By: Watson S.B. No. 1800

A BILL TO BE ENTITLED

AN ACT

relating to the establishment and duties of an event oversight committee for an event eligible to receive funding through an events trust fund for certain municipalities and counties.

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

SECTION 1. Subsection (a), Section 5C, Chapter 1507 (S.B. 456), Acts of the 76th Legislature, Regular Session, 1999 (Article 5190.14, Vernon's Texas Civil Statutes), is amended by adding Subdivision (3-a) to read as follows:

(3-a) "Event oversight committee" means a committee established by the comptroller under Subsection (a-2) of this section.

SECTION 2. Section 5C, Chapter 1507 (S.B. 456), Acts of the 76th Legislature, Regular Session, 1999 (Article 5190.14, Vernon's Texas Civil Statutes), is amended by adding Subsection (a-2) and amending Subsections (b), (c), (c-1), (h), (i), (j), (k), (m), (o), and (q) to read as follows:

(a-2) If a site selection organization selects a site for an event in this state and a request is submitted in accordance with Subsection (o) of this section, the comptroller shall establish for that event an event oversight committee composed of:

(1) the comptroller;

(2) the state auditor; and

(3) for each endorsing county and endorsing municipality for the event, one representative who has significant experience in auditing procedures or fiscal matters relevant to the event.

(b) If a site selection organization 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 event oversight committee [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 Subsection (c) of this section, that is directly attributable, as determined by the event oversight committee [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 event oversight committee [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 event oversight committee [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 event oversight committee [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 event oversight committee [comptroller], to the preparation for and presentation of the event and related activities.

(c) For the purposes of Subsection (b)(1) of this section, the event oversight committee [comptroller] shall designate as a market area for the event each area in which the event oversight committee [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 event oversight committee [comptroller]. The event oversight committee [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 event must be included in a market area for the event.

(c-1) The event oversight committee [comptroller] shall base the determination specified by Subsection (b) of this section on information submitted by the local organizing committee, endorsing municipality, or endorsing county, and must make the determination not later than the 30th day after the date the event oversight committee [comptroller] receives the information.

(h) The money in the Events 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 this state or an endorsing municipality or endorsing county to a site selection organization under an event support contract. Subject to Subsection (k) of this section, the[, 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 necessary improvements or renovations to existing facilities or other facilities and costs of acquisition or construction of new facilities or other facilities necessary for the event.

(i) A local organizing committee, endorsing municipality, or endorsing county shall provide information required by the comptroller or event oversight committee to enable the comptroller and event oversight committee to fulfill [the comptroller's] duties imposed 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 event and to the economic impact of the event. A local organizing committee, endorsing municipality, or endorsing county must provide an annual audited financial statement required by the comptroller or event oversight committee, if any, not later than the end of the fourth month after the date the period covered by the financial statement ends. After the conclusion of an event and on the [comptroller's] request of the comptroller or another member of the event oversight committee, a local organizing committee, endorsing municipality, or endorsing county must provide information relating to the event, such as attendance figures, financial information, or other public information held by the local organizing committee, endorsing municipality, or endorsing county that the comptroller or other member of the event oversight committee considers necessary.

(j) The event oversight committee [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 Events trust fund under this 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. The event oversight committee [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 event oversight committee's [comptroller's] estimate to a site selection organization.

(k) The comptroller may make a disbursement from the Events trust fund on the prior approval of each contributing endorsing municipality or endorsing county for a purpose for which a local organizing committee, an endorsing municipality, or an endorsing county or this state is obligated under an event support contract, provided that the purpose for which the obligation was incurred is strictly necessary for the conduct of the event. If an obligation is incurred under an event support contract to make a structural improvement to the site or to add a fixture to the site for purposes of an event and that improvement or fixture is expected to derive most of its value in subsequent uses of the site for future events, a disbursement from the trust fund made for purposes of that obligation is limited to five percent of the cost of the improvement or fixture and the remainder of the obligation is not eligible for a disbursement from the trust fund. 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.

(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, the lesser of:

(1) the amount the endorsing entity certifies to the comptroller that the endorsing entity expended on the event; or

(2) the remainder of the [any] money [remaining] in the Events trust fund.

(o) The comptroller may not undertake any of the responsibilities or duties set forth in this section unless:

(1) a request is submitted by the municipality or the county in which the event will be located;

(2) the event meets all the requirements for funding under this section, including Subsection (a-1) of this section;

(3) the event oversight committee members unanimously agree on the amounts of incremental increase in tax receipts determined under Subsection (b) of this section; and

(4) the request is[. The request must be] accompanied by documentation from a site selection organization selecting the site for the event.

(q) In determining the amount of state revenue available under Subsection (b)(1) of this section, the event oversight committee [comptroller] may consider whether:

(1) the event has been held in this state on previous occasions; and

(2) changes to the character of the event could affect the incremental increase in receipts collected and remitted to the state by an endorsing county or endorsing municipality under that subsection.

SECTION 3. The changes in law made by this Act apply only to a request submitted to the comptroller by an endorsing municipality or endorsing county under Section 5C, Chapter 1507 (S.B. 456), Acts of the 76th Legislature, Regular Session, 1999 (Article 5190.14, Vernon's Texas Civil Statutes), on or after the effective date of this Act. A request submitted under Section 5C before that date is governed by the law in effect on the date the request is submitted, and that law is continued in effect for that purpose.

SECTION 4. This Act takes effect immediately if it receives a vote of two-thirds of all the members elected to each house, as provided by Section 39, Article III, Texas Constitution. If this Act does not receive the vote necessary for immediate effect, this Act takes effect September 1, 2013.