LEGISLATIVE BUDGET BOARD
Austin, Texas
FISCAL NOTE, 76th Regular Session
Revision 1
March 8, 1999
TO: Honorable Troy Fraser, Chair, Senate Committee on
Business & Technology Growth
FROM: John Keel, Director, Legislative Budget Board
IN RE: SB 456 by Madla (Relating to facilitating and supporting
cooperative efforts of municipalities and counties to
promote economic development by hosting the Pan American
Games and the Olympic Games), As Introduced
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* The bill would make no appropriation but could provide the legal *
* basis for an appropriation of funds to implement the provisions of *
* the bill. *
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All Funds, Five-Year Impact:
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*Fiscal Probable Savings/(Cost) from Probable Revenue Gain/(Loss) *
* Year New - GR Dedicated from New - GR Dedicated *
* 2000 $0 $0 *
* 2001 0 0 *
* 2002 0 0 *
* 2003 0 0 *
* 2004 0 0 *
***************************************************************************
***************************************************************************
*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 was
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 of Economic Development 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 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
Any administrative duties required of the Department of Economic
Development could be completed with current appropriations and within
existing agency staffing levels.
Under scenario one, no Texas city would be selected to host either the
Pan American or Olympic Games and no significant fiscal implication to
the state is anticipated.
According to the United States Olympic Committee, San Antonio is the only
city in Texas under consideration for the Pan American Games. Under
scenario two, 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
due to the games. 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:
LBB Staff: JK, TH, TL, BB, RT, DP, HL