84R5518 DDT-D
 
  By: Springer H.B. No. 1950
 
 
 
A BILL TO BE ENTITLED
 
AN ACT
  relating to a municipality's or county's eligibility to receive
  money disbursed from a local events trust fund.
         BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
         SECTION 1.  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.  LOCAL EVENTS TRUST FUND FOR CERTAIN MUNICIPALITIES
  AND COUNTIES.
         SECTION 2.  Sections 5C(b-1), (d), (d-1), (e), (f), (g),
  (h), (j), (k), (l), (m), 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-1)  An endorsing county or endorsing municipality may not
  receive money from a Local Events trust fund to fund an event under
  this section if the county or municipality has received money from a
  Local Events trust fund under this section to fund another event
  held in the same calendar year.  This subsection does not limit the 
  [The] number of requests for funding under this section that may be
  submitted by an endorsing county or endorsing municipality during
  that year if previous event requests submitted during that year are
  determined to be ineligible for funding under this section [any
  12-month period for an event for which the 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].
         (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 and designated as the Local 
  Events trust fund the amount of the municipality's or county's hotel
  occupancy tax revenue determined 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 shall retain the amount of
  sales and use tax revenue and mixed beverage tax revenue determined
  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 comptroller
  and shall discontinue retaining the local tax revenues under this
  subsection when the amount of the applicable tax revenue determined
  under Subsection (b)(2) or (3) of this section has been retained.  
  The Local Events 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
  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 comptroller for deposit in
  the Local Events trust fund other local funds in an amount equal to
  the total amount of local tax revenue determined under Subsections
  (b)(2) through (5) of this section.  The amount deposited by the
  comptroller into the Local Events trust fund under this subsection
  is subject to Subsection (f) of this section.
         (e)  In addition to the tax revenue deposited in the Local 
  Events trust fund under Subsection (d) of this section, an
  endorsing municipality or endorsing county may guarantee its
  obligations under an event support contract and this section by
  pledging surcharges from user fees, including parking or ticket
  fees, charged in connection with the event.  An endorsing
  municipality or endorsing county may collect and remit to the
  comptroller surcharges and user fees attributable to the event for
  deposit into the Local Events trust fund.
         (f)  The comptroller shall deposit into the Local Events
  trust fund a portion of the state tax revenue not to exceed the
  amount determined under Subsection (b)(1) of this section in an
  amount equal to 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 deposited into the Local Events 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 Local Events trust fund may be used to
  pay the principal of and interest on notes issued by an endorsing
  municipality or endorsing county under Subsection (g) of this
  section and to fulfill obligations of this state or an endorsing
  municipality or endorsing county to a site selection organization
  under an event support contract.  Subject to Subsection (k) of this
  section, the 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.
         (j)  The 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 deposited in the Local Events 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 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 comptroller's estimate to a site
  selection organization.
         (k)  The comptroller may make a disbursement from the Local 
  Events trust fund on the prior approval of each contributing
  endorsing municipality or endorsing county for a purpose for which
  a local organizing committee, an endorsing municipality, or an
  endorsing county or this state is obligated under an event support
  contract, including an obligation to pay costs incurred in the
  conduct of the event and costs incurred in making preparations
  necessary for the event.  If an obligation is incurred under an
  event support contract to make a structural improvement to the site
  or to add a fixture to the site for purposes of an event and that
  improvement or fixture is expected to derive most of its value in
  subsequent uses of the site for future events, a disbursement from
  the trust fund made for purposes of that obligation is limited to
  five percent of the cost of the improvement or fixture and the
  remainder of the obligation is not eligible for a disbursement from
  the trust fund, unless the improvement or fixture is for a publicly
  owned facility.  In considering whether to make a disbursement from
  the trust fund, the comptroller may not consider a contingency
  clause in an event support contract as relieving a local organizing
  committee's, endorsing municipality's, or endorsing county's
  obligation to pay a cost under the contract.
         (l)  If a disbursement is made from the Local Events 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 comptroller shall remit
  to each endorsing entity, in proportion to the amount contributed
  by the entity, any money remaining in the Local Events trust fund.
         (t)  After the conclusion of an event, the comptroller shall
  compare information on the actual attendance figures provided to
  the comptroller under Subsection (i) of this section with the
  estimated attendance numbers used to determine the incremental
  increase in tax receipts under Subsection (b) of this section.  If
  the actual attendance figures are significantly lower than the
  estimated attendance numbers, the comptroller may reduce the amount
  of a disbursement for an endorsing entity under the Local Events
  trust fund in proportion to the discrepancy between the actual and
  estimated attendance and in proportion to the amount contributed to
  the fund by the entity.  The comptroller by rule shall define
  "significantly lower" for purposes of this subsection and provide
  the manner in which a disbursement may be proportionately reduced.  
  This subsection does not affect the remittance of any money
  remaining in the fund in accordance with Subsection (m) of this
  section.
         SECTION 3.  The changes in law made by this Act apply only to
  a request for funding from a local events trust fund submitted on or
  after the effective date of this Act.  A request submitted before
  that date is governed by the law in effect immediately before the
  effective date of this Act, and that law is continued in effect for
  that purpose.
         SECTION 4.  This Act takes effect September 1, 2015.