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

NOTE: There are more recent revisions of this legislation. Read Latest Draft
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-Comm_Sub.html
 
 
  By: Fraser  S.B. No. 633
         (In the Senate - Filed February 18, 2015; February 23, 2015,
  read first time and referred to Committee on Natural Resources and
  Economic Development; March 30, 2015, reported adversely, with
  favorable Committee Substitute by the following vote:  Yeas 10,
  Nays 0; March 30, 2015, sent to printer.)
Click here to see the committee vote
 
  COMMITTEE SUBSTITUTE FOR S.B. No. 633 By:  Fraser
 
 
A BILL TO BE ENTITLED
 
AN ACT
 
  relating to a Pan American Games reimbursement fund, an Olympic
  Games reimbursement fund, a Major Events reimbursement fund, a
  Motor Sports Racing reimbursement fund, an Events reimbursement
  fund for sporting and non-sporting events, and a special event
  trust fund.
         BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
         SECTION 1.  The heading to Section 4, Chapter 1507 (S.B.
  456), Acts of the 76th Legislature, Regular Session, 1999 (Article
  5190.14, Vernon's Texas Civil Statutes), is amended to read as
  follows:
         Sec. 4.  GUARANTEE OF STATE AND MUNICIPAL OBLIGATIONS; PAN
  AMERICAN GAMES REIMBURSEMENT [TRUST] FUND.
         SECTION 2.  Sections 4(b), (c), (d), (f), (g), (h), (j), (k),
  and (m), Chapter 1507 (S.B. 456), Acts of the 76th Legislature,
  Regular Session, 1999 (Article 5190.14, Vernon's Texas Civil
  Statutes), are amended to read as follows:
         (b)  If a site selection organization selects a site for the
  games in this state pursuant to an application by a local organizing
  committee acting on behalf of an endorsing municipality, after the
  first occurrence of a measurable economic impact in this state as a
  result of the preparation for the games, as determined by the
  department [comptroller], but in no event later than one year
  before the scheduled opening event of the games, the department
  [comptroller] shall determine for each subsequent calendar
  quarter, in accordance with procedures developed by the department
  [comptroller]:
               (1)  the incremental increase in the receipts to the
  state from the taxes imposed under Chapters 151, 152, 156, and 183,
  Tax Code, and under Title 5, Alcoholic Beverage Code, within the
  market areas designated under Subsection (c) of this section, that
  is directly attributable, as determined by the department
  [comptroller], to the preparation for and presentation of the games
  and related events;
               (2)  the incremental increase in the receipts collected
  by the state on behalf of the endorsing municipality from the sales
  and use tax imposed by the endorsing municipality under Section
  321.101(a), Tax Code, that is directly attributable, as determined
  by the department [comptroller], to the preparation for and
  presentation of the games and related events; and
               (3)  the incremental increase in the receipts collected
  by the endorsing municipality from the municipality's hotel
  occupancy tax imposed under Chapter 351, Tax Code, that is directly
  attributable, as determined by the department [comptroller], to the
  preparation for and presentation of the games and related events.
         (c)  For the purposes of Subsection (b)(1) of this section,
  the department [comptroller] shall designate as a market area for
  the games each area in which the department [comptroller]
  determines there is a reasonable likelihood of measurable economic
  impact directly attributable to the preparation for and
  presentation of the games and related events, including areas
  likely to provide venues, accommodations, and services in
  connection with the games based on the proposal provided by the
  local organizing committee under Section 7 of this Act. The
  department [comptroller] shall determine the geographic boundaries
  of each market area. The endorsing municipality that has been
  selected as the site for the games must be included in a market area
  for the games.
         (d)  The comptroller, at the direction of the department,
  shall retain, for the purpose of guaranteeing the joint obligations
  of the state and the endorsing municipality under a games support
  contract and this Act, the amount of municipal sales and use tax
  revenue determined under Subsection (b)(2) of this section from the
  amounts otherwise required to be sent to the municipality under
  Section 321.502, Tax Code, beginning with the first distribution of
  that tax revenue that occurs after the date the department
  [comptroller] makes the determination of the amount of municipal
  sales and use tax revenue under Subsection (b)(2). The comptroller
  shall discontinue retaining municipal sales and use tax revenue
  under this subsection on the earlier of:
               (1)  the end of the third calendar month following the
  month in which the closing event of the games occurs; or
               (2)  the date the amount of municipal sales and use tax
  revenue and municipal hotel occupancy tax revenue in the Pan
  American Games reimbursement [trust] fund equals 14 percent of the
  maximum amount of state and municipal tax revenue that may be
  transferred to or deposited in the [trust] fund under Subsection
  (m) of this section.
         (f)  Subject to Subsection (m) of this section, the
  comptroller, at the direction of the department, shall deposit into
  a [trust] fund designated as the Pan American Games reimbursement 
  [trust] fund the amount of municipal sales and use tax revenue
  retained under Subsection (d) of this section and, at the same time,
  shall transfer to the fund a portion of the state tax revenue
  determined by the department under Subsection (b)(1) of this
  section in an amount equal to 6.25 times the amount of that
  municipal sales and use tax revenue. Subject to Subsection (m) of
  this section, the endorsing municipality shall deposit into the
  [trust] fund the amount of the endorsing municipality's hotel
  occupancy tax revenue determined by the department under Subsection
  (b)(3) of this section. The endorsing municipality shall deposit
  that hotel occupancy tax revenue into the [trust] fund at least
  quarterly. When the endorsing municipality makes a deposit of its
  hotel occupancy tax revenue, the comptroller, at the direction of
  the department, shall transfer to the fund [deposit] at the same
  time a portion of the state tax revenue determined under Subsection
  (b)(1) of this section in an amount equal to 6.25 times the amount
  of that municipal hotel occupancy tax revenue. The Pan American
  Games reimbursement [trust] fund is established outside the
  treasury but is held in trust by the comptroller for the
  administration of this Act. Money in the [trust] fund may be spent
  by the department without appropriation only as provided by this
  Act. The comptroller shall discontinue transferring [depositing]
  into the [trust] fund any state tax revenue determined by the
  department under Subsection (b)(1) of this section on the earlier
  of:
               (1)  the end of the third calendar month following the
  month in which the closing event of the games occurs; or
               (2)  the date on which the amount of state revenue in
  the Pan American Games reimbursement [trust] fund equals 86 percent
  of the maximum amount of state and municipal tax revenue that may be
  transferred to or deposited in the [trust] fund under Subsection
  (m) of this section.
         (g)  The department may use the money [funds] in the Pan
  American Games reimbursement [trust] fund only to fulfill joint
  obligations of the state and the endorsing municipality to a site
  selection organization under a games support contract or any other
  agreement providing assurances from the department or the endorsing
  municipality to a site selection organization.
         (h)  A local organizing committee shall provide information
  required by the department [comptroller] to enable the department
  [comptroller] to fulfill the department's [comptroller's] duties
  under this Act, including annual audited statements of the local
  organizing committee's financial records required by a site
  selection organization and data obtained by the local organizing
  committee relating to attendance at the games and to the economic
  impact of the games. A local organizing committee must provide an
  annual audited financial statement required by the department
  [comptroller] not later than the end of the fourth month after the
  date the period covered by the financial statement ends.
         (j)  The department may not make a disbursement from the Pan
  American Games reimbursement [trust] fund unless the department
  [comptroller] certifies that the disbursement is for a purpose for
  which the state and the endorsing municipality are jointly
  obligated under a games support contract or other agreement
  described by Subsection (g) of this section.
         (k)  If the department [comptroller] certifies under
  Subsection (j) of this section that a disbursement may be made from
  the Pan American Games reimbursement [trust] fund, the obligation
  shall be satisfied first out of municipal revenue deposited in the
  [trust] fund and any interest earned on that municipal revenue. If
  the municipal revenue is not sufficient to satisfy the entire
  deficit, state revenue transferred [deposited] into the [trust]
  fund and any interest earned on that state revenue shall be used to
  satisfy the portion of the deficit not covered by the municipal
  revenue.
         (m)  In no event may:
               (1)  the total amount of state and municipal tax
  revenue transferred to or deposited in the Pan American Games
  reimbursement [trust] fund exceed $20 million; or
               (2)  the joint liability of the state and the endorsing
  municipality under a joinder agreement and any other games support
  contracts entered into pursuant to this Act exceed the lesser of:
                     (A)  $20 million; or
                     (B)  the total amount of revenue transferred to or 
  deposited in the Pan American Games reimbursement [trust] fund and
  interest earned on the fund.
         SECTION 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
  reimbursement [trust] fund before January 1[, 2012,] of the year
  following the year in which the games would be held, if the games
  were to be held in this state at a site selected pursuant to an
  application by a local organizing committee. The department
  [comptroller] shall provide the estimate on request to a local
  organizing committee. A local organizing committee may submit the
  department's [comptroller's] estimate to a site selection
  organization.
         (l)  On January 1[, 2013,] of the second year following the
  year in which the games are held in this state, the comptroller, at
  the direction of the department, shall transfer to the general
  revenue fund any money remaining in the Pan American Games
  reimbursement [trust] fund, not to exceed the amount of state
  revenue remaining in the [trust] fund, plus any interest earned on
  that state revenue. The comptroller shall remit to the endorsing
  municipality any money remaining in the [trust] fund after the
  required amount is transferred to the general revenue fund.
         SECTION 4.  The heading to Section 5, Chapter 1507 (S.B.
  456), Acts of the 76th Legislature, Regular Session, 1999 (Article
  5190.14, Vernon's Texas Civil Statutes), is amended to read as
  follows:
         Sec. 5.  GUARANTEE OF STATE AND MUNICIPAL OBLIGATIONS;
  OLYMPIC GAMES REIMBURSEMENT [TRUST] FUND.
         SECTION 5.  Sections 5(b), (c), (d), (f), (g), (h), (i), (j),
  (k), (l), and (m), Chapter 1507 (S.B. 456), Acts of the 76th
  Legislature, Regular Session, 1999 (Article 5190.14, Vernon's
  Texas Civil Statutes), are amended to read as follows:
         (b)  If a site selection organization selects a site for the
  games in this state pursuant to an application by a local organizing
  committee, after the first occurrence of a measurable economic
  impact in this state as a result of the preparation for the games,
  as determined by the department [comptroller], but in no event
  later than one year before the scheduled opening event of the games,
  the department [comptroller] shall determine for each subsequent
  calendar quarter, in accordance with procedures developed by the
  department [comptroller]:
               (1)  the incremental increase in the receipts to the
  state from the taxes imposed under Chapters 151, 152, 156, and 183,
  Tax Code, and under Title 5, Alcoholic Beverage Code, within the
  market areas designated under Subsection (c) of this section, that
  is directly attributable, as determined by the department
  [comptroller], to the preparation for and presentation of the games
  and related events;
               (2)  the incremental increase in the receipts collected
  by the state on behalf of each endorsing municipality from the sales
  and use tax imposed by the endorsing municipality under Section
  321.101(a), Tax Code, and the mixed beverage tax revenue to be
  received by the endorsing municipality under Section 183.051(b),
  Tax Code, that is directly attributable, as determined by the
  department [comptroller], to the preparation for and presentation
  of the games and related events;
               (3)  the incremental increase in the receipts collected
  by the state on behalf of each endorsing county from the sales and
  use tax imposed by the county under Section 323.101(a), Tax Code,
  and the mixed beverage tax revenue to be received by the endorsing
  county under Section 183.051(b), Tax Code, that is directly
  attributable, as determined by the department [comptroller], to the
  preparation for and presentation of the games and related events;
               (4)  the incremental increase in the receipts collected
  by each endorsing municipality from the hotel occupancy tax imposed
  under Chapter 351, Tax Code, that is directly attributable, as
  determined by the department [comptroller], to the preparation for
  and presentation of the games and related events; and
               (5)  the incremental increase in the receipts collected
  by each endorsing county from the hotel occupancy tax imposed under
  Chapter 352, Tax Code, that is directly attributable, as determined
  by the department [comptroller], to the preparation for and
  presentation of the games and related events.
         (c)  For the purposes of Subsection (b)(1) of this section,
  the department [comptroller] shall designate as a market area for
  the games each area in which the department [comptroller]
  determines there is a reasonable likelihood of measurable economic
  impact directly attributable to the preparation for and
  presentation of the games and related events, including areas
  likely to provide venues, accommodations, and services in
  connection with the games based on the proposal provided by the
  local organizing committee under Section 7 of this Act. The
  department [comptroller] shall determine the geographic boundaries
  of each market area. Each endorsing municipality or endorsing
  county that has been selected as the site for the games must be
  included in a market area for the games.
         (d)  Subject to Section 6 of this Act, the comptroller, at
  the direction of the department, shall retain, for the purpose of
  guaranteeing the joint obligations of the state and an endorsing
  municipality or endorsing county under a games support contract and
  this Act, the amount of sales and use tax revenue and mixed beverage
  tax revenue determined under Subsection (b)(2) or (b)(3) of this
  section from the amounts otherwise required to be sent to the
  municipality under Section 183.051(b) or 321.502, Tax Code, or to
  the county under Section 183.051(b) or 323.502, Tax Code, beginning
  with the first distribution of that tax revenue that occurs after
  the date the department [comptroller] makes the determination of
  the amount of sales and use tax revenue and mixed beverage tax
  revenue under Subsection (b)(2) or (b)(3) of this section. The
  comptroller shall discontinue retaining sales and use tax revenue
  and mixed beverage tax revenue under this subsection on the earlier
  of:
               (1)  the end of the third calendar month following the
  month in which the closing event of the games occurs; or
               (2)  the date the amount of local sales and use tax
  revenue and mixed beverage tax revenue in the Olympic Games
  reimbursement [trust] fund equals 14 percent of the maximum amount
  of state and local tax revenue that may be transferred to or 
  deposited in the [trust] fund under Subsection (m) of this section.
         (f)  Subject to Subsection (m) of this section, each
  endorsing municipality or endorsing county shall remit to the
  comptroller and the comptroller, at the direction of the
  department, shall deposit into a trust fund designated as the
  Olympic Games reimbursement [trust] fund, on a quarterly basis, the
  amount of the municipality's or county's hotel occupancy tax
  revenue determined by the department under Subsection (b)(4) or
  (b)(5) of this section, as applicable. Subject to Section 6 of this
  Act and Subsection (m) of this section, the comptroller, at the
  direction of the department, shall deposit into the [trust] fund
  the amount of sales and use tax revenue and mixed beverage tax
  revenue retained under Subsection (d) of this section for the same
  calendar quarter and, at the same time, shall transfer to the fund 
  the state tax revenue determined by the department under Subsection
  (b)(1) of this section for the quarter.  The Olympic Games
  reimbursement [trust] fund is established outside the treasury but
  is held in trust by the comptroller for the administration of this
  Act. Money in the [trust] fund may be spent by the department
  without appropriation only as provided by this Act. The
  comptroller shall discontinue transfer [deposit] of the amount of
  state tax revenue determined by the department under Subsection
  (b)(1) of this section on the earlier of:
               (1)  the end of the third calendar month following the
  month in which the closing event of the games occurs; or
               (2)  the date the amount of state revenue in the Olympic
  Games reimbursement [trust] fund equals 86 percent of the maximum
  amount of state, municipal, and county tax revenue that may be
  transferred to or deposited in the [trust] fund under Subsection
  (m) of this section.
         (g)  The department may use the money [funds] in the Olympic
  Games reimbursement [trust] fund only to fulfill joint obligations
  of the state and each endorsing municipality or endorsing county to
  a site selection organization under a games support contract or any
  other agreement providing assurances from the department or the
  municipality or county to a site selection organization.
         (h)  A local organizing committee shall provide information
  required by the department [comptroller] to enable the department
  [comptroller] to fulfill the department's [comptroller's] duties
  under this Act, including annual audited statements of the local
  organizing committee's financial records required by a site
  selection organization and data obtained by the local organizing
  committee relating to attendance at the games and to the economic
  impact of the games. A local organizing committee must provide an
  annual audited financial statement required by the department
  [comptroller] not later than the end of the fourth month after the
  date the period covered by the financial statement ends.
         (i)  The department [comptroller] shall provide an estimate
  before August 31 of the year that is 12 years before the year in
  which the games would be held in this state, or as soon as practical
  after that date, of the total amount of state, municipal, and county
  tax revenue that would be transferred to or deposited in the Olympic
  Games reimbursement [trust] fund if the games were to be held in
  this state at a site selected pursuant to an application by a local
  organizing committee. The department [comptroller] shall provide
  the estimate on request to a local organizing committee. A local
  organizing committee may submit the department's [comptroller's]
  estimate to a site selection organization.
         (j)  The department may not make a disbursement from the
  Olympic Games reimbursement [trust] fund unless the department
  [comptroller] certifies that the disbursement is for a purpose for
  which the state and each endorsing municipality or endorsing county
  are jointly obligated under a games support contract or other
  agreement described by Subsection (g) of this section. A
  disbursement may not be made from the [trust] fund that the
  department determines would be used for the purpose of soliciting
  the relocation of a professional sports franchise located in this
  state.
         (k)  If the department [comptroller] certifies under
  Subsection (j) of this section that a disbursement may be made from
  the Olympic Games reimbursement [trust] fund, the obligation shall
  be satisfied proportionately from the state and municipal or county
  revenue in the [trust] fund.
         (l)  Two years after the closing event of the games, the
  department [comptroller] shall transfer to the general revenue fund
  any money remaining in the Olympic Games reimbursement [trust]
  fund, not to exceed the amount of state revenue remaining in the
  [trust] fund, plus any interest earned on that state revenue. The
  department [comptroller] shall remit to each endorsing entity in
  proportion to the amount contributed by the entity any money
  remaining in the [trust] fund after the required amount is
  transferred to the general revenue fund.
         (m)  In no event may:
               (1)  the total amount of state, municipal, and county
  tax revenue transferred to or deposited in the Olympic Games
  reimbursement [trust] fund exceed $100 million; or
               (2)  the joint liability of the state and an endorsing
  municipality or county under a joinder agreement and any other
  games support contracts entered into pursuant to this Act exceed
  the lesser of:
                     (A)  $100 million; or
                     (B)  the total amount of revenue transferred to or 
  deposited in the Olympic Games reimbursement [trust] fund and
  interest earned on the fund.
         SECTION 6.  The heading to Section 5A, Chapter 1507 (S.B.
  456), Acts of the 76th Legislature, Regular Session, 1999 (Article
  5190.14, Vernon's Texas Civil Statutes), is amended to read as
  follows:
         Sec. 5A.  PAYMENT OF STATE AND MUNICIPAL OR COUNTY
  OBLIGATIONS; MAJOR EVENTS REIMBURSEMENT [TRUST] FUND.
         SECTION 7.  Sections 5A(a)(1) and (2), Chapter 1507 (S.B.
  456), Acts of the 76th Legislature, Regular Session, 1999 (Article
  5190.14, Vernon's Texas Civil Statutes), are amended to read as
  follows:
               (1)  "Endorsing county" means:
                     (A)  a county that contains a site selected by a
  site selection organization for one or more events; or
                     (B)  a county that:
                           (i)  does not contain a site selected by a
  site selection organization for an event;
                           (ii)  is included in the market area for the
  event as designated by the department [comptroller]; and
                           (iii)  is a party to an event support
  contract.
               (2)  "Endorsing municipality" means:
                     (A)  a municipality that contains a site selected
  by a site selection organization for one or more events; or
                     (B)  a municipality that:
                           (i)  does not contain a site selected by a
  site selection organization for an event;
                           (ii)  is included in the market area for the
  event as designated by the department [comptroller]; and
                           (iii)  is a party to an event support
  contract.
         SECTION 8.  Sections 5A(a-1), (a-2), (b), (b-1), (c), (d),
  (d-1), (e), (f), (g), (i), (j), (k), (l), (m), (p), (v), (w), and
  (y), Chapter 1507 (S.B. 456), Acts of the 76th Legislature, Regular
  Session, 1999 (Article 5190.14, Vernon's Texas Civil Statutes), are
  amended to read as follows:
         (a-1)  An event not listed in Subsection (a)(4) of this
  section is ineligible for funding under this section.  A listed
  event may receive funding under this section only if:
               (1)  a site selection organization selects a site
  located in this state for the event to be held one time or, for an
  event scheduled to be held each year for a period of years under an
  event contract, or an event support contract, one time each year for
  the period of years, after considering, through a highly
  competitive selection process, one or more sites that are not
  located in this state;
               (2)  a site selection organization selects a site in
  this state as:
                     (A)  the sole site for the event; or
                     (B)  the sole site for the event in a region
  composed of this state and one or more adjoining states;
               (3)  the event is held not more than one time in any
  year; and
               (4)  the amount of the incremental increase in tax
  receipts determined by the department [comptroller] under
  Subsection (b) of this section equals or exceeds $1 million,
  provided that for an event scheduled to be held each year for a
  period of years under an event contract or event support contract,
  the incremental increase in tax receipts shall be calculated as if
  the event did not occur in the prior year.
         (a-2)  Subsection (a-1)(1) of this section does not apply to
  an event that is the largest event held each year at a sports
  entertainment venue in this state with a permanent seating
  capacity, including grandstand and premium seating, of not less
  than 125,000.  If an endorsing municipality or endorsing county
  requests the department [comptroller] to make a determination under
  Subsection (b) of this section for an event described by this
  subsection, the provisions of this section apply to that event as if
  it satisfied the eligibility requirements for an event under
  Subsection (a-1)(1) of this section.
         (b)  If a site selection organization selects a site for an
  event in this state pursuant to an application by a local organizing
  committee, endorsing municipality, or endorsing county, upon
  request of a local organizing committee, endorsing municipality, or
  endorsing county, the department [comptroller] shall determine for
  a one-year period that begins two months before the date on which
  the event will begin, in accordance with procedures developed by
  the department [comptroller]:
               (1)  the incremental increase in the receipts to the
  state from taxes imposed under Chapters 151, 152, 156, and 183, Tax
  Code, and under Title 5, Alcoholic Beverage Code, within the market
  areas designated under Subsection (c) of this section, that is
  directly attributable, as determined by the department
  [comptroller], to the preparation for and presentation of the event
  and related activities;
               (2)  the incremental increase in the receipts collected
  by the state on behalf of each endorsing municipality in the market
  area from the sales and use tax imposed by each endorsing
  municipality under Section 321.101(a), Tax Code, and the mixed
  beverage tax revenue to be received by each endorsing municipality
  under Section 183.051(b), Tax Code, that is directly attributable,
  as determined by the department [comptroller], to the preparation
  for and presentation of the event and related activities;
               (3)  the incremental increase in the receipts collected
  by the state on behalf of each endorsing county in the market area
  from the sales and use tax imposed by each endorsing county under
  Section 323.101(a), Tax Code, and the mixed beverage tax revenue to
  be received by each endorsing county under Section 183.051(b), Tax
  Code, that is directly attributable, as determined by the
  department [comptroller], to the preparation for and presentation
  of the event and related activities;
               (4)  the incremental increase in the receipts collected
  by each endorsing municipality in the market area from the hotel
  occupancy tax imposed under Chapter 351, Tax Code, that is directly
  attributable, as determined by the department [comptroller], to the
  preparation for and presentation of the event and related
  activities; and
               (5)  the incremental increase in the receipts collected
  by each endorsing county in the market area from the hotel occupancy
  tax imposed under Chapter 352, Tax Code, that is directly
  attributable, as determined by the department [comptroller], to the
  preparation for and presentation of the event and related
  activities.
         (b-1)  A request for a determination of the amount of
  incremental increase in tax receipts specified by Subsection (b) of
  this section must be submitted to the department [comptroller] not
  earlier than one year and not later than 45 days before the date the
  event begins.  The department [comptroller] shall base the
  determination specified by Subsection (b) of this section on
  information submitted by the local organizing committee, endorsing
  municipality, or endorsing county, and must make the determination
  not later than the 30th day after the date the department
  [comptroller] receives the request and related information.
         (c)  For the purposes of Subsection (b)(1) of this section,
  the department [comptroller] shall designate as a market area for
  the event each area in which the department [comptroller]
  determines there is a reasonable likelihood of measurable economic
  impact directly attributable to the preparation for and
  presentation of the event and related activities, including areas
  likely to provide venues, accommodations, and services in
  connection with the event based on the proposal provided by the
  local organizing committee to the department [comptroller].  The
  department [comptroller] shall determine the geographic boundaries
  of each market area.  An endorsing municipality or endorsing county
  that has been selected as the site for the event must be included in
  a market area for the event.
         (d)  Each endorsing municipality or endorsing county shall
  remit to the comptroller and the comptroller shall deposit into a
  [trust] fund created by the comptroller, at the direction of the
  department, and designated as the Major Events reimbursement 
  [trust] fund the amount of the municipality's or county's hotel
  occupancy tax revenue determined by the department under Subsection
  (b)(4) or (b)(5) of this section, less any amount of the revenue
  that the municipality or county determines is necessary to meet the
  obligations of the municipality or county.  The comptroller, at the
  direction of the department, shall retain the amount of sales and
  use tax revenue and mixed beverage tax revenue determined by the
  department under Subsection (b)(2) or (b)(3) of this section from
  the amounts otherwise required to be sent to the municipality under
  Sections 321.502 and 183.051(b), Tax Code, or to the county under
  Sections 323.502 and 183.051(b), Tax Code, and deposit into the
  [trust] fund the tax revenues, less any amount of the revenue that
  the municipality or county determines is necessary to meet the
  obligations of the municipality or county.  The comptroller shall
  begin retaining and depositing the local tax revenues with the
  first distribution of that tax revenue that occurs after the first
  day of the one-year period described by Subsection (b) of this
  section or at a time otherwise determined to be practicable by the
  department [comptroller] and shall discontinue retaining the local
  tax revenues under this subsection when the amount of the
  applicable tax revenue determined by the department under
  Subsection (b)(2) or (b)(3) of this section has been retained.  The
  Major Events reimbursement [trust] fund is established outside the
  state treasury and is held in trust by the comptroller for
  administration of this Act.  Money in the [trust] fund may be
  disbursed by the department [comptroller] without appropriation
  only as provided by this section.
         (d-1)  Not later than the 90th day after the last day of an
  event and in lieu of the local tax revenues remitted [to] or
  retained [by the comptroller] under Subsection (d) of this section,
  a municipality or county may remit to the department [comptroller]
  for deposit in the Major Events reimbursement [trust] fund other
  local funds in an amount equal to the total amount of local tax
  revenue determined by the department under Subsections (b)(2)
  through (5) of this section.  The amount deposited by the
  department [comptroller] into the Major Events reimbursement 
  [trust] fund under this subsection is subject to Subsection (f) of
  this section.
         (e)  In addition to the tax revenue deposited in the Major
  Events reimbursement [trust] fund under Subsection (d) of this
  section, an endorsing municipality or endorsing county may
  guarantee its obligations under an event support contract and this
  section by pledging surcharges from user fees, including parking or
  ticket fees, charged in connection with the event.  An endorsing
  municipality or endorsing county may collect and remit to the
  department [comptroller] surcharges and user fees attributable to
  the event for deposit into the Major Events reimbursement [trust]
  fund.
         (f)  The comptroller, at the direction of the department,
  shall transfer [deposit] into the Major Events reimbursement 
  [trust] fund a portion of the state tax revenue not to exceed the
  amount determined by the department under Subsection (b)(1) of this
  section in an amount equal to 6.25 times the amount of the local
  revenue retained or remitted under this section, including:
               (1)  local sales and use tax revenue;
               (2)  mixed beverage tax revenue;
               (3)  hotel occupancy tax revenue; and
               (4)  surcharge and user fee revenue.
         (g)  To meet its obligations under a game support contract or
  event support contract to improve, construct, renovate, or acquire
  facilities or to acquire equipment, an endorsing municipality by
  ordinance or an endorsing county by order may authorize the
  issuance of notes. An endorsing municipality or endorsing county
  may provide that the notes be paid from and secured by amounts on
  deposit or amounts to be deposited into the Major Events
  reimbursement [trust] fund or surcharges from user fees, including
  parking or ticket fees, charged in connection with the event. Any
  note issued must mature not later than seven years from its date of
  issuance.
         (i)  A local organizing committee, endorsing municipality,
  or endorsing county shall provide information required by the
  department [comptroller] to enable the department [comptroller] to
  fulfill the department's [comptroller's] duties under this section,
  including annual audited statements of any financial records
  required by a site selection organization and data obtained by the
  local organizing committee, an endorsing municipality, or an
  endorsing county relating to attendance at the event, including an
  estimate of the number of people expected to attend the event who
  are not residents of this state, and to the economic impact of the
  event.  A local organizing committee, endorsing municipality, or
  endorsing county must provide an annual audited financial statement
  required by the department [comptroller], if any, not later than
  the end of the fourth month after the date the period covered by the
  financial statement ends.  After the conclusion of an event and on
  the department's [comptroller's] request, a local organizing
  committee, endorsing municipality, or endorsing county must
  provide information relating to the event, such as attendance
  figures, including an estimate of the number of attendees at the
  event who are not residents of this state, financial information,
  or other public information held by the local organizing committee,
  endorsing municipality, or endorsing county that the department
  [comptroller] considers necessary.
         (j)  Not later than the 30th day after the date a request of a
  local organizing committee, endorsing municipality, or endorsing
  county is submitted to the department [comptroller] under
  Subsection (b-1) of this section, the department [comptroller]
  shall provide an estimate of the total amount of tax revenue that
  would be deposited in the Major Events reimbursement [trust] fund
  under this section in connection with that event, if the event were
  to be held in this state at a site selected pursuant to an
  application by a local organizing committee, endorsing
  municipality, or endorsing county.  A local organizing committee,
  endorsing municipality, or endorsing county may submit the
  department's [comptroller's] estimate to a site selection
  organization.
         (k)  The department [comptroller] may make a disbursement
  from the Major Events reimbursement [trust] fund on the prior
  approval of each contributing endorsing municipality or endorsing
  county for a purpose for which a local organizing committee, an
  endorsing municipality, or an endorsing county or the state is
  obligated under a game support contract or event support
  contract.  If an obligation is incurred under a games support
  contract or event support contract to make a structural improvement
  to the site or to add a fixture to the site for purposes of an event
  and that improvement or fixture is expected to derive most of its
  value in subsequent uses of the site for future events, a
  disbursement from the [trust] fund made for purposes of that
  obligation is limited to five percent of the cost of the improvement
  or fixture and the remainder of the obligation is not eligible for a
  disbursement from the [trust] fund, unless the improvement or
  fixture is for a publicly owned facility.  In considering whether
  to make a disbursement from the [trust] fund, the department
  [comptroller] may not consider a contingency clause in an event
  support contract as relieving a local organizing committee's,
  endorsing municipality's, or endorsing county's obligation to pay a
  cost under the contract.  A disbursement may not be made from the
  [trust] fund that the department [comptroller] determines would be
  used for the purpose of soliciting the relocation of a professional
  sports franchise located in this state.
         (l)  If a disbursement is made from the Major Events
  reimbursement [trust] fund under Subsection (k) of this section,
  the obligation shall be satisfied proportionately from the state
  and local revenue in the [trust] fund.
         (m)  On payment of all state, municipal, or county
  obligations under a game support contract or event support contract
  related to the location of any particular event in the state, the
  department [comptroller] shall remit to each endorsing entity, in
  proportion to the amount contributed by the entity, any money
  remaining in the [trust] fund.
         (p)  The department [comptroller] may not undertake any of
  the responsibilities or duties set forth in this section unless:
               (1)  a request is submitted by the municipality or the
  county in which the event will be located;
               (2)  the event meets all the requirements for funding
  under this section, including Subsection (a-1) of this section; and
               (3)  the request is accompanied by documentation from a
  site selection organization selecting the site for the event.
         (v)  The department [comptroller] may adopt rules necessary
  to implement this section.
         (w)  Not later than 10 months after the last day of an event
  eligible for disbursements from the Major Events reimbursement 
  [trust] fund for costs associated with the event, the department
  [comptroller] using existing resources shall complete a study in
  the market area of the event on the measurable economic impact
  directly attributable to the preparation for and presentation of
  the event and related activities.  The department [comptroller]
  shall post on the department's [comptroller's] Internet website:
               (1)  the results of the study conducted under this
  subsection, including any source documentation or other
  information relied on by the department [comptroller] for the
  study;
               (2)  the amount of incremental increase in tax receipts
  for the event determined by the department under Subsection (b) of
  this section;
               (3)  the site selection organization documentation
  described in Subsection (p)(3) of this section;
               (4)  any source documentation or information described
  under Subsection (i) of this section that was relied on by the
  department [comptroller] in making the determination of the amount
  of incremental increase in tax receipts under Subsection (b) of
  this section; and
               (5)  documentation verifying that:
                     (A)  a request submitted by a local organizing
  committee, endorsing municipality, or endorsing county under
  Subsection (p) of this section is complete and certified as such by
  the department [comptroller];
                     (B)  the determination on the amount of
  incremental increases in tax receipts under Subsection (b) of this
  section considered the information submitted by a local organizing
  committee, endorsing municipality, or endorsing county as required
  under Subsection (b-1) of this section; and
                     (C)  each deadline established under this section
  was timely met.
         (y)  After the conclusion of an event, the department
  [comptroller] shall compare information on the actual attendance
  figures provided to the department [comptroller] under Subsection
  (i) of this section with the estimated attendance numbers used to
  determine the incremental increase in tax receipts under Subsection
  (b) of this section.  If the actual attendance figures are
  significantly lower than the estimated attendance numbers, the
  department [comptroller] may reduce the amount of a disbursement
  for an endorsing entity under the Major Events reimbursement 
  [trust] fund in proportion to the discrepancy between the actual
  and estimated attendance and in proportion to the amount
  contributed to the fund by the entity.  The department
  [comptroller] by rule shall define "significantly lower" for
  purposes of this subsection and provide the manner in which a
  disbursement may be proportionately reduced.  This subsection does
  not affect the remittance of any money remaining in the fund in
  accordance with Subsection (m) of this section.
         SECTION 9.  The heading to Section 5B, Chapter 1507 (S.B.
  456), Acts of the 76th Legislature, Regular Session, 1999 (Article
  5190.14, Vernon's Texas Civil Statutes), is amended to read as
  follows:
         Sec. 5B.  GUARANTEE OF STATE AND MUNICIPAL OR COUNTY
  OBLIGATIONS; MOTOR SPORTS RACING REIMBURSEMENT [TRUST] FUND.
         SECTION 10.  Sections 5B(b), (c), (d), (e), (f), (g), (h),
  (i), (j), (k), (l), (m), and (o), Chapter 1507 (S.B. 456), Acts of
  the 76th Legislature, Regular Session, 1999 (Article 5190.14,
  Vernon's Texas Civil Statutes), are amended to read as follows:
         (b)  If a site selection organization selects a site for a
  motor sports racing event in this state pursuant to an application
  by a local organizing committee, endorsing municipality, or
  endorsing county, not later than three months before the date of the
  motor sports racing event, the department [comptroller] shall
  determine for the 30-day period that ends at the end of the day
  after the date on which the racing event will be held, in accordance
  with procedures developed by the department [comptroller]:
               (1)  the incremental increase in the receipts to the
  state from taxes imposed under Chapters 151, 152, 156, and 183, Tax
  Code, and under Title 5, Alcoholic Beverage Code, within the market
  areas designated under Subsection (c) of this section, that is
  directly attributable, as determined by the department
  [comptroller], to the preparation for and presentation of the
  racing event;
               (2)  the incremental increase in the receipts collected
  by the state on behalf of each endorsing municipality in the market
  area from the sales and use tax imposed by each endorsing
  municipality under Section 321.101(a), Tax Code, and the mixed
  beverage tax revenue to be received by each endorsing municipality
  under Section 183.051(b), Tax Code, that is directly attributable,
  as determined by the department [comptroller], to the preparation
  for and presentation of the racing event;
               (3)  the incremental increase in the receipts collected
  by the state on behalf of each endorsing county in the market area
  from the sales and use tax imposed by each endorsing county under
  Section 323.101(a), Tax Code, and the mixed beverage tax revenue to
  be received by each endorsing county under Section 183.051(b), Tax
  Code, that is directly attributable, as determined by the
  department [comptroller], to the preparation for and presentation
  of the racing event;
               (4)  the incremental increase in the receipts collected
  by each endorsing municipality in the market area from the hotel
  occupancy tax imposed under Chapter 351, Tax Code, that is directly
  attributable, as determined by the department [comptroller], to the
  preparation for and presentation of the racing event; and
               (5)  the incremental increase in the receipts collected
  by each endorsing county in the market area from the hotel occupancy
  tax imposed under Chapter 352, Tax Code, that is directly
  attributable, as determined by the department [comptroller], to the
  preparation for and presentation of the racing event.
         (c)  For the purposes of Subsection (b)(1) of this section,
  the department [comptroller] shall designate as a market area for
  the motor sports racing event each area in which the department
  [comptroller] determines there is a reasonable likelihood of
  measurable economic impact directly attributable to the
  preparation for and presentation of the racing event, including
  areas likely to provide venues, accommodations, and services in
  connection with the racing event based on a proposal or other
  information provided by an endorsing municipality, endorsing
  county, or local organizing committee to the department
  [comptroller].  The department [comptroller] shall determine the
  geographic boundaries of each market area.  An endorsing
  municipality or endorsing county that has been selected as the site
  for the racing event must be included in a market area for the
  racing event.
         (d)  Each endorsing municipality or endorsing county shall
  remit to the comptroller and the comptroller shall deposit into a
  [trust] fund created by the comptroller, at the direction of the
  department, and designated as the Motor Sports Racing reimbursement 
  [trust] fund for the particular event the amount of the
  municipality's or county's hotel occupancy tax revenue determined
  by the department under Subsection (b)(4) or (5) of this section,
  less any amount of the revenue that the municipality or county
  determines is necessary to meet the obligations of the municipality
  or county.  The comptroller, at the direction of the department,
  shall retain the amount of sales and use tax revenue and mixed
  beverage tax revenue determined by the department under Subsection
  (b)(2) or (3) of this section from the amounts otherwise required to
  be sent to the municipality under Sections 321.502 and 183.051(b),
  Tax Code, or to the county under Sections 323.502 and 183.051(b),
  Tax Code, and deposit into the [trust] fund the tax revenues, less
  any amount of the revenue that the municipality or county
  determines is necessary to meet the obligations of the municipality
  or county.  The comptroller shall begin retaining and depositing
  the local tax revenues with the first distribution of that tax
  revenue that occurs after the first day of the 30-day period
  described by Subsection (b) of this section and shall discontinue
  retaining the local tax revenues under this subsection when the
  amount of the applicable tax revenue determined under Subsection
  (b)(2) or (3) of this section has been retained.  The Motor Sports
  Racing reimbursement [trust] fund is established outside the state
  treasury and is held in trust by the comptroller for administration
  of this section.  Money in the [trust] fund may be disbursed by the
  department [comptroller] without appropriation only as provided by
  this section.
         (e)  In addition to the tax revenue deposited in the Motor
  Sports Racing reimbursement [trust] fund under Subsection (d) of
  this section, an endorsing municipality or endorsing county may
  guarantee its obligations under a motor sports racing event support
  contract and this section by pledging surcharges from user fees,
  including parking or ticket fees, charged in connection with the
  racing event.
         (f)  The comptroller, at the direction of the department,
  shall transfer [deposit] a portion of the state tax revenue
  determined by the department under Subsection (b)(1) of this
  section in an amount equal to 6.25 times the amount of the local
  sales and use tax revenue and mixed beverage tax revenue retained
  and the hotel occupancy tax revenue remitted by an endorsing
  municipality or endorsing county under Subsection (d) of this
  section.
         (g)  To meet its obligations under a motor sports racing
  event support contract or event support contract to improve,
  renovate, or acquire facilities or to acquire equipment, an
  endorsing municipality by ordinance or an endorsing county by order
  may authorize the issuance of notes. An endorsing municipality or
  endorsing county may provide that the notes be paid from and secured
  by amounts on deposit or amounts to be transferred or deposited into
  the Motor Sports Racing reimbursement [trust] fund or surcharges
  from user fees, including parking or ticket fees, charged in
  connection with the racing event. Any note issued must mature not
  later than seven years from its date of issuance.
         (h)  The money [funds] in the Motor Sports Racing
  reimbursement [trust] fund may be used to pay the principal of and
  interest on notes issued by an endorsing municipality or endorsing
  county under Subsection (g) of this section and to fulfill
  obligations of the state or an endorsing municipality or endorsing
  county to a site selection organization under a motor sports racing
  event support contract or event support contract, which obligations
  may include the payment of costs relating to the preparations
  necessary or desirable for the conduct of the racing event and the
  payment of costs of conducting the racing event, including
  temporary improvements or temporary renovations to existing
  facilities or other facilities specific to the event.
         (i)  A local organizing committee, endorsing municipality,
  or endorsing county shall provide information required by the
  department [comptroller] to enable the department [comptroller] to
  fulfill the department's [comptroller's] duties under this section,
  including annual audited statements of any financial records
  required by a site selection organization and data obtained by the
  local organizing committee, an endorsing municipality, or an
  endorsing county relating to attendance at the motor sports racing
  event and to the economic impact of the racing event.  A local
  organizing committee, endorsing municipality, or endorsing county
  must provide an annual audited financial statement required by the
  department [comptroller], if any, not later than the end of the
  fourth month after the date the period covered by the financial
  statement ends.
         (j)  The department [comptroller] shall provide an estimate
  not later than three months before the date of a motor sports racing
  event of the total amount of tax revenue that would be transferred
  to or deposited in the Motor Sports Racing reimbursement [trust]
  fund under this section in connection with that racing event, if the
  racing event were to be held in this state at a site selected
  pursuant to an application by a local organizing committee,
  endorsing municipality, or endorsing county.  The department
  [comptroller] shall provide the estimate on request to a local
  organizing committee, endorsing municipality, or endorsing county.  
  A local organizing committee, endorsing municipality, or endorsing
  county may submit the department's [comptroller's] estimate to a
  site selection organization.
         (k)  The department [comptroller] may make a disbursement
  from the Motor Sports Racing reimbursement [trust] fund on the
  prior approval of each contributing endorsing municipality or
  endorsing county for a purpose for which an endorsing municipality
  or endorsing county or the state is obligated under a motor sports
  racing event support contract or event support contract.  A
  disbursement may not be made from the [trust] fund that the
  department [comptroller] determines would be used for the purpose
  of soliciting the relocation of a professional sports franchise
  located in this state.
         (l)  If a disbursement is made from the Motor Sports Racing
  reimbursement [trust] fund under Subsection (k) of this section,
  the obligation shall be satisfied proportionately from the state
  and local revenue in the [trust] fund.
         (m)  On payment of all state, municipal, or county
  obligations under a motor sports racing support contract or event
  support contract related to the location of any particular racing
  event in the state, the department [comptroller] shall remit to
  each endorsing entity, in proportion to the amount contributed by
  the entity, any money remaining in the [trust] fund.
         (o)  The department [comptroller] may not undertake any of
  the responsibilities or duties set forth in this section unless a
  request is submitted by the municipality and the county in which the
  motor sports racing event will be held.  The request must be
  accompanied by documentation from a site selection organization
  selecting the site for the racing event.
         SECTION 11.  The heading to Section 5C, Chapter 1507 (S.B.
  456), Acts of the 76th Legislature, Regular Session, 1999 (Article
  5190.14, Vernon's Texas Civil Statutes), is amended to read as
  follows:
         Sec. 5C.  EVENTS REIMBURSEMENT [TRUST] FUND FOR CERTAIN
  MUNICIPALITIES AND COUNTIES.
         SECTION 12.  Sections 5C(b), (b-1), (c), (c-1), (d), (d-1),
  (e), (f), (g), (h), (i), (j), (k), (k-1), (k-2), (l), (m), (o), (p),
  (q), (r), and (t), Chapter 1507 (S.B. 456), Acts of the 76th
  Legislature, Regular Session, 1999 (Article 5190.14, Vernon's
  Texas Civil Statutes), are amended to read as follows:
         (b)  If a site selection organization selects a site for an
  event in this state pursuant to an application by a local organizing
  committee, endorsing municipality, or endorsing county, not later
  than three months before the date of the event, the department
  [comptroller] shall determine for the 30-day period that ends at
  the end of the day after the date on which the event will be held or,
  if the event occurs on more than one day, after the last date on
  which the event will be held, in accordance with procedures
  developed by the department [comptroller]:
               (1)  the incremental increase in the receipts to this
  state from taxes imposed under Chapters 151, 152, 156, and 183, Tax
  Code, and under Title 5, Alcoholic Beverage Code, within the market
  areas designated under Subsection (c) of this section, that is
  directly attributable, as determined by the department
  [comptroller], to the preparation for and presentation of the event
  and related activities;
               (2)  the incremental increase in the receipts collected
  by this state on behalf of each endorsing municipality in the market
  area from the sales and use tax imposed by each endorsing
  municipality under Section 321.101(a), Tax Code, and the mixed
  beverage tax revenue to be received by each endorsing municipality
  under Section 183.051(b), Tax Code, that is directly attributable,
  as determined by the department [comptroller], to the preparation
  for and presentation of the event and related activities;
               (3)  the incremental increase in the receipts collected
  by this state on behalf of each endorsing county in the market area
  from the sales and use tax imposed by each endorsing county under
  Section 323.101(a), Tax Code, and the mixed beverage tax revenue to
  be received by each endorsing county under Section 183.051(b), Tax
  Code, that is directly attributable, as determined by the
  department [comptroller], to the preparation for and presentation
  of the event and related activities;
               (4)  the incremental increase in the receipts collected
  by each endorsing municipality in the market area from the hotel
  occupancy tax imposed under Chapter 351, Tax Code, that is directly
  attributable, as determined by the department [comptroller], to the
  preparation for and presentation of the event and related
  activities; and
               (5)  the incremental increase in the receipts collected
  by each endorsing county in the market area from the hotel occupancy
  tax imposed under Chapter 352, Tax Code, that is directly
  attributable, as determined by the department [comptroller], to the
  preparation for and presentation of the event and related
  activities.
         (b-1)  The number of requests for funding under this section
  that may be submitted by an endorsing county or endorsing
  municipality during any 12-month period for an event for which the
  department [comptroller] determines that the total amount of the
  incremental increase in tax receipts under Subsection (b) of this
  section is less than $200,000 is limited to, during any 12-month
  period, not more than 10 events, only three of which may be
  nonsporting events.
         (c)  For the purposes of Subsection (b)(1) of this section,
  the department [comptroller] shall designate as a market area for
  the event each area in which the department [comptroller]
  determines there is a reasonable likelihood of measurable economic
  impact directly attributable to the preparation for and
  presentation of the event and related activities, including areas
  likely to provide venues, accommodations, and services in
  connection with the event based on the proposal provided by the
  local organizing committee to the department [comptroller].  The
  department [comptroller] shall determine the geographic boundaries
  of each market area.  An endorsing municipality or endorsing county
  that has been selected as the site for the event must be included in
  a market area for the event.
         (c-1)  The department [comptroller] shall base the
  determination specified by Subsection (b) of this section on
  information submitted by the local organizing committee, endorsing
  municipality, or endorsing county, and must make the determination
  not later than the 30th day after the date the department
  [comptroller] receives the information.
         (d)  Each endorsing municipality or endorsing county shall
  remit to the comptroller and the comptroller shall deposit into a
  [trust] fund created by the comptroller, at the direction of the
  department, and designated as the Events reimbursement [trust] fund
  the amount of the municipality's or county's hotel occupancy tax
  revenue determined by the department under Subsection (b)(4) or (5)
  of this section, less any amount of the revenue that the
  municipality or county determines is necessary to meet the
  obligations of the municipality or county.  The comptroller, at the
  direction of the department, shall retain the amount of sales and
  use tax revenue and mixed beverage tax revenue determined by the
  department under Subsection (b)(2) or (3) of this section from the
  amounts otherwise required to be sent to the municipality under
  Sections 321.502 and 183.051(b), Tax Code, or to the county under
  Sections 323.502 and 183.051(b), Tax Code, and deposit into the
  [trust] fund the tax revenues, less any amount of the revenue that
  the municipality or county determines is necessary to meet the
  obligations of the municipality or county.  The comptroller shall
  begin retaining and depositing the local tax revenues with the
  first distribution of that tax revenue that occurs after the first
  day of the period described by Subsection (b) of this section or at
  a time otherwise determined to be practicable by the department
  [comptroller] and shall discontinue retaining the local tax
  revenues under this subsection when the amount of the applicable
  tax revenue determined by the department under Subsection (b)(2) or
  (3) of this section has been retained.  The Events reimbursement 
  [trust] fund is established outside the state treasury and is held
  in trust by the comptroller for administration of this section.  
  Money in the [trust] fund may be disbursed by the department
  [comptroller] without appropriation only as provided by this
  section.
         (d-1)  Not later than the 90th day after the last day of an
  event and in lieu of the local tax revenues remitted [to] or
  retained [by the comptroller] under Subsection (d) of this section,
  a municipality or county may remit to the department [comptroller]
  for deposit in the Events reimbursement [trust] fund other local
  funds in an amount equal to the total amount of local tax revenue
  determined by the department under Subsections (b)(2) through (5)
  of this section.  The amount deposited by the department
  [comptroller] into the Events reimbursement [trust] fund under this
  subsection is subject to Subsection (f) of this section.
         (e)  In addition to the tax revenue deposited in the Events
  reimbursement [trust] fund under Subsection (d) of this section, an
  endorsing municipality or endorsing county may guarantee its
  obligations under an event support contract and this section by
  pledging surcharges from user fees, including parking or ticket
  fees, charged in connection with the event.  An endorsing
  municipality or endorsing county may collect and remit to the
  department [comptroller] surcharges and user fees attributable to
  the event for deposit into the Events reimbursement [trust] fund.
         (f)  The comptroller, at the direction of the department,
  shall transfer [deposit] into the Events reimbursement [trust] fund
  a portion of the state tax revenue not to exceed the amount
  determined by the department under Subsection (b)(1) of this
  section in an amount equal to 6.25 times the amount of the local tax
  revenue retained or remitted under this section, including:
               (1)  local sales and use tax revenue;
               (2)  mixed beverage tax revenue;
               (3)  hotel occupancy tax revenue; and
               (4)  surcharge and user fee revenue.
         (g)  To meet its obligations under an event support contract
  to improve, construct, renovate, or acquire facilities or to
  acquire equipment, an endorsing municipality by ordinance or an
  endorsing county by order may authorize the issuance of notes. An
  endorsing municipality or endorsing county may provide that the
  notes be paid from and secured by amounts on deposit or amounts to
  be transferred or deposited into the Events reimbursement [trust]
  fund or surcharges from user fees, including parking or ticket
  fees, charged in connection with the event. Any note issued must
  mature not later than seven years from its date of issuance.
         (h)  The money in the Events reimbursement [trust] fund may
  be used to pay the principal of and interest on notes issued by an
  endorsing municipality or endorsing county under Subsection (g) of
  this section and to fulfill obligations of this state or an
  endorsing municipality or endorsing county to a site selection
  organization under an event support contract. Subject to
  Subsection (k) of this section, the obligations may include the
  payment of costs relating to the preparations necessary for the
  conduct of the event and the payment of costs of conducting the
  event, including improvements or renovations to existing
  facilities or other facilities and costs of acquisition or
  construction of new facilities or other facilities.
         (i)  A local organizing committee, endorsing municipality,
  or endorsing county shall provide information required by the
  department [comptroller] to enable the department [comptroller] to
  fulfill the department's [comptroller's] duties under this section,
  including annual audited statements of any financial records
  required by a site selection organization and data obtained by the
  local organizing committee, an endorsing municipality, or an
  endorsing county relating to attendance at the event, including an
  estimate of the number of people expected to attend the event who
  are not residents of this state, and to the economic impact of the
  event.  A local organizing committee, endorsing municipality, or
  endorsing county must provide an annual audited financial statement
  required by the department [comptroller], if any, not later than
  the end of the fourth month after the date the period covered by the
  financial statement ends.  After the conclusion of an event and on
  the department's [comptroller's] request, a local organizing
  committee, endorsing municipality, or endorsing county must
  provide information relating to the event, such as attendance
  figures, including an estimate of the number of people who are not
  residents of this state who attended the event, financial
  information, or other public information held by the local
  organizing committee, endorsing municipality, or endorsing county
  that the department [comptroller] considers necessary.
         (j)  The department [comptroller] shall provide an estimate
  not later than three months before the date of an event of the total
  amount of tax revenue that would be transferred into or deposited in
  the Events reimbursement [trust] fund under this section in
  connection with that event, if the event were to be held in this
  state at a site selected pursuant to an application by a local
  organizing committee, endorsing municipality, or endorsing county.  
  The department [comptroller] shall provide the estimate on request
  to a local organizing committee, endorsing municipality, or
  endorsing county.  A local organizing committee, endorsing
  municipality, or endorsing county may submit the department's
  [comptroller's] estimate to a site selection organization.
         (k)  The department [comptroller] may make a disbursement
  from the Events reimbursement [trust] fund on the prior approval of
  each contributing endorsing municipality or endorsing county for a
  purpose for which a local organizing committee, an endorsing
  municipality, or an endorsing county or this state is obligated
  under an event support contract, including an obligation to pay
  costs incurred in the conduct of the event and costs incurred in
  making preparations necessary for the event.  If an obligation is
  incurred under an event support contract to make a structural
  improvement to the site or to add a fixture to the site for purposes
  of an event and that improvement or fixture is expected to derive
  most of its value in subsequent uses of the site for future events,
  a disbursement from the [trust] fund made for purposes of that
  obligation is limited to five percent of the cost of the improvement
  or fixture and the remainder of the obligation is not eligible for a
  disbursement from the [trust] fund, unless the improvement or
  fixture is for a publicly owned facility.  In considering whether to
  make a disbursement from the [trust] fund, the department
  [comptroller] may not consider a contingency clause in an event
  support contract as relieving a local organizing committee's,
  endorsing municipality's, or endorsing county's obligation to pay a
  cost under the contract.
         (k-1)  A disbursement may not be made from the [trust] fund
  that the department [comptroller] determines would be used for the
  purpose of:
               (1)  soliciting the relocation of a professional sports
  franchise located in this state;
               (2)  constructing an arena, stadium, or convention
  center; or
               (3)  conducting usual and customary maintenance of a
  facility.
         (k-2)  Subsection (k-1) of this section does not prohibit:
               (1)  a disbursement from the [trust] fund for the
  construction of temporary structures within an arena, stadium, or
  convention, if those temporary structures are necessary for the
  conduct of the event; or
               (2)  temporary maintenance of a facility that is
  necessary for the preparation for or conduct of the event.
         (l)  If a disbursement is made from the Events reimbursement
  [trust] fund under Subsection (k) of this section, the obligation
  shall be satisfied proportionately from the state and local revenue
  in the [trust] fund.
         (m)  On payment of all state, municipal, or county
  obligations under an event support contract related to the location
  of any particular event in this state, the department [comptroller]
  shall remit to each endorsing entity, in proportion to the amount
  contributed by the entity, any money remaining in the Events
  reimbursement [trust] fund.
         (o)  The department [comptroller] may not undertake any of
  the responsibilities or duties set forth in this section unless a
  request is submitted by the municipality or the county in which the
  event will be located.  The request must be accompanied by
  documentation from a site selection organization selecting the site
  for the event.
         (p)  The department [comptroller] may adopt rules necessary
  to implement this section.
         (q)  In determining the amount of state revenue available
  under Subsection (b)(1) of this section, the department
  [comptroller] may consider whether:
               (1)  the event has been held in this state on previous
  occasions; and
               (2)  changes to the character of the event could affect
  the incremental increase in receipts collected and remitted to the
  state by an endorsing county or endorsing municipality under that
  subsection.
         (r)  The department [comptroller] may adopt a model event
  support contract and make the contract available on the
  department's [comptroller's] Internet website.  The adoption by
  the department [comptroller] of a model event support contract
  under this subsection does not require use of the model event
  support contract for purposes of this section.
         (t)  After the conclusion of an event, the department
  [comptroller] shall compare information on the actual attendance
  figures provided to the department [comptroller] under Subsection
  (i) of this section with the estimated attendance numbers used to
  determine the incremental increase in tax receipts under Subsection
  (b) of this section.  If the actual attendance figures are
  significantly lower than the estimated attendance numbers, the
  department [comptroller] may reduce the amount of a disbursement
  for an endorsing entity under the Events reimbursement [trust] fund
  in proportion to the discrepancy between the actual and estimated
  attendance and in proportion to the amount contributed to the fund
  by the entity.  The department [comptroller] by rule shall define
  "significantly lower" for purposes of this subsection and provide
  the manner in which a disbursement may be proportionately reduced.  
  This subsection does not affect the remittance of any money
  remaining in the fund in accordance with Subsection (m) of this
  section.
         SECTION 13.  Sections 6(a) and (b), Chapter 1507 (S.B. 456),
  Acts of the 76th Legislature, Regular Session, 1999 (Article
  5190.14, Vernon's Texas Civil Statutes), are amended to read as
  follows:
         (a)  Except as provided by Subsections (b) and (d) of this
  section, an endorsing municipality or endorsing county must hold an
  election in the municipality or county to determine whether the
  municipality or county may contribute a portion of its sales and use
  taxes to the Olympic Games reimbursement [trust] fund under Section
  5 of this Act.  The election must be held on a uniform election date
  before the date a site selection organization requires the
  endorsing municipality or endorsing county and the state to enter
  into a joinder undertaking relating to the applicable games.
         (b)  If an endorsing municipality or endorsing county is
  required to hold an election under this section and the
  contribution of a portion of the municipality's or county's sales
  and use taxes to the Olympic Games reimbursement [trust] fund under
  Section 5 of this Act is not approved by a majority of the voters
  voting in the election:
               (1)  the comptroller may not establish the Olympic
  Games reimbursement [trust] fund under Section 5 of this Act, may
  not retain the municipality's or county's tax revenue under Section
  5(d) of this Act from amounts otherwise required to be sent to that
  municipality or county, and may not transfer [deposit] any state
  tax revenue into the [trust] fund;
               (2)  the department [comptroller] is not required to
  determine the incremental increase in state, county, or municipal
  tax revenue under Section 5(b) of this Act; and
               (3)  the department may not enter into a games support
  contract relating to the games for which the municipality or county
  has authorized a bid on its behalf.
         SECTION 14.  Section 7(f), Chapter 1507 (S.B. 456), Acts of
  the 76th Legislature, Regular Session, 1999 (Article 5190.14,
  Vernon's Texas Civil Statutes), is amended to read as follows:
         (f)  The department may agree to execute a joinder
  undertaking, a joinder agreement, or other games support contract
  only if:
               (1)  the department determines that:
                     (A)  the state's assurances and obligations under
  the undertaking, agreement, or contract are reasonable; and
                     (B)  any financial commitments of the state will
  be satisfied exclusively by recourse to the Pan American Games
  reimbursement [trust] fund or the Olympic Games reimbursement
  [trust] fund, as applicable; and
               (2)  the endorsing municipality or endorsing county has
  executed an agreement with a site selection organization that
  contains substantially similar terms.
         SECTION 15.  The following laws are repealed:
               (1)  Section 5C(s), Chapter 1507 (S.B. 456), Acts of
  the 76th Legislature, Regular Session, 1999 (Article 5190.14,
  Vernon's Texas Civil Statutes); and
               (2)  Chapter 398, Local Government Code.
         SECTION 16.  As soon as is practicable after the effective
  date of this Act, but not later than September 10, 2015, the office
  of the governor and the comptroller of public accounts shall
  develop and adopt a memorandum of understanding that:
               (1)  identifies in detail the applicable powers and
  duties of the comptroller that are being transferred to the office
  of the governor as a result of this Act; and
               (2)  establishes a plan for the identification and
  transfer of records, property, and unspent appropriations of the
  comptroller that are used for purposes of managing the funds
  transferred to the office of the governor.
         SECTION 17.  (a)  Not later than September 10, 2015:
               (1)  the administration of the Pan American Games
  reimbursement fund, Olympic Games reimbursement fund, Major Events
  reimbursement fund, Motor Sports Racing reimbursement fund, and
  Events reimbursement fund for sporting and non-sporting events
  shall be transferred from the comptroller of public accounts to the
  Texas Economic Development and Tourism Office;
               (2)  all rules, forms, policies, procedures, or
  decisions of the comptroller that are related to the Pan American
  Games reimbursement fund, Olympic Games reimbursement fund, Major
  Events reimbursement fund, Motor Sports Racing reimbursement fund,
  and Events reimbursement fund for sporting and non-sporting events
  are continued in effect as rules, forms, policies, procedures, or
  decisions of the Economic Development and Tourism Division, Office
  of the Governor, until superseded by a rule or other appropriate act
  of the Texas Economic Development and Tourism Office; and
               (3)  a reference in law or administrative rule to the
  comptroller relating to the decisions for and administration of the
  Pan American Games reimbursement fund, Olympic Games reimbursement
  fund, Major Events reimbursement fund, Motor Sports Racing
  reimbursement fund, and Events reimbursement fund for sporting and
  non-sporting events, other than a duty typically performed by the
  comptroller related to a state fund, means the Texas Economic
  Development and Tourism Office.
         (b)  Before the transfer of the administration of the Pan
  American Games reimbursement fund, Olympic Games reimbursement
  fund, Major Events reimbursement fund, Motor Sports Racing
  reimbursement fund, and Events reimbursement fund for sporting and
  non-sporting events, the comptroller 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 16 of this Act, to ensure a smooth transition.
         SECTION 18.  Notwithstanding the repeal by this Act of
  Chapter 398, Local Government Code, a special event plan approved
  under former Chapter 398 of that code before September 1, 2015, is
  governed by the law as it existed immediately before the effective
  date of this Act, and that law is continued in effect for that
  purpose.
         SECTION 19.  This Act takes effect September 1, 2015.
 
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