| |
|
|
A BILL TO BE ENTITLED
|
|
|
AN ACT
|
| |
|
|
relating to state economic development measures, including |
|
|
abolishment of the Texas emerging technology fund, creation of the |
|
|
governor's university research initiative, and the administration |
|
|
of programs to support certain events. |
|
|
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 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) or 490.104, |
|
|
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 governor's university initiative trust fund |
|
|
established under Subchapter H, Chapter 62, Education Code. |
|
|
(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 transfer to the |
|
|
credit of the governor's university research initiative fund |
|
|
established under Subchapter H, Chapter 62, Education Code. |
|
|
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. |
|
|
(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) On the effective date of this Act, the comptroller of |
|
|
public accounts shall transfer the unexpended balance of the Texas |
|
|
emerging technology fund, less an amount equal to 10 percent of the |
|
|
net cash balance of that fund on August 31, 2014, as follows: |
|
|
(1) 50 percent of the transferred amount to the credit |
|
|
of the Texas Enterprise Fund under Section 481.078, Government |
|
|
Code; and |
|
|
(2) 50 percent of the transferred amount to the credit |
|
|
of the governor's university research initiative fund established |
|
|
under Subchapter H, Chapter 62, Education Code, as added by this |
|
|
Act. |
|
|
(f) After the comptroller makes the transfers required by |
|
|
Subsection (e) of this section, the remaining amount of the |
|
|
unexpended balance of the Texas emerging technology fund may be |
|
|
used only by the Texas Treasury Safekeeping Trust Company for the |
|
|
purposes of meeting the state's fiduciary obligations in winding up |
|
|
the state's portfolio of equity positions and other investments and |
|
|
associated assets in connection with awards from the Texas emerging |
|
|
technology fund in accordance with Section 490.104, Government |
|
|
Code, as added by this Act. |
|
|
(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. CERTAIN EVENTS FUNDS |
|
|
SECTION 2.01. The heading to Section 4, 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. 4. GUARANTEE OF STATE AND MUNICIPAL OBLIGATIONS; PAN |
|
|
AMERICAN GAMES REIMBURSEMENT [TRUST] FUND. |
|
|
SECTION 2.02. Sections 4(b), (c), (d), (f), (g), (h), (j), |
|
|
(k), and (m), 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: |
|
|
(b) If a site selection organization selects a site for the |
|
|
games in this state pursuant to an application by a local organizing |
|
|
committee acting on behalf of an endorsing municipality, after the |
|
|
first occurrence of a measurable economic impact in this state as a |
|
|
result of the preparation for the games, as determined by the |
|
|
department [comptroller], but in no event later than one year |
|
|
before the scheduled opening event of the games, the department |
|
|
[comptroller] shall determine for each subsequent calendar |
|
|
quarter, in accordance with procedures developed by the department |
|
|
[comptroller]: |
|
|
(1) the incremental increase in the receipts to the |
|
|
state from the taxes imposed under Chapters 151, 152, 156, and 183, |
|
|
Tax Code, and under Title 5, Alcoholic Beverage Code, within the |
|
|
market areas designated under Subsection (c) of this section, that |
|
|
is directly attributable, as determined by the department |
|
|
[comptroller], to the preparation for and presentation of the games |
|
|
and related events; |
|
|
(2) the incremental increase in the receipts collected |
|
|
by the state on behalf of the endorsing municipality from the sales |
|
|
and use tax imposed by the endorsing municipality under Section |
|
|
321.101(a), Tax Code, that is directly attributable, as determined |
|
|
by the department [comptroller], to the preparation for and |
|
|
presentation of the games and related events; and |
|
|
(3) the incremental increase in the receipts collected |
|
|
by the endorsing municipality from the municipality's hotel |
|
|
occupancy tax imposed under Chapter 351, Tax Code, that is directly |
|
|
attributable, as determined by the department [comptroller], to the |
|
|
preparation for and presentation of the games and related events. |
|
|
(c) For the purposes of Subsection (b)(1) of this section, |
|
|
the department [comptroller] shall designate as a market area for |
|
|
the games each area in which the department [comptroller] |
|
|
determines there is a reasonable likelihood of measurable economic |
|
|
impact directly attributable to the preparation for and |
|
|
presentation of the games and related events, including areas |
|
|
likely to provide venues, accommodations, and services in |
|
|
connection with the games based on the proposal provided by the |
|
|
local organizing committee under Section 7 of this Act. The |
|
|
department [comptroller] shall determine the geographic boundaries |
|
|
of each market area. The endorsing municipality that has been |
|
|
selected as the site for the games must be included in a market area |
|
|
for the games. |
|
|
(d) The comptroller, at the direction of the department, |
|
|
shall retain, for the purpose of guaranteeing the joint obligations |
|
|
of the state and the endorsing municipality under a games support |
|
|
contract and this Act, the amount of municipal sales and use tax |
|
|
revenue determined under Subsection (b)(2) of this section from the |
|
|
amounts otherwise required to be sent to the municipality under |
|
|
Section 321.502, Tax Code, beginning with the first distribution of |
|
|
that tax revenue that occurs after the date the department |
|
|
[comptroller] makes the determination of the amount of municipal |
|
|
sales and use tax revenue under Subsection (b)(2). The comptroller |
|
|
shall discontinue retaining municipal sales and use tax revenue |
|
|
under this subsection on the earlier of: |
|
|
(1) the end of the third calendar month following the |
|
|
month in which the closing event of the games occurs; or |
|
|
(2) the date the amount of municipal sales and use tax |
|
|
revenue and municipal hotel occupancy tax revenue in the Pan |
|
|
American Games reimbursement [trust] fund equals 14 percent of the |
|
|
maximum amount of state and municipal tax revenue that may be |
|
|
transferred to or deposited in the [trust] fund under Subsection |
|
|
(m) of this section. |
|
|
(f) Subject to Subsection (m) of this section, the |
|
|
comptroller, at the direction of the department, shall deposit into |
|
|
a [trust] fund designated as the Pan American Games reimbursement |
|
|
[trust] fund the amount of municipal sales and use tax revenue |
|
|
retained under Subsection (d) of this section and, at the same time, |
|
|
shall transfer to the fund a portion of the state tax revenue |
|
|
determined by the department under Subsection (b)(1) of this |
|
|
section in an amount equal to 6.25 times the amount of that |
|
|
municipal sales and use tax revenue. Subject to Subsection (m) of |
|
|
this section, the endorsing municipality shall deposit into the |
|
|
[trust] fund the amount of the endorsing municipality's hotel |
|
|
occupancy tax revenue determined by the department under Subsection |
|
|
(b)(3) of this section. The endorsing municipality shall deposit |
|
|
that hotel occupancy tax revenue into the [trust] fund at least |
|
|
quarterly. When the endorsing municipality makes a deposit of its |
|
|
hotel occupancy tax revenue, the comptroller, at the direction of |
|
|
the department, shall transfer to the fund [deposit] at the same |
|
|
time a portion of the state tax revenue determined under Subsection |
|
|
(b)(1) of this section in an amount equal to 6.25 times the amount |
|
|
of that municipal hotel occupancy tax revenue. The Pan American |
|
|
Games reimbursement [trust] fund is established outside the |
|
|
treasury but is held in trust by the comptroller for the |
|
|
administration of this Act. Money in the [trust] fund may be spent |
|
|
by the department without appropriation only as provided by this |
|
|
Act. The comptroller shall discontinue transferring [depositing] |
|
|
into the [trust] fund any state tax revenue determined by the |
|
|
department under Subsection (b)(1) of this section on the earlier |
|
|
of: |
|
|
(1) the end of the third calendar month following the |
|
|
month in which the closing event of the games occurs; or |
|
|
(2) the date on which the amount of state revenue in |
|
|
the Pan American Games reimbursement [trust] fund equals 86 percent |
|
|
of the maximum amount of state and municipal tax revenue that may be |
|
|
transferred to or deposited in the [trust] fund under Subsection |
|
|
(m) of this section. |
|
|
(g) The department may use the money [funds] in the Pan |
|
|
American Games reimbursement [trust] fund only to fulfill joint |
|
|
obligations of the state and the endorsing municipality to a site |
|
|
selection organization under a games support contract or any other |
|
|
agreement providing assurances from the department or the endorsing |
|
|
municipality to a site selection organization. |
|
|
(h) A local organizing committee shall provide information |
|
|
required by the department [comptroller] to enable the department |
|
|
[comptroller] to fulfill the department's [comptroller's] duties |
|
|
under this Act, including annual audited statements of the local |
|
|
organizing committee's financial records required by a site |
|
|
selection organization and data obtained by the local organizing |
|
|
committee relating to attendance at the games and to the economic |
|
|
impact of the games. A local organizing committee must provide an |
|
|
annual audited financial statement required by the department |
|
|
[comptroller] not later than the end of the fourth month after the |
|
|
date the period covered by the financial statement ends. |
|
|
(j) The department may not make a disbursement from the Pan |
|
|
American Games reimbursement [trust] fund unless the department |
|
|
[comptroller] certifies that the disbursement is for a purpose for |
|
|
which the state and the endorsing municipality are jointly |
|
|
obligated under a games support contract or other agreement |
|
|
described by Subsection (g) of this section. |
|
|
(k) If the department [comptroller] certifies under |
|
|
Subsection (j) of this section that a disbursement may be made from |
|
|
the Pan American Games reimbursement [trust] fund, the obligation |
|
|
shall be satisfied first out of municipal revenue deposited in the |
|
|
[trust] fund and any interest earned on that municipal revenue. If |
|
|
the municipal revenue is not sufficient to satisfy the entire |
|
|
deficit, state revenue transferred [deposited] into the [trust] |
|
|
fund and any interest earned on that state revenue shall be used to |
|
|
satisfy the portion of the deficit not covered by the municipal |
|
|
revenue. |
|
|
(m) In no event may: |
|
|
(1) the total amount of state and municipal tax |
|
|
revenue transferred to or deposited in the Pan American Games |
|
|
reimbursement [trust] fund exceed $20 million; or |
|
|
(2) the joint liability of the state and the endorsing |
|
|
municipality under a joinder agreement and any other games support |
|
|
contracts entered into pursuant to this Act exceed the lesser of: |
|
|
(A) $20 million; or |
|
|
(B) the total amount of revenue transferred to or |
|
|
deposited in the Pan American Games reimbursement [trust] fund and |
|
|
interest earned on the fund. |
|
|
SECTION 2.03. Sections 4(i) and (l), Chapter 1507 (S.B. |
|
|
456), Acts of the 76th Legislature, Regular Session, 1999 (Article |
|
|
5190.14, Vernon's Texas Civil Statutes), as amended by Chapters 579 |
|
|
(H.B. 1675) and 814 (S.B. 275), Acts of the 78th Legislature, |
|
|
Regular Session, 2003, are reenacted and amended to read as |
|
|
follows: |
|
|
(i) The department [comptroller] shall provide an estimate |
|
|
not later than September [December] 1 [, 2003,] of the year that is |
|
|
eight years before the year in which the games would be held in this |
|
|
state of the total amount of state and municipal tax revenue that |
|
|
would be transferred to or deposited in the Pan American Games |
|
|
reimbursement [trust] fund before January 1 [, 2012,] of the year |
|
|
following the year in which the games would be held, if the games |
|
|
were to be held in this state at a site selected pursuant to an |
|
|
application by a local organizing committee. The department |
|
|
[comptroller] shall provide the estimate on request to a local |
|
|
organizing committee. A local organizing committee may submit the |
|
|
department's [comptroller's] estimate to a site selection |
|
|
organization. |
|
|
(l) On January 1 [, 2013,] of the second year following the |
|
|
year in which the games are held in this state, the comptroller, at |
|
|
the direction of the department, shall transfer to the general |
|
|
revenue fund any money remaining in the Pan American Games |
|
|
reimbursement [trust] fund, not to exceed the amount of state |
|
|
revenue remaining in the [trust] fund, plus any interest earned on |
|
|
that state revenue. The comptroller shall remit to the endorsing |
|
|
municipality any money remaining in the [trust] fund after the |
|
|
required amount is transferred to the general revenue fund. |
|
|
SECTION 2.04. The heading to Section 5, 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. 5. GUARANTEE OF STATE AND MUNICIPAL OBLIGATIONS; |
|
|
OLYMPIC GAMES REIMBURSEMENT [TRUST] FUND. |
|
|
SECTION 2.05. Sections 5(b), (c), (d), (f), (g), (h), (i), |
|
|
(j), (k), (l), and (m), 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: |
|
|
(b) If a site selection organization selects a site for the |
|
|
games in this state pursuant to an application by a local organizing |
|
|
committee, after the first occurrence of a measurable economic |
|
|
impact in this state as a result of the preparation for the games, |
|
|
as determined by the department [comptroller], but in no event |
|
|
later than one year before the scheduled opening event of the games, |
|
|
the department [comptroller] shall determine for each subsequent |
|
|
calendar quarter, in accordance with procedures developed by the |
|
|
department [comptroller]: |
|
|
(1) the incremental increase in the receipts to the |
|
|
state from the taxes imposed under Chapters 151, 152, 156, and 183, |
|
|
Tax Code, and under Title 5, Alcoholic Beverage Code, within the |
|
|
market areas designated under Subsection (c) of this section, that |
|
|
is directly attributable, as determined by the department |
|
|
[comptroller], to the preparation for and presentation of the games |
|
|
and related events; |
|
|
(2) the incremental increase in the receipts collected |
|
|
by the state on behalf of each endorsing municipality from the sales |
|
|
and use tax imposed by the endorsing municipality under Section |
|
|
321.101(a), Tax Code, and the mixed beverage tax revenue to be |
|
|
received by the endorsing municipality under Section 183.051(b), |
|
|
Tax Code, that is directly attributable, as determined by the |
|
|
department [comptroller], to the preparation for and presentation |
|
|
of the games and related events; |
|
|
(3) the incremental increase in the receipts collected |
|
|
by the state on behalf of each endorsing county from the sales and |
|
|
use tax imposed by the county under Section 323.101(a), Tax Code, |
|
|
and the mixed beverage tax revenue to be received by the endorsing |
|
|
county under Section 183.051(b), Tax Code, that is directly |
|
|
attributable, as determined by the department [comptroller], to the |
|
|
preparation for and presentation of the games and related events; |
|
|
(4) the incremental increase in the receipts collected |
|
|
by each endorsing municipality from the hotel occupancy tax imposed |
|
|
under Chapter 351, Tax Code, that is directly attributable, as |
|
|
determined by the department [comptroller], to the preparation for |
|
|
and presentation of the games and related events; and |
|
|
(5) the incremental increase in the receipts collected |
|
|
by each endorsing county from the hotel occupancy tax imposed under |
|
|
Chapter 352, Tax Code, that is directly attributable, as determined |
|
|
by the department [comptroller], to the preparation for and |
|
|
presentation of the games and related events. |
|
|
(c) For the purposes of Subsection (b)(1) of this section, |
|
|
the department [comptroller] shall designate as a market area for |
|
|
the games each area in which the department [comptroller] |
|
|
determines there is a reasonable likelihood of measurable economic |
|
|
impact directly attributable to the preparation for and |
|
|
presentation of the games and related events, including areas |
|
|
likely to provide venues, accommodations, and services in |
|
|
connection with the games based on the proposal provided by the |
|
|
local organizing committee under Section 7 of this Act. The |
|
|
department [comptroller] shall determine the geographic boundaries |
|
|
of each market area. Each endorsing municipality or endorsing |
|
|
county that has been selected as the site for the games must be |
|
|
included in a market area for the games. |
|
|
(d) Subject to Section 6 of this Act, the comptroller, at |
|
|
the direction of the department, shall retain, for the purpose of |
|
|
guaranteeing the joint obligations of the state and an endorsing |
|
|
municipality or endorsing county under a games support contract and |
|
|
this Act, 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 Section 183.051(b) or 321.502, Tax Code, or to |
|
|
the county under Section 183.051(b) or 323.502, Tax Code, beginning |
|
|
with the first distribution of that tax revenue that occurs after |
|
|
the date the department [comptroller] makes the determination of |
|
|
the amount of sales and use tax revenue and mixed beverage tax |
|
|
revenue under Subsection (b)(2) or (b)(3) of this section. The |
|
|
comptroller shall discontinue retaining sales and use tax revenue |
|
|
and mixed beverage tax revenue under this subsection on the earlier |
|
|
of: |
|
|
(1) the end of the third calendar month following the |
|
|
month in which the closing event of the games occurs; or |
|
|
(2) the date the amount of local sales and use tax |
|
|
revenue and mixed beverage tax revenue in the Olympic Games |
|
|
reimbursement [trust] fund equals 14 percent of the maximum amount |
|
|
of state and local tax revenue that may be transferred to or |
|
|
deposited in the [trust] fund under Subsection (m) of this section. |
|
|
(f) Subject to Subsection (m) of this section, each |
|
|
endorsing municipality or endorsing county shall remit to the |
|
|
comptroller and the comptroller, at the direction of the |
|
|
department, shall deposit into a trust fund designated as the |
|
|
Olympic Games reimbursement [trust] fund, on a quarterly basis, the |
|
|
amount of the municipality's or county's hotel occupancy tax |
|
|
revenue determined by the department under Subsection (b)(4) or |
|
|
(b)(5) of this section, as applicable. Subject to Section 6 of this |
|
|
Act and Subsection (m) of this section, the comptroller, at the |
|
|
direction of the department, shall deposit into the [trust] fund |
|
|
the amount of sales and use tax revenue and mixed beverage tax |
|
|
revenue retained under Subsection (d) of this section for the same |
|
|
calendar quarter and, at the same time, shall transfer to the fund |
|
|
the state tax revenue determined by the department under Subsection |
|
|
(b)(1) of this section for the quarter. The Olympic Games |
|
|
reimbursement [trust] fund is established outside the treasury but |
|
|
is held in trust by the comptroller for the administration of this |
|
|
Act. Money in the [trust] fund may be spent by the department |
|
|
without appropriation only as provided by this Act. The |
|
|
comptroller shall discontinue transfer [deposit] of the amount of |
|
|
state tax revenue determined by the department under Subsection |
|
|
(b)(1) of this section on the earlier of: |
|
|
(1) the end of the third calendar month following the |
|
|
month in which the closing event of the games occurs; or |
|
|
(2) the date the amount of state revenue in the Olympic |
|
|
Games reimbursement [trust] fund equals 86 percent of the maximum |
|
|
amount of state, municipal, and county tax revenue that may be |
|
|
transferred to or deposited in the [trust] fund under Subsection |
|
|
(m) of this section. |
|
|
(g) The department may use the money [funds] in the Olympic |
|
|
Games reimbursement [trust] fund only to fulfill joint obligations |
|
|
of the state and each endorsing municipality or endorsing county to |
|
|
a site selection organization under a games support contract or any |
|
|
other agreement providing assurances from the department or the |
|
|
municipality or county to a site selection organization. |
|
|
(h) A local organizing committee shall provide information |
|
|
required by the department [comptroller] to enable the department |
|
|
[comptroller] to fulfill the department's [comptroller's] duties |
|
|
under this Act, including annual audited statements of the local |
|
|
organizing committee's financial records required by a site |
|
|
selection organization and data obtained by the local organizing |
|
|
committee relating to attendance at the games and to the economic |
|
|
impact of the games. A local organizing committee must provide an |
|
|
annual audited financial statement required by the department |
|
|
[comptroller] not later than the end of the fourth month after the |
|
|
date the period covered by the financial statement ends. |
|
|
(i) The department [comptroller] shall provide an estimate |
|
|
before August 31 of the year that is 12 years before the year in |
|
|
which the games would be held in this state, or as soon as practical |
|
|
after that date, of the total amount of state, municipal, and county |
|
|
tax revenue that would be transferred to or deposited in the Olympic |
|
|
Games reimbursement [trust] fund if the games were to be held in |
|
|
this state at a site selected pursuant to an application by a local |
|
|
organizing committee. The department [comptroller] shall provide |
|
|
the estimate on request to a local organizing committee. A local |
|
|
organizing committee may submit the department's [comptroller's] |
|
|
estimate to a site selection organization. |
|
|
(j) The department may not make a disbursement from the |
|
|
Olympic Games reimbursement [trust] fund unless the department |
|
|
[comptroller] certifies that the disbursement is for a purpose for |
|
|
which the state and each endorsing municipality or endorsing county |
|
|
are jointly obligated under a games support contract or other |
|
|
agreement described by Subsection (g) of this section. A |
|
|
disbursement may not be made from the [trust] fund that the |
|
|
department determines would be used for the purpose of soliciting |
|
|
the relocation of a professional sports franchise located in this |
|
|
state. |
|
|
(k) If the department [comptroller] certifies under |
|
|
Subsection (j) of this section that a disbursement may be made from |
|
|
the Olympic Games reimbursement [trust] fund, the obligation shall |
|
|
be satisfied proportionately from the state and municipal or county |
|
|
revenue in the [trust] fund. |
|
|
(l) Two years after the closing event of the games, the |
|
|
department [comptroller] shall transfer to the general revenue fund |
|
|
any money remaining in the Olympic Games reimbursement [trust] |
|
|
fund, not to exceed the amount of state revenue remaining in the |
|
|
[trust] fund, plus any interest earned on that state revenue. The |
|
|
department [comptroller] shall remit to each endorsing entity in |
|
|
proportion to the amount contributed by the entity any money |
|
|
remaining in the [trust] fund after the required amount is |
|
|
transferred to the general revenue fund. |
|
|
(m) In no event may: |
|
|
(1) the total amount of state, municipal, and county |
|
|
tax revenue transferred to or deposited in the Olympic Games |
|
|
reimbursement [trust] fund exceed $100 million; or |
|
|
(2) the joint liability of the state and an endorsing |
|
|
municipality or county under a joinder agreement and any other |
|
|
games support contracts entered into pursuant to this Act exceed |
|
|
the lesser of: |
|
|
(A) $100 million; or |
|
|
(B) the total amount of revenue transferred to or |
|
|
deposited in the Olympic Games reimbursement [trust] fund and |
|
|
interest earned on the fund. |
|
|
SECTION 2.06. 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; MAJOR EVENTS REIMBURSEMENT [TRUST] FUND. |
|
|
SECTION 2.07. Sections 5A(a)(1) and (2), 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: |
|
|
(1) "Endorsing county" means: |
|
|
(A) a county that contains a site selected by a |
|
|
site selection organization for one or more events; or |
|
|
(B) a county that: |
|
|
(i) does not contain a site selected by a |
|
|
site selection organization for an event; |
|
|
(ii) is included in the market area for the |
|
|
event as designated by the department [comptroller]; and |
|
|
(iii) is a party to an event support |
|
|
contract. |
|
|
(2) "Endorsing municipality" means: |
|
|
(A) a municipality that contains a site selected |
|
|
by a site selection organization for one or more events; or |
|
|
(B) a municipality that: |
|
|
(i) does not contain a site selected by a |
|
|
site selection organization for an event; |
|
|
(ii) is included in the market area for the |
|
|
event as designated by the department [comptroller]; and |
|
|
(iii) is a party to an event support |
|
|
contract. |
|
|
SECTION 2.08. Sections 5A(a-1), (a-2), (b), (b-1), (c), |
|
|
(d), (d-1), (e), (f), (g), (i), (j), (k), (l), (m), (p), (v), (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 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 department [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. |
|
|
(a-2) Subsection (a-1)(1) of this section does not apply to |
|
|
an event that is the largest event held each year at a sports |
|
|
entertainment venue in this state with a permanent seating |
|
|
capacity, including grandstand and premium seating, of not less |
|
|
than 125,000. If an endorsing municipality or endorsing county |
|
|
requests the department [comptroller] to make a determination under |
|
|
Subsection (b) of this section for an event described by this |
|
|
subsection, the provisions of this section apply to that event as if |
|
|
it satisfied the eligibility requirements for an event under |
|
|
Subsection (a-1)(1) of this section. |
|
|
(b) If a site selection organization selects a site for an |
|
|
event in this state pursuant to an application by a local organizing |
|
|
committee, endorsing municipality, or endorsing county, upon |
|
|
request of a local organizing committee, endorsing municipality, or |
|
|
endorsing county, the department [comptroller] shall determine for |
|
|
a one-year period that begins two months before the date on which |
|
|
the event will begin, in accordance with procedures developed by |
|
|
the department [comptroller]: |
|
|
(1) the incremental increase in the receipts to the |
|
|
state from taxes imposed under Chapters 151, 152, 156, and 183, Tax |
|
|
Code, and under Title 5, Alcoholic Beverage Code, within the market |
|
|
areas designated under Subsection (c) of this section, that is |
|
|
directly attributable, as determined by the department |
|
|
[comptroller], to the preparation for and presentation of the event |
|
|
and related activities; |
|
|
(2) the incremental increase in the receipts collected |
|
|
by the state on behalf of each endorsing municipality in the market |
|
|
area from the sales and use tax imposed by each endorsing |
|
|
municipality under Section 321.101(a), Tax Code, and the mixed |
|
|
beverage tax revenue to be received by each endorsing municipality |
|
|
under Section 183.051(b), Tax Code, that is directly attributable, |
|
|
as determined by the department [comptroller], to the preparation |
|
|
for and presentation of the event and related activities; |
|
|
(3) the incremental increase in the receipts collected |
|
|
by the state on behalf of each endorsing county in the market area |
|
|
from the sales and use tax imposed by each endorsing county under |
|
|
Section 323.101(a), Tax Code, and the mixed beverage tax revenue to |
|
|
be received by each endorsing county under Section 183.051(b), Tax |
|
|
Code, that is directly attributable, as determined by the |
|
|
department [comptroller], to the preparation for and presentation |
|
|
of the event and related activities; |
|
|
(4) the incremental increase in the receipts collected |
|
|
by each endorsing municipality in the market area from the hotel |
|
|
occupancy tax imposed under Chapter 351, Tax Code, that is directly |
|
|
attributable, as determined by the department [comptroller], to the |
|
|
preparation for and presentation of the event and related |
|
|
activities; and |
|
|
(5) the incremental increase in the receipts collected |
|
|
by each endorsing county in the market area from the hotel occupancy |
|
|
tax imposed under Chapter 352, Tax Code, that is directly |
|
|
attributable, as determined by the department [comptroller], to the |
|
|
preparation for and presentation of the event and related |
|
|
activities. |
|
|
(b-1) A request for a determination of the amount of |
|
|
incremental increase in tax receipts specified by Subsection (b) of |
|
|
this section must be submitted to the department [comptroller] not |
|
|
earlier than one year and not later than 45 days before the date the |
|
|
event begins. The department [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 department |
|
|
[comptroller] receives the request and related information. |
|
|
(c) For the purposes of Subsection (b)(1) of this section, |
|
|
the department [comptroller] shall designate as a market area for |
|
|
the event each area in which the department [comptroller] |
|
|
determines there is a reasonable likelihood of measurable economic |
|
|
impact directly attributable to the preparation for and |
|
|
presentation of the event and related activities, including areas |
|
|
likely to provide venues, accommodations, and services in |
|
|
connection with the event based on the proposal provided by the |
|
|
local organizing committee to the department [comptroller]. The |
|
|
department [comptroller] shall determine the geographic boundaries |
|
|
of each market area. An endorsing municipality or endorsing county |
|
|
that has been selected as the site for the event must be included in |
|
|
a market area for the event. |
|
|
(d) Each endorsing municipality or endorsing county shall |
|
|
remit to the comptroller and the comptroller shall deposit into a |
|
|
[trust] fund created by the comptroller, at the direction of the |
|
|
department, and designated as the Major Events reimbursement |
|
|
[trust] fund the amount of the municipality's or county's hotel |
|
|
occupancy tax revenue determined by the department 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, at the |
|
|
direction of the department, shall retain the amount of sales and |
|
|
use tax revenue and mixed beverage tax revenue determined by the |
|
|
department 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 |
|
|
department [comptroller] and shall discontinue retaining the local |
|
|
tax revenues under this subsection when the amount of the |
|
|
applicable tax revenue determined by the department under |
|
|
Subsection (b)(2) or (b)(3) of this section has been retained. The |
|
|
Major Events reimbursement [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 department [comptroller] without appropriation |
|
|
only as provided by this section. |
|
|
(d-1) Not later than the 90th day after the last day of an |
|
|
event 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 department [comptroller] |
|
|
for deposit in the Major Events reimbursement [trust] fund other |
|
|
local funds in an amount equal to the total amount of local tax |
|
|
revenue determined by the department under Subsections (b)(2) |
|
|
through (5) of this section. The amount deposited by the |
|
|
department [comptroller] into the Major Events reimbursement |
|
|
[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 [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 |
|
|
department [comptroller] surcharges and user fees attributable to |
|
|
the event for deposit into the Major Events reimbursement [trust] |
|
|
fund. |
|
|
(f) The comptroller, at the direction of the department, |
|
|
shall transfer [deposit] into the Major Events reimbursement |
|
|
[trust] fund a portion of the state tax revenue not to exceed the |
|
|
amount determined by the department under Subsection (b)(1) of this |
|
|
section in an amount equal to 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 [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. |
|
|
(i) A local organizing committee, endorsing municipality, |
|
|
or endorsing county shall provide information required by the |
|
|
department [comptroller] to enable the department [comptroller] to |
|
|
fulfill the department's [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 department [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 department's [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 department |
|
|
[comptroller] considers necessary. |
|
|
(j) Not later than the 30th day after the date a request of a |
|
|
local organizing committee, endorsing municipality, or endorsing |
|
|
county is submitted to the department [comptroller] under |
|
|
Subsection (b-1) of this section, the department [comptroller] |
|
|
shall provide an estimate of the total amount of tax revenue that |
|
|
would be deposited in the Major Events reimbursement [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 |
|
|
department's [comptroller's] estimate to a site selection |
|
|
organization. |
|
|
(k) The department [comptroller] may make a disbursement |
|
|
from the Major Events reimbursement [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 department |
|
|
[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 department [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 [trust] fund under Subsection (k) of this section, |
|
|
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 |
|
|
department [comptroller] shall remit to each endorsing entity, in |
|
|
proportion to the amount contributed by the entity, any money |
|
|
remaining in the [trust] fund. |
|
|
(p) The department [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 accompanied by documentation from a |
|
|
site selection organization selecting the site for the event. |
|
|
(v) The department [comptroller] may adopt rules necessary |
|
|
to implement this section. |
|
|
(w) Not later than 10 months after the last day of an event |
|
|
eligible for disbursements from the Major Events reimbursement |
|
|
[trust] fund for costs associated with the event, the department |
|
|
[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 department [comptroller] |
|
|
shall post on the department's [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 department [comptroller] for the |
|
|
study; |
|
|
(2) the amount of incremental increase in tax receipts |
|
|
for the event determined by the department 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 |
|
|
department [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 department [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 department |
|
|
[comptroller] shall compare information on the actual attendance |
|
|
figures provided to the department [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 |
|
|
department [comptroller] may reduce the amount of a disbursement |
|
|
for an endorsing entity under the Major Events reimbursement |
|
|
[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 department |
|
|
[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 2.09. The heading to Section 5B, 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. 5B. GUARANTEE OF STATE AND MUNICIPAL OR COUNTY |
|
|
OBLIGATIONS; MOTOR SPORTS RACING REIMBURSEMENT [TRUST] FUND. |
|
|
SECTION 2.10. Sections 5B(b), (c), (d), (e), (f), (g), (h), |
|
|
(i), (j), (k), (l), (m), and (o), 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: |
|
|
(b) If a site selection organization selects a site for a |
|
|
motor sports racing event in this state pursuant to an application |
|
|
by a local organizing committee, endorsing municipality, or |
|
|
endorsing county, not later than three months before the date of the |
|
|
motor sports racing event, the department [comptroller] shall |
|
|
determine for the 30-day period that ends at the end of the day |
|
|
after the date on which the racing event will be held, in accordance |
|
|
with procedures developed by the department [comptroller]: |
|
|
(1) the incremental increase in the receipts to the |
|
|
state from taxes imposed under Chapters 151, 152, 156, and 183, Tax |
|
|
Code, and under Title 5, Alcoholic Beverage Code, within the market |
|
|
areas designated under Subsection (c) of this section, that is |
|
|
directly attributable, as determined by the department |
|
|
[comptroller], to the preparation for and presentation of the |
|
|
racing event; |
|
|
(2) the incremental increase in the receipts collected |
|
|
by the state on behalf of each endorsing municipality in the market |
|
|
area from the sales and use tax imposed by each endorsing |
|
|
municipality under Section 321.101(a), Tax Code, and the mixed |
|
|
beverage tax revenue to be received by each endorsing municipality |
|
|
under Section 183.051(b), Tax Code, that is directly attributable, |
|
|
as determined by the department [comptroller], to the preparation |
|
|
for and presentation of the racing event; |
|
|
(3) the incremental increase in the receipts collected |
|
|
by the state on behalf of each endorsing county in the market area |
|
|
from the sales and use tax imposed by each endorsing county under |
|
|
Section 323.101(a), Tax Code, and the mixed beverage tax revenue to |
|
|
be received by each endorsing county under Section 183.051(b), Tax |
|
|
Code, that is directly attributable, as determined by the |
|
|
department [comptroller], to the preparation for and presentation |
|
|
of the racing event; |
|
|
(4) the incremental increase in the receipts collected |
|
|
by each endorsing municipality in the market area from the hotel |
|
|
occupancy tax imposed under Chapter 351, Tax Code, that is directly |
|
|
attributable, as determined by the department [comptroller], to the |
|
|
preparation for and presentation of the racing event; and |
|
|
(5) the incremental increase in the receipts collected |
|
|
by each endorsing county in the market area from the hotel occupancy |
|
|
tax imposed under Chapter 352, Tax Code, that is directly |
|
|
attributable, as determined by the department [comptroller], to the |
|
|
preparation for and presentation of the racing event. |
|
|
(c) For the purposes of Subsection (b)(1) of this section, |
|
|
the department [comptroller] shall designate as a market area for |
|
|
the motor sports racing event each area in which the department |
|
|
[comptroller] determines there is a reasonable likelihood of |
|
|
measurable economic impact directly attributable to the |
|
|
preparation for and presentation of the racing event, including |
|
|
areas likely to provide venues, accommodations, and services in |
|
|
connection with the racing event based on a proposal or other |
|
|
information provided by an endorsing municipality, endorsing |
|
|
county, or local organizing committee to the department |
|
|
[comptroller]. The department [comptroller] shall determine the |
|
|
geographic boundaries of each market area. An endorsing |
|
|
municipality or endorsing county that has been selected as the site |
|
|
for the racing event must be included in a market area for the |
|
|
racing event. |
|
|
(d) Each endorsing municipality or endorsing county shall |
|
|
remit to the comptroller and the comptroller shall deposit into a |
|
|
[trust] fund created by the comptroller, at the direction of the |
|
|
department, and designated as the Motor Sports Racing reimbursement |
|
|
[trust] fund for the particular event the amount of the |
|
|
municipality's or county's hotel occupancy tax revenue determined |
|
|
by the department under Subsection (b)(4) or (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, at the direction of the department, |
|
|
shall retain the amount of sales and use tax revenue and mixed |
|
|
beverage tax revenue determined by the department under Subsection |
|
|
(b)(2) or (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 30-day period |
|
|
described by Subsection (b) of this section 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 (3) of this section has been retained. The Motor Sports |
|
|
Racing reimbursement [trust] fund is established outside the state |
|
|
treasury and is held in trust by the comptroller for administration |
|
|
of this section. Money in the [trust] fund may be disbursed by the |
|
|
department [comptroller] without appropriation only as provided by |
|
|
this section. |
|
|
(e) In addition to the tax revenue deposited in the Motor |
|
|
Sports Racing reimbursement [trust] fund under Subsection (d) of |
|
|
this section, an endorsing municipality or endorsing county may |
|
|
guarantee its obligations under a motor sports racing event support |
|
|
contract and this section by pledging surcharges from user fees, |
|
|
including parking or ticket fees, charged in connection with the |
|
|
racing event. |
|
|
(f) The comptroller, at the direction of the department, |
|
|
shall transfer [deposit] a portion of the state tax revenue |
|
|
determined by the department under Subsection (b)(1) of this |
|
|
section in an amount equal to 6.25 times the amount of the local |
|
|
sales and use tax revenue and mixed beverage tax revenue retained |
|
|
and the hotel occupancy tax revenue remitted by an endorsing |
|
|
municipality or endorsing county under Subsection (d) of this |
|
|
section. |
|
|
(g) To meet its obligations under a motor sports racing |
|
|
event support contract or event support contract to improve, |
|
|
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 transferred or deposited into |
|
|
the Motor Sports Racing reimbursement [trust] fund or surcharges |
|
|
from user fees, including parking or ticket fees, charged in |
|
|
connection with the racing event. Any note issued must mature not |
|
|
later than seven years from its date of issuance. |
|
|
(h) The money [funds] in the Motor Sports Racing |
|
|
reimbursement [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 motor sports racing |
|
|
event support contract or event support contract, which obligations |
|
|
may include the payment of costs relating to the preparations |
|
|
necessary or desirable for the conduct of the racing event and the |
|
|
payment of costs of conducting the racing event, including |
|
|
temporary improvements or temporary renovations to existing |
|
|
facilities or other facilities specific to the event. |
|
|
(i) A local organizing committee, endorsing municipality, |
|
|
or endorsing county shall provide information required by the |
|
|
department [comptroller] to enable the department [comptroller] to |
|
|
fulfill the department's [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 motor sports racing |
|
|
event and to the economic impact of the racing event. A local |
|
|
organizing committee, endorsing municipality, or endorsing county |
|
|
must provide an annual audited financial statement required by the |
|
|
department [comptroller], if any, not later than the end of the |
|
|
fourth month after the date the period covered by the financial |
|
|
statement ends. |
|
|
(j) The department [comptroller] shall provide an estimate |
|
|
not later than three months before the date of a motor sports racing |
|
|
event of the total amount of tax revenue that would be transferred |
|
|
to or deposited in the Motor Sports Racing reimbursement [trust] |
|
|
fund under this section in connection with that racing event, if the |
|
|
racing 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. The department |
|
|
[comptroller] shall provide the estimate on request to a local |
|
|
organizing committee, endorsing municipality, or endorsing county. |
|
|
A local organizing committee, endorsing municipality, or endorsing |
|
|
county may submit the department's [comptroller's] estimate to a |
|
|
site selection organization. |
|
|
(k) The department [comptroller] may make a disbursement |
|
|
from the Motor Sports Racing reimbursement [trust] fund on the |
|
|
prior approval of each contributing endorsing municipality or |
|
|
endorsing county for a purpose for which an endorsing municipality |
|
|
or endorsing county or the state is obligated under a motor sports |
|
|
racing event support contract or event support contract. A |
|
|
disbursement may not be made from the [trust] fund that the |
|
|
department [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 Motor Sports Racing |
|
|
reimbursement [trust] fund under Subsection (k) of this section, |
|
|
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 motor sports racing support contract or event |
|
|
support contract related to the location of any particular racing |
|
|
event in the state, the department [comptroller] shall remit to |
|
|
each endorsing entity, in proportion to the amount contributed by |
|
|
the entity, any money remaining in the [trust] fund. |
|
|
(o) The department [comptroller] may not undertake any of |
|
|
the responsibilities or duties set forth in this section unless a |
|
|
request is submitted by the municipality and the county in which the |
|
|
motor sports racing event will be held. The request must be |
|
|
accompanied by documentation from a site selection organization |
|
|
selecting the site for the racing event. |
|
|
SECTION 2.11. The heading to 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 to read as |
|
|
follows: |
|
|
Sec. 5C. EVENTS REIMBURSEMENT [TRUST] FUND FOR CERTAIN |
|
|
MUNICIPALITIES AND COUNTIES. |
|
|
SECTION 2.12. Sections 5C(b), (b-1), (c), (c-1), (d), |
|
|
(d-1), (e), (f), (g), (h), (i), (j), (k), (k-1), (k-2), (l), (m), |
|
|
(o), (p), (q), (r), and (t), 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: |
|
|
(b) If a site selection organization selects a site for an |
|
|
event in this state pursuant to an application by a local organizing |
|
|
committee, endorsing municipality, or endorsing county, not later |
|
|
than three months before the date of the event, the department |
|
|
[comptroller] shall determine for the 30-day period that ends at |
|
|
the end of the day after the date on which the event will be held or, |
|
|
if the event occurs on more than one day, after the last date on |
|
|
which the event will be held, in accordance with procedures |
|
|
developed by the department [comptroller]: |
|
|
(1) the incremental increase in the receipts to this |
|
|
state from taxes imposed under Chapters 151, 152, 156, and 183, Tax |
|
|
Code, and under Title 5, Alcoholic Beverage Code, within the market |
|
|
areas designated under Subsection (c) of this section, that is |
|
|
directly attributable, as determined by the department |
|
|
[comptroller], to the preparation for and presentation of the event |
|
|
and related activities; |
|
|
(2) the incremental increase in the receipts collected |
|
|
by this state on behalf of each endorsing municipality in the market |
|
|
area from the sales and use tax imposed by each endorsing |
|
|
municipality under Section 321.101(a), Tax Code, and the mixed |
|
|
beverage tax revenue to be received by each endorsing municipality |
|
|
under Section 183.051(b), Tax Code, that is directly attributable, |
|
|
as determined by the department [comptroller], to the preparation |
|
|
for and presentation of the event and related activities; |
|
|
(3) the incremental increase in the receipts collected |
|
|
by this state on behalf of each endorsing county in the market area |
|
|
from the sales and use tax imposed by each endorsing county under |
|
|
Section 323.101(a), Tax Code, and the mixed beverage tax revenue to |
|
|
be received by each endorsing county under Section 183.051(b), Tax |
|
|
Code, that is directly attributable, as determined by the |
|
|
department [comptroller], to the preparation for and presentation |
|
|
of the event and related activities; |
|
|
(4) the incremental increase in the receipts collected |
|
|
by each endorsing municipality in the market area from the hotel |
|
|
occupancy tax imposed under Chapter 351, Tax Code, that is directly |
|
|
attributable, as determined by the department [comptroller], to the |
|
|
preparation for and presentation of the event and related |
|
|
activities; and |
|
|
(5) the incremental increase in the receipts collected |
|
|
by each endorsing county in the market area from the hotel occupancy |
|
|
tax imposed under Chapter 352, Tax Code, that is directly |
|
|
attributable, as determined by the department [comptroller], to the |
|
|
preparation for and presentation of the event and related |
|
|
activities. |
|
|
(b-1) The number of requests for funding under this section |
|
|
that may be submitted by an endorsing county or endorsing |
|
|
municipality during any 12-month period for an event for which the |
|
|
department [comptroller] determines that the total amount of the |
|
|
incremental increase in tax receipts under Subsection (b) of this |
|
|
section is less than $200,000 is limited to, during any 12-month |
|
|
period, not more than 10 events, only three of which may be |
|
|
nonsporting events. |
|
|
(c) For the purposes of Subsection (b)(1) of this section, |
|
|
the department [comptroller] shall designate as a market area for |
|
|
the event each area in which the department [comptroller] |
|
|
determines there is a reasonable likelihood of measurable economic |
|
|
impact directly attributable to the preparation for and |
|
|
presentation of the event and related activities, including areas |
|
|
likely to provide venues, accommodations, and services in |
|
|
connection with the event based on the proposal provided by the |
|
|
local organizing committee to the department [comptroller]. The |
|
|
department [comptroller] shall determine the geographic boundaries |
|
|
of each market area. An endorsing municipality or endorsing county |
|
|
that has been selected as the site for the event must be included in |
|
|
a market area for the event. |
|
|
(c-1) The department [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 department |
|
|
[comptroller] receives the information. |
|
|
(d) Each endorsing municipality or endorsing county shall |
|
|
remit to the comptroller and the comptroller shall deposit into a |
|
|
[trust] fund created by the comptroller, at the direction of the |
|
|
department, and designated as the Events reimbursement [trust] fund |
|
|
the amount of the municipality's or county's hotel occupancy tax |
|
|
revenue determined by the department under Subsection (b)(4) or (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, at the |
|
|
direction of the department, shall retain the amount of sales and |
|
|
use tax revenue and mixed beverage tax revenue determined by the |
|
|
department under Subsection (b)(2) or (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 period described by Subsection (b) of this section or at |
|
|
a time otherwise determined to be practicable by the department |
|
|
[comptroller] and shall discontinue retaining the local tax |
|
|
revenues under this subsection when the amount of the applicable |
|
|
tax revenue determined by the department under Subsection (b)(2) or |
|
|
(3) of this section has been retained. The Events reimbursement |
|
|
[trust] fund is established outside the state treasury and is held |
|
|
in trust by the comptroller for administration of this section. |
|
|
Money in the [trust] fund may be disbursed by the department |
|
|
[comptroller] without appropriation only as provided by this |
|
|
section. |
|
|
(d-1) Not later than the 90th day after the last day of an |
|
|
event 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 department [comptroller] |
|
|
for deposit in the Events reimbursement [trust] fund other local |
|
|
funds in an amount equal to the total amount of local tax revenue |
|
|
determined by the department under Subsections (b)(2) through (5) |
|
|
of this section. The amount deposited by the department |
|
|
[comptroller] into the Events reimbursement [trust] fund under this |
|
|
subsection is subject to Subsection (f) of this section. |
|
|
(e) In addition to the tax revenue deposited in the Events |
|
|
reimbursement [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 |
|
|
department [comptroller] surcharges and user fees attributable to |
|
|
the event for deposit into the Events reimbursement [trust] fund. |
|
|
(f) The comptroller, at the direction of the department, |
|
|
shall transfer [deposit] into the Events reimbursement [trust] fund |
|
|
a portion of the state tax revenue not to exceed the amount |
|
|
determined by the department under Subsection (b)(1) of this |
|
|
section in an amount equal to 6.25 times the amount of the local tax |
|
|
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 an 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 transferred or deposited into the Events reimbursement [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 money in the Events reimbursement [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 obligations may include the |
|
|
payment of costs relating to the preparations necessary 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 |
|
|
department [comptroller] to enable the department [comptroller] to |
|
|
fulfill the department's [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 department [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 department's [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 department [comptroller] considers necessary. |
|
|
(j) The department [comptroller] shall provide an estimate |
|
|
not later than three months before the date of an event of the total |
|
|
amount of tax revenue that would be transferred into or deposited in |
|
|
the Events reimbursement [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. |
|
|
The department [comptroller] shall provide the estimate on request |
|
|
to a local organizing committee, endorsing municipality, or |
|
|
endorsing county. A local organizing committee, endorsing |
|
|
municipality, or endorsing county may submit the department's |
|
|
[comptroller's] estimate to a site selection organization. |
|
|
(k) The department [comptroller] may make a disbursement |
|
|
from the Events reimbursement [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, unless the improvement or |
|
|
fixture is for a publicly owned facility. In considering whether to |
|
|
make a disbursement from the [trust] fund, the department |
|
|
[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 department [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; or |
|
|
(3) conducting usual and customary maintenance of a |
|
|
facility. |
|
|
(k-2) Subsection (k-1) of this section does not prohibit: |
|
|
(1) a disbursement from the [trust] fund for the |
|
|
construction of temporary structures within an arena, stadium, or |
|
|
convention, if those temporary structures are necessary for the |
|
|
conduct of the event; or |
|
|
(2) temporary maintenance of a facility that is |
|
|
necessary for the preparation for or conduct of the event. |
|
|
(l) If a disbursement is made from the Events reimbursement |
|
|
[trust] fund under Subsection (k) of this section, 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 an event support contract related to the location |
|
|
of any particular event in this state, the department [comptroller] |
|
|
shall remit to each endorsing entity, in proportion to the amount |
|
|
contributed by the entity, any money remaining in the Events |
|
|
reimbursement [trust] fund. |
|
|
(o) The department [comptroller] may not undertake any of |
|
|
the responsibilities or duties set forth in this section unless a |
|
|
request is submitted by the municipality or the county in which the |
|
|
event will be located. The request must be accompanied by |
|
|
documentation from a site selection organization selecting the site |
|
|
for the event. |
|
|
(p) The department [comptroller] may adopt rules necessary |
|
|
to implement this section. |
|
|
(q) In determining the amount of state revenue available |
|
|
under Subsection (b)(1) of this section, the department |
|
|
[comptroller] may consider whether: |
|
|
(1) the event has been held in this state on previous |
|
|
occasions; and |
|
|
(2) changes to the character of the event could affect |
|
|
the incremental increase in receipts collected and remitted to the |
|
|
state by an endorsing county or endorsing municipality under that |
|
|
subsection. |
|
|
(r) The department [comptroller] may adopt a model event |
|
|
support contract and make the contract available on the |
|
|
department's [comptroller's] Internet website. The adoption by |
|
|
the department [comptroller] of a model event support contract |
|
|
under this subsection does not require use of the model event |
|
|
support contract for purposes of this section. |
|
|
(t) After the conclusion of an event, the department |
|
|
[comptroller] shall compare information on the actual attendance |
|
|
figures provided to the department [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 |
|
|
department [comptroller] may reduce the amount of a disbursement |
|
|
for an endorsing entity under the Events reimbursement [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 department [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 2.13. Sections 6(a) and (b), 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) Except as provided by Subsections (b) and (d) of this |
|
|
section, an endorsing municipality or endorsing county must hold an |
|
|
election in the municipality or county to determine whether the |
|
|
municipality or county may contribute a portion of its sales and use |
|
|
taxes to the Olympic Games reimbursement [trust] fund under Section |
|
|
5 of this Act. The election must be held on a uniform election date |
|
|
before the date a site selection organization requires the |
|
|
endorsing municipality or endorsing county and the state to enter |
|
|
into a joinder undertaking relating to the applicable games. |
|
|
(b) If an endorsing municipality or endorsing county is |
|
|
required to hold an election under this section and the |
|
|
contribution of a portion of the municipality's or county's sales |
|
|
and use taxes to the Olympic Games reimbursement [trust] fund under |
|
|
Section 5 of this Act is not approved by a majority of the voters |
|
|
voting in the election: |
|
|
(1) the comptroller may not establish the Olympic |
|
|
Games reimbursement [trust] fund under Section 5 of this Act, may |
|
|
not retain the municipality's or county's tax revenue under Section |
|
|
5(d) of this Act from amounts otherwise required to be sent to that |
|
|
municipality or county, and may not transfer [deposit] any state |
|
|
tax revenue into the trust fund; |
|
|
(2) the department [comptroller] is not required to |
|
|
determine the incremental increase in state, county, or municipal |
|
|
tax revenue under Section 5(b) of this Act; and |
|
|
(3) the department may not enter into a games support |
|
|
contract relating to the games for which the municipality or county |
|
|
has authorized a bid on its behalf. |
|
|
SECTION 2.14. Section 7(f), 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: |
|
|
(f) The department may agree to execute a joinder |
|
|
undertaking, a joinder agreement, or other games support contract |
|
|
only if: |
|
|
(1) the department determines that: |
|
|
(A) the state's assurances and obligations under |
|
|
the undertaking, agreement, or contract are reasonable; and |
|
|
(B) any financial commitments of the state will |
|
|
be satisfied exclusively by recourse to the Pan American Games |
|
|
reimbursement [trust] fund or the Olympic Games reimbursement |
|
|
[trust] fund, as applicable; and |
|
|
(2) the endorsing municipality or endorsing county has |
|
|
executed an agreement with a site selection organization that |
|
|
contains substantially similar terms. |
|
|
SECTION 2.15. The following laws are repealed: |
|
|
(1) Section 5C(s), Chapter 1507 (S.B. 456), Acts of |
|
|
the 76th Legislature, Regular Session, 1999 (Article 5190.14, |
|
|
Vernon's Texas Civil Statutes); and |
|
|
(2) Chapter 398, Local Government Code. |
|
|
SECTION 2.16. As soon as is practicable after the effective |
|
|
date of this Act, but not later than September 10, 2015, the office |
|
|
of the governor and the comptroller of public accounts shall |
|
|
develop and adopt a memorandum of understanding that: |
|
|
(1) identifies in detail the applicable powers and |
|
|
duties of the comptroller that are being transferred to the office |
|
|
of the governor as a result of this Act; and |
|
|
(2) establishes a plan for the identification and |
|
|
transfer of records, property, and unspent appropriations of the |
|
|
comptroller that are used for purposes of managing the funds |
|
|
transferred to the office of the governor. |
|
|
SECTION 2.17. (a) Not later than September 10, 2015: |
|
|
(1) the administration of the Pan American Games |
|
|
reimbursement fund, Olympic Games reimbursement fund, Major Events |
|
|
reimbursement fund, Motor Sports Racing reimbursement fund, and |
|
|
Events reimbursement fund for sporting and non-sporting events |
|
|
shall be transferred from the comptroller of public accounts to the |
|
|
Texas Economic Development and Tourism Office; |
|
|
(2) all rules, forms, policies, procedures, or |
|
|
decisions of the comptroller that are related to the Pan American |
|
|
Games reimbursement fund, Olympic Games reimbursement fund, Major |
|
|
Events reimbursement fund, Motor Sports Racing reimbursement fund, |
|
|
and Events reimbursement fund for sporting and non-sporting events |
|
|
are continued in effect as rules, forms, policies, procedures, or |
|
|
decisions of the economic development and tourism division, office |
|
|
of the governor, until superseded by a rule or other appropriate act |
|
|
of the Texas Economic Development and Tourism Office; and |
|
|
(3) a reference in law or administrative rule to the |
|
|
comptroller relating to the decisions for and administration of the |
|
|
Pan American Games reimbursement fund, Olympic Games reimbursement |
|
|
fund, Major Events reimbursement fund, Motor Sports Racing |
|
|
reimbursement fund, and Events reimbursement fund for sporting and |
|
|
non-sporting events, other than a duty typically performed by the |
|
|
comptroller related to a state fund, means the Texas Economic |
|
|
Development and Tourism Office. |
|
|
(b) Before the transfer of the administration of the Pan |
|
|
American Games reimbursement fund, Olympic Games reimbursement |
|
|
fund, Major Events reimbursement fund, Motor Sports Racing |
|
|
reimbursement fund, and Events reimbursement fund for sporting and |
|
|
non-sporting events, the comptroller and the Texas Economic |
|
|
Development and Tourism Office shall coordinate the transfer of |
|
|
powers and duties, including records and other items, in accordance |
|
|
with the memorandum of understanding adopted under Section 16 of |
|
|
this Act, to ensure a smooth transition. |
|
|
SECTION 2.18. Notwithstanding the repeal by this Act of |
|
|
Chapter 398, Local Government Code, a special event plan approved |
|
|
under former Chapter 398 of that code before September 1, 2015, is |
|
|
governed by the law as it existed immediately before the effective |
|
|
date of this Act, and that law is continued in effect for that |
|
|
purpose. |
|
|
ARTICLE 3. EFFECTIVE DATE |
|
|
SECTION 3.01. This Act takes effect September 1, 2015. |
|
|
|
|
|
* * * * * |