S.B. No. 1515
 
 
 
 
AN ACT
  relating to a major events trust fund, a motor sports racing trust
  fund, and an events trust fund for sporting and non-sporting
  events.
         BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
         SECTION 1.  Section 1, 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 Subdivisions (1),
  (1-a), (2), (5), (6), (7), and (8) and adding Subdivision (2-a) to
  read as follows:
               (1)  "Department" means the [Texas Department of]
  Economic Development and Tourism Division, Office of the Governor
  [or its successor].
               (1-a)  "Endorsing county" means an endorsing county for
  purposes of Section 5, [or] 5A, 5B, or 5C of this Act.
               (2)  "Endorsing municipality" means an endorsing
  municipality for purposes of Section 4, 5, 5A, [or] 5B, or 5C of
  this Act.
               (2-a)  "Event" means a game or event as defined by
  Section 5A, 5B, or 5C of this Act.
               (5)  "Joinder agreement" means an agreement entered
  into by:
                     (A)  the department on behalf of this state and a
  site selection organization setting out representations and
  assurances by the state in connection with the selection of a site
  in this state for the location of a game or event [any of the games];
  or
                     (B)  a local organizing committee, an endorsing
  municipality, an endorsing county, or more than one local
  organizing committee, endorsing municipality, or endorsing county
  acting collectively, and a site selection organization setting out
  representations and assurances by each local organizing committee,
  endorsing municipality, or endorsing county in connection with the
  selection of a site in this state for the location of a game or event
  [any of the games].
               (6)  "Joinder undertaking" means an agreement entered
  into by:
                     (A)  the department on behalf of this state and a
  site selection organization that the state will execute a joinder
  agreement if [in the event that] the site selection organization
  selects a site in this state for a game or event [any of the games];
  or
                     (B)  a local organizing committee, an endorsing
  municipality, an endorsing county, or more than one local
  organizing committee, endorsing municipality, or endorsing county
  acting collectively, and a site selection organization that each
  local organizing committee, endorsing municipality, or endorsing
  county will execute a joinder agreement if [in the event that] the
  site selection organization selects a site in this state for a game
  or event [any of the games].
               (7)  "Local organizing committee" means a nonprofit
  corporation or its successor in interest that:
                     (A)  has been authorized by an endorsing
  municipality, endorsing county, or more than one endorsing
  municipality or county acting collectively to pursue an application
  and bid on the applicant's behalf to a site selection organization
  for selection as the site of a game or event [one or more games]; or
                     (B)  with the authorization of an endorsing
  municipality, endorsing county, or more than [that] one endorsing
  municipality or county acting collectively, has executed an
  agreement with a site selection organization regarding a bid to
  host a game or event [one or more games].
               (8)  "Site selection organization" means a site
  selection organization as defined by Sections 5, 5A, and 5C of this
  Act [the United States Olympic Committee, the International Olympic
  Committee, the Pan American Sports Organization, the National
  Football League, the National Collegiate Athletic Association, the
  National Basketball Association, the National Hockey League, Major
  League Baseball, Federation Internationale de Football Association
  (FIFA), the International World Games Association, the Automobile
  Competition Committee for the United States (ACCUS) affiliated with
  the Federation Internationale de l'Automobile, the Champ Car
  organization, or the American Le Mans Series organization].
         SECTION 2.  Sections 2 and 3, 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:
         Sec. 2.  PURPOSE. The purpose of this Act is to provide
  assurances required by a site selection organization sponsoring a
  [one or more major] sporting or non-sporting game or event
  [athletic events] and to provide financing for the costs of:
               (1)  applying or bidding for selection as the site of a
  game [major sporting] or event [athletic events] in this state;
               (2)  making the preparations necessary and desirable
  for the conduct of a game [major sporting] or event [athletic
  events] in this state, including the construction or renovation of
  facilities to the extent authorized by this Act; and
               (3)  conducting a game [major sporting] or event
  [athletic events] in this state.
         Sec. 3.  LEGISLATIVE FINDINGS. The conduct in this state of
  one or more games [major sporting] or [athletic] events will:
               (1)  provide invaluable public visibility throughout
  the nation or world for this state and the communities where the
  games [major sporting] or [athletic] events are held;
               (2)  encourage and provide major economic benefits to
  the communities where the games [major sporting] or [athletic]
  events are held and to the entire state; and
               (3)  provide opportunities for the creation of jobs by
  local and Texas businesses that pay a living wage.
         SECTION 3.  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 [OTHER] EVENTS TRUST FUND.
         SECTION 4.  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 amending Subsections (a)
  through (m), (o), and (p) and adding Subsections (a-1), (b-1),
  (d-1), (r), (s), (t), (u), and (v) to read as follows:
         (a)  In this section:
               (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 comptroller; and
                           (iii)  is a party to an event support
  contract [games].
               (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 comptroller; and
                           (iii)  is a party to an event support
  contract [games].
               (3)  "Event support contract" means a joinder
  undertaking, joinder agreement, or a similar contract executed by a
  local organizing committee, an endorsing municipality, or an
  endorsing county and a site selection organization.
               (4)  "Event" ["Game"] means a Super Bowl, a National
  Collegiate Athletic Association Final Four tournament game, the
  National Basketball Association All-Star Game, the National Hockey
  League All-Star Game, the Major League Baseball All-Star Game, a
  National Collegiate Athletic Association Bowl Championship Series
  game, a World Cup Soccer game, 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, [or] 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 Breeders' Cup World
  Championships, or a Formula One automobile race. The term includes
  any [events and] activities related to or associated with an event
  [the games].
               (5)  "Site selection organization" means the National
  Football League, the National Collegiate Athletic Association, the
  National Basketball Association, the National Hockey League, Major
  League Baseball, the Federation Internationale de Football
  Association (FIFA), the International World Games Association, the
  United States Olympic Committee[,] or the national governing body
  of a sport that is recognized [as such] by the United States Olympic
  Committee, the National Thoroughbred Racing Association, Formula
  One Management Limited, or the Federation Internationale de
  l'Automobile.
         (a-1)  An event included in Subsection (a)(4) of this section
  is eligible for funding under this section only if:
               (1)  a site selection organization selects a site
  located in this state for the event 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 the sole site for the event; and
               (3)  the event is held not more than one time in any
  year.
         (b)  If a site selection organization selects a site for an
  event [a game] 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 game or six
  months before the date of the game] upon request of a local
  organizing committee, endorsing municipality, or endorsing county,
  the comptroller shall determine for a one-year [the two-week]
  period that begins two months before [ends at the end of the day
  after] the date on which the event [game] will begin [be held], in
  accordance with procedures developed by the 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 comptroller, to the
  preparation for and presentation of the event [game] and related
  activities [events];
               (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 comptroller, to the preparation for and
  presentation of the event [game] and related activities [events];
               (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
  comptroller, to the preparation for and presentation of the event
  [game] and related activities [events];
               (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 [game] and related activities
  [events]; 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 [game] and related activities
  [events].
         (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 comptroller not earlier than
  one year and not later than three months before the date the event
  begins. The 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 comptroller receives the request and related
  information.
         (c)  For the purposes of Subsection (b)(1) of this section,
  the comptroller shall designate as a market area for the event
  [game] 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
  [game] and related activities [events], including areas likely to
  provide venues, accommodations, and services in connection with the
  event [game] 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 [game] must be included in a market area for the event
  [game].
         (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 Major
  [Other] Events trust fund the amount of the municipality's or
  county's hotel occupancy tax revenue determined 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 shall
  retain 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 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 [two-week] period
  described by Subsection (b) of this section or at a time otherwise
  determined to be practicable by the comptroller 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 (b)(3) of this section has been retained. The
  Major [Other] Events 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
  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 comptroller for deposit in
  the Major Events trust fund other local funds in an amount equal to
  the total amount of local tax revenue determined under Subsections
  (b)(2) through (5) of this section. The amount deposited by the
  comptroller into the Major Events trust fund under this subsection
  is subject to Subsection (f) of this section.
         (e)  In addition to the tax revenue deposited in the Major
  [Other] Events trust fund under Subsection (d) of this section, an
  endorsing municipality or endorsing county may guarantee its
  obligations under an event [a game] support contract and this
  section by pledging surcharges from user fees, including parking or
  ticket fees, charged in connection with the event [game]. An
  endorsing municipality or endorsing county may collect and remit to
  the comptroller surcharges and user fees attributable to the event
  for deposit into the Major Events trust fund.
         (f)  The comptroller shall deposit into the Major Events
  trust fund a portion of the state tax revenue not to exceed the
  amount determined 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)  [and] mixed beverage tax revenue;
               (3)  [retained and the] hotel occupancy tax revenue;
  and
               (4)  surcharge and user fee revenue [remitted by an
  endorsing municipality or endorsing county under Subsection (d) of
  this section].
         (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 [Other] Events
  trust fund or surcharges from user fees, including parking or
  ticket fees, charged in connection with the event [game]. Any note
  issued must mature not later than seven years from its date of
  issuance.
         (h)  The funds in the Major [Other] 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 the state or an endorsing
  municipality or endorsing county to a site selection organization
  under a game 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 event
  [game] and the payment of costs of conducting the event [game],
  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 [game] and to the economic impact of the event [game]. 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. After the conclusion of an event and on the comptroller's
  request, a local organizing committee, endorsing municipality, or
  endorsing county must provide information relating to the event,
  such as attendance figures, financial information, or other public
  information held by the local organizing committee, endorsing
  municipality, or endorsing county that the comptroller considers
  necessary.
         (j)  Not [The comptroller shall provide an estimate not]
  later than the 30th day after the date a [three months before the
  date of a game or six months before the date of the game upon]
  request of a local organizing committee, endorsing municipality, or
  endorsing county is submitted to the comptroller under Subsection
  (b-1) of this section, the comptroller shall provide an estimate of
  the total amount of tax revenue that would be deposited in the Major
  [Other] Events trust fund under this section in connection with
  that event [game], if the event [game] 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 Major
  [Other] Events trust fund on the prior approval of each
  contributing endorsing municipality or endorsing county for a
  purpose for which a local organizing committee, an endorsing
  municipality, or an endorsing county or the state is obligated
  under a game support contract or 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 Major [Other] Events
  trust fund under Subsection (k), 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 [game] in the state,
  the comptroller shall remit to each endorsing entity, in proportion
  to the amount contributed by the entity, any money remaining in the
  trust fund.
         (o)  This section may not be construed as creating or
  requiring a state guarantee of obligations imposed on the state or
  an endorsing municipality or endorsing county under an event [a
  game] support contract or other agreement relating to hosting one
  or more events [games] in this state.
         (p)  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 [and] the county in
  which the event [game] will be located. The request must be
  accompanied by documentation from a site selection organization
  selecting the site for the event [game].
         (r)  This subsection applies only to an event that the
  comptroller determines under Subsection (b) of this section will
  generate at least $15 million in state and local tax revenue. The
  comptroller and one or more endorsing municipalities or endorsing
  counties may enter into an agreement to provide that an amount equal
  to the amount of local tax revenue determined by the comptroller
  under Subsections (b)(2) through (5) of this section shall be
  remitted to the comptroller by one or more endorsing municipalities
  or endorsing counties and shall be deposited by the comptroller
  into the Major Events trust fund before the event. In the 12 months
  immediately preceding the event, the comptroller may deposit into
  the trust fund an amount equal to the amount the state is required
  to deposit under Subsection (f) of this section from any amounts
  appropriated by the legislature for the purposes of this
  subsection. The comptroller may make disbursements from the trust
  fund in amounts that do not exceed the amounts deposited under this
  subsection in accordance with the agreement to pay costs relating
  to attracting and securing the event. An agreement under this
  subsection may provide that, following the last day of an event, the
  funds eligible for disbursement under Subsection (k) of this
  section be held in the trust fund and made available to pay the cost
  of securing the event in future years.
         (s)  The term of an agreement entered into under Subsection
  (r) of this section may not exceed 10 years and must terminate:
               (1)  on the final termination date provided in the
  agreement; or
               (2)  if the event covered by the agreement is not held
  during any 18-month period covered by the agreement.
         (t)  On termination of an agreement entered into under
  Subsection (r) of this section, the total amount of the state's
  initial contribution under the agreement must be repaid to the
  state from funds disbursed under Subsection (k) of this section or
  from any other source specified in the agreement. An agreement
  entered into under Subsection (r) of this section must include
  terms that the comptroller determines are necessary to protect the
  state's interest, including a provision for a performance bond or
  other guarantee of repayment if the event is not held in the state
  after a disbursement has been made.
         (u)  The comptroller shall deposit any amount appropriated
  by the legislature for the purposes of Subsection (r) of this
  section into the Major Event trust fund for the limited purpose of
  paying the costs of attracting and securing an event eligible under
  that subsection.
         (v)  The comptroller may adopt rules necessary to implement
  this section.
         SECTION 5.  Subdivisions (1) and (2), Subsection (a),
  Section 5B, 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 county [with a
  population of one million or more] that contains a site selected by
  a site selection organization for one or more motor sports racing
  events.
               (2)  "Endorsing municipality" means a municipality
  [with a population of one million or more] that contains a site
  selected by a site selection organization for one or more motor
  sports racing events.
         SECTION 6.  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 [SPORTING EVENT] TRUST FUND FOR CERTAIN
  MUNICIPALITIES AND COUNTIES.
         SECTION 7.  Section 5C, Chapter 1507 (S.B. 456), Acts of the
  76th Legislature, Regular Session, 1999 (Article 5190.14, Vernon's
  Texas Civil Statutes), is amended by amending Subsections (a), (b),
  and (d) through (m), and by adding Subsections (a-1), (c-1), (d-1),
  (p), and (q) to read as follows:
         (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 an [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 held in this state for
  which a local organizing committee, endorsing county, or endorsing
  municipality seeks approval from [sanctioned by] a site selection
  organization to hold the event at a site in this state. 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
  a local organizing committee, an endorsing municipality, or an
  endorsing county and a site selection organization.
               (5)  "Site selection organization" means an entity that
  conducts or considers conducting an eligible event in this state
  [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].
         (a-1)  An event is eligible for funding under this section
  only if:
               (1)  a site selection organization selects a site for
  the event located in this state 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; and
               (3)  the event is held not more than one time in this
  state or an adjoining state in any year.
         (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-1)  The 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 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 and designated as the Events
  [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 or at a time otherwise determined to be practicable
  by the comptroller 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 Events [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.
         (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 comptroller for deposit in
  the Events trust fund other local funds in an amount equal to the
  total amount of local tax revenue determined under Subsections
  (b)(2) through (5) of this section. The amount deposited by the
  comptroller into the Events trust fund under this subsection is
  subject to Subsection (f) of this section.
         (e)  In addition to the tax revenue deposited in the Events
  [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. An endorsing
  municipality or endorsing county may collect and remit to the
  comptroller surcharges and user fees attributable to the event for
  deposit into the Events trust fund.
         (f)  The comptroller shall deposit into the Events [sporting
  events] trust fund a portion of the state tax revenue not to exceed
  the amount determined 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)  [and] mixed beverage tax revenue;
               (3)  [retained and the] hotel occupancy tax revenue;
  and
               (4)  surcharge and user fee 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 Events [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 Events [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.
  After the conclusion of an event and on the comptroller's request, a
  local organizing committee, endorsing municipality, or endorsing
  county must provide information relating to the event, such as
  attendance figures, financial information, or other public
  information held by the local organizing committee, endorsing
  municipality, or endorsing county that the comptroller considers
  necessary.
         (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 Events [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 Events
  [sporting events] trust fund on the prior approval of each
  contributing endorsing municipality or endorsing county for a
  purpose for which a local organizing committee, an endorsing
  municipality, or an endorsing county or this state is obligated
  under an event support contract. 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 Events [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 Events [sporting events]
  trust fund.
         (p)  The 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 comptroller may
  consider whether:
               (1)  the event has been held in this state on previous
  occasions; and
               (2)  changes to the character of the event could affect
  the incremental increase in receipts collected and remitted to the
  state by an endorsing county or endorsing municipality under that
  subsection.
         SECTION 8.  Subsection (n), Section 5A, Chapter 1507 (S.B.
  456), Acts of the 76th Legislature, Regular Session, 1999 (Article
  5190.14, Vernon's Texas Civil Statutes), is repealed.
         SECTION 9. The changes in law made by this Act apply only to
  applications for participation in the Major Events trust fund or
  the Events trust fund that are received by the comptroller on or
  after September 1, 2009. An application for participation in the
  Other Events trust fund or the sporting events trust fund received
  before September 1, 2009, is governed by the law as it existed
  immediately before the effective date of this Act, and that law and
  the respective funds are continued in effect for that purpose.
         SECTION 10.  This Act takes effect September 1, 2009.
 
 
 
 
 
  ______________________________ ______________________________
     President of the Senate Speaker of the House     
 
         I hereby certify that S.B. No. 1515 passed the Senate on
  April 15, 2009, by the following vote: Yeas 26, Nays 4; and that
  the Senate concurred in House amendment on May 28, 2009, by the
  following vote: Yeas 28, Nays 3.
 
 
  ______________________________
  Secretary of the Senate    
 
         I hereby certify that S.B. No. 1515 passed the House, with
  amendment, on May 20, 2009, by the following vote: Yeas 119,
  Nays 16, one present not voting.
 
 
  ______________________________
  Chief Clerk of the House   
 
 
 
  Approved:
 
  ______________________________ 
              Date
 
 
  ______________________________ 
            Governor