H.B. No. 26
 
 
 
 
AN ACT
  relating to state economic development measures, including
  administration of the Texas Enterprise Fund, creation of the
  Economic Incentive Oversight Board and the governor's university
  research initiative, abolishment of the Texas emerging technology
  fund, and renaming the Major Events trust fund to the Major Events
  Reimbursement Program.
         BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
  ARTICLE 1.  GOVERNOR'S UNIVERSITY RESEARCH INITIATIVE; ABOLISHMENT
  OF TEXAS EMERGING TECHNOLOGY FUND
         SECTION 1.01.  Chapter 62, Education Code, is amended by
  adding Subchapter H to read as follows:
  SUBCHAPTER H. GOVERNOR'S UNIVERSITY RESEARCH INITIATIVE
         Sec. 62.161.  DEFINITIONS. In this subchapter:
               (1)  "Distinguished researcher" means a researcher who
  is:
                     (A)  a Nobel laureate; or
                     (B)  a member of the National Academy of Sciences,
  the National Academy of Engineering, or the National Academy of
  Medicine, formerly known as the Institute of Medicine.
               (2)  "Eligible institution" means a general academic
  teaching institution or medical and dental unit.
               (3)  "Fund" means the governor's university research
  initiative fund established under this subchapter.
               (4)  "General academic teaching institution" has the
  meaning assigned by Section 61.003.
               (5)  "Medical and dental unit" has the meaning assigned
  by Section 61.003.
               (6)  "Office" means the Texas Economic Development and
  Tourism Office within the office of the governor.
               (7)  "Private or independent institution of higher
  education" has the meaning assigned by Section 61.003.
         Sec. 62.162.  ADMINISTRATION OF INITIATIVE. (a) The
  governor's university research initiative is administered by the
  Texas Economic Development and Tourism Office within the office of
  the governor.
         (b)  The office may adopt any rules the office considers
  necessary to administer this subchapter.
         Sec. 62.163.  MATCHING GRANTS TO RECRUIT DISTINGUISHED
  RESEARCHERS. (a)  From the governor's university research
  initiative fund, the office shall award matching grants to assist
  eligible institutions in recruiting distinguished researchers.
         (b)  An eligible institution may apply to the office for a
  matching grant from the fund. If the office approves a grant
  application, the office shall award to the applicant institution a
  grant amount equal to the amount committed by the institution for
  the recruitment of a distinguished researcher.
         (c)  A grant application must identify the source and amount
  of the eligible institution's matching funds and must demonstrate
  that the proposed use of the grant has the support of the
  institution's president and of the institution's governing board,
  the chair of the institution's governing board, or the chancellor
  of the university system, if the institution is a component of a
  university system. An applicant eligible institution may commit
  for matching purposes any funds of the institution available for
  that purpose other than appropriated general revenue.
         (d)  A matching grant may not be used by an eligible
  institution to recruit a distinguished researcher from:
               (1)  another eligible institution; or
               (2)  a private or independent institution of higher
  education.
         Sec. 62.164.  GRANT AWARD CRITERIA; PRIORITIES. (a)  In
  awarding grants, the office shall give priority to grant proposals
  that involve the recruitment of distinguished researchers in the
  fields of science, technology, engineering, mathematics, and
  medicine.  With respect to proposals involving those fields, the
  office shall give priority to proposals that demonstrate a
  reasonable likelihood of contributing substantially to this
  state's national and global economic competitiveness.
         (b)  A grant proposal should identify a specific
  distinguished researcher being recruited.
         Sec. 62.165.  GOVERNOR'S UNIVERSITY RESEARCH INITIATIVE
  FUND. (a) The governor's university research initiative fund is a
  dedicated account in the general revenue fund.
         (b)  The fund consists of:
               (1)  amounts appropriated or otherwise allocated or
  transferred by law to the fund;
               (2)  money deposited to the fund under Section 62.166
  of this subchapter or under Section 490.101(b-1), Government Code;
  and
               (3)  gifts, grants, and other donations received for
  the fund.
         (c)  The fund may be used by the office only for the purposes
  of this subchapter, including for necessary expenses incurred in
  the administration of the fund and this subchapter.
         Sec. 62.166.  WINDING UP OF CONTRACTS AND AWARDS IN
  CONNECTION WITH TEXAS EMERGING TECHNOLOGY FUND. (a) The
  governor's university research initiative is the successor to the
  Texas emerging technology fund. Awards from the Texas emerging
  technology fund shall be wound up in accordance with this section
  and Section 490.104, Government Code, and contracts governing
  awards from that fund shall be wound up in accordance with this
  section.
         (b)  If a contract governing an award from the Texas emerging
  technology fund provides for the distribution of royalties,
  revenue, or other financial benefits to the state, including
  royalties, revenue, or other financial benefits realized from the
  commercialization of intellectual or real property developed from
  an award from the fund, those royalties, revenues, or other
  financial benefits shall continue to be distributed in accordance
  with the terms of the contract unless the award recipient and the
  governor agree otherwise. Unless otherwise required by law,
  royalties, revenue, or other financial benefits accruing to the
  state under a contract described by this subsection, including any
  money returned or repaid to the state by an award recipient, shall
  be credited to the governor's university research initiative fund.
         (c)  If money awarded from the Texas emerging technology fund
  is encumbered by a contract executed before September 1, 2015, but
  has not been distributed before that date, the money shall be
  distributed from the governor's university research initiative
  fund in accordance with the terms of the contract, unless the award
  recipient and the governor agree otherwise.
         (d)  Except for an obligation regarding the distribution of
  royalties, revenue, or other financial benefits to the state as
  provided by Subsection (b), if money awarded from the Texas
  emerging technology fund under a contract executed before September
  1, 2015, has been fully distributed and the entity that received the
  award has fully performed all specific actions under the terms of
  the contract governing the award, the entity is considered to have
  fully satisfied the entity's obligations under the contract.  The
  entity shall file with the office a final report showing the
  purposes for which the award money has been spent and, if award
  money remains unspent, the purposes for which the recipient will
  spend the remaining money.
         Sec. 62.167.  CONFIDENTIALITY OF INFORMATION CONCERNING
  AWARDS FROM TEXAS EMERGING TECHNOLOGY FUND. (a)  Except as
  provided by Subsection (b), information collected under former
  provisions of Chapter 490, Government Code, concerning the
  identity, background, finance, marketing plans, trade secrets, or
  other commercially or academically sensitive information of an
  individual or entity that was considered for or received an award
  from the Texas emerging technology fund is confidential unless the
  individual or entity consents to disclosure of the information.
         (b)  The following information collected in connection with
  the Texas emerging technology fund is public information and may be
  disclosed under Chapter 552, Government Code:
               (1)  the name and address of an individual or entity
  that received an award from that fund;
               (2)  the amount of funding received by an award
  recipient;
               (3)  a brief description of the project funded under
  former provisions of Chapter 490, Government Code;
               (4)  if applicable, a brief description of the equity
  position that the governor, on behalf of the state, has taken in an
  entity that received an award from that fund; and
               (5)  any other information with the consent of:
                     (A)  the governor;
                     (B)  the lieutenant governor;
                     (C)  the speaker of the house of representatives;
  and
                     (D)  the individual or entity that received an
  award from that fund, if the information relates to that individual
  or entity.
         Sec. 62.168.  REPORTING REQUIREMENT. (a)  Before the
  beginning of each regular session of the legislature the governor
  shall submit to the lieutenant governor, the speaker of the house of
  representatives, and the standing committees of each house of the
  legislature with primary jurisdiction over economic development
  and higher education matters and post on the office of the
  governor's Internet website a report on matching grants made to
  eligible institutions from the fund that states:
               (1)  the total amount of matching funds granted by the
  office;
               (2)  the total amount of matching funds granted to each
  recipient institution;
               (3)  a brief description of each distinguished
  researcher recruited by each recipient institution, including any
  amount of external research funding that followed the distinguished
  researcher to the institution;
               (4)  a brief description of the expenditures made from
  the matching grant funds for each distinguished researcher; and
               (5)  when available, a brief description of each
  distinguished researcher's contribution to the state's economic
  competitiveness, including:
                     (A)  any patents issued to the distinguished
  researcher after accepting employment by the recipient
  institution; and
                     (B)  any external research funding, public or
  private, obtained by the distinguished researcher after accepting
  employment by the recipient institution.
         (a-1)  The report may not include information that is made
  confidential by law.
         (b)  The governor may require an eligible institution that
  receives a matching grant under this subchapter to submit, on a form
  the governor provides, information required to complete the report.
         SECTION 1.02.  Subchapter C, Chapter 490, Government Code,
  is amended by adding Section 490.104 to read as follows:
         Sec. 490.104.  MANAGEMENT OF INVESTMENT PORTFOLIO; WINDING
  UP AND FINAL LIQUIDATION. (a) In this section, "state's emerging
  technology investment portfolio" means:
               (1)  the equity positions in the form of stock or other
  security the governor took, on behalf of the state, in companies
  that received awards under the Texas emerging technology fund; and
               (2)  any other investments made by the governor, on
  behalf of the state, and associated assets in connection with an
  award made under the Texas emerging technology fund.
         (b)  The Texas Treasury Safekeeping Trust Company shall
  manage and wind up the state's emerging technology investment
  portfolio. The trust company shall wind up the portfolio in a
  manner that, to the extent feasible, provides for the maximum
  return on the state's investment. In managing those investments
  and associated assets through procedures and subject to
  restrictions that the trust company considers appropriate, the
  trust company may acquire, exchange, sell, supervise, manage, or
  retain any kind of investment or associated assets that a prudent
  investor, exercising reasonable care, skill, and caution, would
  acquire or retain in light of the purposes, terms, distribution
  requirements, and other circumstances then prevailing pertinent to
  each investment or associated asset. The trust company may recover
  its reasonable and necessary costs incurred in the management of
  the portfolio from the earnings on the investments and associated
  assets in the portfolio.
         (c)  Any realized proceeds or other earnings from the sale of
  stock or other investments or associated assets in the state's
  emerging technology investment portfolio, less the amount
  permitted to be retained for payment of its costs for managing the
  portfolio as provided by Subsection (b), shall be remitted by the
  Texas Treasury Safekeeping Trust Company to the comptroller for
  deposit in the general revenue fund.
         (d)  The Texas Treasury Safekeeping Trust Company has any
  power necessary to accomplish the purposes of this section.
         (e)  On final liquidation of the state's emerging technology
  investment portfolio, the Texas Treasury Safekeeping Trust Company
  shall promptly notify the comptroller of that occurrence. As soon
  as practicable after receiving that notice, the comptroller shall
  verify that the final liquidation has been completed and, if the
  comptroller so verifies, shall certify to the governor that the
  final liquidation of the portfolio has been completed. The governor
  shall post notice of the certification on the office of the
  governor's Internet website.
         (f)  Any balance remaining in the Texas emerging technology
  fund on final liquidation by the Texas Treasury Safekeeping Trust
  Company shall be remitted to the comptroller for deposit in the
  general revenue fund.
         SECTION 1.03.  Section 490.101, Government Code, is amended
  by adding Subsections (b-1) and (b-2) to read as follows:
         (b-1)  Notwithstanding Subsection (b),  benefits realized
  from a project undertaken with money from the fund, as provided by a
  contract entered into under former Section 490.103 before September
  1, 2015, shall be deposited to the credit of the governor's
  university research initiative fund established under Subchapter
  H, Chapter 62, Education Code.
         (b-2)  The fund may be used only for the purposes described
  by Section 490.104.
         SECTION 1.04.  (a)  The following laws are repealed:
               (1)  Sections 490.101(c), (d), (e), (f), (f-1), (g),
  (h), and (i), Government Code;
               (2)  Sections 490.102 and 490.103, Government Code; and
               (3)  Subchapters A, B, D, E, F, and G, Chapter 490,
  Government Code.
         (b)  The Texas emerging technology fund is continued solely
  for the purposes of winding up the contracts governing awards from
  that fund and the state's portfolio of equity positions and other
  investments and associated assets in connection with awards from
  that fund in accordance with Section 490.104, Government Code, as
  added by this Act. The Texas emerging technology fund is abolished
  and Sections 490.101(a), (b), (b-1), and (b-2), Government Code,
  are repealed when the comptroller certifies to the governor as
  provided by Section 490.104, Government Code, as added by this Act,
  that the final liquidation of the state's portfolio of equity
  positions and other investments and associated assets by the Texas
  Treasury Safekeeping Trust Company has been completed.  On the
  effective date of this Act, any unencumbered fund balance in the
  Texas emerging technology fund may be appropriated in accordance
  with Subsection (e) of this section.
         (c)  The abolishment by this Act of the Texas emerging
  technology fund and the repeal of provisions of Chapter 490,
  Government Code, relating to that fund do not affect the validity of
  an agreement between the governor and the recipient of an award
  awarded under Chapter 490, or a person to be awarded money under
  that chapter, that is executed before September 1, 2015. Those
  agreements shall be performed as provided by Section 62.166,
  Education Code, as added by this Act.
         (d)  A regional center of innovation and commercialization
  established under Section 490.152, Government Code, is abolished on
  the effective date of this Act. Each center shall transfer to the
  office of the governor a copy of any meeting minutes required to be
  retained under Section 490.1521, Government Code, as that section
  existed immediately before that section's repeal by this Act, and
  the office shall retain the minutes for the period prescribed by
  that section.
         (e)  Any unencumbered balance of the Texas emerging
  technology fund may be appropriated only to one or more of the
  following:
               (1)  the Texas Research Incentive Program (TRIP) under
  Subchapter F, Chapter 62, Education Code;
               (2)  the Texas research university fund, subject to
  Subsection (f) of this section;
               (3)  the governor's university research initiative fund
  established under Subchapter H, Chapter 62, Education Code, as
  added by this Act;
               (4)  the Texas Enterprise Fund established under
  Section 481.078, Government Code; and
               (5)  the comptroller for the purposes of expenses
  incurred in managing the state's portfolio of equity positions and
  other investments in connection with awards from the Texas emerging
  technology fund in accordance with Section 490.104, Government
  Code, as added by this Act.
         (f)  The authority of the Texas research university fund to
  receive the appropriation described by Subsection (e) of this
  section is contingent on passage and enactment of H.B. 1000, or
  similar legislation relating to state support for general academic
  teaching institutions in this state by the 84th Legislature,
  Regular Session, 2015, that renames the existing Texas competitive
  knowledge fund and changes the purposes for which the fund can be
  used.
         (f-1)  On the effective date of this Act, the comptroller of
  public accounts shall transfer the encumbered balance of the Texas
  emerging technology fund to the credit of the governor's university
  research initiative fund established under Subchapter H, Chapter
  62, Education Code, as added by this Act, for the purposes of
  Section 62.166, Education Code, as added by this Act.
         (g)  Except as provided by this Act, on September 1, 2015,
  the following powers, duties, functions, and activities performed
  by the office of the governor immediately before that date are
  transferred to the Texas Treasury Safekeeping Trust Company:
               (1)  all powers, duties, functions, and activities
  related to equity positions in the form of stock or other security
  the governor has taken, on behalf of the state, in companies that
  received awards under the Texas emerging technology fund before
  September 1, 2015; and
               (2)  all powers, duties, functions, and activities
  related to other investments made by the governor, on behalf of the
  state, and associated assets in connection with an award made under
  the Texas emerging technology fund before September 1, 2015.
         (h)  Notwithstanding the repeal by this Act of provisions of
  Chapter 490, Government Code, those provisions of Chapter 490 are
  continued in effect for the limited purpose of winding up contracts
  governing awards from the Texas emerging technology fund in
  accordance with Section 62.166, Education Code, as added by this
  Act, and of winding up the state's portfolio of equity positions and
  other investments and associated assets in connection with awards
  from that fund in accordance with Section 490.104, Government Code,
  as added by this Act.
  ARTICLE 2.  ECONOMIC INCENTIVE OVERSIGHT BOARD
         SECTION 2.01.  Subtitle F, Title 4, Government Code, is
  amended by adding Chapter 490G to read as follows:
  CHAPTER 490G. ECONOMIC INCENTIVE OVERSIGHT BOARD
         Sec. 490G.001.  DEFINITIONS. In this chapter:
               (1)  "Board" means the Economic Incentive Oversight
  Board.
               (2)  "Monetary incentive" means a grant, loan, or other
  form of monetary incentive paid from state revenues, including a
  state trust fund, that a business entity or other person may receive
  in exchange for or as a result of conducting an activity with an
  economic development purpose.
               (2-a)  "Rural county" means a county with a population
  of less than 60,000.
               (3)  "Tax incentive" means any exemption, deduction,
  credit, exclusion, waiver, rebate, discount, deferral, or other
  abatement or reduction of state tax liability of a business entity
  or other person that the person may receive in exchange for or as a
  result of conducting an activity with an economic development
  purpose.
         Sec. 490G.002.  ESTABLISHMENT AND COMPOSITION. (a) The
  Economic Incentive Oversight Board is an advisory body composed of
  nine members as follows:
               (1)  two public members appointed by the speaker of the
  house of representatives, one of whom must be from a rural county;
               (2)  two public members appointed by the lieutenant
  governor, one of whom must be from a rural county;
               (3)  two public members appointed by the comptroller;
  and
               (4)  three public members appointed by the governor.
         (b)  In appointing members of the board, each appointing
  officer shall appoint one member who has expertise in the area of
  economic development.
         (c)  A member of the board serves at the pleasure of the
  appointing officer.
         (d)  The board members are entitled to reimbursement for
  actual and necessary expenses incurred by the members in serving on
  the board as provided by Chapter 660 and the General Appropriations
  Act.
         (e)  The office of the governor shall provide administrative
  support and staff to the board.
         Sec. 490G.003.  PRESIDING OFFICER. The governor shall
  appoint the presiding officer of the board.
         Sec. 490G.004.  MEETINGS. (a)  The board shall meet at least
  annually at the call of the presiding officer.
         (b)  The board may hold a meeting by telephone conference
  call or videoconference.
         (c)  A board meeting held under Subsection (b) is subject to
  the requirements of Subchapter F, Chapter 551, Government Code,
  except that a quorum of the board is not required to be physically
  present at one location of the meeting.
         Sec. 490G.005.  REVIEW OF CERTAIN STATE INCENTIVE PROGRAMS;
  PERFORMANCE MATRIX.  (a)  The board shall examine the effectiveness
  and efficiency of programs and funds administered by the office of
  the governor, the comptroller, or the Department of Agriculture
  that award to business entities and other persons state monetary or
  tax incentives for which the governor, comptroller, or department
  has discretion in determining whether or not to award the
  incentives.
         (b)  The board shall develop a performance matrix that
  clearly establishes the economic performance indicators, measures,
  and metrics that will guide the board's evaluations of those
  programs and funds.
         Sec. 490G.006.  SCHEDULE OF REVIEW; RECOMMENDATION TO
  LEGISLATIVE AUDIT COMMITTEE.  (a)  The board shall develop a
  schedule for the periodic review of each state incentive program or
  fund described by Section 490G.005 for the purposes of making
  recommendations on whether to continue the program or fund or
  whether to improve program or fund effectiveness and efficiency.  
  The board shall review and make recommendations to the legislature
  regarding each program or fund according to the review schedule.
         (b)  After conducting a review of a state incentive program
  or fund under this chapter, the board may recommend to the
  legislative audit committee that an audit of the program or fund be
  included in the audit plan under Section 321.013.
         Sec. 490G.007.  BIENNIAL REPORT. Not later than January 1 of
  each odd-numbered year, the board shall submit to the lieutenant
  governor, the speaker of the house of representatives, and each
  standing committee of the senate and house of representatives with
  primary jurisdiction over economic development a report containing
  findings and recommendations resulting from each review of state
  incentive programs and funds conducted by the board under this
  chapter during the preceding two calendar years.
         Sec. 490G.008.  CONFLICTS OF INTEREST. (a)  A member of the
  board who has a substantial interest in a business entity or other
  person that previously applied for or received a state monetary or
  tax incentive from a program or fund subject to review by the board
  shall disclose that interest in writing to the board.
         (b)  A board member who has a business, commercial, or other
  relationship, other than an interest described by Subsection (a),
  that could reasonably be expected to diminish the person's
  independence of judgment in the performance of the person's
  responsibilities in relation to the board shall disclose the
  relationship in writing to the board.
         Sec. 490G.009.  CONFIDENTIALITY OF INFORMATION.  The
  provision of information that is confidential by law to the board
  does not affect the confidentiality of the information.
         SECTION 2.02. As soon as practicable after the effective
  date of this Act, the appointing officials shall appoint members to
  the Economic Incentive Oversight Board established under Chapter
  490G, Government Code, as added by this article.
  ARTICLE 3.  TEXAS ENTERPRISE FUND
         SECTION 3.01.  Section 481.078(e), Government Code, is
  amended to read as follows:
         (e)  The administration of the fund is considered to be a
  trusteed program within the office of the governor.  The governor
  may negotiate on behalf of the state regarding awarding, by grant,
  money appropriated from the fund.  The governor may award money
  appropriated from the fund only with the prior approval of the
  lieutenant governor and speaker of the house of
  representatives.  For purposes of this subsection, an award of
  money appropriated from the fund is considered disapproved by the
  lieutenant governor or speaker of the house of representatives if
  that officer does not approve the proposal to award the grant before
  the 31st [91st] day after the date of receipt of the proposal from
  the governor.  The lieutenant governor or the speaker of the house
  of representatives may extend the review deadline applicable to
  that officer for an additional 14 days by submitting a written
  notice to that effect to the governor before the expiration of the
  initial review period.
  ARTICLE 4. RENAMING OF MAJOR EVENTS TRUST FUND
         SECTION 4.01.  The heading to Section 5A, Chapter 1507 (S.B.
  456), Acts of the 76th Legislature, Regular Session, 1999 (Article
  5190.14, Vernon's Texas Civil Statutes), is amended to read as
  follows:
         Sec. 5A.  PAYMENT OF STATE AND MUNICIPAL OR COUNTY
  OBLIGATIONS UNDER[;] MAJOR EVENTS REIMBURSEMENT PROGRAM [TRUST
  FUND].
         SECTION 4.02.  Sections 5A(a-1), (d), (d-1), (e), (f), (g),
  (h), (j), (k), (l), (m), (w), and (y), Chapter 1507 (S.B. 456), Acts
  of the 76th Legislature, Regular Session, 1999 (Article 5190.14,
  Vernon's Texas Civil Statutes), are amended to read as follows:
         (a-1)  An event not listed in Subsection (a)(4) of this
  section is ineligible for funding under this section.  A listed
  event may receive funding through the Major Events Reimbursement
  Program 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, or an event support 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;
               (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, provided that for an event
  scheduled to be held each year for a period of years under an event
  contract or event support contract, the incremental increase in tax
  receipts shall be calculated as if the event did not occur in the
  prior year.
         (d)  Each endorsing municipality or endorsing county
  participating in the Major Events Reimbursement Program shall remit
  to the comptroller and the comptroller shall deposit into a trust
  fund created by the comptroller and designated as the Major Events
  reimbursement program [trust] fund the amount of the municipality's
  or county's hotel occupancy tax revenue determined under Subsection
  (b)(4) or (b)(5) of this section, less any amount of the revenue
  that the municipality or county determines is necessary to meet the
  obligations of the municipality or county.  The comptroller shall
  retain the amount of sales and use tax revenue and mixed beverage
  tax revenue determined under Subsection (b)(2) or (b)(3) of this
  section from the amounts otherwise required to be sent to the
  municipality under Sections 321.502 and 183.051(b), Tax Code, or to
  the county under Sections 323.502 and 183.051(b), Tax Code, and
  deposit into the [trust] fund the tax revenues, less any amount of
  the revenue that the municipality or county determines is necessary
  to meet the obligations of the municipality or county.  The
  comptroller shall begin retaining and depositing the local tax
  revenues with the first distribution of that tax revenue that
  occurs after the first day of the one-year period described by
  Subsection (b) of this section or at a time otherwise determined to
  be practicable by the comptroller and shall discontinue retaining
  the local tax revenues under this subsection when the amount of the
  applicable tax revenue determined under Subsection (b)(2) or (b)(3)
  of this section has been retained.  The Major Events reimbursement
  program [trust] fund is established outside the state treasury and
  is held in trust by the comptroller for administration of this
  Act.  Money in the [trust] fund may be disbursed by the comptroller
  without appropriation only as provided by this section.
         (d-1)  Not later than the 90th day after the last day of an
  event eligible for funding under the Major Events Reimbursement
  Program and in lieu of the local tax revenues remitted to or
  retained by the comptroller under Subsection (d) of this section, a
  municipality or county may remit to the comptroller for deposit in
  the Major Events reimbursement program [trust] fund other local
  funds in an amount equal to the total amount of local tax revenue
  determined under Subsections (b)(2) through (5) of this
  section.  The amount deposited by the comptroller into the Major
  Events reimbursement program [trust] fund under this subsection is
  subject to Subsection (f) of this section.
         (e)  In addition to the tax revenue deposited in the Major
  Events reimbursement program [trust] fund under Subsection (d) of
  this section, an endorsing municipality or endorsing county may
  guarantee its obligations under an event support contract and this
  section by pledging surcharges from user fees, including parking or
  ticket fees, charged in connection with the event.  An endorsing
  municipality or endorsing county may collect and remit to the
  comptroller surcharges and user fees attributable to the event for
  deposit into the Major Events reimbursement program [trust] fund.
         (f)  The comptroller shall deposit into the Major Events
  reimbursement program [trust] fund a portion of the state tax
  revenue not to exceed the amount determined under Subsection (b)(1)
  of this section in an amount equal to the prevailing state sales tax
  rate [6.25] times the amount of the local revenue retained or
  remitted under this section, including:
               (1)  local sales and use tax revenue;
               (2)  mixed beverage tax revenue;
               (3)  hotel occupancy tax revenue; and
               (4)  surcharge and user fee revenue.
         (g)  To meet its obligations under a game support contract or
  event support contract to improve, construct, renovate, or acquire
  facilities or to acquire equipment, an endorsing municipality by
  ordinance or an endorsing county by order may authorize the
  issuance of notes.  An endorsing municipality or endorsing county
  may provide that the notes be paid from and secured by amounts on
  deposit or amounts to be deposited into the Major Events
  reimbursement program [trust] fund or surcharges from user fees,
  including parking or ticket fees, charged in connection with the
  event.  Any note issued must mature not later than seven years from
  its date of issuance.
         (h)  The funds in the Major Events reimbursement program
  [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
  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.
         (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 comptroller under Subsection (b-1) of
  this section, the comptroller shall provide an estimate of the
  total amount of tax revenue that would be deposited in the Major
  Events reimbursement program [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 comptroller's estimate to a site selection
  organization.
         (k)  The comptroller may make a disbursement from the Major
  Events reimbursement program [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, unless the improvement or fixture is for a
  publicly owned facility.  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.
         (l)  If a disbursement is made from the Major Events
  reimbursement program [trust] fund under Subsection (k), the
  obligation shall be satisfied proportionately from the state and
  local revenue in the [trust] fund.
         (m)  On payment of all state, municipal, or county
  obligations under a game support contract or event support contract
  related to the location of any particular event in the state, the
  comptroller shall remit to each endorsing entity, in proportion to
  the amount contributed by the entity, any money remaining in the
  [trust] fund.
         (w)  Not later than 10 months after the last day of an event
  eligible for disbursements from the Major Events reimbursement
  program [trust] fund for costs associated with the event, the
  comptroller using existing resources shall  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 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.
         (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
  reimbursement program [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.
  ARTICLE 5.  EFFECTIVE DATE
         SECTION 5.01.  This Act takes effect September 1, 2015.
 
 
  ______________________________ ______________________________
     President of the Senate Speaker of the House     
 
 
         I certify that H.B. No. 26 was passed by the House on May 1,
  2015, by the following vote:  Yeas 136, Nays 1, 2 present, not
  voting; that the House refused to concur in Senate amendments to
  H.B. No. 26 on May 28, 2015, and requested the appointment of a
  conference committee to consider the differences between the two
  houses; and that the House adopted the conference committee report
  on H.B. No. 26 on May 31, 2015, by the following vote:  Yeas 132,
  Nays 7, 2 present, not voting.
 
  ______________________________
  Chief Clerk of the House   
 
         I certify that H.B. No. 26 was passed by the Senate, with
  amendments, on May 26, 2015, by the following vote:  Yeas 31, Nays
  0; at the request of the House, the Senate appointed a conference
  committee to consider the differences between the two houses; and
  that the Senate adopted the conference committee report on H.B. No.
  26 on May 31, 2015, by the following vote:  Yeas 30, Nays 1.
 
  ______________________________
  Secretary of the Senate   
  APPROVED: __________________
                  Date       
   
           __________________
                Governor