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