CHAPTER 398. MEASURES TO SUPPORT MUNICIPAL AND COUNTY SPECIAL EVENTS
LOCAL GOVERNMENT CODE
TITLE 12. PLANNING AND DEVELOPMENT
SUBTITLE C. PLANNING AND DEVELOPMENT PROVISIONS APPLYING TO MORE
THAN ONE TYPE OF LOCAL GOVERNMENT
CHAPTER 398. MEASURES TO SUPPORT MUNICIPAL AND COUNTY SPECIAL
EVENTS
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, Sec. 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, Sec. 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.
Added by Acts 2005, 79th Leg., Ch.
117, Sec. 1, eff. September 1, 2005.
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.
Added by Acts 2005, 79th Leg., Ch.
117, Sec. 1, eff. September 1, 2005.
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.
Added by Acts 2005, 79th Leg., Ch.
117, Sec. 1, eff. September 1, 2005.
Sec. 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 lieutenant 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.
Added by Acts 2005, 79th Leg., Ch.
117, Sec. 1, eff. September 1, 2005.
Sec. 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 administration 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 disbursement 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.
Added by Acts 2005, 79th Leg., Ch.
117, Sec. 1, eff. September 1, 2005.
Sec. 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.
Added by Acts 2005, 79th Leg., Ch.
117, Sec. 1, eff. September 1, 2005.
Sec. 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.
Added by Acts 2005, 79th Leg., Ch.
117, Sec. 1, eff. September 1, 2005.