Bill Text: TX SB1678 | 2013-2014 | 83rd Legislature | Enrolled
Bill Title: Relating to the events and expenses eligible for, reporting requirements concerning disbursements from, and a study by the comptroller of the Major Events trust fund and the Events trust fund.
Spectrum: Bipartisan Bill
Status: (Passed) 2013-06-14 - Effective on 9/1/13 [SB1678 Detail]
Download: Texas-2013-SB1678-Enrolled.html
S.B. No. 1678 |
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relating to the events and expenses eligible for, reporting | ||
requirements concerning disbursements from, and a study by the | ||
comptroller of the Major Events trust fund and the Events trust | ||
fund. | ||
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: | ||
SECTION 1. Subdivision (4), Subsection (a), 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: | ||
(4) "Event" means a Super Bowl, a National Collegiate | ||
Athletic Association Final Four tournament game, the National | ||
Basketball Association All-Star Game, the X Games, the National | ||
Hockey League All-Star Game, the Major League Baseball All-Star | ||
Game, a National Collegiate Athletic Association Bowl Championship | ||
Series game, a World Cup Soccer game, the World Games, a national | ||
collegiate championship of an amateur sport sanctioned by the | ||
national governing body of the sport that is recognized by the | ||
United States Olympic Committee, an Olympic activity, including a | ||
Junior or Senior activity, training program, or feeder program | ||
sanctioned by the United States Olympic Committee's Community | ||
Olympic Development Program, a mixed martial arts championship, the | ||
Breeders' Cup World Championships, a Formula One automobile race, | ||
the Academy of Country Music Awards, the National Cutting Horse | ||
Association Triple Crown, [ |
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the Republican National Committee or the Democratic National | ||
Committee, or 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. The term includes any activities related to or | ||
associated with an event. | ||
SECTION 2. Section 5A, Chapter 1507 (S.B. 456), Acts of the | ||
76th Legislature, Regular Session, 1999 (Article 5190.14, Vernon's | ||
Texas Civil Statutes), is amended by amending Subsections (a-1), | ||
(b-1), (h), (i), (k), (p), and (w) and adding Subsections (a-2), | ||
(x), and (y) to read as follows: | ||
(a-1) An event not listed [ |
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this section is ineligible [ |
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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; [ |
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(3) the event is held not more than one time in any | ||
year; and | ||
(4) the amount of the incremental increase in tax | ||
receipts determined by the comptroller under Subsection (b) of this | ||
section equals or exceeds $1 million, provided that for an event | ||
scheduled to be held each year for a period of years under an event | ||
contract or event support contract, the incremental increase in tax | ||
receipts shall be calculated as if the event did not occur in the | ||
prior year. | ||
(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 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-1) A request for a determination of the amount of | ||
incremental increase in tax receipts specified by Subsection (b) of | ||
this section must be submitted to the comptroller not earlier than | ||
one year and not later than 45 days [ |
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the event begins. The comptroller shall base the determination | ||
specified by Subsection (b) of this section on information | ||
submitted by the local organizing committee, endorsing | ||
municipality, or endorsing county, and must make the determination | ||
not later than the 30th day after the date the comptroller receives | ||
the request and related information. | ||
(h) The funds in the Major Events trust fund may be used to | ||
pay the principal of and interest on notes issued by an endorsing | ||
municipality or endorsing county under Subsection (g) of this | ||
section and to fulfill obligations of the state or an endorsing | ||
municipality or endorsing county to a site selection organization | ||
under a game support contract or event support contract. Subject to | ||
Subsection (k) of this section, the[ |
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include the payment of costs relating to the preparations necessary | ||
or desirable for the conduct of the event and the payment of costs | ||
of conducting the event, including improvements or renovations to | ||
existing facilities or other facilities and costs of acquisition or | ||
construction of new facilities or other facilities. | ||
(i) A local organizing committee, endorsing municipality, | ||
or endorsing county shall provide information required by the | ||
comptroller to enable the comptroller to fulfill the comptroller's | ||
duties under this section, including annual audited statements of | ||
any financial records required by a site selection organization and | ||
data obtained by the local organizing committee, an endorsing | ||
municipality, or an endorsing county relating to attendance at the | ||
event, including an estimate of the number of people expected to | ||
attend the event who are not residents of this state, and to the | ||
economic impact of the event. A local organizing committee, | ||
endorsing municipality, or endorsing county must provide an annual | ||
audited financial statement required by the comptroller, if any, | ||
not later than the end of the fourth month after the date the period | ||
covered by the financial statement ends. After the conclusion of an | ||
event and on the comptroller's request, a local organizing | ||
committee, endorsing municipality, or endorsing county must | ||
provide information relating to the event, such as attendance | ||
figures, including an estimate of the number of attendees at the | ||
event who are not residents of this state, financial information, | ||
or other public information held by the local organizing committee, | ||
endorsing municipality, or endorsing county that the comptroller | ||
considers necessary. | ||
(k) The comptroller may make a disbursement from the Major | ||
Events trust fund on the prior approval of each contributing | ||
endorsing municipality or endorsing county for a purpose for which | ||
a local organizing committee, an endorsing municipality, or an | ||
endorsing county or the state is obligated under a game support | ||
contract or event support contract. If an obligation is incurred | ||
under a games support contract or event support contract to make a | ||
structural improvement to the site or to add a fixture to the site | ||
for purposes of an event and that improvement or fixture is expected | ||
to derive most of its value in subsequent uses of the site for | ||
future events, a disbursement from the trust fund made for purposes | ||
of that obligation is limited to five percent of the cost of the | ||
improvement or fixture and the remainder of the obligation is not | ||
eligible for a disbursement from the trust fund, unless the | ||
improvement or fixture is for a publicly owned facility. In | ||
considering whether to make a disbursement from the trust fund, the | ||
comptroller may not consider a contingency clause in an event | ||
support contract as relieving a local organizing committee's, | ||
endorsing municipality's, or endorsing county's obligation to pay a | ||
cost under the contract. A disbursement may not be made from the | ||
trust fund that the comptroller determines would be used for the | ||
purpose of soliciting the relocation of a professional sports | ||
franchise located in this state. | ||
(p) The comptroller may not undertake any of the | ||
responsibilities or duties set forth in this section unless: | ||
(1) a request is submitted by the municipality or the | ||
county in which the event will be located; | ||
(2) the event meets all the requirements for funding | ||
under this section, including Subsection (a-1) of this section; and | ||
(3) the request is[ |
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by documentation from a site selection organization selecting the | ||
site for the event. | ||
(w) Not later than 10 [ |
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event eligible for disbursements from the Major Events trust fund | ||
for costs associated with the event, the comptroller using existing | ||
resources shall[ |
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[ |
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on the measurable economic impact directly attributable to the | ||
preparation for and presentation of the event and related | ||
activities. The comptroller shall[ |
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[ |
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(1) the results of the study conducted under this | ||
subsection, including any source documentation or other | ||
information relied on by the comptroller for the study; | ||
(2) the amount of incremental increase in tax receipts | ||
for the event determined under Subsection (b) of this section; | ||
(3) the site selection organization documentation | ||
described in Subsection (p)(3) of this section; | ||
(4) any source documentation or information described | ||
under Subsection (i) of this section that was relied on by the | ||
comptroller in making the determination of the amount of | ||
incremental increase in tax receipts under Subsection (b) of this | ||
section; and | ||
(5) documentation verifying that: | ||
(A) a request submitted by a local organizing | ||
committee, endorsing municipality, or endorsing county under | ||
Subsection (p) of this section is complete and certified as such by | ||
the comptroller; | ||
(B) the determination on the amount of | ||
incremental increases in tax receipts under Subsection (b) of this | ||
section considered the information submitted by a local organizing | ||
committee, endorsing municipality, or endorsing county as required | ||
under Subsection (b-1) of this section; and | ||
(C) each deadline established under this section | ||
was timely met [ |
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(x) Subsection (w) of this section does not require | ||
disclosure of information that is confidential under Chapter 552, | ||
Government Code, or confidential or privileged under other law. | ||
(y) After the conclusion of an event, the comptroller shall | ||
compare information on the actual attendance figures provided to | ||
the comptroller under Subsection (i) of this section with the | ||
estimated attendance numbers used to determine the incremental | ||
increase in tax receipts under Subsection (b) of this section. If | ||
the actual attendance figures are significantly lower than the | ||
estimated attendance numbers, the comptroller may reduce the amount | ||
of a disbursement for an endorsing entity under the Major Events | ||
trust fund in proportion to the discrepancy between the actual and | ||
estimated attendance and in proportion to the amount contributed to | ||
the fund by the entity. The comptroller by rule shall define | ||
"significantly lower" for purposes of this subsection and provide | ||
the manner in which a disbursement may be proportionately reduced. | ||
This subsection does not affect the remittance of any money | ||
remaining in the fund in accordance with Subsection (m) of this | ||
section. | ||
SECTION 3. Section 5C, Chapter 1507 (S.B. 456), Acts of the | ||
76th Legislature, Regular Session, 1999 (Article 5190.14, Vernon's | ||
Texas Civil Statutes), is amended by amending Subsections (a-1), | ||
(h), (i), and (k) and adding Subsections (b-1), (k-1), (k-2), (r), | ||
(s), and (t) to read as follows: | ||
(a-1) An event is eligible for funding under this section | ||
only if: | ||
(1) a site selection organization selects a site for | ||
the event located in this state 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 events 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; and | ||
(3) the event is held not more than one time in this | ||
state or an adjoining state in any year. | ||
(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 | ||
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. | ||
(h) The money in the Events trust fund may be used to pay the | ||
principal of and interest on notes issued by an endorsing | ||
municipality or endorsing county under Subsection (g) of this | ||
section and to fulfill obligations of this state or an endorsing | ||
municipality or endorsing county to a site selection organization | ||
under an event support contract. Subject to Subsection (k) of this | ||
section, the[ |
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relating to the preparations necessary [ |
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conduct of the event and the payment of costs of conducting the | ||
event, including improvements or renovations to existing | ||
facilities or other facilities and costs of acquisition or | ||
construction of new facilities or other facilities. | ||
(i) A local organizing committee, endorsing municipality, | ||
or endorsing county shall provide information required by the | ||
comptroller to enable the comptroller to fulfill the comptroller's | ||
duties under this section, including annual audited statements of | ||
any financial records required by a site selection organization and | ||
data obtained by the local organizing committee, an endorsing | ||
municipality, or an endorsing county relating to attendance at the | ||
event, including an estimate of the number of people expected to | ||
attend the event who are not residents of this state, and to the | ||
economic impact of the event. A local organizing committee, | ||
endorsing municipality, or endorsing county must provide an annual | ||
audited financial statement required by the comptroller, if any, | ||
not later than the end of the fourth month after the date the period | ||
covered by the financial statement ends. After the conclusion of an | ||
event and on the comptroller's request, a local organizing | ||
committee, endorsing municipality, or endorsing county must | ||
provide information relating to the event, such as attendance | ||
figures, including an estimate of the number of people who are not | ||
residents of this state who attended the event, financial | ||
information, or other public information held by the local | ||
organizing committee, endorsing municipality, or endorsing county | ||
that the comptroller considers necessary. | ||
(k) The comptroller may make a disbursement from the Events | ||
trust fund on the prior approval of each contributing endorsing | ||
municipality or endorsing county for a purpose for which a local | ||
organizing committee, an endorsing municipality, or an endorsing | ||
county or this state is obligated under an event support contract, | ||
including an obligation to pay costs incurred in the conduct of the | ||
event and costs incurred in making preparations necessary for the | ||
event. If an obligation is incurred under an event support contract | ||
to make a structural improvement to the site or to add a fixture to | ||
the site for purposes of an event and that improvement or fixture is | ||
expected to derive most of its value in subsequent uses of the site | ||
for future events, a disbursement from the trust fund made for | ||
purposes of that obligation is limited to five percent of the cost | ||
of the improvement or fixture and the remainder of the obligation is | ||
not eligible for a disbursement from the trust fund, 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. | ||
(k-1) A disbursement may not be made from the trust fund | ||
that the comptroller determines would be used for the purpose of: | ||
(1) soliciting the relocation of a professional sports | ||
franchise located in this state; | ||
(2) constructing an arena, stadium, or convention | ||
center; 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. | ||
(r) The comptroller may adopt a model event support contract | ||
and make the contract available on the comptroller's Internet | ||
website. The adoption by the 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. | ||
(s) The comptroller may adopt rules necessary to implement | ||
this section. | ||
(t) After the conclusion of an event, the comptroller shall | ||
compare information on the actual attendance figures provided to | ||
the comptroller under Subsection (i) of this section with the | ||
estimated attendance numbers used to determine the incremental | ||
increase in tax receipts under Subsection (b) of this section. If | ||
the actual attendance figures are significantly lower than the | ||
estimated attendance numbers, the comptroller may reduce the amount | ||
of a disbursement for an endorsing entity under the Events trust | ||
fund in proportion to the discrepancy between the actual and | ||
estimated attendance and in proportion to the amount contributed to | ||
the fund by the entity. The comptroller by rule shall define | ||
"significantly lower" for purposes of this subsection and provide | ||
the manner in which a disbursement may be proportionately reduced. | ||
This subsection does not affect the remittance of any money | ||
remaining in the fund in accordance with Subsection (m) of this | ||
section. | ||
SECTION 4. Subsections (r), (s), (t), and (u), Section 5A, | ||
Chapter 1507 (Senate Bill No. 456), Acts of the 76th Legislature, | ||
Regular Session, 1999 (Article 5190.14, Vernon's Texas Civil | ||
Statutes), are repealed. | ||
SECTION 5. (a) The comptroller of public accounts shall | ||
conduct a study to determine: | ||
(1) the economic impact of the events that qualify for | ||
funding through an events trust fund; and | ||
(2) whether the events would likely be held in this | ||
state in the absence of the incentives provided through the fund. | ||
(b) The comptroller of public accounts shall prepare a | ||
report of the findings from the study conducted under Subsection | ||
(a) of this section. Not later than January 1, 2015, the | ||
comptroller shall electronically file a copy of the report with the | ||
lieutenant governor, the speaker of the house of representatives, | ||
and the presiding officer of each standing committee of the senate | ||
and house of representatives having primary jurisdiction over | ||
fiscal matters or matters related to tourism or recreation. | ||
(c) This section expires September 1, 2015. | ||
SECTION 6. The changes in law made by this Act apply only to | ||
a request submitted to the comptroller of public accounts by an | ||
endorsing municipality or endorsing county under Section 5A or 5C, | ||
Chapter 1507 (Senate Bill No. 456), Acts of the 76th Legislature, | ||
Regular Session, 1999 (Article 5190.14, Vernon's Texas Civil | ||
Statutes), on or after the effective date of this Act. A request | ||
submitted under Section 5A or 5C before that date is governed by the | ||
law in effect on the date the request is submitted, and that law is | ||
continued in effect for that purpose. | ||
SECTION 7. This Act takes effect immediately if it receives | ||
a vote of two-thirds of all the members elected to each house, as | ||
provided by Section 39, Article III, Texas Constitution. If this | ||
Act does not receive the vote necessary for immediate effect, this | ||
Act takes effect September 1, 2013. | ||
______________________________ | ______________________________ | |
President of the Senate | Speaker of the House | |
I hereby certify that S.B. No. 1678 passed the Senate on | ||
April 25, 2013, by the following vote: Yeas 28, Nays 0; and that | ||
the Senate concurred in House amendments on May 25, 2013, by the | ||
following vote: Yeas 20, Nays 8. | ||
______________________________ | ||
Secretary of the Senate | ||
I hereby certify that S.B. No. 1678 passed the House, with | ||
amendments, on May 20, 2013, by the following vote: Yeas 145, | ||
Nays 2, one present not voting. | ||
______________________________ | ||
Chief Clerk of the House | ||
Approved: | ||
______________________________ | ||
Date | ||
______________________________ | ||
Governor |