HBA-ALS H.B. 3526 76(R) BILL ANALYSIS Office of House Bill AnalysisH.B. 3526 By: Coleman State Affairs 4/27/1999 Introduced BACKGROUND AND PURPOSE Currently, the cities of Houston and Dallas are bidding on the 2012 Olympic Games. The site selection committees require the bidding cities to submit sufficient evidence that the state in which the bidder is located supports the bid and is willing to grant good faith assurances that the games will be produced in accordance with the bid if the games are awarded to that city. H.B. 3526 allows the state to provide financial support to persons and municipalities bidding on the Olympic Games and to provide assurances to sponsors that the Texas Department of Economic Development commitments will be honored. This bill also provides for the creation of a games support fund to be administered by the comptroller derived from certain sales and use tax revenues. RULEMAKING AUTHORITY It is the opinion of the Office of House Bill Analysis that this bill does not expressly delegate any additional rulemaking authority to a state officer, department, agency, or institution. SECTION BY SECTION ANALYSIS SECTION 1. DEFINITIONS. Defines "department," "endorsing municipality," "games," "games support contract," "qualified applicant," "site selection date," and "site selection organization." SECTION 2. PURPOSE. Provides that the purpose of this Act is, if a location in the state is designated as the site for the Games of the XXX Olympiad, solely to provide financial support to the municipalities and other persons and to provide assurances to the site selection organization sponsoring the games that commitments made by the state through the department in a games support contract will be fulfilled. SECTION 3. LEGISLATIVE FINDINGS. Sets forth legislative findings. SECTION 4. OLYMPIC GAMES SUPPORT FUND. (a) Requires the comptroller, if a site selection organization selects a site for the Games of the XXX Olympiad in this state pursuant to an application by a qualified applicant, beginning on the first day of the first state fiscal year that begins after the site selection date, to determine for each quarter, 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) of this section into a special account of the department's treasury account called the Olympic Games support fund. Requires the comptroller to discontinue deposit of the amount determined under Subsection (a) of this section at the end of the third calendar month following the month in which the closing event of the games occurs. (c) Requires a qualified applicant to propose the geographic boundaries of the market area to be used under Subsection (a) of this section. Requires the 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 Olympics 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 a general description and summary of the games for which a site selection is sought by the qualified applicant and a preliminary and general description of the proposal the applicant intends to submit or has submitted to a site selection organization. (c) Requires the department to approve or deny a request made under Subsection (a) of this section not later than the 30th day after the date the request is submitted. (d) Requires the department to approve a request and to enter into a games support contract with a qualified applicant if the department determines that the applicant's proposal is reasonable and, if completed and submitted, would substantially meet the criteria for proposals established by the applicable site selection organization. (e) Authorizes the department to agree in a games support contract to 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, funds will be provided by the state but limited to the money on deposit in the Olympic Games fund to assure the site selection organization that the state will support the proposal if necessary. (f) Authorizes a games support contract to contain any additional provisions the department requires in order to carry out the purposes of this Act. SECTION 6. GOVERNMENTAL FUNCTIONS. Provides that an action taken or an activity conducted under this Act by a qualified applicant, the department or other state agency, a participating municipality or county, or a regional games support authority is declared to be an essential governmental function and is not a proprietary function for the purposes of the laws of this state. SECTION 7.Emergency clause. Effective date: upon passage.