84R4528 GCB-D
	By: Rodriguez of Travis	H.B. No. 1292

	A BILL TO BE ENTITLED
	AN ACT
	relating to renaming the Major Events trust fund to the Major Events
	Reimbursement Program.
	BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
	SECTION 1.  The heading to Section 5A, Chapter 1507 (S.B.
	456), Acts of the 76th Legislature, Regular Session, 1999 (Article
	5190.14, Vernon's Texas Civil Statutes), is amended to read as
	follows:
	Sec. 5A.  PAYMENT OF STATE AND MUNICIPAL OR COUNTY
	OBLIGATIONS UNDER[;] MAJOR EVENTS REIMBURSEMENT PROGRAM [TRUST
	FUND].
	SECTION 2.  Sections 5A(a-1), (d), (d-1), (e), (f), (g),
	(h), (j), (k), (l), (m), (w), and (y), Chapter 1507 (S.B. 456), Acts
	of the 76th Legislature, Regular Session, 1999 (Article 5190.14,
	Vernon's Texas Civil Statutes), are amended to read as follows:
	(a-1)  An event not listed in Subsection (a)(4) of this
	section is ineligible for funding under this section.  A listed
	event may receive funding through the Major Events Reimbursement
	Program under this section only if:
	(1)  a site selection organization selects a site
	located in this state for the event to be held one time or, for an
	event scheduled to be held each year for a period of years under an
	event contract, or an event support contract, one time each year for
	the period of years, after considering, through a highly
	competitive selection process, one or more sites that are not
	located in this state;
	(2)  a site selection organization selects a site in
	this state as:
	(A)  the sole site for the event; or
	(B)  the sole site for the event in a region
	composed of this state and one or more adjoining states;
	(3)  the event is held not more than one time in any
	year; and
	(4)  the amount of the incremental increase in tax
	receipts determined by the comptroller under Subsection (b) of this
	section equals or exceeds $1 million, provided that for an event
	scheduled to be held each year for a period of years under an event
	contract or event support contract, the incremental increase in tax
	receipts shall be calculated as if the event did not occur in the
	prior year.
	(d)  Each endorsing municipality or endorsing county
	participating in the Major Events Reimbursement Program shall remit
	to the comptroller and the comptroller shall deposit into a trust
	fund created by the comptroller and designated as the Major Events
	reimbursement program [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 reimbursement
	program [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 eligible for funding under the Major Events Reimbursement
	Program 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 reimbursement program [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 reimbursement program [trust] fund under this subsection is
	subject to Subsection (f) of this section.
	(e)  In addition to the tax revenue deposited in the Major
	Events reimbursement program [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 reimbursement program [trust] fund.
	(f)  The comptroller shall deposit into the Major Events
	reimbursement program [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
	reimbursement program [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 reimbursement program
	[trust] fund may be used to pay the principal of and interest on
	notes issued by an endorsing municipality or endorsing county under
	Subsection (g) of this section and to fulfill obligations of the
	state or an endorsing municipality or endorsing county to a site
	selection organization under a game support contract or event
	support contract.  Subject to Subsection (k) of this section, the
	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.
	(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 reimbursement program [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 reimbursement program [trust] fund on the prior approval of
	each contributing endorsing municipality or endorsing county for a
	purpose for which a local organizing committee, an endorsing
	municipality, or an endorsing county or the state is obligated
	under a game support contract or event support contract.  If an
	obligation is incurred under a games support contract or event
	support contract to make a structural improvement to the site or to
	add a fixture to the site for purposes of an event and that
	improvement or fixture is expected to derive most of its value in
	subsequent uses of the site for future events, a disbursement from
	the [trust] fund made for purposes of that obligation is limited to
	five percent of the cost of the improvement or fixture and the
	remainder of the obligation is not eligible for a disbursement from
	the [trust] fund, unless the improvement or fixture is for a
	publicly owned facility.  In considering whether to make a
	disbursement from the [trust] fund, the comptroller may not
	consider a contingency clause in an event support contract as
	relieving a local organizing committee's, endorsing
	municipality's, or endorsing county's obligation to pay a cost
	under the contract.  A disbursement may not be made from the
	[trust] fund that the comptroller determines would be used for the
	purpose of soliciting the relocation of a professional sports
	franchise located in this state.
	(l)  If a disbursement is made from the Major Events
	reimbursement program [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.
	(w)  Not later than 10 months after the last day of an event
	eligible for disbursements from the Major Events reimbursement
	program [trust] fund for costs associated with the event, the
	comptroller using existing resources shall  complete a study in the
	market area of the event on the measurable economic impact directly
	attributable to the preparation for and presentation of the event
	and related activities.  The comptroller shall  post on the
	comptroller's Internet website:
	(1)  the results of the study conducted under this
	subsection, including any source documentation or other
	information relied on by the comptroller for the study;
	(2)  the amount of incremental increase in tax receipts
	for the event determined under Subsection (b) of this section;
	(3)  the site selection organization documentation
	described in Subsection (p)(3) of this section;
	(4)  any source documentation or information described
	under Subsection (i) of this section that was relied on by the
	comptroller in making the determination of the amount of
	incremental increase in tax receipts under Subsection (b) of this
	section; and
	(5)  documentation verifying that:
	(A)  a request submitted by a local organizing
	committee, endorsing municipality, or endorsing county under
	Subsection (p) of this section is complete and certified as such by
	the comptroller;
	(B)  the determination on the amount of
	incremental increases in tax receipts under Subsection (b) of this
	section considered the information submitted by a local organizing
	committee, endorsing municipality, or endorsing county as required
	under Subsection (b-1) of this section; and
	(C)  each deadline established under this section
	was timely met.
	(y)  After the conclusion of an event, the comptroller shall
	compare information on the actual attendance figures provided to
	the comptroller under Subsection (i) of this section with the
	estimated attendance numbers used to determine the incremental
	increase in tax receipts under Subsection (b) of this section.  If
	the actual attendance figures are significantly lower than the
	estimated attendance numbers, the comptroller may reduce the amount
	of a disbursement for an endorsing entity under the Major Events
	reimbursement program [trust] fund in proportion to the discrepancy
	between the actual and estimated attendance and in proportion to
	the amount contributed to the fund by the entity.  The comptroller
	by rule shall define "significantly lower" for purposes of this
	subsection and provide the manner in which a disbursement may be
	proportionately reduced.  This subsection does not affect the
	remittance of any money remaining in the fund in accordance with
	Subsection (m) of this section.
	SECTION 3.  This Act takes effect immediately if it receives
	a vote of two-thirds of all the members elected to each house, as
	provided by Section 39, Article III, Texas Constitution.  If this
	Act does not receive the vote necessary for immediate effect, this
	Act takes effect September 1, 2015.