Bill Text: TX SB633 | 2015-2016 | 84th Legislature | Enrolled


Bill Title: Relating to certain event trust funds and the abolishment of the special event trust fund.

Spectrum: Slight Partisan Bill (Republican 5-2)

Status: (Passed) 2015-06-18 - Effective on 9/1/15 [SB633 Detail]

Download: Texas-2015-SB633-Enrolled.html
 
 
  S.B. No. 633
 
 
 
 
AN ACT
  relating to certain event trust funds and the abolishment of the
  special event trust fund.
         BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
         SECTION 1.  Chapter 1507 (S.B. 456), Acts of the 76th
  Legislature, Regular Session, 1999 (Article 5190.14, Vernon's
  Texas Civil Statutes), is amended by adding Section 3A to read as
  follows:
         Sec. 3A.  RULES. The office of the governor shall adopt
  rules consistent with this Act to ensure efficient administration
  of the trust funds established under this Act, including rules
  related to application and receipt requirements.
         SECTION 2.  Sections 4(b), (c), (d), (f), (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 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 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 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 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.
         (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 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 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 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 trust fund and interest earned
  on the fund.
         SECTION 3.  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 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 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 4.  Sections 5(b), (c), (d), (f), (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 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 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 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 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.
         (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 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 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 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 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 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 trust fund and interest earned on the
  fund.
         SECTION 5.  Section 5A(a), 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 Subdivisions
  (1), (2), and (4) and Subdivision (5), as amended by S.B. 293, Acts
  of the 84th Legislature, Regular Session, 2015, 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.
               (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 game of the National Collegiate Athletic Association Bowl
  Championship Series or its successor or a National Collegiate
  Athletic Association Division I Football Bowl Subdivision
  postseason playoff or championship game, the National Collegiate
  Athletic Association men's or women's lacrosse championships, a
  World Cup Soccer game, the World Cup soccer tournament, the Major
  League Soccer All-Star Game, the Major League Soccer Cup, the
  Professional Rodeo Cowboys Association National Finals Rodeo, an
  Elite Rodeo Association World Championship, the United States Open
  Championship, 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, the Amateur
  Athletic Union Junior Olympic Games, a mixed martial arts
  championship, the Breeders' Cup World Championships, a Formula One
  automobile race, the Moto Grand Prix of the United States, the
  Academy of Country Music Awards, the National Cutting Horse
  Association Triple Crown, a national political convention of the
  Republican National Committee or the Democratic National
  Committee, a presidential general election debate, 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.
               (5)  "Site selection organization" means:
                     (A)  the National Football League, the National
  Collegiate Athletic Association, the National Basketball
  Association, ESPN or an affiliate, the National Hockey League,
  Major League Baseball, the Federation Internationale de Football
  Association (FIFA), the International World Games Association, the
  National Association for Stock Car Auto Racing (NASCAR), Dorna
  Sports, the Amateur Athletic Union, the Professional Rodeo Cowboys
  Association, the Elite Rodeo Association, Major League Soccer, the
  United States Golf Association, or the United States Olympic
  Committee;
                     (B)  the national governing body of a sport that
  is recognized by the United States Olympic Committee, the National
  Thoroughbred Racing Association, Formula One Management Limited,
  or the Federation Internationale de l'Automobile;
                     (C)  the Academy of Country Music;
                     (D)  the National Cutting Horse Association;
                     (E)  the Republican National Committee or the
  Democratic National Committee; [or]
                     (F)  the Ultimate Fighting Championship; or
                     (G)  the Commission on Presidential Debates.
         SECTION 6.  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 adding Subsection (a-3) to
  read as follows:
         (a-3)  For purposes of Subsection (a-1) of this section, each
  presidential general election debate in a series of presidential
  debates before a general election is considered a separate, single
  event.
         SECTION 7.  Sections 5A(a-1), (a-2), (b), (b-1), (c), (d),
  (d-1), (e), (f), (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
  municipalityinthemarketareafromthesalesandusetax
  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 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 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 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 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 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 trust fund.
         (f)  The comptroller, at the direction of the department,
  shall transfer [deposit] into the Major Events 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.
         (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 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 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 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 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 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 8.  Sections 5B(b), (c), (d), (f), (g), (i), (j),
  (k), (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 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 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.
         (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 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.
         (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 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 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.
         (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 9.  Sections 5C(b), (b-1), (c), (c-1), (d), (d-1),
  (e), (f), (g), (i), (j), (k), (k-1), (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 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 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 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 trust fund under this subsection is subject to Subsection
  (f) of this section.
         (e)  In addition to the tax revenue deposited in the 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 department
  [comptroller] surcharges and user fees attributable to the event
  for deposit into the Events trust fund.
         (f)  The comptroller, at the direction of the department,
  shall transfer [deposit] into the Events 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 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 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 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 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.
         (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 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 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 10.  Section 6(b), 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:
         (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 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 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 11.  Chapter 1507 (S.B. 456), Acts of the 76th
  Legislature, Regular Session, 1999 (Article 5190.14, Vernon's
  Texas Civil Statutes), is amended by adding Section 12 to read as
  follows:
         Sec. 12.  LOCAL GOVERNMENT CORPORATION AS ENDORSING
  MUNICIPALITY OR COUNTY. (a)  This section applies only to a local
  government corporation that:
               (1)  is authorized to collect a municipal hotel
  occupancy tax; and
               (2)  is located in a county with a population of 3.3
  million or more.
         (b)  A local government corporation may act as an endorsing
  municipality or endorsing county under this Act.
         (c)  A local government corporation acting as an endorsing
  municipality or endorsing county under this Act shall remit for
  deposit into the trust fund established for the games or event the
  amounts determined by the comptroller under this Act. The
  comptroller shall determine the incremental increase in receipts
  attributable to the games or event and related activities under
  that chapter based on the amount of applicable taxes imposed by each
  municipality or county that comprises the local government
  corporation and not on the amount of taxes imposed by the local
  government corporation.
         (d)  A local government corporation acting as an endorsing
  municipality or endorsing county under this Act may guarantee the
  local government corporation's obligations under a games or event
  support contract by pledging surcharges from user fees, including
  parking or ticket fees, charged in connection with the games or
  event and related activities.
         (e)  Subject to Subsection (c), a local government
  corporation acting as an endorsing municipality or endorsing county
  under this Act, as authorized by this section, has all the powers of
  an endorsing municipality or endorsing county under this Act, and
  any action an endorsing municipality or endorsing county is
  required to take by ordinance or order under this Act may be taken
  by order or resolution of the local government corporation.
         SECTION 12.  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 13.  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 14.  (a)  Not later than September 10, 2015:
               (1)  the administration of the Pan American Games trust
  fund, Olympic Games trust fund, Major Events trust fund, Motor
  Sports Racing trust fund, and Events trust 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 trust funds
  described by Subdivision (1) of this subsection 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
  trust funds described by Subdivision (1) of this subsection, 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 trust fund, Olympic Games trust fund, Major Events
  trust fund, Motor Sports Racing trust fund, and Events trust fund
  for sporting and non-sporting events, the comptroller of public
  accounts 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 13 of this Act, to ensure a
  smooth transition.
         SECTION 15.  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.
         SECTION 16.  This Act takes effect September 1, 2015.
 
 
 
 
 
  ______________________________ ______________________________
     President of the Senate Speaker of the House     
 
         I hereby certify that S.B. No. 633 passed the Senate on
  April 9, 2015, by the following vote: Yeas 29, Nays 2; and that
  the Senate concurred in House amendments on May 29, 2015, by the
  following vote: Yeas 27, Nays 4.
 
 
  ______________________________
  Secretary of the Senate    
 
         I hereby certify that S.B. No. 633 passed the House, with
  amendments, on May 26, 2015, by the following vote: Yeas 116,
  Nays 31, one present not voting.
 
 
  ______________________________
  Chief Clerk of the House   
 
 
 
  Approved:
 
  ______________________________ 
              Date
 
 
  ______________________________ 
            Governor
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