LEGISLATIVE BUDGET BOARD
Austin, Texas
FISCAL NOTE, 77th Regular Session
April 5, 2001
TO: Honorable David Sibley, Chair, Senate Committee on
Business & Commerce
FROM: John Keel, Director, Legislative Budget Board
IN RE: SB1096 by Cain (Relating to economic incentives to
attract horse racing events of national significance.),
Committee Report 1st House, Substituted
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* Estimated Two-year Net Impact to General Revenue Related Funds for *
* SB1096, Committee Report 1st House, Substituted: positive impact *
* of $0 through the biennium ending August 31, 2003. *
* *
* 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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General Revenue-Related Funds, Five-Year Impact:
****************************************************
* Fiscal Year Probable Net Positive/(Negative) *
* Impact to General Revenue Related *
* Funds *
* 2002 $0 *
* 2003 0 *
* 2004 (2,000,000) *
* 2005 0 *
* 2006 0 *
****************************************************
All Funds, Five-Year Impact:
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*Fiscal Probable Revenue Probable Revenue Probable *
* Year Gain/(Loss) from Gain/(Loss) from New Savings/(Cost) from *
* General Revenue Fund General Revenue New General Revenue *
* 0001 Dedicated Dedicated *
* 2002 $0 $0 $0 *
* 2003 0 0 0 *
* 2004 (2,000,000) 2,000,000 (2,000,000) *
* 2005 0 0 0 *
* 2006 0 0 0 *
**************************************************************************
Fiscal Analysis
The bill would establish the Breeders' Cup Developmental Account, a new
General Revenue-Dedicated Account, for the payment or reimbursement of a
racing association's costs for the Breeders' Cup. The Texas Racing
Commission would have the authority to make disbursements from the new
account.
Methodology
The first year that a racing association in Texas could host the
Breeders' Cup is 2004. The venues for Breeders' Cup races through 2003
have already been selected. If a Texas race track were chosen for the
Breeders' cup race in 2004, a Texas race track could not host the
Breeders' Cup for approximately another five years because the race
currently rotates among five race tracks nationally.
It is estimated that up to a $2,000,000 loss to the General Revenue Fund
would occur in fiscal year 2004, or any fiscal year thereafter in which
a Texas race track were chosen to host the Breeders' Cup, due to the
diversion of pari-mutuel taxes from the General Revenue Fund to the new
General Revenue-Dedicated Account.
Local Government Impact
The Texas Association of Counties and the Texas Municipal League provided
information regarding the fiscal impact to units of local government. No
significant fiscal implication to units of local government is
anticipated.
Source Agencies: 304 Comptroller of Public Accounts, 476 Texas
Racing Commission, 480 Department of Economic
Development
LBB Staff: JK, JO, HL