HBA-TYH H.B. 3135 76(R) BILL ANALYSIS
Office of House Bill AnalysisH.B. 3135
By: Reyna, Arthur
State Affairs
3/23/1999
Introduced
BACKGROUND AND PURPOSE
San Antonio is a finalist to host the 2007 Pan American Games. The
national and international organizations that govern the games are
conditioning their award on a governmental body's guarantee to assume
financial obligations associated with the games. H.B. 3135 creates a Pan
American Games support fund. The bill authorizes the state comptroller to
determine the amount of incremental sales tax to be attributed to the
games. This amount will be collected and deposited in the fund. The fund
is initiated only when a Texas city is awarded the games and becomes a host
city.
RULEMAKING AUTHORITY
It is the opinion of the Office of House Bill Analysis that rulemaking
authority is expressly delegated to the Texas Ethics Commission in SECTION
9 of this bill.
SECTION BY SECTION ANALYSIS
SECTION 1. DEFINITIONS. Defines "department," "endorsing municipality,"
"games," "games support contract," "participating municipality or county,"
"qualified applicant," "regional games support authority," "site selection
application costs," "site selection date," and "site selection
organization."
SECTION 2. PURPOSE. Sets forth the purpose of this Act.
SECTION 3. LEGISLATIVE FINDINGS. Provides legislative findings regarding
the effects if the 2007 Pan American Games were held in this state.
SECTION 4. PAN AMERICAN GAMES SUPPORT FUND. (a) Requires the
comptroller, if a site selection organization selects a site for the 2007
Pan American Games in this state, beginning on the first day of the first
state fiscal year that begins after the site selection date, to determine
for each calendar month, in accordance with procedures developed by the
comptroller, the incremental increase in the state sales and use tax
receipts under Chapter 151 (Limited Sales, Excise, And Use Tax), Tax Code,
within the market area of the qualified applicant whose site application
has been accepted by the applicable site selection organization that is
reasonably attributable to the successful application and preparation for
and the presentation of the applicable games and related events.
(b) Requires the comptroller to deposit the amount determined under
Subsection (a) into a special account of the department's treasury account
called the Pan American Games support fund. Requires the comptroller to
discontinue deposit of the amount determined under Subsection (a) at the
end of the third calendar month following the month in which the closing
event of the games occurs.
(c) Requires the qualified applicant to propose the geographic boundaries
of the market area to be used under Subsection (a). Requires the Texas
Department of Economic Development (department) to approve the proposed
market area if it includes areas that are likely to be affected by the
conduct of the games the applicant is seeking, including any areas that are
likely to provide venues, accommodations, and services in connection with
the games, based on the proposal submitted by the applicant under Section 5
of this Act.
(d) Authorizes the department to use the funds in the Pan American Games
support fund to fulfill the state's obligations to a site selection
organization under a games support contract or any other agreement
providing assurances from the department to a site selection organization.
SECTION 5. ASSISTANCE OF DEPARTMENT AND OTHER STATE AGENCIES. (a)
Requires the department to review requests from a qualified applicant that
the department enter into a games support contract with the applicant.
(b) Provides that a request made under Subsection (a) of this section must
be accompanied by the enumerated items.
(c) Requires the department to approve or deny a request made under
Subsection (a) within 30 days of the request.
(d) Requires the department to approve a request and enter into a games
support contract with a qualified applicant if the department determines
that the specified conditions were met.
(e) Authorizes the department to agree in a games support contract to:
(1) pay from funds appropriated for that purpose, during the period before
the applicable site selection date, a specified portion of the site
selection application costs; and
(2) provide to the applicable site selection organization written
assurances on behalf of the state and the qualified applicant that, if the
applicant's proposal is accepted and the site identified in the proposal is
selected, and if necessary in addition to funds provided by the qualified
applicant, sufficient funds will be provided by the state from money on
deposit in the Pan American Games support fund to pay the costs of
presenting the games in accordance with the qualified applicant's proposal.
(f) Requires each games support contract to require a qualified applicant
to repay the state any funds expended by the department under this Act from
any surplus of the qualified applicant's funds remaining after the
presentation of the games and after the payment of the expenses and
obligations incurred by a qualified applicant. Provides that if the games
are not awarded to a qualified applicant, the qualified applicant is not
required to repay any state money expended by the department under this Act
before the site selection date.
(g) Authorizes a games support contract to contain any additional
provisions the department requires in order to carry out the purposes of
this Act.
(h) Authorizes the Texas Department of Transportation, the Texas
Department of Public Safety, and the Texas Department of Housing and
Community Affairs to assist a qualified applicant in developing
applications and planning for the games and enter into contracts,
agreements, or assurances related to the presentation of the games.
SECTION 6. REGIONAL GAMES SUPPORT AUTHORITY. (a) Authorizes a regional
games support authority to be created by a resolution concurrently adopted
by an endorsing municipality and one or more counties. Provides that a
regional games support authority is a political subdivision and a
governmental instrumentality of the state. Provides that the territory of a
regional games support authority is the same as the territory of the county
or counties that participate in the creation of the authority. Provides
that a resolution creating a regional games support authority must provide
for the administration, operation, and governance of the authority.
Authorizes a participating municipality or county to be granted
representation on the board of directors of the authority in the resolution
creating the authority.
SECTION 7. POWERS OF PARTICIPATING MUNICIPALITY OR COUNTY AND REGIONAL
GAMES SUPPORT AUTHORITY. (a) Provides that a participating municipality
or county and a regional games support authority have all powers necessary
and appropriate to construct, improve, expand, and acquire any and all
sports venues that are found to be useful in the presentation of the games,
together with any and all public infrastructure, housing, and other
facilities that are incident to or useful in connection with the
presentation of the games, including the power to enter into a contract or
agreement with a qualified applicant.
(b) Authorizes a participating municipality or county, regional games
support authority, and any other political subdivision or local
governmental entity to enter into an interlocal contract with another
public entity or into any other agreement with a private or public party,
including a qualified applicant, regarding the use, financing, and
improvement of sports venues, housing, and other public infrastructure that
may be useful in the presentation of the games, including the method of
allocating and sharing revenues and income resulting from the presentation
of the games or associated events.
(c) Authorizes a participating municipality or county or regional games
support authority, to the extent authorized by a qualified applicant, to
design, obtain, and register sale and use trademarks, copyrights, and other
intellectual property rights relating to the games and may sell, market,
advertise, or license the intellectual property rights, including the
direct manufacture and sale of products by a participating municipality or
county or a regional games support authority.
(d) Authorizes a participating municipality or county or a regional games
support authority to enter into a contract, sue and be sued, and condemn
property and land in connection with the games.
SECTION 8. BONDS. Authorizes a participating municipality or county to
issue bonds, notes, and other securities determined appropriate to carry
out specified actions. Authorizes the issuer of obligations authorized to
pledge to the payment of those obligations revenues to be received by the
issuer under an agreement with a qualified applicant and revenues, taxes,
and other sources of income authorized by any other law, subject to any
election requirements imposed by that law. Authorizes a bond, note, or
other security issued to be issued in the same manner as a participating
municipality or county may issue any other type of bond, note, or other
security. Authorizes an obligation issued to be conditioned on payment of
the first proceeds to an issuer under an agreement with a qualified
applicant. Requires an obligation issued to be paid before any other
obligation incurred by the issuer of that obligation under this Act.
SECTION 9. APPLICATION OF ETHICS RULES. (a) Requires each endorsing
municipality, participating municipality or county, qualified applicant,
and regional games support authority to adopt a set of ethical regulations
for the operation of that endorsing municipality, participating
municipality or county, qualified applicant, or regional games support
authority and its officers and employees in connection with the bid of an
endorsing municipality for selection as the site of the 2007 Pan American
Games, the conduct of the 2007 Pan American Games, or any other action
taken or activity conducted under this Act.
(b) Provides that regulations adopted under this section must be at least
as stringent as the more stringent of the ethics regulations of the United
States Olympic Committee or the Pan American Sports Organization, or the
ethics laws of this state relating to the spending restriction on lobbyists
and prohibited activities of state employees, including Chapters 305
(Registration of Lobbyists) and 572 (Personal Financial Disclosure,
Standards of Conduct, and Conflict of Interest), Government Code.
(c) Requires each endorsing municipality, participating municipality or
county, qualified applicant, and regional games support authority to report
to the Texas Ethics Commission quarterly on the compliance of that
endorsing municipality, participating municipality or county, qualified
applicant, or regional games support authority and its officers and
employees with the ethical regulations adopted under Subsection (a).
Requires the Texas Ethics Commission to adopt rules relating to the manner
of reporting.
(d) Provides that a person commits a Class A misdemeanor if the person
fails to comply with any ethical regulation adopted under Subsection (a) or
fails to comply with any Texas Ethics Commission rule adopted under this
section.
SECTION 10. EMERGENCY. Emergency clause.
Effective date: upon passage.