LEGISLATIVE BUDGET BOARD

Austin, Texas

FISCAL NOTE, 89TH LEGISLATIVE REGULAR SESSION

April 21, 2025

TO:	Honorable Will Metcalf, Chair, House Committee on Culture, Recreation & Tourism
FROM:	Jerry McGinty, Director, Legislative Budget Board
IN RE:	HB3349 by Tepper (relating to the events trust fund and to abolishing the Pan American Games trust fund, Olympic Games trust fund, and motor sports racing trust fund.), Committee Report 1st House, Substituted

Estimated Two-year Net Impact to General Revenue Related Funds for HB3349, Committee Report 1st House, Substituted: a negative impact of ($21,776,000) through the biennium ending August 31, 2027.

The bill would make no appropriation but could provide the legal basis for an appropriation of funds to implement the provisions of the bill.

General Revenue-Related Funds, Five- Year Impact:

Fiscal Year	Probable Net Positive/(Negative) Impact to General Revenue Related Funds
2026	($10,690,000)
2027	($11,086,000)
2028	($11,596,000)
2029	($12,129,000)
2030	($12,663,000)

All Funds, Five-Year Impact:

Fiscal Year	Probable Revenue Gain/(Loss) from General Revenue Fund 1	Probable Revenue Gain/(Loss) from Events Trust Fund for Certain Municipalities and Counties 0830
2026	($10,690,000)	$10,690,000
2027	($11,086,000)	$11,086,000
2028	($11,596,000)	$11,596,000
2029	($12,129,000)	$12,129,000
2030	($12,663,000)	$12,663,000

Fiscal Analysis

The bill would amend the Government Code to add an exception relating to the Events Trust Fund and the size of an endorsing county or municipality. The bill would also amend the multipliers used to calculate the state contribution to the Events Trust Fund. For an event held in a county or municipality with a population of 50,000 or less, the state share would increase from 6.25 to 12.25 multiplied by the amounts of municipal and county tax revenue retained or remitted to the Events Trust Fund. For an event held in a county or municipality with a population exceeding 50,000 but below 250,000, the state share multiplier would increase from 6.25 to 10.9375. Events in a county or municipality with a population greater than 250,000 but less than 500,000, the multiplier would increase from 6.25 to 9.375. The multiplier for an event in a county or municipality with a population of more than 500,000 would remain 6.25.

The bill would repeal sections of the Government Code relating to certain other trust funds and abolish the associated trust fund accounts: Chapter 476 relating to the Pan American Game Trust Fund account 0871, Chapter 477 relating to the Olympic Games Trust Fund account 0870, and Chapter 479 relating to the Major Sports Racing Trust Fund. 

Methodology

According to the Comptroller of Public Accounts, the amounts deposited to the Events Trust Fund in fiscal year 2024 were multiplied by the ratio of applications for funding under Chapter 480 of the Government Code made by counties or municipalities with a population in the categories described in the bill, adjusted to account for the increase in state's contribution rate to the fund for each category, and grown forward based on the projected growth in the general sales and use tax in found in the 2026-27 Biennial Revenue Estimate.

It is assumed that any Office of the Governor administrative costs associated with the bill could be absorbed within existing resources.

Technology

No technology impact is anticipated.

Local Government Impact

No significant fiscal implication to units of local government is anticipated.

Source Agencies:

300 Trusteed Programs Within the Office of the Governor, 304 Comptroller of Public Accounts

LBB Staff:

JMc, TUf, LCO, KCu, NV