LEGISLATIVE BUDGET BOARD

Austin, Texas

FISCAL NOTE, 82ND LEGISLATIVE REGULAR SESSION

March 31, 2011

TO:	Honorable John Davis, Chair, House Committee on Economic & Small Business Development
FROM:	John S O'Brien, Director, Legislative Budget Board
IN RE:	HB735 by Patrick, Diane (Relating to events to receive funding through a major events trust fund.), Committee Report 1st House, Substituted

The fiscal impact would depend upon the number and location of events covered under the bill. However, no significant fiscal implication to the State is anticipated.

The bill would amend Article 5190.14, Vernon's Texas Civil Statutes, by adding the Academy of Country Music Awards, the National Cutting Horse Association Triple Crown, and a national political convention of the Republican National Committee or the Democratic National Committee to the list of events eligible for the Major Events Trust Fund.
 
The bill would require the Comptroller to complete a study in the market area of the event on the measurable economic impact directly attributable to the preparation for and presentation of the event and related activities not later than 18 months after the last day of a Major Events Trust Fund event.  The Comptroller would be required to post the results of the study on the agency's Internet website.

Eligibility for participation in the Major Events Trust Fund is limited to those events listed in the
statute. If the site selection organization for one of these events were to choose a Texas site to host the event, the host community would be eligible to request creation of a Major Events Trust Fund
account. Upon approval by the Comptroller, the Comptroller would be authorized to transfer to the
trust fund the estimated state revenue gain from hosting the event. The program requires local
matching funds to be deposited in the trust fund to draw down the state share. The Comptroller would
be authorized to reimburse the host city and/or county governments for eligible expenses related to the event. Trust fund reimbursements would be made directly from the additional revenue generated by
the event.
 
The bill would take effect immediately upon enactment, assuming that it received the requisite two-thirds majority votes in both houses of the Legislature. Otherwise, it would take effect September 1, 2011.

Local Government Impact

The fiscal impact to a local entity would vary depending on a local entity being selected by a site
selection organization to host a special event.

Source Agencies:

304 Comptroller of Public Accounts

LBB Staff:

JOB, AG, SD