Honorable Angie Chen Button, Chair, House Committee on Economic & Small Business Development
FROM:
Ursula Parks, Director, Legislative Budget Board
IN RE:
SB633 by Fraser (Relating to certain event trust funds and the abolishment of the special event trust fund.), Committee Report 2nd House, Substituted
The fiscal implications of the bill cannot be determined at this time and could be potentially negative due to the addition of an eligible event which has been historically held in the state. The fiscal impact would depend on the number and size of events covered under the bill.
The bill would amend Vernon's Texas Civil Statutes and Local Government Code relating to the Pan American Games trust fund, Major Events trust fund, and Special Event trust fund. The bill would repeal and eliminate the Special Event trust fund. The bill would add certain events as eligible for Major Events trust fund, such as the Professional Rodeo Cowboys Association, and add certain eligible site selection organizations.
Eligibility for participation in the METF is limited to those events listed in statute, provided that the site selection organization selecting a site is also listed in statute. Adding an eligible event and site selection organization could potentially expand the number of events eligible to receive funding through the METF. In addition, based on the analysis of the Comptroller of Public Accounts, the Professional Rodeo Cowboys Association holds approximately 19 "Finals" events each year of which two have historically been held in Texas. Adding an event which has consistently and historically been held in the state to the list of eligible events could have a negative fiscal impact of at least $1,000,000 for each event. This amount is based on the minimum $1,000,000 incremental gain in affected state and local revenues required by current statute for an event to be eligible for funding through the METF.
Local Government Impact
No significant fiscal implication to units of local government is anticipated.
Source Agencies:
301 Office of the Governor, 304 Comptroller of Public Accounts