LEGISLATIVE BUDGET BOARD
                              Austin, Texas
                                     
                    FISCAL NOTE, 76th Regular Session
  
                              April 27, 1999
  
  
          TO:  Honorable Steven Wolens, Chair, House Committee on State
               Affairs
  
        FROM:  John Keel, Director, Legislative Budget Board
  
       IN RE:  SB456 by Madla (relating to facilitating and supporting
               efforts of certain municipalities to promote economic
               development by hosting the Pan American Games and the
               Olympic Games), As Engrossed
  
**************************************************************************
*  Estimated Two-year Net Impact to General Revenue Related Fundsfor     *
*  SB456, As Engrossed:  impact of $0 through the biennium ending        *
*  August 31, 2001.                                                      *
**************************************************************************
  
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 either the
2007 Pan American Games or the XXX Olympiad in 2012.  If a Texas city
were selected to host one of the two 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.  This responsibility
would begin on the first day of the first state fiscal year that began
after the selection date.

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 (department's) treasury account, to be called the
GR-Account Olympics and Pan American Games Support.  The deposits would
cease three months following the closing event of the games.  The
department 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 department to review requests from
qualified applicants for support of local efforts to host the Pan
American Games and/or Olympic 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 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
  
This estimate assumes that administrative duties required of the
Department of Economic Development 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 for the Pan American Games. This
estimate assumes that San Antonio would be chosen to host the Pan
American Games in 2007.  Indianapolis hosted the games in 1987 and
experienced an estimated four-tenths of 1 percent increase in local
sales tax revenue; a similar increase in San Antonio would generate an
additional $4.1 million.
  
  
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:   405   Department of Public Safety, 601   Department
                   of Transportation, 480   Department of Economic
                   Development, 304   Comptroller of Public Accounts
LBB Staff:         JK, BB, TH, TL, RT, DP, HL