(a) The following costs are supportive of the trust
fund program goals and are generally allowable:
  (1) construction, renovations, improvements, fixtures,
temporary maintenance, and financing costs for public event sites
that are:
    (A) not limited or prohibited by subsection (b) of
this section;
    (B) permissible under §2.206 of this title (relating
to Event Support Contracts); and
    (C) within the designated market area;
  (2) fees charged by a site selection organization which
must be paid as a prerequisite to holding an event, including hosting
fees, sanction fees, participation fees, or bid fees;
  (3) performance bonds or insurance required for hosting
the event;
  (4) improvements or temporary maintenance to publicly
owned real property impacted by the conduct of the event, such as
a public roadway that is:
    (A) not limited or prohibited by subsection (b) of
this section;
    (B) permissible under §2.206 of this title; and
    (C) within the designated market area;
  (5) security, safety, traffic, or public health related
costs that are:
    (A) not limited or prohibited by subsection (b) of
this section;
    (B) permissible under §2.206; of this title; and
    (C) within the designated market area;
  (6) water or food necessary to the health or safety
of people or animals involved in hosting or participating in the event;
  (7) event facility costs, including:
    (A) cost to rent a facility if the requestor is required
to provide the facility at no cost under the event support contract,
or the cost equivalent to a rental credit if the requestor is required
to provide the credit under the event support contract;
    (B) the purchase or rental of furnishings and equipment:
      (i) permissible under §2.206 of this title; and
      (ii) not limited or prohibited by subsection (b) of
this section;
  (8) a requestor's staffing costs permissible under
§2.206 of this title, which include:
    (A) hourly pay or overtime earned for hours specifically
attributable to meeting objectives in §2.206 of this title for
the approved event;
    (B) compensation of staff hired or contracted specifically
to meet objectives described in §2.206 of this title for the
approved event; and
    (C) occur prior to or during the event, unless the
staff is assisting with the post-event economic impact study;
  (9) a requestor's legal or professional service costs
not prohibited under subsection (b)(5) of this section for:
    (A) preparing a pre-event or post-event economic impact
study;
    (B) preparing event-related documents;
    (C) fulfilling specific obligations of the event support
contract; or
    (D) consulting on soliciting, preparing for, or hosting
the event;
  (10) market-area transportation and/or parking services
for the event that are net of revenues earned from providing the transportation
and/or parking;
  (11) temporary signs and banners, when required by
the event support contract;
  (12) advertising for the event which:
    (A) occurs prior to or during the event;
    (B) includes the event name and date, or event name
and location; and
    (C) are the requestor's obligations in the event support
contract;
  (13) promotional items that:
    (A) are created specifically to advertise the event;
    (B) are distributed prior to the event to members of
the general public from locations likely to attract out-of-state visitors
to the event; and
    (C) meet the requirements of paragraph (12) of this
subsection;
  (14) costs attributable to inclement weather occurring
immediately before, during, or immediately after an event, except
costs of damages;
  (15) any other direct costs resulting from requirements
of the event support contract that are not prohibited in subsection
(b) of this section; and
  (16) other costs determined by the comptroller to meet
program objectives.
(b) Disbursements for the following costs are prohibited,
regardless of their inclusion in an event support contract:
  (1) any tax listed in Texas Revised Civil Statutes,
Article 5190.14, Section 5C;
  (2) gifts of any kind, including tips, gratuities,
or honoraria;
  (3) grants to any person, entity or organization;
  (4) alcoholic beverages;
  (5) costs related to representing any entity, including
a requestor, in front of:
    (A) the legislature for any reason; or
    (B) the comptroller for the purpose of seeking reimbursement
from the trust fund;
  (6) expenses related to:
    (A) gaming;
    (B) raffles;
    (C) prizes, cash, gift cards, pre-paid service certificates,
or any other award or competitive performance compensation that is
not a trophy, ribbon, medal, or sash required to be provided by the
event support contract; or
    (D) giveaways that do not meet the requirements of
subsection (a)(13) of this section;
  (7) expenses for religious items or religious publications
of any kind, regardless of the religion or type of event;
  (8) personal items and services;
  (9) entertainment, hospitality, appearance fees, or
"VIP" expenses;
  (10) food not specifically authorized in subsection
(a)(6) of this section;
  (11) an individual's travel expenses not specifically
authorized in subsection (a)(10) of this section, or that are not
a component of a service contract under subsection (a)(9) of this
section;
  (12) reimbursement of any particular expense or obligation
that was recouped or that will be recouped from another entity or
from revenue earned under the event support contract that is identified
to cover the cost;
  (13) reimbursement of any cost not incurred, such as
for lost profit or for an exchange-in-kind or product;
  (14) damages of any kind;
  (15) any cost or expense of or related to constructing
an arena, stadium, or convention center;
  (16) any cost or expense related to conducting usual
and customary maintenance of a facility;
  (17) any amount in excess of five percent of the cost
of any improvement made or fixture added to a site that is privately
owned property where the improvement or fixture is expected to derive
most of its value in subsequent uses of the site for future events;
  (18) privately owned property not authorized under
paragraph (17) of this subsection;
  (19) costs that are not direct costs; or
  (20) any expenses which an endorsing municipality or
endorsing county finds are unnecessary for the planning or conduct
of an event.
(c) The comptroller may deny a disbursement for any
event, cost, expense or obligation the comptroller deems unnecessary,
fiscally irresponsible, or not supportive of program objectives.


Source Note: The provisions of this §184.205 adopted to be effective February 26, 2013, 38 TexReg 1209; amended to be effective September 25, 2014, 39 TexReg 7596; transferred effective September 1, 2015, as published in the Texas Register September 11, 2015, 40 TexReg 6163