Relating to the eligibility of the American Performance Horseman and the American Rodeo for funding under the major events reimbursement program.

Contracts

• Site Selection Contingency: Host cities must ensure the binding agreement with Teton Ridge explicitly states that the site selection organization considered a site outside of Texas before selecting the Texas venue. Without this clause, MERP eligibility is void.
• Vendor Payment Terms: General Contractors and service providers should review "pay-when-paid" clauses. If the LOC intends to use MERP funds to pay vendors, contracts must reflect the delay inherent in the state’s post-event audit process (typically 60-90 days post-event).

Hiring/Training

• Data Collection Staffing: Event staff and ticketing personnel must be trained on zip-code capture protocols. The reimbursement amount is mathematically tied to the number of out-of-state visitors; failure to capture this data at the point of sale or entry results in lost revenue.

Reporting & Record-Keeping

• Fund Segregation: The LOC or host municipality must open a dedicated, separate bank account for event revenue and disbursements. Commingling MERP-related funds with general operating funds is a primary cause for audit failure and clawback.
• Economic Impact Study: An independent economic impact study must be commissioned immediately to establish the projected tax revenue, which sets the cap for potential reimbursement.

Fees & Costs

• Upfront Capital: While the program reimburses costs, the LOC must front the cost of the Economic Impact Study and all event operations. There are no new state fees, but cash-flow modeling must account for the reimbursement lag.