89R24238 BEE-F

By: Tepper, Morales of Maverick H.B. No. 3349

A BILL TO BE ENTITLED

AN ACT

relating to the events trust fund and to abolishing the Pan American Games trust fund, Olympic Games trust fund, and motor sports racing trust fund.

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

SECTION 1. Sections 475.0001(1), (2), (3), (4), and (10), Government Code, are amended to read as follows:

(1) "Endorsing county" means an endorsing county for purposes of Chapter [477,] 478[, 479,] or 480.

(2) "Endorsing municipality" means an endorsing municipality for purposes of Chapter [476, 477,] 478[, 479,] or 480.

(3) "Event" means a game or an event as defined by Chapter 478[, 479,] or 480.

(4) "Games" means any of the following and includes the events and activities related to the following:

(A) the College Football Playoff games;

(B) the Major League Baseball All-Star Game;

(C) the National Basketball Association All-Star Game;

(D) the National Collegiate Athletic Association Final Four;

(E) the National Hockey League All-Star Game;

(F) [the Olympic Games;

[(G) the Pan American Games;

[(H)] the Super Bowl;

(G) [(I)] the World Cup Soccer Games; or

(H) [(J)] the World Games.

(10) "Site selection organization" means a site selection organization as defined by Chapters [477,] 478[,] and 480.

SECTION 2. Section 475.0051, Government Code, is amended to read as follows:

Sec. 475.0051. APPLICABILITY OF SUBCHAPTER. This subchapter does not apply to or otherwise affect an event support contract under Chapter 478[, 479,] or 480 to which the office is not a party.

SECTION 3. Section 475.0054, Government Code, is amended to read as follows:

Sec. 475.0054. PREREQUISITE FOR EXECUTION OF GAMES SUPPORT CONTRACT. The office may agree to execute a games support contract only if:

(1) the office determines that[:

[(A)] this state's assurances and obligations under the contract are reasonable; and

[(B) any financial commitment of this state will be satisfied exclusively by recourse to the Pan American Games trust fund or the Olympic Games 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.

SECTION 4. Section 475.0103(a), Government Code, is amended to read as follows:

(a) A local organizing committee that submits a request under Section 475.0052 must:

(1) affirm as a part of that request that the committee is in full compliance with the ethical guidelines provided by all contracts entered into and rules adopted by the site selection organization, including the organization's requirements regarding disclosure of any financial interest a director, officer, or senior-level employee of the committee has in any proposed transaction with the committee; and

(2) not later than the 15th day of the first month following each calendar quarter, file with the secretary of the endorsing municipality for which the committee submits a request:

(A) a certification that the committee continues to comply with the ethical guidelines described by Subdivision (1); and

(B) a report of contributions to and expenditures by the committee, in the manner described by Subsection (b)[; and

[(3) file with the secretary of the endorsing municipality on April 15 of each year a copy of each financial statement a committee or a member of a committee is required to submit to the United States Olympic Committee during the preceding calendar year].

SECTION 5. Section 480.0051, Government Code, is amended to read as follows:

Sec. 480.0051. EVENTS ELIGIBLE FOR FUNDING. (a) Except as provided by Subsection (b), an [An] event is eligible for funding under this chapter only if:

(1) a site selection organization, after considering through a highly competitive selection process one or more sites not in this state, selects a site in this state for the event to be held:

(A) one time; or

(B) if the event is scheduled under an event contract or event support contract to be held each year for a period of years, one time in each year;

(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; and

(3) the event is held not more than one time in any year in this state or an adjoining state.

(b) Notwithstanding Subsection (a)(1), a site selection committee for an event to be held primarily in a county or municipality with a population of less than 500,000 is not required to consider a site outside of this state if the estimated attendance at the event is a number equal to at least 25 percent of the applicable county's or municipality's population.

SECTION 6. Section 480.00515, Government Code, is amended to read as follows:

Sec. 480.00515. SINGLE YEAR CLASSIFICATION FOR ELIGIBILITY PURPOSES FOR CERTAIN SPORTING EVENTS. For purposes of Sections 480.0051(a)(1) [480.0051(1)] and (3), a sporting event is considered to be held one time in each year if the event is held only one time in any annual season for that sport.

SECTION 7. Section 480.0052(b), Government Code, is amended to read as follows:

(b) An [Subject to Subsection (c), an] endorsing municipality or endorsing county with a population of more than 500,000 may during any 12-month period receive [submit requests for] funding under this chapter for not more than 10 events to which this section applies.

SECTION 8. Subchapter B, Chapter 480, Government Code, is amended by adding Section 480.0053 to read as follows:

Sec. 480.0053. TIME FOR REQUEST SUBMISSION. A municipality or county must submit a request to the office not later than the 90th day before the date the event begins.

SECTION 9. Section 480.0103, Government Code, is amended to read as follows:

Sec. 480.0103. TIME FOR DETERMINATION. The office shall determine the incremental increase in tax receipts under Section 480.0102 not later than the earlier of:

(1) the 30th day after the date the office receives the information for an event submitted by a local organizing committee, endorsing municipality, or endorsing county on which the office bases the determination as provided by Section 480.0102(b); and

(2) the 60th day [three months] before the date [of] the event begins.

SECTION 10. Section 480.0105(a), Government Code, is amended to read as follows:

(a) Not later than two [three] months before the date [of] an event begins, the office shall provide an estimate of the total amount of tax revenue that would be transferred or deposited to the events trust fund under this chapter in connection with that event if the event were held in this state at a site selected in accordance with an application by a local organizing committee, endorsing municipality, or endorsing county.

SECTION 11. Section 480.0153, Government Code, is amended to read as follows:

Sec. 480.0153. [OTHER] LOCAL MONEY. (a) An [In lieu of the municipal and county tax revenues remitted or retained under Section 480.0152, an] endorsing municipality or endorsing county shall [may] remit to the office for deposit to the events trust fund [other] local money in an amount equal to the total amount of municipal and county tax revenue determined under Sections 480.0102(a)(2)-(5).

(b) An endorsing municipality or endorsing county must remit the [other] local money described by Subsection (a) not later than the 90th day after the last day of an event.

[(c) For purposes of Section 480.0155, the amount deposited under this section is considered remitted municipal and county tax revenue.]

SECTION 12. Section 480.0155, Government Code, is amended by amending Subsection (a) and adding Subsection (a-1) to read as follows:

(a) The comptroller, at the direction of the office, shall transfer to the events trust fund a portion of the state tax revenue in an amount equal to the multiplier provided by Subsection (a-1) [6.25] multiplied by the amount of the municipal and county local money [tax revenue retained or] remitted under this chapter, 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.

(a-1) For purposes of Subsection (a), the multiplier is:

(1) 12.5 for an event held primarily in a county or municipality with a population of less than 50,000;

(2) 10.9375 for an event held primarily in a county or municipality with a population of 50,000 or more but less than 250,000;

(3) 9.375 for an event held primarily in a county or municipality with a population of 250,000 or more but less than 500,000; and

(4) 6.25 for an event held primarily in a county or municipality with a population of 500,000 or more.

SECTION 13. Section 480.0202(c), Government Code, is amended to read as follows:

(c) If the office makes a disbursement from the events trust fund, the office shall satisfy the obligation proportionately from the local money and state revenue in the fund.

SECTION 14. Section 480.0207, Government Code, is amended to read as follows:

Sec. 480.0207. REMITTANCE OF REMAINING FUND MONEY. (a) On payment of all municipal, county, or state obligations under an event support contract related to the location of an event in this state, the office shall remit to each endorsing entity, in proportion to the amount contributed by the entity, any money remaining in the events trust fund.

(b) The office shall remit money required by Subsection (a) not later than the 120th day after the date the office receives from an endorsing entity all event information the office requires under Section 480.0251.

SECTION 15. Sections 480.0251(b) and (c), Government Code, are amended to read as follows:

(b) A local organizing committee, endorsing municipality, or endorsing county must provide any annual audited financial statement required by the office not later than the 90th day [end of the fourth month] after the last day of the period covered by the financial statement.

(c) Not later than the 90th day after [After] the last day [conclusion] of an event and on the office's request, a local organizing committee, endorsing municipality, or endorsing county must provide information about the event, such as attendance figures, including an estimate of the number of people who attended the event who are not residents of this state, financial information, or other public information held by the committee, municipality, or county that the office considers necessary.

SECTION 16. Section 480.0253, Government Code, is amended to read as follows:

Sec. 480.0253. PLEDGE OF SURCHARGES TO GUARANTEE OBLIGATIONS. An endorsing municipality or endorsing county may guarantee its obligations under an event support contract and this chapter by pledging, in addition to the local money [tax revenue] deposited under Section 480.0153 [480.0152], surcharges from user fees charged in connection with the event, including parking or ticket fees.

SECTION 17. (a) The following provisions of the Government Code are repealed:

(1) Chapters 476, 477, and 479;

(2) Section 480.0052(c); and

(3) Section 480.0152.

(b) Section 26.041(j), Tax Code, is repealed.

SECTION 18. The following funds are abolished:

(1) the Pan American Games trust fund established under Section 476.0101, Government Code, as that section existed immediately before the effective date of this Act;

(2) the Olympic Games trust fund established under Section 477.0101, Government Code, as that section existed immediately before the effective date of this Act; and

(3) the motor sports racing trust fund established under Section 479.0101, Government Code, as that section existed immediately before the effective date of this Act.

SECTION 19. The applicable provisions of Chapters 475, 476, 477, 478, and 479, Government Code, as those chapters existed immediately before the effective date of this Act, including any fund established under those chapters, remain in effect as those provisions apply in relation to the particular games or event described by this section of this Act until all money from the fund for the particular games or event has been disbursed and all obligations under a games support contract or event support contract for the particular games or event have been satisfied. This section applies only if, before the effective date of this Act:

(1) pursuant to an application by a local organizing committee, endorsing municipality, or endorsing county, a site selection organization selects a site in this state for the particular games or event to which Chapter 476, 477, or 479 applies; and

(2) a local organizing committee, endorsing municipality, or endorsing county enters into a games support contract or event support contract for the particular games or event to which Chapter 476, 477, or 479 applies.

SECTION 20. The repeal by this Act of Chapters 476, 477, and 479, Government Code, does not apply to an offense committed under those chapters before the effective date of the repeal. An offense committed before the effective date of the repeal is governed by the law as it existed on the date the offense was committed, and the former law is continued in effect for that purpose. For purposes of this section, an offense was committed before the effective date of the repeal if any element of the offense occurred before that date.

SECTION 21. This Act takes effect September 1, 2025.