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AN ACT
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relating to the events and expenses eligible for, reporting |
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requirements concerning disbursements from, and a study by the |
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comptroller of the Major Events trust fund and the Events trust |
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fund. |
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BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: |
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SECTION 1. Subdivision (4), Subsection (a), Section 5A, |
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Chapter 1507 (S.B. 456), Acts of the 76th Legislature, Regular |
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Session, 1999 (Article 5190.14, Vernon's Texas Civil Statutes), is |
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amended to read as follows: |
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(4) "Event" means a Super Bowl, a National Collegiate |
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Athletic Association Final Four tournament game, the National |
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Basketball Association All-Star Game, the X Games, the National |
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Hockey League All-Star Game, the Major League Baseball All-Star |
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Game, a National Collegiate Athletic Association Bowl Championship |
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Series game, a World Cup Soccer game, the World Games, a national |
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collegiate championship of an amateur sport sanctioned by the |
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national governing body of the sport that is recognized by the |
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United States Olympic Committee, an Olympic activity, including a |
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Junior or Senior activity, training program, or feeder program |
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sanctioned by the United States Olympic Committee's Community |
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Olympic Development Program, a mixed martial arts championship, the |
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Breeders' Cup World Championships, a Formula One automobile race, |
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the Academy of Country Music Awards, the National Cutting Horse |
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Association Triple Crown, [or] a national political convention of |
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the Republican National Committee or the Democratic National |
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Committee, or the largest event held each year at a sports |
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entertainment venue in this state with a permanent seating |
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capacity, including grandstand and premium seating, of not less |
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than 125,000. The term includes any activities related to or |
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associated with an event. |
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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-1), (h), (i), (k), (p), and (w) and adding Subsections (a-2), |
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(x), and (y) 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 selects a site |
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located in this state for the event to be held one time or, for an |
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event scheduled to be held each year for a period of years under an |
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event contract, or an event support contract, one time each year for |
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the period of years, after considering, through a highly |
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competitive selection process, one or more sites that are not |
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located in this state; |
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(2) a site selection organization selects a site in |
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this state as: |
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(A) the sole site for the event; or |
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(B) the sole site for the event in a region |
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composed of this state and one or more adjoining states; [and] |
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(3) the event is held not more than one time in any |
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year; and |
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(4) the amount of the incremental increase in tax |
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receipts determined by the comptroller under Subsection (b) of this |
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section equals or exceeds $1 million, provided that for an event |
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scheduled to be held each year for a period of years under an event |
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contract or event support contract, the incremental increase in tax |
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receipts shall be calculated as if the event did not occur in the |
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prior year. |
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(a-2) Subsection (a-1)(1) of this section does not apply to |
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an event that is the largest event held each year at a sports |
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entertainment venue in this state with a permanent seating |
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capacity, including grandstand and premium seating, of not less |
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than 125,000. If an endorsing municipality or endorsing county |
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requests the comptroller to make a determination under Subsection |
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(b) of this section for an event described by this subsection, the |
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provisions of this section apply to that event as if it satisfied |
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the eligibility requirements for an event under Subsection (a-1)(1) |
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of this section. |
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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 comptroller not earlier than |
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one year and not later than 45 days [three months] before the date |
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the event begins. The comptroller shall base the determination |
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specified by Subsection (b) of this section on information |
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submitted by the local organizing committee, endorsing |
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municipality, or endorsing county, and must make the determination |
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not later than the 30th day after the date the comptroller receives |
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the request and related information. |
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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 improvements or renovations to |
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existing facilities or other facilities and costs of acquisition or |
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construction of new facilities or other facilities. |
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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 to enable the comptroller to fulfill the comptroller's |
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duties 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, including an estimate of the number of people expected to |
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attend the event who are not residents of this state, and to the |
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economic impact of the event. A local organizing committee, |
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endorsing municipality, or endorsing county must provide an annual |
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audited financial statement required by the comptroller, if any, |
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not later than the end of the fourth month after the date the period |
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covered by the financial statement ends. After the conclusion of an |
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event and on the comptroller's request, a local organizing |
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committee, endorsing municipality, or endorsing county must |
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provide information relating to the event, such as attendance |
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figures, including an estimate of the number of attendees at the |
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event who are not residents of this state, financial information, |
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or other public information held by the local organizing committee, |
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endorsing municipality, or endorsing county that the comptroller |
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considers necessary. |
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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. If an obligation is incurred |
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under a games support contract or event support contract to make a |
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structural improvement to the site or to add a fixture to the site |
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for purposes of an event and that improvement or fixture is expected |
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to derive most of its value in subsequent uses of the site for |
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future events, a disbursement from the trust fund made for purposes |
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of that obligation is limited to five percent of the cost of the |
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improvement or fixture and the remainder of the obligation is not |
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eligible for a disbursement from the trust fund, unless the |
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improvement or fixture is for a publicly owned facility. In |
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considering whether to make a disbursement from the trust fund, the |
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comptroller may not consider a contingency clause in an event |
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support contract as relieving a local organizing committee's, |
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endorsing municipality's, or endorsing county's obligation to pay a |
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cost under the contract. A disbursement may not be made from the |
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trust fund that the comptroller determines would be used for the |
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purpose of soliciting the relocation of a professional sports |
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franchise located in this state. |
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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; and |
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(3) the request is[. The request must be] accompanied |
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by documentation from a site selection organization selecting the |
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site for the event. |
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(w) Not later than 10 [18] months after the last day of an |
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event eligible for disbursements from the Major Events trust fund |
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for costs associated with the event, the comptroller using existing |
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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 comptroller for the 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)(3) of this section; |
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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 |
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comptroller in making the determination of the amount of |
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incremental increase in tax receipts under Subsection (b) of this |
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section; and |
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(5) documentation verifying that: |
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(A) a request submitted by a local organizing |
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committee, endorsing municipality, or endorsing county under |
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Subsection (p) of this section is complete and certified as such by |
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the comptroller; |
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(B) the determination on the amount of |
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incremental increases in tax receipts under Subsection (b) of this |
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section considered the information submitted by a local organizing |
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committee, endorsing municipality, or endorsing county as required |
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under Subsection (b-1) of this section; and |
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(C) each deadline established under this section |
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was timely met [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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(y) After the conclusion of an event, the comptroller shall |
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compare information on the actual attendance figures provided to |
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the comptroller under Subsection (i) of this section with the |
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estimated attendance numbers used to determine the incremental |
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increase in tax receipts under Subsection (b) of this section. If |
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the actual attendance figures are significantly lower than the |
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estimated attendance numbers, the comptroller may reduce the amount |
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of a disbursement for an endorsing entity under the Major Events |
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trust fund in proportion to the discrepancy between the actual and |
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estimated attendance and in proportion to the amount contributed to |
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the fund by the entity. The comptroller by rule shall define |
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"significantly lower" for purposes of this subsection and provide |
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the manner in which a disbursement may be proportionately reduced. |
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This subsection does not affect the remittance of any money |
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remaining in the fund in accordance with Subsection (m) of this |
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section. |
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SECTION 3. Section 5C, 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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(h), (i), and (k) and adding Subsections (b-1), (k-1), (k-2), (r), |
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(s), and (t) to read as follows: |
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(a-1) An event is eligible for funding under this section |
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only if: |
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(1) a site selection organization selects a site for |
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the event located in this state to be held one time or, for an event |
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scheduled to be held each year for a period of years under an event |
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contract, or an events support contract, one time each year for the |
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period of years, after considering, through a highly competitive |
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selection process, one or more sites that are not located in this |
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state; |
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(2) a site selection organization selects a site in |
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this state as: |
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(A) the sole site for the event; or |
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(B) the sole site for the event in a region |
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composed of this state and one or more adjoining states; and |
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(3) the event is held not more than one time in this |
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state or an adjoining state in any year. |
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(b-1) The number of requests for funding under this section |
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that may be submitted by an endorsing county or endorsing |
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municipality during any 12-month period for an event for which the |
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comptroller determines that the total amount of the incremental |
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increase in tax receipts under Subsection (b) of this section is |
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less than $200,000 is limited to, during any 12-month period, not |
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more than 10 events, only three of which may be nonsporting events. |
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(h) The money in the Events trust fund may be used to pay the |
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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 this state or an endorsing |
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municipality or endorsing county to a site selection organization |
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under an event support contract. Subject to Subsection (k) of this |
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section, the[, which] obligations may include the payment of costs |
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relating to the preparations necessary [or desirable] for the |
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conduct of the event and the payment of costs of conducting the |
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event, including improvements or renovations to existing |
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facilities or other facilities and costs of acquisition or |
|
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construction of new facilities or other facilities. |
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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 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 |
|
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municipality, or an endorsing county relating to attendance at the |
|
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event, including an estimate of the number of people expected to |
|
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attend the event who are not residents of this state, and to the |
|
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economic impact of the event. A local organizing committee, |
|
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endorsing municipality, or endorsing county must provide an annual |
|
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audited financial statement required by the comptroller, if any, |
|
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not later than the end of the fourth month after the date the period |
|
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covered by the financial statement ends. After the conclusion of an |
|
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event and on the comptroller's request, a local organizing |
|
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committee, endorsing municipality, or endorsing county must |
|
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provide information relating to the event, such as attendance |
|
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figures, including an estimate of the number of people who are not |
|
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residents of this state who attended the event, financial |
|
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information, or other public information held by the local |
|
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organizing committee, endorsing municipality, or endorsing county |
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that the comptroller considers necessary. |
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(k) The comptroller may make a disbursement from the Events |
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trust fund on the prior approval of each contributing endorsing |
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municipality or endorsing county for a purpose for which a local |
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organizing committee, an endorsing municipality, or an endorsing |
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county or this state is obligated under an event support contract, |
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including an obligation to pay costs incurred in the conduct of the |
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event and costs incurred in making preparations necessary for the |
|
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event. If an obligation is incurred under an event support contract |
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to make a structural improvement to the site or to add a fixture to |
|
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the site for purposes of an event and that improvement or fixture is |
|
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expected to derive most of its value in subsequent uses of the site |
|
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for future events, a disbursement from the trust fund made for |
|
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purposes of that obligation is limited to five percent of the cost |
|
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of the improvement or fixture and the remainder of the obligation is |
|
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not eligible for a disbursement from the trust fund, unless the |
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improvement or fixture is for a publicly owned facility. In |
|
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considering whether to make a disbursement from the trust fund, the |
|
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comptroller may not consider a contingency clause in an event |
|
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support contract as relieving a local organizing committee's, |
|
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endorsing municipality's, or endorsing county's obligation to pay a |
|
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cost under the contract. |
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(k-1) A disbursement may not be made from the trust fund |
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that the comptroller determines would be used for the purpose of: |
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(1) soliciting the relocation of a professional sports |
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franchise located in this state; |
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(2) constructing an arena, stadium, or convention |
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center; or |
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(3) conducting usual and customary maintenance of a |
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facility. |
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(k-2) Subsection (k-1) of this section does not prohibit: |
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(1) a disbursement from the trust fund for the |
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construction of temporary structures within an arena, stadium, or |
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convention, if those temporary structures are necessary for the |
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conduct of the event; or |
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(2) temporary maintenance of a facility that is |
|
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necessary for the preparation for or conduct of the event. |
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(r) The comptroller may adopt a model event support contract |
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and make the contract available on the comptroller's Internet |
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website. The adoption by the comptroller of a model event support |
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contract under this subsection does not require use of the model |
|
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event support contract for purposes of this section. |
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(s) The comptroller may adopt rules necessary to implement |
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this section. |
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(t) After the conclusion of an event, the comptroller shall |
|
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compare information on the actual attendance figures provided to |
|
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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 |
|
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section. |
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SECTION 4. Subsections (r), (s), (t), and (u), Section 5A, |
|
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Chapter 1507 (Senate Bill No. 456), Acts of the 76th Legislature, |
|
|
Regular Session, 1999 (Article 5190.14, Vernon's Texas Civil |
|
|
Statutes), are repealed. |
|
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SECTION 5. (a) The comptroller of public accounts shall |
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conduct a study to determine: |
|
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(1) the economic impact of the events that qualify for |
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funding through an events trust fund; and |
|
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(2) whether the events would likely be held in this |
|
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state in the absence of the incentives provided through the fund. |
|
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(b) The comptroller of public accounts shall prepare a |
|
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report of the findings from the study conducted under Subsection |
|
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(a) of this section. Not later than January 1, 2015, the |
|
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comptroller shall electronically file a copy of the report with the |
|
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lieutenant governor, the speaker of the house of representatives, |
|
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and the presiding officer of each standing committee of the senate |
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and house of representatives having primary jurisdiction over |
|
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fiscal matters or matters related to tourism or recreation. |
|
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(c) This section expires September 1, 2015. |
|
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SECTION 6. The changes in law made by this Act apply only to |
|
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a request submitted to the comptroller of public accounts by an |
|
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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 |
|
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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 |
|
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continued in effect for that purpose. |
|
|
SECTION 7. 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. |
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______________________________ |
______________________________ |
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President of the Senate |
Speaker of the House |
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I hereby certify that S.B. No. 1678 passed the Senate on |
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April 25, 2013, by the following vote: Yeas 28, Nays 0; and that |
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the Senate concurred in House amendments on May 25, 2013, by the |
|
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following vote: Yeas 20, Nays 8. |
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______________________________ |
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Secretary of the Senate |
| |
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I hereby certify that S.B. No. 1678 passed the House, with |
|
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amendments, on May 20, 2013, by the following vote: Yeas 145, |
|
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Nays 2, one present not voting. |
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______________________________ |
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Chief Clerk of the House |
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Approved: |
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______________________________ |
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Date |
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______________________________ |
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Governor |