84R5518 DDT-D
	By: Springer	H.B. No. 1950

	A BILL TO BE ENTITLED
	AN ACT
	relating to a municipality's or county's eligibility to receive
	money disbursed from a local events trust fund.
	BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
	SECTION 1.  The heading to Section 5C, Chapter 1507 (S.B.
	456), Acts of the 76th Legislature, Regular Session, 1999 (Article
	5190.14, Vernon's Texas Civil Statutes), is amended to read as
	follows:
	Sec. 5C.  LOCAL EVENTS TRUST FUND FOR CERTAIN MUNICIPALITIES
	AND COUNTIES.
	SECTION 2.  Sections 5C(b-1), (d), (d-1), (e), (f), (g),
	(h), (j), (k), (l), (m), and (t), Chapter 1507 (S.B. 456), Acts of
	the 76th Legislature, Regular Session, 1999 (Article 5190.14,
	Vernon's Texas Civil Statutes), are amended to read as follows:
	(b-1)  An endorsing county or endorsing municipality may not
	receive money from a Local Events trust fund to fund an event under
	this section if the county or municipality has received money from a
	Local Events trust fund under this section to fund another event
	held in the same calendar year.  This subsection does not limit the
	[The] number of requests for funding under this section that may be
	submitted by an endorsing county or endorsing municipality during
	that year if previous event requests submitted during that year are
	determined to be ineligible for funding under this section [any
	12-month period for an event for which the comptroller determines
	that the total amount of the incremental increase in tax receipts
	under Subsection (b) of this section is less than $200,000 is
	limited to, during any 12-month period, not more than 10 events,
	only three of which may be nonsporting events].
	(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 Local
	Events trust fund 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 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 (3) of this section has been retained.
	The Local Events trust fund is established outside the state
	treasury and is held in trust by the comptroller for administration
	of this section.  Money in the trust fund may be disbursed by the
	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 Local 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 Local Events trust fund under this subsection
	is subject to Subsection (f) of this section.
	(e)  In addition to the tax revenue deposited in the Local
	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 Local Events trust fund.
	(f)  The comptroller shall deposit into the Local 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 tax revenue
	retained or remitted under this section, including:
	(1)  local sales and use tax revenue;
	(2)  mixed beverage tax revenue;
	(3)  hotel occupancy tax revenue; and
	(4)  surcharge and user fee revenue.
	(g)  To meet its obligations under an event support contract
	to improve, construct, renovate, or acquire facilities or to
	acquire equipment, an endorsing municipality by ordinance or an
	endorsing county by order may authorize the issuance of notes.  An
	endorsing municipality or endorsing county may provide that the
	notes be paid from and secured by amounts on deposit or amounts to
	be deposited into the Local 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 money in the Local Events trust fund may be used to
	pay the principal of and interest on notes issued by an endorsing
	municipality or endorsing county under Subsection (g) of this
	section and to fulfill obligations of this state or an endorsing
	municipality or endorsing county to a site selection organization
	under an event support contract.  Subject to Subsection (k) of this
	section, the obligations may include the payment of costs relating
	to the preparations necessary for the conduct of the event and the
	payment of costs of conducting the event, including improvements or
	renovations to existing facilities or other facilities and costs of
	acquisition or construction of new facilities or other facilities.
	(j)  The comptroller shall provide an estimate not later than
	three months before the date of an event of the total amount of tax
	revenue that would be deposited in the Local Events trust fund under
	this section in connection with that event, if the event were to be
	held in this state at a site selected pursuant to an application by
	a local organizing committee, endorsing municipality, or endorsing
	county.  The 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 Local
	Events trust fund on the prior approval of each contributing
	endorsing municipality or endorsing county for a purpose for which
	a local organizing committee, an endorsing municipality, or an
	endorsing county or this state is obligated under an event support
	contract, including an obligation to pay costs incurred in the
	conduct of the event and costs incurred in making preparations
	necessary for the event.  If an obligation is incurred under an
	event support contract to make a structural improvement to the site
	or to add a fixture to the site for purposes of an event and that
	improvement or fixture is expected to derive most of its value in
	subsequent uses of the site for future events, a disbursement from
	the trust fund made for purposes of that obligation is limited to
	five percent of the cost of the improvement or fixture and the
	remainder of the obligation is not eligible for a disbursement from
	the trust fund, unless the improvement or fixture is for a publicly
	owned facility.  In considering whether to make a disbursement from
	the trust fund, the comptroller may not consider a contingency
	clause in an event support contract as relieving a local organizing
	committee's, endorsing municipality's, or endorsing county's
	obligation to pay a cost under the contract.
	(l)  If a disbursement is made from the Local Events trust
	fund under Subsection (k) of this section, the obligation shall be
	satisfied proportionately from the state and local revenue in the
	trust fund.
	(m)  On payment of all state, municipal, or county
	obligations under an event support contract related to the location
	of any particular event in this state, the comptroller shall remit
	to each endorsing entity, in proportion to the amount contributed
	by the entity, any money remaining in the Local Events trust fund.
	(t)  After the conclusion of an event, the comptroller shall
	compare information on the actual attendance figures provided to
	the comptroller under Subsection (i) of this section with the
	estimated attendance numbers used to determine the incremental
	increase in tax receipts under Subsection (b) of this section.  If
	the actual attendance figures are significantly lower than the
	estimated attendance numbers, the comptroller may reduce the amount
	of a disbursement for an endorsing entity under the Local Events
	trust fund in proportion to the discrepancy between the actual and
	estimated attendance and in proportion to the amount contributed to
	the fund by the entity.  The comptroller by rule shall define
	"significantly lower" for purposes of this subsection and provide
	the manner in which a disbursement may be proportionately reduced.
	This subsection does not affect the remittance of any money
	remaining in the fund in accordance with Subsection (m) of this
	section.
	SECTION 3.  The changes in law made by this Act apply only to
	a request for funding from a local events trust fund submitted on or
	after the effective date of this Act.  A request submitted before
	that date is governed by the law in effect immediately before the
	effective date of this Act, and that law is continued in effect for
	that purpose.
	SECTION 4.  This Act takes effect September 1, 2015.