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AN ACT
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relating to facilitating and supporting efforts of certain |
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municipalities and counties to promote economic development, |
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including hosting certain major sporting or athletic events. |
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BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: |
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SECTION 1. Section 4B, Development Corporation Act of 1979 |
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(Article 5190.6, Vernon's Texas Civil Statutes), is amended by |
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adding Subsection (e-2) to read as follows: |
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(e-2) At an election called and held under Subsection (d) of |
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this section, the eligible city may also allow the voters to vote on |
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a ballot proposition that limits the length of time that a sales and |
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use tax may be imposed. An eligible city that imposes a tax for a |
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limited time under this subsection may later extend the period of |
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the tax's imposition or reimpose the tax only if the extension or |
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reimposition is authorized by a majority of the qualified voters of |
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the city voting in an election called and held for that purpose in |
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the same manner as an election held under Section 4A(n) of this Act. |
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Additionally, at an election held under Subsection (d) of this |
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section, the city may also allow the voters to vote on a ballot |
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proposition that limits the use of the sales and use tax to a |
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specific project. A corporation that has been created to perform a |
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specific project as provided by this subsection may retain its |
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corporate existence and perform other projects as may be approved |
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by the voters of the city under an election called and held for that |
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purpose in the same manner as Section 4A(r) of this Act provides for |
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an election held under Section 4A(d) of this Act. Before expending |
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funds to undertake a project, a corporation shall hold a public |
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hearing as otherwise provided by this section. |
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SECTION 2. Subsection (n), Section 4B, Development |
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Corporation Act of 1979 (Article 5190.6, Vernon's Texas Civil |
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Statutes), is amended to read as follows: |
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(n) Before expending funds to undertake a project, a |
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corporation under this section shall hold at least one public |
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hearing on the proposed project. A corporation the creation of |
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which was authorized by an eligible city with a population of less |
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than 20,000 is not required to hold a public hearing under this |
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subsection if the proposed project is defined by Section 2 of this |
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Act. |
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SECTION 3. Subdivision (4), Subsection (a), Section 5B, |
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Chapter 1507, Acts of the 76th Legislature, Regular Session, 1999 |
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(Article 5190.14, Vernon's Texas Civil Statutes), is amended to |
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read as follows: |
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(4) "Motor sports racing event" means a specific |
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automobile racing event sanctioned by the Automobile Competition |
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Committee for the United States (ACCUS) and held at a temporary |
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event venue [for a particular year referred to as the United States
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Grand Prix, or a specific automobile racing event that is part of
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the Champ Car World Series or the American Le Mans Series]. The |
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term includes any events and activities held, sponsored, or |
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endorsed by the site selection organization in conjunction with the |
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racing event. |
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SECTION 4. Chapter 1507, Acts of the 76th Legislature, |
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Regular Session, 1999 (Article 5190.14, Vernon's Texas Civil |
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Statutes), is amended by adding Section 5C to read as follows: |
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Sec. 5C. SPORTING EVENT TRUST FUND FOR CERTAIN |
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MUNICIPALITIES AND COUNTIES. (a) In this section: |
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(1) "Endorsing county" means a county with a |
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population of 800,000 or more that contains a site selected by a |
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site selection organization for one or more events. |
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(2) "Endorsing municipality" means a municipality |
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with a population of 500,000 or more that contains a site selected |
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by a site selection organization for one or more events. |
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(3) "Event" means a National Collegiate Athletic |
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Association regional tournament or playoff game, a Senior Olympic |
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activity, including a training program or feeder program sanctioned |
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by the National Senior Games Association, or a major sporting or |
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athletic event or a related series of events sanctioned by a site |
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selection organization. The term includes any activities related |
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to or associated with the event. |
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(4) "Event support contract" means a joinder |
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undertaking, a joinder agreement, or a similar contract executed by |
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an endorsing municipality or endorsing county and a site selection |
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organization. |
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(5) "Site selection organization" means the United |
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States Olympic Committee (USOC), United States Youth Soccer |
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Association (USYSA), United States Bowling Congress (USBC), |
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Amateur Softball Association of America (ASA), National Senior |
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Games Association (NSGA), American Youth Football and Cheer (AYF), |
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United States Lacrosse (USL), National Collegiate Athletic |
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Association (NCAA), United States Tennis Association (USTA), |
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Special Olympics, National Association for Stock Car Auto Racing |
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(NASCAR), Breeders' Cup, or another major nationally or |
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internationally recognized sports organization. |
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(b) If a site selection organization, after considering |
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through a highly competitive process one or more sites that are not |
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located in this state, selects a site for an event in this state |
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pursuant to an application by a local organizing committee, |
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endorsing municipality, or endorsing county, not later than three |
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months before the date of the event, the comptroller shall |
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determine for the 30-day period that ends at the end of the day |
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after the date on which the event will be held or, if the event |
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occurs on more than one day, after the last date on which the event |
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will be held, in accordance with procedures developed by the |
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comptroller: |
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(1) the incremental increase in the receipts to this |
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state from taxes imposed under Chapters 151, 152, 156, and 183, Tax |
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Code, and under Title 5, Alcoholic Beverage Code, within the market |
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areas designated under Subsection (c) of this section, that is |
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directly attributable, as determined by the comptroller, to the |
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preparation for and presentation of the event and related |
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activities; |
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(2) the incremental increase in the receipts collected |
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by this state on behalf of each endorsing municipality in the market |
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area from the sales and use tax imposed by each endorsing |
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municipality under Section 321.101(a), Tax Code, and the mixed |
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beverage tax revenue to be received by each endorsing municipality |
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under Section 183.051(b), Tax Code, that is directly attributable, |
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as determined by the comptroller, to the preparation for and |
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presentation of the event and related activities; |
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(3) the incremental increase in the receipts collected |
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by this state on behalf of each endorsing county in the market area |
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from the sales and use tax imposed by each endorsing county under |
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Section 323.101(a), Tax Code, and the mixed beverage tax revenue to |
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be received by each endorsing county under Section 183.051(b), Tax |
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Code, that is directly attributable, as determined by the |
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comptroller, to the preparation for and presentation of the event |
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and related activities; |
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(4) the incremental increase in the receipts collected |
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by each endorsing municipality in the market area from the hotel |
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occupancy tax imposed under Chapter 351, Tax Code, that is directly |
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attributable, as determined by the comptroller, to the preparation |
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for and presentation of the event and related activities; and |
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(5) the incremental increase in the receipts collected |
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by each endorsing county in the market area from the hotel occupancy |
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tax imposed under Chapter 352, Tax Code, that is directly |
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attributable, as determined by the comptroller, to the preparation |
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for and presentation of the event and related activities. |
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(c) For the purposes of Subsection (b)(1) of this section, |
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the comptroller shall designate as a market area for the event each |
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area in which the comptroller determines there is a reasonable |
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likelihood of measurable economic impact directly attributable to |
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the preparation for and presentation of the event and related |
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activities, including areas likely to provide venues, |
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accommodations, and services in connection with the event based on |
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the proposal provided by the local organizing committee to the |
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comptroller. The comptroller shall determine the geographic |
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boundaries of each market area. An endorsing municipality or |
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endorsing county that has been selected as the site for the event |
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must be included in a market area for the event. |
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(d) Each endorsing municipality or endorsing county shall |
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remit to the comptroller and the comptroller shall deposit into a |
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trust fund created by the comptroller and designated as the |
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sporting events trust fund the amount of the municipality's or |
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county's hotel occupancy tax revenue determined under Subsection |
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(b)(4) or (5) of this section, less any amount of the revenue that |
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the municipality or county determines is necessary to meet the |
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obligations of the municipality or county. The comptroller shall |
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retain the amount of sales and use tax revenue and mixed beverage |
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tax revenue determined under Subsection (b)(2) or (3) of this |
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section from the amounts otherwise required to be sent to the |
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municipality under Sections 321.502 and 183.051(b), Tax Code, or to |
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the county under Sections 323.502 and 183.051(b), Tax Code, and |
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deposit into the trust fund the tax revenues, less any amount of the |
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revenue that the municipality or county determines is necessary to |
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meet the obligations of the municipality or county. The |
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comptroller shall begin retaining and depositing the local tax |
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revenues with the first distribution of that tax revenue that |
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occurs after the first day of the period described by Subsection (b) |
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of this section and shall discontinue retaining the local tax |
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revenues under this subsection when the amount of the applicable |
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tax revenue determined under Subsection (b)(2) or (3) of this |
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section has been retained. The sporting events trust fund is |
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established outside the state treasury and is held in trust by the |
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comptroller for administration of this section. Money in the trust |
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fund may be disbursed by the comptroller without appropriation only |
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as provided by this section. |
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(e) In addition to the tax revenue deposited in the sporting |
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events trust fund under Subsection (d) of this section, an |
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endorsing municipality or endorsing county may guarantee its |
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obligations under an event support contract and this section by |
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pledging surcharges from user fees, including parking or ticket |
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fees, charged in connection with the event. |
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(f) The comptroller shall deposit into the sporting events |
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trust fund a portion of the state tax revenue determined under |
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Subsection (b)(1) of this section in an amount equal to 6.25 times |
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the amount of the local sales and use tax revenue and mixed beverage |
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tax revenue retained and the hotel occupancy tax revenue remitted |
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by an endorsing municipality or endorsing county under Subsection |
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(d) of this section. |
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(g) To meet its obligations under an event support contract |
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to improve, construct, renovate, or acquire facilities or to |
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acquire equipment, an endorsing municipality by ordinance or an |
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endorsing county by order may authorize the issuance of notes. An |
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endorsing municipality or endorsing county may provide that the |
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notes be paid from and secured by amounts on deposit or amounts to |
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be deposited into the sporting events trust fund or surcharges from |
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user fees, including parking or ticket fees, charged in connection |
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with the event. Any note issued must mature not later than seven |
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years from its date of issuance. |
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(h) The money in the sporting events trust fund may be used |
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to pay the principal of and interest on notes issued by an endorsing |
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municipality or endorsing county under Subsection (g) of this |
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section and to fulfill obligations of this state or an endorsing |
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municipality or endorsing county to a site selection organization |
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under an event support contract, which obligations may include the |
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payment of costs relating to the preparations necessary or |
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desirable for the conduct of the event and the payment of costs of |
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conducting the event, including improvements or renovations to |
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existing facilities or other facilities and costs of acquisition or |
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construction of new facilities or other facilities. |
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(i) A local organizing committee, endorsing municipality, |
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or endorsing county shall provide information required by the |
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comptroller to enable the comptroller to fulfill the comptroller's |
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duties under this section, including annual audited statements of |
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any financial records required by a site selection organization and |
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data obtained by the local organizing committee, an endorsing |
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municipality, or an endorsing county relating to attendance at the |
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event and to the economic impact of the event. A local organizing |
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committee, endorsing municipality, or endorsing county must |
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provide an annual audited financial statement required by the |
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comptroller, if any, not later than the end of the fourth month |
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after the date the period covered by the financial statement ends. |
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(j) The comptroller shall provide an estimate not later than |
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three months before the date of an event of the total amount of tax |
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revenue that would be deposited in the sporting events trust fund |
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under this section in connection with that event, if the event were |
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to be held in this state at a site selected pursuant to an |
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application by a local organizing committee, endorsing |
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municipality, or endorsing county. The comptroller shall provide |
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the estimate on request to a local organizing committee, endorsing |
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municipality, or endorsing county. A local organizing committee, |
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endorsing municipality, or endorsing county may submit the |
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comptroller's estimate to a site selection organization. |
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(k) The comptroller may make a disbursement from the |
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sporting events trust fund on the prior approval of each |
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contributing endorsing municipality or endorsing county for a |
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purpose for which an endorsing municipality or endorsing county or |
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this state is obligated under an event support contract. A |
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disbursement may not be made from the trust fund that the |
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comptroller determines would be used for the purpose of soliciting |
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the relocation of a professional sports franchise located in this |
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state. |
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(l) If a disbursement is made from the sporting events trust |
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fund under Subsection (k) of this section, the obligation shall be |
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satisfied proportionately from the state and local revenue in the |
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trust fund. |
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(m) On payment of all state, municipal, or county |
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obligations under an event support contract related to the location |
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of any particular event in this state, the comptroller shall remit |
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to each endorsing entity, in proportion to the amount contributed |
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by the entity, any money remaining in the sporting events trust |
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fund. |
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(n) This section may not be construed as creating or |
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requiring a state guarantee of obligations imposed on this state or |
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an endorsing municipality or endorsing county under an event |
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support contract or other agreement relating to hosting one or more |
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events in this state. |
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(o) The comptroller may not undertake any of the |
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responsibilities or duties set forth in this section unless a |
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request is submitted by the municipality or the county in which the |
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event will be located. The request must be accompanied by |
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documentation from a site selection organization selecting the site |
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for the event. |
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SECTION 5. Subsection (a), Section 7, Chapter 1507, Acts of |
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the 76th Legislature, Regular Session, 1999 (Article 5190.14, |
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Vernon's Texas Civil Statutes), is amended to read as follows: |
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(a) The department shall review requests from a local |
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organizing committee, endorsing municipality, or endorsing county |
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that the department, on behalf of the state, enter into a games |
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support contract that is required by a site selection organization |
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in connection with the committee's, municipality's, or county's bid |
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to host any of the games. This section does not affect or apply to |
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an event support contract under Section 5A, [or Section] 5B, or 5C |
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of this Act to which the department is not a party. |
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SECTION 6. This Act takes effect immediately if it receives |
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a vote of two-thirds of all the members elected to each house, as |
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provided by Section 39, Article III, Texas Constitution. If this |
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Act does not receive the vote necessary for immediate effect, this |
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Act takes effect September 1, 2007. |
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______________________________ |
______________________________ |
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President of the Senate |
Speaker of the House |
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I hereby certify that S.B. No. 1523 passed the Senate on |
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May 1, 2007, by the following vote: Yeas 31, Nays 0; and that the |
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Senate concurred in House amendments on May 25, 2007, by the |
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following vote: Yeas 30, Nays 0. |
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______________________________ |
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Secretary of the Senate |
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I hereby certify that S.B. No. 1523 passed the House, with |
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amendments, on May 23, 2007, by the following vote: Yeas 139, |
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Nays 7, one present not voting. |
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______________________________ |
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Chief Clerk of the House |
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Approved: |
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______________________________ |
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Date |
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______________________________ |
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Governor |