Source: http://texastrustfunds.com/6.html
Timestamp: 2017-10-19 10:56:11
Document Index: 162356480

Matched Legal Cases: ['§ 1', '§ 1', '§ 398', '§ 398', '§ 398', '§ 398']

Special Events Trust Fund - TexasTrustFunds
Sporting Events Trust Fund
Sec. 398.001. DEFINITIONS. In this chapter:
(1) "Host community" means a municipality or county authorized by its governing body to host or assist in the presentation of a special event. The term includes a group of counties and municipalities that with the authorization of each governing body agree to jointly host or assist in the presentation of a special event.
(2) "Site selection organization" means an organization that, through a competitive selection process in which at least one site that is not located in this state was considered, chooses a site for an event conducted by the organization.
(3) "Special event" means an event held in a public place within the boundaries of a host community that is selected by a site selection organization as the site for the event.
Added by Acts 2005, 79th Leg., Ch. 117, § 1, eff. September 1, 2005.
Sec. 398.002. PURPOSE. The purpose of this chapter is to authorize a host community to use a portion of the sales tax revenue generated by a special event to assist in paying expenses incurred in connection with the event, including expenses for the purposes provided by Section 398.007(c). Added by Acts 2005, 79th Leg., Ch. 117, § 1, eff. September 1, 2005.
Sec. 398.003. LEGISLATIVE FINDINGS. The legislature finds that the conduct in this state of a special event will:
(1) provide substantial economic benefits to the community where the special event is held and to the entire state; and
(2) provide opportunities for the creation of jobs by local and state businesses that pay a living wage.
Sec. 398.004. ECONOMIC IMPACT STUDY.
(a) To be eligible to use a portion of the tax revenue generated by a special event to assist in paying expenses incurred in connection with the event under this chapter, a host community must conduct an economic impact study of the geographic area expected to experience economic benefits from the special event and submit the study to the comptroller for certification.
(b) The economic impact study must identify the geographic area expected to experience economic benefits from the special event and provide an estimate of:
(1) the general economic impact likely to occur in the area as a result of the event; and
(2) the anticipated amount of increase in the tax receipts to this state from the taxes imposed under Chapter 151, Tax Code, that:
(A) will occur in the special event area during the period that begins on the day before the first day of the event and ends at the earlier of:
(i) the end of the day following the last day of the event; or
(ii) the end of the 30th day after the day before the first day of the event; and
(B) is directly attributable to the preparation for and presentation of the event.
Sec. 398.005. COMPTROLLER CERTIFICATION OF ECONOMIC IMPACT STUDY.
(a) Not later than the 30th day after receiving the economic impact study from a host community, the comptroller shall:
(1) determine whether the study accurately estimates the amount of increase in the tax receipts to this state described by
Section 398.004(b)(2); and
(2) if the comptroller determines that the study accurately reflects the increase in those tax receipts, certify the study.
(b) If the comptroller determines that the economic impact study submitted by the host community does not accurately estimate the amount of increase in the tax receipts to this state described by Section 398.004(b)(2), the comptroller not later than the 30th day after receiving the study shall:
(1) submit a preliminary determination to the host community; and
(2) provide the host community with an opportunity to respond or submit a new or amended economic impact study to the comptroller.
§ 398.006. SPECIAL EVENT PLAN; REQUEST FOR MONEY; APPROVAL.
(a) Not less than six months before the first day of a special event, a host community requesting money under this chapter shall submit a special event plan to the Texas Economic Development and Tourism Office.
(b) A special event plan must include:
(1) a copy of an economic impact study for the special event that has been certified under Section 398.005;
(2) the history of the event in the special event area, a description of previous attempts by the host community to secure the event, information regarding attempts by other communities to recruit the event, and any other information that would justify approval of the amount of money requested for the event under this chapter;
(3) a detailed explanation justifying each expense as it relates to the purposes provided by Section 398.007(c) that each political subdivision within a host community anticipates will be incurred in connection with hosting the event and for which each political subdivision intends to use revenue from the special event trust fund established by the comptroller for the host community under this chapter;
(4) an estimate of the total amount of expenses each political subdivision within a host community anticipates will be incurred in hosting the event; and
(5) a request that an amount of money, not to exceed the lesser of one-half of the amount of the total expenses estimated under Subdivision (4) or one-half of the amount of the anticipated increase in tax receipts to this state described by Section 398.004(b)(2) according to the certified economic impact study, be deposited by the comptroller into a special event trust fund for the host community.
(c) A host community may submit with a special event plan a copy of an agreement between each political subdivision within the host community and the organizers of the special event, which may include provisions governing the expenses the host community or a political subdivision has agreed to pay. The agreement may not be for a term greater than five years.
(d) The Texas Economic Development and Tourism Office shall submit the host community's special event plan to the governor, the lieutenant governor, and the speaker of the house of representatives for approval. The plan is considered approved if the written approval of the governor, the ieutenant governor, and the speaker of the house of representatives is received by the office not later than the 90th day after the date the office received the plan from the host community.
(e) If the written approval of the governor, the lieutenant governor, and the speaker of the house of representatives is not received as provided by Subsection (d), the special event plan is considered disapproved.
§ 398.007. SPECIAL EVENT TRUST FUND.
(a) If a special event plan is approved under Section 398.006 and the host community is selected as the site of the special event, the comptroller shall deposit into a special event trust fund established by the comptroller for the host community the amount requested in the special event plan approved as provided by Section 398.006. The comptroller shall make the deposits from the state tax receipts as soon as practicable after those taxes are collected.
(b) The special event trust fund for a host community shall be established outside the treasury and held in trust by the comptroller for the dministration of this chapter. Money in the trust fund may be disbursed by the comptroller only as provided by this chapter. No appropriation is necessary for that purpose.
(c) A host community may use the money in the special event trust fund only for a public purpose related to the special event to pay the expenses of:
(1) providing security specifically for the event;
(2) providing public transportation and traffic management services for the event;
(3) providing or renting public facilities and the utilities associated with the use of the facilities during the event;
(4) preparing or maintaining a contract associated with conducting the event;
(5) providing maintenance and janitorial services in preparation for, during, or on completion of the event;
(6) developing or providing a special promotion, incentive, or award for or associated with the event; and
(7) any other activity or item authorized in the special event plan approved under Section 398.006.
(d) A host community may not use the money in the special event trust fund to construct a facility.
(e) Each political subdivision within a host community shall submit to the comptroller a written application for reimbursement for an approved event-related expense accompanied by a paid invoice or receipt. On receipt of the application in proper form, the comptroller shall make a isbursement from the political subdivision's special event trust fund to reimburse the political subdivision for an event-related expense authorized by Subsection (c) and incurred by the political subdivision.
(f) Not later than the 180th day following the last day of the special event, or on an earlier date if each political subdivision within a host community certifies to the comptroller that the political subdivision has paid all obligations payable from the special event trust fund, the comptroller shall transfer to the general revenue fund any money remaining in the trust fund.
§ 398.008. INFORMATION AND AUDIT.
(a) Each political subdivision within a host community shall provide the information required by the comptroller to enable the comptroller to carry out the comptroller's duties under this chapter.
(b) A political subdivision shall provide to the comptroller an audited financial statement in the form and at the time required by the comptroller with sufficient information to enable the comptroller to verify that all expenditures from a host community's special event trust fund were authorized by law.
§ 398.009. NO STATE GUARANTEE OF OBLIGATIONS. This chapter may not be construed as creating or requiring a state guarantee of obligations incurred by a host community under a contract or other agreement relating to hosting or conducting a special event in this state.