Relating to the eligibility of the National Rifle Association's Annual Meetings and Exhibits or another annual event of the National Rifle Association for funding under the major events reimbursement program.
LowStandard timeline
Low Cost
Effective:2025-09-01
Enforcing Agencies
Trusteed Programs Within the Office of the Governor • Texas Economic Development & Tourism Office
01
Compliance Analysis
Key implementation requirements and action items for compliance with this legislation
Implementation Timeline
Effective Date: September 1, 2025
Compliance Deadline: Immediate for bid preparation teams targeting late 2025 events; formal applications must be submitted to the Governor's Office no later than 45 days prior to the event.
Agency Rulemaking: No new statutory rulemaking is mandated, but the Texas Economic Development & Tourism Office will apply existing MERP administrative standards to this new category immediately upon the effective date.
Immediate Action Plan
Audit Pipeline: Review all pending bids for NRA events scheduled for Q4 2025 and beyond to ensure MERP revenue projections are accurate.
Secure Proof: Immediately request a "Letter of Competitive Selection" from the client for any active negotiations to satisfy the statutory requirement.
Update Insurance: Review General Liability policies for venues to ensure "weapons-related trade shows" are not excluded, as this is a standard risk for this specific event category.
Contact Agency: If bidding on an event other than the main "Annual Meeting," contact the Texas Economic Development & Tourism Office to verify eligibility before committing funds.
Operational Changes Required
Contracts
Update Master Services Agreements (MSAs) and Event Hosting Agreements for NRA bookings to include:
Data Sharing Mandates: Clauses requiring the organization to provide attendee residency data (zip codes), which is a statutory prerequisite for calculating the economic impact and receiving funds.
Contingency Clauses: Provisions allocating financial liability between the host and the organization if the state denies the MERP application due to insufficient data or failure to prove competitive selection.
Hiring/Training
Bid Team Training: Sales and bid teams must be trained to document the "highly competitive selection process" during negotiations. They must secure written confirmation that a Texas site was chosen over a specific non-Texas site.
Data Collection: Finance and operations teams must be trained to segregate tax receipts within the designated market area for the specific event window (30 days prior to 72 hours post-event).
Reporting & Record-Keeping
Affidavits of Selection: You must obtain and file a formal affidavit from the NRA confirming the competitive nature of the site selection.
Visitor Tracking: Implement systems to rigorously track and document out-of-state visitors. Reimbursement is calculated strictly on *incremental* tax revenue generated by non-Texans.
Fees & Costs
Upfront Investment: Budget for the upfront costs of the required economic impact study and legal counsel to prepare the application. These costs are only recoverable if the application is successful and the event generates sufficient tax revenue.
Strategic Ambiguities & Considerations
The legislation authorizes funding for the NRA's "Annual Meetings and Exhibits or another annual event." The statute does not define the scope or size required for "another annual event."
Risk: There is a high probability that the Governor's Office will reject applications for smaller, ancillary NRA events (e.g., board meetings or regional seminars) that do not meet the substantial economic impact thresholds typical of MERP.
Guidance: Do not forecast MERP revenue for minor events until the agency clarifies this definition.
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The National Rifle Association (NRA) holds an annual meeting that attracts tens of thousands of attendees. It brings significant spending on hotels, restaurants, transportation, and local businesses. The increased spending generates more sales tax revenue for the state and local governments. It also creates temporary jobs in hospitality, security, event planning, and other industries.
The attendance numbers at the last three NRA Annual Meetings held in Texas: 87,154 (Dallas 2018), 61,254 (Houston 2022), and 70,127 (Dallas 2024). This is one of the largest�if not the largest�membership association annual meetings in the country. As a point of comparison, the National Association of Realtors annual meeting attendance is approximately 15,000; the American Medical Association 26,500. It rivals attendance at most national and international trade shows as well.
The Houston 2022 Annual Meeting had an economic impact of $23,195,175. Dallas did not report EI numbers for the 2018 or 2024 meeting, but as a point of comparison, we had 13,131 room nights in Houston in 2022 and 14,357 room nights in Dallas in 2024.
Including the NRA Annual Convention in the Texas Major Events Reimbursement Fund would reinforce Texas' pro-second Amendment reputation, boost the economy, and enhance the state's reputation as a business-friendly destination�particularly for industries related to firearms, hunting, and outdoor sports.
As proposed, S.B. 1718 amends current law relating to the eligibility of the National Rifle Association's Annual Meetings and Exhibits or another annual event of the National Rifle Association for funding under the major events reimbursement program.
RULEMAKING AUTHORITY
This bill does not expressly grant any additional rulemaking authority to a state officer, institution, or agency.
SECTION BY SECTION ANALYSIS
SECTION 1. Amends Section 478.0001(3) and (7), Government Code, as follows:
(3) Provides that "event" means and includes any activity related to or associated with certain events, including the National Rifle Association's Annual Meetings and Exhibits or another annual event of the National Rifle Association.
(7) Provides that "site selection organization" means certain entities, including the National Rifle Association of America.
Honorable Phil King, Chair, Senate Committee on Economic Development
FROM:
Jerry McGinty, Director, Legislative Budget Board
IN RE:
SB1718 by Sparks (Relating to the eligibility of the National Rifle Association's Annual Meetings and Exhibits or another annual event of the National Rifle Association for funding under the major events reimbursement program.), As Introduced
No significant fiscal implication to the State is anticipated.
The bill would amend the Government Code to include certain events as eligible for funding under the Major Events Reimbursement Program.
It is assumed that any costs associated with the bill could be absorbed using existing resources.
Local Government Impact
No significant fiscal implication to units of local government is anticipated.
Source Agencies:
300 Trusteed Programs Within the Office of the Governor
LBB Staff:
JMc, RStu, KCu
Related Legislation
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Senate Bill 1718 amends the Texas Government Code to designate the National Rifle Association (NRA) as a "Site Selection Organization," making its annual meetings eligible for the Major Events Reimbursement Program (MERP) effective September 1, 2025. This legislation allows municipalities and venues to access state subsidies to offset costs for hosting NRA events, provided they can prove the event was secured through a highly competitive selection process against an out-of-state site. Implementation Timeline Effective Date: September 1, 2025 Compliance Deadline: Immediate for bid preparation teams targeting late 2025 events; formal applications must be submitted to the Governor's Office no later than 45 days prior to the event.
Q
Who authored SB1718?
SB1718 was authored by Texas Senator Kevin Sparks during the Regular Session.
Q
When was SB1718 signed into law?
SB1718 was signed into law by Governor Greg Abbott on June 20, 2025.
Q
Which agencies enforce SB1718?
SB1718 is enforced by Trusteed Programs Within the Office of the Governor and Texas Economic Development & Tourism Office.
Q
How urgent is compliance with SB1718?
The compliance urgency for SB1718 is rated as "low". Businesses and organizations should review the requirements and timeline to ensure timely compliance.
Q
What is the cost impact of SB1718?
The cost impact of SB1718 is estimated as "low". This may vary based on industry and implementation requirements.
Q
What topics does SB1718 address?
SB1718 addresses topics including amusements, games, sports and weapons.
Legislative data provided by LegiScanLast updated: November 25, 2025
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