SF 2394 (LSB 5961XS (10) 90)

SENATE FILE 2394

BY  KOELKER

A BILL FOR

An Act relating to economic development by establishing the Iowa major events and tourism program and fund, modifying the sports tourism and marketing infrastructure program, and making appropriations.
BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA:

DIVISION I
IOWA MAJOR EVENTS AND TOURISM PROGRAM AND FUND

    Section 1.  NEW SECTION.  15F.410  Definitions.
   As used in this subchapter, unless the context otherwise requires:
   1.  “Entity” means an Iowa nonprofit organization established to promote economic development and tourism in an area.
   2.  “Event” means a tourism-oriented athletic contest, convention, music festival, or art festival.
   3.  “Financial assistance” means assistance provided only from the funds, rights, and assets legally available to the authority and includes but is not limited to assistance in the form of grants.
   4.  “Fund” means the Iowa major events and tourism fund established in section 15F.413.
   5.  “Program” means the Iowa major events and tourism program established in section 15F.411.
    Sec. 2.  NEW SECTION.  15F.411  Iowa major events and tourism program —— eligibility.
   1.  The authority shall establish, and, at the discretion of the board, administer the Iowa major events and tourism program to provide financial assistance to eligible entities that support events in this state, or support events involving a geographic region that includes this state, and the event generates large attendance, significant publicity, and has a measurable economic impact on this state.
   2.  a.  The authority shall establish eligibility criteria for the program by rule. The eligibility criteria must include all of the following:
   (1)  The entity must currently be involved in the bidding and selection process for the event for which the entity submits an application.
   (2)  The entity must submit an economic analysis of the event with the entity’s application that includes but is not limited to all of the following:
   (a)  Projected hotel and motel room occupancies during the event.
   (b)  Projected number of event attendees from this state, other states, and other countries.
   b.  Notwithstanding paragraph “a”, an entity shall be deemed eligible for the program if any of the following apply:
   (1)  After a highly competitive bidding and selection process involving potential sites not located in this state, a location in Iowa has been selected for the entity’s event.
   (2)  This state serves as the sole site for the entity’s event.
   (3)  The sole site for the entity’s event is a geographical region that includes this state and one or more contiguous states.
   3.  The program shall be administered for the purpose of awarding financial assistance to an eligible entity for any of the following purposes:
   a.  To pay for or reimburse the costs incurred by the entity to apply or bid for selection as the site for the event.
   b.  To pay for or reimburse the costs incurred by the entity to plan or to conduct the event, including any of the following:
   (1)  Fees charged by a site selection organization as a prerequisite to hosting the event, including but not limited to hosting fees, sanctioning fees, participation fees, or bid fees.
   (2)  Costs for performance bonds or insurance required of the host for hosting the event.
   (3)  Public safety and security expenses.
   (4)  Advertising expenses.
   (5)  Costs to prepare the economic analysis required under subsection 2, paragraph “a”.
   (6)  Costs incurred for transportation and parking services that exceed the revenue generated from providing such services during the event.
   (7)  Other costs incurred by the entity that are required to host the event.
    Sec. 3.  NEW SECTION.  15F.412  Program —— application, review, and funding.
   1.  An application for financial assistance under the program shall be submitted to the authority. For each application that meets the eligibility criteria under section 15F.411, subsection 2, the authority shall conduct a staff evaluation of the application and forward the application and staff evaluation to the board.
   2.  When evaluating an application, the authority shall consider, at a minimum, all of the following:
   a.  The potential impact of the event on the local, regional, and state economies.
   b.  The event’s potential to attract visitors from this state, other states, and other countries.
   c.  The amount of positive advertising or media coverage the event may generate.
   d.  The quality, size, and scope of the event.
   e.  The ratio of public-to-private investment required for the event.
   3.  a.  (1)  Upon review of the staff evaluation, the board shall make the final funding decision on each application and may approve, deny, defer, or modify each application, in the board’s discretion, to fund as many events as possible with the moneys available. The board and the authority may negotiate with an eligible applicant regarding the details of the applicant’s proposed event and the amount and terms of any financial assistance. In making final funding decisions pursuant to this subsection, the board and the authority shall be exempt from chapter 17A.
   (2)  An application and staff evaluation forwarded to the board under subsection 1 shall remain eligible for consideration by the board under subparagraph (1) for up to two years from the date of receipt of the application by the board.
   b.  In order to be awarded financial assistance under the program, an applicant must demonstrate the ability to provide matching funds for the event that equal at least fifty percent of the award of financial assistance. 
    Sec. 4.  NEW SECTION.  15F.413  Iowa major events and tourism fund.
   1.  a.  The authority shall establish an Iowa major events and tourism fund pursuant to section 15.106A, subsection 1, paragraph “o”, for purposes of providing financial assistance as described in this subchapter. The fund may be administered as a revolving fund and shall consist of any moneys transferred to the fund and any moneys appropriated by the general assembly for purposes of this subchapter.
   b.  (1)  Notwithstanding section 8.33, moneys appropriated in this section that remain unencumbered or unobligated at the close of the fiscal year shall not revert but shall remain available for expenditure for the purposes designated until the close of the fiscal year following the succeeding fiscal year.
   (2)  Moneys encumbered or obligated pursuant to financial assistance awarded under section 15F.412, subsection 3, shall be disbursed by the authority within five calendar years from the date of encumbrance or obligation, or the moneys shall revert to the state treasury and shall be credited to the funds from which the appropriations were made as provided in section 8.33.
   c.  Notwithstanding section 12C.7, subsection 2, interest or earnings on moneys deposited in the fund shall be credited to the fund.
   2.  a.  Moneys in the fund are appropriated to the authority for purposes of providing financial assistance under the program. The authority may not use more than five percent of the moneys in the fund at the beginning of each fiscal year for purposes of administrative costs, technical assistance, and other program support.
   b.  An entity that is awarded financial assistance pursuant to this subchapter is not eligible to receive financial assistance under the sports tourism infrastructure program pursuant to subchapter IV.
    Sec. 5.  CODE EDITOR DIRECTIVE.  The Code editor shall designate sections 15F.410 through 15F.413, as enacted in this division of this Act, as subchapter V entitled, “Iowa Major Events and Tourism Program”.
DIVISION II
APPROPRIATIONS FROM SPORTS WAGERING RECEIPTS FUND

    Sec. 6.  APPROPRIATIONS —— SPORTS WAGERING RECEIPTS FUND.  There is appropriated from the sports wagering receipts fund created in section 8.57 to the authority for the fiscal year beginning July 1, 2024, and ending June 30, 2025, the following amount, or so much thereof as is necessary, to be used for the purposes designated:
   For deposit into the Iowa major events and tourism fund established in section 15F.413, as enacted in division I of this Act:
   ...................................................................... $ 15,000,000
DIVISION III
SPORTS TOURISM MARKETING PROGRAM AND FUND —— REPEAL

    Sec. 7.  Section 15F.401, subsection 1, paragraph a, Code 2024, is amended to read as follows:
   a.  The authority shall establish, and, at the direction of the board, shall administer a sports tourism marketing and infrastructure program to provide financial assistance for projects that promote sporting events or for infrastructure projects supporting sporting events for organizations of accredited colleges and universities, professional sporting events, and other sporting events in the state.
    Sec. 8.  Section 15F.401, subsection 1, paragraph b, Code 2024, is amended by adding the following new subparagraph:
   NEW SUBPARAGRAPH.  (03)  “Fund” means the sports tourism infrastructure program fund established in section 15F.404.
    Sec. 9.  Section 15F.401, subsection 2, paragraph a, subparagraph (1), Code 2024, is amended by striking the subparagraph.
    Sec. 10.  Section 15F.401, subsection 2, paragraph a, subparagraph (2), Code 2024, is amended to read as follows:
   (2)  A city or county in the state or a public entity that is a convention and visitors bureau or a district may apply to the authority for financial assistance from the sports tourism infrastructure program fund created in section 15F.404 fund for an infrastructure project that actively and directly supports sporting events for accredited colleges and universities, professional sporting events, and other sporting events in the area served by the city, county, or public entity. However, financial assistance shall not be provided to an applicant from the sports tourism infrastructure program fund created in section 15F.404 fund for infrastructure projects located in a reinvestment district as defined and approved by the authority pursuant to section 15J.4 or to applicants that have received a rebate of sales tax imposed and collected by retailers pursuant to section 423.4, subsection 5.
    Sec. 11.  Section 15F.401, subsection 4, paragraph b, Code 2024, is amended to read as follows:
   b.  An applicant under the program shall not receive financial assistance from the sports tourism marketing program fund created in section 15F.403 or the sports tourism infrastructure program fund created in section 15F.404 fund in an amount exceeding fifty percent of the total cost of the project.
    Sec. 12.  Section 15F.401, subsection 5, Code 2024, is amended to read as follows:
   5.  The board shall make final funding decisions on each application and may approve, deny, defer, or modify applications for financial assistance under the sports tourism marketing and infrastructure program, in its discretion, in order to fund as many projects with the moneys available as possible. The board and the authority may negotiate with applicants regarding the details of projects and the amount and terms of any award. The total amount of financial assistance provided to an applicant from the sports tourism marketing program fund created in section 15F.403 in any one fiscal year shall not exceed five hundred thousand dollars. In making final funding decisions pursuant to this subsection, the board and the authority are exempt from chapter 17A. 
    Sec. 13.  Section 15F.401, subsection 6, Code 2024, is amended by striking the subsection and inserting in lieu thereof the following:
   6.  A city, county, or public entity shall not use financial assistance received under the program from the fund as reimbursement for completed projects.
    Sec. 14.  Section 15F.402, subsections 1 and 2, Code 2024, are amended to read as follows:
   1.  Applications for assistance under the sports tourism marketing and infrastructure program established in section 15F.401 shall be submitted to the authority. For those applications that meet the eligibility criteria, the authority shall forward the applications to the board and provide a staff review analysis and evaluation to the sports tourism program review committee referred to in subsection 2 and to the board.
   2.  A review committee composed of five members of the board shall review sports tourism marketing and infrastructure program applications forwarded to the board and make recommendations regarding the applications to the authority. The review committee shall consist of members of the board, with one member from each congressional district under section 15F.102, subsection 2, paragraph “a”, and one member from the state at large under section 15F.102, subsection 2, paragraph “b”.
    Sec. 15.  Section 15F.404, subsection 2, paragraph a, Code 2024, is amended to read as follows:
   a.  Moneys in the fund are appropriated to the authority for purposes of providing financial assistance to cities, counties, and eligible public entities under the sports tourism marketing and infrastructure program established and administered pursuant to this subchapter.
    Sec. 16.  REPEAL.  Section 15F.403, Code 2024, is repealed.
    Sec. 17.  TRANSFER OF MONEYS.  On the effective date of this division of this Act, any moneys remaining in the sports tourism marketing program fund in section 15F.403, Code 2024, shall be transferred to the Iowa major events tourism fund established in section 15F.413, as enacted in division I of this Act.
EXPLANATION
The inclusion of this explanation does not constitute agreement with
the explanation’s substance by the members of the general assembly.
   This bill relates to economic development by establishing the Iowa major events and tourism program and fund modifying the sports tourism and marketing infrastructure program, and making appropriations.
   DIVISION I —— IOWA MAJOR EVENTS AND TOURISM PROGRAM AND FUND. The bill requires the economic development authority (authority) to establish an Iowa major events and tourism program (program) and an Iowa major events and tourism fund (fund), and at the discretion of the enhance Iowa board (board) the authority shall administer the program.
   The purpose of the program is to provide financial assistance including but not limited to grants to an entity supporting an event in this state, or an event involving a geographic region that includes this state, and the event generates large attendance, significant publicity, and measurable economic impact on this state.
   The bill defines “entity” to mean an Iowa nonprofit organization established to promote economic development and tourism in an area. The bill defines “event” to mean a tourism-oriented athletic contest, convention, music festival, or art festival.
   The bill requires the authority to establish eligibility criteria for the program by rule. The eligibility criteria must include the requirement that the entity be currently involved in the bidding and selection process for the event the application is based upon; and that the entity must submit an economic analysis of the event with the entity’s application that includes but is not limited to projected hotel and motel room occupancies, and the projected number of visitors to the event.
   An application is deemed to meet all eligibility criteria if the state is selected as the event site after a highly competitive bidding and selection process involving sites in other states, if this state serves as the sole site for the event, or if the sole site for the event involves a geographical region that includes this state and contiguous states.
   The authority shall administer the program for the purpose of awarding financial assistance to an eligible entity to pay for or reimburse costs associated with the event including costs to apply or bid for the site of the event, planning costs, fees, insurance, public safety and security, advertising, preparation of the economic analysis, and transportation and parking services during the event.
   If an entity’s application meets the eligibility criteria established in the bill, the staff of the authority must perform an evaluation of the application and forward the application and evaluation to the board. In evaluating an application, the bill requires the authority to consider the impact on the economy, the potential to attract visitors, advertising and media coverage, public-to-private investment ratios, and the quality, size, and scope of the event.
   Upon review of the staff evaluation, the bill specifies the board may approve, deny, defer, or modify the application. The bill allows the board and the authority to negotiate with the entity regarding the details of the event and the amount and terms of the financial assistance.
   An application submitted to the authority under the bill remains eligible for consideration by the board for up to two years from the date of receipt of the application by the board.
   The bill requires applicants to demonstrate the ability to provide matching funds equal to at least 50 percent of the financial assistance awarded to the applicant.
   The bill requires the authority to establish a fund for the purposes of providing financial assistance under the program. The bill specifies that the authority may administer the fund as a revolving fund. Moneys in the fund that remain unencumbered or unobligated at the close of the fiscal year do not revert and remain available until the close of the fiscal year following the succeeding fiscal year. Moneys in the fund that are encumbered or obligated pursuant to financial assistance awarded under the program shall be disbursed by the authority within five years of the date of encumbrance or obligation, or the moneys shall revert to the state treasury. Moneys in the fund are appropriated to the authority to provide financial assistance to an entity under the program.
    An entity that is awarded financial assistance pursuant to the bill is not eligible to receive financial assistance under the sports tourism infrastructure program.
   DIVISION II —— APPROPRIATIONS FROM SPORTS WAGERING RECEIPTS FUND. In FY 2024-2025, the bill appropriates $15 million from the sports receipts wagering fund to the Iowa major tourism events and tourism fund for the purpose of providing financial assistance to an eligible applicant as described in the bill.
   DIVISION III —— SPORTS TOURISM MARKETING PROGRAM AND FUND —— REPEAL. The bill modifies the sports tourism marketing and infrastructure program by repealing the sports tourism marketing program and fund. The bill retains the sports tourism infrastructure program and fund. Upon the effective date of the division, the bill transfers the remaining moneys in the sports tourism marketing program fund to the Iowa major events and tourism program fund established in the bill for the uses described in the bill.