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The House Committee on Culture, Recreation, and Tourism met on March 29. This report covers discussions on HB 2132, HB 2420, HB 3813, and HB 3339. The first part of the hearing can be found here, and the second part can be found here.

 

This report is intended to give you an overview and highlight of the discussions on the various topics the committee took up. It is not a verbatim transcript of the hearing but is based upon what was audible or understandable to the observer and the desire to get details out as quickly as possible with few errors or omissions.

 

Opening Comments

  • King – Guesses they will not be in session on Monday, but committee will have a formal meeting next week to vote out bills

 

HB 2132 (Ellzey, Harris) – Relating to the eligibility of the National Hot Rod Association Fall Nationals at the Texas Motorplex for funding under the Major Events Reimbursement Program

  • 5-day racing event
  • $10 million in economic activity for county, $50 million for whole region
  • Cars can go up to 330 miles per hour
  • Fans come from all over the country
  • Only makes it eligible, doesn’t guarantee it will receive all of the benefits
  • Requirements are $1 million in revenue, human trafficking check, and other guidelines

 

Christy Johnson, Texas Motorplex – For

  • Maintain premier drag racing facility after 35 years
  • Chicago, Las Vegas, and Charlotte have followed our implementation
  • Working relationship with AAA of Texas, Motor Sports Summit, and Toyota; brings more economic development and tourism to area
  • Host NHRA Fall Nationals yearly, second largest event in world championship series
  • Clardy – How many people employed at racetrack?
    • Full time about 20, for events there can be 1,000s based on what is being hosted
  • Clardy – Having attended events before, it is quite a rush to the system

 

Ellzey, in closing

  • In darkest days of pandemic, Motorplex was the only sporting event open

HB 2132 passed out of committee

 

HB 2420 (Howard, Israel) – Relating to the eligibility of the South by Southwest Conference and Festivals for funding under the Major Events Reimbursement Program

  • Assumes they met the minimum criteria and minimum plan in place for normal events under the statute
  • Does not involve state appropriations
  • Generates hundreds of millions of dollars and worldwide press for the state
  • Does not take place in a single, stationary venue; benefits independent venues, bars and outdoor spaces
  • First major event to be cancelled due to the pandemic
  • Money generated only goes back to the official South by Southwest
  • Wants to ensure the event is as strong as it was before the pandemic
  • Hospitality industry was hit hard, time to help out

 

Brad Spies, South by Southwest – For

  • Broadcast message of optimism to the world; signature event for Texas
  • $340 million media evaluation on top of local economic impact; 417,000 total participants
  • Virtual version went as well as it possibly could, but was not the same in any way
  • March 11-20 of next year (2022) to be the dates of the event
  • Wants to be classified as a MERP event

HB 2420 passed out of committee

 

HB 3813 (Harris, Clardy) (CS) – Relating to the authority of certain municipalities to impose regulations on amplified sound from certain venues

  • Discusses past local sound ordinance affecting businesses across the street from each other differently and producing struggle
  • Discusses pandemic effect on small businesses and live music
  • Need to do anything possible to help small businesses; currently Austin is only city with noise ordinance in entertainment district
  • Frullo – What causes those boundaries? Why one side of the street an not the other?
    • Great question, I’ll defer to the witnesses experiencing that to answer

 

Brett Vance, Small Business Owner – For

  • Challenging past year for Austin entertainment industry, even prior to COVID
  • Regulations so burdensome and ambiguous majority of businesses not turned profit since last Feb
  • Told to turn off music hours before liquor sales have to close while bars across the street do not face the same rules; told it is due to hotel resident complaints
  • Pay over $400,000 annually in mixed beverage taxes to state at one location and live music license being revoked
  • Expect at least 40% reduction on sales abiding by outdoor music codes, making businesses unprofitable
  • Unable to book venues for event in advance without understanding live music rules first; normally spring and summer festivals worth hundreds of thousands
  • Those from outside the state should not be deciding what Austin culture is
  • Israel – How many businesses would you say are of your same opinion? Getting a lot of mixed reaction
    • Any business in West 6th street or Rainey street districts have had problems; even historic 6th street which has more relaxed rules
  • Israel – Does not seem fair that we are suggesting city has been ignoring local businesses; from my position there has been a lot of discussion of local ordinance, is that fair to say?
    • We did have a meeting with most bar owners year ago with Austin PD and Music department, but no one from city council showed up
    • Need to be able to play some sort of music during those hours when we make the most sales
  • Israel – Local ordinance says no more music after 10 o’clock?
    • 10:30 or 12 depending on where you are; some locations are 8
    • Can be operating for years and if a hotel or residence is built next to you it can affect the way business is run
    • Apply for outdoor music permit yearly, may not get it
  • Israel – Do you represent a coalition of businesspeople?
    • Yes, I do; we do not particularly have a name
  • Israel – How many people in coalition?
    • Representing 6 businesses currently
  • Israel – Rep. Harris doesn’t represent Austin, curious as to why you chose him to carry this legislation?
    • Just trying to find someone to listen and help, new to the process

 

Brian Block, Entertainment Services Manager with Development Services Dept. – Against

  • City of Austin opposes HB 3813 as filed
  • Preempts city of Austin’s ability to regulate amplified sound in residential areas if it does not exceed 75 decibels 10am through 2am
  • City of Austin has worked closely with community members and stake holders to find a balance working for all parties involved
  • Outdoor music important to culture and nighttime entertainment, establishments can get permits to allow for exemption from regulations and requirements while still maintaining quality of life for nearby residents
  • City of Austin committed to supporting venues and small businesses as well as residents; this bill will destroy strides we have made to do so
  • Frullo – Why are we hearing that businesses on one side of the street can have the sound while the other side cannot? What happens when someone is turned in?
    • In 2011 an outdoor music venue permit was put in place if within 600 ft of residential may not get the permit creating different standards
    • Would like to make that better and provide more flexibility
    • If someone is turned in, since it is city code, there’s criminal enforcement and citations can be issued
  • Frullo – I’m assuming there are typically repeat offenders, is that correct? Is there a special division working on these projects?
    • Yes there is; found we couldn’t have consistent enforcement when relying only on PD who has higher concerns
    • Brought on non-sworn enforcement team
    • There is writing in the current code to deal with repeat offenders
  • Israel – More dialogue and flexibility is needed on controversial topics like this; part of challenge is dealing with growth while respecting homes and businesses
    • Absolutely, have struggled with it over 2 decades
    • 2019 had 7-month engagement process to deal with sound management
    • Use of music permits allows us to use policy to craft vision had for each area while accommodating sound ordinance
  • Israel – Austin is growing in every corner, would this impact areas whether you’re in a high rise or smaller home?
    • Yes, this is one size fits all as we treat different areas differently; do not think this makes since
  • Israel – Right, this is a topic we have been hashing, so no one can say their opinion was not heard on this controversial topic
  • Clardy – When a business has been there years and people move in and complain, seems arbitrary and capricious, and a borderline taking from the government; don’t you think its patently unfair to apply these rules retroactively to businesses?
    • Would say this code has been in place for 10 years, before any businesses we are referring to are there
  • Clardy – At the time there was a sound ordinance that they were not breaking and seems Austin is moving the goal line. Also, getting more enforcements to write more citations does not seem right; we should not see citizens treated arbitrarily. Don’t want to have to take actions of State, but we will do it.

 

Austin Talley – For, not testifying

Patricia McNew – Against, not testifying

 

Harris, in closing

  • Will do anything possible to help businesses
  • Couldn’t state it better than Clardy; simple case of gov’t overreach

HB 3813 left pending

 

HB 3339 (Meyer, Holland) – Relating to the eligibility of certain events for funding under the Major Events Reimbursement Program

  • Adds Ladies PGA championship, PGA championship, Senior PGA championship, and Ryder Cup as eligible events under MERP; will bring in lots of funds

 

Marla Rowe, City of Frisco – For

  • Sporting events huge part of economy, PGA moving here makes it critical to apply and have access to events mentioned
  • Events hold $240 million in economic impact cumulatively; any consideration to adding those would be greatly appreciated

 

Meyer, in closing

  • Respectfully request favorable consideration

HB 3339 voted out of committee