SB 633

84(R) - 2015
Senate Natural Resources & Economic Development
Senate Natural Resources & Economic Development
Economic & Small Business Development
Major Events Trust Fund

Vote Recommendation

  • Negative
  • Neutral
  • Neutral
  • Negative
  • Neutral


Troy Fraser

Bill Caption

Relating to certain event trust funds and the abolishment of the special event trust fund.

Fiscal Notes

A fiscal note dated May 22, 2015 indicates that the fiscal implications of the bill cannot be determined at this time. The fiscal impact would depend on the number and size of events covered under the bill.

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

Bill Analysis

Senate Bill 633, as substituted in the House committee, would reenact Sections 4(i) and (l), Chapter 1507 (S.B. 456), Acts of the 76th Legislature, Regular Session, 1999 (Article 5190.14, Vernon ’s Texas Civil Statutes), as amended by Chapters 579 (H.B. 1675) and 814 (S.B. 275), Acts of the 78th Legislature, Regular Session, 2003. It would amend provisions relating to the Pan American Games trust fund to update deadline references regarding actions required by the comptroller.

It would amend the section regarding the Major Events Trust Fund to add to the definition of "event" the National Collegiate Athletic Association men’s or women’s lacrosse championships, the World Cup soccer tournament, the Major League Soccer All-Star Game, the Major League Soccer Cup, the Professional Rodeo Cowboys Association National Finals Rodeo, an Elite Rodeo Association World Championship, the United States Open Championship, the Amateur Athletic Union Junior Olympic Games, the Moto Grand Prix of the United States, and a presidential general election debate.

It would add as a "site selection organization" Dorna Sports, the Amateur Athletic Union, the Professional Rodeo Cowboys Association, the Elite Rodeo Association, Major League Soccer, the United States Golf Association, and the Commission on Presidential Debates.

Regarding adding presidential general election debates to eligible events for the Major Events Trust Fund, each presidential general election debate in a series of presidential debates before a general election would be considered a separate, single event.

The bill would repeal Chapter 398 of the Local Government Code relating to measures to support municipal and county special events.

Vote Recommendation Notes

Even while repealing the Special Events Trust Fund, Senate Bill 633 would add several events to the list of events eligible under the Major Events Trust Fund.

The goal of the Major Events Trust Fund is to attract to Texas major events that could have been hosted elsewhere, as well as the tourist activity that comes with them. The fund helps defray the cost of hosting the events thanks to the incremental revenues in local and state sales and use, auto rental, hotel, and alcoholic beverages taxes generated by these events. The incremental tax revenues must be equal to or over $1 million over a period of one year starting two months before the date of the event.

The Major Events Trust fund is made up of the incremental increase in receipts from the local sales and use, mixed beverages, and hotel occupancy taxes, and an amount in state sales and use, car rental, hotel occupancy and mixed beverages taxes equal to 6.25 times the amount of local incremental tax revenues, not to exceed the state incremental increase in tax receipts estimated to be generated by the qualifying event.

Funds can be used to pay for the principal or interest on notes that an endorsing municipality or county might have issued to meet their obligations under a game or event support contract; and to pay for costs associated with the preparation or the conduct of the event, including improvements and renovations of existing facilities or acquisitions or construction of new facilities.

Low and limited taxation is the best incentive to attract out-of-state events and visitors, and encourage economic development. Instead, the Major Events Trust Fund is counting on an array of taxes, that impact Texans as well as visitors, to subsidize municipalities and counties to host certain events at the expense of other and possibly better events. The higher and more numerous the taxes, the less money will be left for visitors to spend in the local economy hosting the event, having an effect counterproductive to the goal of hosting a major event.

Senate Bill 633 would add to the list of favored events for special tax treatments, increasing the role of government and hindering free markets in the process. The role of a limited government does not include deciding which events should get preferential treatments. Consequently, we oppose Senate Bill 633.

The second chamber sponsor is Representative Jason Isaac.