Relating to the events trust fund and to abolishing the Pan American Games trust fund, Olympic Games trust fund, and motor sports racing trust fund.

89(R) HB 3349 - Engrossed version - Bill Text

89R24238 BEE-F

By: Tepper, Morales of Maverick

H.B. No. 3349

A BILL TO BE ENTITLED

AN ACT

relating to the events trust fund and to abolishing the Pan American

Games trust fund, Olympic Games trust fund, and motor sports racing

trust fund.

BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:

SECTION 1. Sections 475.0001(1), (2), (3), (4), and (10),

Government Code, are amended to read as follows:

(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;

(G)
[
(I)
] the World Cup Soccer Games; or

(H)
[
(J)
] the World Games.

(10) "Site selection organization" means a site

selection organization as defined by Chapters [
477,
] 478[
,
] and

480.

SECTION 2. Section 475.0051, Government Code, is amended to

read as follows:

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.

SECTION 3. Section 475.0054, Government Code, is amended to

read as follows:

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.

SECTION 4. Section 475.0103(a), Government Code, is amended

to read as follows:

(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;
and

(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
].

SECTION 5. Section 480.0051, Government Code, is amended to

read as follows:

Sec. 480.0051. EVENTS ELIGIBLE FOR FUNDING.
(a) Except as

provided by Subsection (b), an
[
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.

(b)

Notwithstanding Subsection (a)(1), a site selection

committee for an event to be held primarily in a county or

municipality with a population of less than 500,000 is not required

to consider a site outside of this state if the estimated attendance

at the event is a number equal to at least 25 percent of the

applicable county's or municipality's population.

SECTION 6. Section 480.00515, Government Code, is amended

to read as follows:

Sec. 480.00515. SINGLE YEAR CLASSIFICATION FOR ELIGIBILITY

PURPOSES FOR CERTAIN SPORTING EVENTS. For purposes of Sections

480.0051(a)(1)
[
480.0051(1)
] and (3), a sporting event is

considered to be held one time in each year if the event is held only

one time in any annual season for that sport.

SECTION 7. Section 480.0052(b), Government Code, is amended

to read as follows:

(b)
An
[
Subject to Subsection (c), an
] endorsing

municipality or endorsing county
with a population of more than

500,000
may during any 12-month period
receive
[
submit requests

for
] funding under this chapter for not more than 10 events to which

this section applies.

SECTION 8. Subchapter B, Chapter 480, Government Code, is

amended by adding Section 480.0053 to read as follows:

Sec.

480.0053.

TIME FOR REQUEST SUBMISSION. A municipality

or county must submit a request to the office not later than the

90th day before the date the event begins.

SECTION 9. Section 480.0103, Government Code, is amended to

read as follows:

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)
the 60th day
[
three months
] before the date [
of
]

the event
begins
.

SECTION 10. Section 480.0105(a), Government Code, is

amended to read as follows:

(a) Not later than
two
[
three
] months before the date [
of
]

an event
begins
, 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.

SECTION 11. Section 480.0153, Government Code, is amended

to read as follows:

Sec. 480.0153. [
OTHER
] LOCAL MONEY. (a)
An
[
In lieu of the

municipal and county tax revenues remitted or retained under

Section 480.0152, an
] endorsing municipality or endorsing county

shall
[
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
described by Subsection (a)
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.
]

SECTION 12. Section 480.0155, Government Code, is amended

by amending Subsection (a) and adding Subsection (a-1) to read as

follows:

(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
the multiplier provided by Subsection (a-1)

[
6.25
] multiplied by the amount of the municipal and county
local

money
[
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.

(a-1) For purposes of Subsection (a), the multiplier is:

(1)

12.5 for an event held primarily in a county or

municipality with a population of less than 50,000;

(2)

10.9375 for an event held primarily in a county or

municipality with a population of 50,000 or more but less than

250,000;

(3)

9.375 for an event held primarily in a county or

municipality with a population of 250,000 or more but less than

500,000; and

(4)

6.25 for an event held primarily in a county or

municipality with a population of 500,000 or more.

SECTION 13. Section 480.0202(c), Government Code, is

amended to read as follows:

(c) If the office makes a disbursement from the events trust

fund, the office shall satisfy the obligation proportionately from

the local
money
and state revenue in the fund.

SECTION 14. Section 480.0207, Government Code, is amended

to read as follows:

Sec. 480.0207. REMITTANCE OF REMAINING FUND MONEY.
(a)
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.

(b)

The office shall remit money required by Subsection (a)

not later than the 120th day after the date the office receives from

an endorsing entity all event information the office requires under

Section 480.0251.

SECTION 15. Sections 480.0251(b) and (c), Government Code,

are amended to read as follows:

(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
90th day
[
end of

the fourth month
] after the last day of the period covered by the

financial statement.

(c)
Not later than the 90th day after
[
After
] the
last day

[
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.

SECTION 16. Section 480.0253, Government Code, is amended

to read as follows:

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
local money
[
tax revenue
]

deposited under Section
480.0153
[
480.0152
], surcharges from user

fees charged in connection with the event, including parking or

ticket fees.

SECTION 17. (a) The following provisions of the Government

Code are repealed:

(1) Chapters 476, 477, and 479;

(2) Section 480.0052(c); and

(3) Section 480.0152.

(b) Section 26.041(j), Tax Code, is repealed.

SECTION 18. The following funds are abolished:

(1) the Pan American Games trust fund established

under Section 476.0101, Government Code, as that section existed

immediately before the effective date of this Act;

(2) the Olympic Games trust fund established under

Section 477.0101, Government Code, as that section existed

immediately before the effective date of this Act; and

(3) the motor sports racing trust fund established

under Section 479.0101, Government Code, as that section existed

immediately before the effective date of this Act.

SECTION 19. The applicable provisions of Chapters 475, 476,

477, 478, and 479, Government Code, as those chapters existed

immediately before the effective date of this Act, including any

fund established under those chapters, remain in effect as those

provisions apply in relation to the particular games or event

described by this section of this Act until all money from the fund

for the particular games or event has been disbursed and all

obligations under a games support contract or event support

contract for the particular games or event have been satisfied.

This section applies only if, before the effective date of this Act:

(1) pursuant to an application by a local organizing

committee, endorsing municipality, or endorsing county, a site

selection organization selects a site in this state for the

particular games or event to which Chapter 476, 477, or 479 applies;

and

(2) a local organizing committee, endorsing

municipality, or endorsing county enters into a games support

contract or event support contract for the particular games or

event to which Chapter 476, 477, or 479 applies.

SECTION 20. The repeal by this Act of Chapters 476, 477, and

479, Government Code, does not apply to an offense committed under

those chapters before the effective date of the repeal. An offense

committed before the effective date of the repeal is governed by the

law as it existed on the date the offense was committed, and the

former law is continued in effect for that purpose. For purposes of

this section, an offense was committed before the effective date of

the repeal if any element of the offense occurred before that date.

SECTION 21. This Act takes effect September 1, 2025.