S.F. 2394 DIVISION I 1 IOWA MAJOR EVENTS AND TOURISM PROGRAM AND FUND 2 Section 1. NEW SECTION . 15F.410 Definitions. 3 As used in this subchapter, unless the context otherwise 4 requires: 5 1. “Entity” means an Iowa nonprofit organization established 6 to promote economic development and tourism in an area. 7 2. “Event” means a tourism-oriented athletic contest, 8 convention, music festival, or art festival. 9 3. “Financial assistance” means assistance provided only 10 from the funds, rights, and assets legally available to the 11 authority and includes but is not limited to assistance in the 12 form of grants. 13 4. “Fund” means the Iowa major events and tourism fund 14 established in section 15F.413. 15 5. “Program” means the Iowa major events and tourism program 16 established in section 15F.411. 17 Sec. 2. NEW SECTION . 15F.411 Iowa major events and tourism 18 program —— eligibility. 19 1. The authority shall establish, and, at the discretion 20 of the board, administer the Iowa major events and tourism 21 program to provide financial assistance to eligible entities 22 that support events in this state, or support events involving 23 a geographic region that includes this state, and the event 24 generates large attendance, significant publicity, and has a 25 measurable economic impact on this state. 26 2. a. The authority shall establish eligibility criteria 27 for the program by rule. The eligibility criteria must include 28 all of the following: 29 (1) The entity must currently be involved in the bidding and 30 selection process for the event for which the entity submits 31 an application. 32 (2) The entity must submit an economic analysis of the event 33 with the entity’s application that includes but is not limited 34 to all of the following: 35 -1- LSB 5961XS (10) 90 jm/ko 1/ 11

S.F. 2394 (a) Projected hotel and motel room occupancies during the 1 event. 2 (b) Projected number of event attendees from this state, 3 other states, and other countries. 4 b. Notwithstanding paragraph “a” , an entity shall be deemed 5 eligible for the program if any of the following apply: 6 (1) After a highly competitive bidding and selection 7 process involving potential sites not located in this state, a 8 location in Iowa has been selected for the entity’s event. 9 (2) This state serves as the sole site for the entity’s 10 event. 11 (3) The sole site for the entity’s event is a geographical 12 region that includes this state and one or more contiguous 13 states. 14 3. The program shall be administered for the purpose of 15 awarding financial assistance to an eligible entity for any of 16 the following purposes: 17 a. To pay for or reimburse the costs incurred by the entity 18 to apply or bid for selection as the site for the event. 19 b. To pay for or reimburse the costs incurred by the 20 entity to plan or to conduct the event, including any of the 21 following: 22 (1) Fees charged by a site selection organization as a 23 prerequisite to hosting the event, including but not limited 24 to hosting fees, sanctioning fees, participation fees, or bid 25 fees. 26 (2) Costs for performance bonds or insurance required of the 27 host for hosting the event. 28 (3) Public safety and security expenses. 29 (4) Advertising expenses. 30 (5) Costs to prepare the economic analysis required under 31 subsection 2, paragraph “a” . 32 (6) Costs incurred for transportation and parking services 33 that exceed the revenue generated from providing such services 34 during the event. 35 -2- LSB 5961XS (10) 90 jm/ko 2/ 11

S.F. 2394 (7) Other costs incurred by the entity that are required to 1 host the event. 2 Sec. 3. NEW SECTION . 15F.412 Program —— application, 3 review, and funding. 4 1. An application for financial assistance under the 5 program shall be submitted to the authority. For each 6 application that meets the eligibility criteria under section 7 15F.411, subsection 2, the authority shall conduct a staff 8 evaluation of the application and forward the application and 9 staff evaluation to the board. 10 2. When evaluating an application, the authority shall 11 consider, at a minimum, all of the following: 12 a. The potential impact of the event on the local, regional, 13 and state economies. 14 b. The event’s potential to attract visitors from this 15 state, other states, and other countries. 16 c. The amount of positive advertising or media coverage the 17 event may generate. 18 d. The quality, size, and scope of the event. 19 e. The ratio of public-to-private investment required for 20 the event. 21 3. a. (1) Upon review of the staff evaluation, the board 22 shall make the final funding decision on each application 23 and may approve, deny, defer, or modify each application, in 24 the board’s discretion, to fund as many events as possible 25 with the moneys available. The board and the authority may 26 negotiate with an eligible applicant regarding the details of 27 the applicant’s proposed event and the amount and terms of 28 any financial assistance. In making final funding decisions 29 pursuant to this subsection, the board and the authority shall 30 be exempt from chapter 17A. 31 (2) An application and staff evaluation forwarded to 32 the board under subsection 1 shall remain eligible for 33 consideration by the board under subparagraph (1) for up to two 34 years from the date of receipt of the application by the board. 35 -3- LSB 5961XS (10) 90 jm/ko 3/ 11

S.F. 2394 b. In order to be awarded financial assistance under the 1 program, an applicant must demonstrate the ability to provide 2 matching funds for the event that equal at least fifty percent 3 of the award of financial assistance. 4 Sec. 4. NEW SECTION . 15F.413 Iowa major events and tourism 5 fund. 6 1. a. The authority shall establish an Iowa major events 7 and tourism fund pursuant to section 15.106A, subsection 1, 8 paragraph “o” , for purposes of providing financial assistance 9 as described in this subchapter. The fund may be administered 10 as a revolving fund and shall consist of any moneys transferred 11 to the fund and any moneys appropriated by the general assembly 12 for purposes of this subchapter. 13 b. (1) Notwithstanding section 8.33, moneys appropriated 14 in this section that remain unencumbered or unobligated at the 15 close of the fiscal year shall not revert but shall remain 16 available for expenditure for the purposes designated until the 17 close of the fiscal year following the succeeding fiscal year. 18 (2) Moneys encumbered or obligated pursuant to financial 19 assistance awarded under section 15F.412, subsection 3, shall 20 be disbursed by the authority within five calendar years from 21 the date of encumbrance or obligation, or the moneys shall 22 revert to the state treasury and shall be credited to the funds 23 from which the appropriations were made as provided in section 24 8.33. 25 c. Notwithstanding section 12C.7, subsection 2, interest or 26 earnings on moneys deposited in the fund shall be credited to 27 the fund. 28 2. a. Moneys in the fund are appropriated to the authority 29 for purposes of providing financial assistance under the 30 program. The authority may not use more than five percent of 31 the moneys in the fund at the beginning of each fiscal year for 32 purposes of administrative costs, technical assistance, and 33 other program support. 34 b. An entity that is awarded financial assistance pursuant 35 -4- LSB 5961XS (10) 90 jm/ko 4/ 11

S.F. 2394 to this subchapter is not eligible to receive financial 1 assistance under the sports tourism infrastructure program 2 pursuant to subchapter IV. 3 Sec. 5. CODE EDITOR DIRECTIVE. The Code editor shall 4 designate sections 15F.410 through 15F.413, as enacted in this 5 division of this Act, as subchapter V entitled, “Iowa Major 6 Events and Tourism Program”. 7 DIVISION II 8 APPROPRIATIONS FROM SPORTS WAGERING RECEIPTS FUND 9 Sec. 6. APPROPRIATIONS —— SPORTS WAGERING RECEIPTS 10 FUND. There is appropriated from the sports wagering receipts 11 fund created in section 8.57 to the authority for the fiscal 12 year beginning July 1, 2024, and ending June 30, 2025, the 13 following amount, or so much thereof as is necessary, to be 14 used for the purposes designated: 15 For deposit into the Iowa major events and tourism fund 16 established in section 15F.413, as enacted in division I of 17 this Act: 18 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 15,000,000 19 DIVISION III 20 SPORTS TOURISM MARKETING PROGRAM AND FUND —— REPEAL 21 Sec. 7. Section 15F.401, subsection 1, paragraph a, Code 22 2024, is amended to read as follows: 23 a. The authority shall establish, and, at the direction 24 of the board, shall administer a sports tourism marketing and 25 infrastructure program to provide financial assistance for 26 projects that promote sporting events or for infrastructure 27 projects supporting sporting events for organizations of 28 accredited colleges and universities, professional sporting 29 events, and other sporting events in the state. 30 Sec. 8. Section 15F.401, subsection 1, paragraph b, Code 31 2024, is amended by adding the following new subparagraph: 32 NEW SUBPARAGRAPH . (03) “Fund” means the sports tourism 33 infrastructure program fund established in section 15F.404. 34 Sec. 9. Section 15F.401, subsection 2, paragraph a, 35 -5- LSB 5961XS (10) 90 jm/ko 5/ 11

S.F. 2394 subparagraph (1), Code 2024, is amended by striking the 1 subparagraph. 2 Sec. 10. Section 15F.401, subsection 2, paragraph a, 3 subparagraph (2), Code 2024, is amended to read as follows: 4 (2) A city or county in the state or a public entity that 5 is a convention and visitors bureau or a district may apply to 6 the authority for financial assistance from the sports tourism 7 infrastructure program fund created in section 15F.404 fund for 8 an infrastructure project that actively and directly supports 9 sporting events for accredited colleges and universities, 10 professional sporting events, and other sporting events in the 11 area served by the city, county, or public entity. However, 12 financial assistance shall not be provided to an applicant 13 from the sports tourism infrastructure program fund created in 14 section 15F.404 fund for infrastructure projects located in a 15 reinvestment district as defined and approved by the authority 16 pursuant to section 15J.4 or to applicants that have received a 17 rebate of sales tax imposed and collected by retailers pursuant 18 to section 423.4, subsection 5 . 19 Sec. 11. Section 15F.401, subsection 4, paragraph b, Code 20 2024, is amended to read as follows: 21 b. An applicant under the program shall not receive 22 financial assistance from the sports tourism marketing 23 program fund created in section 15F.403 or the sports tourism 24 infrastructure program fund created in section 15F.404 fund 25 in an amount exceeding fifty percent of the total cost of the 26 project. 27 Sec. 12. Section 15F.401, subsection 5, Code 2024, is 28 amended to read as follows: 29 5. The board shall make final funding decisions on 30 each application and may approve, deny, defer, or modify 31 applications for financial assistance under the sports tourism 32 marketing and infrastructure program, in its discretion, in 33 order to fund as many projects with the moneys available as 34 possible. The board and the authority may negotiate with 35 -6- LSB 5961XS (10) 90 jm/ko 6/ 11

S.F. 2394 applicants regarding the details of projects and the amount and 1 terms of any award. The total amount of financial assistance 2 provided to an applicant from the sports tourism marketing 3 program fund created in section 15F.403 in any one fiscal year 4 shall not exceed five hundred thousand dollars. In making 5 final funding decisions pursuant to this subsection , the board 6 and the authority are exempt from chapter 17A . 7 Sec. 13. Section 15F.401, subsection 6, Code 2024, is 8 amended by striking the subsection and inserting in lieu 9 thereof the following: 10 6. A city, county, or public entity shall not use financial 11 assistance received under the program from the fund as 12 reimbursement for completed projects. 13 Sec. 14. Section 15F.402, subsections 1 and 2, Code 2024, 14 are amended to read as follows: 15 1. Applications for assistance under the sports tourism 16 marketing and infrastructure program established in section 17 15F.401 shall be submitted to the authority. For those 18 applications that meet the eligibility criteria, the authority 19 shall forward the applications to the board and provide a staff 20 review analysis and evaluation to the sports tourism program 21 review committee referred to in subsection 2 and to the board. 22 2. A review committee composed of five members of the 23 board shall review sports tourism marketing and infrastructure 24 program applications forwarded to the board and make 25 recommendations regarding the applications to the authority. 26 The review committee shall consist of members of the board, 27 with one member from each congressional district under section 28 15F.102, subsection 2 , paragraph “a” , and one member from the 29 state at large under section 15F.102, subsection 2 , paragraph 30 “b” . 31 Sec. 15. Section 15F.404, subsection 2, paragraph a, Code 32 2024, is amended to read as follows: 33 a. Moneys in the fund are appropriated to the authority for 34 purposes of providing financial assistance to cities, counties, 35 -7- LSB 5961XS (10) 90 jm/ko 7/ 11

S.F. 2394 and eligible public entities under the sports tourism marketing 1 and infrastructure program established and administered 2 pursuant to this subchapter . 3 Sec. 16. REPEAL. Section 15F.403, Code 2024, is repealed. 4 Sec. 17. TRANSFER OF MONEYS. On the effective date of 5 this division of this Act, any moneys remaining in the sports 6 tourism marketing program fund in section 15F.403, Code 2024, 7 shall be transferred to the Iowa major events tourism fund 8 established in section 15F.413, as enacted in division I of 9 this Act. 10 EXPLANATION 11 The inclusion of this explanation does not constitute agreement with 12 the explanation’s substance by the members of the general assembly. 13 This bill relates to economic development by establishing 14 the Iowa major events and tourism program and fund modifying 15 the sports tourism and marketing infrastructure program, and 16 making appropriations. 17 DIVISION I —— IOWA MAJOR EVENTS AND TOURISM PROGRAM AND 18 FUND. The bill requires the economic development authority 19 (authority) to establish an Iowa major events and tourism 20 program (program) and an Iowa major events and tourism fund 21 (fund), and at the discretion of the enhance Iowa board (board) 22 the authority shall administer the program. 23 The purpose of the program is to provide financial 24 assistance including but not limited to grants to an entity 25 supporting an event in this state, or an event involving a 26 geographic region that includes this state, and the event 27 generates large attendance, significant publicity, and 28 measurable economic impact on this state. 29 The bill defines “entity” to mean an Iowa nonprofit 30 organization established to promote economic development 31 and tourism in an area. The bill defines “event” to mean a 32 tourism-oriented athletic contest, convention, music festival, 33 or art festival. 34 The bill requires the authority to establish eligibility 35 -8- LSB 5961XS (10) 90 jm/ko 8/ 11

S.F. 2394 criteria for the program by rule. The eligibility criteria 1 must include the requirement that the entity be currently 2 involved in the bidding and selection process for the event the 3 application is based upon; and that the entity must submit an 4 economic analysis of the event with the entity’s application 5 that includes but is not limited to projected hotel and motel 6 room occupancies, and the projected number of visitors to the 7 event. 8 An application is deemed to meet all eligibility criteria 9 if the state is selected as the event site after a highly 10 competitive bidding and selection process involving sites 11 in other states, if this state serves as the sole site for 12 the event, or if the sole site for the event involves a 13 geographical region that includes this state and contiguous 14 states. 15 The authority shall administer the program for the purpose 16 of awarding financial assistance to an eligible entity 17 to pay for or reimburse costs associated with the event 18 including costs to apply or bid for the site of the event, 19 planning costs, fees, insurance, public safety and security, 20 advertising, preparation of the economic analysis, and 21 transportation and parking services during the event. 22 If an entity’s application meets the eligibility criteria 23 established in the bill, the staff of the authority must 24 perform an evaluation of the application and forward the 25 application and evaluation to the board. In evaluating an 26 application, the bill requires the authority to consider the 27 impact on the economy, the potential to attract visitors, 28 advertising and media coverage, public-to-private investment 29 ratios, and the quality, size, and scope of the event. 30 Upon review of the staff evaluation, the bill specifies the 31 board may approve, deny, defer, or modify the application. The 32 bill allows the board and the authority to negotiate with the 33 entity regarding the details of the event and the amount and 34 terms of the financial assistance. 35 -9- LSB 5961XS (10) 90 jm/ko 9/ 11

S.F. 2394 An application submitted to the authority under the bill 1 remains eligible for consideration by the board for up to two 2 years from the date of receipt of the application by the board. 3 The bill requires applicants to demonstrate the ability to 4 provide matching funds equal to at least 50 percent of the 5 financial assistance awarded to the applicant. 6 The bill requires the authority to establish a fund for 7 the purposes of providing financial assistance under the 8 program. The bill specifies that the authority may administer 9 the fund as a revolving fund. Moneys in the fund that remain 10 unencumbered or unobligated at the close of the fiscal year do 11 not revert and remain available until the close of the fiscal 12 year following the succeeding fiscal year. Moneys in the 13 fund that are encumbered or obligated pursuant to financial 14 assistance awarded under the program shall be disbursed by 15 the authority within five years of the date of encumbrance or 16 obligation, or the moneys shall revert to the state treasury. 17 Moneys in the fund are appropriated to the authority to provide 18 financial assistance to an entity under the program. 19 An entity that is awarded financial assistance pursuant to 20 the bill is not eligible to receive financial assistance under 21 the sports tourism infrastructure program. 22 DIVISION II —— APPROPRIATIONS FROM SPORTS WAGERING RECEIPTS 23 FUND. In FY 2024-2025, the bill appropriates $15 million from 24 the sports receipts wagering fund to the Iowa major tourism 25 events and tourism fund for the purpose of providing financial 26 assistance to an eligible applicant as described in the bill. 27 DIVISION III —— SPORTS TOURISM MARKETING PROGRAM AND FUND 28 —— REPEAL. The bill modifies the sports tourism marketing 29 and infrastructure program by repealing the sports tourism 30 marketing program and fund. The bill retains the sports 31 tourism infrastructure program and fund. Upon the effective 32 date of the division, the bill transfers the remaining moneys 33 in the sports tourism marketing program fund to the Iowa major 34 events and tourism program fund established in the bill for the 35 -10- LSB 5961XS (10) 90 jm/ko 10/ 11