83R7655 GCB-D
 
  By: Watson S.B. No. 765
 
 
 
A BILL TO BE ENTITLED
 
AN ACT
  relating to the establishment and duties of an event oversight
  committee for an event eligible to receive funding through a major
  events trust fund; limiting payments from the fund to reimbursement
  for attracting unique events to Texas.
         BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
         SECTION 1.  Section 5A(a), Chapter 1507 (S.B. 456), Acts of
  the 76th Legislature, Regular Session, 1999 (Article 5190.14,
  Vernon's Texas Civil Statutes), is amended by adding Subdivision
  (6) to read as follows:
               (6)  "Event oversight committee" means a committee
  established by the comptroller under Subsection (a-2) of this
  section.
         SECTION 2.  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-1),
  (b), (b-1), (c), (h), (i), (j), (k), (m), (p), (r), and (w) and
  adding Subsections (a-2) and (x) to read as follows:
         (a-1)  An event not listed [included] in Subsection (a)(4) of
  this section is ineligible [eligible] for funding under this
  section.  A listed event may receive funding under this section only
  if:
               (1)  a site selection organization listed in Subsection
  (a)(5) of this section 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 listed in Subsection
  (a)(5) of this section 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.
         (a-2)  If a site selection organization selects a site for an
  event in this state and a request is submitted in accordance with
  Subsection (p) of this section, the comptroller shall establish for
  that event an event oversight committee composed of:
               (1)  the comptroller;
               (2)  the state auditor; and
               (3)  for each endorsing county and endorsing
  municipality for the event, one representative who has significant
  experience in auditing procedures or fiscal matters relevant to the
  event.
         (b)  If a site selection organization selects a site for an
  event in this state pursuant to an application by a local organizing
  committee, endorsing municipality, or endorsing county, upon
  request of a local organizing committee, endorsing municipality, or
  endorsing county, the event oversight committee [comptroller]
  shall determine for a one-year period that begins two months before
  the date on which the event will begin, in accordance with
  procedures developed by the 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 event oversight
  committee [comptroller], to the preparation for and presentation of
  the event and related activities;
               (2)  the incremental increase in the receipts collected
  by the state on behalf of each endorsing municipality in the market
  area from the sales and use tax imposed by each endorsing
  municipality under Section 321.101(a), Tax Code, and the mixed
  beverage tax revenue to be received by each endorsing municipality
  under Section 183.051(b), Tax Code, that is directly attributable,
  as determined by the event oversight committee [comptroller], to
  the preparation for and presentation of the event and related
  activities;
               (3)  the incremental increase in the receipts collected
  by the state on behalf of each endorsing county in the market area
  from the sales and use tax imposed by each endorsing county under
  Section 323.101(a), Tax Code, and the mixed beverage tax revenue to
  be received by each endorsing county under Section 183.051(b), Tax
  Code, that is directly attributable, as determined by the event
  oversight committee [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 event oversight committee
  [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 event oversight committee
  [comptroller], to the preparation for and presentation of the event
  and related activities.
         (b-1)  A request for a determination of the amount of
  incremental increase in tax receipts specified by Subsection (b) of
  this section must be submitted to the event oversight committee
  [comptroller] not earlier than one year and not later than three
  months before the date the event begins.  The event oversight
  committee [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 event oversight committee [comptroller] receives
  the request and related information.
         (c)  For the purposes of Subsection (b)(1) of this section,
  the event oversight committee [comptroller] shall designate as a
  market area for the event each area in which the event oversight
  committee [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
  event oversight committee [comptroller].  The event oversight
  committee [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.
         (h)  The funds in the Major 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.  Subject to
  Subsection (k) of this section, the [, 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 necessary improvements or
  renovations to existing facilities or other facilities and costs of
  acquisition or construction of new facilities or other facilities
  necessary for the event.
         (i)  A local organizing committee, endorsing municipality,
  or endorsing county shall provide information required by the
  comptroller or event oversight committee to enable the comptroller
  and event oversight committee to fulfill [the comptroller's] duties
  imposed 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 or event oversight committee, 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 of the comptroller or another member of
  the event oversight committee, 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 or other member of the event oversight
  committee considers necessary.
         (j)  Not later than the 30th day after the date a request of a
  local organizing committee, endorsing municipality, or endorsing
  county is submitted to the event oversight committee [comptroller]
  under Subsection (b-1) of this section, the event oversight
  committee [comptroller] shall provide an estimate of the total
  amount of tax revenue that would be deposited in the Major 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. A local organizing committee,
  endorsing municipality, or endorsing county may submit the event
  oversight committee's [comptroller's] estimate to a site selection
  organization.
         (k)  The comptroller may make a disbursement from the Major
  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, provided that the purpose for
  which the obligation was incurred is strictly necessary for the
  conduct of the event.  If an obligation is incurred under a game
  support contract or event support contract to make a structural
  improvement to the site or to add a fixture to the site for purposes
  of an event and that improvement or fixture is expected to derive
  most of its value in subsequent uses of the site for future events,
  a disbursement from the trust fund made for purposes of that
  obligation is limited to five percent of the cost of the improvement
  or fixture and the remainder of the obligation is not eligible for a
  disbursement from the trust fund.  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.
         (m)  On payment of all state, municipal, or county
  obligations under a game support contract or event support contract
  related to the location of any particular event in the state, the
  comptroller shall remit to each endorsing entity, in proportion to
  the amount contributed by the entity, the lesser of:
               (1)  the amount the endorsing entity certifies to the
  comptroller that the endorsing entity expended on the event; or
               (2)  the remainder of the [any] money [remaining] in
  the trust fund.
         (p)  The comptroller may not undertake any of the
  responsibilities or duties set forth in this section unless:
               (1)  a request is submitted by the municipality or the
  county in which the event will be located;
               (2)  the event meets all the requirements for funding
  under this section, including Subsection (a-1) of this section;
               (3)  the event oversight committee members unanimously
  agree on the amounts of incremental increase in tax receipts
  determined under Subsection (b) of this section; and
               (4)  the request is [.  The request must be] accompanied
  by documentation from a site selection organization listed in
  Subsection (a)(5) of this section selecting the site for the event.
         (r)  This subsection applies only to an event that the event
  oversight committee [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 event oversight committee [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.
         (w)  Not later than 18 months after the last day of an event
  eligible for disbursements from the Major Events trust fund for
  costs associated with the event, the event oversight committee
  [comptroller] using existing resources shall[:
               [(1)]  complete a study in the market area of the event
  on the measurable economic impact directly attributable to the
  preparation for and presentation of the event and related
  activities. The comptroller shall [; and
               [(2)]  post on the comptroller's Internet website:
               (1)  the results of the study conducted under this
  subsection, including any source documentation or other
  information relied on by the event oversight committee for the
  study;
               (2)  the amount of incremental increase in tax receipts
  for the event determined under Subsection (b) of this section;
               (3)  the site selection organization documentation
  described in Subsection (p)(4) of this section; and
               (4)  any source documentation or information described
  under Subsection (i) of this section that was relied on by the event
  oversight committee in making the unanimous determination of the
  amount of incremental increase in tax receipts under Subsection (b)
  of this section [Subdivision (1) of this subsection].
         (x)  Subsection (w) of this section does not require
  disclosure of information that is confidential under Chapter 552,
  Government Code, or confidential or privileged under other law.
         SECTION 3.  The changes in law made by this Act apply only to
  a request submitted to the comptroller by an endorsing municipality
  or endorsing county under Section 5A, Chapter 1507 (S.B. 456), Acts
  of the 76th Legislature, Regular Session, 1999 (Article 5190.14,
  Vernon's Texas Civil Statutes), on or after the effective date of
  this Act. A request submitted under Section 5A before that date is
  governed by the law in effect on the date the request is submitted,
  and that law is continued in effect for that purpose.
         SECTION 4.  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, 2013.