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SENATE ENGROSSED
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HOUSE COMMITTEE
SUBSTITUTE
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SECTION 1. The heading to
Section 4, Chapter 1507 (S.B. 456), Acts of the 76th Legislature, Regular
Session, 1999 (Article 5190.14, Vernon's Texas Civil Statutes), is amended
to read as follows:
Sec. 4. GUARANTEE OF STATE
AND MUNICIPAL OBLIGATIONS; PAN AMERICAN GAMES REIMBURSEMENT [TRUST]
FUND.
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No
equivalent provision.
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SECTION 2. Sections 4(b),
(c), (d), (f), (g), (h), (j), (k), and (m), Chapter 1507 (S.B. 456), Acts
of the 76th Legislature, Regular Session, 1999 (Article 5190.14, Vernon's
Texas Civil Statutes), are amended to read as follows:
(b) If a site selection
organization selects a site for the games in this state pursuant to an
application by a local organizing committee acting on behalf of an
endorsing municipality, after the first occurrence of a measurable economic
impact in this state as a result of the preparation for the games, as
determined by the department [comptroller], but in no event
later than one year before the scheduled opening event of the games, the department
[comptroller] shall determine for each subsequent calendar quarter,
in accordance with procedures developed by the department [comptroller]:
(1) the incremental increase
in the receipts to the state from the 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 department [comptroller],
to the preparation for and presentation of the games and related events;
(2) the incremental increase
in the receipts collected by the state on behalf of the endorsing
municipality from the sales and use tax imposed by the endorsing
municipality under Section 321.101(a), Tax Code, that is directly
attributable, as determined by the department [comptroller],
to the preparation for and presentation of the games and related events;
and
(3) the incremental increase
in the receipts collected by the endorsing municipality from the
municipality's hotel occupancy tax imposed under Chapter 351, Tax Code,
that is directly attributable, as determined by the department [comptroller],
to the preparation for and presentation of the games and related events.
(c) For the purposes of
Subsection (b)(1) of this section, the department [comptroller]
shall designate as a market area for the games each area in which the department
[comptroller] determines there is a reasonable likelihood of
measurable economic impact directly attributable to the preparation for and
presentation of the games and related events, including areas likely to
provide venues, accommodations, and services in connection with the games
based on the proposal provided by the local organizing committee under
Section 7 of this Act. The department [comptroller] shall
determine the geographic boundaries of each market area. The endorsing
municipality that has been selected as the site for the games must be
included in a market area for the games.
(d) The comptroller, at
the direction of the department, shall retain, for the purpose of
guaranteeing the joint obligations of the state and the endorsing
municipality under a games support contract and this Act, the amount of
municipal sales and use tax revenue determined under Subsection (b)(2) of
this section from the amounts otherwise required to be sent to the
municipality under Section 321.502, Tax Code, beginning with the first
distribution of that tax revenue that occurs after the date the department
[comptroller] makes the determination of the amount of municipal
sales and use tax revenue under Subsection (b)(2). The comptroller shall
discontinue retaining municipal sales and use tax revenue under this
subsection on the earlier of:
(1) the end of the third
calendar month following the month in which the closing event of the games
occurs; or
(2) the date the amount of
municipal sales and use tax revenue and municipal hotel occupancy tax
revenue in the Pan American Games reimbursement [trust] fund
equals 14 percent of the maximum amount of state and municipal tax revenue
that may be transferred to or deposited in the [trust] fund
under Subsection (m) of this section.
(f) Subject to Subsection
(m) of this section, the comptroller, at the direction of the
department, shall deposit into a [trust] fund designated as the
Pan American Games reimbursement [trust] fund the amount of
municipal sales and use tax revenue retained under Subsection (d) of this
section and, at the same time, shall transfer to the fund a portion
of the state tax revenue determined by the department under Subsection
(b)(1) of this section in an amount equal to 6.25 times the amount of that
municipal sales and use tax revenue. Subject to Subsection (m) of this
section, the endorsing municipality shall deposit into the [trust]
fund the amount of the endorsing municipality's hotel occupancy tax revenue
determined by the department under Subsection (b)(3) of this
section. The endorsing municipality shall deposit that hotel occupancy tax
revenue into the [trust] fund at least quarterly. When the
endorsing municipality makes a deposit of its hotel occupancy tax revenue,
the comptroller, at the direction of the department, shall transfer
to the fund [deposit] at the same time 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 that municipal hotel occupancy tax
revenue. The Pan American Games reimbursement [trust] fund
is established outside the treasury but is held in trust by the comptroller
for the administration of this Act. Money in the [trust] fund may
be spent by the department without appropriation only as provided by this
Act. The comptroller shall discontinue transferring [depositing]
into the [trust] fund any state tax revenue determined by the
department under Subsection (b)(1) of this section on the earlier of:
(1) the end of the third
calendar month following the month in which the closing event of the games
occurs; or
(2) the date on which the
amount of state revenue in the Pan American Games reimbursement [trust]
fund equals 86 percent of the maximum amount of state and municipal tax
revenue that may be transferred to or deposited in the [trust]
fund under Subsection (m) of this section.
(g) The department may use
the money [funds] in the Pan American Games reimbursement
[trust] fund only to fulfill joint obligations of the state and the
endorsing municipality to a site selection organization under a games
support contract or any other agreement providing assurances from the
department or the endorsing municipality to a site selection organization.
(h) A local organizing
committee shall provide information required by the department [comptroller]
to enable the department [comptroller] to fulfill the department's
[comptroller's] duties under this Act, including annual audited
statements of the local organizing committee's financial records required
by a site selection organization and data obtained by the local organizing
committee relating to attendance at the games and to the economic impact of
the games. A local organizing committee must provide an annual audited
financial statement required by the department [comptroller]
not later than the end of the fourth month after the date the period
covered by the financial statement ends.
(j) The department may not
make a disbursement from the Pan American Games reimbursement [trust]
fund unless the department [comptroller] certifies that the
disbursement is for a purpose for which the state and the endorsing
municipality are jointly obligated under a games support contract or other
agreement described by Subsection (g) of this section.
(k) If the department
[comptroller] certifies under Subsection (j) of this section that a
disbursement may be made from the Pan American Games reimbursement [trust]
fund, the obligation shall be satisfied first out of municipal revenue
deposited in the [trust] fund and any interest earned on that
municipal revenue. If the municipal revenue is not sufficient to satisfy
the entire deficit, state revenue transferred [deposited]
into the [trust] fund and any interest earned on that state revenue
shall be used to satisfy the portion of the deficit not covered by the
municipal revenue.
(m) In no event may:
(1) the total amount of
state and municipal tax revenue transferred to or deposited in the
Pan American Games reimbursement [trust] fund exceed $20
million; or
(2) the joint liability of
the state and the endorsing municipality under a joinder agreement and any
other games support contracts entered into pursuant to this Act exceed the
lesser of:
(A) $20 million; or
(B) the total amount of
revenue transferred to or deposited in the Pan American Games reimbursement
[trust] fund and interest earned on the fund.
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No
equivalent provision.
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SECTION 3. Sections 4(i) and
(l), Chapter 1507 (S.B. 456), Acts of the 76th Legislature, Regular
Session, 1999 (Article 5190.14, Vernon's Texas Civil Statutes), as amended
by Chapters 579 (H.B. 1675) and 814 (S.B. 275), Acts of the 78th
Legislature, Regular Session, 2003, are reenacted and amended to read as
follows:
(i) The department [comptroller] shall provide an estimate not later
than September [December] 1[, 2003,] of the year that is
eight years before the year in which the games would be held in this state
of the total amount of state and municipal tax revenue that would be transferred to or deposited in the Pan
American Games reimbursement [trust] fund before January 1[,
2012,] of the year following the year in which the games would be held,
if the games were to be held in this state at a site selected pursuant to
an application by a local organizing committee. The department [comptroller] shall provide the estimate on request
to a local organizing committee. A local organizing committee may submit the
department's [comptroller's] estimate to a site
selection organization.
(l) On January 1[, 2013,]
of the second year following the year in which the games are held in this
state, the comptroller, at the direction
of the department, shall transfer to the general revenue fund
any money remaining in the Pan American Games reimbursement [trust]
fund, not to exceed the amount of state revenue remaining in the [trust] fund, plus any interest
earned on that state revenue. The comptroller shall remit to the endorsing
municipality any money remaining in the [trust]
fund after the required amount is transferred to the general revenue fund.
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SECTION 1. Sections 4(i) and
(l), Chapter 1507 (S.B. 456), Acts of the 76th Legislature, Regular
Session, 1999 (Article 5190.14, Vernon's Texas Civil Statutes), as amended
by Chapters 579 (H.B. 1675) and 814 (S.B. 275), Acts of the 78th
Legislature, Regular Session, 2003, are reenacted and amended to read as
follows:
(i) The comptroller shall provide an estimate not
later than September [December] 1 [, 2003,] of the year that
is eight years before the year in which the games would be held in this
state of the total amount of state and municipal tax revenue that would be
deposited in the Pan American Games trust
fund before January 1 [, 2012,] of the year following the year in
which the games would be held, if the games were to be held in this state
at a site selected pursuant to an application by a local organizing
committee. The comptroller shall
provide the estimate on request to a local organizing committee. A local
organizing committee may submit the comptroller's
estimate to a site selection organization.
(l) On January 1 [, 2013,]
of the second year following the year in which the games are held in this
state, the comptroller shall transfer to the general revenue fund any money
remaining in the Pan American Games trust
fund, not to exceed the amount of state revenue remaining in the trust fund, plus any interest earned on
that state revenue. The comptroller shall remit to the endorsing
municipality any money remaining in the trust
fund after the required amount is transferred to the general revenue fund.
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SECTION 4. The heading to
Section 5, Chapter 1507 (S.B. 456), Acts of the 76th Legislature, Regular
Session, 1999 (Article 5190.14, Vernon's Texas Civil Statutes), is amended
to read as follows:
Sec. 5. GUARANTEE OF STATE
AND MUNICIPAL OBLIGATIONS; OLYMPIC GAMES REIMBURSEMENT [TRUST]
FUND.
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No
equivalent provision.
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SECTION 5. Sections 5(b),
(c), (d), (f), (g), (h), (i), (j), (k), (l), and (m), Chapter 1507 (S.B.
456), Acts of the 76th Legislature, Regular Session, 1999 (Article 5190.14,
Vernon's Texas Civil Statutes), are amended to read as follows:
(b) If a site selection
organization selects a site for the games in this state pursuant to an
application by a local organizing committee, after the first occurrence of
a measurable economic impact in this state as a result of the preparation
for the games, as determined by the department [comptroller],
but in no event later than one year before the scheduled opening event of the
games, the department [comptroller] shall determine for each
subsequent calendar quarter, in accordance with procedures developed by the
department [comptroller]:
(1) the incremental increase
in the receipts to the state from the 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 department [comptroller],
to the preparation for and presentation of the games and related events;
(2) the incremental increase
in the receipts collected by the state on behalf of each endorsing
municipality from the sales and use tax imposed by the endorsing
municipality under Section 321.101(a), Tax Code, and the mixed beverage tax
revenue to be received by the endorsing municipality under Section
183.051(b), Tax Code, that is directly attributable, as determined by the department
[comptroller], to the preparation for and presentation of the games
and related events;
(3) the incremental increase
in the receipts collected by the state on behalf of each endorsing county
from the sales and use tax imposed by the county under Section 323.101(a),
Tax Code, and the mixed beverage tax revenue to be received by the
endorsing county under Section 183.051(b), Tax Code, that is directly
attributable, as determined by the department [comptroller],
to the preparation for and presentation of the games and related events;
(4) the incremental increase
in the receipts collected by each endorsing municipality from the hotel
occupancy tax imposed under Chapter 351, Tax Code, that is directly
attributable, as determined by the department [comptroller],
to the preparation for and presentation of the games and related events;
and
(5) the incremental increase
in the receipts collected by each endorsing county from the hotel occupancy
tax imposed under Chapter 352, Tax Code, that is directly attributable, as
determined by the department [comptroller], to the
preparation for and presentation of the games and related events.
(c) For the purposes of
Subsection (b)(1) of this section, the department [comptroller]
shall designate as a market area for the games each area in which the department
[comptroller] determines there is a reasonable likelihood of
measurable economic impact directly attributable to the preparation for and
presentation of the games and related events, including areas likely to
provide venues, accommodations, and services in connection with the games
based on the proposal provided by the local organizing committee under
Section 7 of this Act. The department [comptroller] shall
determine the geographic boundaries of each market area. Each endorsing
municipality or endorsing county that has been selected as the site for the
games must be included in a market area for the games.
(d) Subject to Section 6 of
this Act, the comptroller, at the direction of the department, shall
retain, for the purpose of guaranteeing the joint obligations of the state
and an endorsing municipality or endorsing county under a games support
contract and this Act, the amount of sales and use tax revenue and mixed
beverage tax revenue determined under Subsection (b)(2) or (b)(3) of this
section from the amounts otherwise required to be sent to the municipality
under Section 183.051(b) or 321.502, Tax Code, or to the county under
Section 183.051(b) or 323.502, Tax Code, beginning with the first
distribution of that tax revenue that occurs after the date the department
[comptroller] makes the determination of the amount of sales and use
tax revenue and mixed beverage tax revenue under Subsection (b)(2) or
(b)(3) of this section. The comptroller shall discontinue retaining sales
and use tax revenue and mixed beverage tax revenue under this subsection on
the earlier of:
(1) the end of the third
calendar month following the month in which the closing event of the games
occurs; or
(2) the date the amount of
local sales and use tax revenue and mixed beverage tax revenue in the
Olympic Games reimbursement [trust] fund equals 14 percent of
the maximum amount of state and local tax revenue that may be transferred
to or deposited in the [trust] fund under Subsection (m) of this
section.
(f) Subject to Subsection
(m) of this section, each endorsing municipality or endorsing county shall
remit to the comptroller and the comptroller, at the direction of the
department, shall deposit into a trust fund designated as the Olympic
Games reimbursement [trust] fund, on a quarterly basis, the
amount of the municipality's or county's hotel occupancy tax revenue
determined by the department under Subsection (b)(4) or (b)(5) of
this section, as applicable. Subject to Section 6 of this Act and
Subsection (m) of this section, the comptroller, at the direction of the
department, shall deposit into the [trust] fund the amount of
sales and use tax revenue and mixed beverage tax revenue retained under
Subsection (d) of this section for the same calendar quarter and, at the
same time, shall transfer to the fund the state tax revenue
determined by the department under Subsection (b)(1) of this section
for the quarter. The Olympic Games reimbursement [trust]
fund is established outside the treasury but is held in trust by the
comptroller for the administration of this Act. Money in the [trust]
fund may be spent by the department without appropriation only as provided
by this Act. The comptroller shall discontinue transfer [deposit]
of the amount of state tax revenue determined by the department
under Subsection (b)(1) of this section on the earlier of:
(1) the end of the third
calendar month following the month in which the closing event of the games
occurs; or
(2) the date the amount of
state revenue in the Olympic Games reimbursement [trust] fund
equals 86 percent of the maximum amount of state, municipal, and county tax
revenue that may be transferred to or deposited in the [trust]
fund under Subsection (m) of this section.
(g) The department may use
the money [funds] in the Olympic Games reimbursement [trust]
fund only to fulfill joint obligations of the state and each endorsing
municipality or endorsing county to a site selection organization under a
games support contract or any other agreement providing assurances from the
department or the municipality or county to a site selection organization.
(h) A local organizing
committee shall provide information required by the department [comptroller]
to enable the department [comptroller] to fulfill the department's
[comptroller's] duties under this Act, including annual audited
statements of the local organizing committee's financial records required
by a site selection organization and data obtained by the local organizing
committee relating to attendance at the games and to the economic impact of
the games. A local organizing committee must provide an annual audited
financial statement required by the department [comptroller]
not later than the end of the fourth month after the date the period
covered by the financial statement ends.
(i) The department [comptroller]
shall provide an estimate before August 31 of the year that is 12 years
before the year in which the games would be held in this state, or as soon
as practical after that date, of the total amount of state, municipal, and
county tax revenue that would be transferred to or deposited in the
Olympic Games reimbursement [trust] fund if the games were to
be held in this state at a site selected pursuant to an application by a
local organizing committee. The department [comptroller]
shall provide the estimate on request to a local organizing committee. A
local organizing committee may submit the department's [comptroller's]
estimate to a site selection organization.
(j) The department may not
make a disbursement from the Olympic Games reimbursement [trust]
fund unless the department [comptroller] certifies that the
disbursement is for a purpose for which the state and each endorsing
municipality or endorsing county are jointly obligated under a games
support contract or other agreement described by Subsection (g) of this
section. A disbursement may not be made from the [trust] fund that
the department determines would be used for the purpose of soliciting the
relocation of a professional sports franchise located in this state.
(k) If the department
[comptroller] certifies under Subsection (j) of this section that a
disbursement may be made from the Olympic Games reimbursement [trust]
fund, the obligation shall be satisfied proportionately from the state and
municipal or county revenue in the [trust] fund.
(l) Two years after the
closing event of the games, the department [comptroller]
shall transfer to the general revenue fund any money remaining in the
Olympic Games reimbursement [trust] fund, not to exceed the
amount of state revenue remaining in the [trust] fund, plus any
interest earned on that state revenue. The department [comptroller]
shall remit to each endorsing entity in proportion to the amount
contributed by the entity any money remaining in the [trust] fund
after the required amount is transferred to the general revenue fund.
(m) In no event may:
(1) the total amount of
state, municipal, and county tax revenue transferred to or deposited
in the Olympic Games reimbursement [trust] fund exceed $100
million; or
(2) the joint liability of
the state and an endorsing municipality or county under a joinder agreement
and any other games support contracts entered into pursuant to this Act
exceed the lesser of:
(A) $100 million; or
(B) the total amount of
revenue transferred to or deposited in the Olympic Games reimbursement
[trust] fund and interest earned on the fund.
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No
equivalent provision.
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SECTION 6. The heading to
Section 5A, Chapter 1507 (S.B. 456), Acts of the 76th Legislature, Regular
Session, 1999 (Article 5190.14, Vernon's Texas Civil Statutes), is amended
to read as follows:
Sec. 5A. PAYMENT OF STATE
AND MUNICIPAL OR COUNTY OBLIGATIONS; MAJOR EVENTS REIMBURSEMENT [TRUST]
FUND.
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No
equivalent provision.
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SECTION 7. Sections 5A(a)(1)
and (2), Chapter 1507 (S.B. 456), Acts of the 76th Legislature, Regular
Session, 1999 (Article 5190.14, Vernon's Texas Civil Statutes), are amended
to read as follows:
(1) "Endorsing
county" means:
(A) a county that contains a
site selected by a site selection organization for one or more events; or
(B) a county that:
(i) does not contain a site
selected by a site selection organization for an event;
(ii) is included in the
market area for the event as designated by the department [comptroller];
and
(iii) is a party to an event
support contract.
(2) "Endorsing
municipality" means:
(A) a municipality that
contains a site selected by a site selection organization for one or more
events; or
(B) a municipality that:
(i) does not contain a site
selected by a site selection organization for an event;
(ii) is included in the
market area for the event as designated by the department [comptroller];
and
(iii) is a party to an event
support contract.
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No
equivalent provision.
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No
equivalent provision.
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SECTION 2. Section 5A(a),
Chapter 1507 (S.B. 456), Acts of the 76th Legislature, Regular Session,
1999 (Article 5190.14, Vernon's Texas Civil Statutes), is amended by
amending Subdivision (4) and by amending Subdivision (5), as amended by
S.B. 293, Acts of the 84th Legislature, Regular Session, 2015, to read as
follows:
(4) "Event" means
a Super Bowl, a National Collegiate Athletic Association Final Four
tournament game, the National Basketball Association All-Star Game, the X
Games, the National Hockey League All-Star Game, the Major League Baseball
All-Star Game, a game of the National Collegiate Athletic Association Bowl
Championship Series or its successor or a National Collegiate Athletic
Association Division I Football Bowl Subdivision postseason playoff or
championship game, the National Collegiate Athletic Association men's or
women's lacrosse championships, a World Cup Soccer game, the World
Cup soccer tournament, the Major League Soccer All-Star Game, the Major
League Soccer Cup, the Professional Rodeo Cowboys Association National
Finals Rodeo, an Elite Rodeo Association World Championship, the United
States Open Championship, 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, 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 Amateur Athletic Union Junior
Olympic Games, a mixed martial arts championship, the Breeders' Cup
World Championships, a Formula One automobile race, the Moto Grand Prix
of the United States, the Academy of Country Music Awards, the National
Cutting Horse Association Triple Crown, a national political convention of
the Republican National Committee or the Democratic National Committee, a
presidential general election debate, or the largest event held each
year at a sports entertainment venue in this state with a permanent seating
capacity, including grandstand and premium seating, of not less than
125,000. The term includes any activities related to or associated with an
event.
(5) "Site selection
organization" means:
(A) the National Football
League, the National Collegiate Athletic Association, the National
Basketball Association, ESPN or an affiliate, the National Hockey League,
Major League Baseball, the Federation Internationale de Football
Association (FIFA), the International World Games Association, the National
Association for Stock Car Auto Racing (NASCAR), Dorna Sports, the
Amateur Athletic Union, the Professional Rodeo Cowboys Association, the
Elite Rodeo Association, Major League Soccer, the United States Golf
Association, or the United States Olympic Committee;
(B) the national governing
body of a sport that is recognized by the United States Olympic Committee,
the National Thoroughbred Racing Association, Formula One Management
Limited, or the Federation Internationale de l'Automobile;
(C) the Academy of Country
Music;
(D) the National Cutting
Horse Association;
(E) the Republican National
Committee or the Democratic National Committee; [or]
(F) the Ultimate Fighting
Championship; or
(G) the Commission on
Presidential Debates.
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No
equivalent provision.
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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 amended by adding
Subsection (a-3) to read as follows:
(a-3) For purposes of
Subsection (a-1) of this section, each presidential general election debate
in a series of presidential debates before a general election is considered
a separate, single event.
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SECTION 8. Sections 5A(a-1),
(a-2), (b), (b-1), (c), (d), (d-1), (e), (f), (g), (i), (j), (k), (l), (m),
(p), (v), (w), and (y), Chapter 1507 (S.B. 456), Acts of the 76th
Legislature, Regular Session, 1999 (Article 5190.14, Vernon's Texas Civil
Statutes), are amended to read as follows:
(a-1) An event not listed in
Subsection (a)(4) of this section is ineligible for funding under this
section. A listed event may receive funding under this section only if:
(1) a site selection
organization selects a site located in this state for the event to be held
one time or, for an event scheduled to be held each year for a period of
years under an event contract, or an event support contract, one time each
year for the period of years, after considering, through a highly
competitive selection process, one or more sites that are not located in
this state;
(2) a site selection
organization selects a site in this state as:
(A) the sole site for the
event; or
(B) the sole site for the
event in a region composed of this state and one or more adjoining states;
(3) the event is held not
more than one time in any year; and
(4) the amount of the
incremental increase in tax receipts determined by the department [comptroller]
under Subsection (b) of this section equals or exceeds $1 million, provided
that for an event scheduled to be held each year for a period of years
under an event contract or event support contract, the incremental increase
in tax receipts shall be calculated as if the event did not occur in the
prior year.
(a-2) Subsection (a-1)(1) of
this section does not apply to an event that is the largest event held each
year at a sports entertainment venue in this state with a permanent seating
capacity, including grandstand and premium seating, of not less than
125,000. If an endorsing municipality or endorsing county requests the department
[comptroller] to make a determination under Subsection (b) of this
section for an event described by this subsection, the provisions of this
section apply to that event as if it satisfied the eligibility requirements
for an event under Subsection (a-1)(1) of this section.
(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, upon request of a local organizing committee, endorsing
municipality, or endorsing county, the department [comptroller]
shall determine for a one-year period that begins two months before the
date on which the event will begin, in accordance with procedures developed
by the department [comptroller]:
(1) the incremental increase
in the receipts to the state from taxes imposed under Chapters 151, 152,
156, and 183, Tax Code, and under Title 5, Alcoholic Beverage Code, within
the market areas designated under Subsection (c) of this section, that is
directly attributable, as determined by the department [comptroller],
to the preparation for and presentation of the event and related
activities;
(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 department [comptroller], to the preparation for and
presentation of the event and related activities;
(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 department
[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 department [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 department [comptroller],
to the preparation for and presentation of the event and related
activities.
(b-1) A request for a
determination of the amount of incremental increase in tax receipts
specified by Subsection (b) of this section must be submitted to the department
[comptroller] not earlier than one year and not later than 45 days
before the date the event begins. The department [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 department [comptroller]
receives the request and related information.
(c) For the purposes of
Subsection (b)(1) of this section, the department [comptroller]
shall designate as a market area for the event each area in which the department
[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 department
[comptroller]. The department [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.
(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, at the direction of the department, and designated as
the Major Events reimbursement [trust] fund the amount of the
municipality's or county's hotel occupancy tax revenue determined by the
department under Subsection (b)(4) or (b)(5) of this section, less any
amount of the revenue that the municipality or county determines is
necessary to meet the obligations of the municipality or county. The
comptroller, at the direction of the department, shall retain the
amount of sales and use tax revenue and mixed beverage tax revenue
determined by the department under Subsection (b)(2) or (b)(3) of
this section from the amounts otherwise required to be sent to the
municipality under Sections 321.502 and 183.051(b), Tax Code, or to the
county under Sections 323.502 and 183.051(b), Tax Code, and deposit into
the [trust] fund the tax revenues, less any amount of the revenue
that the municipality or county determines is necessary to meet the
obligations of the municipality or county. The comptroller shall begin
retaining and depositing the local tax revenues with the first distribution
of that tax revenue that occurs after the first day of the one-year period
described by Subsection (b) of this section or at a time otherwise
determined to be practicable by the department [comptroller]
and shall discontinue retaining the local tax revenues under this
subsection when the amount of the applicable tax revenue determined by
the department under Subsection (b)(2) or (b)(3) of this section has
been retained. The Major Events reimbursement [trust] fund
is established outside the state treasury and is held in trust by the
comptroller for administration of this Act. Money in the [trust]
fund may be disbursed by the department [comptroller] without
appropriation only as provided by this section.
(d-1) Not later than the
90th day after the last day of an event and in lieu of the local tax
revenues remitted [to] or retained [by the comptroller] under
Subsection (d) of this section, a municipality or county may remit to the department
[comptroller] for deposit in the Major Events reimbursement [trust]
fund other local funds in an amount equal to the total amount of local tax
revenue determined by the department under Subsections (b)(2)
through (5) of this section. The amount deposited by the department
[comptroller] into the Major Events reimbursement [trust]
fund under this subsection is subject to Subsection (f) of this section.
(e) In addition to the tax
revenue deposited in the Major Events reimbursement [trust]
fund under Subsection (d) of this section, an endorsing municipality or
endorsing county may guarantee its obligations under an event support
contract and this section by pledging surcharges from user fees, including
parking or ticket fees, charged in connection with the event. An endorsing
municipality or endorsing county may collect and remit to the department
[comptroller] surcharges and user fees attributable to the event for
deposit into the Major Events reimbursement [trust] fund.
(f) The comptroller, at
the direction of the department, shall transfer [deposit]
into the Major Events reimbursement [trust] fund a portion of
the state tax revenue not to exceed the amount determined by the
department under Subsection (b)(1) of this section in an amount equal
to 6.25 times the amount of the local revenue retained or remitted under
this section, including:
(1) local sales and use tax
revenue;
(2) mixed beverage tax
revenue;
(3) hotel occupancy tax
revenue; and
(4) surcharge and user fee
revenue.
(g) To meet its obligations
under 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. 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 Events reimbursement
[trust] fund or surcharges from user fees, including parking or
ticket fees, charged in connection with the event. Any note issued must
mature not later than seven years from its date of issuance.
(i) A local organizing
committee, endorsing municipality, or endorsing county shall provide
information required by the department [comptroller] to
enable the department [comptroller] to fulfill the department's
[comptroller's] duties under this section, including annual audited
statements of any financial records required by a site selection
organization and data obtained by the local organizing committee, an
endorsing municipality, or an endorsing county relating to attendance at
the event, including an estimate of the number of people expected to attend
the event who are not residents of this state, 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 department [comptroller], 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 department's
[comptroller's] request, a local organizing committee, endorsing
municipality, or endorsing county must provide information relating to the
event, such as attendance figures, including an estimate of the number of
attendees at the event who are not residents of this state, financial
information, or other public information held by the local organizing
committee, endorsing municipality, or endorsing county that the department
[comptroller] considers necessary.
(j) Not later than the 30th
day after the date a request of a local organizing committee, endorsing
municipality, or endorsing county is submitted to the department [comptroller]
under Subsection (b-1) of this section, the department [comptroller]
shall provide an estimate of the total amount of tax revenue that would be
deposited in the Major Events reimbursement [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. A
local organizing committee, endorsing municipality, or endorsing county may
submit the department's [comptroller's] estimate to a site
selection organization.
(k) The department [comptroller]
may make a disbursement from the Major Events reimbursement [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 the state is obligated
under a game support contract or event support contract. If an obligation
is incurred under a games support contract or 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, unless the improvement or
fixture is for a publicly owned facility. In considering whether to make a
disbursement from the [trust] fund, the department [comptroller]
may not consider a contingency clause in an event support contract as
relieving a local organizing committee's, endorsing municipality's, or
endorsing county's obligation to pay a cost under the contract. A
disbursement may not be made from the [trust] fund that the department
[comptroller] determines would be used for the purpose of soliciting
the relocation of a professional sports franchise located in this state.
(l) If a disbursement is
made from the Major Events reimbursement [trust] fund under
Subsection (k) of this section, the obligation shall be satisfied
proportionately from the state and local revenue in the [trust]
fund.
(m) On payment of all state,
municipal, or county obligations under a game support contract or event
support contract related to the location of any particular event in the
state, the department [comptroller] shall remit to each
endorsing entity, in proportion to the amount contributed by the entity,
any money remaining in the [trust] fund.
(p) The department [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; and
(3) the request is
accompanied by documentation from a site selection organization selecting
the site for the event.
(v) The department [comptroller]
may adopt rules necessary to implement this section.
(w) Not later than 10 months
after the last day of an event eligible for disbursements from the Major
Events reimbursement [trust] fund for costs associated with
the event, the department [comptroller] using existing
resources shall complete a study in the market area of the event on the
measurable economic impact directly attributable to the preparation for and
presentation of the event and related activities. The department [comptroller]
shall post on the department's [comptroller's] Internet
website:
(1) the results of the study
conducted under this subsection, including any source documentation or
other information relied on by the department [comptroller]
for the study;
(2) the amount of
incremental increase in tax receipts for the event determined by the
department under Subsection (b) of this section;
(3) the site selection
organization documentation described in Subsection (p)(3) of this section;
(4) any source documentation
or information described under Subsection (i) of this section that was
relied on by the department [comptroller] in making the
determination of the amount of incremental increase in tax receipts under
Subsection (b) of this section; and
(5) documentation verifying
that:
(A) a request submitted by a
local organizing committee, endorsing municipality, or endorsing county
under Subsection (p) of this section is complete and certified as such by
the department [comptroller];
(B) the determination on the
amount of incremental increases in tax receipts under Subsection (b) of
this section considered the information submitted by a local organizing
committee, endorsing municipality, or endorsing county as required under
Subsection (b-1) of this section; and
(C) each deadline
established under this section was timely met.
(y) After the conclusion of
an event, the department [comptroller] shall compare
information on the actual attendance figures provided to the department
[comptroller] under Subsection (i) of this section with the
estimated attendance numbers used to determine the incremental increase in
tax receipts under Subsection (b) of this section. If the actual
attendance figures are significantly lower than the estimated attendance
numbers, the department [comptroller] may reduce the amount
of a disbursement for an endorsing entity under the Major Events reimbursement
[trust] fund in proportion to the discrepancy between the actual and
estimated attendance and in proportion to the amount contributed to the fund
by the entity. The department [comptroller] by rule shall
define "significantly lower" for purposes of this subsection and
provide the manner in which a disbursement may be proportionately reduced.
This subsection does not affect the remittance of any money remaining in
the fund in accordance with Subsection (m) of this section.
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No
equivalent provision.
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SECTION 9. The heading to
Section 5B, Chapter 1507 (S.B. 456), Acts of the 76th Legislature, Regular
Session, 1999 (Article 5190.14, Vernon's Texas Civil Statutes), is amended
to read as follows:
Sec. 5B. GUARANTEE OF STATE
AND MUNICIPAL OR COUNTY OBLIGATIONS; MOTOR SPORTS RACING REIMBURSEMENT
[TRUST] FUND.
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No
equivalent provision.
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SECTION 10. Sections 5B(b),
(c), (d), (e), (f), (g), (h), (i), (j), (k), (l), (m), and (o), Chapter
1507 (S.B. 456), Acts of the 76th Legislature, Regular Session, 1999
(Article 5190.14, Vernon's Texas Civil Statutes), are amended to read as
follows:
(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 department [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 department [comptroller]:
(1) the incremental increase
in the receipts to the state from taxes imposed under Chapters 151, 152,
156, and 183, Tax Code, and under Title 5, Alcoholic Beverage Code, within
the market areas designated under Subsection (c) of this section, that is
directly attributable, as determined by the department [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 department [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 department
[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 department [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 department [comptroller],
to the preparation for and presentation of the racing event.
(c) For the purposes of
Subsection (b)(1) of this section, the department [comptroller]
shall designate as a market area for the motor sports racing event each area
in which the department [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 department [comptroller]. The department [comptroller]
shall determine the geographic boundaries of each market area. An
endorsing municipality or endorsing county that has been selected as the
site for the racing event must be included in a market area for the racing
event.
(d) Each endorsing
municipality or endorsing county shall remit to the comptroller and the
comptroller shall deposit into a [trust] fund created by the
comptroller, at the direction of the department, and designated as
the Motor Sports Racing reimbursement [trust] fund for the
particular event the amount of the municipality's or county's hotel
occupancy tax revenue determined by the department under 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. The comptroller, at the direction of the
department, shall retain the amount of sales and use tax revenue and
mixed beverage tax revenue determined by the department under
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 [trust] fund the tax
revenues, less any amount of the revenue that the municipality or county
determines is necessary to meet the obligations of the municipality or
county. The comptroller shall begin retaining and depositing the local tax
revenues with the first distribution of that tax revenue that occurs after
the first day of the 30-day period described by Subsection (b) of this
section and shall discontinue retaining the local tax revenues under this
subsection when the amount of the applicable tax revenue determined under
Subsection (b)(2) or (3) of this section has been retained. The Motor
Sports Racing reimbursement [trust] fund is established
outside the state treasury and is held in trust by the comptroller for
administration of this section. Money in the [trust] fund may be
disbursed by the department [comptroller] without
appropriation only as provided by this section.
(e) In addition to the tax
revenue deposited in the Motor Sports Racing reimbursement [trust]
fund under Subsection (d) of this section, an endorsing municipality or
endorsing county may guarantee its obligations under a motor sports racing
event support contract and this section by pledging surcharges from user
fees, including parking or ticket fees, charged in connection with the
racing event.
(f) The comptroller, at
the direction of the department, shall transfer [deposit]
a portion of the state tax revenue determined by the department
under Subsection (b)(1) of this section in an amount equal to 6.25 times
the amount of the local sales and use tax revenue and mixed beverage tax
revenue retained and the hotel occupancy tax revenue remitted by an
endorsing municipality or endorsing county under Subsection (d) of this
section.
(g) To meet its obligations
under a motor sports racing event support contract or event support
contract to improve, renovate, or acquire facilities or to acquire
equipment, an endorsing municipality by ordinance or an endorsing county by
order may authorize the issuance of notes. An endorsing municipality or
endorsing county may provide that the notes be paid from and secured by
amounts on deposit or amounts to be transferred or deposited into
the Motor Sports Racing reimbursement [trust] fund or
surcharges from user fees, including parking or ticket fees, charged in
connection with the racing event. Any note issued must mature not later
than seven years from its date of issuance.
(h) The money [funds]
in the Motor Sports Racing reimbursement [trust] fund may be
used to pay the principal of and interest on notes issued by an endorsing
municipality or endorsing county under Subsection (g) of this section and
to fulfill obligations of the state or an endorsing municipality or
endorsing county to a site selection organization under a motor sports
racing event support contract or event support contract, which obligations
may include the payment of costs relating to the preparations necessary or
desirable for the conduct of the racing event and the payment of costs of
conducting the racing event, including temporary improvements or temporary
renovations to existing facilities or other facilities specific to the
event.
(i) A local organizing
committee, endorsing municipality, or endorsing county shall provide
information required by the department [comptroller] to
enable the department [comptroller] to fulfill the department's
[comptroller's] duties under this section, including annual audited
statements of any financial records required by a site selection
organization and data obtained by the local organizing committee, an
endorsing municipality, or an endorsing county relating to attendance at
the motor sports racing event and to the economic impact of the racing
event. A local organizing committee, endorsing municipality, or endorsing
county must provide an annual audited financial statement required by the department
[comptroller], if any, not later than the end of the fourth month
after the date the period covered by the financial statement ends.
(j) The department [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 transferred
to or deposited in the Motor Sports Racing reimbursement [trust]
fund under this section in connection with that racing event, if the racing
event were to be held in this state at a site selected pursuant to an
application by a local organizing committee, endorsing municipality, or
endorsing county. The department [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 department's [comptroller's]
estimate to a site selection organization.
(k) The department [comptroller]
may make a disbursement from the Motor Sports Racing reimbursement [trust]
fund on the prior approval of each contributing endorsing municipality or
endorsing county for a purpose for which an endorsing municipality or
endorsing county or the state is obligated under a motor sports racing
event support contract or event support contract. A disbursement may not
be made from the [trust] fund that the department [comptroller]
determines would be used for the purpose of soliciting the relocation of a
professional sports franchise located in this state.
(l) If a disbursement is
made from the Motor Sports Racing reimbursement [trust] fund
under Subsection (k) of this section, the obligation shall be satisfied
proportionately from the state and local revenue in the [trust]
fund.
(m) On payment of all state,
municipal, or county obligations under a motor sports racing support
contract or event support contract related to the location of any
particular racing event in the state, the department [comptroller]
shall remit to each endorsing entity, in proportion to the amount contributed
by the entity, any money remaining in the [trust] fund.
(o) The department [comptroller]
may not undertake any of the responsibilities or duties set forth in this
section unless a request is submitted by the municipality and the county in
which the motor sports racing event will be held. The request must be
accompanied by documentation from a site selection organization selecting
the site for the racing event.
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No
equivalent provision.
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|
SECTION 11. The heading to
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
to read as follows:
Sec. 5C. EVENTS REIMBURSEMENT
[TRUST] FUND FOR CERTAIN MUNICIPALITIES AND COUNTIES.
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No
equivalent provision.
|
|
SECTION 12. Sections 5C(b),
(b-1), (c), (c-1), (d), (d-1), (e), (f), (g), (h), (i), (j), (k), (k-1),
(k-2), (l), (m), (o), (p), (q), (r), and (t), Chapter 1507 (S.B. 456), Acts
of the 76th Legislature, Regular Session, 1999 (Article 5190.14, Vernon's
Texas Civil Statutes), are amended to read as follows:
(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 department [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 department [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 department [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 department [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 department
[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 department [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 department [comptroller],
to the preparation for and presentation of the event and related
activities.
(b-1) The number of requests
for funding under this section that may be submitted by an endorsing county
or endorsing municipality during any 12-month period for an event for which
the department [comptroller] determines that the total amount
of the incremental increase in tax receipts under Subsection (b) of this
section is less than $200,000 is limited to, during any 12-month period,
not more than 10 events, only three of which may be nonsporting events.
(c) For the purposes of
Subsection (b)(1) of this section, the department [comptroller]
shall designate as a market area for the event each area in which the department
[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 department
[comptroller]. The department [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 department
[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 department
[comptroller] receives the information.
(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, at the direction of the department, and designated as
the Events reimbursement [trust] fund the amount of the
municipality's or county's hotel occupancy tax revenue determined by the
department under 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. The
comptroller, at the direction of the department, shall retain the
amount of sales and use tax revenue and mixed beverage tax revenue
determined by the department under 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 [trust]
fund the tax revenues, less any amount of the revenue that the municipality
or county determines is necessary to meet the obligations of the
municipality or county. The comptroller shall begin retaining and
depositing the local tax revenues with the first distribution of that tax
revenue that occurs after the first day of the period described by
Subsection (b) of this section or at a time otherwise determined to be
practicable by the department [comptroller] and shall
discontinue retaining the local tax revenues under this subsection when the
amount of the applicable tax revenue determined by the department
under Subsection (b)(2) or (3) of this section has been retained. The
Events reimbursement [trust] fund is established outside the
state treasury and is held in trust by the comptroller for administration
of this section. Money in the [trust] fund may be disbursed by the department
[comptroller] without appropriation only as provided by this
section.
(d-1) Not later than the
90th day after the last day of an event and in lieu of the local tax
revenues remitted [to] or retained [by the comptroller] under
Subsection (d) of this section, a municipality or county may remit to the department
[comptroller] for deposit in the Events reimbursement [trust]
fund other local funds in an amount equal to the total amount of local tax
revenue determined by the department under Subsections (b)(2)
through (5) of this section. The amount deposited by the department
[comptroller] into the Events reimbursement [trust]
fund under this subsection is subject to Subsection (f) of this section.
(e) In addition to the tax
revenue deposited in the Events reimbursement [trust] fund
under Subsection (d) of this section, an endorsing municipality or
endorsing county may guarantee its obligations under an event support
contract and this section by pledging surcharges from user fees, including
parking or ticket fees, charged in connection with the event. An endorsing
municipality or endorsing county may collect and remit to the department
[comptroller] surcharges and user fees attributable to the event for
deposit into the Events reimbursement [trust] fund.
(f) The comptroller, at the
direction of the department, shall transfer [deposit]
into the Events reimbursement [trust] fund a portion of the
state tax revenue not to exceed the amount determined by the department
under Subsection (b)(1) of this section in an amount equal to 6.25 times
the amount of the local tax revenue retained or remitted under this
section, including:
(1) local sales and use tax
revenue;
(2) mixed beverage tax
revenue;
(3) hotel occupancy tax
revenue; and
(4) surcharge and user fee
revenue.
(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. An
endorsing municipality or endorsing county may provide that the notes be
paid from and secured by amounts on deposit or amounts to be transferred
or deposited into the Events reimbursement [trust] fund
or surcharges from user fees, including parking or ticket fees, charged in
connection with the event. Any note issued must mature not later than
seven years from its date of issuance.
(h) The money in the Events reimbursement
[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 obligations may include the payment of costs relating to
the preparations necessary 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.
(i) A local organizing
committee, endorsing municipality, or endorsing county shall provide
information required by the department [comptroller] to
enable the department [comptroller] to fulfill the department's
[comptroller's] duties under this section, including annual audited
statements of any financial records required by a site selection
organization and data obtained by the local organizing committee, an
endorsing municipality, or an endorsing county relating to attendance at
the event, including an estimate of the number of people expected to attend
the event who are not residents of this state, 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 department [comptroller], 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 department's
[comptroller's] request, a local organizing committee, endorsing
municipality, or endorsing county must provide information relating to the
event, such as attendance figures, including an estimate of the number of
people who are not residents of this state who attended the event,
financial information, or other public information held by the local
organizing committee, endorsing municipality, or endorsing county that the department
[comptroller] considers necessary.
(j) The department [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 transferred into
or deposited in the Events reimbursement [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 department
[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 department's [comptroller's] estimate to a site
selection organization.
(k) The department [comptroller]
may make a disbursement from the Events reimbursement [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, including an obligation to pay costs
incurred in the conduct of the event and costs incurred in making
preparations necessary for 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, unless the
improvement or fixture is for a publicly owned facility. In considering
whether to make a disbursement from the [trust] fund, the department
[comptroller] may not consider a contingency clause in an event
support contract as relieving a local organizing committee's, endorsing
municipality's, or endorsing county's obligation to pay a cost under the
contract.
(k-1) A disbursement may not
be made from the [trust] fund that the department [comptroller]
determines would be used for the purpose of:
(1) soliciting the
relocation of a professional sports franchise located in this state;
(2) constructing an arena,
stadium, or convention center; or
(3) conducting usual and
customary maintenance of a facility.
(k-2) Subsection (k-1) of
this section does not prohibit:
(1) a disbursement from the
[trust] fund for the construction of temporary structures within an
arena, stadium, or convention, if those temporary structures are necessary
for the conduct of the event; or
(2) temporary maintenance of
a facility that is necessary for the preparation for or conduct of the
event.
(l) If a disbursement is
made from the Events reimbursement [trust] fund under
Subsection (k) of this section, the obligation shall be satisfied
proportionately from the state and local revenue in the [trust]
fund.
(m) On payment of all state,
municipal, or county obligations under an event support contract related to
the location of any particular event in this state, the department [comptroller]
shall remit to each endorsing entity, in proportion to the amount
contributed by the entity, any money remaining in the Events reimbursement
[trust] fund.
(o) The department [comptroller]
may not undertake any of the responsibilities or duties set forth in this
section unless a request is submitted by the municipality or the county in
which the event will be located. The request must be accompanied by
documentation from a site selection organization selecting the site for the
event.
(p) The department [comptroller]
may adopt rules necessary to implement this section.
(q) In determining the
amount of state revenue available under Subsection (b)(1) of this section,
the department [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.
(r) The department [comptroller]
may adopt a model event support contract and make the contract available on
the department's [comptroller's] Internet website. The
adoption by the department [comptroller] of a model event
support contract under this subsection does not require use of the model
event support contract for purposes of this section.
(t) After the conclusion of
an event, the department [comptroller] shall compare
information on the actual attendance figures provided to the department
[comptroller] under Subsection (i) of this section with the
estimated attendance numbers used to determine the incremental increase in
tax receipts under Subsection (b) of this section. If the actual
attendance figures are significantly lower than the estimated attendance
numbers, the department [comptroller] may reduce the amount
of a disbursement for an endorsing entity under the Events reimbursement
[trust] fund in proportion to the discrepancy between the actual and
estimated attendance and in proportion to the amount contributed to the
fund by the entity. The department [comptroller] by rule
shall define "significantly lower" for purposes of this
subsection and provide the manner in which a disbursement may be
proportionately reduced. This subsection does not affect the remittance of
any money remaining in the fund in accordance with Subsection (m) of this
section.
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No
equivalent provision.
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SECTION 13. Sections 6(a)
and (b), Chapter 1507 (S.B. 456), Acts of the 76th Legislature, Regular
Session, 1999 (Article 5190.14, Vernon's Texas Civil Statutes), are amended
to read as follows:
(a) Except as provided by
Subsections (b) and (d) of this section, an endorsing municipality or
endorsing county must hold an election in the municipality or county to
determine whether the municipality or county may contribute a portion of
its sales and use taxes to the Olympic Games reimbursement [trust]
fund under Section 5 of this Act. The election must be held on a uniform
election date before the date a site selection organization requires the
endorsing municipality or endorsing county and the state to enter into a
joinder undertaking relating to the applicable games.
(b) If an endorsing
municipality or endorsing county is required to hold an election under this
section and the contribution of a portion of the municipality's or county's
sales and use taxes to the Olympic Games reimbursement [trust]
fund under Section 5 of this Act is not approved by a majority of the
voters voting in the election:
(1) the comptroller may not
establish the Olympic Games reimbursement [trust] fund under
Section 5 of this Act, may not retain the municipality's or county's tax
revenue under Section 5(d) of this Act from amounts otherwise required to
be sent to that municipality or county, and may not transfer [deposit]
any state tax revenue into the [trust] fund;
(2) the department [comptroller]
is not required to determine the incremental increase in state, county, or
municipal tax revenue under Section 5(b) of this Act; and
(3) the department may not
enter into a games support contract relating to the games for which the
municipality or county has authorized a bid on its behalf.
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No
equivalent provision.
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SECTION 14. Section 7(f),
Chapter 1507 (S.B. 456), Acts of the 76th Legislature, Regular Session,
1999 (Article 5190.14, Vernon's Texas Civil Statutes), is amended to read
as follows:
(f) The department may agree
to execute a joinder undertaking, a joinder agreement, or other games
support contract only if:
(1) the department
determines that:
(A) the state's assurances
and obligations under the undertaking, agreement, or contract are
reasonable; and
(B) any financial
commitments of the state will be satisfied exclusively by recourse to the
Pan American Games reimbursement [trust] fund or the Olympic
Games reimbursement [trust] fund, as applicable; and
(2) the endorsing
municipality or endorsing county has executed an agreement with a site
selection organization that contains substantially similar terms.
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No
equivalent provision.
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SECTION 15. The following
laws are repealed:
(1)
Section 5C(s), Chapter 1507 (S.B. 456), Acts of the 76th Legislature,
Regular Session, 1999 (Article 5190.14, Vernon's Texas Civil Statutes); and
(2) Chapter 398, Local
Government Code.
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SECTION 4. Chapter 398,
Local Government Code, is repealed.
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SECTION 16. As soon as is
practicable after the effective date of this Act, but not later than
September 10, 2015, the office of the governor and the comptroller of
public accounts shall develop and adopt a memorandum of understanding that:
(1) identifies in detail the
applicable powers and duties of the comptroller that are being transferred
to the office of the governor as a result of this Act; and
(2) establishes a plan for
the identification and transfer of records, property, and unspent
appropriations of the comptroller that are used for purposes of managing
the funds transferred to the office of the governor.
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No
equivalent provision.
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SECTION 17. (a) Not later
than September 10, 2015:
(1) the administration of
the Pan American Games reimbursement fund, Olympic Games reimbursement
fund, Major Events reimbursement fund, Motor Sports Racing reimbursement
fund, and Events reimbursement fund for sporting and non-sporting events
shall be transferred from the comptroller of public accounts to the Texas
Economic Development and Tourism Office;
(2) all rules, forms,
policies, procedures, or decisions of the comptroller that are related to
the Pan American Games reimbursement fund, Olympic Games reimbursement
fund, Major Events reimbursement fund, Motor Sports Racing reimbursement
fund, and Events reimbursement fund for sporting and non-sporting events
are continued in effect as rules, forms, policies, procedures, or decisions
of the Economic Development and Tourism Division, Office of the Governor,
until superseded by a rule or other appropriate act of the Texas Economic
Development and Tourism Office; and
(3) a reference in law or
administrative rule to the comptroller relating to the decisions for and
administration of the Pan American Games reimbursement fund, Olympic Games
reimbursement fund, Major Events reimbursement fund, Motor Sports Racing
reimbursement fund, and Events reimbursement fund for sporting and
non-sporting events, other than a duty typically performed by the
comptroller related to a state fund, means the Texas Economic Development
and Tourism Office.
(b) Before the transfer of
the administration of the Pan American Games reimbursement fund, Olympic
Games reimbursement fund, Major Events reimbursement fund, Motor Sports
Racing reimbursement fund, and Events reimbursement fund for sporting and
non-sporting events, the comptroller of public accounts and the Texas
Economic Development and Tourism Office shall coordinate the transfer of
powers and duties, including records and other items, in accordance with
the memorandum of understanding adopted under Section 16 of this Act, to
ensure a smooth transition.
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No
equivalent provision.
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SECTION 18. Notwithstanding
the repeal by this Act of Chapter 398, Local Government Code, a special
event plan approved under former Chapter 398 of that code before September
1, 2015, is governed by the law as it existed immediately before the
effective date of this Act, and that law is continued in effect for that
purpose.
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SECTION 5. Same as engrossed
version.
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SECTION 19. This Act takes
effect September 1, 2015.
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SECTION 6. Same as engrossed
version.
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