State Codes and Statutes

VERNON'S CIVIL STATUTES

TITLE 83. LABOR

CHAPTER 10. ECONOMIC DEVELOPMENT

Art. 5190.14. PAN AMERICAN GAMES; OLYMPIC GAMES.

Definitions

Sec. 1. In this Act:

(1) "Department" means the Economic Development and Tourism

Division, Office of the Governor.

(1-a) "Endorsing county" means an endorsing county for purposes

of Section 5, 5A, 5B, or 5C of this Act.

(2) "Endorsing municipality" means an endorsing municipality for

purposes of Section 4, 5, 5A, 5B, or 5C of this Act.

(2-a) "Event" means a game or event as defined by Section 5A,

5B, or 5C of this Act.

Text of subd. (3) as amended by Acts 2003, 78th Leg., ch. 579,

Sec. 1

(3) "Games" means the 2011 Pan American Games or the 2012 Olympic

Games.

Text of subd. (3) as amended by Acts 2003, 78th Leg., ch. 814,

Sec. 5.01

(3) "Games" means the Pan American Games, the Olympic Games, the

Super Bowl, the National Collegiate Athletic Association Final

Four, the National Basketball Association All-Star Game, the

National Hockey League All-Star Game, the Major League Baseball

All-Star Game, the National Collegiate Athletic Association Bowl

Championship Series Games, the World Cup Soccer Games, or the

World Games. The term includes the events and activities related

to the games.

(4) "Games support contract" means a joinder undertaking, a

joinder agreement, or a similar contract executed by the

department and containing terms permitted or required by this

Act.

(5) "Joinder agreement" means an agreement entered into by:

(A) the department on behalf of this state and a site selection

organization setting out representations and assurances by the

state in connection with the selection of a site in this state

for the location of a game or event; or

(B) a local organizing committee, an endorsing municipality, an

endorsing county, or more than one local organizing committee,

endorsing municipality, or endorsing county acting collectively,

and a site selection organization setting out representations and

assurances by each local organizing committee, endorsing

municipality, or endorsing county in connection with the

selection of a site in this state for the location of a game or

event.

(6) "Joinder undertaking" means an agreement entered into by:

(A) the department on behalf of this state and a site selection

organization that the state will execute a joinder agreement if

the site selection organization selects a site in this state for

a game or event; or

(B) a local organizing committee, an endorsing municipality, an

endorsing county, or more than one local organizing committee,

endorsing municipality, or endorsing county acting collectively,

and a site selection organization that each local organizing

committee, endorsing municipality, or endorsing county will

execute a joinder agreement if the site selection organization

selects a site in this state for a game or event.

(7) "Local organizing committee" means a nonprofit corporation

or its successor in interest that:

(A) has been authorized by an endorsing municipality, endorsing

county, or more than one endorsing municipality or county acting

collectively to pursue an application and bid on the applicant's

behalf to a site selection organization for selection as the site

of a game or event; or

(B) with the authorization of an endorsing municipality,

endorsing county, or more than one endorsing municipality or

county acting collectively, has executed an agreement with a site

selection organization regarding a bid to host a game or event.

(8) "Site selection organization" means a site selection

organization as defined by Sections 5, 5A, and 5C of this Act.

Sec. 2. PURPOSE. The purpose of this Act is to provide

assurances required by a site selection organization sponsoring a

sporting or non-sporting game or event and to provide financing

for the costs of:

(1) applying or bidding for selection as the site of a game or

event in this state;

(2) making the preparations necessary and desirable for the

conduct of a game or event in this state, including the

construction or renovation of facilities to the extent authorized

by this Act; and

(3) conducting a game or event in this state.

Sec. 3. LEGISLATIVE FINDINGS. The conduct in this state of one

or more games or events will:

(1) provide invaluable public visibility throughout the nation

or world for this state and the communities where the games or

events are held;

(2) encourage and provide major economic benefits to the

communities where the games or events are held and to the entire

state; and

(3) provide opportunities for the creation of jobs by local and

Texas businesses that pay a living wage.

Guarantee of State and Municipal Obligations; Pan American Games

Trust Fund

Sec. 4. (a) In this section:

Text of subd. (1) as amended by Acts 2003, 78th Leg., ch. 579,

Sec. 3

(1) "Games" means the 2011 Pan American Games.

Text of subd. (1) as amended by Acts 2003, 78th Leg., ch. 814,

Sec. 5.03

(1) "Games" means the Pan American Games.

(2) "Site selection organization" means the United States Olympic

Committee or the Pan American Sports Organization.

(3) "Endorsing municipality" means a municipality that has a

population of 850,000 or more and that authorizes a bid by a

local organizing committee for selection of the municipality as

the site of the games.

(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 comptroller, but in no event later than one year before

the scheduled opening event of the games, the comptroller shall

determine for each subsequent calendar quarter, in accordance

with procedures developed by the 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 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 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 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

comptroller shall designate as a market area for the games each

area in which the 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 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 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 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 deposited in the trust fund

under Subsection (m) of this section.

(e) In addition to municipal sales and use tax revenue retained

under Subsection (d) of this section, an endorsing municipality

may guarantee its obligations under a games support contract and

this Act by pledging surcharges from user fees, including parking

or ticket fees, charged in connection with presentation of the

games.

(f) Subject to Subsection (m) of this section, the comptroller

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, 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 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

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 shall 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 depositing into the trust fund any state tax revenue

determined 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 deposited in the

trust fund under Subsection (m) of this section.

(g) The department may use the funds in the Pan American Games

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 comptroller to enable the comptroller to fulfill

the 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 comptroller not later than the end of the fourth

month after the date the period covered by the financial

statement ends.

Text of subsec. (i) as amended by Acts 2003, 78th Leg., ch. 579,

Sec. 4

(i) The comptroller shall provide an estimate not later than

December 1, 2003, of the total amount of state and municipal tax

revenue that would be deposited in the Pan American Games trust

fund before January 1, 2012, if the games were to be held in this

state at a site selected pursuant to an application by a local

organizing committee. The comptroller shall provide the estimate

on request to a local organizing committee. A local organizing

committee may submit the comptroller's estimate to a site

selection organization.

Text of subsec. (i) as amended by Acts 2003, 78th Leg., ch. 814,

Sec. 5.03

(i) The comptroller shall provide an estimate not later than

September 1 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 deposited in the

Pan American Games trust fund before January 1 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 comptroller

shall provide the estimate on request to a local organizing

committee. A local organizing committee may submit the

comptroller's estimate to a site selection organization.

(j) The department may not make a disbursement from the Pan

American Games trust fund unless the 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 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 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.

Text of subsec. (l) as amended by Acts 2003, 78th Leg., ch. 579,

Sec. 4

(l) On January 1, 2013, the comptroller 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.

Text of subsec. (l) as amended by Acts 2003, 78th Leg., ch. 814,

Sec. 5.03

(l) On January 1 of the second year following the year in which

the games are held in this state, the comptroller 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.

(m) In no event may:

(1) the total amount of state and municipal tax revenue 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 deposited in the Pan American

Games trust fund and interest earned on the fund.

Guarantee of State and Municipal Obligations; Olympic Games Trust

Fund

Sec. 5. (a) In this section:

(1) "Games" means the Olympic Games.

(2) "Site selection organization" means the United States Olympic

Committee or the International Olympic Committee.

(3) "Endorsing county" means a county in which there is located

all or part of a municipality that has a population of 850,000 or

more, or a county adjacent to such a county.

(4) "Endorsing municipality" has the meaning assigned by Section

4 of this Act.

(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 comptroller, but in no event later

than one year before the scheduled opening event of the games,

the comptroller shall determine for each subsequent calendar

quarter, in accordance with procedures developed by the

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 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

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 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 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 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

comptroller shall designate as a market area for the games each

area in which the 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 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 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

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 deposited in the trust fund under Subsection (m) of

this section.

(e) In addition to sales and use tax revenue and mixed beverage

tax revenue retained under Subsection (d) of this section and

hotel occupancy tax revenue retained under Subsection (f) of this

section, an endorsing municipality or endorsing county may

guarantee its obligations under a games support contract and this

Act by pledging surcharges from user fees, including parking or

ticket fees, charged in connection with presentation of the

games.

(f) Subject to Subsection (m) of this section, each endorsing

municipality or endorsing county shall remit to the comptroller

and the comptroller 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 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 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, the state tax

revenue determined 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 deposit of the amount of

state tax revenue determined 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 deposited in the

trust fund under Subsection (m) of this section.

(g) The department may use the funds in the Olympic Games 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 comptroller to enable the comptroller to fulfill

the 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 comptroller not later than the end of the fourth

month after the date the period covered by the financial

statement ends.

(i) The 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 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

comptroller shall provide the estimate on request to a local

organizing committee. A local organizing committee may submit the

comptroller's estimate to a site selection organization.

(j) The department may not make a disbursement from the Olympic

Games trust fund unless the 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 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

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 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

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 deposited in the Olympic Games

trust fund and interest earned on the fund.

Sec. 5A. PAYMENT OF STATE AND MUNICIPAL OR COUNTY OBLIGATIONS;

MAJOR EVENTS TRUST FUND. (a) In this section:

(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 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 comptroller; and

(iii) is a party to an event support contract.

(3) "Event support contract" means a joinder undertaking,

joinder agreement, or a similar contract executed by a local

organizing committee, an endorsing municipality, or an endorsing

county and a site selection organization.

(4) "Event" means a Super Bowl, a National Collegiate Athletic

Association Final Four tournament game, the National Basketball

Association All-Star Game, the National Hockey League All-Star

Game, the Major League Baseball All-Star Game, a National

Collegiate Athletic Association Bowl Championship Series game, a

World Cup Soccer game, the World Games, a national collegiate

championship of an amateur sport sanctioned by the national

governing body of the sport that is recognized by the United

States Olympic Committee, an Olympic activity, including a Junior

or Senior activity, training program, or feeder program

sanctioned by the United States Olympic Committee's Community

Olympic Development Program, the Breeders' Cup World

Championships, or a Formula One automobile race. The term

includes any activities related to or associated with an event.

(5) "Site selection organization" means the National Football

League, the National Collegiate Athletic Association, the

National Basketball Association, the National Hockey League,

Major League Baseball, the Federation Internationale de Football

Association (FIFA), the International World Games Association,

the United States Olympic Committee or 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.

(a-1) An event included in Subsection (a)(4) of this section is

eligible for funding under this section only if:

(1) a site selection organization selects a site located in this

state for the event 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 the sole site for the event; and

(3) the event is held not more than one time in any year.

(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 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 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 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 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

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 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 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 comptroller not earlier than one

year and not later than three months before the date the event

begins. The comptroller shall base the determination specified

by Subsection (b) of this section on information submitted by the

local organizing committee, endorsing municipality, or endorsing

county, and must make the determination not later than the 30th

day after the date the comptroller receives the request and

related information.

(c) For the purposes of Subsection (b)(1) of this section, the

comptroller shall designate as a market area for the event each

area in which the 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

comptroller. The 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 and designated as the Major

Events trust fund the amount of the municipality's or county's

hotel occupancy tax revenue determined 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 shall

retain 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 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 comptroller and shall discontinue

retaining the local tax revenues under this subsection when the

amount of the applicable tax revenue determined under Subsection

(b)(2) or (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 comptroller

without appropriation only as provided by this section.

(d-1) Not later than the 90th day after the last day of an event

and in lieu of the local tax revenues remitted to or retained by

the comptroller under Subsection (d) of this section, a

municipality or county may remit to the comptroller for deposit

in the Major Events trust fund other local funds in an amount

equal to the total amount of local tax revenue determined under

Subsections (b)(2) through (5) of this section. The amount

deposited by the comptroller into the 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 comptroller

surcharges and user fees attributable to the event for deposit

into the Major Events trust fund.

(f) The comptroller shall deposit into the Major Events trust

fund a portion of the state tax revenue not to exceed the amount

determined under Subsection (b)(1) of this section in an amount

equal to 6.25 times the amount of the local 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 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 funds in the Major Events trust fund may be used to pay

the principal of and interest on notes issued by an endorsing

municipality or endorsing county under Subsection (g) of this

section and to fulfill obligations of the state or an endorsing

municipality or endorsing county to a site selection organization

under a game support contract or event support contract, which

obligations may include the payment of costs relating to the

preparations necessary or desirable for the conduct of the event

and the payment of costs of conducting the event, including

improvements or renovations to existing facilities or other

facilities and costs of acquisition or construction of new

facilities or other facilities.

(i) A local organizing committee, endorsing municipality, or

endorsing county shall provide information required by the

comptroller to enable the comptroller to fulfill the

comptroller's duties under this section, including annual audited

statements of any financial records required by a site selection

organization and data obtained by the local organizing committee,

an endorsing municipality, or an endorsing county relating to

attendance at the event and to the economic impact of the event.

A local organizing committee, endorsing municipality, or

endorsing county must provide an annual audited financial

statement required by the comptroller, if any, not later than the

end of the fourth month after the date the period covered by the

financial statement ends. After the conclusion of an event and

on the comptroller's request, a local organizing committee,

endorsing municipality, or endorsing county must provide

information relating to the event, such as attendance figures,

financial information, or other public information held by the

local organizing committee, endorsing municipality, or endorsing

county that the 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 comptroller under Subsection (b-1) of

this section, the 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 comptroller's estimate to a site selection

organization.

(k) The comptroller may make a disbursement from the Major

Events trust fund on the prior approval of each contributing

endorsing municipality or endorsing county for a purpose for

which a local organizing committee, an endorsing municipality, or

an endorsing county or the state is obligated under a game

support contract or event support contract. A disbursement may

not be made from the trust fund that the comptroller determines

would be used for the purpose of soliciting the relocation of a

professional sports franchise located in this state.

(l) If a disbursement is made from the Major Events trust fund

under Subsection (k), 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

comptroller shall remit to each endorsing entity, in proportion

to the amount contributed by the entity, any money remaining in

the trust fund.

(n) Repealed by Acts 2009, 81st Leg., R.S., Ch. 810, Sec. 8,

eff. September 1, 2009.

(o) This section may not be construed as creating or requiring a

state guarantee of obligations imposed on the state or an

endorsing municipality or endorsing county under an event support

contract or other agreement relating to hosting one or more

events in this state.

(p) The 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.

(q) Repealed by Acts 2005, 79th Leg., Ch. 150, Sec. 1, eff.

September 1, 2005.

(r) This subsection applies only to an event that the

comptroller determines under Subsection (b) of this section will

generate at least $15 million in state and local tax revenue.

The comptroller and one or more endorsing municipalities or

endorsing counties may enter into an agreement to provide that an

amount equal to the amount of local tax revenue determined by the

comptroller under Subsections (b)(2) through (5) of this section

shall be remitted to the comptroller by one or more endorsing

municipalities or endorsing counties and shall be deposited by

the comptroller into the Major Events trust fund before the

event. In the 12 months immediately preceding the event, the

comptroller may deposit into the trust fund an amount equal to

the amount the state is required to deposit under Subsection (f)

of this section from any amounts appropriated by the legislature

for the purposes of this subsection. The comptroller may make

disbursements from the trust fund in amounts that do not exceed

the amounts deposited under this subsection in accordance with

the agreement to pay costs relating to attracting and securing

the event. An agreement under this subsection may provide that,

following the last day of an event, the funds eligible for

disbursement under Subsection (k) of this section be held in the

trust fund and made available to pay the cost of securing the

event in future years.

(s) The term of an agreement entered into under Subsection (r)

of this section may not exceed 10 years and must terminate:

(1) on the final termination date provided in the agreement; or

(2) if the event covered by the agreement is not held during any

18-month period covered by the agreement.

(t) On termination of an agreement entered into under Subsection

(r) of this section, the total amount of the state's initial

contribution under the agreement must be repaid to the state from

funds disbursed under Subsection (k) of this section or from any

other source specified in the agreement. An agreement entered

into under Subsection (r) of this section must include terms that

the comptroller determines are necessary to protect the state's

interest, including a provision for a performance bond or other

guarantee of repayment if the event is not held in the state

after a disbursement has been made.

(u) The comptroller shall deposit any amount appropriated by the

legislature for the purposes of Subsection (r) of this section

into the Major Event trust fund for the limited purpose of paying

the costs of attracting and securing an event eligible under that

subsection.

(v) The comptroller may adopt rules necessary to implement this

section.

Sec. 5B. GUARANTEE OF STATE AND MUNICIPAL OR COUNTY OBLIGATIONS;

MOTOR SPORTS RACING TRUST FUND. (a) In this section:

(1) "Endorsing county" means a county that contains a site

selected by a site selection organization for one or more motor

sports racing events.

(2) "Endorsing municipality" means a municipality that contains

a site selected by a site selection organization for one or more

motor sports racing events.

(3) "Event support contract" means a joinder undertaking,

joinder agreement, or similar contract executed by an endorsing

municipality or endorsing county and a site selection

organization.

(4) "Motor sports racing event" means a specific automobile

racing event sanctioned by the Automobile Competition Committee

for the United States (ACCUS) and held at a temporary event

venue. The term includes any events and activities held,

sponsored, or endorsed by the site selection organization in

conjunction with the racing event.

(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 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 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 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 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

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 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 comptroller, to the

preparation for and presentation of the racing event.

(c) For the purposes of Subsection (b)(1) of this section, the

comptroller shall designate as a market area for the motor sports

racing event each area in which the 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 comptroller. The 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 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 under Subsection (b)(4) or (5) of this section, less

any amount of the revenue that the municipality or county

determines is necessary to meet the obligations of the

municipality or county. The comptroller shall retain the amount

of sales and use tax revenue and mixed beverage tax revenue

determined under Subsection (b)(2) or (3) of this section from

the amounts otherwise required to be sent to the municipality

under Sections 321.502 and 183.051(b), Tax Code, or to the county

under Sections 323.502 and 183.051(b), Tax Code, and deposit into

the trust fund the tax revenues, less any amount of the revenue

that the municipality or county determines is necessary to meet

the obligations of the municipality or county. The comptroller

shall begin retaining and depositing the local tax revenues with

the first distribution of that tax revenue that occurs after the

first day of the 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 comptroller without

appropriation only as provided by this section.

(e) In addition to the tax revenue deposited in the Motor Sports

Racing 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 shall deposit 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 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 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.

(h) The funds in the Motor Sports Racing 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

comptroller to enable the comptroller to fulfill the

comptroller's duties under this section, including annual audited

statements of any financial records required by a site selection

organization and data obtained by the local organizing committee,

an endorsing municipality, or an endorsing county relating to

attendance at the 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 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 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 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 comptroller shall provide the estimate on request to

a local organizing committee, endorsing municipality, or

endorsing county. A local organizing committee, endorsing

municipality, or endorsing county may submit the comptroller's

estimate to a site selection organization.

(k) The comptroller may make a disbursement from the 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 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 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 comptroller shall remit to each endorsing

entity, in proportion to the amount contributed by the entity,

any money remaining in the trust fund.

(n) This section may not be construed as creating or requiring a

state guarantee of obligations imposed on the state or an

endorsing municipality or endorsing county under a motor sports

racing event support contract or other agreement relating to

hosting one or more racing events in this state.

(o) The 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.

(p) Any provision of this Act applicable to games as defined by

Section 1(3) of this Act also applies to a motor sports racing

event as defined in this section.

Sec. 5C. EVENTS TRUST FUND FOR CERTAIN MUNICIPALITIES AND

COUNTIES.

(a) In this section:

(1) "Endorsing county" means a county that contains a site

selected by a site selection organization for one or more events.

(2) "Endorsing municipality" means a municipality that contains

a site selected by a site selection organization for one or more

events.

(3) "Event" means an event or a related series of events held in

this state for which a local organizing committee, endorsing

county, or endorsing municipality seeks approval from a site

selection organization to hold the event at a site in this state.

The term includes any activities related to or associated with

the event.

(4) "Event support contract" means a joinder undertaking, a

joinder agreement, or a similar contract executed by a local

organizing committee, an endorsing municipality, or an endorsing

county and a site selection organization.

(5) "Site selection organization" means an entity that conducts

or considers conducting an eligible event in this state.

(a-1) An event is eligible for funding under this section only

if:

(1) a site selection organization selects a site for the event

located in this state after considering, through a highly

competitive selection process, one or more sites that are not

located in this state;

(2) a site selection organization selects a site in this state

as:

(A) the sole site for the event; or

(B) the sole site for the event in a region composed of this

state and one or more adjoining states; and

(3) the event is held not more than one time in this state or an

adjoining state in any year.

(b) 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 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 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 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 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

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 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

State Codes and Statutes

VERNON'S CIVIL STATUTES

TITLE 83. LABOR

CHAPTER 10. ECONOMIC DEVELOPMENT

Art. 5190.14. PAN AMERICAN GAMES; OLYMPIC GAMES.

Definitions

Sec. 1. In this Act:

(1) "Department" means the Economic Development and Tourism

Division, Office of the Governor.

(1-a) "Endorsing county" means an endorsing county for purposes

of Section 5, 5A, 5B, or 5C of this Act.

(2) "Endorsing municipality" means an endorsing municipality for

purposes of Section 4, 5, 5A, 5B, or 5C of this Act.

(2-a) "Event" means a game or event as defined by Section 5A,

5B, or 5C of this Act.

Text of subd. (3) as amended by Acts 2003, 78th Leg., ch. 579,

Sec. 1

(3) "Games" means the 2011 Pan American Games or the 2012 Olympic

Games.

Text of subd. (3) as amended by Acts 2003, 78th Leg., ch. 814,

Sec. 5.01

(3) "Games" means the Pan American Games, the Olympic Games, the

Super Bowl, the National Collegiate Athletic Association Final

Four, the National Basketball Association All-Star Game, the

National Hockey League All-Star Game, the Major League Baseball

All-Star Game, the National Collegiate Athletic Association Bowl

Championship Series Games, the World Cup Soccer Games, or the

World Games. The term includes the events and activities related

to the games.

(4) "Games support contract" means a joinder undertaking, a

joinder agreement, or a similar contract executed by the

department and containing terms permitted or required by this

Act.

(5) "Joinder agreement" means an agreement entered into by:

(A) the department on behalf of this state and a site selection

organization setting out representations and assurances by the

state in connection with the selection of a site in this state

for the location of a game or event; or

(B) a local organizing committee, an endorsing municipality, an

endorsing county, or more than one local organizing committee,

endorsing municipality, or endorsing county acting collectively,

and a site selection organization setting out representations and

assurances by each local organizing committee, endorsing

municipality, or endorsing county in connection with the

selection of a site in this state for the location of a game or

event.

(6) "Joinder undertaking" means an agreement entered into by:

(A) the department on behalf of this state and a site selection

organization that the state will execute a joinder agreement if

the site selection organization selects a site in this state for

a game or event; or

(B) a local organizing committee, an endorsing municipality, an

endorsing county, or more than one local organizing committee,

endorsing municipality, or endorsing county acting collectively,

and a site selection organization that each local organizing

committee, endorsing municipality, or endorsing county will

execute a joinder agreement if the site selection organization

selects a site in this state for a game or event.

(7) "Local organizing committee" means a nonprofit corporation

or its successor in interest that:

(A) has been authorized by an endorsing municipality, endorsing

county, or more than one endorsing municipality or county acting

collectively to pursue an application and bid on the applicant's

behalf to a site selection organization for selection as the site

of a game or event; or

(B) with the authorization of an endorsing municipality,

endorsing county, or more than one endorsing municipality or

county acting collectively, has executed an agreement with a site

selection organization regarding a bid to host a game or event.

(8) "Site selection organization" means a site selection

organization as defined by Sections 5, 5A, and 5C of this Act.

Sec. 2. PURPOSE. The purpose of this Act is to provide

assurances required by a site selection organization sponsoring a

sporting or non-sporting game or event and to provide financing

for the costs of:

(1) applying or bidding for selection as the site of a game or

event in this state;

(2) making the preparations necessary and desirable for the

conduct of a game or event in this state, including the

construction or renovation of facilities to the extent authorized

by this Act; and

(3) conducting a game or event in this state.

Sec. 3. LEGISLATIVE FINDINGS. The conduct in this state of one

or more games or events will:

(1) provide invaluable public visibility throughout the nation

or world for this state and the communities where the games or

events are held;

(2) encourage and provide major economic benefits to the

communities where the games or events are held and to the entire

state; and

(3) provide opportunities for the creation of jobs by local and

Texas businesses that pay a living wage.

Guarantee of State and Municipal Obligations; Pan American Games

Trust Fund

Sec. 4. (a) In this section:

Text of subd. (1) as amended by Acts 2003, 78th Leg., ch. 579,

Sec. 3

(1) "Games" means the 2011 Pan American Games.

Text of subd. (1) as amended by Acts 2003, 78th Leg., ch. 814,

Sec. 5.03

(1) "Games" means the Pan American Games.

(2) "Site selection organization" means the United States Olympic

Committee or the Pan American Sports Organization.

(3) "Endorsing municipality" means a municipality that has a

population of 850,000 or more and that authorizes a bid by a

local organizing committee for selection of the municipality as

the site of the games.

(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 comptroller, but in no event later than one year before

the scheduled opening event of the games, the comptroller shall

determine for each subsequent calendar quarter, in accordance

with procedures developed by the 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 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 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 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

comptroller shall designate as a market area for the games each

area in which the 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 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 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 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 deposited in the trust fund

under Subsection (m) of this section.

(e) In addition to municipal sales and use tax revenue retained

under Subsection (d) of this section, an endorsing municipality

may guarantee its obligations under a games support contract and

this Act by pledging surcharges from user fees, including parking

or ticket fees, charged in connection with presentation of the

games.

(f) Subject to Subsection (m) of this section, the comptroller

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, 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 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

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 shall 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 depositing into the trust fund any state tax revenue

determined 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 deposited in the

trust fund under Subsection (m) of this section.

(g) The department may use the funds in the Pan American Games

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 comptroller to enable the comptroller to fulfill

the 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 comptroller not later than the end of the fourth

month after the date the period covered by the financial

statement ends.

Text of subsec. (i) as amended by Acts 2003, 78th Leg., ch. 579,

Sec. 4

(i) The comptroller shall provide an estimate not later than

December 1, 2003, of the total amount of state and municipal tax

revenue that would be deposited in the Pan American Games trust

fund before January 1, 2012, if the games were to be held in this

state at a site selected pursuant to an application by a local

organizing committee. The comptroller shall provide the estimate

on request to a local organizing committee. A local organizing

committee may submit the comptroller's estimate to a site

selection organization.

Text of subsec. (i) as amended by Acts 2003, 78th Leg., ch. 814,

Sec. 5.03

(i) The comptroller shall provide an estimate not later than

September 1 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 deposited in the

Pan American Games trust fund before January 1 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 comptroller

shall provide the estimate on request to a local organizing

committee. A local organizing committee may submit the

comptroller's estimate to a site selection organization.

(j) The department may not make a disbursement from the Pan

American Games trust fund unless the 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 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 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.

Text of subsec. (l) as amended by Acts 2003, 78th Leg., ch. 579,

Sec. 4

(l) On January 1, 2013, the comptroller 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.

Text of subsec. (l) as amended by Acts 2003, 78th Leg., ch. 814,

Sec. 5.03

(l) On January 1 of the second year following the year in which

the games are held in this state, the comptroller 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.

(m) In no event may:

(1) the total amount of state and municipal tax revenue 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 deposited in the Pan American

Games trust fund and interest earned on the fund.

Guarantee of State and Municipal Obligations; Olympic Games Trust

Fund

Sec. 5. (a) In this section:

(1) "Games" means the Olympic Games.

(2) "Site selection organization" means the United States Olympic

Committee or the International Olympic Committee.

(3) "Endorsing county" means a county in which there is located

all or part of a municipality that has a population of 850,000 or

more, or a county adjacent to such a county.

(4) "Endorsing municipality" has the meaning assigned by Section

4 of this Act.

(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 comptroller, but in no event later

than one year before the scheduled opening event of the games,

the comptroller shall determine for each subsequent calendar

quarter, in accordance with procedures developed by the

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 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

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 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 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 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

comptroller shall designate as a market area for the games each

area in which the 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 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 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

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 deposited in the trust fund under Subsection (m) of

this section.

(e) In addition to sales and use tax revenue and mixed beverage

tax revenue retained under Subsection (d) of this section and

hotel occupancy tax revenue retained under Subsection (f) of this

section, an endorsing municipality or endorsing county may

guarantee its obligations under a games support contract and this

Act by pledging surcharges from user fees, including parking or

ticket fees, charged in connection with presentation of the

games.

(f) Subject to Subsection (m) of this section, each endorsing

municipality or endorsing county shall remit to the comptroller

and the comptroller 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 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 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, the state tax

revenue determined 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 deposit of the amount of

state tax revenue determined 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 deposited in the

trust fund under Subsection (m) of this section.

(g) The department may use the funds in the Olympic Games 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 comptroller to enable the comptroller to fulfill

the 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 comptroller not later than the end of the fourth

month after the date the period covered by the financial

statement ends.

(i) The 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 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

comptroller shall provide the estimate on request to a local

organizing committee. A local organizing committee may submit the

comptroller's estimate to a site selection organization.

(j) The department may not make a disbursement from the Olympic

Games trust fund unless the 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 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

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 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

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 deposited in the Olympic Games

trust fund and interest earned on the fund.

Sec. 5A. PAYMENT OF STATE AND MUNICIPAL OR COUNTY OBLIGATIONS;

MAJOR EVENTS TRUST FUND. (a) In this section:

(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 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 comptroller; and

(iii) is a party to an event support contract.

(3) "Event support contract" means a joinder undertaking,

joinder agreement, or a similar contract executed by a local

organizing committee, an endorsing municipality, or an endorsing

county and a site selection organization.

(4) "Event" means a Super Bowl, a National Collegiate Athletic

Association Final Four tournament game, the National Basketball

Association All-Star Game, the National Hockey League All-Star

Game, the Major League Baseball All-Star Game, a National

Collegiate Athletic Association Bowl Championship Series game, a

World Cup Soccer game, the World Games, a national collegiate

championship of an amateur sport sanctioned by the national

governing body of the sport that is recognized by the United

States Olympic Committee, an Olympic activity, including a Junior

or Senior activity, training program, or feeder program

sanctioned by the United States Olympic Committee's Community

Olympic Development Program, the Breeders' Cup World

Championships, or a Formula One automobile race. The term

includes any activities related to or associated with an event.

(5) "Site selection organization" means the National Football

League, the National Collegiate Athletic Association, the

National Basketball Association, the National Hockey League,

Major League Baseball, the Federation Internationale de Football

Association (FIFA), the International World Games Association,

the United States Olympic Committee or 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.

(a-1) An event included in Subsection (a)(4) of this section is

eligible for funding under this section only if:

(1) a site selection organization selects a site located in this

state for the event 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 the sole site for the event; and

(3) the event is held not more than one time in any year.

(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 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 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 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 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

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 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 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 comptroller not earlier than one

year and not later than three months before the date the event

begins. The comptroller shall base the determination specified

by Subsection (b) of this section on information submitted by the

local organizing committee, endorsing municipality, or endorsing

county, and must make the determination not later than the 30th

day after the date the comptroller receives the request and

related information.

(c) For the purposes of Subsection (b)(1) of this section, the

comptroller shall designate as a market area for the event each

area in which the 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

comptroller. The 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 and designated as the Major

Events trust fund the amount of the municipality's or county's

hotel occupancy tax revenue determined 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 shall

retain 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 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 comptroller and shall discontinue

retaining the local tax revenues under this subsection when the

amount of the applicable tax revenue determined under Subsection

(b)(2) or (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 comptroller

without appropriation only as provided by this section.

(d-1) Not later than the 90th day after the last day of an event

and in lieu of the local tax revenues remitted to or retained by

the comptroller under Subsection (d) of this section, a

municipality or county may remit to the comptroller for deposit

in the Major Events trust fund other local funds in an amount

equal to the total amount of local tax revenue determined under

Subsections (b)(2) through (5) of this section. The amount

deposited by the comptroller into the 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 comptroller

surcharges and user fees attributable to the event for deposit

into the Major Events trust fund.

(f) The comptroller shall deposit into the Major Events trust

fund a portion of the state tax revenue not to exceed the amount

determined under Subsection (b)(1) of this section in an amount

equal to 6.25 times the amount of the local 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 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 funds in the Major Events trust fund may be used to pay

the principal of and interest on notes issued by an endorsing

municipality or endorsing county under Subsection (g) of this

section and to fulfill obligations of the state or an endorsing

municipality or endorsing county to a site selection organization

under a game support contract or event support contract, which

obligations may include the payment of costs relating to the

preparations necessary or desirable for the conduct of the event

and the payment of costs of conducting the event, including

improvements or renovations to existing facilities or other

facilities and costs of acquisition or construction of new

facilities or other facilities.

(i) A local organizing committee, endorsing municipality, or

endorsing county shall provide information required by the

comptroller to enable the comptroller to fulfill the

comptroller's duties under this section, including annual audited

statements of any financial records required by a site selection

organization and data obtained by the local organizing committee,

an endorsing municipality, or an endorsing county relating to

attendance at the event and to the economic impact of the event.

A local organizing committee, endorsing municipality, or

endorsing county must provide an annual audited financial

statement required by the comptroller, if any, not later than the

end of the fourth month after the date the period covered by the

financial statement ends. After the conclusion of an event and

on the comptroller's request, a local organizing committee,

endorsing municipality, or endorsing county must provide

information relating to the event, such as attendance figures,

financial information, or other public information held by the

local organizing committee, endorsing municipality, or endorsing

county that the 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 comptroller under Subsection (b-1) of

this section, the 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 comptroller's estimate to a site selection

organization.

(k) The comptroller may make a disbursement from the Major

Events trust fund on the prior approval of each contributing

endorsing municipality or endorsing county for a purpose for

which a local organizing committee, an endorsing municipality, or

an endorsing county or the state is obligated under a game

support contract or event support contract. A disbursement may

not be made from the trust fund that the comptroller determines

would be used for the purpose of soliciting the relocation of a

professional sports franchise located in this state.

(l) If a disbursement is made from the Major Events trust fund

under Subsection (k), 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

comptroller shall remit to each endorsing entity, in proportion

to the amount contributed by the entity, any money remaining in

the trust fund.

(n) Repealed by Acts 2009, 81st Leg., R.S., Ch. 810, Sec. 8,

eff. September 1, 2009.

(o) This section may not be construed as creating or requiring a

state guarantee of obligations imposed on the state or an

endorsing municipality or endorsing county under an event support

contract or other agreement relating to hosting one or more

events in this state.

(p) The 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.

(q) Repealed by Acts 2005, 79th Leg., Ch. 150, Sec. 1, eff.

September 1, 2005.

(r) This subsection applies only to an event that the

comptroller determines under Subsection (b) of this section will

generate at least $15 million in state and local tax revenue.

The comptroller and one or more endorsing municipalities or

endorsing counties may enter into an agreement to provide that an

amount equal to the amount of local tax revenue determined by the

comptroller under Subsections (b)(2) through (5) of this section

shall be remitted to the comptroller by one or more endorsing

municipalities or endorsing counties and shall be deposited by

the comptroller into the Major Events trust fund before the

event. In the 12 months immediately preceding the event, the

comptroller may deposit into the trust fund an amount equal to

the amount the state is required to deposit under Subsection (f)

of this section from any amounts appropriated by the legislature

for the purposes of this subsection. The comptroller may make

disbursements from the trust fund in amounts that do not exceed

the amounts deposited under this subsection in accordance with

the agreement to pay costs relating to attracting and securing

the event. An agreement under this subsection may provide that,

following the last day of an event, the funds eligible for

disbursement under Subsection (k) of this section be held in the

trust fund and made available to pay the cost of securing the

event in future years.

(s) The term of an agreement entered into under Subsection (r)

of this section may not exceed 10 years and must terminate:

(1) on the final termination date provided in the agreement; or

(2) if the event covered by the agreement is not held during any

18-month period covered by the agreement.

(t) On termination of an agreement entered into under Subsection

(r) of this section, the total amount of the state's initial

contribution under the agreement must be repaid to the state from

funds disbursed under Subsection (k) of this section or from any

other source specified in the agreement. An agreement entered

into under Subsection (r) of this section must include terms that

the comptroller determines are necessary to protect the state's

interest, including a provision for a performance bond or other

guarantee of repayment if the event is not held in the state

after a disbursement has been made.

(u) The comptroller shall deposit any amount appropriated by the

legislature for the purposes of Subsection (r) of this section

into the Major Event trust fund for the limited purpose of paying

the costs of attracting and securing an event eligible under that

subsection.

(v) The comptroller may adopt rules necessary to implement this

section.

Sec. 5B. GUARANTEE OF STATE AND MUNICIPAL OR COUNTY OBLIGATIONS;

MOTOR SPORTS RACING TRUST FUND. (a) In this section:

(1) "Endorsing county" means a county that contains a site

selected by a site selection organization for one or more motor

sports racing events.

(2) "Endorsing municipality" means a municipality that contains

a site selected by a site selection organization for one or more

motor sports racing events.

(3) "Event support contract" means a joinder undertaking,

joinder agreement, or similar contract executed by an endorsing

municipality or endorsing county and a site selection

organization.

(4) "Motor sports racing event" means a specific automobile

racing event sanctioned by the Automobile Competition Committee

for the United States (ACCUS) and held at a temporary event

venue. The term includes any events and activities held,

sponsored, or endorsed by the site selection organization in

conjunction with the racing event.

(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 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 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 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 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

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 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 comptroller, to the

preparation for and presentation of the racing event.

(c) For the purposes of Subsection (b)(1) of this section, the

comptroller shall designate as a market area for the motor sports

racing event each area in which the 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 comptroller. The 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 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 under Subsection (b)(4) or (5) of this section, less

any amount of the revenue that the municipality or county

determines is necessary to meet the obligations of the

municipality or county. The comptroller shall retain the amount

of sales and use tax revenue and mixed beverage tax revenue

determined under Subsection (b)(2) or (3) of this section from

the amounts otherwise required to be sent to the municipality

under Sections 321.502 and 183.051(b), Tax Code, or to the county

under Sections 323.502 and 183.051(b), Tax Code, and deposit into

the trust fund the tax revenues, less any amount of the revenue

that the municipality or county determines is necessary to meet

the obligations of the municipality or county. The comptroller

shall begin retaining and depositing the local tax revenues with

the first distribution of that tax revenue that occurs after the

first day of the 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 comptroller without

appropriation only as provided by this section.

(e) In addition to the tax revenue deposited in the Motor Sports

Racing 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 shall deposit 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 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 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.

(h) The funds in the Motor Sports Racing 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

comptroller to enable the comptroller to fulfill the

comptroller's duties under this section, including annual audited

statements of any financial records required by a site selection

organization and data obtained by the local organizing committee,

an endorsing municipality, or an endorsing county relating to

attendance at the 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 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 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 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 comptroller shall provide the estimate on request to

a local organizing committee, endorsing municipality, or

endorsing county. A local organizing committee, endorsing

municipality, or endorsing county may submit the comptroller's

estimate to a site selection organization.

(k) The comptroller may make a disbursement from the 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 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 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 comptroller shall remit to each endorsing

entity, in proportion to the amount contributed by the entity,

any money remaining in the trust fund.

(n) This section may not be construed as creating or requiring a

state guarantee of obligations imposed on the state or an

endorsing municipality or endorsing county under a motor sports

racing event support contract or other agreement relating to

hosting one or more racing events in this state.

(o) The 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.

(p) Any provision of this Act applicable to games as defined by

Section 1(3) of this Act also applies to a motor sports racing

event as defined in this section.

Sec. 5C. EVENTS TRUST FUND FOR CERTAIN MUNICIPALITIES AND

COUNTIES.

(a) In this section:

(1) "Endorsing county" means a county that contains a site

selected by a site selection organization for one or more events.

(2) "Endorsing municipality" means a municipality that contains

a site selected by a site selection organization for one or more

events.

(3) "Event" means an event or a related series of events held in

this state for which a local organizing committee, endorsing

county, or endorsing municipality seeks approval from a site

selection organization to hold the event at a site in this state.

The term includes any activities related to or associated with

the event.

(4) "Event support contract" means a joinder undertaking, a

joinder agreement, or a similar contract executed by a local

organizing committee, an endorsing municipality, or an endorsing

county and a site selection organization.

(5) "Site selection organization" means an entity that conducts

or considers conducting an eligible event in this state.

(a-1) An event is eligible for funding under this section only

if:

(1) a site selection organization selects a site for the event

located in this state after considering, through a highly

competitive selection process, one or more sites that are not

located in this state;

(2) a site selection organization selects a site in this state

as:

(A) the sole site for the event; or

(B) the sole site for the event in a region composed of this

state and one or more adjoining states; and

(3) the event is held not more than one time in this state or an

adjoining state in any year.

(b) 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 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 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 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 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

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 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

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Statutes > Texas > Vernon-s-civil-statutes > Title-83-labor > Chapter-10-economic-development

VERNON'S CIVIL STATUTES

TITLE 83. LABOR

CHAPTER 10. ECONOMIC DEVELOPMENT

Art. 5190.14. PAN AMERICAN GAMES; OLYMPIC GAMES.

Definitions

Sec. 1. In this Act:

(1) "Department" means the Economic Development and Tourism

Division, Office of the Governor.

(1-a) "Endorsing county" means an endorsing county for purposes

of Section 5, 5A, 5B, or 5C of this Act.

(2) "Endorsing municipality" means an endorsing municipality for

purposes of Section 4, 5, 5A, 5B, or 5C of this Act.

(2-a) "Event" means a game or event as defined by Section 5A,

5B, or 5C of this Act.

Text of subd. (3) as amended by Acts 2003, 78th Leg., ch. 579,

Sec. 1

(3) "Games" means the 2011 Pan American Games or the 2012 Olympic

Games.

Text of subd. (3) as amended by Acts 2003, 78th Leg., ch. 814,

Sec. 5.01

(3) "Games" means the Pan American Games, the Olympic Games, the

Super Bowl, the National Collegiate Athletic Association Final

Four, the National Basketball Association All-Star Game, the

National Hockey League All-Star Game, the Major League Baseball

All-Star Game, the National Collegiate Athletic Association Bowl

Championship Series Games, the World Cup Soccer Games, or the

World Games. The term includes the events and activities related

to the games.

(4) "Games support contract" means a joinder undertaking, a

joinder agreement, or a similar contract executed by the

department and containing terms permitted or required by this

Act.

(5) "Joinder agreement" means an agreement entered into by:

(A) the department on behalf of this state and a site selection

organization setting out representations and assurances by the

state in connection with the selection of a site in this state

for the location of a game or event; or

(B) a local organizing committee, an endorsing municipality, an

endorsing county, or more than one local organizing committee,

endorsing municipality, or endorsing county acting collectively,

and a site selection organization setting out representations and

assurances by each local organizing committee, endorsing

municipality, or endorsing county in connection with the

selection of a site in this state for the location of a game or

event.

(6) "Joinder undertaking" means an agreement entered into by:

(A) the department on behalf of this state and a site selection

organization that the state will execute a joinder agreement if

the site selection organization selects a site in this state for

a game or event; or

(B) a local organizing committee, an endorsing municipality, an

endorsing county, or more than one local organizing committee,

endorsing municipality, or endorsing county acting collectively,

and a site selection organization that each local organizing

committee, endorsing municipality, or endorsing county will

execute a joinder agreement if the site selection organization

selects a site in this state for a game or event.

(7) "Local organizing committee" means a nonprofit corporation

or its successor in interest that:

(A) has been authorized by an endorsing municipality, endorsing

county, or more than one endorsing municipality or county acting

collectively to pursue an application and bid on the applicant's

behalf to a site selection organization for selection as the site

of a game or event; or

(B) with the authorization of an endorsing municipality,

endorsing county, or more than one endorsing municipality or

county acting collectively, has executed an agreement with a site

selection organization regarding a bid to host a game or event.

(8) "Site selection organization" means a site selection

organization as defined by Sections 5, 5A, and 5C of this Act.

Sec. 2. PURPOSE. The purpose of this Act is to provide

assurances required by a site selection organization sponsoring a

sporting or non-sporting game or event and to provide financing

for the costs of:

(1) applying or bidding for selection as the site of a game or

event in this state;

(2) making the preparations necessary and desirable for the

conduct of a game or event in this state, including the

construction or renovation of facilities to the extent authorized

by this Act; and

(3) conducting a game or event in this state.

Sec. 3. LEGISLATIVE FINDINGS. The conduct in this state of one

or more games or events will:

(1) provide invaluable public visibility throughout the nation

or world for this state and the communities where the games or

events are held;

(2) encourage and provide major economic benefits to the

communities where the games or events are held and to the entire

state; and

(3) provide opportunities for the creation of jobs by local and

Texas businesses that pay a living wage.

Guarantee of State and Municipal Obligations; Pan American Games

Trust Fund

Sec. 4. (a) In this section:

Text of subd. (1) as amended by Acts 2003, 78th Leg., ch. 579,

Sec. 3

(1) "Games" means the 2011 Pan American Games.

Text of subd. (1) as amended by Acts 2003, 78th Leg., ch. 814,

Sec. 5.03

(1) "Games" means the Pan American Games.

(2) "Site selection organization" means the United States Olympic

Committee or the Pan American Sports Organization.

(3) "Endorsing municipality" means a municipality that has a

population of 850,000 or more and that authorizes a bid by a

local organizing committee for selection of the municipality as

the site of the games.

(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 comptroller, but in no event later than one year before

the scheduled opening event of the games, the comptroller shall

determine for each subsequent calendar quarter, in accordance

with procedures developed by the 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 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 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 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

comptroller shall designate as a market area for the games each

area in which the 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 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 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 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 deposited in the trust fund

under Subsection (m) of this section.

(e) In addition to municipal sales and use tax revenue retained

under Subsection (d) of this section, an endorsing municipality

may guarantee its obligations under a games support contract and

this Act by pledging surcharges from user fees, including parking

or ticket fees, charged in connection with presentation of the

games.

(f) Subject to Subsection (m) of this section, the comptroller

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, 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 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

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 shall 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 depositing into the trust fund any state tax revenue

determined 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 deposited in the

trust fund under Subsection (m) of this section.

(g) The department may use the funds in the Pan American Games

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 comptroller to enable the comptroller to fulfill

the 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 comptroller not later than the end of the fourth

month after the date the period covered by the financial

statement ends.

Text of subsec. (i) as amended by Acts 2003, 78th Leg., ch. 579,

Sec. 4

(i) The comptroller shall provide an estimate not later than

December 1, 2003, of the total amount of state and municipal tax

revenue that would be deposited in the Pan American Games trust

fund before January 1, 2012, if the games were to be held in this

state at a site selected pursuant to an application by a local

organizing committee. The comptroller shall provide the estimate

on request to a local organizing committee. A local organizing

committee may submit the comptroller's estimate to a site

selection organization.

Text of subsec. (i) as amended by Acts 2003, 78th Leg., ch. 814,

Sec. 5.03

(i) The comptroller shall provide an estimate not later than

September 1 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 deposited in the

Pan American Games trust fund before January 1 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 comptroller

shall provide the estimate on request to a local organizing

committee. A local organizing committee may submit the

comptroller's estimate to a site selection organization.

(j) The department may not make a disbursement from the Pan

American Games trust fund unless the 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 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 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.

Text of subsec. (l) as amended by Acts 2003, 78th Leg., ch. 579,

Sec. 4

(l) On January 1, 2013, the comptroller 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.

Text of subsec. (l) as amended by Acts 2003, 78th Leg., ch. 814,

Sec. 5.03

(l) On January 1 of the second year following the year in which

the games are held in this state, the comptroller 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.

(m) In no event may:

(1) the total amount of state and municipal tax revenue 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 deposited in the Pan American

Games trust fund and interest earned on the fund.

Guarantee of State and Municipal Obligations; Olympic Games Trust

Fund

Sec. 5. (a) In this section:

(1) "Games" means the Olympic Games.

(2) "Site selection organization" means the United States Olympic

Committee or the International Olympic Committee.

(3) "Endorsing county" means a county in which there is located

all or part of a municipality that has a population of 850,000 or

more, or a county adjacent to such a county.

(4) "Endorsing municipality" has the meaning assigned by Section

4 of this Act.

(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 comptroller, but in no event later

than one year before the scheduled opening event of the games,

the comptroller shall determine for each subsequent calendar

quarter, in accordance with procedures developed by the

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 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

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 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 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 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

comptroller shall designate as a market area for the games each

area in which the 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 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 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

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 deposited in the trust fund under Subsection (m) of

this section.

(e) In addition to sales and use tax revenue and mixed beverage

tax revenue retained under Subsection (d) of this section and

hotel occupancy tax revenue retained under Subsection (f) of this

section, an endorsing municipality or endorsing county may

guarantee its obligations under a games support contract and this

Act by pledging surcharges from user fees, including parking or

ticket fees, charged in connection with presentation of the

games.

(f) Subject to Subsection (m) of this section, each endorsing

municipality or endorsing county shall remit to the comptroller

and the comptroller 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 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 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, the state tax

revenue determined 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 deposit of the amount of

state tax revenue determined 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 deposited in the

trust fund under Subsection (m) of this section.

(g) The department may use the funds in the Olympic Games 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 comptroller to enable the comptroller to fulfill

the 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 comptroller not later than the end of the fourth

month after the date the period covered by the financial

statement ends.

(i) The 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 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

comptroller shall provide the estimate on request to a local

organizing committee. A local organizing committee may submit the

comptroller's estimate to a site selection organization.

(j) The department may not make a disbursement from the Olympic

Games trust fund unless the 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 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

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 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

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 deposited in the Olympic Games

trust fund and interest earned on the fund.

Sec. 5A. PAYMENT OF STATE AND MUNICIPAL OR COUNTY OBLIGATIONS;

MAJOR EVENTS TRUST FUND. (a) In this section:

(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 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 comptroller; and

(iii) is a party to an event support contract.

(3) "Event support contract" means a joinder undertaking,

joinder agreement, or a similar contract executed by a local

organizing committee, an endorsing municipality, or an endorsing

county and a site selection organization.

(4) "Event" means a Super Bowl, a National Collegiate Athletic

Association Final Four tournament game, the National Basketball

Association All-Star Game, the National Hockey League All-Star

Game, the Major League Baseball All-Star Game, a National

Collegiate Athletic Association Bowl Championship Series game, a

World Cup Soccer game, the World Games, a national collegiate

championship of an amateur sport sanctioned by the national

governing body of the sport that is recognized by the United

States Olympic Committee, an Olympic activity, including a Junior

or Senior activity, training program, or feeder program

sanctioned by the United States Olympic Committee's Community

Olympic Development Program, the Breeders' Cup World

Championships, or a Formula One automobile race. The term

includes any activities related to or associated with an event.

(5) "Site selection organization" means the National Football

League, the National Collegiate Athletic Association, the

National Basketball Association, the National Hockey League,

Major League Baseball, the Federation Internationale de Football

Association (FIFA), the International World Games Association,

the United States Olympic Committee or 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.

(a-1) An event included in Subsection (a)(4) of this section is

eligible for funding under this section only if:

(1) a site selection organization selects a site located in this

state for the event 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 the sole site for the event; and

(3) the event is held not more than one time in any year.

(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 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 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 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 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

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 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 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 comptroller not earlier than one

year and not later than three months before the date the event

begins. The comptroller shall base the determination specified

by Subsection (b) of this section on information submitted by the

local organizing committee, endorsing municipality, or endorsing

county, and must make the determination not later than the 30th

day after the date the comptroller receives the request and

related information.

(c) For the purposes of Subsection (b)(1) of this section, the

comptroller shall designate as a market area for the event each

area in which the 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

comptroller. The 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 and designated as the Major

Events trust fund the amount of the municipality's or county's

hotel occupancy tax revenue determined 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 shall

retain 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 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 comptroller and shall discontinue

retaining the local tax revenues under this subsection when the

amount of the applicable tax revenue determined under Subsection

(b)(2) or (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 comptroller

without appropriation only as provided by this section.

(d-1) Not later than the 90th day after the last day of an event

and in lieu of the local tax revenues remitted to or retained by

the comptroller under Subsection (d) of this section, a

municipality or county may remit to the comptroller for deposit

in the Major Events trust fund other local funds in an amount

equal to the total amount of local tax revenue determined under

Subsections (b)(2) through (5) of this section. The amount

deposited by the comptroller into the 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 comptroller

surcharges and user fees attributable to the event for deposit

into the Major Events trust fund.

(f) The comptroller shall deposit into the Major Events trust

fund a portion of the state tax revenue not to exceed the amount

determined under Subsection (b)(1) of this section in an amount

equal to 6.25 times the amount of the local 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 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 funds in the Major Events trust fund may be used to pay

the principal of and interest on notes issued by an endorsing

municipality or endorsing county under Subsection (g) of this

section and to fulfill obligations of the state or an endorsing

municipality or endorsing county to a site selection organization

under a game support contract or event support contract, which

obligations may include the payment of costs relating to the

preparations necessary or desirable for the conduct of the event

and the payment of costs of conducting the event, including

improvements or renovations to existing facilities or other

facilities and costs of acquisition or construction of new

facilities or other facilities.

(i) A local organizing committee, endorsing municipality, or

endorsing county shall provide information required by the

comptroller to enable the comptroller to fulfill the

comptroller's duties under this section, including annual audited

statements of any financial records required by a site selection

organization and data obtained by the local organizing committee,

an endorsing municipality, or an endorsing county relating to

attendance at the event and to the economic impact of the event.

A local organizing committee, endorsing municipality, or

endorsing county must provide an annual audited financial

statement required by the comptroller, if any, not later than the

end of the fourth month after the date the period covered by the

financial statement ends. After the conclusion of an event and

on the comptroller's request, a local organizing committee,

endorsing municipality, or endorsing county must provide

information relating to the event, such as attendance figures,

financial information, or other public information held by the

local organizing committee, endorsing municipality, or endorsing

county that the 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 comptroller under Subsection (b-1) of

this section, the 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 comptroller's estimate to a site selection

organization.

(k) The comptroller may make a disbursement from the Major

Events trust fund on the prior approval of each contributing

endorsing municipality or endorsing county for a purpose for

which a local organizing committee, an endorsing municipality, or

an endorsing county or the state is obligated under a game

support contract or event support contract. A disbursement may

not be made from the trust fund that the comptroller determines

would be used for the purpose of soliciting the relocation of a

professional sports franchise located in this state.

(l) If a disbursement is made from the Major Events trust fund

under Subsection (k), 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

comptroller shall remit to each endorsing entity, in proportion

to the amount contributed by the entity, any money remaining in

the trust fund.

(n) Repealed by Acts 2009, 81st Leg., R.S., Ch. 810, Sec. 8,

eff. September 1, 2009.

(o) This section may not be construed as creating or requiring a

state guarantee of obligations imposed on the state or an

endorsing municipality or endorsing county under an event support

contract or other agreement relating to hosting one or more

events in this state.

(p) The 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.

(q) Repealed by Acts 2005, 79th Leg., Ch. 150, Sec. 1, eff.

September 1, 2005.

(r) This subsection applies only to an event that the

comptroller determines under Subsection (b) of this section will

generate at least $15 million in state and local tax revenue.

The comptroller and one or more endorsing municipalities or

endorsing counties may enter into an agreement to provide that an

amount equal to the amount of local tax revenue determined by the

comptroller under Subsections (b)(2) through (5) of this section

shall be remitted to the comptroller by one or more endorsing

municipalities or endorsing counties and shall be deposited by

the comptroller into the Major Events trust fund before the

event. In the 12 months immediately preceding the event, the

comptroller may deposit into the trust fund an amount equal to

the amount the state is required to deposit under Subsection (f)

of this section from any amounts appropriated by the legislature

for the purposes of this subsection. The comptroller may make

disbursements from the trust fund in amounts that do not exceed

the amounts deposited under this subsection in accordance with

the agreement to pay costs relating to attracting and securing

the event. An agreement under this subsection may provide that,

following the last day of an event, the funds eligible for

disbursement under Subsection (k) of this section be held in the

trust fund and made available to pay the cost of securing the

event in future years.

(s) The term of an agreement entered into under Subsection (r)

of this section may not exceed 10 years and must terminate:

(1) on the final termination date provided in the agreement; or

(2) if the event covered by the agreement is not held during any

18-month period covered by the agreement.

(t) On termination of an agreement entered into under Subsection

(r) of this section, the total amount of the state's initial

contribution under the agreement must be repaid to the state from

funds disbursed under Subsection (k) of this section or from any

other source specified in the agreement. An agreement entered

into under Subsection (r) of this section must include terms that

the comptroller determines are necessary to protect the state's

interest, including a provision for a performance bond or other

guarantee of repayment if the event is not held in the state

after a disbursement has been made.

(u) The comptroller shall deposit any amount appropriated by the

legislature for the purposes of Subsection (r) of this section

into the Major Event trust fund for the limited purpose of paying

the costs of attracting and securing an event eligible under that

subsection.

(v) The comptroller may adopt rules necessary to implement this

section.

Sec. 5B. GUARANTEE OF STATE AND MUNICIPAL OR COUNTY OBLIGATIONS;

MOTOR SPORTS RACING TRUST FUND. (a) In this section:

(1) "Endorsing county" means a county that contains a site

selected by a site selection organization for one or more motor

sports racing events.

(2) "Endorsing municipality" means a municipality that contains

a site selected by a site selection organization for one or more

motor sports racing events.

(3) "Event support contract" means a joinder undertaking,

joinder agreement, or similar contract executed by an endorsing

municipality or endorsing county and a site selection

organization.

(4) "Motor sports racing event" means a specific automobile

racing event sanctioned by the Automobile Competition Committee

for the United States (ACCUS) and held at a temporary event

venue. The term includes any events and activities held,

sponsored, or endorsed by the site selection organization in

conjunction with the racing event.

(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 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 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 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 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

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 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 comptroller, to the

preparation for and presentation of the racing event.

(c) For the purposes of Subsection (b)(1) of this section, the

comptroller shall designate as a market area for the motor sports

racing event each area in which the 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 comptroller. The 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 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 under Subsection (b)(4) or (5) of this section, less

any amount of the revenue that the municipality or county

determines is necessary to meet the obligations of the

municipality or county. The comptroller shall retain the amount

of sales and use tax revenue and mixed beverage tax revenue

determined under Subsection (b)(2) or (3) of this section from

the amounts otherwise required to be sent to the municipality

under Sections 321.502 and 183.051(b), Tax Code, or to the county

under Sections 323.502 and 183.051(b), Tax Code, and deposit into

the trust fund the tax revenues, less any amount of the revenue

that the municipality or county determines is necessary to meet

the obligations of the municipality or county. The comptroller

shall begin retaining and depositing the local tax revenues with

the first distribution of that tax revenue that occurs after the

first day of the 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 comptroller without

appropriation only as provided by this section.

(e) In addition to the tax revenue deposited in the Motor Sports

Racing 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 shall deposit 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 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 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.

(h) The funds in the Motor Sports Racing 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

comptroller to enable the comptroller to fulfill the

comptroller's duties under this section, including annual audited

statements of any financial records required by a site selection

organization and data obtained by the local organizing committee,

an endorsing municipality, or an endorsing county relating to

attendance at the 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 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 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 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 comptroller shall provide the estimate on request to

a local organizing committee, endorsing municipality, or

endorsing county. A local organizing committee, endorsing

municipality, or endorsing county may submit the comptroller's

estimate to a site selection organization.

(k) The comptroller may make a disbursement from the 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 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 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 comptroller shall remit to each endorsing

entity, in proportion to the amount contributed by the entity,

any money remaining in the trust fund.

(n) This section may not be construed as creating or requiring a

state guarantee of obligations imposed on the state or an

endorsing municipality or endorsing county under a motor sports

racing event support contract or other agreement relating to

hosting one or more racing events in this state.

(o) The 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.

(p) Any provision of this Act applicable to games as defined by

Section 1(3) of this Act also applies to a motor sports racing

event as defined in this section.

Sec. 5C. EVENTS TRUST FUND FOR CERTAIN MUNICIPALITIES AND

COUNTIES.

(a) In this section:

(1) "Endorsing county" means a county that contains a site

selected by a site selection organization for one or more events.

(2) "Endorsing municipality" means a municipality that contains

a site selected by a site selection organization for one or more

events.

(3) "Event" means an event or a related series of events held in

this state for which a local organizing committee, endorsing

county, or endorsing municipality seeks approval from a site

selection organization to hold the event at a site in this state.

The term includes any activities related to or associated with

the event.

(4) "Event support contract" means a joinder undertaking, a

joinder agreement, or a similar contract executed by a local

organizing committee, an endorsing municipality, or an endorsing

county and a site selection organization.

(5) "Site selection organization" means an entity that conducts

or considers conducting an eligible event in this state.

(a-1) An event is eligible for funding under this section only

if:

(1) a site selection organization selects a site for the event

located in this state after considering, through a highly

competitive selection process, one or more sites that are not

located in this state;

(2) a site selection organization selects a site in this state

as:

(A) the sole site for the event; or

(B) the sole site for the event in a region composed of this

state and one or more adjoining states; and

(3) the event is held not more than one time in this state or an

adjoining state in any year.

(b) 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 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 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 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 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

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 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

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