15-05-2025
House bill could let SXSW get state funding for event costs
AUSTIN (KXAN) — South by Southwest could get state funding to help pay costs associated with planning and conducting its annual conferences and festivals if a bill passed by the Texas House on Wednesday makes it all the way through the legislature and off the governor's desk with his signature.
House Bill 4811, introduced by Rep. Sheryl Cole, D-Austin, would extend the eligibility for the Major Events Reimbursement Program (MERP) to include South by Southwest.
This comes as the Austin Convention Center, the hub and main host location for SXSW, is expected to be closed for at least three years during its reconstruction, which lawmakers anticipate could increase the cost of planning and hosting the festival.
Related | Construction officially starts on new Austin Convention Center
The MERP is one of three funds under the Events Trust Fund, which is a program that helps pay for costs 'related to preparing for or conducting an event,' according to a description of the program from the Texas Economic Development & Tourism Office.
The program works by 'depositing projected gains in various local and state taxes generated from the event in a dedicated event-specific trust fund to cover allowable expenses,' per the description.
Both the state and the applicant must contribute to the event's trust fund. According to a guidelines document, applicants must contribute $1 in local tax gains for every $6.25 the state contributes to the fund.
The program is funded through event-generated tax increases; there is no maximum or minimum amount of funds available.
Currently, the following can apply for one of the funds: a municipality, county, or non-profit local organizing committee that was 'endorsed by a Texas municipality or county which has been selected to host a qualified event, if the event location in that Texas municipality or county was selected through a highly competitive process by an independent site selection committee which considered other out-of-state locations.'
Because SXSW is an Austin-established event, the bill would also designate SXSW as a 'site selection organization' and exempt it from the requirement that funding for an event through MERP be contingent upon a site selection organization choosing a Texas location after considering one or more out-of-state options, according to the House Research Organization Bill Analysis.
'HB 4811 would establish that, if an endorsing municipality or county requested the Texas Economic Development and Tourism Office to determine an incremental increase in certain tax receipts for the SXSW Conference and Festivals, the remaining provisions of MERP would apply to that event as if it satisfied the site selection eligibility requirement,' the HRO Bill Analysis said.
The full text of the bill and its stages through legislative chambers can be read online.
HB 4811 passed the House on Wednesday and was sent to the Senate.
Co-authors of the bill were Reps. Ryan Guillen, Giovanni Capriglione, John Bucy III, and Donna Howard.
KXAN reached out to the offices of Reps. Cole and Howard, and SXSW to ask for commentary on the bill.
Rep. Cole's office issued the following response:
HB 4811 was filed to help event planners like SXSW to be reimbursed for eligible expenses associated with their events. This is even more important now for SXSW, as the festival faces additional financial challenges due to the significant four-year disruption that will occur while Austin builds a new convention center.
The Major Events Reimbursement Fund exists as a critical tool to retain events in Texas. SXSW is an internationally known event that we hope can stay in Austin for a long time. This bill can help shore up that possibility.
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