BILL ANALYSIS Senate Research Center S.B. 2004 89R12520 PRL-F By: King Economic Development 4/4/2025 As Filed AUTHOR'S / SPONSOR'S STATEMENT OF INTENT The Major Events Reimbursement Program (MERP) permits local governments and local organizing committees to apply to the state for the establishment of a Major Events Reimbursement Fund to help pay for certain eligible costs associated with conducting specifically named major events if all statutory and administrative requirements are met. A fund is established for each event that consists of amounts deposited by the state and local government of the estimated incremental increase in tax receipts (state sales tax, hotel occupancy tax, mixed beverage tax, motor vehicle tax), as determined by the state, that are directly attributable to the preparation for and presentation of the event for a one-year period. The period begins two months before the date of the event and continues for ten months thereafter. In accordance with statute, the estimated increase in tax receipts is limited to amounts collected within a designated market area, and only to amounts collected from five specific tax types. S.B. 2004 proposes adding the Arlington Grand Prix to the Major Events Reimbursement Program statute and would help offset costs incurred for hosting and conducting a major event. This bill not only has support from the local community, it promises to bolster tourism to the benefit of the state economy as a whole. As proposed, S.B. 2004 amends current law relating to the eligibility of the INDYCAR Grand Prix of Arlington for funding under the major events reimbursement program. RULEMAKING AUTHORITY This bill does not expressly grant any additional rulemaking authority to a state officer, institution, or agency. SECTION BY SECTION ANALYSIS SECTION 1. Amends Sections 478.0001(3) and (7), Government Code, as follows: (3) Adds the INDYCAR Grant Prix of Arlington to the list of activities which mean "event." (7) Adds Penske Entertainment to the list of organizations which mean "site selection organization." SECTION 2. Effective date: September 1, 2025.
BILL ANALYSIS
Senate Research Center S.B. 2004
89R12520 PRL-F By: King
Economic Development
4/4/2025
As Filed
Senate Research Center
S.B. 2004
89R12520 PRL-F
By: King
Economic Development
4/4/2025
As Filed
AUTHOR'S / SPONSOR'S STATEMENT OF INTENT
The Major Events Reimbursement Program (MERP) permits local governments and local organizing committees to apply to the state for the establishment of a Major Events Reimbursement Fund to help pay for certain eligible costs associated with conducting specifically named major events if all statutory and administrative requirements are met.
A fund is established for each event that consists of amounts deposited by the state and local government of the estimated incremental increase in tax receipts (state sales tax, hotel occupancy tax, mixed beverage tax, motor vehicle tax), as determined by the state, that are directly attributable to the preparation for and presentation of the event for a one-year period. The period begins two months before the date of the event and continues for ten months thereafter. In accordance with statute, the estimated increase in tax receipts is limited to amounts collected within a designated market area, and only to amounts collected from five specific tax types.
S.B. 2004 proposes adding the Arlington Grand Prix to the Major Events Reimbursement Program statute and would help offset costs incurred for hosting and conducting a major event.
This bill not only has support from the local community, it promises to bolster tourism to the benefit of the state economy as a whole.
As proposed, S.B. 2004 amends current law relating to the eligibility of the INDYCAR Grand Prix of Arlington for funding under the major events reimbursement program.
RULEMAKING AUTHORITY
This bill does not expressly grant any additional rulemaking authority to a state officer, institution, or agency.
SECTION BY SECTION ANALYSIS
SECTION 1. Amends Sections 478.0001(3) and (7), Government Code, as follows:
(3) Adds the INDYCAR Grant Prix of Arlington to the list of activities which mean "event."
(7) Adds Penske Entertainment to the list of organizations which mean "site selection organization."
SECTION 2. Effective date: September 1, 2025.