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A BILL TO BE ENTITLED
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AN ACT
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relating to the establishment and duties of an event oversight |
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committee for an event eligible to receive funding through a major |
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events trust fund; limiting payments from the fund to reimbursement |
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for attracting unique events to Texas. |
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BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: |
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SECTION 1. Section 5A(a), Chapter 1507 (S.B. 456), 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 by adding Subdivision |
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(6) to read as follows: |
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(6) "Event oversight committee" means a committee |
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established by the comptroller under Subsection (a-2) of this |
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section. |
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SECTION 2. Section 5A, Chapter 1507 (S.B. 456), Acts of the |
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76th Legislature, Regular Session, 1999 (Article 5190.14, Vernon's |
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Texas Civil Statutes), is amended by amending Subsections (a-1), |
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(b), (b-1), (c), (h), (i), (j), (k), (m), (p), (r), and (w) and |
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adding Subsections (a-2) and (x) to read as follows: |
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(a-1) An event not listed [included] in Subsection (a)(4) of |
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this section is ineligible [eligible] for funding under this |
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section. A listed event may receive funding under this section only |
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if: |
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(1) a site selection organization listed in Subsection |
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(a)(5) of this section selects a site located in this state for the |
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event after considering, through a highly competitive selection |
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process, one or more sites that are not located in this state; |
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(2) a site selection organization listed in Subsection |
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(a)(5) of this section selects a site in this state as the sole site |
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for the event; and |
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(3) the event is held not more than one time in any |
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year. |
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(a-2) If a site selection organization selects a site for an |
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event in this state and a request is submitted in accordance with |
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Subsection (p) of this section, the comptroller shall establish for |
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that event an event oversight committee composed of: |
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(1) the comptroller; |
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(2) the state auditor; and |
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(3) for each endorsing county and endorsing |
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municipality for the event, one representative who has significant |
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experience in auditing procedures or fiscal matters relevant to the |
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event. |
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(b) If a site selection organization selects a site for an |
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event in this state pursuant to an application by a local organizing |
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committee, endorsing municipality, or endorsing county, upon |
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request of a local organizing committee, endorsing municipality, or |
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endorsing county, the event oversight committee [comptroller] |
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shall determine for a one-year period that begins two months before |
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the date on which the event will begin, in accordance with |
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procedures developed by the comptroller: |
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(1) the incremental increase in the receipts to the |
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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 event oversight |
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committee [comptroller], to the preparation for and presentation of |
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the event and related activities; |
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(2) the incremental increase in the receipts collected |
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by the 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 event oversight committee [comptroller], to |
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the preparation for and presentation of the event and related |
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activities; |
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(3) the incremental increase in the receipts collected |
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by the 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 event |
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oversight committee [comptroller], to the preparation for and |
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presentation of the event 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 event oversight committee |
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[comptroller], to the preparation for and presentation of the event |
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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 event oversight committee |
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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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(b-1) A request for a determination of the amount of |
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incremental increase in tax receipts specified by Subsection (b) of |
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this section must be submitted to the event oversight committee |
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[comptroller] not earlier than one year and not later than three |
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months before the date the event begins. The event oversight |
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committee [comptroller] shall base the determination specified by |
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Subsection (b) of this section on information submitted by the |
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local organizing committee, endorsing municipality, or endorsing |
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county, and must make the determination not later than the 30th day |
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after the date the event oversight committee [comptroller] receives |
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the request and related information. |
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(c) For the purposes of Subsection (b)(1) of this section, |
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the event oversight committee [comptroller] shall designate as a |
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market area for the event each area in which the event oversight |
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committee [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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event oversight committee [comptroller]. The event oversight |
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committee [comptroller] shall determine the geographic boundaries |
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of each market area. An endorsing municipality or endorsing county |
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that has been selected as the site for the event must be included in |
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a market area for the event. |
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(h) The funds in the Major Events trust fund may be used to |
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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 the state or an endorsing |
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municipality or endorsing county to a site selection organization |
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under a game support contract or event support contract. Subject to |
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Subsection (k) of this section, the [, which] obligations may |
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include the payment of costs relating to the preparations necessary |
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[or desirable] for the conduct of the event and the payment of costs |
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of conducting the event, including necessary improvements or |
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renovations to existing facilities or other facilities and costs of |
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acquisition or construction of new facilities or other facilities |
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necessary for the event. |
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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 or event oversight committee to enable the comptroller |
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and event oversight committee to fulfill [the comptroller's] duties |
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imposed 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 or event oversight committee, if any, not later than |
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the end of the fourth month after the date the period covered by the |
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financial statement ends. After the conclusion of an event and on |
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the [comptroller's] request of the comptroller or another member of |
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the event oversight committee, a local organizing committee, |
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endorsing municipality, or endorsing county must provide |
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information relating to the event, such as attendance figures, |
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financial information, or other public information held by the |
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local organizing committee, endorsing municipality, or endorsing |
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county that the comptroller or other member of the event oversight |
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committee considers necessary. |
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(j) Not later than the 30th day after the date a request of a |
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local organizing committee, endorsing municipality, or endorsing |
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county is submitted to the event oversight committee [comptroller] |
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under Subsection (b-1) of this section, the event oversight |
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committee [comptroller] shall provide an estimate of the total |
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amount of tax revenue that would be deposited in the Major Events |
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trust fund under this section in connection with that event, if the |
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event were 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. A local organizing committee, |
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endorsing municipality, or endorsing county may submit the event |
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oversight committee's [comptroller's] estimate to a site selection |
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organization. |
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(k) The comptroller may make a disbursement from the Major |
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Events trust fund on the prior approval of each contributing |
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endorsing municipality or endorsing county for a purpose for which |
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a local organizing committee, an endorsing municipality, or an |
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endorsing county or the state is obligated under a game support |
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contract or event support contract, provided that the purpose for |
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which the obligation was incurred is strictly necessary for the |
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conduct of the event. If an obligation is incurred under a game |
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support contract or event support contract to make a structural |
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improvement to the site or to add a fixture to the site for purposes |
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of an event and that improvement or fixture is expected to derive |
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most of its value in subsequent uses of the site for future events, |
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a disbursement from the trust fund made for purposes of that |
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obligation is limited to five percent of the cost of the improvement |
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or fixture and the remainder of the obligation is not eligible for a |
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disbursement from the trust fund. A disbursement may not be made |
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from the trust fund that the comptroller determines would be used |
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for the purpose of soliciting the relocation of a professional |
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sports franchise located in this state. |
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(m) On payment of all state, municipal, or county |
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obligations under a game support contract or event support contract |
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related to the location of any particular event in the state, the |
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comptroller shall remit to each endorsing entity, in proportion to |
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the amount contributed by the entity, the lesser of: |
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(1) the amount the endorsing entity certifies to the |
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comptroller that the endorsing entity expended on the event; or |
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(2) the remainder of the [any] money [remaining] in |
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the trust fund. |
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(p) The comptroller may not undertake any of the |
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responsibilities or duties set forth in this section unless: |
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(1) a request is submitted by the municipality or the |
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county in which the event will be located; |
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(2) the event meets all the requirements for funding |
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under this section, including Subsection (a-1) of this section; |
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(3) the event oversight committee members unanimously |
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agree on the amounts of incremental increase in tax receipts |
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determined under Subsection (b) of this section; and |
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(4) the request is [. The request must be] accompanied |
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by documentation from a site selection organization listed in |
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Subsection (a)(5) of this section selecting the site for the event. |
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(r) This subsection applies only to an event that the event |
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oversight committee [comptroller] determines under Subsection (b) |
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of this section will generate at least $15 million in state and |
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local tax revenue. The comptroller and one or more endorsing |
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municipalities or endorsing counties may enter into an agreement to |
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provide that an amount equal to the amount of local tax revenue |
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determined by the event oversight committee [comptroller] under |
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Subsections (b)(2) through (5) of this section shall be remitted to |
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the comptroller by one or more endorsing municipalities or |
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endorsing counties and shall be deposited by the comptroller into |
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the Major Events trust fund before the event. In the 12 months |
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immediately preceding the event, the comptroller may deposit into |
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the trust fund an amount equal to the amount the state is required |
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to deposit under Subsection (f) of this section from any amounts |
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appropriated by the legislature for the purposes of this |
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subsection. The comptroller may make disbursements from the trust |
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fund in amounts that do not exceed the amounts deposited under this |
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subsection in accordance with the agreement to pay costs relating |
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to attracting and securing the event. An agreement under this |
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subsection may provide that, following the last day of an event, the |
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funds eligible for disbursement under Subsection (k) of this |
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section be held in the trust fund and made available to pay the cost |
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of securing the event in future years. |
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(w) Not later than 18 months after the last day of an event |
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eligible for disbursements from the Major Events trust fund for |
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costs associated with the event, the event oversight committee |
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[comptroller] using existing resources shall[:
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[(1)] complete a study in the market area of the event |
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on the measurable economic impact directly attributable to the |
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preparation for and presentation of the event and related |
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activities. The comptroller shall [; and
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[(2)] post on the comptroller's Internet website: |
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(1) the results of the study conducted under this |
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subsection, including any source documentation or other |
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information relied on by the event oversight committee for the |
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study; |
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(2) the amount of incremental increase in tax receipts |
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for the event determined under Subsection (b) of this section; |
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(3) the site selection organization documentation |
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described in Subsection (p)(4) of this section; and |
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(4) any source documentation or information described |
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under Subsection (i) of this section that was relied on by the event |
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oversight committee in making the unanimous determination of the |
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amount of incremental increase in tax receipts under Subsection (b) |
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of this section [Subdivision (1) of this subsection]. |
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(x) Subsection (w) of this section does not require |
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disclosure of information that is confidential under Chapter 552, |
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Government Code, or confidential or privileged under other law. |
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SECTION 3. The changes in law made by this Act apply only to |
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a request submitted to the comptroller by an endorsing municipality |
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or endorsing county under Section 5A, Chapter 1507 (S.B. 456), Acts |
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of the 76th Legislature, Regular Session, 1999 (Article 5190.14, |
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Vernon's Texas Civil Statutes), on or after the effective date of |
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this Act. A request submitted under Section 5A before that date is |
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governed by the law in effect on the date the request is submitted, |
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and that law is continued in effect for that purpose. |
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SECTION 4. 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, 2013. |