84R25111 DDT-D
	By: Isaac, Bell, Anderson of McLennan	H.B. No. 3613
	Substitute the following for H.B. No. 3613:
	By:  Button	C.S.H.B. No. 3613

	A BILL TO BE ENTITLED
	AN ACT
	relating to a Pan American Games trust fund, an Olympic Games trust
	fund, a Major Events trust fund, a Motor Sports Racing trust fund,
	and an Events trust fund for sporting and non-sporting events, and
	to the abolishment of the special event trust fund.
	BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
	SECTION 1.  Chapter 1507 (S.B. 456), Acts of the 76th
	Legislature, Regular Session, 1999 (Article 5190.14, Vernon's
	Texas Civil Statutes), is amended by adding Section 3A to read as
	follows:
	Sec. 3A.  RULES. The office of the governor shall adopt
	rules consistent with this Act to ensure efficient administration
	of the trust funds established under this Act, including rules
	related to application and receipt requirements.
	SECTION 2.  Sections 4(b), (c), (d), (f), (h), (j), (k), and
	(m), Chapter 1507 (S.B. 456), Acts of the 76th Legislature, Regular
	Session, 1999 (Article 5190.14, Vernon's Texas Civil Statutes), are
	amended to read as follows:
	(b)  If a site selection organization selects a site for the
	games in this state pursuant to an application by a local organizing
	committee acting on behalf of an endorsing municipality, after the
	first occurrence of a measurable economic impact in this state as a
	result of the preparation for the games, as determined by the
	department [comptroller], but in no event later than one year
	before the scheduled opening event of the games, the department
	[comptroller] shall determine for each subsequent calendar
	quarter, in accordance with procedures developed by the department
	[comptroller]:
	(1)  the incremental increase in the receipts to the
	state from the taxes imposed under Chapters 151, 152, 156, and 183,
	Tax Code, and under Title 5, Alcoholic Beverage Code, within the
	market areas designated under Subsection (c) of this section, that
	is directly attributable, as determined by the department
	[comptroller], to the preparation for and presentation of the games
	and related events;
	(2)  the incremental increase in the receipts collected
	by the state on behalf of the endorsing municipality from the sales
	and use tax imposed by the endorsing municipality under Section
	321.101(a), Tax Code, that is directly attributable, as determined
	by the department [comptroller], to the preparation for and
	presentation of the games and related events; and
	(3)  the incremental increase in the receipts collected
	by the endorsing municipality from the municipality's hotel
	occupancy tax imposed under Chapter 351, Tax Code, that is directly
	attributable, as determined by the department [comptroller], to the
	preparation for and presentation of the games and related events.
	(c)  For the purposes of Subsection (b)(1) of this section,
	the department [comptroller] shall designate as a market area for
	the games each area in which the department [comptroller]
	determines there is a reasonable likelihood of measurable economic
	impact directly attributable to the preparation for and
	presentation of the games and related events, including areas
	likely to provide venues, accommodations, and services in
	connection with the games based on the proposal provided by the
	local organizing committee under Section 7 of this Act. The
	department [comptroller] shall determine the geographic boundaries
	of each market area. The endorsing municipality that has been
	selected as the site for the games must be included in a market area
	for the games.
	(d)  The comptroller, at the direction of the department,
	shall retain, for the purpose of guaranteeing the joint obligations
	of the state and the endorsing municipality under a games support
	contract and this Act, the amount of municipal sales and use tax
	revenue determined under Subsection (b)(2) of this section from the
	amounts otherwise required to be sent to the municipality under
	Section 321.502, Tax Code, beginning with the first distribution of
	that tax revenue that occurs after the date the department
	[comptroller] makes the determination of the amount of municipal
	sales and use tax revenue under Subsection (b)(2). The comptroller
	shall discontinue retaining municipal sales and use tax revenue
	under this subsection on the earlier of:
	(1)  the end of the third calendar month following the
	month in which the closing event of the games occurs; or
	(2)  the date the amount of municipal sales and use tax
	revenue and municipal hotel occupancy tax revenue in the Pan
	American Games trust fund equals 14 percent of the maximum amount of
	state and municipal tax revenue that may be transferred to or
	deposited in the trust fund under Subsection (m) of this section.
	(f)  Subject to Subsection (m) of this section, the
	comptroller, at the direction of the department, shall deposit into
	a trust fund designated as the Pan American Games trust fund the
	amount of municipal sales and use tax revenue retained under
	Subsection (d) of this section and, at the same time, shall transfer
	to the fund a portion of the state tax revenue determined by the
	department under Subsection (b)(1) of this section in an amount
	equal to 6.25 times the amount of that municipal sales and use tax
	revenue. Subject to Subsection (m) of this section, the endorsing
	municipality shall deposit into the trust fund the amount of the
	endorsing municipality's hotel occupancy tax revenue determined by
	the department under Subsection (b)(3) of this section. The
	endorsing municipality shall deposit that hotel occupancy tax
	revenue into the trust fund at least quarterly. When the endorsing
	municipality makes a deposit of its hotel occupancy tax revenue,
	the comptroller, at the direction of the department, shall transfer
	to the fund [deposit] at the same time a portion of the state tax
	revenue determined under Subsection (b)(1) of this section in an
	amount equal to 6.25 times the amount of that municipal hotel
	occupancy tax revenue. The Pan American Games trust fund is
	established outside the treasury but is held in trust by the
	comptroller for the administration of this Act. Money in the trust
	fund may be spent by the department without appropriation only as
	provided by this Act. The comptroller shall discontinue
	transferring [depositing] into the trust fund any state tax revenue
	determined by the department under Subsection (b)(1) of this
	section on the earlier of:
	(1)  the end of the third calendar month following the
	month in which the closing event of the games occurs; or
	(2)  the date on which the amount of state revenue in
	the Pan American Games trust fund equals 86 percent of the maximum
	amount of state and municipal tax revenue that may be transferred to
	or deposited in the trust fund under Subsection (m) of this section.
	(h)  A local organizing committee shall provide information
	required by the department [comptroller] to enable the department
	[comptroller] to fulfill the department's [comptroller's] duties
	under this Act, including annual audited statements of the local
	organizing committee's financial records required by a site
	selection organization and data obtained by the local organizing
	committee relating to attendance at the games and to the economic
	impact of the games. A local organizing committee must provide an
	annual audited financial statement required by the department
	[comptroller] not later than the end of the fourth month after the
	date the period covered by the financial statement ends.
	(j)  The department may not make a disbursement from the Pan
	American Games trust fund unless the department [comptroller]
	certifies that the disbursement is for a purpose for which the state
	and the endorsing municipality are jointly obligated under a games
	support contract or other agreement described by Subsection (g) of
	this section.
	(k)  If the department [comptroller] certifies under
	Subsection (j) of this section that a disbursement may be made from
	the Pan American Games trust fund, the obligation shall be
	satisfied first out of municipal revenue deposited in the trust
	fund and any interest earned on that municipal revenue. If the
	municipal revenue is not sufficient to satisfy the entire deficit,
	state revenue transferred [deposited] into the trust fund and any
	interest earned on that state revenue shall be used to satisfy the
	portion of the deficit not covered by the municipal revenue.
	(m)  In no event may:
	(1)  the total amount of state and municipal tax
	revenue transferred to or deposited in the Pan American Games trust
	fund exceed $20 million; or
	(2)  the joint liability of the state and the endorsing
	municipality under a joinder agreement and any other games support
	contracts entered into pursuant to this Act exceed the lesser of:
	(A)  $20 million; or
	(B)  the total amount of revenue transferred to or
	deposited in the Pan American Games trust fund and interest earned
	on the fund.
	SECTION 3.  Sections 4(i) and (l), Chapter 1507 (S.B. 456),
	Acts of the 76th Legislature, Regular Session, 1999 (Article
	5190.14, Vernon's Texas Civil Statutes), as amended by Chapters 579
	(H.B. 1675) and 814 (S.B. 275), Acts of the 78th Legislature,
	Regular Session, 2003, are reenacted and amended to read as
	follows:
	(i)  The department [comptroller] shall provide an estimate
	not later than September [December] 1 [, 2003,] of the year that is
	eight years before the year in which the games would be held in this
	state of the total amount of state and municipal tax revenue that
	would be transferred to or deposited in the Pan American Games trust
	fund before January 1 [, 2012,] of the year following the year in
	which the games would be held, if the games were to be held in this
	state at a site selected pursuant to an application by a local
	organizing committee. The department [comptroller] shall provide
	the estimate on request to a local organizing committee. A local
	organizing committee may submit the department's [comptroller's]
	estimate to a site selection organization.
	(l)  On January 1 [, 2013,] of the second year following the
	year in which the games are held in this state, the comptroller, at
	the direction of the department, shall transfer to the general
	revenue fund any money remaining in the Pan American Games trust
	fund, not to exceed the amount of state revenue remaining in the
	trust fund, plus any interest earned on that state revenue. The
	comptroller shall remit to the endorsing municipality any money
	remaining in the trust fund after the required amount is
	transferred to the general revenue fund.
	SECTION 4.  Sections 5(b), (c), (d), (f), (h), (i), (j), (k),
	(l), and (m), Chapter 1507 (S.B. 456), Acts of the 76th Legislature,
	Regular Session, 1999 (Article 5190.14, Vernon's Texas Civil
	Statutes), are amended to read as follows:
	(b)  If a site selection organization selects a site for the
	games in this state pursuant to an application by a local organizing
	committee, after the first occurrence of a measurable economic
	impact in this state as a result of the preparation for the games,
	as determined by the department [comptroller], but in no event
	later than one year before the scheduled opening event of the games,
	the department [comptroller] shall determine for each subsequent
	calendar quarter, in accordance with procedures developed by the
	department [comptroller]:
	(1)  the incremental increase in the receipts to the
	state from the taxes imposed under Chapters 151, 152, 156, and 183,
	Tax Code, and under Title 5, Alcoholic Beverage Code, within the
	market areas designated under Subsection (c) of this section, that
	is directly attributable, as determined by the department
	[comptroller], to the preparation for and presentation of the games
	and related events;
	(2)  the incremental increase in the receipts collected
	by the state on behalf of each endorsing municipality from the sales
	and use tax imposed by the endorsing municipality under Section
	321.101(a), Tax Code, and the mixed beverage tax revenue to be
	received by the endorsing municipality under Section 183.051(b),
	Tax Code, that is directly attributable, as determined by the
	department [comptroller], to the preparation for and presentation
	of the games and related events;
	(3)  the incremental increase in the receipts collected
	by the state on behalf of each endorsing county from the sales and
	use tax imposed by the county under Section 323.101(a), Tax Code,
	and the mixed beverage tax revenue to be received by the endorsing
	county under Section 183.051(b), Tax Code, that is directly
	attributable, as determined by the department [comptroller], to the
	preparation for and presentation of the games and related events;
	(4)  the incremental increase in the receipts collected
	by each endorsing municipality from the hotel occupancy tax imposed
	under Chapter 351, Tax Code, that is directly attributable, as
	determined by the department [comptroller], to the preparation for
	and presentation of the games and related events; and
	(5)  the incremental increase in the receipts collected
	by each endorsing county from the hotel occupancy tax imposed under
	Chapter 352, Tax Code, that is directly attributable, as determined
	by the department [comptroller], to the preparation for and
	presentation of the games and related events.
	(c)  For the purposes of Subsection (b)(1) of this section,
	the department [comptroller] shall designate as a market area for
	the games each area in which the department [comptroller]
	determines there is a reasonable likelihood of measurable economic
	impact directly attributable to the preparation for and
	presentation of the games and related events, including areas
	likely to provide venues, accommodations, and services in
	connection with the games based on the proposal provided by the
	local organizing committee under Section 7 of this Act. The
	department [comptroller] shall determine the geographic boundaries
	of each market area. Each endorsing municipality or endorsing
	county that has been selected as the site for the games must be
	included in a market area for the games.
	(d)  Subject to Section 6 of this Act, the comptroller, at
	the direction of the department, shall retain, for the purpose of
	guaranteeing the joint obligations of the state and an endorsing
	municipality or endorsing county under a games support contract and
	this Act, the amount of sales and use tax revenue and mixed beverage
	tax revenue determined under Subsection (b)(2) or (b)(3) of this
	section from the amounts otherwise required to be sent to the
	municipality under Section 183.051(b) or 321.502, Tax Code, or to
	the county under Section 183.051(b) or 323.502, Tax Code, beginning
	with the first distribution of that tax revenue that occurs after
	the date the department [comptroller] makes the determination of
	the amount of sales and use tax revenue and mixed beverage tax
	revenue under Subsection (b)(2) or (b)(3) of this section. The
	comptroller shall discontinue retaining sales and use tax revenue
	and mixed beverage tax revenue under this subsection on the earlier
	of:
	(1)  the end of the third calendar month following the
	month in which the closing event of the games occurs; or
	(2)  the date the amount of local sales and use tax
	revenue and mixed beverage tax revenue in the Olympic Games trust
	fund equals 14 percent of the maximum amount of state and local tax
	revenue that may be transferred to or deposited in the trust fund
	under Subsection (m) of this section.
	(f)  Subject to Subsection (m) of this section, each
	endorsing municipality or endorsing county shall remit to the
	comptroller and the comptroller, at the direction of the
	department, shall deposit into a trust fund designated as the
	Olympic Games trust fund, on a quarterly basis, the amount of the
	municipality's or county's hotel occupancy tax revenue determined
	by the department under Subsection (b)(4) or (b)(5) of this
	section, as applicable. Subject to Section 6 of this Act and
	Subsection (m) of this section, the comptroller, at the direction
	of the department, shall deposit into the trust fund the amount of
	sales and use tax revenue and mixed beverage tax revenue retained
	under Subsection (d) of this section for the same calendar quarter
	and, at the same time, shall transfer to the fund the state tax
	revenue determined by the department under Subsection (b)(1) of
	this section for the quarter.  The Olympic Games trust fund is
	established outside the treasury but is held in trust by the
	comptroller for the administration of this Act. Money in the trust
	fund may be spent by the department without appropriation only as
	provided by this Act. The comptroller shall discontinue transfer
	[deposit] of the amount of state tax revenue determined by the
	department under Subsection (b)(1) of this section on the earlier
	of:
	(1)  the end of the third calendar month following the
	month in which the closing event of the games occurs; or
	(2)  the date the amount of state revenue in the Olympic
	Games trust fund equals 86 percent of the maximum amount of state,
	municipal, and county tax revenue that may be transferred to or
	deposited in the trust fund under Subsection (m) of this section.
	(h)  A local organizing committee shall provide information
	required by the department [comptroller] to enable the department
	[comptroller] to fulfill the department's [comptroller's] duties
	under this Act, including annual audited statements of the local
	organizing committee's financial records required by a site
	selection organization and data obtained by the local organizing
	committee relating to attendance at the games and to the economic
	impact of the games. A local organizing committee must provide an
	annual audited financial statement required by the department
	[comptroller] not later than the end of the fourth month after the
	date the period covered by the financial statement ends.
	(i)  The department [comptroller] shall provide an estimate
	before August 31 of the year that is 12 years before the year in
	which the games would be held in this state, or as soon as practical
	after that date, of the total amount of state, municipal, and county
	tax revenue that would be transferred to or deposited in the Olympic
	Games trust fund if the games were to be held in this state at a site
	selected pursuant to an application by a local organizing
	committee. The department [comptroller] shall provide the estimate
	on request to a local organizing committee. A local organizing
	committee may submit the department's [comptroller's] estimate to a
	site selection organization.
	(j)  The department may not make a disbursement from the
	Olympic Games trust fund unless the department [comptroller]
	certifies that the disbursement is for a purpose for which the state
	and each endorsing municipality or endorsing county are jointly
	obligated under a games support contract or other agreement
	described by Subsection (g) of this section. A disbursement may not
	be made from the trust fund that the department determines would be
	used for the purpose of soliciting the relocation of a professional
	sports franchise located in this state.
	(k)  If the department [comptroller] certifies under
	Subsection (j) of this section that a disbursement may be made from
	the Olympic Games trust fund, the obligation shall be satisfied
	proportionately from the state and municipal or county revenue in
	the trust fund.
	(l)  Two years after the closing event of the games, the
	department [comptroller] shall transfer to the general revenue fund
	any money remaining in the Olympic Games trust fund, not to exceed
	the amount of state revenue remaining in the trust fund, plus any
	interest earned on that state revenue. The department
	[comptroller] shall remit to each endorsing entity in proportion to
	the amount contributed by the entity any money remaining in the
	trust fund after the required amount is transferred to the general
	revenue fund.
	(m)  In no event may:
	(1)  the total amount of state, municipal, and county
	tax revenue transferred to or deposited in the Olympic Games trust
	fund exceed $100 million; or
	(2)  the joint liability of the state and an endorsing
	municipality or county under a joinder agreement and any other
	games support contracts entered into pursuant to this Act exceed
	the lesser of:
	(A)  $100 million; or
	(B)  the total amount of revenue transferred to or
	deposited in the Olympic Games trust fund and interest earned on the
	fund.
	SECTION 5.  Section 5A(a), Chapter 1507 (S.B. 456), Acts of
	the 76th Legislature, Regular Session, 1999 (Article 5190.14,
	Vernon's Texas Civil Statutes), is amended by amending Subdivisions
	(1), (2), and (4) and Subdivision (5), as amended by S.B. 293, Acts
	of the 84th Legislature, Regular Session, 2015, to read as follows:
	(1)  "Endorsing county" means:
	(A)  a county that contains a site selected by a
	site selection organization for one or more events; or
	(B)  a county that:
	(i)  does not contain a site selected by a
	site selection organization for an event;
	(ii)  is included in the market area for the
	event as designated by the department [comptroller]; and
	(iii)  is a party to an event support
	contract.
	(2)  "Endorsing municipality" means:
	(A)  a municipality that contains a site selected
	by a site selection organization for one or more events; or
	(B)  a municipality that:
	(i)  does not contain a site selected by a
	site selection organization for an event;
	(ii)  is included in the market area for the
	event as designated by the department [comptroller]; and
	(iii)  is a party to an event support
	contract.
	(4)  "Event" means a Super Bowl, a National Collegiate
	Athletic Association Final Four tournament game, the National
	Basketball Association All-Star Game, the X Games, the National
	Hockey League All-Star Game, the Major League Baseball All-Star
	Game, a game of the National Collegiate Athletic Association Bowl
	Championship Series or its successor or a National Collegiate
	Athletic Association Division I Football Bowl Subdivision
	postseason playoff or championship game, the National Collegiate
	Athletic Association men's or women's lacrosse championships, a
	World Cup Soccer game, the World Cup soccer tournament, the Major
	League Soccer All-Star Game, the Major League Soccer Cup, a
	Professional Rodeo Cowboys Association Finals event, an Elite Rodeo
	Association World Championship, the United States Open
	Championship, the World Games, a national collegiate championship
	of an amateur sport sanctioned by the national governing body of the
	sport that is recognized by the United States Olympic Committee, an
	Olympic activity, including a Junior or Senior activity, training
	program, or feeder program sanctioned by the United States Olympic
	Committee's Community Olympic Development Program, the Amateur
	Athletic Union Junior Olympic Games, a mixed martial arts
	championship, the Breeders' Cup World Championships, a Formula One
	automobile race, the Moto Grand Prix of the United States, the
	Academy of Country Music Awards, the National Cutting Horse
	Association Triple Crown, a national political convention of the
	Republican National Committee or the Democratic National
	Committee, a presidential general election debate, or the largest
	event held each year at a sports entertainment venue in this state
	with a permanent seating capacity, including grandstand and premium
	seating, of not less than 125,000.  The term includes any
	activities related to or associated with an event.
	(5)  "Site selection organization" means:
	(A)  the National Football League, the National
	Collegiate Athletic Association, the National Basketball
	Association, ESPN or an affiliate, the National Hockey League,
	Major League Baseball, the Federation Internationale de Football
	Association (FIFA), the International World Games Association, the
	National Association for Stock Car Auto Racing (NASCAR), Dorna
	Sports, the Amateur Athletic Union, the Professional Rodeo Cowboys
	Association, the Elite Rodeo Association, Major League Soccer, the
	United States Golf Association, or the United States Olympic
	Committee;
	(B)  the national governing body of a sport that
	is recognized by the United States Olympic Committee, the National
	Thoroughbred Racing Association, Formula One Management Limited,
	or the Federation Internationale de l'Automobile;
	(C)  the Academy of Country Music;
	(D)  the National Cutting Horse Association;
	(E)  the Republican National Committee or the
	Democratic National Committee; [or]
	(F)  the Ultimate Fighting Championship; or
	(G)  the Commission on Presidential Debates.
	SECTION 6.  Section 5A, Chapter 1507 (S.B. 456), Acts of the
	76th Legislature, Regular Session, 1999 (Article 5190.14, Vernon's
	Texas Civil Statutes), is amended by amending Subsections (a-1),
	(a-2), (b), (b-1), (c), (d), (d-1), (e), (f), (i), (j), (k), (l),
	(m), (p), (v), (w), and (y) and adding Subsection (a-3) to read as
	follows:
	(a-1)  An event not listed in Subsection (a)(4) of this
	section is ineligible for funding under this section.  A listed
	event may receive funding under this section only if:
	(1)  a site selection organization selects a site
	located in this state for the event to be held one time or, for an
	event scheduled to be held each year for a period of years under an
	event contract, or an event support contract, one time each year for
	the period of years, after considering, through a highly
	competitive selection process, one or more sites that are not
	located in this state;
	(2)  a site selection organization selects a site in
	this state as:
	(A)  the sole site for the event; or
	(B)  the sole site for the event in a region
	composed of this state and one or more adjoining states;
	(3)  the event is held not more than one time in any
	year; and
	(4)  the amount of the incremental increase in tax
	receipts determined by the department [comptroller] under
	Subsection (b) of this section equals or exceeds $1 million,
	provided that for an event scheduled to be held each year for a
	period of years under an event contract or event support contract,
	the incremental increase in tax receipts shall be calculated as if
	the event did not occur in the prior year.
	(a-2)  Subsection (a-1)(1) of this section does not apply to
	an event that is the largest event held each year at a sports
	entertainment venue in this state with a permanent seating
	capacity, including grandstand and premium seating, of not less
	than 125,000.  If an endorsing municipality or endorsing county
	requests the department [comptroller] to make a determination under
	Subsection (b) of this section for an event described by this
	subsection, the provisions of this section apply to that event as if
	it satisfied the eligibility requirements for an event under
	Subsection (a-1)(1) of this section.
	(a-3)  For purposes of Subsection (a-1) of this section, each
	presidential general election debate in a series of presidential
	debates before a general election is considered a separate, single
	event.
	(b)  If a site selection organization selects a site for an
	event in this state pursuant to an application by a local organizing
	committee, endorsing municipality, or endorsing county, upon
	request of a local organizing committee, endorsing municipality, or
	endorsing county, the department [comptroller] shall determine for
	a one-year period that begins two months before the date on which
	the event will begin, in accordance with procedures developed by
	the department [comptroller]:
	(1)  the incremental increase in the receipts to the
	state from taxes imposed under Chapters 151, 152, 156, and 183, Tax
	Code, and under Title 5, Alcoholic Beverage Code, within the market
	areas designated under Subsection (c) of this section, that is
	directly attributable, as determined by the department
	[comptroller], to the preparation for and presentation of the event
	and related activities;
	(2)  the incremental increase in the receipts collected
	by the state on behalf of each endorsing municipality in the market
	area from the sales and use tax imposed by each endorsing
	municipality under Section 321.101(a), Tax Code, and the mixed
	beverage tax revenue to be received by each endorsing municipality
	under Section 183.051(b), Tax Code, that is directly attributable,
	as determined by the department [comptroller], to the preparation
	for and presentation of the event and related activities;
	(3)  the incremental increase in the receipts collected
	by the state on behalf of each endorsing county in the market area
	from the sales and use tax imposed by each endorsing county under
	Section 323.101(a), Tax Code, and the mixed beverage tax revenue to
	be received by each endorsing county under Section 183.051(b), Tax
	Code, that is directly attributable, as determined by the
	department [comptroller], to the preparation for and presentation
	of the event and related activities;
	(4)  the incremental increase in the receipts collected
	by each endorsing municipality in the market area from the hotel
	occupancy tax imposed under Chapter 351, Tax Code, that is directly
	attributable, as determined by the department [comptroller], to the
	preparation for and presentation of the event and related
	activities; and
	(5)  the incremental increase in the receipts collected
	by each endorsing county in the market area from the hotel occupancy
	tax imposed under Chapter 352, Tax Code, that is directly
	attributable, as determined by the department [comptroller], to the
	preparation for and presentation of the event and related
	activities.
	(b-1)  A request for a determination of the amount of
	incremental increase in tax receipts specified by Subsection (b) of
	this section must be submitted to the department [comptroller] not
	earlier than one year and not later than 45 days before the date the
	event begins.  The department [comptroller] shall base the
	determination specified by Subsection (b) of this section on
	information submitted by the local organizing committee, endorsing
	municipality, or endorsing county, and must make the determination
	not later than the 30th day after the date the department
	[comptroller] receives the request and related information.
	(c)  For the purposes of Subsection (b)(1) of this section,
	the department [comptroller] shall designate as a market area for
	the event each area in which the department [comptroller]
	determines there is a reasonable likelihood of measurable economic
	impact directly attributable to the preparation for and
	presentation of the event and related activities, including areas
	likely to provide venues, accommodations, and services in
	connection with the event based on the proposal provided by the
	local organizing committee to the department [comptroller].  The
	department [comptroller] shall determine the geographic boundaries
	of each market area.  An endorsing municipality or endorsing county
	that has been selected as the site for the event must be included in
	a market area for the event.
	(d)  Each endorsing municipality or endorsing county shall
	remit to the comptroller and the comptroller shall deposit into a
	trust fund created by the comptroller, at the direction of the
	department, and designated as the Major Events trust fund the
	amount of the municipality's or county's hotel occupancy tax
	revenue determined by the department under Subsection (b)(4) or
	(b)(5) of this section, less any amount of the revenue that the
	municipality or county determines is necessary to meet the
	obligations of the municipality or county.  The comptroller, at the
	direction of the department, shall retain the amount of sales and
	use tax revenue and mixed beverage tax revenue determined by the
	department under Subsection (b)(2) or (b)(3) of this section from
	the amounts otherwise required to be sent to the municipality under
	Sections 321.502 and 183.051(b), Tax Code, or to the county under
	Sections 323.502 and 183.051(b), Tax Code, and deposit into the
	trust fund the tax revenues, less any amount of the revenue that the
	municipality or county determines is necessary to meet the
	obligations of the municipality or county.  The comptroller shall
	begin retaining and depositing the local tax revenues with the
	first distribution of that tax revenue that occurs after the first
	day of the one-year period described by Subsection (b) of this
	section or at a time otherwise determined to be practicable by the
	department [comptroller] and shall discontinue retaining the local
	tax revenues under this subsection when the amount of the
	applicable tax revenue determined by the department under
	Subsection (b)(2) or (b)(3) of this section has been retained.  The
	Major Events trust fund is established outside the state treasury
	and is held in trust by the comptroller for administration of this
	Act.  Money in the trust fund may be disbursed by the department
	[comptroller] without appropriation only as provided by this
	section.
	(d-1)  Not later than the 90th day after the last day of an
	event and in lieu of the local tax revenues remitted [to] or
	retained [by the comptroller] under Subsection (d) of this section,
	a municipality or county may remit to the department [comptroller]
	for deposit in the Major Events trust fund other local funds in an
	amount equal to the total amount of local tax revenue determined by
	the department under Subsections (b)(2) through (5) of this
	section.  The amount deposited by the department [comptroller]
	into the Major Events trust fund under this subsection is subject to
	Subsection (f) of this section.
	(e)  In addition to the tax revenue deposited in the Major
	Events trust fund under Subsection (d) of this section, an
	endorsing municipality or endorsing county may guarantee its
	obligations under an event support contract and this section by
	pledging surcharges from user fees, including parking or ticket
	fees, charged in connection with the event.  An endorsing
	municipality or endorsing county may collect and remit to the
	department [comptroller] surcharges and user fees attributable to
	the event for deposit into the Major Events trust fund.
	(f)  The comptroller, at the direction of the department,
	shall transfer [deposit] into the Major Events trust fund a portion
	of the state tax revenue not to exceed the amount determined by the
	department under Subsection (b)(1) of this section in an amount
	equal to 6.25 times the amount of the local revenue retained or
	remitted under this section, including:
	(1)  local sales and use tax revenue;
	(2)  mixed beverage tax revenue;
	(3)  hotel occupancy tax revenue; and
	(4)  surcharge and user fee revenue.
	(i)  A local organizing committee, endorsing municipality,
	or endorsing county shall provide information required by the
	department [comptroller] to enable the department [comptroller] to
	fulfill the department's [comptroller's] duties under this section,
	including annual audited statements of any financial records
	required by a site selection organization and data obtained by the
	local organizing committee, an endorsing municipality, or an
	endorsing county relating to attendance at the event, including an
	estimate of the number of people expected to attend the event who
	are not residents of this state, and to the economic impact of the
	event.  A local organizing committee, endorsing municipality, or
	endorsing county must provide an annual audited financial statement
	required by the department [comptroller], if any, not later than
	the end of the fourth month after the date the period covered by the
	financial statement ends.  After the conclusion of an event and on
	the department's [comptroller's] request, a local organizing
	committee, endorsing municipality, or endorsing county must
	provide information relating to the event, such as attendance
	figures, including an estimate of the number of attendees at the
	event who are not residents of this state, financial information,
	or other public information held by the local organizing committee,
	endorsing municipality, or endorsing county that the department
	[comptroller] considers necessary.
	(j)  Not later than the 30th day after the date a request of a
	local organizing committee, endorsing municipality, or endorsing
	county is submitted to the department [comptroller] under
	Subsection (b-1) of this section, the department [comptroller]
	shall provide an estimate of the total amount of tax revenue that
	would be deposited in the Major Events trust fund under this section
	in connection with that event, if the event were to be held in this
	state at a site selected pursuant to an application by a local
	organizing committee, endorsing municipality, or endorsing
	county.  A local organizing committee, endorsing municipality, or
	endorsing county may submit the department's [comptroller's]
	estimate to a site selection organization.
	(k)  The department [comptroller] may make a disbursement
	from the Major Events trust fund on the prior approval of each
	contributing endorsing municipality or endorsing county for a
	purpose for which a local organizing committee, an endorsing
	municipality, or an endorsing county or the state is obligated
	under a game support contract or event support contract.  If an
	obligation is incurred under a games support contract or event
	support contract to make a structural improvement to the site or to
	add a fixture to the site for purposes of an event and that
	improvement or fixture is expected to derive most of its value in
	subsequent uses of the site for future events, a disbursement from
	the trust fund made for purposes of that obligation is limited to
	five percent of the cost of the improvement or fixture and the
	remainder of the obligation is not eligible for a disbursement from
	the trust fund, unless the improvement or fixture is for a publicly
	owned facility.  In considering whether to make a disbursement from
	the trust fund, the department [comptroller] may not consider a
	contingency clause in an event support contract as relieving a
	local organizing committee's, endorsing municipality's, or
	endorsing county's obligation to pay a cost under the contract.  A
	disbursement may not be made from the trust fund that the department
	[comptroller] determines would be used for the purpose of
	soliciting the relocation of a professional sports franchise
	located in this state.
	(l)  If a disbursement is made from the Major Events trust
	fund under Subsection (k) of this section, the obligation shall be
	satisfied proportionately from the state and local revenue in the
	trust fund.
	(m)  On payment of all state, municipal, or county
	obligations under a game support contract or event support contract
	related to the location of any particular event in the state, the
	department [comptroller] shall remit to each endorsing entity, in
	proportion to the amount contributed by the entity, any money
	remaining in the trust fund.
	(p)  The department [comptroller] may not undertake any of
	the responsibilities or duties set forth in this section unless:
	(1)  a request is submitted by the municipality or the
	county in which the event will be located;
	(2)  the event meets all the requirements for funding
	under this section, including Subsection (a-1) of this section; and
	(3)  the request is accompanied by documentation from a
	site selection organization selecting the site for the event.
	(v)  The department [comptroller] may adopt rules necessary
	to implement this section.
	(w)  Not later than 10 months after the last day of an event
	eligible for disbursements from the Major Events trust fund for
	costs associated with the event, the department [comptroller] using
	existing resources shall complete a study in the market area of the
	event on the measurable economic impact directly attributable to
	the preparation for and presentation of the event and related
	activities. The department [comptroller] shall post on the
	department's [comptroller's] Internet website:
	(1)  the results of the study conducted under this
	subsection, including any source documentation or other
	information relied on by the department [comptroller] for the
	study;
	(2)  the amount of incremental increase in tax receipts
	for the event determined by the department under Subsection (b) of
	this section;
	(3)  the site selection organization documentation
	described in Subsection (p)(3) of this section;
	(4)  any source documentation or information described
	under Subsection (i) of this section that was relied on by the
	department [comptroller] in making the determination of the amount
	of incremental increase in tax receipts under Subsection (b) of
	this section; and
	(5)  documentation verifying that:
	(A)  a request submitted by a local organizing
	committee, endorsing municipality, or endorsing county under
	Subsection (p) of this section is complete and certified as such by
	the department [comptroller];
	(B)  the determination on the amount of
	incremental increases in tax receipts under Subsection (b) of this
	section considered the information submitted by a local organizing
	committee, endorsing municipality, or endorsing county as required
	under Subsection (b-1) of this section; and
	(C)  each deadline established under this section
	was timely met.
	(y)  After the conclusion of an event, the department
	[comptroller] shall compare information on the actual attendance
	figures provided to the department [comptroller] under Subsection
	(i) of this section with the estimated attendance numbers used to
	determine the incremental increase in tax receipts under Subsection
	(b) of this section. If the actual attendance figures are
	significantly lower than the estimated attendance numbers, the
	department [comptroller] may reduce the amount of a disbursement
	for an endorsing entity under the Major Events trust fund in
	proportion to the discrepancy between the actual and estimated
	attendance and in proportion to the amount contributed to the fund
	by the entity.  The department [comptroller] by rule shall define
	"significantly lower" for purposes of this subsection and provide
	the manner in which a disbursement may be proportionately reduced.
	This subsection does not affect the remittance of any money
	remaining in the fund in accordance with Subsection (m) of this
	section.
	SECTION 7.  Sections 5B(b), (c), (d), (f), (g), (i), (j),
	(k), (m), and (o), Chapter 1507 (S.B. 456), Acts of the 76th
	Legislature, Regular Session, 1999 (Article 5190.14, Vernon's
	Texas Civil Statutes), are amended to read as follows:
	(b)  If a site selection organization selects a site for a
	motor sports racing event in this state pursuant to an application
	by a local organizing committee, endorsing municipality, or
	endorsing county, not later than three months before the date of the
	motor sports racing event, the department [comptroller] shall
	determine for the 30-day period that ends at the end of the day
	after the date on which the racing event will be held, in accordance
	with procedures developed by the department [comptroller]:
	(1)  the incremental increase in the receipts to the
	state from taxes imposed under Chapters 151, 152, 156, and 183, Tax
	Code, and under Title 5, Alcoholic Beverage Code, within the market
	areas designated under Subsection (c) of this section, that is
	directly attributable, as determined by the department
	[comptroller], to the preparation for and presentation of the
	racing event;
	(2)  the incremental increase in the receipts collected
	by the state on behalf of each endorsing municipality in the market
	area from the sales and use tax imposed by each endorsing
	municipality under Section 321.101(a), Tax Code, and the mixed
	beverage tax revenue to be received by each endorsing municipality
	under Section 183.051(b), Tax Code, that is directly attributable,
	as determined by the department [comptroller], to the preparation
	for and presentation of the racing event;
	(3)  the incremental increase in the receipts collected
	by the state on behalf of each endorsing county in the market area
	from the sales and use tax imposed by each endorsing county under
	Section 323.101(a), Tax Code, and the mixed beverage tax revenue to
	be received by each endorsing county under Section 183.051(b), Tax
	Code, that is directly attributable, as determined by the
	department [comptroller], to the preparation for and presentation
	of the racing event;
	(4)  the incremental increase in the receipts collected
	by each endorsing municipality in the market area from the hotel
	occupancy tax imposed under Chapter 351, Tax Code, that is directly
	attributable, as determined by the department [comptroller], to the
	preparation for and presentation of the racing event; and
	(5)  the incremental increase in the receipts collected
	by each endorsing county in the market area from the hotel occupancy
	tax imposed under Chapter 352, Tax Code, that is directly
	attributable, as determined by the department [comptroller], to the
	preparation for and presentation of the racing event.
	(c)  For the purposes of Subsection (b)(1) of this section,
	the department [comptroller] shall designate as a market area for
	the motor sports racing event each area in which the department
	[comptroller] determines there is a reasonable likelihood of
	measurable economic impact directly attributable to the
	preparation for and presentation of the racing event, including
	areas likely to provide venues, accommodations, and services in
	connection with the racing event based on a proposal or other
	information provided by an endorsing municipality, endorsing
	county, or local organizing committee to the department
	[comptroller].  The department [comptroller] shall determine the
	geographic boundaries of each market area.  An endorsing
	municipality or endorsing county that has been selected as the site
	for the racing event must be included in a market area for the
	racing event.
	(d)  Each endorsing municipality or endorsing county shall
	remit to the comptroller and the comptroller shall deposit into a
	trust fund created by the comptroller, at the direction of the
	department, and designated as the Motor Sports Racing trust fund
	for the particular event the amount of the municipality's or
	county's hotel occupancy tax revenue determined by the department
	under Subsection (b)(4) or (5) of this section, less any amount of
	the revenue that the municipality or county determines is necessary
	to meet the obligations of the municipality or county.  The
	comptroller, at the direction of the department, shall retain the
	amount of sales and use tax revenue and mixed beverage tax revenue
	determined by the department under Subsection (b)(2) or (3) of this
	section from the amounts otherwise required to be sent to the
	municipality under Sections 321.502 and 183.051(b), Tax Code, or to
	the county under Sections 323.502 and 183.051(b), Tax Code, and
	deposit into the trust fund the tax revenues, less any amount of the
	revenue that the municipality or county determines is necessary to
	meet the obligations of the municipality or county.  The
	comptroller shall begin retaining and depositing the local tax
	revenues with the first distribution of that tax revenue that
	occurs after the first day of the 30-day period described by
	Subsection (b) of this section and shall discontinue retaining the
	local tax revenues under this subsection when the amount of the
	applicable tax revenue determined under Subsection (b)(2) or (3) of
	this section has been retained.  The Motor Sports Racing trust fund
	is established outside the state treasury and is held in trust by
	the comptroller for administration of this section. Money in the
	trust fund may be disbursed by the department [comptroller] without
	appropriation only as provided by this section.
	(f)  The comptroller, at the direction of the department,
	shall transfer [deposit] a portion of the state tax revenue
	determined by the department under Subsection (b)(1) of this
	section in an amount equal to 6.25 times the amount of the local
	sales and use tax revenue and mixed beverage tax revenue retained
	and the hotel occupancy tax revenue remitted by an endorsing
	municipality or endorsing county under Subsection (d) of this
	section.
	(g)  To meet its obligations under a motor sports racing
	event support contract or event support contract to improve,
	renovate, or acquire facilities or to acquire equipment, an
	endorsing municipality by ordinance or an endorsing county by order
	may authorize the issuance of notes. An endorsing municipality or
	endorsing county may provide that the notes be paid from and secured
	by amounts on deposit or amounts to be transferred or deposited into
	the Motor Sports Racing trust fund or surcharges from user fees,
	including parking or ticket fees, charged in connection with the
	racing event. Any note issued must mature not later than seven
	years from its date of issuance.
	(i)  A local organizing committee, endorsing municipality,
	or endorsing county shall provide information required by the
	department [comptroller] to enable the department [comptroller] to
	fulfill the department's [comptroller's] duties under this section,
	including annual audited statements of any financial records
	required by a site selection organization and data obtained by the
	local organizing committee, an endorsing municipality, or an
	endorsing county relating to attendance at the motor sports racing
	event and to the economic impact of the racing event.  A local
	organizing committee, endorsing municipality, or endorsing county
	must provide an annual audited financial statement required by the
	department [comptroller], if any, not later than the end of the
	fourth month after the date the period covered by the financial
	statement ends.
	(j)  The department [comptroller] shall provide an estimate
	not later than three months before the date of a motor sports racing
	event of the total amount of tax revenue that would be transferred
	to or deposited in the Motor Sports Racing trust fund under this
	section in connection with that racing event, if the racing event
	were to be held in this state at a site selected pursuant to an
	application by a local organizing committee, endorsing
	municipality, or endorsing county.  The department [comptroller]
	shall provide the estimate on request to a local organizing
	committee, endorsing municipality, or endorsing county.  A local
	organizing committee, endorsing municipality, or endorsing county
	may submit the department's [comptroller's] estimate to a site
	selection organization.
	(k)  The department [comptroller] may make a disbursement
	from the Motor Sports Racing trust fund on the prior approval of
	each contributing endorsing municipality or endorsing county for a
	purpose for which an endorsing municipality or endorsing county or
	the state is obligated under a motor sports racing event support
	contract or event support contract.  A disbursement may not be made
	from the trust fund that the department [comptroller] determines
	would be used for the purpose of soliciting the relocation of a
	professional sports franchise located in this state.
	(m)  On payment of all state, municipal, or county
	obligations under a motor sports racing support contract or event
	support contract related to the location of any particular racing
	event in the state, the department [comptroller] shall remit to
	each endorsing entity, in proportion to the amount contributed by
	the entity, any money remaining in the trust fund.
	(o)  The department [comptroller] may not undertake any of
	the responsibilities or duties set forth in this section unless a
	request is submitted by the municipality and the county in which the
	motor sports racing event will be held.  The request must be
	accompanied by documentation from a site selection organization
	selecting the site for the racing event.
	SECTION 8.  Sections 5C(b), (b-1), (c), (c-1), (d), (d-1),
	(e), (f), (g), (i), (j), (k), (k-1), (m), (o), (p), (q), (r), and
	(t), Chapter 1507 (S.B. 456), Acts of the 76th Legislature, Regular
	Session, 1999 (Article 5190.14, Vernon's Texas Civil Statutes), are
	amended to read as follows:
	(b)  If a site selection organization selects a site for an
	event in this state pursuant to an application by a local organizing
	committee, endorsing municipality, or endorsing county, not later
	than three months before the date of the event, the department
	[comptroller] shall determine for the 30-day period that ends at
	the end of the day after the date on which the event will be held or,
	if the event occurs on more than one day, after the last date on
	which the event will be held, in accordance with procedures
	developed by the department [comptroller]:
	(1)  the incremental increase in the receipts to this
	state from taxes imposed under Chapters 151, 152, 156, and 183, Tax
	Code, and under Title 5, Alcoholic Beverage Code, within the market
	areas designated under Subsection (c) of this section, that is
	directly attributable, as determined by the department
	[comptroller], to the preparation for and presentation of the event
	and related activities;
	(2)  the incremental increase in the receipts collected
	by this state on behalf of each endorsing municipality in the market
	area from the sales and use tax imposed by each endorsing
	municipality under Section 321.101(a), Tax Code, and the mixed
	beverage tax revenue to be received by each endorsing municipality
	under Section 183.051(b), Tax Code, that is directly attributable,
	as determined by the department [comptroller], to the preparation
	for and presentation of the event and related activities;
	(3)  the incremental increase in the receipts collected
	by this state on behalf of each endorsing county in the market area
	from the sales and use tax imposed by each endorsing county under
	Section 323.101(a), Tax Code, and the mixed beverage tax revenue to
	be received by each endorsing county under Section 183.051(b), Tax
	Code, that is directly attributable, as determined by the
	department [comptroller], to the preparation for and presentation
	of the event and related activities;
	(4)  the incremental increase in the receipts collected
	by each endorsing municipality in the market area from the hotel
	occupancy tax imposed under Chapter 351, Tax Code, that is directly
	attributable, as determined by the department [comptroller], to the
	preparation for and presentation of the event and related
	activities; and
	(5)  the incremental increase in the receipts collected
	by each endorsing county in the market area from the hotel occupancy
	tax imposed under Chapter 352, Tax Code, that is directly
	attributable, as determined by the department [comptroller], to the
	preparation for and presentation of the event and related
	activities.
	(b-1)  The number of requests for funding under this section
	that may be submitted by an endorsing county or endorsing
	municipality during any 12-month period for an event for which the
	department [comptroller] determines that the total amount of the
	incremental increase in tax receipts under Subsection (b) of this
	section is less than $200,000 is limited to, during any 12-month
	period, not more than 10 events, only three of which may be
	nonsporting events.
	(c)  For the purposes of Subsection (b)(1) of this section,
	the department [comptroller] shall designate as a market area for
	the event each area in which the department [comptroller]
	determines there is a reasonable likelihood of measurable economic
	impact directly attributable to the preparation for and
	presentation of the event and related activities, including areas
	likely to provide venues, accommodations, and services in
	connection with the event based on the proposal provided by the
	local organizing committee to the department [comptroller].  The
	department [comptroller] shall determine the geographic boundaries
	of each market area.  An endorsing municipality or endorsing county
	that has been selected as the site for the event must be included in
	a market area for the event.
	(c-1)  The department [comptroller] shall base the
	determination specified by Subsection (b) of this section on
	information submitted by the local organizing committee, endorsing
	municipality, or endorsing county, and must make the determination
	not later than the 30th day after the date the department
	[comptroller] receives the information.
	(d)  Each endorsing municipality or endorsing county shall
	remit to the comptroller and the comptroller shall deposit into a
	trust fund created by the comptroller, at the direction of the
	department, and designated as the Events trust fund the amount of
	the municipality's or county's hotel occupancy tax revenue
	determined by the department under Subsection (b)(4) or (5) of this
	section, less any amount of the revenue that the municipality or
	county determines is necessary to meet the obligations of the
	municipality or county.  The comptroller, at the direction of the
	department, shall retain the amount of sales and use tax revenue and
	mixed beverage tax revenue determined by the department under
	Subsection (b)(2) or (3) of this section from the amounts otherwise
	required to be sent to the municipality under Sections 321.502 and
	183.051(b), Tax Code, or to the county under Sections 323.502 and
	183.051(b), Tax Code, and deposit into the trust fund the tax
	revenues, less any amount of the revenue that the municipality or
	county determines is necessary to meet the obligations of the
	municipality or county.  The comptroller shall begin retaining and
	depositing the local tax revenues with the first distribution of
	that tax revenue that occurs after the first day of the period
	described by Subsection (b) of this section or at a time otherwise
	determined to be practicable by the department [comptroller] and
	shall discontinue retaining the local tax revenues under this
	subsection when the amount of the applicable tax revenue determined
	by the department under Subsection (b)(2) or (3) of this section has
	been retained.  The Events trust fund is established outside the
	state treasury and is held in trust by the comptroller for
	administration of this section.  Money in the trust fund may be
	disbursed by the department [comptroller] without appropriation
	only as provided by this section.
	(d-1)  Not later than the 90th day after the last day of an
	event and in lieu of the local tax revenues remitted [to] or
	retained [by the comptroller] under Subsection (d) of this section,
	a municipality or county may remit to the department [comptroller]
	for deposit in the Events trust fund other local funds in an amount
	equal to the total amount of local tax revenue determined by the
	department under Subsections (b)(2) through (5) of this section.
	The amount deposited by the department [comptroller] into the
	Events trust fund under this subsection is subject to Subsection
	(f) of this section.
	(e)  In addition to the tax revenue deposited in the Events
	trust fund under Subsection (d) of this section, an endorsing
	municipality or endorsing county may guarantee its obligations
	under an event support contract and this section by pledging
	surcharges from user fees, including parking or ticket fees,
	charged in connection with the event.  An endorsing municipality or
	endorsing county may collect and remit to the department
	[comptroller] surcharges and user fees attributable to the event
	for deposit into the Events trust fund.
	(f)  The comptroller, at the direction of the department,
	shall transfer [deposit] into the Events trust fund a portion of the
	state tax revenue not to exceed the amount determined by the
	department under Subsection (b)(1) of this section in an amount
	equal to 6.25 times the amount of the local tax revenue retained or
	remitted under this section, including:
	(1)  local sales and use tax revenue;
	(2)  mixed beverage tax revenue;
	(3)  hotel occupancy tax revenue; and
	(4)  surcharge and user fee revenue.
	(g)  To meet its obligations under an event support contract
	to improve, construct, renovate, or acquire facilities or to
	acquire equipment, an endorsing municipality by ordinance or an
	endorsing county by order may authorize the issuance of notes. An
	endorsing municipality or endorsing county may provide that the
	notes be paid from and secured by amounts on deposit or amounts to
	be transferred or deposited into the Events trust fund or
	surcharges from user fees, including parking or ticket fees,
	charged in connection with the event. Any note issued must mature
	not later than seven years from its date of issuance.
	(i)  A local organizing committee, endorsing municipality,
	or endorsing county shall provide information required by the
	department [comptroller] to enable the department [comptroller] to
	fulfill the department's [comptroller's] duties under this section,
	including annual audited statements of any financial records
	required by a site selection organization and data obtained by the
	local organizing committee, an endorsing municipality, or an
	endorsing county relating to attendance at the event, including an
	estimate of the number of people expected to attend the event who
	are not residents of this state, and to the economic impact of the
	event.  A local organizing committee, endorsing municipality, or
	endorsing county must provide an annual audited financial statement
	required by the department [comptroller], if any, not later than
	the end of the fourth month after the date the period covered by the
	financial statement ends.  After the conclusion of an event and on
	the department's [comptroller's] request, a local organizing
	committee, endorsing municipality, or endorsing county must
	provide information relating to the event, such as attendance
	figures, including an estimate of the number of people who are not
	residents of this state who attended the event, financial
	information, or other public information held by the local
	organizing committee, endorsing municipality, or endorsing county
	that the department [comptroller] considers necessary.
	(j)  The department [comptroller] shall provide an estimate
	not later than three months before the date of an event of the total
	amount of tax revenue that would be transferred into or deposited in
	the Events trust fund under this section in connection with that
	event, if the event were to be held in this state at a site selected
	pursuant to an application by a local organizing committee,
	endorsing municipality, or endorsing county.  The department
	[comptroller] shall provide the estimate on request to a local
	organizing committee, endorsing municipality, or endorsing county.
	A local organizing committee, endorsing municipality, or endorsing
	county may submit the department's [comptroller's] estimate to a
	site selection organization.
	(k)  The department [comptroller] may make a disbursement
	from the Events trust fund on the prior approval of each
	contributing endorsing municipality or endorsing county for a
	purpose for which a local organizing committee, an endorsing
	municipality, or an endorsing county or this state is obligated
	under an event support contract, including an obligation to pay
	costs incurred in the conduct of the event and costs incurred in
	making preparations necessary for the event.  If an obligation is
	incurred under an event support contract to make a structural
	improvement to the site or to add a fixture to the site for purposes
	of an event and that improvement or fixture is expected to derive
	most of its value in subsequent uses of the site for future events,
	a disbursement from the trust fund made for purposes of that
	obligation is limited to five percent of the cost of the improvement
	or fixture and the remainder of the obligation is not eligible for a
	disbursement from the trust fund, unless the improvement or fixture
	is for a publicly owned facility.  In considering whether to make a
	disbursement from the trust fund, the department [comptroller] may
	not consider a contingency clause in an event support contract as
	relieving a local organizing committee's, endorsing
	municipality's, or endorsing county's obligation to pay a cost
	under the contract.
	(k-1)  A disbursement may not be made from the trust fund
	that the department [comptroller] determines would be used for the
	purpose of:
	(1)  soliciting the relocation of a professional sports
	franchise located in this state;
	(2)  constructing an arena, stadium, or convention
	center; or
	(3)  conducting usual and customary maintenance of a
	facility.
	(m)  On payment of all state, municipal, or county
	obligations under an event support contract related to the location
	of any particular event in this state, the department [comptroller]
	shall remit to each endorsing entity, in proportion to the amount
	contributed by the entity, any money remaining in the Events trust
	fund.
	(o)  The department [comptroller] may not undertake any of
	the responsibilities or duties set forth in this section unless a
	request is submitted by the municipality or the county in which the
	event will be located.  The request must be accompanied by
	documentation from a site selection organization selecting the site
	for the event.
	(p)  The department [comptroller] may adopt rules necessary
	to implement this section.
	(q)  In determining the amount of state revenue available
	under Subsection (b)(1) of this section, the department
	[comptroller] may consider whether:
	(1)  the event has been held in this state on previous
	occasions; and
	(2)  changes to the character of the event could affect
	the incremental increase in receipts collected and remitted to the
	state by an endorsing county or endorsing municipality under that
	subsection.
	(r)  The department [comptroller] may adopt a model event
	support contract and make the contract available on the
	department's [comptroller's] Internet website.  The adoption by
	the department [comptroller] of a model event support contract
	under this subsection does not require use of the model event
	support contract for purposes of this section.
	(t)  After the conclusion of an event, the department
	[comptroller] shall compare information on the actual attendance
	figures provided to the department [comptroller] under Subsection
	(i) of this section with the estimated attendance numbers used to
	determine the incremental increase in tax receipts under Subsection
	(b) of this section.  If the actual attendance figures are
	significantly lower than the estimated attendance numbers, the
	department [comptroller] may reduce the amount of a disbursement
	for an endorsing entity under the Events trust fund in proportion to
	the discrepancy between the actual and estimated attendance and in
	proportion to the amount contributed to the fund by the entity.  The
	department [comptroller] by rule shall define "significantly
	lower" for purposes of this subsection and provide the manner in
	which a disbursement may be proportionately reduced.  This
	subsection does not affect the remittance of any money remaining in
	the fund in accordance with Subsection (m) of this section.
	SECTION 9.  Section 6(b), Chapter 1507 (S.B. 456), Acts of
	the 76th Legislature, Regular Session, 1999 (Article 5190.14,
	Vernon's Texas Civil Statutes), is amended to read as follows:
	(b)  If an endorsing municipality or endorsing county is
	required to hold an election under this section and the
	contribution of a portion of the municipality's or county's sales
	and use taxes to the Olympic Games trust fund under Section 5 of
	this Act is not approved by a majority of the voters voting in the
	election:
	(1)  the comptroller may not establish the Olympic
	Games trust fund under Section 5 of this Act, may not retain the
	municipality's or county's tax revenue under Section 5(d) of this
	Act from amounts otherwise required to be sent to that municipality
	or county, and may not transfer [deposit] any state tax revenue into
	the trust fund;
	(2)  the department [comptroller] is not required to
	determine the incremental increase in state, county, or municipal
	tax revenue under Section 5(b) of this Act; and
	(3)  the department may not enter into a games support
	contract relating to the games for which the municipality or county
	has authorized a bid on its behalf.
	SECTION 10.  The following laws are repealed:
	(1)  Section 5C(s), Chapter 1507 (S.B. 456), Acts of
	the 76th Legislature, Regular Session, 1999 (Article 5190.14,
	Vernon's Texas Civil Statutes); and
	(2)  Chapter 398, Local Government Code.
	SECTION 11.  As soon as is practicable after the effective
	date of this Act, but not later than September 10, 2015, the office
	of the governor and the comptroller of public accounts shall
	develop and adopt a memorandum of understanding that:
	(1)  identifies in detail the applicable powers and
	duties of the comptroller that are being transferred to the office
	of the governor as a result of this Act; and
	(2)  establishes a plan for the identification and
	transfer of records, property, and unspent appropriations of the
	comptroller that are used for purposes of managing the funds
	transferred to the office of the governor.
	SECTION 12.  (a)  Not later than September 10, 2015:
	(1)  the administration of the Pan American Games trust
	fund, Olympic Games trust fund, Major Events trust fund, Motor
	Sports Racing trust fund, and Events trust fund for sporting and
	non-sporting events shall be transferred from the comptroller of
	public accounts to the Texas Economic Development and Tourism
	Office;
	(2)  all rules, forms, policies, procedures, or
	decisions of the comptroller that are related to the trust funds
	described by Subdivision (1) of this subsection are continued in
	effect as rules, forms, policies, procedures, or decisions of the
	economic development and tourism division, office of the governor,
	until superseded by a rule or other appropriate act of the Texas
	Economic Development and Tourism Office; and
	(3)  a reference in law or administrative rule to the
	comptroller relating to the decisions for and administration of the
	trust funds described by Subdivision (1) of this subsection, other
	than a duty typically performed by the comptroller related to a
	state fund, means the Texas Economic Development and Tourism
	Office.
	(b)  Before the transfer of the administration of the Pan
	American Games trust fund, Olympic Games trust fund, Major Events
	trust fund, Motor Sports Racing trust fund, and Events trust fund
	for sporting and non-sporting events, the comptroller and the Texas
	Economic Development and Tourism Office shall coordinate the
	transfer of powers and duties, including records and other items,
	in accordance with the memorandum of understanding adopted under
	Section 11 of this Act, to ensure a smooth transition.
	SECTION 13.  Notwithstanding the repeal by this Act of
	Chapter 398, Local Government Code, a special event plan approved
	under former Chapter 398 of that code before September 1, 2015, is
	governed by the law as it existed immediately before the effective
	date of this Act, and that law is continued in effect for that
	purpose.
	SECTION 14.  This Act takes effect September 1, 2015.