BILL ANALYSIS

S.B. 2004

By: King

Culture, Recreation & Tourism

Committee Report (Unamended)

BACKGROUND AND PURPOSE

The NTT INDYCAR SERIES schedules open-wheel car racing events throughout North America, according to the organization's website. The bill sponsor has informed the committee that one of its racing events will be held in Texas in March 2026, billed as the INDYCAR Grand Prix of Arlington, with qualifying events that culminate in a race day on Sunday, March 15. The bill sponsor has further informed the committee that if the event qualifies for the major events reimbursement program, the local and state gains from sales and use taxes, vehicle rental taxes, and hotel and alcoholic beverage taxes generated from the event would help pay costs incurred from hosting the event. S.B. 2004 seeks to include the INDYCAR Grand Prix of Arlington as such an eligible event.

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 this bill does not expressly grant any additional rulemaking authority to a state officer, department, agency, or institution.

ANALYSIS

S.B. 2004 amends the Government Code to make the INDYCAR Grand Prix of Arlington eligible for funding under the major events reimbursement program and to designate Penske Entertainment as a site selection organization for purposes of provisions governing the program. The bill adds a temporary provision, set to expire September 1, 2030, conditioning program funding for the INDYCAR Grand Prix of Arlington on a site selection organization selecting a site in Texas as the sole site for the event without considering through a highly competitive process one or more sites not in Texas.

EFFECTIVE DATE

September 1, 2025.