| TO: | Honorable John Davis, Chair, House Committee on Economic & Small Business Development |
| FROM: | John S O'Brien, Director, Legislative Budget Board |
| IN RE: | HB466 by Burnam (Relating to the authority to enter into certain agreements relating to the Texas Enterprise Fund, the Texas emerging technology fund, or certain trust funds for sporting and non-sporting events and the money in those funds.), As Introduced |
The bill would amend statute and provides that the Governor may not enter into an agreement to award a grant from the Texas Enterprise Fund or the Texas Emerging Technology Fund after September 1, 2011 and before September 1, 2015. In addition, on the effective date of this act, any unspent and unencumbered funds within those accounts would be available in the General Revenue Fund to be used in accordance with legislative appropriation. In addition, any royalties, revenue, or other financial benefits realized from a project undertaken with funding from the Texas Emerging Technology Fund shall be deposited into the General Revenue Fund prior to August 31, 2015.
The bill would also prohibit the Governor’s office, an endorsing county, an endorsing municipality, or a local organizing committee from entering into a games support contract or events support contract after August 31, 2011 and before September 1, 2015, that obligates the state, county, or municipality to support an event with revenue from a fund established under that chapter, which includes the Pan American Games Trust Fund, the Olympic Games Trust Fund, the Major Events Trust Fund, the Motor Sports Racing Trust Fund, and the Events Trust Fund. In addition, no revenue may be deposited into to those funds after August 31, 2011 and before September 1, 2015, unless the revenue is related to a game or events support contract entered into prior to the effective date of this act.
Furthermore, the bill would also eliminate transfers to the Texas Enterprise Fund from the Employment and Training Investment Assessment Fund and redirect those funds to other programs.
The Governor may encumber funds within the Texas Enterprise Fund and the Emerging Technology Fund before the end of the fiscal year. Therefore for purposes of this analysis, the amount of funds available for transfer into the General Revenue Fund cannot be determined. In addition, provisions of the bill prohibiting games support contracts or events support contracts would result in the elimination of state and local contributions to these trust funds each year. If participation in these programs were prohibited, these tax revenues would not be realized. According to the CPA, no significant fiscal impact would be realized by eliminating these programs.
Employment and Training Investment Assessment Funds going to the Texas Emerging Technology Fund, under current law, would be redirect to the Skills Development Fund.
| Source Agencies: | 300 Trusteed Programs Within the Office of the Governor, 301 Office of the Governor, 304 Comptroller of Public Accounts
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| LBB Staff: | JOB, AG, MS, JM
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