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Ch. 301 (H.B. 4174)

H.B. No. 4174

AN ACT
relating to the nonsubstantive revision of the event reimbursement
programs, including the Pan American Games trust fund, Olympic
Games trust fund, Major Events reimbursement program fund, Motor
Sports Racing trust fund, and Events trust fund; including
conforming amendments.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
ARTICLE 1. NONSUBSTANTIVE REVISION OF THE EVENT REIMBURSEMENT
PROGRAMS
SECTION 1.01. Title 4, Government Code, is amended by
adding Subtitle E-1 to read as follows:
SUBTITLE E-1. EVENT REIMBURSEMENT PROGRAMS
CHAPTER 475. GENERAL PROVISIONS
CHAPTER 476. PAN AMERICAN GAMES TRUST FUND
CHAPTER 477. OLYMPIC GAMES TRUST FUND
CHAPTER 478. MAJOR EVENTS REIMBURSEMENT PROGRAM
CHAPTER 479. MOTOR SPORTS RACING TRUST FUND
CHAPTER 480. EVENTS TRUST FUND

CHAPTER 475. GENERAL PROVISIONS
SUBCHAPTER A. GENERAL PROVISIONS
Sec. 475.0001. DEFINITIONS
Sec. 475.0002. PURPOSES OF SUBTITLE
Sec. 475.0003. LEGISLATIVE FINDINGS
Sec. 475.0004. RULES
SUBCHAPTER B. ACTIONS OF OFFICE AND STATE AGENCIES IN RELATION TO
GAMES
Sec. 475.0051. APPLICABILITY OF SUBCHAPTER
Sec. 475.0052. REQUEST FOR OFFICE TO ENTER INTO GAMES
SUPPORT CONTRACT
Sec. 475.0053. TIME FOR DETERMINATION
Sec. 475.0054. PREREQUISITE FOR EXECUTION OF GAMES
SUPPORT CONTRACT
Sec. 475.0055. JOINDER UNDERTAKING TERMS
Sec. 475.0056. JOINDER AGREEMENT TERMS
Sec. 475.0057. ADDITIONAL TERMS OF GAMES SUPPORT
CONTRACT
Sec. 475.0058. REPAYMENT AGREEMENT REQUIRED
Sec. 475.0059. STATE AS ADDITIONAL INSURED
Sec. 475.0060. SUPPORT BY CERTAIN STATE AGENCIES
SUBCHAPTER C. LOCAL ORGANIZING COMMITTEES
Sec. 475.0101. APPLICABILITY OF OPEN MEETINGS AND OPEN
RECORDS LAWS
Sec. 475.0102. TAX EXEMPTIONS FOR CERTAIN COMMITTEES
Sec. 475.0103. ETHICS REQUIREMENTS RELATING TO CERTAIN
COMMITTEES; FINANCIAL DISCLOSURES
SUBCHAPTER D. LOCAL GOVERNMENT CORPORATION IN CERTAIN POPULOUS
COUNTIES AS ENDORSING MUNICIPALITY OR COUNTY
Sec. 475.0151. APPLICABILITY
Sec. 475.0152. AUTHORITY TO ACT AS ENDORSING
MUNICIPALITY OR COUNTY
Sec. 475.0153. DEPOSIT OF MUNICIPAL OR COUNTY TAX REVENUE
TO TRUST FUND
Sec. 475.0154. PLEDGE OF SURCHARGES TO GUARANTEE
OBLIGATIONS
SUBCHAPTER E. CRIMINAL PENALTIES
Sec. 475.0201. OFFENSE OF BRIBERY
CHAPTER 475. GENERAL PROVISIONS
SUBCHAPTER A. GENERAL PROVISIONS
Sec. 475.0001. DEFINITIONS. In this subtitle:
(1) “Endorsing county” means an endorsing county for
purposes of Chapter 477, 478, 479, or 480.
(2) “Endorsing municipality” means an endorsing
municipality for purposes of Chapter 476, 477, 478, 479, or 480.
(3) “Event” means a game or an event as defined by
Chapter 478, 479, or 480.
(4) “Games” means any of the following and includes
the events and activities related to the following:
(A) the College Football Playoff games;
(B) the Major League Baseball All-Star Game;
(C) the National Basketball Association All-Star
Game;
(D) the National Collegiate Athletic Association
Final Four;
(E) the National Hockey League All-Star Game;
(F) the Olympic Games;
(G) the Pan American Games;
(H) the Super Bowl;
(I) the World Cup Soccer Games; or
(J) the World Games.
(5) “Games support contract” means a joinder
undertaking, a joinder agreement, or a similar contract executed by
the office and containing terms permitted or required by this
subtitle.
(6) “Joinder agreement” means an agreement:
(A) entered into by the office on behalf of this
state and a site selection organization setting out representations
and assurances by this state in connection with the selection of a
site in this state for a game or event; or
(B) entered into by a local organizing committee,
an endorsing municipality, or an endorsing county, or more than one
local organizing committee, endorsing municipality, or endorsing
county acting collectively, and a site selection organization
setting out representations and assurances by each local organizing
committee, endorsing municipality, or endorsing county in
connection with the selection of a site in this state for a game or
event.
(7) “Joinder undertaking” means an agreement:
(A) entered into by the office on behalf of this
state and a site selection organization that this state will
execute a joinder agreement if the site selection organization
selects a site in this state for a game or event; or
(B) entered into by a local organizing committee,
an endorsing municipality, or an endorsing county, or more than one
local organizing committee, endorsing municipality, or endorsing
county acting collectively, and a site selection organization that
each local organizing committee, endorsing municipality, or
endorsing county will execute a joinder agreement if the site
selection organization selects a site in this state for a game or
event.
(8) “Local organizing committee” means a nonprofit
corporation or the corporation’s successor in interest that:
(A) is authorized by an endorsing municipality,
endorsing county, or more than one endorsing municipality or county
acting collectively to pursue an application and bid on the
applicant’s behalf to a site selection organization for selection
as the site of a game or event; or
(B) with authorization from an endorsing
municipality, endorsing county, or more than one endorsing
municipality or county acting collectively, executes an agreement
with a site selection organization regarding a bid to host a game or
event.
(9) “Office” means the Texas Economic Development and
Tourism Office within the office of the governor.
(10) “Site selection organization” means a site
selection organization as defined by Chapters 477, 478, and 480.
(V.A.C.S. Art. 5190.14, Secs. 1(1), (1-a), (2), (2-a), (3) as
amended Acts 78th Leg., R.S., Ch. 814, (4), (5), (6), (7), (8).)
Sec. 475.0002. PURPOSES OF SUBTITLE. The purposes of this
subtitle are to:
(1) provide assurances required by a site selection
organization sponsoring a game or event; and
(2) provide financing for the costs of:
(A) applying or bidding for selection as the site
of a game or event in this state;
(B) making preparations necessary and desirable
for conducting a game or event in this state, including costs of the
construction or renovation of facilities to the extent authorized
by this subtitle; and
(C) conducting a game or event in this state.
(V.A.C.S. Art. 5190.14, Sec. 2.)
Sec. 475.0003. LEGISLATIVE FINDINGS. Conducting one or
more games or events in this state will:
(1) provide invaluable public visibility throughout
the nation or world for this state and the communities where the
games or events are held;
(2) encourage and provide major economic benefits to
the communities where the games or events are held and to the entire
state; and
(3) provide opportunities for local and Texas
businesses to create jobs that pay a living wage. (V.A.C.S. Art.
5190.14, Sec. 3.)
Sec. 475.0004. RULES. The office of the governor shall
adopt rules consistent with this subtitle to ensure efficient
administration of the trust funds established under this subtitle,
including rules related to application and receipt requirements.
(V.A.C.S. Art. 5190.14, Sec. 3A.)
SUBCHAPTER B. ACTIONS OF OFFICE AND STATE AGENCIES IN RELATION TO
GAMES
Sec. 475.0051. APPLICABILITY OF SUBCHAPTER. This
subchapter does not apply to or otherwise affect an event support
contract under Chapter 478, 479, or 480 to which the office is not a
party. (V.A.C.S. Art. 5190.14, Sec. 7(a) (part).)
Sec. 475.0052. REQUEST FOR OFFICE TO ENTER INTO GAMES
SUPPORT CONTRACT. (a) The office shall review a request from a
local organizing committee, endorsing municipality, or endorsing
county that the office, on behalf of this state, enter into a games
support contract required by a site selection organization in
connection with the committee’s, municipality’s, or county’s bid to
host any of the games.
(b) A request under Subsection (a) must be accompanied by:
(1) a general description and summary of the games for
which the local organizing committee, endorsing municipality, or
endorsing county is seeking a site selection;
(2) a preliminary and general description of the
proposal the local organizing committee, endorsing municipality,
or endorsing county intends to submit to a site selection
organization;
(3) the estimated cost of preparing and submitting the
intended proposal;
(4) the local organizing committee’s, endorsing
municipality’s, or endorsing county’s intended method of obtaining
the money needed for preparing the proposal;
(5) a description by type and approximate amount of
the site selection application costs that the local organizing
committee, endorsing municipality, or endorsing county intends to
pay; and
(6) any other information reasonably requested by the
office to assist the office in reviewing the request. (V.A.C.S.
Art. 5190.14, Secs. 7(a) (part), (b).)
Sec. 475.0053. TIME FOR DETERMINATION. The office shall
approve or deny a request under Section 475.0052 not later than the
30th day after the date the local organizing committee, endorsing
municipality, or endorsing county submits the request. (V.A.C.S.
Art. 5190.14, Sec. 7(c).)
Sec. 475.0054. PREREQUISITE FOR EXECUTION OF GAMES SUPPORT
CONTRACT. The office may agree to execute a games support contract
only if:
(1) the office determines that:
(A) this state’s assurances and obligations
under the contract are reasonable; and
(B) any financial commitment of this state will
be satisfied exclusively by recourse to the Pan American Games
trust fund or the Olympic Games 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. (V.A.C.S. Art. 5190.14, Sec.
7(f).)
Sec. 475.0055. JOINDER UNDERTAKING TERMS. The office may
agree in a joinder undertaking entered into with a site selection
organization that the office will:
(1) execute a joinder agreement if the site selection
organization selects a site in this state for the games; and
(2) refrain from taking any action after execution of
the joinder undertaking that would impair the office’s ability to
execute the joinder agreement. (V.A.C.S. Art. 5190.14, Sec. 7(d).)
Sec. 475.0056. JOINDER AGREEMENT TERMS. The office may
agree in a joinder agreement that this state will:
(1) provide or cause to be provided all of the
governmental funding, facilities, and other resources specified in
the local organizing committee’s, endorsing municipality’s, or
endorsing county’s bid to host the games;
(2) be bound by the terms of, cause the local
organizing committee, endorsing municipality, or endorsing county
to perform, and guarantee performance of the committee’s,
municipality’s, or county’s obligations under contracts relating to
selecting a site in this state for the games; and
(3) be jointly and severally liable with the local
organizing committee, endorsing municipality, or endorsing county
for:
(A) an obligation of the committee,
municipality, or county to a site selection organization, including
an obligation indemnifying the organization against a claim of and
liability to a third party arising out of or relating to the games;
and
(B) any financial deficit relating to the games.
(V.A.C.S. Art. 5190.14, Sec. 7(e).)
Sec. 475.0057. ADDITIONAL TERMS OF GAMES SUPPORT CONTRACT.
A games support contract may contain any additional provision the
office requires to carry out the purposes of this subtitle.
(V.A.C.S. Art. 5190.14, Sec. 7(h).)
Sec. 475.0058. REPAYMENT AGREEMENT REQUIRED. (a) Before
executing a games support contract, the office must execute an
agreement with the local organizing committee, endorsing
municipality, or endorsing county requiring the committee,
municipality, or county to repay this state any money spent by the
office under this subtitle if a site selection organization selects
a site for the games in this state in accordance with an application
by the committee, municipality, or county.
(b) The local organizing committee, endorsing municipality,
or endorsing county will make a repayment under Subsection (a) from
any surplus of the committee’s, municipality’s, or county’s money
remaining after:
(1) presentation of the games; and
(2) payment of the expenses and obligations incurred
by the committee, municipality, or county. (V.A.C.S. Art. 5190.14,
Sec. 7(g).)
Sec. 475.0059. STATE AS ADDITIONAL INSURED. The office may
require a local organizing committee, endorsing municipality, or
endorsing county to list this state as an additional insured on any
insurance policy purchased by the committee, municipality, or
county that a site selection organization requires to be in effect
in connection with the games. (V.A.C.S. Art. 5190.14, Sec. 7(i).)
Sec. 475.0060. SUPPORT BY CERTAIN STATE AGENCIES. The
Texas Department of Transportation, the Department of Public Safety
of the State of Texas, and the Texas Department of Housing and
Community Affairs may:
(1) assist a local organizing committee, endorsing
municipality, or endorsing county in developing applications and
planning for the games; and
(2) enter into a contract or agreement or give
assurances related to the presentation of the games. (V.A.C.S. Art.
5190.14, Sec. 7(j).)
SUBCHAPTER C. LOCAL ORGANIZING COMMITTEES
Sec. 475.0101. APPLICABILITY OF OPEN MEETINGS AND OPEN
RECORDS LAWS. (a) A local organizing committee and the committee’s
governing body are subject to Chapters 551 and 552. For purposes of
those chapters, the governing body of a local organizing committee
is considered a governmental body as defined by those chapters. For
purposes of Chapter 552, the records and information of a local
organizing committee are considered public records and public
information.
(b) A final bid that a local organizing committee submits to
a site selection organization, or a draft of that bid, is excepted
from required public disclosure under Chapter 552 until the
organization selects the site for the games.
(c) Chapter 551 does not apply to a meeting of a
subcommittee of a local organizing committee’s governing body if:
(1) the subcommittee consists of not more than five
members;
(2) the meeting is not held in a public building;
(3) the subcommittee makes a recording of the meeting
proceedings in compliance with Section 551.103, and the committee
preserves the recording until the second anniversary of the date
the recording is made;
(4) the subcommittee does not discuss or decide any
financial matters during the meeting; and
(5) any decision the subcommittee makes will not take
effect without the governing body reviewing and officially adopting
the decision at a meeting held in compliance with Chapter 551.
(d) A recording made under Subsection (c) is subject to
required public disclosure in the manner prescribed by Chapter 552
for a public record. (V.A.C.S. Art. 5190.14, Sec. 8.)
Sec. 475.0102. TAX EXEMPTIONS FOR CERTAIN COMMITTEES. A
local organizing committee that is exempt from paying federal
income tax under Section 501(c), Internal Revenue Code of 1986, is
exempt from:
(1) the sales, excise, and use taxes imposed under
Chapter 151, Tax Code;
(2) taxes on the sale, rental, and use of a motor
vehicle imposed under Chapter 152, Tax Code;
(3) the hotel occupancy tax imposed under Chapter 156,
Tax Code; and
(4) the franchise tax imposed under Chapter 171, Tax
Code. (V.A.C.S. Art. 5190.14, Sec. 9(a).)
Sec. 475.0103. ETHICS REQUIREMENTS RELATING TO CERTAIN
COMMITTEES; FINANCIAL DISCLOSURES. (a) A local organizing
committee that submits a request under Section 475.0052 must:
(1) affirm as a part of that request that the committee
is in full compliance with the ethical guidelines provided by all
contracts entered into and rules adopted by the site selection
organization, including the organization’s requirements regarding
disclosure of any financial interest a director, officer, or
senior-level employee of the committee has in any proposed
transaction with the committee;
(2) not later than the 15th day of the first month
following each calendar quarter, file with the secretary of the
endorsing municipality for which the committee submits a request:
(A) a certification that the committee continues
to comply with the ethical guidelines described by Subdivision (1);
and
(B) a report of contributions to and expenditures
by the committee, in the manner described by Subsection (b); and
(3) file with the secretary of the endorsing
municipality on April 15 of each year a copy of each financial
statement a committee or a member of a committee is required to
submit to the United States Olympic Committee during the preceding
calendar year.
(b) A report under Subsection (a)(2)(B) must include:
(1) for each contribution made to the local organizing
committee:
(A) the contributor’s full name and address;
(B) the date of the contribution;
(C) whether the contribution is cash, made by
check, or in-kind; and
(D) the amount or market value of the
contribution; and
(2) for each expenditure made by the local organizing
committee:
(A) the full name and address of the person who
receives payment of the expenditure;
(B) the date of the expenditure;
(C) the amount of the expenditure; and
(D) the purpose of the expenditure.
(c) The endorsing municipality for which a local organizing
committee submits a request under Section 475.0052 must have a
comprehensive ethics code establishing standards of conduct,
disclosure requirements, and enforcement mechanisms relating to
municipal officials and employees before the office considers the
request. (V.A.C.S. Art. 5190.14, Sec. 10.)
SUBCHAPTER D. LOCAL GOVERNMENT CORPORATION IN CERTAIN POPULOUS
COUNTIES AS ENDORSING MUNICIPALITY OR COUNTY
Sec. 475.0151. APPLICABILITY. This subchapter applies only
to a local government corporation that:
(1) is authorized to collect a municipal hotel
occupancy tax; and
(2) is located in a county with a population of 3.3
million or more. (V.A.C.S. Art. 5190.14, Sec. 12(a).)
Sec. 475.0152. AUTHORITY TO ACT AS ENDORSING MUNICIPALITY
OR COUNTY. (a) A local government corporation may act as an
endorsing municipality or endorsing county under this subtitle.
(b) Subject to Section 475.0153, a local government
corporation acting as an endorsing municipality or endorsing county
under this subtitle has all the powers of an endorsing municipality
or endorsing county under this subtitle, and any action an
endorsing municipality or endorsing county is required to take by
ordinance or order under this subtitle may be taken by order or
resolution of the corporation. (V.A.C.S. Art. 5190.14,
Secs. 12(b), (e).)
Sec. 475.0153. DEPOSIT OF MUNICIPAL OR COUNTY TAX REVENUE
TO TRUST FUND. (a) A local government corporation acting as an
endorsing municipality or endorsing county under this subtitle
shall remit for deposit into the trust fund established for the
games or event the amounts determined by the office under this
subtitle.
(b) The office shall determine the incremental increase in
tax receipts attributable to the games or event and related
activities under this subtitle based on the amount of taxes imposed
by each municipality or county that comprises the corporation and
not on the amount of taxes imposed by the corporation. (V.A.C.S.
Art. 5190.14, Sec. 12(c).)
Sec. 475.0154. PLEDGE OF SURCHARGES TO GUARANTEE
OBLIGATIONS. A local government corporation acting as an endorsing
municipality or endorsing county under this subtitle may guarantee
the corporation’s obligations under a games support contract or
event support contract by pledging surcharges from user fees,
including parking or ticket fees, charged in connection with the
games or event and related activities. (V.A.C.S. Art. 5190.14,
Sec. 12(d).)
SUBCHAPTER E. CRIMINAL PENALTIES
Sec. 475.0201. OFFENSE OF BRIBERY. (a) In this section,
“benefit” has the meaning assigned by Section 36.01, Penal Code.
(b) A person commits an offense if the person intentionally
or knowingly offers, confers, or agrees to confer on another
person, or solicits, accepts, or agrees to accept from another
person, any benefit as consideration for the recipient’s decision,
opinion, recommendation, vote, or other exercise of discretion as a
member or employee of a local organizing committee or site
selection organization.
(c) It is a defense to prosecution under Subsection (b) that
the benefit conferred is a meal or entertainment reported under
Section 475.0103(a)(2)(B).
(d) It is not a defense to prosecution under Subsection (b)
that a person whom the actor sought to influence was not qualified
to act as the actor intended the person to act.
(e) It is not a defense to prosecution under Subsection (b)
that the benefit is not offered or conferred or that the benefit is
not solicited or accepted until after:
(1) the decision, opinion, recommendation, vote, or
other exercise of discretion has occurred; or
(2) the person whom the actor sought to influence is no
longer a member of the local organizing committee or a site
selection organization.
(f) An offense under this section is a felony of the second degree. (V.A.C.S. Art. 5190.14, Sec. 11.)

CHAPTER 476. PAN AMERICAN GAMES TRUST FUND
SUBCHAPTER A. GENERAL PROVISIONS
Sec. 476.0001. DEFINITIONS
Sec. 476.0002. ELIGIBILITY AS ENDORSING MUNICIPALITY
SUBCHAPTER B. STATE ACTIONS RELATING TO GAMES
Sec. 476.0051. DETERMINATION OF INCREMENTAL INCREASE
IN CERTAIN TAX RECEIPTS
Sec. 476.0052. TIME FOR DETERMINATION
Sec. 476.0053. DESIGNATION OF MARKET AREA
Sec. 476.0054. ESTIMATE OF TAX REVENUE CREDITED TO
TRUST FUND
SUBCHAPTER C. TRUST FUND ESTABLISHMENT, CONTRIBUTION, AND
LIMITATION
Sec. 476.0101. PAN AMERICAN GAMES TRUST FUND
Sec. 476.0102. DEPOSIT OF MUNICIPAL TAX REVENUE
Sec. 476.0103. STATE TAX REVENUE
Sec. 476.0104. LIMITATION ON TRANSFERS AND DEPOSITS TO
TRUST FUND
SUBCHAPTER D. DISBURSEMENTS FROM TRUST FUND
Sec. 476.0151. DISBURSEMENT WITHOUT APPROPRIATION
Sec. 476.0152. DISBURSEMENT FROM TRUST FUND
Sec. 476.0153. ALLOWABLE EXPENSES
Sec. 476.0154. TRANSFER AND REMITTANCE OF REMAINING
TRUST FUND MONEY
SUBCHAPTER E. LOCAL POWERS AND DUTIES RELATING TO GAMES
Sec. 476.0201. REQUIRED INFORMATION
Sec. 476.0202. PLEDGE OF SURCHARGES TO GUARANTEE
OBLIGATIONS
SUBCHAPTER F. LIMITATIONS ON JOINT LIABILITY
Sec. 476.0251. LIMITATION AMOUNTS
CHAPTER 476. PAN AMERICAN GAMES TRUST FUND
SUBCHAPTER A. GENERAL PROVISIONS
Sec. 476.0001. DEFINITIONS. In this chapter:
(1) “Endorsing municipality” means a municipality
that authorizes a bid by a local organizing committee for selection
of the municipality as the site of the games.
(2) “Games” means the Pan American Games.
(3) “Site selection organization” means:
(A) the Pan American Sports Organization; or
(B) the United States Olympic Committee.
(4) “Trust fund” means the Pan American Games trust
fund established by this chapter. (V.A.C.S. Art. 5190.14, Secs.
4(a)(1) as amended Acts 78th Leg., R.S., Ch. 814, (2), (3) (part);
New.)
Sec. 476.0002. ELIGIBILITY AS ENDORSING MUNICIPALITY. Only
a municipality with a population of 850,000 or more is eligible as
an endorsing municipality under this chapter. (V.A.C.S. Art.
5190.14, Sec. 4(a)(3) (part).)
SUBCHAPTER B. STATE ACTIONS RELATING TO GAMES
Sec. 476.0051. DETERMINATION OF INCREMENTAL INCREASE IN
CERTAIN TAX RECEIPTS. (a) After a site selection organization
selects a site for the games in this state in accordance with an
application by a local organizing committee acting on behalf of an
endorsing municipality, the office shall determine for each
subsequent calendar quarter the incremental increases in the
following tax receipts that the office determines are directly
attributable to the preparation for and presentation of the games
and related events:
(1) the receipts to this state from the taxes imposed
under Chapters 151, 152, 156, and 183, Tax Code, and under Title 5,
Alcoholic Beverage Code, in the market areas designated under
Section 476.0053;
(2) the receipts collected by this state for the
endorsing municipality from the sales and use tax imposed by the
municipality under Section 321.101(a), Tax Code; and
(3) the receipts collected by the endorsing
municipality from the municipality’s hotel occupancy tax imposed
under Chapter 351, Tax Code.
(b) The office shall make the determination required by
Subsection (a) in accordance with procedures the office develops.
(V.A.C.S. Art. 5190.14, Sec. 4(b) (part).)
Sec. 476.0052. TIME FOR DETERMINATION. The office shall
determine the incremental increase in tax receipts under Section
476.0051 after the first occurrence of a measurable economic impact
in this state resulting from the preparation for the games, as
determined by the office, but not later than one year before the
scheduled opening event of the games. (V.A.C.S. Art. 5190.14, Sec.
4(b) (part).)
Sec. 476.0053. DESIGNATION OF MARKET AREA. (a) For
purposes of Section 476.0051(a)(1), the office shall designate as a
market area for the games each area in which the office determines
there is a reasonable likelihood of measurable economic impact
directly attributable to the preparation for and presentation of
the games and related events. The office shall include areas likely
to provide venues, accommodations, and services in connection with
the games based on the proposal the local organizing committee
provides under Section 475.0052.
(b) The office shall determine the geographic boundaries of
each market area.
(c) The endorsing municipality selected as the site for the
games must be included in a market area for the games. (V.A.C.S.
Art. 5190.14, Sec. 4(c).)
Sec. 476.0054. ESTIMATE OF TAX REVENUE CREDITED TO TRUST
FUND. (a) Not later than September 1 of the year that is eight
years before the year the games would be held in this state, the
office shall provide an estimate of the total amount of municipal
and state tax revenue that would be transferred or deposited to the
trust fund before January 1 of the year following the year the games
would be held if the games were held in this state at a site selected
in accordance with an application by a local organizing committee.
(b) The office shall provide the estimate on request to a
local organizing committee.
(c) A local organizing committee may submit the office’s
estimate to a site selection organization. (V.A.C.S. Art. 5190.14,
Sec. 4(i).)
SUBCHAPTER C. TRUST FUND ESTABLISHMENT, CONTRIBUTION, AND
LIMITATION
Sec. 476.0101. PAN AMERICAN GAMES TRUST FUND. The Pan
American Games trust fund is established outside the state
treasury. The trust fund is held in trust by the comptroller for
administration of this subtitle. (V.A.C.S. Art. 5190.14, Sec. 4(f)
(part).)
Sec. 476.0102. DEPOSIT OF MUNICIPAL TAX REVENUE. (a)
Subject to Section 476.0104, the endorsing municipality shall
deposit to the trust fund the amount of the municipality’s hotel
occupancy tax revenue determined under Section 476.0051(a)(3). The
endorsing municipality shall deposit the hotel occupancy tax
revenue to the trust fund at least quarterly.
(b) To guarantee the joint obligations of this state and the
endorsing municipality under a games support contract and this
subtitle, the comptroller, at the direction of the office, shall
retain the amount of municipal sales and use tax revenue determined
under Section 476.0051(a)(2) from the amounts otherwise required to
be sent to the municipality under Section 321.502, Tax Code, and,
subject to Section 476.0104, deposit the retained tax revenue to
the trust fund.
(c) The comptroller shall begin retaining the municipal
sales and use tax revenue with the first distribution of that tax
revenue that occurs after the date the office makes the
determination under Section 476.0051(a)(2).
(d) The comptroller shall discontinue retaining the
municipal sales and use tax revenue 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 trust fund
equals 14 percent of the maximum amount of municipal and state tax
revenue that may be transferred or deposited to the trust fund under
Section 476.0104. (V.A.C.S. Art. 5190.14, Secs. 4(d), (f) (part).)
Sec. 476.0103. STATE TAX REVENUE. (a) At the time the
endorsing municipality deposits to the trust fund its hotel
occupancy tax revenue under Section 476.0102(a), the comptroller,
at the direction of the office, shall transfer to the trust fund a
portion of the state tax revenue determined under Section
476.0051(a)(1) in an amount equal to 6.25 multiplied by the amount
of that municipal hotel occupancy tax revenue.
(b) At the time the comptroller deposits to the trust fund
the municipal sales and use tax revenue under Section 476.0102(b),
the comptroller, at the direction of the office, shall transfer to
the trust fund a portion of the state tax revenue determined under
Section 476.0051(a)(1) in an amount equal to 6.25 multiplied by the
amount of that municipal sales and use tax revenue.
(c) The comptroller shall discontinue transferring to the
trust fund any state tax revenue determined under Section
476.0051(a)(1) 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 trust
fund equals 86 percent of the maximum amount of municipal and state
tax revenue that may be transferred or deposited to the trust fund
under Section 476.0104. (V.A.C.S. Art. 5190.14, Sec. 4(f) (part).)
Sec. 476.0104. LIMITATION ON TRANSFERS AND DEPOSITS TO
TRUST FUND. The total amount of municipal and state tax revenue
transferred or deposited to the trust fund may not exceed $20
million. (V.A.C.S. Art. 5190.14, Sec. 4(m) (part).)
SUBCHAPTER D. DISBURSEMENTS FROM TRUST FUND
Sec. 476.0151. DISBURSEMENT WITHOUT APPROPRIATION. Money
in the trust fund may be spent by the office without appropriation
only as provided by this subtitle. (V.A.C.S. Art. 5190.14, Sec.
4(f) (part).)
Sec. 476.0152. DISBURSEMENT FROM TRUST FUND. (a) The
office may make a disbursement from the trust fund only if the
office certifies that the disbursement is for a purpose for which
this state and the endorsing municipality are jointly obligated
under a games support contract or another agreement providing
assurances from the office or the municipality to a site selection
organization.
(b) On a certification described by Subsection (a), the
office shall satisfy the obligation:
(1) first, from municipal revenue deposited to the
trust fund and any interest earned on that municipal revenue; and
(2) if the municipal revenue is insufficient to
satisfy the entire deficit, from state revenue transferred to the
trust fund and any interest earned on that state revenue in an
amount sufficient to satisfy the portion of the deficit not covered
by the municipal revenue. (V.A.C.S. Art. 5190.14, Secs. 4(g)
(part), (j), (k).)
Sec. 476.0153. ALLOWABLE EXPENSES. The office may use
money in the trust fund only to fulfill joint obligations of this
state and the endorsing municipality to a site selection
organization under a games support contract or another agreement
providing assurances from the office or municipality to a site
selection organization. (V.A.C.S. Art. 5190.14, Sec. 4(g).)
Sec. 476.0154. TRANSFER AND REMITTANCE OF REMAINING TRUST
FUND MONEY. (a) On January 1 of the second year following the year
in which the games are held in this state, the comptroller, at the
direction of the office, shall transfer to the general revenue fund
the amount of state revenue remaining in the trust fund plus any
interest earned on that state revenue.
(b) The comptroller shall remit to the endorsing
municipality any money remaining in the trust fund after the
required amount is transferred under Subsection (a). (V.A.C.S.
Art. 5190.14, Sec. 4(l).)
SUBCHAPTER E. LOCAL POWERS AND DUTIES RELATING TO GAMES
Sec. 476.0201. REQUIRED INFORMATION. (a) A local
organizing committee shall provide information required by the
office to fulfill the office’s duties under this subtitle,
including:
(1) annual audited statements of any committee
financial records required by a site selection organization; and
(2) data obtained by the committee relating to:
(A) attendance at the games; and
(B) the economic impact of the games.
(b) A local organizing committee must provide any annual
audited financial statement required by the office not later than
the end of the fourth month after the last day of the period covered
by the financial statement. (V.A.C.S. Art. 5190.14, Sec. 4(h).)
Sec. 476.0202. PLEDGE OF SURCHARGES TO GUARANTEE
OBLIGATIONS. An endorsing municipality may guarantee its
obligations under a games support contract and this subtitle by
pledging, in addition to municipal sales and use tax revenue
retained under Section 476.0102(b), surcharges from user fees
charged in connection with presentation of the games, including
parking or ticket fees. (V.A.C.S. Art. 5190.14, Sec. 4(e).)
SUBCHAPTER F. LIMITATIONS ON JOINT LIABILITY
Sec. 476.0251. LIMITATION AMOUNTS. The joint liability of
this state and the endorsing municipality under a joinder agreement
and any other games support contracts entered into under this
subtitle may not exceed the lesser of:
(1) $20 million; or
(2) the total amount of revenue transferred or
deposited to the trust fund and interest earned on the trust fund. (V.A.C.S. Art. 5190.14, Sec. 4(m) (part).)

CHAPTER 477. OLYMPIC GAMES TRUST FUND
SUBCHAPTER A. GENERAL PROVISIONS
Sec. 477.0001. DEFINITIONS
Sec. 477.0002. ELIGIBILITY AS ENDORSING MUNICIPALITY
SUBCHAPTER B. STATE ACTIONS RELATING TO GAMES
Sec. 477.0051. DETERMINATION OF INCREMENTAL INCREASE
IN CERTAIN TAX RECEIPTS
Sec. 477.0052. TIME FOR DETERMINATION
Sec. 477.0053. DESIGNATION OF MARKET AREA
Sec. 477.0054. ESTIMATE OF TAX REVENUE CREDITED TO
TRUST FUND
SUBCHAPTER C. TRUST FUND ESTABLISHMENT, CONTRIBUTION, AND
LIMITATION
Sec. 477.0101. OLYMPIC GAMES TRUST FUND
Sec. 477.0102. DEPOSIT OF MUNICIPAL AND COUNTY TAX
REVENUE
Sec. 477.0103. STATE TAX REVENUE
Sec. 477.0104. LIMITATION ON TRANSFERS AND DEPOSITS TO
TRUST FUND
SUBCHAPTER D. DISBURSEMENTS FROM TRUST FUND
Sec. 477.0151. DISBURSEMENT WITHOUT APPROPRIATION
Sec. 477.0152. DISBURSEMENT FROM TRUST FUND
Sec. 477.0153. ALLOWABLE EXPENSES
Sec. 477.0154. PROHIBITED DISBURSEMENT
Sec. 477.0155. TRANSFER AND REMITTANCE OF REMAINING
TRUST FUND MONEY
SUBCHAPTER E. LOCAL POWERS AND DUTIES RELATING TO GAMES
Sec. 477.0201. REQUIRED INFORMATION
Sec. 477.0202. PLEDGE OF SURCHARGES TO GUARANTEE
OBLIGATIONS
Sec. 477.0203. MUNICIPAL OR COUNTY ELECTION
SUBCHAPTER F. LIMITATIONS ON JOINT LIABILITY
Sec. 477.0251. LIMITATION AMOUNTS
CHAPTER 477. OLYMPIC GAMES TRUST FUND
SUBCHAPTER A. GENERAL PROVISIONS
Sec. 477.0001. DEFINITIONS. In this chapter:
(1) “Endorsing county” means a county that:
(A) contains all or part of a municipality
described by Section 477.0002; or
(B) is adjacent to a county described by
Paragraph (A).
(2) “Endorsing municipality” means a municipality
that authorizes a bid by a local organizing committee for selection
of the municipality as the site of the games.
(3) “Games” means the Olympic Games.
(4) “Site selection organization” means:
(A) the International Olympic Committee; or
(B) the United States Olympic Committee.
(5) “Trust fund” means the Olympic Games trust fund
established by this chapter. (V.A.C.S. Art. 5190.14, Secs. 4(a)(3)
(part), 5(a)(1), (2), (3) (part), (4); New.)
Sec. 477.0002. ELIGIBILITY AS ENDORSING MUNICIPALITY. Only
a municipality with a population of 850,000 or more is eligible as
an endorsing municipality under this chapter. (V.A.C.S. Art.
5190.14, Secs. 4(a)(3) (part), 5(a)(3) (part).)
SUBCHAPTER B. STATE ACTIONS RELATING TO GAMES
Sec. 477.0051. DETERMINATION OF INCREMENTAL INCREASE IN
CERTAIN TAX RECEIPTS. (a) After a site selection organization
selects a site for the games in this state in accordance with an
application by a local organizing committee, the office shall
determine for each subsequent calendar quarter the incremental
increases in the following tax receipts that the office determines
are directly attributable to the preparation for and presentation
of the games and related events:
(1) the receipts to this state from the taxes imposed
under Chapters 151, 152, 156, and 183, Tax Code, and under Title 5,
Alcoholic Beverage Code, in the market areas designated under
Section 477.0053;
(2) the receipts collected by this state for each
endorsing municipality from the sales and use tax imposed by the
municipality under Section 321.101(a), Tax Code, and the mixed
beverage tax revenue to be received by the municipality under
Section 183.051(b), Tax Code;
(3) the receipts collected by this state for 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 received by the county under Section 183.051(b), Tax Code;
(4) the receipts collected by each endorsing
municipality from the hotel occupancy tax imposed under Chapter
351, Tax Code; and
(5) the receipts collected by each endorsing county
from the hotel occupancy tax imposed under Chapter 352, Tax Code.
(b) The office shall make the determination required by
Subsection (a) in accordance with procedures the office develops.
(V.A.C.S. Art. 5190.14, Sec. 5(b) (part).)
Sec. 477.0052. TIME FOR DETERMINATION. The office shall
determine the incremental increase in tax receipts under Section
477.0051 after the first occurrence of a measurable economic impact
in this state resulting from the preparation for the games, as
determined by the office, but not later than one year before the
scheduled opening event of the games. (V.A.C.S. Art. 5190.14, Sec.
5(b) (part).)
Sec. 477.0053. DESIGNATION OF MARKET AREA. (a) For
purposes of Section 477.0051(a)(1), the office shall designate as a
market area for the games each area in which the office determines
there is a reasonable likelihood of measurable economic impact
directly attributable to the preparation for and presentation of
the games and related events. The office shall include areas likely
to provide venues, accommodations, and services in connection with
the games based on the proposal the local organizing committee
provides under Section 475.0052.
(b) The office shall determine the geographic boundaries of
each market area.
(c) Each endorsing municipality or endorsing county
selected as the site for the games must be included in a market area
for the games. (V.A.C.S. Art. 5190.14, Sec. 5(c).)
Sec. 477.0054. ESTIMATE OF TAX REVENUE CREDITED TO TRUST
FUND. (a) Before August 31 of the year that is 12 years before the
year the games would be held in this state, or as soon as
practicable after that date, the office shall provide an estimate
of the total amount of municipal, county, and state tax revenue that
would be transferred or deposited to the trust fund if the games
were held in this state at a site selected in accordance with an
application by a local organizing committee.
(b) The office shall provide the estimate on request to a
local organizing committee.
(c) A local organizing committee may submit the office’s
estimate to a site selection organization. (V.A.C.S. Art. 5190.14,
Sec. 5(i).)
SUBCHAPTER C. TRUST FUND ESTABLISHMENT, CONTRIBUTION, AND
LIMITATION
Sec. 477.0101. OLYMPIC GAMES TRUST FUND. The Olympic Games
trust fund is established outside the treasury. The trust fund is
held in trust by the comptroller for the administration of this
subtitle. (V.A.C.S. Art. 5190.14, Sec. 5(f) (part).)
Sec. 477.0102. DEPOSIT OF MUNICIPAL AND COUNTY TAX REVENUE.
(a) Subject to Section 477.0104, each endorsing municipality or
endorsing county shall remit to the comptroller and the
comptroller, at the direction of the office, quarterly shall
deposit to the trust fund the amount of the municipality’s or
county’s hotel occupancy tax revenue determined under Section
477.0051(a)(4) or (5), as applicable.
(b) To guarantee the joint obligations of this state and an
endorsing municipality or endorsing county under a games support
contract and this subtitle, subject to Section 477.0203, the
comptroller, at the direction of the office, shall retain the
amount of sales and use tax revenue and mixed beverage tax revenue
determined under Section 477.0051(a)(2) or (3) 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. Subject to Sections 477.0104 and
477.0203, the comptroller, at the direction of the office, shall
deposit the retained tax revenue to the trust fund for the same
calendar quarter as under Subsection (a).
(c) The comptroller shall begin retaining municipal and
county sales and use tax revenue and mixed beverage tax revenue with
the first distribution of that tax revenue that occurs after the
date the office makes the determination under Section
477.0051(a)(2) or (3).
(d) The comptroller shall discontinue retaining municipal
and county sales and use tax revenue and mixed beverage tax revenue
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 and county sales
and use tax revenue and mixed beverage tax revenue in the trust fund
equals 14 percent of the maximum amount of municipal, county, and
state tax revenue that may be transferred or deposited to the trust
fund under Section 477.0104. (V.A.C.S. Art. 5190.14, Secs. 5(d),
(f) (part).)
Sec. 477.0103. STATE TAX REVENUE. (a) At the time the
comptroller deposits to the trust fund the municipal and county tax
revenue under Section 477.0102(b), the comptroller shall transfer
to the trust fund the state tax revenue determined under Section
477.0051(a)(1) for the quarter.
(b) The comptroller shall discontinue transferring the
amount of state tax revenue determined under Section 477.0051(a)(1)
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 trust
fund equals 86 percent of the maximum amount of municipal, county,
and state tax revenue that may be transferred or deposited to the
trust fund under Section 477.0104. (V.A.C.S. Art. 5190.14, Sec.
5(f) (part).)
Sec. 477.0104. LIMITATION ON TRANSFERS AND DEPOSITS TO
TRUST FUND. The total amount of municipal, county, and state tax
revenue transferred or deposited to the trust fund may not exceed
$100 million. (V.A.C.S. Art. 5190.14, Sec. 5(m) (part).)
SUBCHAPTER D. DISBURSEMENTS FROM TRUST FUND
Sec. 477.0151. DISBURSEMENT WITHOUT APPROPRIATION. Money
in the trust fund may be spent by the office without appropriation
only as provided by this subtitle. (V.A.C.S. Art. 5190.14, Sec.
5(f) (part).)
Sec. 477.0152. DISBURSEMENT FROM TRUST FUND. (a) The
office may make a disbursement from the trust fund only if the
office certifies that the disbursement is for a purpose for which
this state and each endorsing municipality and endorsing county are
jointly obligated under a games support contract or another
agreement providing assurances from the office or an endorsing
municipality or endorsing county to a site selection organization.
(b) On a certification described by Subsection (a), the
office shall satisfy the obligation proportionately from the state
and municipal or county revenue in the trust fund. (V.A.C.S. Art.
5190.14, Secs. 5(j) (part), (k).)
Sec. 477.0153. ALLOWABLE EXPENSES. The office may use
money in the trust fund only to fulfill joint obligations of this
state and each endorsing municipality and endorsing county to a
site selection organization under a games support contract or
another agreement providing assurances from the office or the
municipality or county to a site selection organization. (V.A.C.S.
Art. 5190.14, Sec. 5(g).)
Sec. 477.0154. PROHIBITED DISBURSEMENT. The office may not
make a disbursement from the trust fund that the office determines
would be used to solicit the relocation of a professional sports
franchise located in this state. (V.A.C.S. Art. 5190.14, Sec. 5(j)
(part).)
Sec. 477.0155. TRANSFER AND REMITTANCE OF REMAINING TRUST
FUND MONEY. (a) Two years after the closing event of the games, the
office shall transfer to the general revenue fund the amount of
state revenue remaining in the trust fund plus any interest earned
on that state revenue.
(b) The office 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 under Subsection (a). (V.A.C.S. Art. 5190.14, Sec.
5(l).)
SUBCHAPTER E. LOCAL POWERS AND DUTIES RELATING TO GAMES
Sec. 477.0201. REQUIRED INFORMATION. (a) A local
organizing committee shall provide information required by the
office to fulfill the office’s duties under this subtitle,
including:
(1) annual audited statements of any committee
financial records required by a site selection organization; and
(2) data obtained by the committee relating to:
(A) attendance at the games; and
(B) the economic impact of the games.
(b) A local organizing committee must provide any annual
audited financial statement required by the office not later than
the end of the fourth month after the last day of the period covered
by the financial statement. (V.A.C.S. Art. 5190.14, Sec. 5(h).)
Sec. 477.0202. PLEDGE OF SURCHARGES TO GUARANTEE
OBLIGATIONS. An endorsing municipality or endorsing county may
guarantee its obligations under a games support contract and this
subtitle by pledging, in addition to sales and use tax revenue,
mixed beverage tax revenue, and hotel occupancy tax revenue
retained under Section 477.0102, surcharges from user fees charged
in connection with the presentation of the games, including parking
or ticket fees. (V.A.C.S. Art. 5190.14, Sec. 5(e).)
Sec. 477.0203. MUNICIPAL OR COUNTY ELECTION. (a) 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
trust fund under this chapter. 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 trust fund under this chapter is not approved
by a majority of the voters voting in the election:
(1) the comptroller may not establish the trust fund
under this chapter, may not retain the municipality’s or county’s
tax revenue under Section 477.0102 from amounts otherwise required
to be sent to that municipality or county, and may not transfer any
state tax revenue into the trust fund;
(2) the office is not required to determine the
incremental increase in municipal, county, or state tax revenue
under Section 477.0051; and
(3) the office 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.
(c) Notwithstanding any other provisions of this subtitle,
an endorsing municipality or endorsing county is not required to
hold an election to contribute its mixed beverage tax revenue or its
hotel occupancy tax revenue to the trust fund under this chapter.
(V.A.C.S. Art. 5190.14, Sec. 6.)
SUBCHAPTER F. LIMITATIONS ON JOINT LIABILITY
Sec. 477.0251. LIMITATION AMOUNTS. The joint liability of
this state and an endorsing municipality or endorsing county under
a joinder agreement and any other games support contracts entered
into under this subtitle may not exceed the lesser of:
(1) $100 million; or
(2) the total amount of revenue transferred or
deposited to the trust fund and interest earned on the trust fund. (V.A.C.S. Art. 5190.14, Sec. 5(m) (part).)

CHAPTER 478. MAJOR EVENTS REIMBURSEMENT PROGRAM
SUBCHAPTER A. GENERAL PROVISIONS
Sec. 478.0001. DEFINITIONS
Sec. 478.0002. RULES
Sec. 478.0003. CONSTRUCTION OF CHAPTER
SUBCHAPTER B. ELIGIBILITY
Sec. 478.0051. EVENTS ELIGIBLE FOR FUNDING
Sec. 478.0052. SINGLE EVENT CLASSIFICATION FOR
ELIGIBILITY PURPOSES
Sec. 478.0053. EXEMPTION FROM CERTAIN ELIGIBILITY
REQUIREMENT FOR CERTAIN LARGE VENUES
SUBCHAPTER C. STATE ACTIONS RELATING TO EVENTS
Sec. 478.0101. PREREQUISITES FOR OFFICE ACTION
Sec. 478.0102. DETERMINATION OF INCREMENTAL INCREASE
IN CERTAIN TAX RECEIPTS
Sec. 478.0103. TIME FOR DETERMINATION REQUEST
Sec. 478.0104. TIME FOR DETERMINATION
Sec. 478.0105. DESIGNATION OF MARKET AREA
Sec. 478.0106. ESTIMATE OF TAX REVENUE CREDITED TO
FUND
Sec. 478.0107. ECONOMIC IMPACT STUDY
Sec. 478.0108. DISTRIBUTION AND PUBLICATION OF PLAN TO
PREVENT TRAFFICKING OF PERSONS IN
CONNECTION WITH EVENT
SUBCHAPTER D. FUND ESTABLISHMENT AND CONTRIBUTIONS
Sec. 478.0151. MAJOR EVENTS REIMBURSEMENT PROGRAM FUND
Sec. 478.0152. DEPOSIT OF MUNICIPAL AND COUNTY TAX
REVENUE
Sec. 478.0153. OTHER LOCAL MONEY
Sec. 478.0154. SURCHARGES AND USER FEES
Sec. 478.0155. STATE TAX REVENUE
SUBCHAPTER E. DISBURSEMENTS FROM FUND
Sec. 478.0201. DISBURSEMENT WITHOUT APPROPRIATION
Sec. 478.0202. DISBURSEMENT FROM FUND
Sec. 478.0203. REDUCTION OF DISBURSEMENT AMOUNT
Sec. 478.0204. ALLOWABLE EXPENSES
Sec. 478.0205. LIMITATION ON CERTAIN DISBURSEMENTS
Sec. 478.0206. PROHIBITED DISBURSEMENT
Sec. 478.0207. REMITTANCE OF REMAINING FUND MONEY
SUBCHAPTER F. LOCAL POWERS AND DUTIES RELATING TO EVENTS
Sec. 478.0251. REQUIRED INFORMATION
Sec. 478.0252. ISSUANCE OF NOTES
Sec. 478.0253. PLEDGE OF SURCHARGES TO GUARANTEE
OBLIGATIONS
CHAPTER 478. MAJOR EVENTS REIMBURSEMENT PROGRAM
SUBCHAPTER A. GENERAL PROVISIONS
Sec. 478.0001. DEFINITIONS. In this chapter:
(1) “Endorsing county” means:
(A) a county that contains a site selected by a
site selection organization for an event; 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 office; 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 an event; 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 office; and
(iii) is a party to an event support
contract.
(3) “Event” means any of the following and includes
any activity related to or associated with the following:
(A) the Academy of Country Music Awards;
(B) the Amateur Athletic Union Junior Olympic
Games;
(C) the Breeders’ Cup World Championships;
(D) a game of the College Football Playoff or its
successor;
(E) an Elite Rodeo Association World
Championship;
(F) a Formula One automobile race;
(G) 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 at least
125,000;
(H) the Major League Baseball All-Star Game;
(I) the Major League Soccer All-Star Game or the
Major League Soccer Cup;
(J) a mixed martial arts championship;
(K) the Moto Grand Prix of the United States;
(L) the National Association for Stock Car Auto
Racing (NASCAR):
(i) All-Star Race; or
(ii) season-ending Championship Race;
(M) the National Basketball Association All-Star
Game;
(N) a National Collegiate Athletic Association
Final Four tournament game;
(O) the National Collegiate Athletic Association
men’s or women’s lacrosse championships;
(P) a national collegiate championship of an
amateur sport sanctioned by the national governing body of the
sport that is recognized by the United States Olympic Committee;
(Q) the National Cutting Horse Association
Triple Crown;
(R) the National Hockey League All-Star Game;
(S) a national political convention of the
Republican National Committee or the Democratic National
Committee;
(T) an Olympic activity, including a Junior or
Senior activity, training program, or feeder program sanctioned by
the United States Olympic Committee’s Community Olympic
Development Program;
(U) a presidential general election debate;
(V) the Professional Rodeo Cowboys Association
National Finals Rodeo;
(W) a Super Bowl;
(X) the United States Open Championship;
(Y) a World Cup soccer game or the World Cup
soccer tournament;
(Z) the World Games; or
(AA) the X Games.
(4) “Event support contract” means a joinder
undertaking, joinder agreement, or similar contract executed by a
site selection organization and a local organizing committee, an
endorsing municipality, or an endorsing county.
(5) “Fund” means the major events reimbursement
program fund.
(6) “Program” means the major events reimbursement
program.
(7) “Site selection organization” means:
(A) the Academy of Country Music;
(B) the Amateur Athletic Union;
(C) the College Football Playoff Administration,
LLC, or its successor;
(D) the Commission on Presidential Debates;
(E) the Democratic National Committee;
(F) Dorna Sports;
(G) the Elite Rodeo Association;
(H) ESPN or an affiliate;
(I) the Federation Internationale de Football
Association (FIFA);
(J) the International World Games Association;
(K) Major League Baseball;
(L) Major League Soccer;
(M) the National Association for Stock Car Auto
Racing (NASCAR);
(N) the National Basketball Association;
(O) the National Collegiate Athletic
Association;
(P) the National Cutting Horse Association;
(Q) the National Football League;
(R) the National Hockey League;
(S) the Professional Rodeo Cowboys Association;
(T) the Republican National Committee;
(U) the Ultimate Fighting Championship;
(V) the United States Golf Association;
(W) the United States Olympic Committee; or
(X) the national governing body of a sport that
is recognized by:
(i) the Federation Internationale de
l’Automobile;
(ii) Formula One Management Limited;
(iii) the National Thoroughbred Racing
Association; or
(iv) the United States Olympic Committee.
(V.A.C.S. Art. 5190.14, Sec. 5A(a); New.)
Sec. 478.0002. RULES. The office may adopt rules necessary
to implement this chapter. (V.A.C.S. Art. 5190.14, Sec. 5A(v).)
Sec. 478.0003. CONSTRUCTION OF CHAPTER. This chapter may
not be construed as creating or requiring a state guarantee of an
obligation imposed on an endorsing municipality, an endorsing
county, or this state under an event support contract or another
agreement relating to hosting an event in this state. (V.A.C.S.
Art. 5190.14, Sec. 5A(o).)
SUBCHAPTER B. ELIGIBILITY
Sec. 478.0051. EVENTS ELIGIBLE FOR FUNDING. (a) Only an
event listed in Section 478.0001(3) is eligible for funding under
this chapter.
(b) A listed event may receive funding through the program
only if:
(1) a site selection organization, after considering
through a highly competitive selection process one or more sites
not in this state, selects a site in this state for the event to be
held:
(A) one time; or
(B) if the event is scheduled under an event
contract or event support contract to be held each year for a period
of years, one time in each year;
(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;
(4) the incremental increase in tax receipts
determined under Section 478.0102 is at least $1 million; and
(5) not later than the 30th day before the first day of
the event, a site selection organization submits a plan to prevent
the trafficking of persons in connection with the event to:
(A) the office of the attorney general; and
(B) the chief of the Texas Division of Emergency
Management. (V.A.C.S. Art. 5190.14, Sec. 5A(a-1) (part).)
Sec. 478.0052. SINGLE EVENT CLASSIFICATION FOR ELIGIBILITY
PURPOSES. For purposes of Section 478.0051, each presidential
general election debate in a series of presidential debates before
a general election is considered a separate, single event.
(V.A.C.S. Art. 5190.14, Sec. 5A(a-3).)
Sec. 478.0053. EXEMPTION FROM CERTAIN ELIGIBILITY
REQUIREMENT FOR CERTAIN LARGE VENUES. Section 478.0051(b)(1) does
not apply to an event described by Section 478.0001(3)(G). If an
endorsing municipality or endorsing county requests the office to
make a determination under Section 478.0102 for an event described
by Section 478.0001(3)(G), the remaining provisions of this chapter
apply to that event as if the event satisfied the eligibility
requirements under Section 478.0051(b)(1). (V.A.C.S. Art.
5190.14, Sec. 5A(a-2).)
SUBCHAPTER C. STATE ACTIONS RELATING TO EVENTS
Sec. 478.0101. PREREQUISITES FOR OFFICE ACTION. The office
may not undertake any duty imposed by this chapter unless:
(1) the municipality or county in which an event will
be located submits a request;
(2) the event meets the requirements for funding under
Section 478.0051 and all other funding requirements under this
chapter; and
(3) the request is accompanied by documentation from a
site selection organization selecting the site for the event.
(V.A.C.S. Art. 5190.14, Sec. 5A(p).)
Sec. 478.0102. DETERMINATION OF INCREMENTAL INCREASE IN
CERTAIN TAX RECEIPTS. (a) After a site selection organization
selects a site for an event in this state in accordance with an
application by a local organizing committee, endorsing
municipality, or endorsing county and on request of a local
organizing committee, endorsing municipality, or endorsing county,
the office shall determine the incremental increases in the
following tax receipts that the office determines are directly
attributable to the preparation for and presentation of the event
for a one-year period that begins two months before the date on
which the event will begin:
(1) the receipts to this state from taxes imposed
under Chapters 151, 152, 156, and 183, Tax Code, and under Title 5,
Alcoholic Beverage Code, in the market areas designated under
Section 478.0105;
(2) the receipts collected by this state for 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;
(3) the receipts collected by this state for 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;
(4) the receipts collected by each endorsing
municipality in the market area from the hotel occupancy tax
imposed under Chapter 351, Tax Code; and
(5) the receipts collected by each endorsing county in
the market area from the hotel occupancy tax imposed under Chapter
352, Tax Code.
(b) The office shall make the determination required by
Subsection (a) in accordance with procedures the office develops
and shall base that determination on information submitted by a
local organizing committee, endorsing municipality, or endorsing
county.
(c) For an event scheduled to be held each year for a period
of years under an event contract or event support contract, the
office shall calculate the incremental increase in the tax receipts
specified by Subsection (a) as if the event did not occur in the
prior year for purposes of Section 478.0051(b)(4). (V.A.C.S. Art.
5190.14, Secs. 5A(a-1) (part), (b), (b-1) (part).)
Sec. 478.0103. TIME FOR DETERMINATION REQUEST. A request
for a determination of the incremental increase in tax receipts
under Section 478.0102 must be submitted to the office not earlier
than one year and not later than the 45th day before the beginning
date of the event. (V.A.C.S. Art. 5190.14, Sec. 5A(b-1) (part).)
Sec. 478.0104. TIME FOR DETERMINATION. The office shall
determine the incremental increase in tax receipts under Section
478.0102 not later than the 30th day after the date the office
receives the request for that determination and related
information. (V.A.C.S. Art. 5190.14, Sec. 5A(b-1) (part).)
Sec. 478.0105. DESIGNATION OF MARKET AREA. (a) For
purposes of Section 478.0102(a)(1), the office shall designate as a
market area for an event each area in which the office determines
there is a reasonable likelihood of measurable economic impact
directly attributable to the preparation for and presentation of
the event. The office shall include areas likely to provide venues,
accommodations, and services in connection with the event based on
the proposal the local organizing committee provides to the office.
(b) The office shall determine the geographic boundaries of
each market area.
(c) An endorsing municipality or endorsing county selected
as the site for an event must be included in a market area for the
event. (V.A.C.S. Art. 5190.14, Sec. 5A(c).)
Sec. 478.0106. ESTIMATE OF TAX REVENUE CREDITED TO FUND.
(a) Not later than the 30th day after the date a local organizing
committee, endorsing municipality, or endorsing county submits a
request for a determination of the incremental increase in tax
receipts under Section 478.0102, the office shall provide an
estimate of the total amount of tax revenue that would be deposited
to the fund under this chapter in connection with that event if the
event were held in this state at a site selected in accordance with
an application by a local organizing committee, endorsing
municipality, or endorsing county.
(b) A local organizing committee, endorsing municipality,
or endorsing county may submit the office’s estimate to a site
selection organization. (V.A.C.S. Art. 5190.14, Sec. 5A(j).)
Sec. 478.0107. ECONOMIC IMPACT STUDY. (a) Not later than
the 10th month after the last day of an event eligible for
disbursements from the fund, using existing resources, the office
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.
(b) The office shall post on the office’s Internet website:
(1) the results of the study conducted under
Subsection (a), including any source documentation or other
information on which the office relied for the study;
(2) the incremental increase in tax receipts for the
event determined under Section 478.0102 and any source
documentation or information described by Section 478.0251 on which
the office relied to determine that increase;
(3) the documentation described by Section
478.0101(3); and
(4) documentation verifying that:
(A) a request submitted under Section 478.0101 is
complete and certified as complete by the office;
(B) the office considered the information
submitted by a local organizing committee, endorsing municipality,
or endorsing county to determine the incremental increase in tax
receipts under Section 478.0102 as required by Section 478.0102(b);
and
(C) each deadline established under this chapter
was met. (V.A.C.S. Art. 5190.14, Sec. 5A(w).)
Sec. 478.0108. DISTRIBUTION AND PUBLICATION OF PLAN TO
PREVENT TRAFFICKING OF PERSONS IN CONNECTION WITH EVENT. The
office of the attorney general may:
(1) distribute the plan required by Section
478.0051(b)(5) to appropriate law enforcement agencies and the
office of the governor; and
(2) publish the plan on the Internet website of the
office of the attorney general. (V.A.C.S. Art. 5190.14, Sec.
5A(a-4).)
SUBCHAPTER D. FUND ESTABLISHMENT AND CONTRIBUTIONS
Sec. 478.0151. MAJOR EVENTS REIMBURSEMENT PROGRAM FUND.
The major events reimbursement program fund is established outside
the state treasury and is held in trust by the comptroller for
administration of this subtitle. (V.A.C.S. Art. 5190.14, Sec. 5A(d)
(part).)
Sec. 478.0152. DEPOSIT OF MUNICIPAL AND COUNTY TAX REVENUE.
(a) Each endorsing municipality or endorsing county participating
in the program shall remit to the comptroller and the comptroller
shall deposit into a trust fund created by the comptroller, at the
direction of the office, and designated as the major events
reimbursement program fund the amount of the municipality’s or
county’s hotel occupancy tax revenue determined under Section
478.0102(a)(4) or (5), less any amount of the revenue that the
municipality or county determines is necessary to meet the
obligations of the municipality or county.
(b) The comptroller, at the direction of the office, shall
retain the amount of sales and use tax revenue and mixed beverage
tax revenue determined under Section 478.0102(a)(2) or (3) 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, less any amount of the
revenue that the municipality or county determines is necessary to
meet the obligations of the municipality or county, and shall
deposit the retained tax revenue to the fund.
(c) The comptroller shall begin retaining and depositing
the municipal and county tax revenue:
(1) with the first distribution of that tax revenue
that occurs after the first day of the one-year period described by
Section 478.0102(a); or
(2) at a time the office otherwise determines to be
practicable.
(d) The comptroller shall discontinue retaining the
municipal and county tax revenue when the amount of the applicable
tax revenue determined under Section 478.0102(a)(2) or (3) has been
retained. (V.A.C.S. Art. 5190.14, Sec. 5A(d) (part).)
Sec. 478.0153. OTHER LOCAL MONEY. (a) In lieu of the
municipal and county tax revenues remitted or retained under
Section 478.0152, an endorsing municipality or endorsing county may
remit to the office for deposit to the fund other local money in an
amount equal to the total amount of municipal and county tax revenue
determined under Sections 478.0102(a)(2)-(5).
(b) An endorsing municipality or endorsing county must
remit the other local money not later than the 90th day after the
last day of an event eligible for funding under the program.
(c) For purposes of Section 478.0155, the amount deposited
under this section is considered remitted local revenue. (V.A.C.S.
Art. 5190.14, Sec. 5A(d-1).)
Sec. 478.0154. SURCHARGES AND USER FEES. An endorsing
municipality or endorsing county may collect and remit to the
office surcharges and user fees attributable to an event for
deposit to the fund. (V.A.C.S. Art. 5190.14, Sec. 5A(e) (part).)
Sec. 478.0155. STATE TAX REVENUE. (a) The comptroller, at
the direction of the office, shall transfer to the fund a portion of
the state tax revenue in an amount equal to the prevailing state
sales tax rate multiplied by the amount of the local revenue
retained or remitted under this chapter, 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.
(b) The amount transferred under Subsection (a) may not
exceed the incremental increase in tax receipts determined under
Section 478.0102(a)(1). (V.A.C.S. Art. 5190.14, Sec. 5A(f).)
SUBCHAPTER E. DISBURSEMENTS FROM FUND
Sec. 478.0201. DISBURSEMENT WITHOUT APPROPRIATION. Money
in the fund may be disbursed by the office without appropriation
only as provided by this chapter. (V.A.C.S. Art. 5190.14, Sec.
5A(d) (part).)
Sec. 478.0202. DISBURSEMENT FROM FUND. (a) After approval
of each contributing endorsing municipality and endorsing county,
the office may make a disbursement from the fund for a purpose for
which a local organizing committee, an endorsing municipality, an
endorsing county, or this state is obligated under a games support
contract or event support contract.
(b) In considering whether to make a disbursement from the
fund, the office 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.
(c) If the office makes a disbursement from the fund, the
office shall satisfy the obligation proportionately from the local
and state revenue in the fund. (V.A.C.S. Art. 5190.14, Secs. 5A(k)
(part), (l).)
Sec. 478.0203. REDUCTION OF DISBURSEMENT AMOUNT. (a)
After the conclusion of an event, the office shall compare
information on the actual attendance figures provided under Section
478.0251 with the estimated attendance numbers used to determine
the incremental increase in tax receipts under Section 478.0102.
If the actual attendance figures are significantly lower than the
estimated attendance numbers, the office may reduce the amount of a
disbursement from the fund for an endorsing entity:
(1) in proportion to the discrepancy between the
actual and estimated attendance; and
(2) in proportion to the amount the entity contributed
to the fund.
(b) The office by rule shall:
(1) define “significantly lower” for purposes of this
section; and
(2) provide the manner in which the office may
proportionately reduce a disbursement.
(c) This section does not affect the remittance under
Section 478.0207 of any money remaining in the fund. (V.A.C.S. Art.
5190.14, Sec. 5A(y).)
Sec. 478.0204. ALLOWABLE EXPENSES. (a) Money in the fund
may be used to:
(1) pay the principal of and interest on notes issued
under Section 478.0252; and
(2) fulfill obligations of an endorsing municipality,
an endorsing county, or this state to a site selection organization
under a games support contract or event support contract.
(b) Subject to Sections 478.0202 and 478.0205, the
obligations described by Subsection (a)(2) may include the payment
of:
(1) the costs relating to the preparations necessary
or desirable for conducting the event; and
(2) the costs of conducting the event, including the
costs of an improvement or renovation to an existing facility and
the costs of the acquisition or construction of a new facility or
other facility. (V.A.C.S. Art. 5190.14, Sec. 5A(h).)
Sec. 478.0205. LIMITATION ON CERTAIN DISBURSEMENTS. (a) A
disbursement from the fund is limited to five percent of the cost of
a structural improvement or a fixture if:
(1) an obligation is incurred under a games support
contract or event support contract to make the improvement or add
the fixture to a site for an event; and
(2) the improvement or fixture is expected to derive
most of its value in subsequent uses of the site for future events.
(b) The remainder of an obligation described by Subsection
(a) is not eligible for a disbursement from the fund, unless the
obligation is for an improvement or fixture for a publicly owned
facility. (V.A.C.S. Art. 5190.14, Sec. 5A(k) (part).)
Sec. 478.0206. PROHIBITED DISBURSEMENT. The office may not
make a disbursement from the fund that the office determines would
be used to solicit the relocation of a professional sports
franchise located in this state. (V.A.C.S. Art. 5190.14, Sec.
5A(k) (part).)
Sec. 478.0207. REMITTANCE OF REMAINING FUND MONEY. On
payment of all municipal, county, or state obligations under a
games support contract or event support contract related to the
location of an event in this state, the office shall remit to each
endorsing entity, in proportion to the amount contributed by the
entity, any money remaining in the fund. (V.A.C.S. Art. 5190.14,
Sec. 5A(m).)
SUBCHAPTER F. LOCAL POWERS AND DUTIES RELATING TO EVENTS
Sec. 478.0251. REQUIRED INFORMATION. (a) A local
organizing committee, endorsing municipality, or endorsing county
shall provide information required by the office to fulfill the
office’s duties under this chapter, including:
(1) annual audited statements of any financial records
required by a site selection organization; and
(2) data obtained by the local organizing committee,
an endorsing municipality, or an endorsing county relating to:
(A) 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
(B) the economic impact of the event.
(b) A local organizing committee, endorsing municipality,
or endorsing county must provide an annual audited financial
statement required by the office not later than the end of the
fourth month after the last day of the period covered by the
financial statement.
(c) After the conclusion of an event and on the office’s
request, a local organizing committee, endorsing municipality, or
endorsing county must provide information about the event, such as
attendance figures, including an estimate of the number of people
who attended the event who are not residents of this state,
financial information, or other public information held by the
committee, municipality, or county that the office considers
necessary. (V.A.C.S. Art. 5190.14, Sec. 5A(i).)
Sec. 478.0252. ISSUANCE OF NOTES. (a) To meet its
obligations under a games 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.
(b) An endorsing municipality or endorsing county may
provide that the notes be paid from and secured by:
(1) amounts on deposit or amounts to be deposited to
the fund; or
(2) surcharges from user fees charged in connection
with the event, including parking or ticket fees.
(c) A note issued must mature not later than the seventh
anniversary of the date of issuance. (V.A.C.S. Art. 5190.14, Sec.
5A(g).)
Sec. 478.0253. PLEDGE OF SURCHARGES TO GUARANTEE
OBLIGATIONS. An endorsing municipality or endorsing county may
guarantee its obligations under an event support contract and this
chapter by pledging, in addition to the tax revenue deposited under
Section 478.0152, surcharges from user fees charged in connection
with the event, including parking or ticket fees. (V.A.C.S. Art. 5190.14, Sec. 5A(e) (part).)

CHAPTER 479. MOTOR SPORTS RACING TRUST FUND
SUBCHAPTER A. GENERAL PROVISIONS
Sec. 479.0001. DEFINITIONS
Sec. 479.0002. CONSTRUCTION OF CHAPTER
Sec. 479.0003. APPLICABILITY OF PROVISIONS RELATING TO
GAMES
SUBCHAPTER B. STATE ACTIONS RELATING TO MOTOR SPORTS RACING EVENTS
Sec. 479.0051. PREREQUISITES FOR OFFICE ACTION
Sec. 479.0052. DETERMINATION OF INCREMENTAL INCREASE
IN CERTAIN TAX RECEIPTS
Sec. 479.0053. TIME FOR DETERMINATION
Sec. 479.0054. DESIGNATION OF MARKET AREA
Sec. 479.0055. ESTIMATE OF TAX REVENUE CREDITED TO
TRUST FUND
SUBCHAPTER C. TRUST FUND ESTABLISHMENT AND CONTRIBUTIONS
Sec. 479.0101. MOTOR SPORTS RACING TRUST FUND
Sec. 479.0102. DEPOSIT OF MUNICIPAL AND COUNTY TAX
REVENUE
Sec. 479.0103. STATE TAX REVENUE
SUBCHAPTER D. DISBURSEMENTS FROM TRUST FUND
Sec. 479.0151. DISBURSEMENT WITHOUT APPROPRIATION
Sec. 479.0152. DISBURSEMENT FROM TRUST FUND
Sec. 479.0153. ALLOWABLE EXPENSES
Sec. 479.0154. PROHIBITED DISBURSEMENT
Sec. 479.0155. REMITTANCE OF REMAINING TRUST FUND
MONEY
SUBCHAPTER E. LOCAL POWERS AND DUTIES RELATING TO MOTOR SPORTS
RACING EVENTS
Sec. 479.0201. REQUIRED INFORMATION
Sec. 479.0202. ISSUANCE OF NOTES
Sec. 479.0203. PLEDGE OF SURCHARGES TO GUARANTEE
OBLIGATIONS
CHAPTER 479. MOTOR SPORTS RACING TRUST FUND
SUBCHAPTER A. GENERAL PROVISIONS
Sec. 479.0001. DEFINITIONS. In this chapter:
(1) “Endorsing county” means a county that contains a
site selected by a site selection organization for a motor sports
racing event.
(2) “Endorsing municipality” means a municipality
that contains a site selected by a site selection organization for a
motor sports racing event.
(3) “Event support contract” means a joinder
undertaking, joinder agreement, or similar contract executed by a
site selection organization and an endorsing municipality or
endorsing county.
(4) “Motor sports racing event” means a specific
automobile racing event sanctioned by the Automobile Competition
Committee for the United States (ACCUS) and held at a temporary
event venue. The term includes an event or activity held,
sponsored, or endorsed by the site selection organization in
conjunction with the racing event.
(5) “Trust fund” means the motor sports racing trust
fund established by this chapter. (V.A.C.S. Art. 5190.14, Sec.
5B(a); New.)
Sec. 479.0002. CONSTRUCTION OF CHAPTER. This chapter may
not be construed as creating or requiring a state guarantee of an
obligation imposed on an endorsing municipality, an endorsing
county, or this state under a motor sports racing event support
contract or another agreement relating to hosting a motor sports
racing event in this state. (V.A.C.S. Art. 5190.14, Sec. 5B(n).)
Sec. 479.0003. APPLICABILITY OF PROVISIONS RELATING TO
GAMES. Any provision of this subtitle applicable to games as
defined by Section 475.0001 also applies to a motor sports racing
event. (V.A.C.S. Art. 5190.14, Sec. 5B(p).)
SUBCHAPTER B. STATE ACTIONS RELATING TO MOTOR SPORTS RACING EVENTS
Sec. 479.0051. PREREQUISITES FOR OFFICE ACTION. The office
may not undertake any duty imposed by this chapter unless:
(1) the municipality and county in which a motor
sports racing event will be held submit a request; and
(2) the request is accompanied by documentation from a
site selection organization selecting the site for the racing
event. (V.A.C.S. Art. 5190.14, Sec. 5B(o).)
Sec. 479.0052. DETERMINATION OF INCREMENTAL INCREASE IN
CERTAIN TAX RECEIPTS. (a) After a site selection organization
selects a site for a motor sports racing event in this state in
accordance with an application by a local organizing committee,
endorsing municipality, or endorsing county, the office shall
determine the incremental increases in the following tax receipts
that the office determines are directly attributable to the
preparation for and presentation of the racing event for the 30-day
period that ends at the end of the day after the date on which the
racing event will be held:
(1) the receipts to this state from taxes imposed
under Chapters 151, 152, 156, and 183, Tax Code, and under Title 5,
Alcoholic Beverage Code, in the market areas designated under
Section 479.0054;
(2) the receipts collected by this state for 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;
(3) the receipts collected by this state for 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;
(4) the receipts collected by each endorsing
municipality in the market area from the hotel occupancy tax
imposed under Chapter 351, Tax Code; and
(5) the receipts collected by each endorsing county in
the market area from the hotel occupancy tax imposed under Chapter
352, Tax Code.
(b) The office shall make the determination required by
Subsection (a) in accordance with procedures the office develops.
(V.A.C.S. Art. 5190.14, Sec. 5B(b) (part).)
Sec. 479.0053. TIME FOR DETERMINATION. The office shall
determine the incremental increase in tax receipts under Section
479.0052 not later than three months before the date of the motor
sports racing event. (V.A.C.S. Art. 5190.14, Sec. 5B(b) (part).)
Sec. 479.0054. DESIGNATION OF MARKET AREA. (a) For
purposes of Section 479.0052(a)(1), the office shall designate as a
market area for a motor sports racing event each area in which the
office determines there is a reasonable likelihood of measurable
economic impact directly attributable to the preparation for and
presentation of the racing event. The office shall include areas
likely to provide venues, accommodations, and services in
connection with the racing event based on a proposal or other
information a local organizing committee, endorsing municipality,
or endorsing county provides to the office.
(b) The office shall determine the geographic boundaries of
each market area.
(c) An endorsing municipality or endorsing county selected
as the site for the motor sports racing event must be included in a
market area for the racing event. (V.A.C.S. Art. 5190.14, Sec.
5B(c).)
Sec. 479.0055. ESTIMATE OF TAX REVENUE CREDITED TO TRUST
FUND. (a) Not later than three months before the date of a motor
sports racing event, the office shall provide an estimate of the
total amount of tax revenue that would be transferred or deposited
to the trust fund under this chapter in connection with that racing
event if the racing event were held in this state at a site selected
in accordance with an application by a local organizing committee,
endorsing municipality, or endorsing county.
(b) The office shall provide the estimate on request to a
local organizing committee, endorsing municipality, or endorsing
county.
(c) A local organizing committee, endorsing municipality,
or endorsing county may submit the office’s estimate to a site
selection organization. (V.A.C.S. Art. 5190.14, Sec. 5B(j).)
SUBCHAPTER C. TRUST FUND ESTABLISHMENT AND CONTRIBUTIONS
Sec. 479.0101. MOTOR SPORTS RACING TRUST FUND. The motor
sports racing trust fund is established outside the state treasury
and is held in trust by the comptroller for administration of this
chapter. (V.A.C.S. Art. 5190.14, Sec. 5B(d) (part).)
Sec. 479.0102. DEPOSIT OF MUNICIPAL AND COUNTY TAX REVENUE.
(a) 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 office, and
designated as the motor sports racing trust fund for the motor
sports racing event the amount of the municipality’s or county’s
hotel occupancy tax revenue determined under Section
479.0052(a)(4) or (5), less any amount of the revenue that the
municipality or county determines is necessary to meet the
obligations of the municipality or county.
(b) The comptroller, at the direction of the office, shall
retain the amount of sales and use tax revenue and mixed beverage
tax revenue determined under Section 479.0052(a)(2) or (3) 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, less any amount of the
revenue that the municipality or county determines is necessary to
meet the obligations of the municipality or county, and shall
deposit the retained tax revenue to the trust fund.
(c) The comptroller shall begin retaining and depositing
the municipal and county tax revenue with the first distribution of
that tax revenue that occurs after the first day of the period
described by Section 479.0052(a).
(d) The comptroller shall discontinue retaining the
municipal and county tax revenue when the amount of the applicable
tax revenue determined under Section 479.0052(a)(2) or (3) has been
retained. (V.A.C.S. Art. 5190.14, Sec. 5B(d) (part).)
Sec. 479.0103. STATE TAX REVENUE. The comptroller, at the
direction of the office, shall transfer to the trust fund a portion
of the state tax revenue determined under Section 479.0052(a)(1) in
an amount equal to 6.25 multiplied by the amount of the municipal
and county 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 Section 479.0102.
(V.A.C.S. Art. 5190.14, Sec. 5B(f).)
SUBCHAPTER D. DISBURSEMENTS FROM TRUST FUND
Sec. 479.0151. DISBURSEMENT WITHOUT APPROPRIATION. Money
in the trust fund may be disbursed by the office without
appropriation only as provided by this chapter. (V.A.C.S. Art.
5190.14, Sec. 5B(d) (part).)
Sec. 479.0152. DISBURSEMENT FROM TRUST FUND. (a) After
approval of each contributing endorsing municipality and endorsing
county, the office may make a disbursement from the trust fund for a
purpose for which an endorsing municipality, an endorsing county,
or this state is obligated under a motor sports racing event support
contract or event support contract.
(b) If the office makes a disbursement from the trust fund,
the office shall satisfy the obligation proportionately from the
municipal, county, and state revenue in the trust fund. (V.A.C.S.
Art. 5190.14, Secs. 5B(k) (part), (l).)
Sec. 479.0153. ALLOWABLE EXPENSES. (a) Money in the trust
fund may be used to:
(1) pay the principal of and interest on notes issued
under Section 479.0202; and
(2) fulfill obligations of an endorsing municipality,
an endorsing county, or this state to a site selection organization
under a motor sports racing event support contract or event support
contract.
(b) The obligations described by Subsection (a)(2) may
include the payment of:
(1) the costs relating to the preparations necessary
or desirable for conducting the motor sports racing event; and
(2) the costs of conducting the racing event,
including costs of a temporary improvement or temporary renovation
to an existing facility specific to the racing event. (V.A.C.S.
Art. 5190.14, Sec. 5B(h).)
Sec. 479.0154. PROHIBITED DISBURSEMENT. The office may not
make a disbursement from the trust fund that the office determines
would be used to solicit the relocation of a professional sports
franchise located in this state. (V.A.C.S. Art. 5190.14, Sec.
5B(k) (part).)
Sec. 479.0155. REMITTANCE OF REMAINING TRUST FUND MONEY.
On payment of all municipal, county, or state obligations under a
motor sports racing event support contract or event support
contract related to the location of a motor sports racing event in
this state, the office shall remit to each endorsing entity, in
proportion to the amount contributed by the entity, any money
remaining in the trust fund. (V.A.C.S. Art. 5190.14, Sec. 5B(m).)
SUBCHAPTER E. LOCAL POWERS AND DUTIES RELATING TO MOTOR SPORTS
RACING EVENTS
Sec. 479.0201. REQUIRED INFORMATION. (a) A local
organizing committee, endorsing municipality, or endorsing county
shall provide information required by the office to fulfill the
office’s duties under this chapter, including:
(1) annual audited statements of any financial records
required by a site selection organization; and
(2) data obtained by the local organizing committee,
an endorsing municipality, or an endorsing county relating to:
(A) attendance at the motor sports racing event;
and
(B) the economic impact of the racing event.
(b) A local organizing committee, endorsing municipality,
or endorsing county must provide any annual audited financial
statement required by the office not later than the end of the
fourth month after the last day of the period covered by the
financial statement. (V.A.C.S. Art. 5190.14, Sec. 5B(i).)
Sec. 479.0202. ISSUANCE OF NOTES. (a) 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.
(b) An endorsing municipality or endorsing county may
provide that the notes be paid from and secured by:
(1) amounts on deposit or amounts to be transferred or
deposited to the trust fund; or
(2) surcharges from user fees charged in connection
with the motor sports racing event, including parking or ticket
fees.
(c) A note issued must mature not later than the seventh
anniversary of the date of issuance. (V.A.C.S. Art. 5190.14, Sec.
5B(g).)
Sec. 479.0203. PLEDGE OF SURCHARGES TO GUARANTEE
OBLIGATIONS. An endorsing municipality or endorsing county may
guarantee its obligations under a motor sports racing event support
contract and this chapter by pledging, in addition to the tax
revenue deposited under Section 479.0102, surcharges from user fees
charged in connection with the motor sports racing event, including parking or ticket fees. (V.A.C.S. Art. 5190.14, Sec. 5B(e).)

CHAPTER 480. EVENTS TRUST FUND
SUBCHAPTER A. GENERAL PROVISIONS
Sec. 480.0001. DEFINITIONS
Sec. 480.0002. RULES
Sec. 480.0003. CONSTRUCTION OF CHAPTER
SUBCHAPTER B. ELIGIBILITY
Sec. 480.0051. EVENTS ELIGIBLE FOR FUNDING
Sec. 480.0052. LIMITATIONS ON CERTAIN FUNDING REQUESTS
SUBCHAPTER C. STATE ACTIONS RELATING TO EVENTS
Sec. 480.0101. PREREQUISITES FOR OFFICE ACTION
Sec. 480.0102. DETERMINATION OF INCREMENTAL INCREASE
IN CERTAIN TAX RECEIPTS
Sec. 480.0103. TIME FOR DETERMINATION
Sec. 480.0104. DESIGNATION OF MARKET AREA
Sec. 480.0105. ESTIMATE OF TAX REVENUE CREDITED TO
FUND
Sec. 480.0106. MODEL EVENT SUPPORT CONTRACT
SUBCHAPTER D. FUND ESTABLISHMENT AND CONTRIBUTIONS
Sec. 480.0151. EVENTS TRUST FUND
Sec. 480.0152. DEPOSIT OF MUNICIPAL AND COUNTY TAX
REVENUE
Sec. 480.0153. OTHER LOCAL MONEY
Sec. 480.0154. SURCHARGES AND USER FEES
Sec. 480.0155. STATE TAX REVENUE
SUBCHAPTER E. DISBURSEMENTS FROM FUND
Sec. 480.0201. DISBURSEMENT WITHOUT APPROPRIATION
Sec. 480.0202. DISBURSEMENT FROM FUND
Sec. 480.0203. REDUCTION OF DISBURSEMENT AMOUNT
Sec. 480.0204. ALLOWABLE EXPENSES
Sec. 480.0205. LIMITATION ON CERTAIN DISBURSEMENTS
Sec. 480.0206. PROHIBITED DISBURSEMENTS
Sec. 480.0207. REMITTANCE OF REMAINING FUND MONEY
SUBCHAPTER F. LOCAL POWERS AND DUTIES RELATING TO EVENTS
Sec. 480.0251. REQUIRED INFORMATION
Sec. 480.0252. ISSUANCE OF NOTES
Sec. 480.0253. PLEDGE OF SURCHARGES TO GUARANTEE
OBLIGATIONS
CHAPTER 480. EVENTS TRUST FUND
SUBCHAPTER A. GENERAL PROVISIONS
Sec. 480.0001. DEFINITIONS. In this chapter:
(1) “Endorsing county” means a county that contains a
site selected by a site selection organization for an event.
(2) “Endorsing municipality” means a municipality
that contains a site selected by a site selection organization for
an event.
(3) “Event” means an event or related series of events
to be held in this state for which a local organizing committee,
endorsing municipality, or endorsing county seeks approval from a
site selection organization to hold the event at a site in this
state. The term includes any activity related to or associated with
the event.
(4) “Event support contract” means a joinder
undertaking, a joinder agreement, or a similar contract executed by
a site selection organization and a local organizing committee, an
endorsing municipality, or an endorsing county.
(5) “Site selection organization” means an entity that
conducts or considers conducting in this state an event eligible
under Section 480.0051. (V.A.C.S. Art. 5190.14, Sec. 5C(a).)
Sec. 480.0002. RULES. The office may adopt rules necessary
to implement this chapter. (V.A.C.S. Art. 5190.14, Sec. 5C(p).)
Sec. 480.0003. CONSTRUCTION OF CHAPTER. This chapter may
not be construed as creating or requiring a state guarantee of an
obligation imposed on an endorsing municipality, an endorsing
county, or this state under an event support contract or another
agreement relating to hosting an event in this state. (V.A.C.S.
Art. 5190.14, Sec. 5C(n).)
SUBCHAPTER B. ELIGIBILITY
Sec. 480.0051. EVENTS ELIGIBLE FOR FUNDING. An event is
eligible for funding under this chapter only if:
(1) a site selection organization, after considering
through a highly competitive selection process one or more sites
not in this state, selects a site in this state for the event to be
held:
(A) one time; or
(B) if the event is scheduled under an event
contract or event support contract to be held each year for a period
of years, one time in each year;
(2) a site selection organization selects a site in
this state as:
(A) the sole site for the event; or
(B) the sole site for the event in a region
composed of this state and one or more adjoining states; and
(3) the event is held not more than one time in any
year in this state or an adjoining state. (V.A.C.S. Art. 5190.14,
Sec. 5C(a-1).)
Sec. 480.0052. LIMITATIONS ON CERTAIN FUNDING REQUESTS.
(a) This section applies only to an event for which the office
determines under Section 480.0102 that the total incremental
increase in tax receipts is less than $200,000.
(b) Subject to Subsection (c), an endorsing municipality or
endorsing county may during any 12-month period submit requests for
funding under this chapter for not more than 10 events to which this
section applies.
(c) Not more than three of the events described by
Subsection (b) may be nonsporting events. (V.A.C.S. Art. 5190.14,
Sec. 5C(b-1).)
SUBCHAPTER C. STATE ACTIONS RELATING TO EVENTS
Sec. 480.0101. PREREQUISITES FOR OFFICE ACTION. The office
may not undertake any duty imposed by this chapter unless:
(1) the municipality or county in which an event will
be located submits a request; and
(2) the request is accompanied by documentation from a
site selection organization selecting the site for the event.
(V.A.C.S. Art. 5190.14, Sec. 5C(o).)
Sec. 480.0102. DETERMINATION OF INCREMENTAL INCREASE IN
CERTAIN TAX RECEIPTS. (a) After a site selection organization
selects a site for an event in this state in accordance with an
application by a local organizing committee, endorsing
municipality, or endorsing county, the office shall determine the
incremental increases in the following tax receipts that the office
determines are directly attributable to the preparation for and
presentation of the event 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 will be held on more than one day, after the last date on which
the event will be held:
(1) the receipts to this state from taxes imposed
under Chapters 151, 152, 156, and 183, Tax Code, and under Title 5,
Alcoholic Beverage Code, in the market areas designated under
Section 480.0104;
(2) the receipts collected by this state for 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;
(3) the receipts collected by this state for 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;
(4) the receipts collected by each endorsing
municipality in the market area from the hotel occupancy tax
imposed under Chapter 351, Tax Code; and
(5) the receipts collected by each endorsing county in
the market area from the hotel occupancy tax imposed under Chapter
352, Tax Code.
(b) The office shall make the determination required by
Subsection (a) in accordance with procedures the office develops
and shall base that determination on information submitted by a
local organizing committee, endorsing municipality, or endorsing
county.
(c) In determining the amount of state revenue available
under Subsection (a)(1), the office may consider whether:
(1) the event has been previously held in this state;
and
(2) changes to the character of the event could affect
the incremental increase in tax receipts collected and remitted to
this state by an endorsing municipality or endorsing county under
Subsection (a)(1). (V.A.C.S. Art. 5190.14, Secs. 5C(b) (part),
(c-1) (part), (q).)
Sec. 480.0103. TIME FOR DETERMINATION. The office shall
determine the incremental increase in tax receipts under Section
480.0102 not later than the earlier of:
(1) the 30th day after the date the office receives the
information for an event submitted by a local organizing committee,
endorsing municipality, or endorsing county on which the office
bases the determination as provided by Section 480.0102(b); and
(2) three months before the date of the event.
(V.A.C.S. Art. 5190.14, Secs. 5C(b) (part), (c-1) (part).)
Sec. 480.0104. DESIGNATION OF MARKET AREA. (a) For
purposes of Section 480.0102(a)(1), the office shall designate as a
market area for an event each area in which the office determines
there is a reasonable likelihood of measurable economic impact
directly attributable to the preparation for and presentation of
the event. The office shall include areas likely to provide venues,
accommodations, and services in connection with the event based on
the proposal the local organizing committee provides to the office.
(b) The office shall determine the geographic boundaries of
each market area.
(c) An endorsing municipality or endorsing county selected
as the site for the event must be included in a market area for the
event. (V.A.C.S. Art. 5190.14, Sec. 5C(c).)
Sec. 480.0105. ESTIMATE OF TAX REVENUE CREDITED TO FUND.
(a) Not later than three months before the date of an event, the
office shall provide an estimate of the total amount of tax revenue
that would be transferred or deposited to the events trust fund
under this chapter in connection with that event if the event were
held in this state at a site selected in accordance with an
application by a local organizing committee, endorsing
municipality, or endorsing county.
(b) The office shall provide the estimate on request to a
local organizing committee, endorsing municipality, or endorsing
county.
(c) A local organizing committee, endorsing municipality,
or endorsing county may submit the office’s estimate to a site
selection organization. (V.A.C.S. Art. 5190.14, Sec. 5C(j).)
Sec. 480.0106. MODEL EVENT SUPPORT CONTRACT. (a) The
office may adopt a model event support contract and make the
contract available on the office’s Internet website.
(b) The office’s adoption of a model event support contract
under this section does not require use of the model event support
contract for purposes of this chapter. (V.A.C.S. Art. 5190.14,
Sec. 5C(r).)
SUBCHAPTER D. FUND ESTABLISHMENT AND CONTRIBUTIONS
Sec. 480.0151. EVENTS TRUST FUND. The events trust fund is
established outside the state treasury and is held in trust by the
comptroller for administration of this chapter. (V.A.C.S. Art.
5190.14, Sec. 5C(d) (part).)
Sec. 480.0152. DEPOSIT OF MUNICIPAL AND COUNTY TAX REVENUE.
(a) 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 office, and
designated as the events trust fund the amount of the
municipality’s or county’s hotel occupancy tax revenue determined
under Section 480.0102(a)(4) or (5), less any amount of the revenue
that the municipality or county determines is necessary to meet the
obligations of the municipality or county.
(b) The comptroller, at the direction of the office, shall
retain the amount of sales and use tax revenue and mixed beverage
tax revenue determined under Section 480.0102(a)(2) or (3) 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, less any amount of the
revenue that the municipality or county determines is necessary to
meet the obligations of the municipality or county, and shall
deposit the retained tax revenue to the events trust fund.
(c) The comptroller shall begin retaining and depositing
the municipal and county tax revenue:
(1) with the first distribution of that tax revenue
that occurs after the first day of the period described by Section
480.0102(a); or
(2) at a time the office otherwise determines to be
practicable.
(d) The comptroller shall discontinue retaining the
municipal and county tax revenue when the amount of the applicable
tax revenue determined under Section 480.0102(a)(2) or (3) has been
retained. (V.A.C.S. Art. 5190.14, Sec. 5C(d) (part).)
Sec. 480.0153. OTHER LOCAL MONEY. (a) In lieu of the
municipal and county tax revenues remitted or retained under
Section 480.0152, an endorsing municipality or endorsing county may
remit to the office for deposit to the events trust fund other local
money in an amount equal to the total amount of municipal and county
tax revenue determined under Sections 480.0102(a)(2)-(5).
(b) An endorsing municipality or endorsing county must
remit the other local money not later than the 90th day after the
last day of an event.
(c) For purposes of Section 480.0155, the amount deposited
under this section is considered remitted municipal and county tax
revenue. (V.A.C.S. Art. 5190.14, Sec. 5C(d-1).)
Sec. 480.0154. SURCHARGES AND USER FEES. An endorsing
municipality or endorsing county may collect and remit to the
office surcharges and user fees attributable to an event for
deposit to the events trust fund. (V.A.C.S. Art. 5190.14, Sec.
5C(e) (part).)
Sec. 480.0155. STATE TAX REVENUE. (a) The comptroller, at
the direction of the office, shall transfer to the events trust fund
a portion of the state tax revenue in an amount equal to 6.25
multiplied by the amount of the municipal and county tax revenue
retained or remitted under this chapter, 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.
(b) The amount transferred under Subsection (a) may not
exceed the incremental increase in tax receipts determined under
Section 480.0102(a)(1). (V.A.C.S. Art. 5190.14, Sec. 5C(f).)
SUBCHAPTER E. DISBURSEMENTS FROM FUND
Sec. 480.0201. DISBURSEMENT WITHOUT APPROPRIATION. Money
in the events trust fund may be disbursed by the office without
appropriation only as provided by this chapter. (V.A.C.S. Art.
5190.14, Sec. 5C(d) (part).)
Sec. 480.0202. DISBURSEMENT FROM FUND. (a) After approval
of each contributing endorsing municipality and endorsing county,
the office may make a disbursement from the events trust fund for a
purpose for which a local organizing committee, an endorsing
municipality, an endorsing county, or this state is obligated under
an event support contract, including an obligation to pay costs
incurred in making preparations necessary for the event and
conducting the event.
(b) In considering whether to make a disbursement from the
events trust fund, the office 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.
(c) If the office makes a disbursement from the events trust
fund, the office shall satisfy the obligation proportionately from
the local and state revenue in the fund. (V.A.C.S. Art. 5190.14,
Secs. 5C(k) (part), (l).)
Sec. 480.0203. REDUCTION OF DISBURSEMENT AMOUNT. (a)
After the conclusion of an event, the office shall compare
information on the actual attendance figures provided under Section
480.0251 with the estimated attendance numbers used to determine
the incremental increase in tax receipts under Section 480.0102.
If the actual attendance figures are significantly lower than the
estimated attendance numbers, the office may reduce the amount of a
disbursement from the events trust fund for an endorsing entity:
(1) in proportion to the discrepancy between the
actual and estimated attendance; and
(2) in proportion to the amount the entity contributed
to the fund.
(b) The office by rule shall:
(1) define “significantly lower” for purposes of this
section; and
(2) provide the manner in which the office may
proportionately reduce a disbursement.
(c) This section does not affect the remittance under
Section 480.0207 of any money remaining in the events trust fund.
(V.A.C.S. Art. 5190.14, Sec. 5C(t).)
Sec. 480.0204. ALLOWABLE EXPENSES. (a) Money in the events
trust fund may be used to:
(1) pay the principal of and interest on notes issued
under Section 480.0252; and
(2) fulfill obligations of an endorsing municipality,
an endorsing county, or this state to a site selection organization
under an event support contract.
(b) Subject to Sections 480.0202 and 480.0205, the
obligations described by Subsection (a)(2) may include the payment
of:
(1) the costs relating to the preparations necessary
for conducting the event; and
(2) the costs of conducting the event, including costs
of an improvement or renovation to an existing facility and costs of
acquisition or construction of a new facility or other facility.
(V.A.C.S. Art. 5190.14, Sec. 5C(h).)
Sec. 480.0205. LIMITATION ON CERTAIN DISBURSEMENTS. (a) A
disbursement from the events trust fund is limited to five percent
of the cost of a structural improvement or a fixture if:
(1) an obligation is incurred under an event support
contract to make the improvement or add the fixture to a site for an
event; and
(2) the improvement or fixture is expected to derive
most of its value in subsequent uses of the site for future events.
(b) The remainder of an obligation described by Subsection
(a) is not eligible for a disbursement from the events trust fund,
unless the obligation is for an improvement or fixture for a
publicly owned facility. (V.A.C.S. Art. 5190.14, Sec. 5C(k)
(part).)
Sec. 480.0206. PROHIBITED DISBURSEMENTS. (a) Subject to
Subsection (b), the office may not make a disbursement from the
events trust fund that the office determines would be used to:
(1) solicit the relocation of a professional sports
franchise located in this state;
(2) construct an arena, stadium, or convention center;
or
(3) conduct usual and customary maintenance of a
facility.
(b) Subsection (a) does not prohibit a disbursement from the
events trust fund for the construction of temporary structures
within an arena, stadium, or convention center that are necessary
for the conduct of an event or temporary maintenance of a facility
that is necessary for the preparation for or conduct of an event.
(V.A.C.S. Art. 5190.14, Secs. 5C(k-1), (k-2).)
Sec. 480.0207. REMITTANCE OF REMAINING FUND MONEY. On
payment of all municipal, county, or state obligations under an
event support contract related to the location of an event in this
state, the office shall remit to each endorsing entity, in
proportion to the amount contributed by the entity, any money
remaining in the events trust fund. (V.A.C.S. Art. 5190.14, Sec.
5C(m).)
SUBCHAPTER F. LOCAL POWERS AND DUTIES RELATING TO EVENTS
Sec. 480.0251. REQUIRED INFORMATION. (a) A local
organizing committee, endorsing municipality, or endorsing county
shall provide information required by the office to fulfill the
office’s duties under this chapter, including:
(1) annual audited statements of any financial records
required by a site selection organization; and
(2) data obtained by the local organizing committee,
an endorsing municipality, or an endorsing county relating to:
(A) 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
(B) the economic impact of the event.
(b) A local organizing committee, endorsing municipality,
or endorsing county must provide any annual audited financial
statement required by the office not later than the end of the
fourth month after the last day of the period covered by the
financial statement.
(c) After the conclusion of an event and on the office’s
request, a local organizing committee, endorsing municipality, or
endorsing county must provide information about the event, such as
attendance figures, including an estimate of the number of people
who attended the event who are not residents of this state,
financial information, or other public information held by the
committee, municipality, or county that the office considers
necessary. (V.A.C.S. Art. 5190.14, Sec. 5C(i).)
Sec. 480.0252. ISSUANCE OF NOTES. (a) 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.
(b) An endorsing municipality or endorsing county may
provide that the notes be paid from and secured by:
(1) amounts on deposit or amounts to be transferred or
deposited to the events trust fund; or
(2) surcharges from user fees charged in connection
with the event, including parking or ticket fees.
(c) A note issued must mature not later than the seventh
anniversary of the date of issuance. (V.A.C.S. Art. 5190.14, Sec.
5C(g).)
Sec. 480.0253. PLEDGE OF SURCHARGES TO GUARANTEE
OBLIGATIONS. An endorsing municipality or endorsing county may
guarantee its obligations under an event support contract and this
chapter by pledging, in addition to the tax revenue deposited under
Section 480.0152, surcharges from user fees charged in connection
with the event, including parking or ticket fees. (V.A.C.S. Art.
5190.14, Sec. 5C(e) (part).)
ARTICLE 2. CONFORMING AMENDMENTS
SECTION 2.01. Section 335.078, Local Government Code, is
amended to read as follows:
Sec. 335.078. VENUE DISTRICT AS ENDORSING MUNICIPALITY OR
COUNTY. (a) A venue district located in a county with a population
of 3.3 million or more may act as an endorsing municipality or
endorsing county under Subtitle E-1, Title 4, Government Code
[Chapter 1507, Acts of the 76th Legislature, Regular Session, 1999
(Article 5190.14, Vernon’s Texas Civil Statutes)].
(b) A venue district acting as an endorsing municipality or
endorsing county under Subtitle E-1, Title 4, Government Code
[Chapter 1507, Acts of the 76th Legislature, Regular Session, 1999
(Article 5190.14, Vernon’s Texas Civil Statutes)], shall remit for
deposit into the trust fund established for the games or event the
amounts determined by the comptroller under that subtitle
[chapter]. The comptroller shall determine the incremental
increase in receipts attributable to the games or event and related
activities under that subtitle [chapter] based on the amount of
applicable taxes imposed by each municipality or county that
comprises the venue district and not on the amount of taxes imposed
by the venue district.
(c) A venue district acting as an endorsing municipality or
endorsing county under Subtitle E-1, Title 4, Government Code
[Chapter 1507, Acts of the 76th Legislature, Regular Session, 1999
(Article 5190.14, Vernon’s Texas Civil Statutes)], may guarantee
the district’s obligations under a games or event support contract
by pledging surcharges from user fees, including parking or ticket
fees, charged in connection with the games or event and related
activities.
(d) Subject to Subsection (b), a venue district acting as an
endorsing municipality or endorsing county under Subtitle E-1,
Title 4, Government Code [Chapter 1507, Acts of the 76th
Legislature, Regular Session, 1999 (Article 5190.14, Vernon’s
Texas Civil Statutes)], as authorized by this section, has all the
powers of an endorsing municipality or endorsing county under that
subtitle [chapter], and any action an endorsing municipality or
endorsing county is required to take by ordinance or order under
that subtitle [chapter] may be taken by order or resolution of the
venue district.
SECTION 2.02. Section 26.041(j), Tax Code, is amended to
read as follows:
(j) Any amount derived from the sales and use tax that is
retained by the comptroller under Chapters 476 or 477, Government
Code [Section 4 or 5, Chapter 1507, Acts of the 76th Legislature,
Regular Session, 1999 (Article 5190.14, Vernon’s Texas Civil
Statutes)], is not considered to be sales and use tax revenue for
purposes of this section.
ARTICLE 3. REPEALER
SECTION 3.01. Article 5190.14, Vernon’s Texas Civil
Statutes, is repealed.
ARTICLE 4. GENERAL MATTERS
SECTION 4.01. This Act is enacted under Section 43, Article
III, Texas Constitution. This Act is intended as a recodification
only, and no substantive change in law is intended by this Act.
SECTION 4.02. This Act takes effect April 1, 2021.

______________________________ ______________________________
President of the Senate Speaker of the House

I certify that H.B. No. 4174 was passed by the House on April
26, 2019, by the following vote: Yeas 137, Nays 2, 2 present, not
voting.

______________________________
Chief Clerk of the House

I certify that H.B. No. 4174 was passed by the Senate on May
15, 2019, by the following vote: Yeas 31, Nays 0.

______________________________
Secretary of the Senate
APPROVED: _____________________
Date

_____________________
Governor

Property Tax Protection Program™ Benefits

  • No flat fees or upfront costs.  No cost ever unless your property taxes are reduced.
  • All practical efforts are made every year to reduce your property taxes.
  • Never miss another appeal deadline.
  • Property taxes protested for you annually.
  • You do not have to accept the appraisal district’s initial guesstimate of value.
  • We coordinate with you regarding building size / condition to avoid excess taxes.
  • Free support regarding homestead exemptions.
  • Some years are good – typically 6 to 7 out of 10 will result in tax reduction for you.
  • The other 3 to 4 years out of 10 we strike out. Most often due to people issues in the hearing process. Some years we get an easy appraiser at the informal; some years someone who is impossible to settle with.
The Residential Property Protection Program™
is powered by O’Connor
  • Enter your information below and your documents and enrollment information will be emailed to you within one business day

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  • Call 713.290.9700 to discuss with a representative.

    Please monitor your E-mail and spam filter. If you don't receive your enrollment documents within 24 business hours, call 713.290.9700 8am - 5pm CST

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When you submit your enrollment, you understand this is a risk free offer to you. If your taxes are not reduced you PAY NOTHING, and a portion of the tax savings is the only fee you pay when your taxes are reduced.