By: Fraser	S.B. No. 633
	(In the Senate - Filed February 18, 2015; February 23, 2015,
	read first time and referred to Committee on Natural Resources and
	Economic Development; March 30, 2015, reported adversely, with
	favorable Committee Substitute by the following vote:  Yeas 10,
	Nays 0; March 30, 2015, sent to printer.)
Click here to see the committee vote
	COMMITTEE SUBSTITUTE FOR S.B. No. 633	By:  Fraser

	A BILL TO BE ENTITLED
	AN ACT
	relating to a Pan American Games reimbursement fund, an Olympic
	Games reimbursement fund, a Major Events reimbursement fund, a
	Motor Sports Racing reimbursement fund, an Events reimbursement
	fund for sporting and non-sporting events, and a special event
	trust fund.
	BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
	SECTION 1.  The heading to Section 4, Chapter 1507 (S.B.
	456), Acts of the 76th Legislature, Regular Session, 1999 (Article
	5190.14, Vernon's Texas Civil Statutes), is amended to read as
	follows:
	Sec. 4.  GUARANTEE OF STATE AND MUNICIPAL OBLIGATIONS; PAN
	AMERICAN GAMES REIMBURSEMENT [TRUST] FUND.
	SECTION 2.  Sections 4(b), (c), (d), (f), (g), (h), (j), (k),
	and (m), Chapter 1507 (S.B. 456), Acts of the 76th Legislature,
	Regular Session, 1999 (Article 5190.14, Vernon's Texas Civil
	Statutes), are amended to read as follows:
	(b)  If a site selection organization selects a site for the
	games in this state pursuant to an application by a local organizing
	committee acting on behalf of an endorsing municipality, after the
	first occurrence of a measurable economic impact in this state as a
	result of the preparation for the games, as determined by the
	department [comptroller], but in no event later than one year
	before the scheduled opening event of the games, the department
	[comptroller] shall determine for each subsequent calendar
	quarter, in accordance with procedures developed by the department
	[comptroller]:
	(1)  the incremental increase in the receipts to the
	state from the taxes imposed under Chapters 151, 152, 156, and 183,
	Tax Code, and under Title 5, Alcoholic Beverage Code, within the
	market areas designated under Subsection (c) of this section, that
	is directly attributable, as determined by the department
	[comptroller], to the preparation for and presentation of the games
	and related events;
	(2)  the incremental increase in the receipts collected
	by the state on behalf of the endorsing municipality from the sales
	and use tax imposed by the endorsing municipality under Section
	321.101(a), Tax Code, that is directly attributable, as determined
	by the department [comptroller], to the preparation for and
	presentation of the games and related events; and
	(3)  the incremental increase in the receipts collected
	by the endorsing municipality from the municipality's hotel
	occupancy tax imposed under Chapter 351, Tax Code, that is directly
	attributable, as determined by the department [comptroller], to the
	preparation for and presentation of the games and related events.
	(c)  For the purposes of Subsection (b)(1) of this section,
	the department [comptroller] shall designate as a market area for
	the games each area in which the department [comptroller]
	determines there is a reasonable likelihood of measurable economic
	impact directly attributable to the preparation for and
	presentation of the games and related events, including areas
	likely to provide venues, accommodations, and services in
	connection with the games based on the proposal provided by the
	local organizing committee under Section 7 of this Act. The
	department [comptroller] shall determine the geographic boundaries
	of each market area. The endorsing municipality that has been
	selected as the site for the games must be included in a market area
	for the games.
	(d)  The comptroller, at the direction of the department,
	shall retain, for the purpose of guaranteeing the joint obligations
	of the state and the endorsing municipality under a games support
	contract and this Act, the amount of municipal sales and use tax
	revenue determined under Subsection (b)(2) of this section from the
	amounts otherwise required to be sent to the municipality under
	Section 321.502, Tax Code, beginning with the first distribution of
	that tax revenue that occurs after the date the department
	[comptroller] makes the determination of the amount of municipal
	sales and use tax revenue under Subsection (b)(2). The comptroller
	shall discontinue retaining municipal sales and use tax revenue
	under this subsection on the earlier of:
	(1)  the end of the third calendar month following the
	month in which the closing event of the games occurs; or
	(2)  the date the amount of municipal sales and use tax
	revenue and municipal hotel occupancy tax revenue in the Pan
	American Games reimbursement [trust] fund equals 14 percent of the
	maximum amount of state and municipal tax revenue that may be
	transferred to or deposited in the [trust] fund under Subsection
	(m) of this section.
	(f)  Subject to Subsection (m) of this section, the
	comptroller, at the direction of the department, shall deposit into
	a [trust] fund designated as the Pan American Games reimbursement
	[trust] fund the amount of municipal sales and use tax revenue
	retained under Subsection (d) of this section and, at the same time,
	shall transfer to the fund a portion of the state tax revenue
	determined by the department under Subsection (b)(1) of this
	section in an amount equal to 6.25 times the amount of that
	municipal sales and use tax revenue. Subject to Subsection (m) of
	this section, the endorsing municipality shall deposit into the
	[trust] fund the amount of the endorsing municipality's hotel
	occupancy tax revenue determined by the department under Subsection
	(b)(3) of this section. The endorsing municipality shall deposit
	that hotel occupancy tax revenue into the [trust] fund at least
	quarterly. When the endorsing municipality makes a deposit of its
	hotel occupancy tax revenue, the comptroller, at the direction of
	the department, shall transfer to the fund [deposit] at the same
	time a portion of the state tax revenue determined under Subsection
	(b)(1) of this section in an amount equal to 6.25 times the amount
	of that municipal hotel occupancy tax revenue. The Pan American
	Games reimbursement [trust] fund is established outside the
	treasury but is held in trust by the comptroller for the
	administration of this Act. Money in the [trust] fund may be spent
	by the department without appropriation only as provided by this
	Act. The comptroller shall discontinue transferring [depositing]
	into the [trust] fund any state tax revenue determined by the
	department under Subsection (b)(1) of this section on the earlier
	of:
	(1)  the end of the third calendar month following the
	month in which the closing event of the games occurs; or
	(2)  the date on which the amount of state revenue in
	the Pan American Games reimbursement [trust] fund equals 86 percent
	of the maximum amount of state and municipal tax revenue that may be
	transferred to or deposited in the [trust] fund under Subsection
	(m) of this section.
	(g)  The department may use the money [funds] in the Pan
	American Games reimbursement [trust] fund only to fulfill joint
	obligations of the state and the endorsing municipality to a site
	selection organization under a games support contract or any other
	agreement providing assurances from the department or the endorsing
	municipality to a site selection organization.
	(h)  A local organizing committee shall provide information
	required by the department [comptroller] to enable the department
	[comptroller] to fulfill the department's [comptroller's] duties
	under this Act, including annual audited statements of the local
	organizing committee's financial records required by a site
	selection organization and data obtained by the local organizing
	committee relating to attendance at the games and to the economic
	impact of the games. A local organizing committee must provide an
	annual audited financial statement required by the department
	[comptroller] not later than the end of the fourth month after the
	date the period covered by the financial statement ends.
	(j)  The department may not make a disbursement from the Pan
	American Games reimbursement [trust] fund unless the department
	[comptroller] certifies that the disbursement is for a purpose for
	which the state and the endorsing municipality are jointly
	obligated under a games support contract or other agreement
	described by Subsection (g) of this section.
	(k)  If the department [comptroller] certifies under
	Subsection (j) of this section that a disbursement may be made from
	the Pan American Games reimbursement [trust] fund, the obligation
	shall be satisfied first out of municipal revenue deposited in the
	[trust] fund and any interest earned on that municipal revenue. If
	the municipal revenue is not sufficient to satisfy the entire
	deficit, state revenue transferred [deposited] into the [trust]
	fund and any interest earned on that state revenue shall be used to
	satisfy the portion of the deficit not covered by the municipal
	revenue.
	(m)  In no event may:
	(1)  the total amount of state and municipal tax
	revenue transferred to or deposited in the Pan American Games
	reimbursement [trust] fund exceed $20 million; or
	(2)  the joint liability of the state and the endorsing
	municipality under a joinder agreement and any other games support
	contracts entered into pursuant to this Act exceed the lesser of:
	(A)  $20 million; or
	(B)  the total amount of revenue transferred to or
	deposited in the Pan American Games reimbursement [trust] fund and
	interest earned on the fund.
	SECTION 3.  Sections 4(i) and (l), Chapter 1507 (S.B. 456),
	Acts of the 76th Legislature, Regular Session, 1999 (Article
	5190.14, Vernon's Texas Civil Statutes), as amended by Chapters 579
	(H.B. 1675) and 814 (S.B. 275), Acts of the 78th Legislature,
	Regular Session, 2003, are reenacted and amended to read as follows:
	(i)  The department [comptroller] shall provide an estimate
	not later than September [December] 1[, 2003,] of the year that is
	eight years before the year in which the games would be held in this
	state of the total amount of state and municipal tax revenue that
	would be transferred to or deposited in the Pan American Games
	reimbursement [trust] fund before January 1[, 2012,] of the year
	following the year in which the games would be held, if the games
	were to be held in this state at a site selected pursuant to an
	application by a local organizing committee. The department
	[comptroller] shall provide the estimate on request to a local
	organizing committee. A local organizing committee may submit the
	department's [comptroller's] estimate to a site selection
	organization.
	(l)  On January 1[, 2013,] of the second year following the
	year in which the games are held in this state, the comptroller, at
	the direction of the department, shall transfer to the general
	revenue fund any money remaining in the Pan American Games
	reimbursement [trust] fund, not to exceed the amount of state
	revenue remaining in the [trust] fund, plus any interest earned on
	that state revenue. The comptroller shall remit to the endorsing
	municipality any money remaining in the [trust] fund after the
	required amount is transferred to the general revenue fund.
	SECTION 4.  The heading to Section 5, Chapter 1507 (S.B.
	456), Acts of the 76th Legislature, Regular Session, 1999 (Article
	5190.14, Vernon's Texas Civil Statutes), is amended to read as
	follows:
	Sec. 5.  GUARANTEE OF STATE AND MUNICIPAL OBLIGATIONS;
	OLYMPIC GAMES REIMBURSEMENT [TRUST] FUND.
	SECTION 5.  Sections 5(b), (c), (d), (f), (g), (h), (i), (j),
	(k), (l), and (m), Chapter 1507 (S.B. 456), Acts of the 76th
	Legislature, Regular Session, 1999 (Article 5190.14, Vernon's
	Texas Civil Statutes), are amended to read as follows:
	(b)  If a site selection organization selects a site for the
	games in this state pursuant to an application by a local organizing
	committee, after the first occurrence of a measurable economic
	impact in this state as a result of the preparation for the games,
	as determined by the department [comptroller], but in no event
	later than one year before the scheduled opening event of the games,
	the department [comptroller] shall determine for each subsequent
	calendar quarter, in accordance with procedures developed by the
	department [comptroller]:
	(1)  the incremental increase in the receipts to the
	state from the taxes imposed under Chapters 151, 152, 156, and 183,
	Tax Code, and under Title 5, Alcoholic Beverage Code, within the
	market areas designated under Subsection (c) of this section, that
	is directly attributable, as determined by the department
	[comptroller], to the preparation for and presentation of the games
	and related events;
	(2)  the incremental increase in the receipts collected
	by the state on behalf of each endorsing municipality from the sales
	and use tax imposed by the endorsing municipality under Section
	321.101(a), Tax Code, and the mixed beverage tax revenue to be
	received by the endorsing municipality under Section 183.051(b),
	Tax Code, that is directly attributable, as determined by the
	department [comptroller], to the preparation for and presentation
	of the games and related events;
	(3)  the incremental increase in the receipts collected
	by the state on behalf of each endorsing county from the sales and
	use tax imposed by the county under Section 323.101(a), Tax Code,
	and the mixed beverage tax revenue to be received by the endorsing
	county under Section 183.051(b), Tax Code, that is directly
	attributable, as determined by the department [comptroller], to the
	preparation for and presentation of the games and related events;
	(4)  the incremental increase in the receipts collected
	by each endorsing municipality from the hotel occupancy tax imposed
	under Chapter 351, Tax Code, that is directly attributable, as
	determined by the department [comptroller], to the preparation for
	and presentation of the games and related events; and
	(5)  the incremental increase in the receipts collected
	by each endorsing county from the hotel occupancy tax imposed under
	Chapter 352, Tax Code, that is directly attributable, as determined
	by the department [comptroller], to the preparation for and
	presentation of the games and related events.
	(c)  For the purposes of Subsection (b)(1) of this section,
	the department [comptroller] shall designate as a market area for
	the games each area in which the department [comptroller]
	determines there is a reasonable likelihood of measurable economic
	impact directly attributable to the preparation for and
	presentation of the games and related events, including areas
	likely to provide venues, accommodations, and services in
	connection with the games based on the proposal provided by the
	local organizing committee under Section 7 of this Act. The
	department [comptroller] shall determine the geographic boundaries
	of each market area. Each endorsing municipality or endorsing
	county that has been selected as the site for the games must be
	included in a market area for the games.
	(d)  Subject to Section 6 of this Act, the comptroller, at
	the direction of the department, shall retain, for the purpose of
	guaranteeing the joint obligations of the state and an endorsing
	municipality or endorsing county under a games support contract and
	this Act, the amount of sales and use tax revenue and mixed beverage
	tax revenue determined under Subsection (b)(2) or (b)(3) of this
	section from the amounts otherwise required to be sent to the
	municipality under Section 183.051(b) or 321.502, Tax Code, or to
	the county under Section 183.051(b) or 323.502, Tax Code, beginning
	with the first distribution of that tax revenue that occurs after
	the date the department [comptroller] makes the determination of
	the amount of sales and use tax revenue and mixed beverage tax
	revenue under Subsection (b)(2) or (b)(3) of this section. The
	comptroller shall discontinue retaining sales and use tax revenue
	and mixed beverage tax revenue under this subsection on the earlier
	of:
	(1)  the end of the third calendar month following the
	month in which the closing event of the games occurs; or
	(2)  the date the amount of local sales and use tax
	revenue and mixed beverage tax revenue in the Olympic Games
	reimbursement [trust] fund equals 14 percent of the maximum amount
	of state and local tax revenue that may be transferred to or
	deposited in the [trust] fund under Subsection (m) of this section.
	(f)  Subject to Subsection (m) of this section, each
	endorsing municipality or endorsing county shall remit to the
	comptroller and the comptroller, at the direction of the
	department, shall deposit into a trust fund designated as the
	Olympic Games reimbursement [trust] fund, on a quarterly basis, the
	amount of the municipality's or county's hotel occupancy tax
	revenue determined by the department under Subsection (b)(4) or
	(b)(5) of this section, as applicable. Subject to Section 6 of this
	Act and Subsection (m) of this section, the comptroller, at the
	direction of the department, shall deposit into the [trust] fund
	the amount of sales and use tax revenue and mixed beverage tax
	revenue retained under Subsection (d) of this section for the same
	calendar quarter and, at the same time, shall transfer to the fund
	the state tax revenue determined by the department under Subsection
	(b)(1) of this section for the quarter.  The Olympic Games
	reimbursement [trust] fund is established outside the treasury but
	is held in trust by the comptroller for the administration of this
	Act. Money in the [trust] fund may be spent by the department
	without appropriation only as provided by this Act. The
	comptroller shall discontinue transfer [deposit] of the amount of
	state tax revenue determined by the department under Subsection
	(b)(1) of this section on the earlier of:
	(1)  the end of the third calendar month following the
	month in which the closing event of the games occurs; or
	(2)  the date the amount of state revenue in the Olympic
	Games reimbursement [trust] fund equals 86 percent of the maximum
	amount of state, municipal, and county tax revenue that may be
	transferred to or deposited in the [trust] fund under Subsection
	(m) of this section.
	(g)  The department may use the money [funds] in the Olympic
	Games reimbursement [trust] fund only to fulfill joint obligations
	of the state and each endorsing municipality or endorsing county to
	a site selection organization under a games support contract or any
	other agreement providing assurances from the department or the
	municipality or county to a site selection organization.
	(h)  A local organizing committee shall provide information
	required by the department [comptroller] to enable the department
	[comptroller] to fulfill the department's [comptroller's] duties
	under this Act, including annual audited statements of the local
	organizing committee's financial records required by a site
	selection organization and data obtained by the local organizing
	committee relating to attendance at the games and to the economic
	impact of the games. A local organizing committee must provide an
	annual audited financial statement required by the department
	[comptroller] not later than the end of the fourth month after the
	date the period covered by the financial statement ends.
	(i)  The department [comptroller] shall provide an estimate
	before August 31 of the year that is 12 years before the year in
	which the games would be held in this state, or as soon as practical
	after that date, of the total amount of state, municipal, and county
	tax revenue that would be transferred to or deposited in the Olympic
	Games reimbursement [trust] fund if the games were to be held in
	this state at a site selected pursuant to an application by a local
	organizing committee. The department [comptroller] shall provide
	the estimate on request to a local organizing committee. A local
	organizing committee may submit the department's [comptroller's]
	estimate to a site selection organization.
	(j)  The department may not make a disbursement from the
	Olympic Games reimbursement [trust] fund unless the department
	[comptroller] certifies that the disbursement is for a purpose for
	which the state and each endorsing municipality or endorsing county
	are jointly obligated under a games support contract or other
	agreement described by Subsection (g) of this section. A
	disbursement may not be made from the [trust] fund that the
	department determines would be used for the purpose of soliciting
	the relocation of a professional sports franchise located in this
	state.
	(k)  If the department [comptroller] certifies under
	Subsection (j) of this section that a disbursement may be made from
	the Olympic Games reimbursement [trust] fund, the obligation shall
	be satisfied proportionately from the state and municipal or county
	revenue in the [trust] fund.
	(l)  Two years after the closing event of the games, the
	department [comptroller] shall transfer to the general revenue fund
	any money remaining in the Olympic Games reimbursement [trust]
	fund, not to exceed the amount of state revenue remaining in the
	[trust] fund, plus any interest earned on that state revenue. The
	department [comptroller] shall remit to each endorsing entity in
	proportion to the amount contributed by the entity any money
	remaining in the [trust] fund after the required amount is
	transferred to the general revenue fund.
	(m)  In no event may:
	(1)  the total amount of state, municipal, and county
	tax revenue transferred to or deposited in the Olympic Games
	reimbursement [trust] fund exceed $100 million; or
	(2)  the joint liability of the state and an endorsing
	municipality or county under a joinder agreement and any other
	games support contracts entered into pursuant to this Act exceed
	the lesser of:
	(A)  $100 million; or
	(B)  the total amount of revenue transferred to or
	deposited in the Olympic Games reimbursement [trust] fund and
	interest earned on the fund.
	SECTION 6.  The heading to Section 5A, Chapter 1507 (S.B.
	456), Acts of the 76th Legislature, Regular Session, 1999 (Article
	5190.14, Vernon's Texas Civil Statutes), is amended to read as
	follows:
	Sec. 5A.  PAYMENT OF STATE AND MUNICIPAL OR COUNTY
	OBLIGATIONS; MAJOR EVENTS REIMBURSEMENT [TRUST] FUND.
	SECTION 7.  Sections 5A(a)(1) and (2), Chapter 1507 (S.B.
	456), Acts of the 76th Legislature, Regular Session, 1999 (Article
	5190.14, Vernon's Texas Civil Statutes), are amended to read as
	follows:
	(1)  "Endorsing county" means:
	(A)  a county that contains a site selected by a
	site selection organization for one or more events; or
	(B)  a county that:
	(i)  does not contain a site selected by a
	site selection organization for an event;
	(ii)  is included in the market area for the
	event as designated by the department [comptroller]; and
	(iii)  is a party to an event support
	contract.
	(2)  "Endorsing municipality" means:
	(A)  a municipality that contains a site selected
	by a site selection organization for one or more events; or
	(B)  a municipality that:
	(i)  does not contain a site selected by a
	site selection organization for an event;
	(ii)  is included in the market area for the
	event as designated by the department [comptroller]; and
	(iii)  is a party to an event support
	contract.
	SECTION 8.  Sections 5A(a-1), (a-2), (b), (b-1), (c), (d),
	(d-1), (e), (f), (g), (i), (j), (k), (l), (m), (p), (v), (w), and
	(y), Chapter 1507 (S.B. 456), Acts of the 76th Legislature, Regular
	Session, 1999 (Article 5190.14, Vernon's Texas Civil Statutes), are
	amended to read as follows:
	(a-1)  An event not listed in Subsection (a)(4) of this
	section is ineligible for funding under this section.  A listed
	event may receive funding under this section only if:
	(1)  a site selection organization selects a site
	located in this state for the event to be held one time or, for an
	event scheduled to be held each year for a period of years under an
	event contract, or an event support contract, one time each year for
	the period of years, after considering, through a highly
	competitive selection process, one or more sites that are not
	located in this state;
	(2)  a site selection organization selects a site in
	this state as:
	(A)  the sole site for the event; or
	(B)  the sole site for the event in a region
	composed of this state and one or more adjoining states;
	(3)  the event is held not more than one time in any
	year; and
	(4)  the amount of the incremental increase in tax
	receipts determined by the department [comptroller] under
	Subsection (b) of this section equals or exceeds $1 million,
	provided that for an event scheduled to be held each year for a
	period of years under an event contract or event support contract,
	the incremental increase in tax receipts shall be calculated as if
	the event did not occur in the prior year.
	(a-2)  Subsection (a-1)(1) of this section does not apply to
	an event that is the largest event held each year at a sports
	entertainment venue in this state with a permanent seating
	capacity, including grandstand and premium seating, of not less
	than 125,000.  If an endorsing municipality or endorsing county
	requests the department [comptroller] to make a determination under
	Subsection (b) of this section for an event described by this
	subsection, the provisions of this section apply to that event as if
	it satisfied the eligibility requirements for an event under
	Subsection (a-1)(1) of this section.
	(b)  If a site selection organization selects a site for an
	event in this state pursuant to an application by a local organizing
	committee, endorsing municipality, or endorsing county, upon
	request of a local organizing committee, endorsing municipality, or
	endorsing county, the department [comptroller] shall determine for
	a one-year period that begins two months before the date on which
	the event will begin, in accordance with procedures developed by
	the department [comptroller]:
	(1)  the incremental increase in the receipts to the
	state from taxes imposed under Chapters 151, 152, 156, and 183, Tax
	Code, and under Title 5, Alcoholic Beverage Code, within the market
	areas designated under Subsection (c) of this section, that is
	directly attributable, as determined by the department
	[comptroller], to the preparation for and presentation of the event
	and related activities;
	(2)  the incremental increase in the receipts collected
	by the state on behalf of each endorsing municipality in the market
	area from the sales and use tax imposed by each endorsing
	municipality under Section 321.101(a), Tax Code, and the mixed
	beverage tax revenue to be received by each endorsing municipality
	under Section 183.051(b), Tax Code, that is directly attributable,
	as determined by the department [comptroller], to the preparation
	for and presentation of the event and related activities;
	(3)  the incremental increase in the receipts collected
	by the state on behalf of each endorsing county in the market area
	from the sales and use tax imposed by each endorsing county under
	Section 323.101(a), Tax Code, and the mixed beverage tax revenue to
	be received by each endorsing county under Section 183.051(b), Tax
	Code, that is directly attributable, as determined by the
	department [comptroller], to the preparation for and presentation
	of the event and related activities;
	(4)  the incremental increase in the receipts collected
	by each endorsing municipality in the market area from the hotel
	occupancy tax imposed under Chapter 351, Tax Code, that is directly
	attributable, as determined by the department [comptroller], to the
	preparation for and presentation of the event and related
	activities; and
	(5)  the incremental increase in the receipts collected
	by each endorsing county in the market area from the hotel occupancy
	tax imposed under Chapter 352, Tax Code, that is directly
	attributable, as determined by the department [comptroller], to the
	preparation for and presentation of the event and related
	activities.
	(b-1)  A request for a determination of the amount of
	incremental increase in tax receipts specified by Subsection (b) of
	this section must be submitted to the department [comptroller] not
	earlier than one year and not later than 45 days before the date the
	event begins.  The department [comptroller] shall base the
	determination specified by Subsection (b) of this section on
	information submitted by the local organizing committee, endorsing
	municipality, or endorsing county, and must make the determination
	not later than the 30th day after the date the department
	[comptroller] receives the request and related information.
	(c)  For the purposes of Subsection (b)(1) of this section,
	the department [comptroller] shall designate as a market area for
	the event each area in which the department [comptroller]
	determines there is a reasonable likelihood of measurable economic
	impact directly attributable to the preparation for and
	presentation of the event and related activities, including areas
	likely to provide venues, accommodations, and services in
	connection with the event based on the proposal provided by the
	local organizing committee to the department [comptroller].  The
	department [comptroller] shall determine the geographic boundaries
	of each market area.  An endorsing municipality or endorsing county
	that has been selected as the site for the event must be included in
	a market area for the event.
	(d)  Each endorsing municipality or endorsing county shall
	remit to the comptroller and the comptroller shall deposit into a
	[trust] fund created by the comptroller, at the direction of the
	department, and designated as the Major Events reimbursement
	[trust] fund the amount of the municipality's or county's hotel
	occupancy tax revenue determined by the department under Subsection
	(b)(4) or (b)(5) of this section, less any amount of the revenue
	that the municipality or county determines is necessary to meet the
	obligations of the municipality or county.  The comptroller, at the
	direction of the department, shall retain the amount of sales and
	use tax revenue and mixed beverage tax revenue determined by the
	department under Subsection (b)(2) or (b)(3) of this section from
	the amounts otherwise required to be sent to the municipality under
	Sections 321.502 and 183.051(b), Tax Code, or to the county under
	Sections 323.502 and 183.051(b), Tax Code, and deposit into the
	[trust] fund the tax revenues, less any amount of the revenue that
	the municipality or county determines is necessary to meet the
	obligations of the municipality or county.  The comptroller shall
	begin retaining and depositing the local tax revenues with the
	first distribution of that tax revenue that occurs after the first
	day of the one-year period described by Subsection (b) of this
	section or at a time otherwise determined to be practicable by the
	department [comptroller] and shall discontinue retaining the local
	tax revenues under this subsection when the amount of the
	applicable tax revenue determined by the department under
	Subsection (b)(2) or (b)(3) of this section has been retained.  The
	Major Events reimbursement [trust] fund is established outside the
	state treasury and is held in trust by the comptroller for
	administration of this Act.  Money in the [trust] fund may be
	disbursed by the department [comptroller] without appropriation
	only as provided by this section.
	(d-1)  Not later than the 90th day after the last day of an
	event and in lieu of the local tax revenues remitted [to] or
	retained [by the comptroller] under Subsection (d) of this section,
	a municipality or county may remit to the department [comptroller]
	for deposit in the Major Events reimbursement [trust] fund other
	local funds in an amount equal to the total amount of local tax
	revenue determined by the department under Subsections (b)(2)
	through (5) of this section.  The amount deposited by the
	department [comptroller] into the Major Events reimbursement
	[trust] fund under this subsection is subject to Subsection (f) of
	this section.
	(e)  In addition to the tax revenue deposited in the Major
	Events reimbursement [trust] fund under Subsection (d) of this
	section, an endorsing municipality or endorsing county may
	guarantee its obligations under an event support contract and this
	section by pledging surcharges from user fees, including parking or
	ticket fees, charged in connection with the event.  An endorsing
	municipality or endorsing county may collect and remit to the
	department [comptroller] surcharges and user fees attributable to
	the event for deposit into the Major Events reimbursement [trust]
	fund.
	(f)  The comptroller, at the direction of the department,
	shall transfer [deposit] into the Major Events reimbursement
	[trust] fund a portion of the state tax revenue not to exceed the
	amount determined by the department under Subsection (b)(1) of this
	section in an amount equal to 6.25 times the amount of the local
	revenue retained or remitted under this section, including:
	(1)  local sales and use tax revenue;
	(2)  mixed beverage tax revenue;
	(3)  hotel occupancy tax revenue; and
	(4)  surcharge and user fee revenue.
	(g)  To meet its obligations under a game support contract or
	event support contract to improve, construct, renovate, or acquire
	facilities or to acquire equipment, an endorsing municipality by
	ordinance or an endorsing county by order may authorize the
	issuance of notes. An endorsing municipality or endorsing county
	may provide that the notes be paid from and secured by amounts on
	deposit or amounts to be deposited into the Major Events
	reimbursement [trust] fund or surcharges from user fees, including
	parking or ticket fees, charged in connection with the event. Any
	note issued must mature not later than seven years from its date of
	issuance.
	(i)  A local organizing committee, endorsing municipality,
	or endorsing county shall provide information required by the
	department [comptroller] to enable the department [comptroller] to
	fulfill the department's [comptroller's] duties under this section,
	including annual audited statements of any financial records
	required by a site selection organization and data obtained by the
	local organizing committee, an endorsing municipality, or an
	endorsing county relating to attendance at the event, including an
	estimate of the number of people expected to attend the event who
	are not residents of this state, and to the economic impact of the
	event.  A local organizing committee, endorsing municipality, or
	endorsing county must provide an annual audited financial statement
	required by the department [comptroller], if any, not later than
	the end of the fourth month after the date the period covered by the
	financial statement ends.  After the conclusion of an event and on
	the department's [comptroller's] request, a local organizing
	committee, endorsing municipality, or endorsing county must
	provide information relating to the event, such as attendance
	figures, including an estimate of the number of attendees at the
	event who are not residents of this state, financial information,
	or other public information held by the local organizing committee,
	endorsing municipality, or endorsing county that the department
	[comptroller] considers necessary.
	(j)  Not later than the 30th day after the date a request of a
	local organizing committee, endorsing municipality, or endorsing
	county is submitted to the department [comptroller] under
	Subsection (b-1) of this section, the department [comptroller]
	shall provide an estimate of the total amount of tax revenue that
	would be deposited in the Major Events reimbursement [trust] fund
	under this section in connection with that event, if the event were
	to be held in this state at a site selected pursuant to an
	application by a local organizing committee, endorsing
	municipality, or endorsing county.  A local organizing committee,
	endorsing municipality, or endorsing county may submit the
	department's [comptroller's] estimate to a site selection
	organization.
	(k)  The department [comptroller] may make a disbursement
	from the Major Events reimbursement [trust] fund on the prior
	approval of each contributing endorsing municipality or endorsing
	county for a purpose for which a local organizing committee, an
	endorsing municipality, or an endorsing county or the state is
	obligated under a game support contract or event support
	contract.  If an obligation is incurred under a games support
	contract or event support contract to make a structural improvement
	to the site or to add a fixture to the site for purposes of an event
	and that improvement or fixture is expected to derive most of its
	value in subsequent uses of the site for future events, a
	disbursement from the [trust] fund made for purposes of that
	obligation is limited to five percent of the cost of the improvement
	or fixture and the remainder of the obligation is not eligible for a
	disbursement from the [trust] fund, unless the improvement or
	fixture is for a publicly owned facility.  In considering whether
	to make a disbursement from the [trust] fund, the department
	[comptroller] may not consider a contingency clause in an event
	support contract as relieving a local organizing committee's,
	endorsing municipality's, or endorsing county's obligation to pay a
	cost under the contract.  A disbursement may not be made from the
	[trust] fund that the department [comptroller] determines would be
	used for the purpose of soliciting the relocation of a professional
	sports franchise located in this state.
	(l)  If a disbursement is made from the Major Events
	reimbursement [trust] fund under Subsection (k) of this section,
	the obligation shall be satisfied proportionately from the state
	and local revenue in the [trust] fund.
	(m)  On payment of all state, municipal, or county
	obligations under a game support contract or event support contract
	related to the location of any particular event in the state, the
	department [comptroller] shall remit to each endorsing entity, in
	proportion to the amount contributed by the entity, any money
	remaining in the [trust] fund.
	(p)  The department [comptroller] may not undertake any of
	the responsibilities or duties set forth in this section unless:
	(1)  a request is submitted by the municipality or the
	county in which the event will be located;
	(2)  the event meets all the requirements for funding
	under this section, including Subsection (a-1) of this section; and
	(3)  the request is accompanied by documentation from a
	site selection organization selecting the site for the event.
	(v)  The department [comptroller] may adopt rules necessary
	to implement this section.
	(w)  Not later than 10 months after the last day of an event
	eligible for disbursements from the Major Events reimbursement
	[trust] fund for costs associated with the event, the department
	[comptroller] using existing resources shall complete a study in
	the market area of the event on the measurable economic impact
	directly attributable to the preparation for and presentation of
	the event and related activities.  The department [comptroller]
	shall post on the department's [comptroller's] Internet website:
	(1)  the results of the study conducted under this
	subsection, including any source documentation or other
	information relied on by the department [comptroller] for the
	study;
	(2)  the amount of incremental increase in tax receipts
	for the event determined by the department under Subsection (b) of
	this section;
	(3)  the site selection organization documentation
	described in Subsection (p)(3) of this section;
	(4)  any source documentation or information described
	under Subsection (i) of this section that was relied on by the
	department [comptroller] in making the determination of the amount
	of incremental increase in tax receipts under Subsection (b) of
	this section; and
	(5)  documentation verifying that:
	(A)  a request submitted by a local organizing
	committee, endorsing municipality, or endorsing county under
	Subsection (p) of this section is complete and certified as such by
	the department [comptroller];
	(B)  the determination on the amount of
	incremental increases in tax receipts under Subsection (b) of this
	section considered the information submitted by a local organizing
	committee, endorsing municipality, or endorsing county as required
	under Subsection (b-1) of this section; and
	(C)  each deadline established under this section
	was timely met.
	(y)  After the conclusion of an event, the department
	[comptroller] shall compare information on the actual attendance
	figures provided to the department [comptroller] under Subsection
	(i) of this section with the estimated attendance numbers used to
	determine the incremental increase in tax receipts under Subsection
	(b) of this section.  If the actual attendance figures are
	significantly lower than the estimated attendance numbers, the
	department [comptroller] may reduce the amount of a disbursement
	for an endorsing entity under the Major Events reimbursement
	[trust] fund in proportion to the discrepancy between the actual
	and estimated attendance and in proportion to the amount
	contributed to the fund by the entity.  The department
	[comptroller] by rule shall define "significantly lower" for
	purposes of this subsection and provide the manner in which a
	disbursement may be proportionately reduced.  This subsection does
	not affect the remittance of any money remaining in the fund in
	accordance with Subsection (m) of this section.
	SECTION 9.  The heading to Section 5B, Chapter 1507 (S.B.
	456), Acts of the 76th Legislature, Regular Session, 1999 (Article
	5190.14, Vernon's Texas Civil Statutes), is amended to read as
	follows:
	Sec. 5B.  GUARANTEE OF STATE AND MUNICIPAL OR COUNTY
	OBLIGATIONS; MOTOR SPORTS RACING REIMBURSEMENT [TRUST] FUND.
	SECTION 10.  Sections 5B(b), (c), (d), (e), (f), (g), (h),
	(i), (j), (k), (l), (m), and (o), Chapter 1507 (S.B. 456), Acts of
	the 76th Legislature, Regular Session, 1999 (Article 5190.14,
	Vernon's Texas Civil Statutes), are amended to read as follows:
	(b)  If a site selection organization selects a site for a
	motor sports racing event in this state pursuant to an application
	by a local organizing committee, endorsing municipality, or
	endorsing county, not later than three months before the date of the
	motor sports racing event, the department [comptroller] shall
	determine for the 30-day period that ends at the end of the day
	after the date on which the racing event will be held, in accordance
	with procedures developed by the department [comptroller]:
	(1)  the incremental increase in the receipts to the
	state from taxes imposed under Chapters 151, 152, 156, and 183, Tax
	Code, and under Title 5, Alcoholic Beverage Code, within the market
	areas designated under Subsection (c) of this section, that is
	directly attributable, as determined by the department
	[comptroller], to the preparation for and presentation of the
	racing event;
	(2)  the incremental increase in the receipts collected
	by the state on behalf of each endorsing municipality in the market
	area from the sales and use tax imposed by each endorsing
	municipality under Section 321.101(a), Tax Code, and the mixed
	beverage tax revenue to be received by each endorsing municipality
	under Section 183.051(b), Tax Code, that is directly attributable,
	as determined by the department [comptroller], to the preparation
	for and presentation of the racing event;
	(3)  the incremental increase in the receipts collected
	by the state on behalf of each endorsing county in the market area
	from the sales and use tax imposed by each endorsing county under
	Section 323.101(a), Tax Code, and the mixed beverage tax revenue to
	be received by each endorsing county under Section 183.051(b), Tax
	Code, that is directly attributable, as determined by the
	department [comptroller], to the preparation for and presentation
	of the racing event;
	(4)  the incremental increase in the receipts collected
	by each endorsing municipality in the market area from the hotel
	occupancy tax imposed under Chapter 351, Tax Code, that is directly
	attributable, as determined by the department [comptroller], to the
	preparation for and presentation of the racing event; and
	(5)  the incremental increase in the receipts collected
	by each endorsing county in the market area from the hotel occupancy
	tax imposed under Chapter 352, Tax Code, that is directly
	attributable, as determined by the department [comptroller], to the
	preparation for and presentation of the racing event.
	(c)  For the purposes of Subsection (b)(1) of this section,
	the department [comptroller] shall designate as a market area for
	the motor sports racing event each area in which the department
	[comptroller] determines there is a reasonable likelihood of
	measurable economic impact directly attributable to the
	preparation for and presentation of the racing event, including
	areas likely to provide venues, accommodations, and services in
	connection with the racing event based on a proposal or other
	information provided by an endorsing municipality, endorsing
	county, or local organizing committee to the department
	[comptroller].  The department [comptroller] shall determine the
	geographic boundaries of each market area.  An endorsing
	municipality or endorsing county that has been selected as the site
	for the racing event must be included in a market area for the
	racing event.
	(d)  Each endorsing municipality or endorsing county shall
	remit to the comptroller and the comptroller shall deposit into a
	[trust] fund created by the comptroller, at the direction of the
	department, and designated as the Motor Sports Racing reimbursement
	[trust] fund for the particular event the amount of the
	municipality's or county's hotel occupancy tax revenue determined
	by the department under Subsection (b)(4) or (5) of this section,
	less any amount of the revenue that the municipality or county
	determines is necessary to meet the obligations of the municipality
	or county.  The comptroller, at the direction of the department,
	shall retain the amount of sales and use tax revenue and mixed
	beverage tax revenue determined by the department under Subsection
	(b)(2) or (3) of this section from the amounts otherwise required to
	be sent to the municipality under Sections 321.502 and 183.051(b),
	Tax Code, or to the county under Sections 323.502 and 183.051(b),
	Tax Code, and deposit into the [trust] fund the tax revenues, less
	any amount of the revenue that the municipality or county
	determines is necessary to meet the obligations of the municipality
	or county.  The comptroller shall begin retaining and depositing
	the local tax revenues with the first distribution of that tax
	revenue that occurs after the first day of the 30-day period
	described by Subsection (b) of this section and shall discontinue
	retaining the local tax revenues under this subsection when the
	amount of the applicable tax revenue determined under Subsection
	(b)(2) or (3) of this section has been retained.  The Motor Sports
	Racing reimbursement [trust] fund is established outside the state
	treasury and is held in trust by the comptroller for administration
	of this section.  Money in the [trust] fund may be disbursed by the
	department [comptroller] without appropriation only as provided by
	this section.
	(e)  In addition to the tax revenue deposited in the Motor
	Sports Racing reimbursement [trust] fund under Subsection (d) of
	this section, an endorsing municipality or endorsing county may
	guarantee its obligations under a motor sports racing event support
	contract and this section by pledging surcharges from user fees,
	including parking or ticket fees, charged in connection with the
	racing event.
	(f)  The comptroller, at the direction of the department,
	shall transfer [deposit] a portion of the state tax revenue
	determined by the department under Subsection (b)(1) of this
	section in an amount equal to 6.25 times the amount of the local
	sales and use tax revenue and mixed beverage tax revenue retained
	and the hotel occupancy tax revenue remitted by an endorsing
	municipality or endorsing county under Subsection (d) of this
	section.
	(g)  To meet its obligations under a motor sports racing
	event support contract or event support contract to improve,
	renovate, or acquire facilities or to acquire equipment, an
	endorsing municipality by ordinance or an endorsing county by order
	may authorize the issuance of notes. An endorsing municipality or
	endorsing county may provide that the notes be paid from and secured
	by amounts on deposit or amounts to be transferred or deposited into
	the Motor Sports Racing reimbursement [trust] fund or surcharges
	from user fees, including parking or ticket fees, charged in
	connection with the racing event. Any note issued must mature not
	later than seven years from its date of issuance.
	(h)  The money [funds] in the Motor Sports Racing
	reimbursement [trust] fund may be used to pay the principal of and
	interest on notes issued by an endorsing municipality or endorsing
	county under Subsection (g) of this section and to fulfill
	obligations of the state or an endorsing municipality or endorsing
	county to a site selection organization under a motor sports racing
	event support contract or event support contract, which obligations
	may include the payment of costs relating to the preparations
	necessary or desirable for the conduct of the racing event and the
	payment of costs of conducting the racing event, including
	temporary improvements or temporary renovations to existing
	facilities or other facilities specific to the event.
	(i)  A local organizing committee, endorsing municipality,
	or endorsing county shall provide information required by the
	department [comptroller] to enable the department [comptroller] to
	fulfill the department's [comptroller's] duties under this section,
	including annual audited statements of any financial records
	required by a site selection organization and data obtained by the
	local organizing committee, an endorsing municipality, or an
	endorsing county relating to attendance at the motor sports racing
	event and to the economic impact of the racing event.  A local
	organizing committee, endorsing municipality, or endorsing county
	must provide an annual audited financial statement required by the
	department [comptroller], if any, not later than the end of the
	fourth month after the date the period covered by the financial
	statement ends.
	(j)  The department [comptroller] shall provide an estimate
	not later than three months before the date of a motor sports racing
	event of the total amount of tax revenue that would be transferred
	to or deposited in the Motor Sports Racing reimbursement [trust]
	fund under this section in connection with that racing event, if the
	racing event were to be held in this state at a site selected
	pursuant to an application by a local organizing committee,
	endorsing municipality, or endorsing county.  The department
	[comptroller] shall provide the estimate on request to a local
	organizing committee, endorsing municipality, or endorsing county.
	A local organizing committee, endorsing municipality, or endorsing
	county may submit the department's [comptroller's] estimate to a
	site selection organization.
	(k)  The department [comptroller] may make a disbursement
	from the Motor Sports Racing reimbursement [trust] fund on the
	prior approval of each contributing endorsing municipality or
	endorsing county for a purpose for which an endorsing municipality
	or endorsing county or the state is obligated under a motor sports
	racing event support contract or event support contract.  A
	disbursement may not be made from the [trust] fund that the
	department [comptroller] determines would be used for the purpose
	of soliciting the relocation of a professional sports franchise
	located in this state.
	(l)  If a disbursement is made from the Motor Sports Racing
	reimbursement [trust] fund under Subsection (k) of this section,
	the obligation shall be satisfied proportionately from the state
	and local revenue in the [trust] fund.
	(m)  On payment of all state, municipal, or county
	obligations under a motor sports racing support contract or event
	support contract related to the location of any particular racing
	event in the state, the department [comptroller] shall remit to
	each endorsing entity, in proportion to the amount contributed by
	the entity, any money remaining in the [trust] fund.
	(o)  The department [comptroller] may not undertake any of
	the responsibilities or duties set forth in this section unless a
	request is submitted by the municipality and the county in which the
	motor sports racing event will be held.  The request must be
	accompanied by documentation from a site selection organization
	selecting the site for the racing event.
	SECTION 11.  The heading to Section 5C, Chapter 1507 (S.B.
	456), Acts of the 76th Legislature, Regular Session, 1999 (Article
	5190.14, Vernon's Texas Civil Statutes), is amended to read as
	follows:
	Sec. 5C.  EVENTS REIMBURSEMENT [TRUST] FUND FOR CERTAIN
	MUNICIPALITIES AND COUNTIES.
	SECTION 12.  Sections 5C(b), (b-1), (c), (c-1), (d), (d-1),
	(e), (f), (g), (h), (i), (j), (k), (k-1), (k-2), (l), (m), (o), (p),
	(q), (r), and (t), Chapter 1507 (S.B. 456), Acts of the 76th
	Legislature, Regular Session, 1999 (Article 5190.14, Vernon's
	Texas Civil Statutes), are amended to read as follows:
	(b)  If a site selection organization selects a site for an
	event in this state pursuant to an application by a local organizing
	committee, endorsing municipality, or endorsing county, not later
	than three months before the date of the event, the department
	[comptroller] shall determine for the 30-day period that ends at
	the end of the day after the date on which the event will be held or,
	if the event occurs on more than one day, after the last date on
	which the event will be held, in accordance with procedures
	developed by the department [comptroller]:
	(1)  the incremental increase in the receipts to this
	state from taxes imposed under Chapters 151, 152, 156, and 183, Tax
	Code, and under Title 5, Alcoholic Beverage Code, within the market
	areas designated under Subsection (c) of this section, that is
	directly attributable, as determined by the department
	[comptroller], to the preparation for and presentation of the event
	and related activities;
	(2)  the incremental increase in the receipts collected
	by this state on behalf of each endorsing municipality in the market
	area from the sales and use tax imposed by each endorsing
	municipality under Section 321.101(a), Tax Code, and the mixed
	beverage tax revenue to be received by each endorsing municipality
	under Section 183.051(b), Tax Code, that is directly attributable,
	as determined by the department [comptroller], to the preparation
	for and presentation of the event and related activities;
	(3)  the incremental increase in the receipts collected
	by this state on behalf of each endorsing county in the market area
	from the sales and use tax imposed by each endorsing county under
	Section 323.101(a), Tax Code, and the mixed beverage tax revenue to
	be received by each endorsing county under Section 183.051(b), Tax
	Code, that is directly attributable, as determined by the
	department [comptroller], to the preparation for and presentation
	of the event and related activities;
	(4)  the incremental increase in the receipts collected
	by each endorsing municipality in the market area from the hotel
	occupancy tax imposed under Chapter 351, Tax Code, that is directly
	attributable, as determined by the department [comptroller], to the
	preparation for and presentation of the event and related
	activities; and
	(5)  the incremental increase in the receipts collected
	by each endorsing county in the market area from the hotel occupancy
	tax imposed under Chapter 352, Tax Code, that is directly
	attributable, as determined by the department [comptroller], to the
	preparation for and presentation of the event and related
	activities.
	(b-1)  The number of requests for funding under this section
	that may be submitted by an endorsing county or endorsing
	municipality during any 12-month period for an event for which the
	department [comptroller] determines that the total amount of the
	incremental increase in tax receipts under Subsection (b) of this
	section is less than $200,000 is limited to, during any 12-month
	period, not more than 10 events, only three of which may be
	nonsporting events.
	(c)  For the purposes of Subsection (b)(1) of this section,
	the department [comptroller] shall designate as a market area for
	the event each area in which the department [comptroller]
	determines there is a reasonable likelihood of measurable economic
	impact directly attributable to the preparation for and
	presentation of the event and related activities, including areas
	likely to provide venues, accommodations, and services in
	connection with the event based on the proposal provided by the
	local organizing committee to the department [comptroller].  The
	department [comptroller] shall determine the geographic boundaries
	of each market area.  An endorsing municipality or endorsing county
	that has been selected as the site for the event must be included in
	a market area for the event.
	(c-1)  The department [comptroller] shall base the
	determination specified by Subsection (b) of this section on
	information submitted by the local organizing committee, endorsing
	municipality, or endorsing county, and must make the determination
	not later than the 30th day after the date the department
	[comptroller] receives the information.
	(d)  Each endorsing municipality or endorsing county shall
	remit to the comptroller and the comptroller shall deposit into a
	[trust] fund created by the comptroller, at the direction of the
	department, and designated as the Events reimbursement [trust] fund
	the amount of the municipality's or county's hotel occupancy tax
	revenue determined by the department under Subsection (b)(4) or (5)
	of this section, less any amount of the revenue that the
	municipality or county determines is necessary to meet the
	obligations of the municipality or county.  The comptroller, at the
	direction of the department, shall retain the amount of sales and
	use tax revenue and mixed beverage tax revenue determined by the
	department under Subsection (b)(2) or (3) of this section from the
	amounts otherwise required to be sent to the municipality under
	Sections 321.502 and 183.051(b), Tax Code, or to the county under
	Sections 323.502 and 183.051(b), Tax Code, and deposit into the
	[trust] fund the tax revenues, less any amount of the revenue that
	the municipality or county determines is necessary to meet the
	obligations of the municipality or county.  The comptroller shall
	begin retaining and depositing the local tax revenues with the
	first distribution of that tax revenue that occurs after the first
	day of the period described by Subsection (b) of this section or at
	a time otherwise determined to be practicable by the department
	[comptroller] and shall discontinue retaining the local tax
	revenues under this subsection when the amount of the applicable
	tax revenue determined by the department under Subsection (b)(2) or
	(3) of this section has been retained.  The Events reimbursement
	[trust] fund is established outside the state treasury and is held
	in trust by the comptroller for administration of this section.
	Money in the [trust] fund may be disbursed by the department
	[comptroller] without appropriation only as provided by this
	section.
	(d-1)  Not later than the 90th day after the last day of an
	event and in lieu of the local tax revenues remitted [to] or
	retained [by the comptroller] under Subsection (d) of this section,
	a municipality or county may remit to the department [comptroller]
	for deposit in the Events reimbursement [trust] fund other local
	funds in an amount equal to the total amount of local tax revenue
	determined by the department under Subsections (b)(2) through (5)
	of this section.  The amount deposited by the department
	[comptroller] into the Events reimbursement [trust] fund under this
	subsection is subject to Subsection (f) of this section.
	(e)  In addition to the tax revenue deposited in the Events
	reimbursement [trust] fund under Subsection (d) of this section, an
	endorsing municipality or endorsing county may guarantee its
	obligations under an event support contract and this section by
	pledging surcharges from user fees, including parking or ticket
	fees, charged in connection with the event.  An endorsing
	municipality or endorsing county may collect and remit to the
	department [comptroller] surcharges and user fees attributable to
	the event for deposit into the Events reimbursement [trust] fund.
	(f)  The comptroller, at the direction of the department,
	shall transfer [deposit] into the Events reimbursement [trust] fund
	a portion of the state tax revenue not to exceed the amount
	determined by the department under Subsection (b)(1) of this
	section in an amount equal to 6.25 times the amount of the local tax
	revenue retained or remitted under this section, including:
	(1)  local sales and use tax revenue;
	(2)  mixed beverage tax revenue;
	(3)  hotel occupancy tax revenue; and
	(4)  surcharge and user fee revenue.
	(g)  To meet its obligations under an event support contract
	to improve, construct, renovate, or acquire facilities or to
	acquire equipment, an endorsing municipality by ordinance or an
	endorsing county by order may authorize the issuance of notes. An
	endorsing municipality or endorsing county may provide that the
	notes be paid from and secured by amounts on deposit or amounts to
	be transferred or deposited into the Events reimbursement [trust]
	fund or surcharges from user fees, including parking or ticket
	fees, charged in connection with the event. Any note issued must
	mature not later than seven years from its date of issuance.
	(h)  The money in the Events reimbursement [trust] fund may
	be used to pay the principal of and interest on notes issued by an
	endorsing municipality or endorsing county under Subsection (g) of
	this section and to fulfill obligations of this state or an
	endorsing municipality or endorsing county to a site selection
	organization under an event support contract. Subject to
	Subsection (k) of this section, the obligations may include the
	payment of costs relating to the preparations necessary for the
	conduct of the event and the payment of costs of conducting the
	event, including improvements or renovations to existing
	facilities or other facilities and costs of acquisition or
	construction of new facilities or other facilities.
	(i)  A local organizing committee, endorsing municipality,
	or endorsing county shall provide information required by the
	department [comptroller] to enable the department [comptroller] to
	fulfill the department's [comptroller's] duties under this section,
	including annual audited statements of any financial records
	required by a site selection organization and data obtained by the
	local organizing committee, an endorsing municipality, or an
	endorsing county relating to attendance at the event, including an
	estimate of the number of people expected to attend the event who
	are not residents of this state, and to the economic impact of the
	event.  A local organizing committee, endorsing municipality, or
	endorsing county must provide an annual audited financial statement
	required by the department [comptroller], if any, not later than
	the end of the fourth month after the date the period covered by the
	financial statement ends.  After the conclusion of an event and on
	the department's [comptroller's] request, a local organizing
	committee, endorsing municipality, or endorsing county must
	provide information relating to the event, such as attendance
	figures, including an estimate of the number of people who are not
	residents of this state who attended the event, financial
	information, or other public information held by the local
	organizing committee, endorsing municipality, or endorsing county
	that the department [comptroller] considers necessary.
	(j)  The department [comptroller] shall provide an estimate
	not later than three months before the date of an event of the total
	amount of tax revenue that would be transferred into or deposited in
	the Events reimbursement [trust] fund under this section in
	connection with that event, if the event were to be held in this
	state at a site selected pursuant to an application by a local
	organizing committee, endorsing municipality, or endorsing county.
	The department [comptroller] shall provide the estimate on request
	to a local organizing committee, endorsing municipality, or
	endorsing county.  A local organizing committee, endorsing
	municipality, or endorsing county may submit the department's
	[comptroller's] estimate to a site selection organization.
	(k)  The department [comptroller] may make a disbursement
	from the Events reimbursement [trust] fund on the prior approval of
	each contributing endorsing municipality or endorsing county for a
	purpose for which a local organizing committee, an endorsing
	municipality, or an endorsing county or this state is obligated
	under an event support contract, including an obligation to pay
	costs incurred in the conduct of the event and costs incurred in
	making preparations necessary for the event.  If an obligation is
	incurred under an event support contract to make a structural
	improvement to the site or to add a fixture to the site for purposes
	of an event and that improvement or fixture is expected to derive
	most of its value in subsequent uses of the site for future events,
	a disbursement from the [trust] fund made for purposes of that
	obligation is limited to five percent of the cost of the improvement
	or fixture and the remainder of the obligation is not eligible for a
	disbursement from the [trust] fund, unless the improvement or
	fixture is for a publicly owned facility.  In considering whether to
	make a disbursement from the [trust] fund, the department
	[comptroller] may not consider a contingency clause in an event
	support contract as relieving a local organizing committee's,
	endorsing municipality's, or endorsing county's obligation to pay a
	cost under the contract.
	(k-1)  A disbursement may not be made from the [trust] fund
	that the department [comptroller] determines would be used for the
	purpose of:
	(1)  soliciting the relocation of a professional sports
	franchise located in this state;
	(2)  constructing an arena, stadium, or convention
	center; or
	(3)  conducting usual and customary maintenance of a
	facility.
	(k-2)  Subsection (k-1) of this section does not prohibit:
	(1)  a disbursement from the [trust] fund for the
	construction of temporary structures within an arena, stadium, or
	convention, if those temporary structures are necessary for the
	conduct of the event; or
	(2)  temporary maintenance of a facility that is
	necessary for the preparation for or conduct of the event.
	(l)  If a disbursement is made from the Events reimbursement
	[trust] fund under Subsection (k) of this section, the obligation
	shall be satisfied proportionately from the state and local revenue
	in the [trust] fund.
	(m)  On payment of all state, municipal, or county
	obligations under an event support contract related to the location
	of any particular event in this state, the department [comptroller]
	shall remit to each endorsing entity, in proportion to the amount
	contributed by the entity, any money remaining in the Events
	reimbursement [trust] fund.
	(o)  The department [comptroller] may not undertake any of
	the responsibilities or duties set forth in this section unless a
	request is submitted by the municipality or the county in which the
	event will be located.  The request must be accompanied by
	documentation from a site selection organization selecting the site
	for the event.
	(p)  The department [comptroller] may adopt rules necessary
	to implement this section.
	(q)  In determining the amount of state revenue available
	under Subsection (b)(1) of this section, the department
	[comptroller] may consider whether:
	(1)  the event has been held in this state on previous
	occasions; and
	(2)  changes to the character of the event could affect
	the incremental increase in receipts collected and remitted to the
	state by an endorsing county or endorsing municipality under that
	subsection.
	(r)  The department [comptroller] may adopt a model event
	support contract and make the contract available on the
	department's [comptroller's] Internet website.  The adoption by
	the department [comptroller] of a model event support contract
	under this subsection does not require use of the model event
	support contract for purposes of this section.
	(t)  After the conclusion of an event, the department
	[comptroller] shall compare information on the actual attendance
	figures provided to the department [comptroller] under Subsection
	(i) of this section with the estimated attendance numbers used to
	determine the incremental increase in tax receipts under Subsection
	(b) of this section.  If the actual attendance figures are
	significantly lower than the estimated attendance numbers, the
	department [comptroller] may reduce the amount of a disbursement
	for an endorsing entity under the Events reimbursement [trust] fund
	in proportion to the discrepancy between the actual and estimated
	attendance and in proportion to the amount contributed to the fund
	by the entity.  The department [comptroller] by rule shall define
	"significantly lower" for purposes of this subsection and provide
	the manner in which a disbursement may be proportionately reduced.
	This subsection does not affect the remittance of any money
	remaining in the fund in accordance with Subsection (m) of this
	section.
	SECTION 13.  Sections 6(a) and (b), Chapter 1507 (S.B. 456),
	Acts of the 76th Legislature, Regular Session, 1999 (Article
	5190.14, Vernon's Texas Civil Statutes), are amended to read as
	follows:
	(a)  Except as provided by Subsections (b) and (d) of this
	section, an endorsing municipality or endorsing county must hold an
	election in the municipality or county to determine whether the
	municipality or county may contribute a portion of its sales and use
	taxes to the Olympic Games reimbursement [trust] fund under Section
	5 of this Act.  The election must be held on a uniform election date
	before the date a site selection organization requires the
	endorsing municipality or endorsing county and the state to enter
	into a joinder undertaking relating to the applicable games.
	(b)  If an endorsing municipality or endorsing county is
	required to hold an election under this section and the
	contribution of a portion of the municipality's or county's sales
	and use taxes to the Olympic Games reimbursement [trust] fund under
	Section 5 of this Act is not approved by a majority of the voters
	voting in the election:
	(1)  the comptroller may not establish the Olympic
	Games reimbursement [trust] fund under Section 5 of this Act, may
	not retain the municipality's or county's tax revenue under Section
	5(d) of this Act from amounts otherwise required to be sent to that
	municipality or county, and may not transfer [deposit] any state
	tax revenue into the [trust] fund;
	(2)  the department [comptroller] is not required to
	determine the incremental increase in state, county, or municipal
	tax revenue under Section 5(b) of this Act; and
	(3)  the department may not enter into a games support
	contract relating to the games for which the municipality or county
	has authorized a bid on its behalf.
	SECTION 14.  Section 7(f), Chapter 1507 (S.B. 456), Acts of
	the 76th Legislature, Regular Session, 1999 (Article 5190.14,
	Vernon's Texas Civil Statutes), is amended to read as follows:
	(f)  The department may agree to execute a joinder
	undertaking, a joinder agreement, or other games support contract
	only if:
	(1)  the department determines that:
	(A)  the state's assurances and obligations under
	the undertaking, agreement, or contract are reasonable; and
	(B)  any financial commitments of the state will
	be satisfied exclusively by recourse to the Pan American Games
	reimbursement [trust] fund or the Olympic Games reimbursement
	[trust] fund, as applicable; and
	(2)  the endorsing municipality or endorsing county has
	executed an agreement with a site selection organization that
	contains substantially similar terms.
	SECTION 15.  The following laws are repealed:
	(1)  Section 5C(s), Chapter 1507 (S.B. 456), Acts of
	the 76th Legislature, Regular Session, 1999 (Article 5190.14,
	Vernon's Texas Civil Statutes); and
	(2)  Chapter 398, Local Government Code.
	SECTION 16.  As soon as is practicable after the effective
	date of this Act, but not later than September 10, 2015, the office
	of the governor and the comptroller of public accounts shall
	develop and adopt a memorandum of understanding that:
	(1)  identifies in detail the applicable powers and
	duties of the comptroller that are being transferred to the office
	of the governor as a result of this Act; and
	(2)  establishes a plan for the identification and
	transfer of records, property, and unspent appropriations of the
	comptroller that are used for purposes of managing the funds
	transferred to the office of the governor.
	SECTION 17.  (a)  Not later than September 10, 2015:
	(1)  the administration of the Pan American Games
	reimbursement fund, Olympic Games reimbursement fund, Major Events
	reimbursement fund, Motor Sports Racing reimbursement fund, and
	Events reimbursement fund for sporting and non-sporting events
	shall be transferred from the comptroller of public accounts to the
	Texas Economic Development and Tourism Office;
	(2)  all rules, forms, policies, procedures, or
	decisions of the comptroller that are related to the Pan American
	Games reimbursement fund, Olympic Games reimbursement fund, Major
	Events reimbursement fund, Motor Sports Racing reimbursement fund,
	and Events reimbursement fund for sporting and non-sporting events
	are continued in effect as rules, forms, policies, procedures, or
	decisions of the Economic Development and Tourism Division, Office
	of the Governor, until superseded by a rule or other appropriate act
	of the Texas Economic Development and Tourism Office; and
	(3)  a reference in law or administrative rule to the
	comptroller relating to the decisions for and administration of the
	Pan American Games reimbursement fund, Olympic Games reimbursement
	fund, Major Events reimbursement fund, Motor Sports Racing
	reimbursement fund, and Events reimbursement fund for sporting and
	non-sporting events, other than a duty typically performed by the
	comptroller related to a state fund, means the Texas Economic
	Development and Tourism Office.
	(b)  Before the transfer of the administration of the Pan
	American Games reimbursement fund, Olympic Games reimbursement
	fund, Major Events reimbursement fund, Motor Sports Racing
	reimbursement fund, and Events reimbursement fund for sporting and
	non-sporting events, the comptroller of public accounts and the
	Texas Economic Development and Tourism Office shall coordinate the
	transfer of powers and duties, including records and other items,
	in accordance with the memorandum of understanding adopted under
	Section 16 of this Act, to ensure a smooth transition.
	SECTION 18.  Notwithstanding the repeal by this Act of
	Chapter 398, Local Government Code, a special event plan approved
	under former Chapter 398 of that code before September 1, 2015, is
	governed by the law as it existed immediately before the effective
	date of this Act, and that law is continued in effect for that
	purpose.
	SECTION 19.  This Act takes effect September 1, 2015.
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