Published in the March 7 Texas Register are the proposed amendments and new rules regarding the Major Events Trust Fund from the Comptroller of Public Accounts. Specifically amendments would be made concerning Definitions; §2.101, concerning Eligibility; §2.102, concerning Request to Establish a Trust Fund; §2.103, concerning Reporting; and §2.104, concerning Reimbursement. The comptroller also proposes new §2.106, concerning Event Support Contracts, and §2.107, concerning Allowed and Disallowed Costs.
Amendments to §2.100 will among other things, modify the definitions of the terms "event support contract," "event," "highly competitive selection process," "requestor," and "site selection organization" and add new definitions for the terms "cost," "direct cost," "local share," "privately owned property," "proof of payment," "publicly owned property," "significantly lower," and "travel."
Amendments to §2.101 provide that an event scheduled to be held one time each year or for a period of years under an event support contract may be eligible for participation in the Major Events Trust fund if other criteria are met. New subsection (a) adds criteria that the site selection organization select a site in Texas as the sole site of the event or as the sole site of the event in a region composed of this state and an adjoining state. Subsection (a)(4) adds as a criterion a determination by the comptroller that the incremental increase in tax receipts must equal or exceed $1 million for the event. The proposed amendments create subsection (b) to provide that a requesting municipality and/or county cannot simultaneously apply for the Major Events Trust Fund program and the Events Trust Fund program for the same event.
Amendments to §2.102(f) provide that a request for participation, including a request for determination of the amount of incremental increase in tax receipts must be submitted not earlier than one year and not later than 45 days before the date the event begins.
Amendments to §2.103(a) provide that after the conclusion of an event, a requestor must provide an attendance certification within 14 days after the last day of the approved event which includes the total number of attendees and the number of non-Texas resident attendees, along with the source for such numbers. Under subsection (a)(2) a requestor must provide within 90 days, additional information including financial information that the comptroller considers necessary to evaluate the success of the trust fund program. The comptroller may also request information the comptroller needs in order to comply with the reporting requirements in Article 5190.14, Section 5A(w).
Amendments to §2.104 change the section title from Reimbursement to Disbursements for Event Costs. The proposed amendment to subsection (a) clarifies that disbursements from the trust fund shall be used to finance direct costs of the event, including the improvement of facilities to the extent authorized by law that are directly attributable to fulfilling obligations of the event support contract; paying the principal of and interest on notes issued by an endorsing municipality or endorsing county under Texas Civil Statutes, Article 5190.14, Section 5A(g); and conducting an event in this state in accordance with the event support contract. The proposed amendment to subsection (b) substitutes the term "requestor" for "site selection organization" and clarifies that disbursements from the trust fund may not be used to make payments to a requestor or any other entity that are not directly attributable to allowable costs. Under this subsection, disbursements are subject to verification or audit prior to or after payment by the comptroller to ensure compliance with the subsection. The proposed amendment to subsection (c) provides that no later than the date of the event, the requestor shall submit to the comptroller a complete and fully executed copy of the event support contract, any contract amendments and incorporated documentation; and documentation affirming the participation of the local organizing committee, if one exists. Subsection (e) is amended to generally change references to "reimbursement" to "disbursements" and to change references to "expenses" to "costs." Subsection (e)(4) is amended to provide that a disbursement request letter must contain copies or specifications for any publications, printed materials, signage or advertising cost included in the disbursement request. Subsection (e)(5) and (6) also require that a disbursement request letter contain a detailed list presented in the form prescribed by the comptroller of costs included in the request, copies of the requestor's invoices, receipts, contracts, proof of payment if payment has been made by the requestor, and other documents supporting the costs included in the disbursement request. Subsection (e)(7) adds a requirement that if a requestor seeks disbursement for expenses incurred by another entity, a disbursement request letter must contain copies of the invoice(s) sent by the entity to the requestor for the expenses and proof of the requestor's payment if the payment has been made. Subsection (e)(8) is amended to add a requirement that for a request submitted by a local organizing committee, a disbursement request letter must contain documentation showing the prior approval of the disbursement request by each contributing endorsing municipality and/or endorsing county. Subsection (e)(9) is amended to require that a disbursement request letter contain a statement indicating whether any information provided to the comptroller is confidential and exempt from public disclosure. Subsection (e)(10) adds a requirement that a disbursement request letter contain a copy of any financial report the requestor is required to submit to the site selection organization. Subsection (e)(11) adds a requirement that a disbursement request letter contain the name and contact information of the requestor's officer or employee and any external designee or representative who may be contacted regarding the disbursement request. Subsection (f) is amended to provide that funds in the trust fund must be fully expended within one year of the date the first disbursement request is received by the comptroller unless an extension is granted by the comptroller. After this period, the comptroller shall return the local share of any unexpended balances in the trust fund to the respective endorsing municipality and/or endorsing county. Prior to the end of this period, the comptroller may return any local share remaining unexpended in the trust fund upon request by an endorsing municipality and/or endorsing county, upon determining that the event is ineligible under this subchapter, or after the payment of all costs is completed. Subsection (g) is amended to add language that the comptroller may request justification regarding any costs submitted for reimbursement. New subsection (h) describes the circumstances in which the comptroller will not consider a disbursement request, including but not limited to, situations where reimbursement for costs belonging to another entity are requested, if the request is submitted more than one year after the end date of the event, if the request is not supported by an event support contract, or does not include all event costs being sought by the requestor. New subsection (i) provides that each disbursement request must be accompanied by a certification completed by each endorsing municipality or endorsing county. The certification must be in the form prescribed in the subsection and be signed by an authorized official. An endorsing municipality or county may not delegate to another person its obligation to sign the certification. New subsection (j) provides that a disbursement made from the trust fund by the comptroller in satisfaction of a requestor's obligation shall be satisfied proportionately from the state and local share in the trust fund in the proportion of 6.25:1 of state funds to local share notwithstanding any agreements to the contrary made by a requestor. New subsection (k) provides that the comptroller shall not make any disbursements for event costs until all reporting requirements under §2.103(a) are satisfied. New subsection (l) provides that if the actual total non-Texas resident attendance at the event is significantly lower than the pre-event estimate, as determined by the comptroller, the fund shall be reduced according to the attached chart. New subsection (m) provides that §2.104 applies to a disbursement request that is submitted to the comptroller on or after the date upon which this rule becomes effective. However, subsection (m) does not apply to §2.104(l) relating to a reduction in funds available for disbursement based on lower attendance.
New §2.106 provides that in considering whether to make a disbursement from the trust fund, the comptroller may not consider a contingency clause in an event support contract as relieving a requestor's obligation to pay a cost under the contract. Subsection (b) also provides that the event support contract must specify which goods, services, fixtures, equipment, facility or other property improvements or temporary maintenance are required to conduct the event in order for the comptroller to make a disbursement for a cost, unless the cost falls under subsection (c). Additionally, this new section provides that the comptroller will not consider event support contract terms which are overly broad in nature, and gives examples. Subsection (c) provides that the comptroller may consider making a disbursement for a requirement that is implied in each event support contract related to the health and safety of citizens or certain animals, and gives examples of such expenses. Subsection (d) provides that the comptroller may require a requestor to explain or provide proof of any cost. Subsection (e) provides that the comptroller will make a disbursement only for direct costs related to soliciting the event, executing the event support contract, planning for or conducting the event, or determining the event's attendance and economic impact.
New §2.107(a) adds language listing costs which are supportive of the trust fund program goals and are generally allowable, including but not limited to construction costs, hosting fees, performance bonds and improvements to publicly owned property, and advertising the event. Subsection (b) adds language which provides that disbursements for certain costs are prohibited regardless of their inclusion in an event support contract, including but not limited to gifts, grants, alcoholic beverages, prizes, personal items or expenses, entertainment, certain types of awards, and travel expenses unrelated to professional service contracts. Subsection (c) provides that the comptroller may deny a disbursement for any event, cost, expense or obligation the comptroller deems unnecessary, fiscally irresponsible, or not supportive of program objectives. Subsection (d) adds language to provide that subsections (a) and (b) apply to a disbursement request for an event whose event support contract was fully executed on or after the date upon which this rule becomes effective.
Comments on the proposals may be submitted to Robert Wood, Director, Local Government Assistance and Economic Development Division, at robert.wood@cpa.state.tx.us or at P.O. Box 13528 Austin, Texas 78711.
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