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 endorsing municipality or county in connection with the selection of a site in this state for the location of a special event under this subtitle [any of the games].

(4) [(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 municipality or county will execute a joinder agreement in the event that the site selection organization selects a site in this state for special events under this subtitle [any of the games].

(5) [(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 special events under this subtitle [games]; or

(B) with the authorization of an endorsing municipality, endorsing county, or more than [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 special events under this subtitle [games].

(6) [(8)] "Site selection organization" means a site selection organization for purposes of Chapter 522, 523, or 524 [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), the International World Games Association, the Automobile Competition Committee for the United States (ACCUS) affiliated with the Federation Internationale de l'Automobile, the Champ Car organization, or the American Le Mans Series organization].

(7) "Special event" means a game or event as defined by Section 522.001, 523.001, or 524.001.

Sec. 521.002 [2]. PURPOSE. The purpose of this subtitle [Act] is to provide assurances required by a site selection organization sponsoring one or more special [major sporting or athletic] events and to provide financing for the costs of:

(1) applying or bidding for selection as the site of special [major sporting or athletic] events in this state;

(2) making the preparations necessary and desirable for the conduct of special [major sporting or athletic] events in this state, including the construction or renovation of facilities to the extent authorized by this subtitle [Act]; and

(3) conducting special [major sporting or athletic] events in this state.

Sec. 521.003 [3]. LEGISLATIVE FINDINGS. The conduct in this state of special [one or more major sporting or athletic] events will:

(1) provide invaluable public visibility throughout the nation or world for this state and the communities where the special [major sporting or athletic] events are held;

(2) encourage and provide major economic benefits to the communities where the special [major sporting or athletic] events 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.

Sec. 521.004. RULES. The comptroller may adopt rules as necessary to administer this subtitle.

Sec. 521.005 [8]. APPLICATION OF OPEN MEETINGS AND OPEN RECORDS LAWS. (a) A local organizing committee and its governing body are subject to Chapters 551 and 552, Government Code. For purposes of those chapters, the governing body of a local organizing committee is considered a governmental body as defined by those chapters. For purposes of Chapter 552, Government Code, the records and information of a local organizing committee are considered public records and public information.

(b) A final bid that is submitted by a local organizing committee to a site selection organization, or a draft of that bid, is excepted from required public disclosure under Chapter 552, Government Code, until the applicable site selection organization selects the site for the applicable special event [games].

[(c) Chapter 551, Government Code, does not apply to a meeting of a subcommittee of the governing body of a local organizing committee if:

[(1) the subcommittee consists of not more than five members;

[(2) the meeting is not held in a public building;

[(3) the subcommittee makes a tape recording of the proceedings of the meeting in compliance with Section 551.103, Government Code, and the local organizing committee preserves the tape recording for two years from the date the recording is made;

[(4) the subcommittee does not discuss or decide any financial matters during the meeting; and

[(5) any decision made by the subcommittee will not become effective without being reviewed and officially adopted by the governing body of the local organizing committee at a meeting held in compliance with Chapter 551, Government Code.

[(d) A tape recording made under Subsection (c) of this section is subject to required public disclosure in the manner prescribed by Chapter 552, Government Code, for a public record.]

Sec. 521.006 [9]. TAX EXEMPTIONS FOR LOCAL ORGANIZING COMMITTEE. [(a)] A local organizing committee that is exempt from paying federal income tax under Section 501(c), Internal Revenue Code of 1986, as amended, is exempt from:

(1) the sales, excise, and use taxes imposed under Chapter 151, Tax Code;

(2) taxes on the sale, rental, or use of a motor vehicle imposed under Chapter 152, Tax Code;

(3) the hotel occupancy tax imposed under Chapter 156, Tax Code; and

(4) the franchise tax imposed under Chapter 171, Tax Code.

[(b) The exemptions provided by Subsections (a)(1), (2), and (3) of this section take effect on the first day of the first month after the effective date of this Act. The exemption provided by Subsection (a)(4) of this section applies only to a tax imposed under Chapter 171, Tax Code, that becomes due on or after the effective date of this Act.]

SECTION 3. Section 5A, Chapter 1507 (S.B. 456), Acts of the 76th Legislature, Regular Session, 1999 (Article 5190.14, Vernon's Texas Civil Statutes), is transferred to Subtitle D, Title 12, Local Government Code, as added by this Act, redesignated as Chapter 522, and amended to read as follows:

CHAPTER 522. MAJOR SPORTING EVENTS TRUST FUND

Sec. 522.001 [5A]. DEFINITIONS [PAYMENT OF STATE AND MUNICIPAL OR COUNTY OBLIGATIONS; OTHER EVENTS TRUST FUND]. [(a)] In this chapter [section]:

(1) "Endorsing county" means a county that contains a site selected by a site selection organization for one or more games.

(2) "Endorsing municipality" means a municipality that contains a site selected by a site selection organization for one or more games.

(3) "Event support contract" means a joinder undertaking, joinder agreement, or a similar contract executed by an endorsing municipality or endorsing county and a site selection organization.

(4) "Game" means the Pan American Games, the Olympic Games, 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, the World Games, a national collegiate championship of an amateur sport sanctioned by the national governing body of the sport that is recognized by the United States Olympic Committee, or an Olympic activity, including a Junior or Senior activity, training program, or feeder program sanctioned by the United States Olympic Committee's Community Olympic Development Program. The term includes any events and activities related to or associated with a game [the games].

(5) "Site selection organization" means 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, the Federation Internationale de Football Association (FIFA), the International World Games Association, the United States Olympic Committee, or the national governing body of a sport that is recognized as such by the United States Olympic Committee.

Sec. 522.002. DETERMINATION OF INCREMENTAL INCREASE IN TAX RECEIPTS. [(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 six [three] months before the date of the game [or six months before the date of the game upon request of a local organizing committee, endorsing municipality, or endorsing county], the comptroller shall determine for the one-year [two-week] period that begins on the first day of the sixth calendar month before the calendar month in [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 Section 522.003 [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 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 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.

Sec. 522.003. MARKET AREA. (a) [(c)] For the purposes of Section 522.002 [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.

(b) The comptroller shall determine the geographic boundaries of each market area.

(c) 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.

Sec. 522.004. DEPOSIT OF TAX REVENUE. (a) [(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 major sporting events [Other Events] trust fund the amount of the municipality's or county's hotel occupancy tax revenue determined under Section 522.002(4) or (5) [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.

(b) The comptroller shall retain the amount of sales and use tax revenue and mixed beverage tax revenue determined under Section 522.002(2) or (3) [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 major sporting events 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.

(c) An endorsing municipality or an endorsing county may remit other local funds to the comptroller for deposit into the major sporting events trust fund in an amount not to exceed the total amount of tax revenue the municipality or county retains under Subsection (a) or requires the comptroller to send to the municipality or county under Subsection (b) to meet the obligations of the municipality or county.

(d) 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 one-year [two-week] period described by Section 522.002 [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 Section 522.002(2) or (3) [Subsection (b)(2) or (b)(3) of this section] has been retained.

(e) The comptroller shall deposit into the major sporting events trust fund a portion of the state tax revenue determined under Section 522.002(1) in an amount equal to 6.25 times the total amount of local sales and use tax revenue and mixed beverage tax revenue, local hotel occupancy tax revenue, or other local funds deposited into the trust fund under this section.

Sec. 522.005. MAJOR SPORTING EVENTS TRUST FUND. (a) The major sporting events [Other Events] trust fund is established outside the state treasury and is held in trust by the comptroller for administration of this chapter [Act].

(b) Money in the trust fund may be disbursed by the comptroller without appropriation only as provided by this chapter [section].

Sec. 522.006. PLEDGE OF SURCHARGES FROM USER FEES. [(e)] In addition to the [tax] revenue deposited in the major sporting events [Other Events] trust fund under Section 522.004 [Subsection (d) of this section], an endorsing municipality or endorsing county may guarantee its obligations under an event [a game] support contract and this chapter [section] by pledging surcharges from user fees, including parking or ticket fees, charged in connection with the game.

Sec. 522.007. ISSUANCE OF NOTES AUTHORIZED. (a) [(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 an [a game 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.

(b) 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 major sporting events [Other Events] trust fund or surcharges from user fees, including parking or ticket fees, charged in connection with the game.

(c) Any note issued must mature not later than seven years from its date of issuance.

Sec. 522.008. PAYMENT OF NOTES AND OBLIGATIONS. [(h)] The money [funds] in the major sporting events [Other Events] trust fund may be used to:

(1) pay the principal of and interest on notes issued by an endorsing municipality or endorsing county under Section 522.007; [Subsection (g) of this section] and

(2) [to] fulfill obligations of the state or an endorsing municipality or endorsing county to a site selection organization under an [a game 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 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.

Sec. 522.009. INFORMATION AND AUDIT. (a) [(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 chapter [section], including:

(1) annual audited statements of any financial records required by a site selection organization; and

(2) 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.

(b) 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.

Sec. 522.010. COMPTROLLER ESTIMATE. (a) [(j)] The comptroller shall provide an estimate not later than six [three] months before the date of a game or nine [six] months before the date of the game upon request of a local organizing committee, endorsing municipality, or endorsing county of the total amount of tax revenue that would be deposited in the major sporting events [Other Events] trust fund under this chapter [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.

(b) The comptroller shall provide the estimate on request to a local organizing committee, endorsing municipality, or endorsing county.

(c) A local organizing committee, endorsing municipality, or endorsing county may submit the comptroller's estimate to a site selection organization.

Sec. 522.011. DISTRIBUTIONS FROM FUND. (a) [(k)] The comptroller may make a disbursement from the major sporting events [Other Events] 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 an [a game support contract or] event support contract.

(b) 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.

(c) A [(l) If a] disbursement [is made] from the major sporting events [Other Events] trust fund under Subsection (a) [(k), the obligation] shall be made [satisfied] proportionately from the state and local revenue in the trust fund.

Sec. 522.012. REMITTANCE OF MONEY REMAINING IN FUND. [(m)] On payment of all state, municipal, or county obligations under an [a game support contract or] event 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.

Sec. 522.013. NO STATE GUARANTEE OF OBLIGATIONS. [(n) This subsection applies only to a bid for or hosting of the 2004 Super Bowl. Notwithstanding any provision in this section to the contrary, the comptroller may not retain and the endorsing municipality or endorsing county may not remit to the comptroller, as applicable, the local tax revenues described in Subsection (b)(2), (b)(3), (b)(4), or (b)(5) of this section. For purposes of Subsection (f) of this section, 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 that the comptroller determines pursuant to Subsection (b) of this section represents the incremental increase in receipts to an endorsing municipality or endorsing county.

[(o)] This chapter [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 an event [a game] support contract or other agreement relating to hosting one or more games in this state.

Sec. 522.014. REQUEST REQUIRED. (a) [(p)] The comptroller may not undertake any of the responsibilities or duties set forth in this chapter [section] unless a request is submitted by the municipality and the county in which the game will be located.

(b) The request must be accompanied by documentation from a site selection organization selecting the site for the game.

SECTION 4. Section 5B, Chapter 1507 (S.B. 456), Acts of the 76th Legislature, Regular Session, 1999 (Article 5190.14, Vernon's Texas Civil Statutes), is transferred to Subtitle D, Title 12, Local Government Code, as added by this Act, redesignated as Chapter 523, and amended to read as follows:

CHAPTER 523. MOTOR SPORTS RACING TRUST FUND

Sec. 523.001 [5B]. DEFINITIONS [GUARANTEE OF STATE AND MUNICIPAL OR COUNTY OBLIGATIONS; MOTOR SPORTS RACING TRUST FUND]. [(a)] In this chapter [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 sanctioned by the Automobile Competition Committee for the United States (ACCUS) and held at a temporary event venue. The term includes any events and activities held, sponsored, or endorsed by the site selection organization in conjunction with the racing event.

Sec. 523.002. DETERMINATION OF INCREMENTAL INCREASE IN TAX RECEIPTS. [(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 Section 523.003 [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.

Sec. 523.003. MARKET AREA. (a) [(c)] For the purposes of Section 523.002 [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.

(b) The comptroller shall determine the geographic boundaries of each market area.

(c) 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.

Sec. 523.004. DEPOSIT OF TAX REVENUE. (a) [(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 motor sports racing [Motor Sports Racing] trust fund for the particular event the amount of the municipality's or county's hotel occupancy tax revenue determined under Section 523.002(4) or (5) [Subsection (b)(4) or (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.

(b) The comptroller shall retain the amount of sales and use tax revenue and mixed beverage tax revenue determined under Section 523.002(2) or (3) [Subsection (b)(2) or (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 motor sports racing 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.

(c) An endorsing municipality or an endorsing county may remit other local funds to the comptroller for deposit into the motor sports racing trust fund in an amount not to exceed the total amount of tax revenue the municipality or county retains under Subsection (a) or requires the comptroller to send to the municipality or county under Subsection (b) to meet the obligations of the municipality or county.

(d) 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 Section 523.002 [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 Section 523.002(2) or (3) [Subsection (b)(2) or (3) of this section] has been retained.

(e) The comptroller shall deposit into the motor sports racing trust fund a portion of the state tax revenue determined under Section 523.002(1) in an amount equal to 6.25 times the total amount of local sales and use tax revenue and mixed beverage tax revenue, local hotel occupancy tax revenue, or other local funds deposited into the trust fund under this section.

Sec. 523.005. MOTOR SPORTS RACING TRUST FUND. (a) The motor sports racing [Motor Sports Racing] trust fund is established outside the state treasury and is held in trust by the comptroller for administration of this chapter [section].

(b) Money in the trust fund may be disbursed by the comptroller without appropriation only as provided by this chapter [section].

Sec. 523.006. PLEDGE OF SURCHARGES FROM USER FEES. [(e)] In addition to the [tax] revenue deposited in the motor sports racing [Motor Sports Racing] trust fund under Section 523.004 [Subsection (d) of this section], an endorsing municipality or endorsing county may guarantee its obligations under an [a motor sports racing] event support contract and this chapter [section] by pledging surcharges from user fees, including parking or ticket fees, charged in connection with the racing event.

Sec. 523.007. ISSUANCE OF NOTES AUTHORIZED. (a) [(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 an [a motor sports racing event support contract or] event support contract to improve, 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.

(b) 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 motor sports racing [Motor Sports Racing] trust fund or surcharges from user fees, including parking or ticket fees, charged in connection with the racing event.

(c) Any note issued must mature not later than seven years from its date of issuance.

Sec. 523.008. PAYMENT OF NOTES AND OBLIGATIONS. [(h)] The money [funds] in the motor sports racing [Motor Sports Racing] trust fund may be used to:

(1) pay the principal of and interest on notes issued by an endorsing municipality or endorsing county under Section 523.007; [Subsection (g) of this section] and

(2) [to] fulfill obligations of the state or an endorsing municipality or endorsing county to a site selection organization under an [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 temporary improvements or temporary renovations to existing facilities or other facilities specific to the event.

Sec. 523.009. INFORMATION AND AUDIT. (a) [(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 chapter [section], including:

(1) annual audited statements of any financial records required by a site selection organization; and

(2) 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.

(b) 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.

Sec. 523.010. COMPTROLLER ESTIMATE. (a) [(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 motor sports racing [Motor Sports Racing] trust fund under this chapter [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.

(b) The comptroller shall provide the estimate on request to a local organizing committee, endorsing municipality, or endorsing county.

(c) A local organizing committee, endorsing municipality, or endorsing county may submit the comptroller's estimate to a site selection organization.

Sec. 523.011. DISTRIBUTIONS FROM FUND. (a) [(k)] The comptroller may make a disbursement from the motor sports racing [Motor Sports Racing] 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 an [a motor sports racing event support contract or] event support contract.

(b) 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.

(c) A [(l) If a] disbursement [is made] from the motor sports racing [Motor Sports Racing] trust fund under Subsection (a) [(k) of this section, the obligation] shall be made [satisfied] proportionately from the state and local revenue in the trust fund.

Sec. 523.012. REMITTANCE OF MONEY REMAINING IN FUND. [(m)] On payment of all state, municipal, or county obligations under an [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.

Sec. 523.013. NO STATE GUARANTEE OF OBLIGATIONS. [(n)] This chapter [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 an [a motor sports racing] event support contract or other agreement relating to hosting one or more racing events in this state.

Sec. 523.014. REQUEST REQUIRED. (a) [(o)] The comptroller may not undertake any of the responsibilities or duties set forth in this chapter [section] unless a request is submitted by the municipality and the county in which the motor sports racing event will be held.

(b) 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 5C, Chapter 1507 (S.B. 456), Acts of the 76th Legislature, Regular Session, 1999 (Article 5190.14, Vernon's Texas Civil Statutes), is transferred to Subtitle D, Title 12, Local Government Code, as added by this Act, redesignated as Chapter 524, and amended to read as follows:

CHAPTER 524. SPECIAL EVENTS TRUST FUND

Sec. 524.001 [5C]. DEFINITIONS [SPORTING EVENT TRUST FUND FOR CERTAIN MUNICIPALITIES AND COUNTIES]. [(a)] In this chapter [section]:

(1) "Endorsing county" means a county [with a population of 800,000 or more] that contains a site selected by a site selection organization for one or more events.

(2) "Endorsing municipality" means a municipality [with a population of 500,000 or more] that contains a site selected by a site selection organization for one or more events.

(3) "Event" means a National Collegiate Athletic Association regional tournament or playoff game, a Senior Olympic activity, including a training program or feeder program sanctioned by the National Senior Games Association, [or] a major sporting or athletic event, a special event that undergoes a nationwide site selection search and that benefits the state's economy, or a related series of events sanctioned by a site selection organization. The term includes any activities related to or associated with the event.

(4) "Event support contract" means a joinder undertaking, a joinder agreement, or a similar contract executed by an endorsing municipality or endorsing county and a site selection organization.

(5) "Site selection organization" means the United States Olympic Committee (USOC), United States Youth Soccer Association (USYSA), United States Bowling Congress (USBC), Amateur Softball Association of America (ASA), National Senior Games Association (NSGA), American Youth Football and Cheer (AYF), United States Lacrosse (USL), National Collegiate Athletic Association (NCAA), United States Tennis Association (USTA), Special Olympics, National Association for Stock Car Auto Racing (NASCAR), Breeders' Cup, or another major nationally or internationally recognized sports or special events organization.

Sec. 524.002. DETERMINATION OF INCREMENTAL INCREASE IN TAX RECEIPTS. [(b)] If a site selection organization, after considering through a highly competitive process one or more sites that are not located in this state, selects a site for an 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 event, the comptroller shall determine for the 30-day period that ends at the end of the day after the date on which the event will be held or, if the event occurs on more than one day, after the last date on which the event will be held, in accordance with procedures developed by the comptroller:

(1) the incremental increase in the receipts to this 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 Section 524.003 [Subsection (c) of this section], that is directly attributable, as determined by the comptroller, to the preparation for and presentation of the event and related activities;

(2) the incremental increase in the receipts collected by this 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 event and related activities;

(3) the incremental increase in the receipts collected by this 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 event and related activities;

(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 event and related activities; 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 event and related activities.

Sec. 524.003. MARKET AREA. (a) [(c)] For the purposes of Section 524.002 [Subsection (b)(1) of this section], the comptroller shall designate as a market area for the 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 event and related activities, including areas likely to provide venues, accommodations, and services in connection with the event based on the proposal provided by the local organizing committee to the comptroller.

(b) The comptroller shall determine the geographic boundaries of each market area.

(c) An endorsing municipality or endorsing county that has been selected as the site for the event must be included in a market area for the event.

Sec. 524.004. DEPOSIT OF TAX REVENUE. (a) [(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 special [sporting] events trust fund the amount of the municipality's or county's hotel occupancy tax revenue determined under Section 524.002(4) or (5) [Subsection (b)(4) or (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.

(b) The comptroller shall retain the amount of sales and use tax revenue and mixed beverage tax revenue determined under Section 524.002(2) or (3) [Subsection (b)(2) or (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 special events 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.

(c) An endorsing municipality or an endorsing county may remit other local funds to the comptroller for deposit into the special events trust fund in an amount not to exceed the total amount of tax revenue the municipality or county retains under Subsection (a) or requires the comptroller to send to the municipality or county under Subsection (b) to meet the obligations of the municipality or county.

(d) 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 period described by Section 524.002 [Subsection (b) of this section] and shall discontinue retaining the local tax revenues under this section [subsection] when the amount of the applicable tax revenue determined under Section 524.002(2) or (3) [Subsection (b)(2) or (3) of this section] has been retained.

(e) The comptroller shall deposit into the special events trust fund a portion of the state tax revenue determined under Section 524.002(1) in an amount equal to 6.25 times the total amount of local sales and use tax revenue and mixed beverage tax revenue, local hotel occupancy tax revenue, or other local funds deposited into the trust fund under this section.

Sec. 524.005. SPECIAL EVENTS TRUST FUND. (a) The special [sporting] events trust fund is established outside the state treasury and is held in trust by the comptroller for administration of this chapter [section].

(b) Money in the trust fund may be disbursed by the comptroller without appropriation only as provided by this chapter [section].

Sec. 524.006. PLEDGE OF SURCHARGES FROM USER FEES. [(e)] In addition to the [tax] revenue deposited in the special [sporting] events trust fund under Section 524.004 [Subsection (d) of this section], an endorsing municipality or endorsing county may guarantee its obligations under an event support contract and this chapter [section] by pledging surcharges from user fees, including parking or ticket fees, charged in connection with the event.

Sec. 524.007. ISSUANCE OF NOTES AUTHORIZED. (a) [(f) The comptroller shall deposit into the sporting events trust fund 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 an 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.

(b) 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 special [sporting] events trust fund or surcharges from user fees, including parking or ticket fees, charged in connection with the event.

(c) Any note issued must mature not later than seven years from its date of issuance.

Sec. 524.008. PAYMENT OF NOTES AND OBLIGATIONS. [(h)] The money in the special [sporting] events trust fund may be used to:

(1) pay the principal of and interest on notes issued by an endorsing municipality or endorsing county under Section 524.007; [Subsection (g) of this section] and

(2) [to] fulfill obligations of this state or an endorsing municipality or endorsing county to a site selection organization under an event support contract, which obligations may include the payment of costs relating to the preparations necessary or desirable for the conduct of the event and the payment of costs of conducting the event, including improvements or renovations to existing facilities or other facilities and costs of acquisition or construction of new facilities or other facilities.

Sec. 524.009. INFORMATION AND AUDIT. (a) [(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 chapter [section], including:

(1) annual audited statements of any financial records required by a site selection organization; and

(2) data obtained by the local organizing committee, an endorsing municipality, or an endorsing county relating to attendance at the event and to the economic impact of the event.

(b) 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.

Sec. 524.010. COMPTROLLER ESTIMATE. (a) Except as provided by Subsection (b), the [(j) The] comptroller shall provide an estimate not later than three months before the date of an event of the total amount of tax revenue that would be deposited in the special [sporting] events trust fund under this chapter [section] in connection with that event, if the 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.

(b) If the comptroller determines circumstances require providing an estimate or modified estimate at a time other than the time provided by Subsection (a), the comptroller may provide the estimate or a modified estimate at any time during the three months before the date of the event.

(c) The comptroller shall provide the estimate on request to a local organizing committee, endorsing municipality, or endorsing county.

(d) A local organizing committee, endorsing municipality, or endorsing county may submit the comptroller's estimate to a site selection organization.

Sec. 524.011. DISBURSEMENTS FROM FUND. (a) [(k)] The comptroller may make a disbursement from the special [sporting] events 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 this state is obligated under an event support contract.

(b) 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.

(c) A [(l) If a] disbursement [is made] from the special [sporting] events trust fund under Subsection (a) [(k) of this section, the obligation] shall be made [satisfied] proportionately from the state and local revenue in the trust fund.

Sec. 524.012. REMITTANCE OF MONEY REMAINING IN FUND. [(m)] On payment of all state, municipal, or county obligations under an event support contract related to the location of any particular event in this state, the comptroller shall remit to each endorsing entity, in proportion to the amount contributed by the entity, any money remaining in the special [sporting] events trust fund.

Sec. 524.013. NO STATE GUARANTEE FOR OBLIGATIONS. [(n)] This chapter [section] may not be construed as creating or requiring a state guarantee of obligations imposed on this state or an endorsing municipality or endorsing county under an event support contract or other agreement relating to hosting one or more events in this state.

Sec. 524.014. REQUEST REQUIRED. (a) [(o)] The comptroller may not undertake any of the responsibilities or duties set forth in this chapter [section] unless a request is submitted by the municipality or the county in which the event will be located.

(b) The request must be accompanied by documentation from a site selection organization selecting the site for the event.

SECTION 6. The following are repealed:

(1) Chapter 398, Local Government Code; and

(2) Sections 4, 5, 6, 7, 10, and 11, Chapter 1507 (S.B. 456), Acts of the 76th Legislature, Regular Session, 1999 (Article 5190.14, Vernon's Texas Civil Statutes).

SECTION 7. Notwithstanding Section 6 of this Act, the repeal of Chapter 398, Local Government Code, does not apply to a special event plan approved under that chapter before the effective date of this Act, and Chapter 398 is continued in effect for purposes of that special event until all obligations payable for that special event under that chapter are satisfied.

SECTION 8. (a) The change in law made by this Act applies only to an offense committed on or after the effective date of this Act. For purposes of this section, an offense was committed before the effective date of this Act if any element of the offense occurred before that date.

(b) An offense committed before the effective date of this Act is covered by the law in effect when the offense was committed, and the former law is continued in effect for that purpose.

SECTION 9. This Act takes effect September 1, 2009.