BILL ANALYSIS

H.B. 1860

By: Hunter

Economic & Small Business Development

Committee Report (Unamended)

BACKGROUND AND PURPOSE

Although events such as the Super Bowl, which can generate hundreds of millions of dollars in economic development activity, do not occur often in Texas, the huge crowds that such an event attracts put tremendous stress on the budgets of the hosting city, which must provide adequately for the safety of attendees. Interested parties stress the need for increased funding for these host cities to provide necessary security at these events. H.B. 1860 seeks to provide for this funding.

CRIMINAL JUSTICE IMPACT

It is the committee's opinion that this bill does not expressly create a criminal offense, increase the punishment for an existing criminal offense or category of offenses, or change the eligibility of a person for community supervision, parole, or mandatory supervision.

RULEMAKING AUTHORITY

It is the committee's opinion that rulemaking authority is expressly granted to the Texas Economic Development and Tourism Office in SECTION 1 of this bill.

ANALYSIS

H.B. 1860 amends Vernon's Texas Civil Statutes to create the major events security grant program. The bill authorizes the Texas Economic Development and Tourism Office (TEDTO) to enter into and enforce contracts with a county or a municipality and execute and deliver other instruments necessary to make and administer grants awarded under the program; impose and collect reasonable fees and charges in connection with grants made under the program and provide reasonable penalties for delinquent payment of fees or charges; and adopt rules necessary to implement the program. The bill restricts TEDTO to only using money expressly appropriated by the legislature for the grant program and only for a grant that serves a state purpose or a public purpose relating to the development and diversification of the state economy, the elimination of state unemployment or underemployment, or the development or expansion of state commerce.

H.B. 1860 authorizes a county or municipality that contains a site at which an eligible event is or may be hosted to apply for and receive a grant under the program. The bill restricts use by a grant recipient of money provided through such a grant to the provision of security at the event for which the grant is awarded. The bill requires an event for which a county or municipality is applying, in order to be eligible to receive a grant, to be held annually; to have had a total economic impact on the local economy where the event was previously held of more than $300 million in the immediately preceding year; and to serve a state purpose or a public purpose of the development and diversification of the state economy, the elimination of state unemployment or underemployment, or the development or expansion of state commerce.

H.B. 1860 requires TEDTO by rule to establish an application process, award process, and eligibility criteria for receiving a grant under the program. The bill requires TEDTO to establish criteria for prioritizing grant applicants and reporting requirements for grants. The bill requires TEDTO to compile an annual report identifying the recipient of each grant for each state fiscal year, the amount awarded for each grant, and the expenses paid through the grant and requires each county or municipality that receives such a grant to submit to TEDTO any information TEDTO requires to compile the report. The bill requires TEDTO to adopt the required rules and eligibility standards not later than January 1, 2016, and requires a county or municipality that does not spend grant money received under the program for security purposes as required by the program to repay the amount of the grant that was in noncompliance.

H.B. 1860 expressly does not make an appropriation and establishes that a provision in the bill that creates a new governmental program, creates a new entitlement, or imposes a new duty on a governmental entity is not mandatory during a fiscal period for which the legislature has not made a specific appropriation to implement the provision.

EFFECTIVE DATE

September 1, 2015.