LEGISLATIVE BUDGET BOARD
                              Austin, Texas
                                     
                    FISCAL NOTE, 76th Regular Session
  
                              March 26, 1999
  
  
          TO:  Honorable Steven Wolens, Chair, House Committee on State
               Affairs
  
        FROM:  John Keel, Director, Legislative Budget Board
  
       IN RE:  HB3135 by Reyna, Arthur (relating to state funding and
               agreements supporting the bids of certain municipalities
               or counties to host the 2007 Pan American Games;
               providing a penalty), As Introduced
  
**************************************************************************
*  Estimated Two-Year Net Impact to General Revenue Related Fundsfor     *
*  HB3135, As Introduced:  $0 through the biennium ending August 31,     *
*  2001.                                                                 *
*                                                                        *
*  The bill would make no appropriation but could provide the legal      *
*  basis for an appropriation of funds to implement the provisions of    *
*  the bill.                                                             *
**************************************************************************
  
General Revenue-Related Funds, Five-Year Net Impact:
  
          ****************************************************
          *  Fiscal Year  Probable Net Positive/(Negative)   *
          *               Impact to General Revenue Related  *
          *                             Funds                *
          *       2000                                   $0  *
          *       2001                                    0  *
          *       2002                                    0  *
          *       2003                                    0  *
          *       2004                                    0  *
          ****************************************************
  
All Funds, Five-Year Impact:
  
***************************************************************************
*Fiscal    Probable Savings/(Cost) from    Probable Revenue Gain/(Loss)   *
* Year          New - GR Dedicated           from New - GR Dedicated      *
*  2000                                $0                              $0 *
*  2001                                 0                               0 *
*  2002                       (4,100,000)                       4,100,000 *
*  2003                       (4,100,000)                       4,100,000 *
*  2004                       (4,100,000)                       4,100,000 *
***************************************************************************
  
Fiscal Analysis
  
The bill would provide a method of financing to certain local entities to
assist in the designation, preparation, and production of the 2007 Pan
American Games.  If a Texas city were to be selected to host the games,
the Comptroller would be required to determine the incremental increase
in the state sales and use tax receipts reasonably attributable to all
phases of the games within that city's market area for each calendar
month.

The Comptroller would be required to deposit the estimated amount of
increased revenue into a new, special account in the Texas Department of
Economic Development's (TDED) treasury account, to be called the
GR-Account Pan American Games Support.  Deposits would cease three months
following the closing event of the games.  TDED could use the account to
provide assurances to a site selection organization, or to assist with
costs of presenting the games.   

The bill would also require the TDED to review requests from qualified
applicants for support of local efforts to host the Pan American Games
within 30 days, based on the reasonableness of the plan and the
applicant's ability to reimburse the department for its costs.

The bill would also allow the Department of Transportation, Department of
Public Safety, and Department of Housing and Community Affairs to assist
qualified applicants in developing applications for the games and/or
hosting the games.
  
  
Methodology
  
Administrative duties required of the TDED could be completed with
current appropriations and within existing agency staffing levels.

According to the United States Olympic Committee, San Antonio is the only
city in Texas under consideration to host the Pan American Games in
2007; this estimate assumes that San Antonio would be chosen as the host
city.  Should San Antonio not be chosen to host the games, there would be
no fiscal impact.

Indianapolis hosted the games in 1987 and experienced an increase in
local sales tax revenue attributable to the games of approximately four
tenths of one percent (.004).  A similar increase in San Antonio would
generate an additional $4.1 million in revenue deposited to the
dedicated account; this estimate assumes that all funds deposited to the
account would be spent.
  
  
Local Government Impact
  
Local governments creating a regional games authority could incur
administrative and operational expenses. The cost to each local
government would depend on the terms of the resolution creating the
authority.
  
  
Source Agencies:   
LBB Staff:         JK, BB, DP