LEGISLATIVE FISCAL OFFICE
Fiscal Note
Fiscal Note On: HB 1015 HLS 22RS 1693
Bill Text Version: ENROLLED
Opp. Chamb. Action:
Proposed Amd.:
Sub. Bill For.:
Date: June 10, 2022 1:33 PM Author: SCHEXNAYDER
Dept./Agy.: Culture, Recreation and Tourism
Subject: Creates the Major Events Incentive Program Analyst: Tim Mathis
ECONOMIC DEVELOPMENT EN INCREASE GF EX See Note Page 1 of 2
Provides relative to financial incentives for events held in Louisiana
Proposed law moves administration of the Major Events Incentive Fund from the Department of Economic Development
(LED) to the office of the lieutenant governor through the Department of Culture, Recreation and Tourism (CRT). The source
of monies shall be any funds appropriated by the legislature, including federal funds, any donations, gifts or grants from
individuals, corporations, nonprofit organizations, etc. Authorizes CRT to provide grant funding to event producers and hosts,
local organizing committees, endorsing municipalities, parishes, official tourism commissions, convention and visitors
bureaus, and official destination marketing organizations for costs associated with attracting and hosting for Louisiana any
qualified major event that will have a significant positive impact in the state. Provides for eligible use of grants. (Bill
Summary Continued on Page Two)
EXPENDITURES 2022-23 2023-24 2024-25 2025-26 2026-27 5 -YEAR TOTAL
State Gen. Fd. INCREASE INCREASE INCREASE INCREASE INCREASE
Agy. Self-Gen. $0 $0 $0 $0 $0 $0
Ded./Other INCREASE INCREASE INCREASE INCREASE INCREASE
Federal Funds $0 $0 $0 $0 $0 $0
Local Funds $0 $0 $0 $0 $0 $0
Annual Total
REVENUES 2022-23 2023-24 2024-25 2025-26 2026-27 5 -YEAR TOTAL
State Gen. Fd. DECREASE DECREASE DECREASE DECREASE DECREASE
Agy. Self-Gen. $0 $0 $0 $0 $0 $0
Ded./Other INCREASE INCREASE INCREASE INCREASE INCREASE
Federal Funds $0 $0 $0 $0 $0 $0
Local Funds $0 $0 $0 $0 $0 $0
Annual Total
EXPENDITURE EXPLANATION
There will be increased state costs for the Department of Culture, Recreation and Tourism (CRT) to hire staff to administer
two statutorily dedicated funds and to provide economic analysis reports. Actual costs are indeterminable and will vary
based on the scale of legislative appropriations for the Major Events Incentive Fund and the Events Incentive Fund, as well
as the number of qualifying events and contracts per year.
CRT will incur costs to provide to JLCB an economic analysis report within 60 days following the occurrence of a qualified
major event to determine the amount of incremental increase in state sales and use, and excise tax receipts generated
within the designated area. Contracts can range from $22,000 to $50,000 or more depending on the size of the event.
Assuming four events per year, the total cost of analyses could range from $88,000 to $200,000 annually. CRT would also
be required to submit a report on the economic impact of events associated with grant funding through the Events Incentive
Fund, however such costs are indeterminable. Actual costs may be lower or greater depending on the number and size of
events.
(Expenditure Explanation Continued on Page Two)
REVENUE EXPLANATION
The proposed legislation will decrease state general fund revenues and increase statutorily dedicated funds for the portion of
the incremental increase in state sales and excise tax receipts reported by the lieutenant governor to have been generated
by a qualified major event in the designated area and approved by the Joint Legislative Committee on the Budget (JLCB).
While any event examined in isolation can show tax receipts associated with the event, revenue identified for deposit into
the Major Events Incentive Fund is indeterminable. For illustrative purposes, an economic impact analysis on the 2013 Super
Bowl identified $16.6 M state sales and excise taxes, including hotel taxes, generated by the event. Another economic
analysis on the 2020 College Football Playoff National Championship Game identified $3.8 M in state sales and excise taxes.
Further Directs the Treasurer to deposit the current fund balance from the Major Events Incentive Program Subfund ($9.5 M)
into the new Major Events Incentive Fund.
The proposed legislation will decrease statutorily dedicated funds from Schedule 20 - Other Requirements, LED Debt Service
and State Commitments, and of a commensurate amount for the Department of Culture, Recreation and Tourism. This bill
does not identify a recurring source of revenues for the newly created Events Incentive Fund, however to the extent deposits
are made into fund, there will be an increase in statutory dedication revenues.
Senate Dual Referral Rules House
x 13.5.1 >= $100,000 Annual Fiscal Cost {S & H} x 6.8(F)(1) >= $100,000 SGF Fiscal Cost {H & S}
Evan Brasseaux
13.5.2 >= $500,000 Annual Tax or Fee 6.8(G) >= $500,000 Tax or Fee Increase
Change {S & H} or a Net Fee Decrease {S} Interim Deputy Fiscal Officer
 LEGISLATIVE FISCAL OFFICE
Fiscal Note
Fiscal Note On: HB 1015 HLS 22RS 1693
Bill Text Version: ENROLLED
Opp. Chamb. Action:
Proposed Amd.:
Sub. Bill For.:
Date: June 10, 2022 1:33 PM Author: SCHEXNAYDER
Dept./Agy.: Culture, Recreation and Tourism
Subject: Creates the Major Events Incentive Program Analyst: Tim Mathis
CONTINUED EXPLANATION from page one: Page 2 of 2
(Expenditure Explanation Continued from Page One)
CRT has indicated that the transfer of the Major Events Incentive Program from the Department of Economic Development
(LED) and the new Events Incentive Fund would require, at a minimum, one (1) Contracts/Grants Reviewer position
($67,299 salary and $35,358 related benefits) and associated operating costs. To the extent appropriations for one or both
funds rise to or above a certain level, CRT may also require an Administrative Program Director ($82,441 salary and $42,695
related benefits) to engage eligible applicants, receive and evaluate applications, and work with entities on all aspects
leading up to the event. CRT reports that operating costs to create a new budget program could require $110,000 for travel,
furniture and equipment purchases, office supplies, and statewide expenditures.
Note: The LFO cannot corroborate the need for additional positions reported by CRT. Per LED, the agency has
been able to administer the Major Events Incentive Fund utilizing existing staff and resources. The need for
additional staff and other expenditures for CRT will likely depend on the volume of funds appropriated for the
Major Events Incentive Fund and Events Incentive Fund and the number of qualifying events.
The Major Events Incentive Fund under LED has reimbursed four events since its inception in FY 16, totaling $6.2 M:
New Orleans College Football Championship Host Committee, Inc. for the 2019 NCAA National Championship: $3.8 M
New Orleans NBA All-Star Host Committee, Inc. for the 2017 NBA All-Star Game: $1.5 M
City-Parish of East Baton Rouge for the 2017 U.S. Bowling Congress Women’s Championships: $824,308
Lafayette Convention and Visitors Commission for the 2019 Louisiana State Golden Gloves Boxing Tournament: $37,000
Creating a new statutory dedication within the state treasury will result in a marginal workload increase for the Department
of Treasury, which can generally be absorbed within existing resources. However, to the extent other legislative instruments
create new statutory dedications, there may be material additional costs associated with the aggregate effort to administer
these funds. The Treasury performs fund accounting, financial reporting, banking and other custodial functions for 436
special funds. When unable to absorb additional workload with existing resources, the Treasury anticipates it will be required
to add one T.O. position at a total personnel services cost of approximately $73,000, plus approximately $2,450 for a one-
time purchase of office equipment. These expenditures are assumed to be SGF in this fiscal note.
(Bill Summary Continued from Page One)
Within sixty days, the lieutenant governor shall submit an economic analysis to the Joint Legislative Committee on the
Budget (JLCB) which shall include the designated area impacted by the event, and the total incremental increase in state
sales and excise tax receipts. The JLCB shall determine the portion of incremental tax increase reported by the lieutenant
governor for transfer into the Major Events Incentive Fund.
Proposed legislation creates the Events Incentive Fund to provide grant funding to municipalities, parishes, official tourism
commissions, convention and visitors bureaus, official destination marketing organizations, and nonprofit corporations
hosting an event for costs associated with planning, marketing, and conducting events held in Louisiana. The source of
monies shall be any funds appropriated by the legislature, including federal funds, any donations, gifts or grants from
individuals, corporations, nonprofit organizations, etc. Provides for CRT to administer the program. Defines “event” as an
event of area-wide, statewide, regional, national, or international prominence with an anticipated economic impact of
$250,000 or greater to the state. A entity hosting the event shall be eligible to receive funding if the event is not a “qualified
major event”; the event is not held more than one time per year in Louisiana or any other state; the applicant submits the
application and documentation no later than 180 days prior to the event. Grants may be used to pay or reimburse the costs
of applying or bidding for selection as the site of the event, or to pay or reimburse the costs of planning, marketing, or
conducting the event. Requires the lieutenant governor to submit an annual report to JLCB, including the entities that
received grant funding for events and the economic impact of the events to the state, to the extent possible.
Directs the treasurer to transfer any remaining balance in the Major Events Incentive Program Subfund to the Major Events
Fund.
Senate Dual Referral Rules House
x 13.5.1 >= $100,000 Annual Fiscal Cost {S & H} x 6.8(F)(1) >= $100,000 SGF Fiscal Cost {H & S}
Evan Brasseaux
13.5.2 >= $500,000 Annual Tax or Fee 6.8(G) >= $500,000 Tax or Fee Increase
Change {S & H} or a Net Fee Decrease {S} Interim Deputy Fiscal Officer


Statutes affected:
HB1015 Original: 51:2365(D)(3), 51:2365(F)(1)
HB1015 Engrossed: 51:2365(D)(3), 51:2365(F)(1)
HB1015 Reengrossed: 51:2365(D)(3), 51:2365(F)(1)
HB1015 Enrolled: 51:2365(D)(3), 51:2365(F)(1)
HB1015 Act : 51:2365(D)(3), 51:2365(F)(1)