Super Bowl, Final Four … what’s next for Texas?

Move over, Super Bowl, country music award shows and the Final Four.

The push is on to bring new big events to town — with financial help from the state.

Legislators are considering adding NASCAR races, a new rodeo championship, the Ultimate Fighting Championship and presidential debates to a list of marquee events eligible to receive tax incentives to come to Texas.

“It’s a really strong economic tool that doesn’t cost Texans anything, and it strengthens the Texas economy,” said Rep. Cecil Bell Jr., R-Magnolia, who has filed one of the proposals.

At issue is the Major Events Trust Fund, which has drawn praise for helping Texas land big events but has raised concerns about how some taxpayer dollars were used. It’s one of several funds created years ago to ease the cost of recruiting events that can draw big crowds and bigger dollars to the state.

Lawmakers say they intended to make some of these proposed events eligible for the fund last session, but language to do that was inadvertently left out of the law that passed.

As legislators look at the list now, some Texans question whether the fund truly attracts events that otherwise might go elsewhere.

“It may help with the willingness of a city to host it,” said Steve Mann, an associate finance professor at TCU’s Neeley School of Business. “If the event costs the city, they won’t use that as a reason to turn down the event with this. But are these events we would not get without the funding?”

Officials say the fund does make a difference because it gives committees trying to land big sporting, political and musical events a head start on needed funds. A chunk of the tax dollars generated by the events is returned to host cities to help defray costs including transportation and public safety.

North Texas communities have already received millions of dollars from the fund, most notably $31.15 million sent to Arlington for hosting the 2011 Super Bowl.

Events such as the 2013 National Cutting Horse Association Futurity in Fort Worth brought $1.4 million, and the 2014 NCAA Final Four in North Texas returned $10.7 million to host cities, according to the Texas comptroller’s office.

The Academy of Country Music Awards show, planned for April at AT&T Stadium in Arlington, is expected to generate more than $100 million in visitor spending and could draw more than $5 million from the fund.

The size of the fund fluctuates through the years, depending on what’s paid out. It stands at $13.9 million now, according to the comptroller’s office.

Legislative proposals

The Legislature created the fund in 1999 in an effort to draw the Olympics to Texas.

Several lawmakers have filed proposals this year to add events eligible for the fund, which is made up of millions of dollars set aside by the comptroller in projected sales, liquor, rental car and hotel occupancy taxes generated by visitors. That money is then used to defray the costs of hosting events, ranging from crowd or traffic control to facility improvements.

Sen. Jane Nelson, R-Flower Mound, filed Senate Bill 293 to add NASCAR races to the list of eligible events.

“My goal with SB293 is to allow NASCAR to participate in this program the same way other auto-racing events in our state do,” Nelson said. “That was clearly the legislative intent last session, but a drafting error prevented NASCAR from becoming eligible. SB293 will correct that error and make sure we have an even playing field as intended by the Legislature.”

Rep. Tan Parker, R-Flower Mound, filed House Bill 902 to do the same in the House.

Bell, the Magnolia Republican, filed HB1440 to add Elite Rodeo Association World Championship competitions — a new group that should begin regular competitions next year — to the list.

“I have a genuine affection for pro rodeo,” Bell said. “This absolutely would help bring it here.”

Bell noted that events are not competing with one another to be added to the eligibility list: They all generate tax dollars, and that’s what would be refunded to the host cities.

“Any city in Texas that wants to host this event would be able to,” said Bell, who noted that he has been working with Dallas to lure the championship to Texas.

Sen. Van Taylor, R-Plano, filed SB541 to put general-election presidential debates on the list and have the Commission on Presidential Debates serve as a site selection organization. Rep. Angie Chen Button, R-Garland, filed HB1318 to do the same in the House.

With HB900, Rep. Jason Isaac, R-Dripping Springs, proposes adding NASCAR races and the Ultimate Fighting Championship and letting ESPN or an affiliate serve as a site selection organization.

Sen. Judith Zaffirini, D-Laredo, filed SB48 to add ESPN to the list of site selection organizations.

Each event has to be linked to a site selection organization. Last session, when lawmakers added the X Games, they neglected to add ESPN as the site selection organization.

Rep. Eddie Rodriguez, D-Austin, filed HB1292 to rename the fund the “Major Events Reimbursement Program.” The goal is to make sure it’s not classified as an incentive fund, since the fund reimburses tax dollars already paid.

Lawmakers may also look at the Events Trust Fund, the Motor Sports Racing Trust Fund and the Special Events Trust Fund.

Shifting oversight?

The Major Events Trust Fund — which offers the largest dollar amounts to Texas communities that host elite events — has been an issue with state lawmakers for years. Last session, many worked to address concerns about abuses.

Concerns arose after revelations that some funds were used for video scoreboards and screens at the American Airlines Center in Dallas and the Toyota Center in Houston as officials prepared for NBA All-Star Game activities.

Two years ago, lawmakers worked to boost oversight of this and other funds, including conducting audits to ensure the money is spent properly and eliminating prepayments.

Then-Sen. Wendy Davis, D-Fort Worth, was among those leading the charge for change and more accountability. “We’ve got to do a better job of focusing on the use of these taxpayer funds,” she said at the time.

Gov. Greg Abbott has said he wants to move the funds from the comptroller’s office to the governor’s economic development and tourism division — and work with lawmakers to address lingering worries.

“Obviously, Gov. Abbott would like to have the discretion of how those funds were allocated,” said Jim Riddlesperger, a TCU political science professor. “It’s a way to enhance the governor’s authority.”

Abbott said the shift would be to “leverage our existing economic resources and promote Texas as a world-class commercial destination nationally and globally.”

He noted that he and Comptroller Glenn Hegar “identified weaknesses in Texas’ economic development programs and provided a road map for reform that will optimize our state’s economic development strategy.”

Hegar said shifting the funds to the governor’s office would let him focus more on the main functions of the comptroller’s office.

“Gov. Abbott and I share a commitment to increasing accountability and eliminating waste, fraud and abuse,” Hegar said. “Reforming these programs is a significant step, and we are ready to work with the Legislature to achieve those goals.

“My top priority is protecting Texas taxpayers.”

This story was originally published February 21, 2015 at 8:45 PM with the headline "Super Bowl, Final Four … what’s next for Texas?."