By: Deuell, Davis	S.B. No. 1678
	Patrick

	A BILL TO BE ENTITLED
	relating to the events and expenses eligible for, reporting
	requirements concerning disbursements from, an audit by the state
	auditor of, and a study by the comptroller of the Major Events trust
	fund and the Events trust fund.
	BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
	SECTION 1.  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-1), (h), (i), (k), (p), and (w) and adding Subsections (x) and
	(y) 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 selects a site
	located in this state for the event to be held one time or, for an
	event scheduled to be held each year for a period of years under an
	event contract, one time each year for the period of years, 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 any
	year; and
	(4)  the amount of the incremental increase in tax
	receipts determined by the comptroller under Subsection (b) of this
	section equals or exceeds $1 million.
	(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 45 days [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.
	(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 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, including an estimate of the number of people expected to
	attend the event who are not residents of this state, 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, including an estimate of the number of attendees at the
	event who are not residents of this state, financial information,
	or other public information held by the local organizing committee,
	endorsing municipality, or endorsing county that the comptroller
	considers necessary.
	(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.  If an obligation is incurred
	under a games 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.  In considering
	whether to make a disbursement from the trust fund, the comptroller
	may not consider a contingency clause in an event support contract
	as relieving a local organizing committee's, endorsing
	municipality's, or endorsing county's obligation to pay a cost
	under the 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.
	(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; and
	(3)  the request is[.  The request must be] accompanied
	by documentation from a site selection organization selecting the
	site for the event.
	(w)  Not later than 10 [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 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 comptroller 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)(3) of this section;
	(4)  any source documentation or information described
	under Subsection (i) of this section that was relied on by the
	comptroller in making the determination of the amount of
	incremental increase in tax receipts under Subsection (b) of this
	section; and
	(5)  documentation verifying that:
	(A)  a request submitted by a local organizing
	committee, endorsing municipality, or endorsing county under
	Subsection (p) of this section is complete and certified as such by
	the comptroller;
	(B)  the determination on the amount of
	incremental increases in tax receipts under Subsection (b) of this
	section considered the information submitted by a local organizing
	committee, endorsing municipality, or endorsing county as required
	under Subsection (b-1) of this section; and
	(C)  each deadline established under this section
	was timely met [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.
	(y)  After the conclusion of an event, the comptroller shall
	compare information on the actual attendance figures provided to
	the comptroller under Subsection (i) of this section with the
	estimated attendance numbers used to determine the incremental
	increase in tax receipts under Subsection (b) of this section. If
	the actual attendance figures are significantly lower than the
	estimated attendance numbers, the comptroller may reduce the amount
	of a disbursement for an endorsing entity under the Major Events
	trust fund in proportion to the discrepancy between the actual and
	estimated attendance and in proportion to the amount contributed to
	the fund by the entity. The comptroller by rule shall define
	"significantly lower" for purposes of this subsection and provide
	the manner in which a disbursement may be proportionately reduced.
	This subsection does not affect the remittance of any money
	remaining in the fund in accordance with Subsection (m) of this
	section.
	SECTION 2.  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 adding Subsections (b-1),
	(b-2), (k-1), (r), (s), and (t) and amending Subsections (h), (i),
	and (k) to read as follows:
	(b-1)  An endorsing county or endorsing municipality may,
	during any 12-month period, request funding under this section for
	not more than 10 events, only three of which may be nonsporting
	events.
	(b-2)  An endorsing county may not submit a request for
	funding under this section for an event held at a location wholly
	within the corporate boundaries of a municipality.
	(h)  The money in the 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.  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 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, including an estimate of the number of people expected to
	attend the event who are not residents of this state, 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, including an estimate of the number of people who are not
	residents of this state who attended the event, financial
	information, or other public information held by the local
	organizing committee, endorsing municipality, or endorsing county
	that the comptroller considers necessary.
	(k)  The comptroller may make a disbursement from the 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,
	including an obligation to pay costs incurred in the conduct of the
	event and costs incurred in making preparations necessary for the
	event.  If an obligation is incurred under an 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.  In considering
	whether to make a disbursement from the trust fund, the comptroller
	may not consider a contingency clause in an event support contract
	as relieving a local organizing committee's, endorsing
	municipality's, or endorsing county's obligation to pay a cost
	under the contract.
	(k-1)  A disbursement may not be made from the trust fund
	that the comptroller determines would be used for the purpose of:
	(1)  soliciting the relocation of a professional sports
	franchise located in this state;
	(2)  constructing an arena, stadium, or convention
	center;
	(3)  conducting usual and customary maintenance of a
	facility; or
	(4)  making major renovations to a facility.
	(r)  The comptroller may adopt a model event support contract
	and make the contract available on the comptroller's Internet
	website.
	(s)  The comptroller may adopt rules necessary to implement
	this section.
	(t)  After the conclusion of an event, the comptroller shall
	compare information on the actual attendance figures provided to
	the comptroller under Subsection (i) of this section with the
	estimated attendance numbers used to determine the incremental
	increase in tax receipts under Subsection (b) of this section. If
	the actual attendance figures are significantly lower than the
	estimated attendance numbers, the comptroller may reduce the amount
	of a disbursement for an endorsing entity under the Events trust
	fund in proportion to the discrepancy between the actual and
	estimated attendance and in proportion to the amount contributed to
	the fund by the entity. The comptroller by rule shall define
	"significantly lower" for purposes of this subsection and provide
	the manner in which a disbursement may be proportionately reduced.
	This subsection does not affect the remittance of any money
	remaining in the fund in accordance with Subsection (m) of this
	section.
	SECTION 3.  Subsections (r), (s), (t), and (u), Section 5A,
	Chapter 1507 (Senate Bill No. 456), Acts of the 76th Legislature,
	Regular Session, 1999 (Article 5190.14, Vernon's Texas Civil
	Statutes), are repealed.
	SECTION 4.  (a)  The state auditor shall conduct an audit to
	determine the efficiency and effectiveness of funding events
	through an events trust fund authorized under Section 5, 5A, 5B, or
	5C, Chapter 1507 (Senate Bill No. 456), Acts of the 76th
	Legislature, Regular Session, 1999 (Article 5190.14, Vernon's
	Texas Civil Statutes).
	(b)  The audit, at a minimum, must determine whether money
	from an events trust fund is efficiently and effectively:
	(1)  disbursed in compliance with Section 5, 5A, 5B, or
	5C, Chapter 1507 (Senate Bill No. 456), Acts of the 76th
	Legislature, Regular Session, 1999 (Article 5190.14, Vernon's
	Texas Civil Statutes), as applicable, the Government Code, and
	other relevant laws or standards;
	(2)  monitored so that the event and the persons and
	entities that receive money from the fund comply with the terms of
	applicable agreements and with the applicable sections of Chapter
	1507 (Senate Bill No. 456), Acts of the 76th Legislature, Regular
	Session, 1999 (Article 5190.14, Vernon's Texas Civil Statutes), the
	Government Code, and other relevant laws or standards; and
	(3)  maintained to provide adequate financial control
	systems and to ensure accountability for use of the money.
	(c)  The state auditor shall prepare a report of the audit
	conducted under Subsection (a) of this section. Not later than
	January 1, 2015, the state auditor shall electronically file a copy
	of the report with the lieutenant governor, the speaker of the house
	of representatives, and the presiding officer of each standing
	committee of the senate and house of representatives having primary
	jurisdiction over fiscal matters or matters related to tourism or
	recreation. The report must include details on:
	(1)  the process for approving the disbursement of
	money through an events trust fund; and
	(2)  the degree to which past and present recipients of
	money from a fund have complied with the terms of event agreements
	and with the applicable sections of Chapter 1507 (Senate Bill No.
	456), Acts of the 76th Legislature, Regular Session, 1999 (Article
	5190.14, Vernon's Texas Civil Statutes), the Government Code, and
	other relevant laws or standards.
	(d)  The comptroller of public accounts shall conduct a study
	to determine:
	(1)  the economic impact of the events that qualify for
	funding through an events trust fund; and
	(2)  whether the events would likely be held in this
	state in the absence of the incentives provided through the fund.
	(e)  The comptroller of public accounts shall prepare a
	report of the findings from the study conducted under Subsection
	(d) of this section. Not later than January 1, 2015, the
	comptroller shall electronically file a copy of the report with the
	lieutenant governor, the speaker of the house of representatives,
	and the presiding officer of each standing committee of the senate
	and house of representatives having primary jurisdiction over
	fiscal matters or matters related to tourism or recreation.
	(f)  Notwithstanding any other law, the comptroller of
	public accounts shall reimburse the state auditor for the cost of
	the audit conducted by the state auditor under Subsection (a) of
	this section using any balances available in the 2014 state fiscal
	year from the events trust funds established under Section 5, 5A,
	5B, or 5C, Chapter 1507 (Senate Bill No. 456), Acts of the 76th
	Legislature, Regular Session, 1999 (Article 5190.14, Vernon's
	Texas Civil Statutes).  The comptroller shall pay the audit cost
	proportionally from the established funds based on the maximum
	balances in the funds during the 2014 state fiscal year.
	(g)  This section expires September 1, 2015.
	SECTION 5.  The changes in law made by this Act apply only to
	a request submitted to the comptroller of public accounts by an
	endorsing municipality or endorsing county under Section 5A or 5C,
	Chapter 1507 (Senate Bill No. 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 or 5C 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 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, 2013.