House Study Bill 728 - Introduced HOUSE FILE _____ BY (PROPOSED COMMITTEE ON ECONOMIC GROWTH AND TECHNOLOGY BILL BY CHAIRPERSON SORENSEN) A BILL FOR An Act relating to the establishment of programs administered 1 by the economic development authority, including the 2 interactive digital entertainment program, game studio 3 investment matching program, game industry fellowship 4 program, and game studio grant program, and making 5 appropriations. 6 BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA: 7 TLSB 5309YC (5) 91 nls/ko

H.F. _____ DIVISION I 1 INTERACTIVE DIGITAL ENTERTAINMENT PROGRAM, GAME STUDIO 2 INVESTMENT MATCHING PROGRAM, GAME INDUSTRY FELLOWSHIP PROGRAM, 3 AND GAME STUDIO GRANT PROGRAM 4 Section 1. NEW SECTION . 15.540 Interactive digital 5 entertainment tax credit program. 6 1. As used in this section: 7 a. “Fund” means the interactive digital entertainment 8 program fund. 9 b. “Program” means the interactive digital entertainment 10 program. 11 c. “Qualified developer” means a person that develops and 12 produces qualified productions. 13 d. “Qualified expenditures” means labor, goods, services, 14 and production costs directly related to a qualified 15 production. 16 e. “Qualified production” means interactive media or video 17 games developed and produced in the state. 18 2. a. The authority shall establish and administer an 19 interactive digital entertainment program for the purpose of 20 awarding tax credits to qualified developers for qualified 21 expenditures. 22 b. The authority shall adopt rules to establish eligibility 23 criteria for a qualified developer to participate in the 24 program and the criteria must include all of the following: 25 (1) The qualified developer must maintain a physical 26 presence in the state. 27 (2) The qualified developer must have a minimum payroll in 28 the state of two hundred fifty thousand dollars. 29 3. An application for the program shall be submitted by a 30 qualified developer to the authority for approval in the form 31 and manner prescribed by the authority. 32 4. a. If a qualified developer’s application is approved 33 by the authority, the maximum that shall be awarded to the 34 qualified developer under the program is a tax credit equal 35 -1- LSB 5309YC (5) 91 nls/ko 1/ 15

H.F. _____ to thirty percent of the qualified developer’s documented 1 qualified expenditures, except as provided in paragraph “b” . 2 b. For qualified productions that display a “made in Iowa” 3 logo approved by the authority, in addition to the tax credit 4 under paragraph “a” , a qualified developer may be awarded an 5 additional tax credit equal to five percent of the qualified 6 developer’s documented qualified expenditures. 7 c. Prior to the authority issuing a tax credit certificate 8 under the program, a qualified developer shall submit 9 documentation to the authority for all qualified expenditures 10 incurred following approval of the qualified developer’s 11 application for the program. 12 5. The interactive digital entertainment program tax credit 13 shall be allowed against taxes imposed under chapter 422, 14 subchapter II, III, or V, and chapter 432. 15 6. An interactive digital entertainment program fund 16 is created in the state treasury under the control of the 17 authority. The fund shall consist of moneys appropriated to 18 the authority and any other moneys available to, obtained by, 19 or accepted by the authority for placement in the fund. The 20 fund shall be used to award tax credits under the program. 21 7. The aggregate value of all tax credits awarded by the 22 authority and claimed by qualified developers under this 23 section shall not exceed twenty million dollars in any one 24 fiscal year. 25 8. Notwithstanding section 8.33, moneys in the fund 26 that remain unencumbered or unobligated at the close of the 27 fiscal year shall not revert but shall remain available for 28 expenditure for the purposes designated until the close of 29 the succeeding fiscal year. Notwithstanding section 12C.7, 30 interest or earnings on moneys in the fund shall be credited 31 to the fund. 32 9. The authority shall adopt rules pursuant to chapter 17A 33 to administer this section. 34 Sec. 2. NEW SECTION . 15.541 Game studio investment matching 35 -2- LSB 5309YC (5) 91 nls/ko 2/ 15

H.F. _____ program. 1 1. For purposes of this section, “private investment” means 2 an investment from a publisher advance, venture capital, angel 3 investor, or other source of private funds. 4 2. The authority shall establish and administer a game 5 studio investment matching program. The authority may provide 6 a forgivable loan to an investor that matches dollar for dollar 7 a private investment in an Iowa-based game development company. 8 The authority shall not provide forgivable loans to investors 9 in any one Iowa-based game development company that exceed an 10 aggregate value of twenty million dollars per fiscal year. 11 3. Applications for the game studio investment matching 12 program shall be submitted to the authority in the form and 13 manner prescribed by the authority by rule. 14 4. a. An investor shall not be required to make a payment 15 on the loan if the private investment is in an Iowa-based 16 game development company that meets all of the following 17 requirements for a minimum of five consecutive years from the 18 date a forgivable loan is provided to the investor, at which 19 time the forgivable loan shall be forgiven in its entirety: 20 (1) Seventy-five percent of the Iowa-based game development 21 company’s employees reside in the state. 22 (2) The Iowa-based game development company is physically 23 headquartered in the state. 24 b. If the Iowa-based game development company fails to meet 25 the requirements of paragraph “a” the investor shall repay the 26 forgivable loan in an amount proportional to the amount of time 27 the Iowa-based game development company was not in compliance 28 with paragraph “a” , as determined by the authority by rule. 29 5. The authority shall adopt rules pursuant to chapter 17A 30 to administer this section. 31 6. This section applies to private investments in 32 Iowa-based game development companies made on or after July 1, 33 2026. 34 Sec. 3. NEW SECTION . 15.542 Game industry fellowship 35 -3- LSB 5309YC (5) 91 nls/ko 3/ 15

H.F. _____ program. 1 1. As used in this section: 2 a. “Professional” means an individual who does not reside or 3 work in the state who meets all of the following requirements: 4 (1) The individual has worked in senior leadership roles in 5 the video game industry for a minimum of ten consecutive years. 6 (2) The individual has shipped at least three commercial 7 video games while working in a senior leadership role. A 8 senior leadership role includes but is not limited to creative 9 director, studio head, lead developer, or executive producer. 10 b. “Program” means the game industry fellowship program. 11 2. a. The authority shall establish and administer a 12 game industry fellowship program for the purpose of providing 13 two-year fellowships for professionals to relocate to the 14 state. 15 b. The authority shall administer the program and provide 16 annual grants for a minimum of ten and a maximum of fifteen 17 fellowships. 18 3. a. A professional awarded a grant under the program 19 shall receive a grant of no less than one hundred fifty 20 thousand dollars and no more than two hundred thousand dollars 21 for each year of the two-year fellowship. 22 b. A grant must only be used by a professional for any of 23 the following: 24 (1) Expenses associated with the professional relocating 25 to the state. 26 (2) As compensation for the professional to work in any of 27 the following areas for the two-year fellowship period: 28 (a) Teaching at community colleges, and institutions 29 governed by the state board of regents pursuant to section 30 262.7, which may include but is not limited to developing 31 curricula for video game design, leading workshops related to 32 video game development, and mentoring students involved in 33 programs related to video game development. 34 (b) Consulting with game start-up companies and studios in 35 -4- LSB 5309YC (5) 91 nls/ko 4/ 15

H.F. _____ the state on game development, studio management, fundraising 1 strategy, and team building. Fellows shall not provide more 2 than a combined fifty hours of consulting to each start-up 3 company or studio in the state. 4 (c) Industry building, including but not limited to 5 organizing game jams, speaking at conferences, judging 6 competitions, and serving on advisory boards. 7 4. A professional shall not distribute fellowship grant 8 funds to a family member or political organization, or use 9 fellowship grant funds for a personal business venture. 10 5. a. To be eligible for the program, a professional must 11 commit to residing in the state and working in the video game 12 industry for a minimum of one additional year following the 13 end of the two-year fellowship. A professional that fails 14 to uphold this commitment shall repay the grant in an amount 15 proportional to the amount of the grant the professional used 16 for expenses associated with relocating to the state. 17 b. Prior to applying for the program, a professional must 18 disclose any potential conflicts of interest to the authority. 19 c. A review board consisting of representatives from the 20 authority, community colleges, institutions governed by the 21 state board of regents pursuant to section 262.7, and video 22 game companies in the state shall review applications for the 23 program and select professionals for participation in the 24 program. Members of the review board shall disclose to the 25 authority any conflicts of interest. A member of the review 26 board shall not vote on a program application submitted by a 27 professional that works for a company in which the member or 28 a family member holds a financial interest, or to which the 29 member or a family member has a family connection. 30 6. A professional awarded a grant under the program shall 31 submit quarterly reports to the authority that document the 32 professional’s work activities pursuant to subsection 3, 33 paragraph “b” , subparagraph (2), and independent auditors shall 34 review the quarterly reports and verify the professional’s 35 -5- LSB 5309YC (5) 91 nls/ko 5/ 15

H.F. _____ compliance with the program requirements. If a professional 1 is found to be in violation of subsection 3, paragraph “b” , 2 subparagraph (2), the professional shall be required to repay 3 the grant to the authority. 4 Sec. 4. NEW SECTION . 15.543 Game studio grant program. 5 1. As used in this section: 6 a. “Eligible game studio” means a game studio that meets all 7 of the following requirements: 8 (1) Seventy-five percent of the game studio’s employees 9 reside in the state. 10 (2) The game studio is headquartered in the state. 11 b. “Professional” means a senior-level leader in the game 12 studio industry. 13 c. “Program” means the game studio grant program. 14 2. A game studio grant program is established to provide 15 grants to eligible game studios for the recruitment of 16 professionals. The authority shall administer the program. 17 3. An eligible game studio may apply for a game studio 18 grant under the program at the time that the eligible game 19 studio identifies a professional as a candidate for a position 20 with the eligible game studio that meets all of the following 21 requirements: 22 a. The position for which the professional applied is a 23 director-level position or higher, including but not limited 24 to a creative director, studio director, lead developer, art 25 director, or technical director. 26 b. The professional does not reside or work in the state, 27 the professional has worked outside of the state for a minimum 28 of two consecutive years in a position listed under paragraph 29 “a” prior to applying for the position, and the professional 30 will relocate to the state to work in the position. 31 c. The salary for the position is no less than one hundred 32 twenty thousand dollars. 33 d. The professional, as part of the hiring process, commits 34 to residing and working in the state for a minimum of three 35 -6- LSB 5309YC (5) 91 nls/ko 6/ 15

H.F. _____ consecutive years. 1 4. Prior to being awarded a grant, an eligible game studio 2 accepted into the program shall provide to the authority all 3 of the following: 4 a. A copy of the offer letter and employment contract 5 associated with the position for which the eligible game studio 6 applied to the program. 7 b. Verification that the professional for which the eligible 8 game studio applied to the program worked outside of the state 9 for a minimum of two consecutive years in a position listed in 10 subsection 3, paragraph “a” , prior to applying for the position 11 and has relocated to the state. 12 5. An eligible game studio accepted into the program may 13 be awarded a grant in an amount of no less than fifty thousand 14 dollars and no more than seventy-five thousand dollars to be 15 used for any of the following: 16 a. Relocation expenses for the professional, in an amount 17 not to exceed fifteen thousand dollars. 18 b. Providing housing assistance to the professional for the 19 first year that the professional resides in the state, in an 20 amount not to exceed twenty thousand dollars. 21 c. Providing a salary differential to match market rates, in 22 an amount not to exceed forty thousand dollars. 23 6. a. If a professional hired by an eligible business 24 under the program does not reside and work in the state for the 25 entire consecutive three-year period, the professional shall be 26 required to repay the amount of the grant that the professional 27 received to the authority. 28 b. If a professional hired by an eligible business under the 29 program does not reside and work in the state for the entire 30 consecutive three-year period, the eligible game studio shall 31 be required to repay the amount of the unused grant funds that 32 the game studio received to the authority. 33 c. A game studio that uses a grant for purposes that do not 34 comply with subsection 5 shall be required to repay the grant 35 -7- LSB 5309YC (5) 91 nls/ko 7/ 15

H.F. _____ to the authority. 1 7. a. The authority shall review an application for the 2 program within thirty calendar days after the date of receipt 3 of the application. 4 b. The authority shall not award a grant to an eligible 5 business for the hire of a founder or executive of a game 6 studio, or the relative of a founder or executive of a game 7 studio. 8 8. The authority shall not award an eligible game studio 9 more than three grants over a period of five consecutive years. 10 9. A game studio grant shall be awarded and payable to an 11 eligible game studio in installments as follows: 12 a. Upon hire of a professional, in an amount equal to forty 13 percent of the grant amount. 14 b. After the professional completes one year of employment, 15 in an amount equal to thirty percent of the grant amount. 16 c. After the professional completes two years of employment, 17 in an amount equal to thirty percent of the grant amount. 18 10. The authority shall conduct an annual audit of an 19 eligible game studio each year that the eligible game studio 20 receives grant funds under the program to ensure that the 21 position for which the eligible game studio received a grant is 22 a legitimate director-level or higher position as required by 23 subsection 3, paragraph “a” , and the position’s title was not 24 inflated for purposes of receiving a grant. An eligible game 25 studio found to have improperly inflated a position title in 26 order to receive a grant shall be required to repay the amount 27 of the grant that the eligible game studio received to the 28 authority, and shall be permanently ineligible for the program. 29 Sec. 5. NEW SECTION . 15.544 Rules. 30 The authority shall adopt rules pursuant to chapter 17A to 31 administer this part. 32 Sec. 6. NEW SECTION . 15.545 Annual reports. 33 1. For the fiscal year beginning on July 1, 2026, the 34 authority shall submit a report to the general assembly by 35 -8- LSB 5309YC (5) 91 nls/ko 8/ 15

H.F. _____ June 30, 2027, and by June 30 for each fiscal year thereafter, 1 that summarizes for the immediately preceding fiscal year 2 participation in the interactive digital entertainment program 3 under section 15.540, the number of jobs created by the 4 program, the economic output of the program, and the fiscal 5 performance of the program. 6 2. For each fiscal year that moneys are appropriated by 7 the general assembly to the authority for purposes of the game 8 studio investment matching program under section 15.541, the 9 authority shall submit a report to the general assembly by June 10 30 that summarizes, for the immediately preceding fiscal year, 11 participation in the game studio investment matching program, 12 the number of jobs created by the program, the economic output 13 of the program, and the fiscal performance of the program. 14 3. For each fiscal year that moneys are appropriated by 15 the general assembly to the authority for purposes of the 16 game industry fellowship program under section 15.542, the 17 authority shall submit a report to the general assembly by June 18 30 that summarizes, for the immediately preceding fiscal year, 19 participation in the game industry fellowship program, the 20 number of jobs created by the program, the economic output of 21 the program, and the fiscal performance of the program. 22 4. For each fiscal year that moneys are appropriated by 23 the general assembly to the authority for purposes of the 24 game studio grant program under section 15.543, the authority 25 shall submit a report to the general assembly by June 30 26 that summarizes, for the immediately preceding fiscal year, 27 participation in the game studio grant program, the number 28 of jobs created by the program, the economic output of the 29 program, and the fiscal performance of the program. 30 Sec. 7. CODE EDITOR DIRECTIVE. The Code editor is directed 31 to designate section 15.540 through section 15.545, as enacted 32 in this division of this Act, as part 37 of subchapter II. 33 DIVISION II 34 APPROPRIATIONS 35 -9- LSB 5309YC (5) 91 nls/ko 9/ 15

H.F. _____ Sec. 8. INTERACTIVE DIGITAL ENTERTAINMENT PROGRAM FUND —— 1 FY 2026-2027. There is appropriated from the general fund of 2 the state to the economic development authority for the fiscal 3 year beginning July 1, 2026, and ending June 30, 2027, the 4 following amount, or so much thereof as is necessary, to be 5 used for the purposes designated: 6 For deposit in the interactive digital entertainment program 7 fund created in section 15.540: 8 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 20,000,000 9 Notwithstanding section 8.33, moneys appropriated in this 10 section that remain unencumbered or unobligated at the close of 11 the fiscal year shall not revert but shall remain available for 12 expenditure for the purposes designated until the close of the 13 succeeding fiscal year. 14 Sec. 9. GAME STUDIO INVESTMENT MATCHING PROGRAM —— FY 15 2026-2027. There is appropriated from the general fund of the 16 state to the economic development authority for the fiscal year 17 beginning July 1, 2026, and ending June 30, 2027, the following 18 amount, or so much thereof as is necessary, to be used for the 19 purposes designated: 20 For providing forgivable loans from the game studio 21 investment matching program established in section 15.541: 22 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 10,000,000 23 Sec. 10. GAME INDUSTRY FELLOWSHIP PROGRAM —— FY 24 2026-2027. There is appropriated from the general fund of the 25 state to the economic development authority for the fiscal year 26 beginning July 1, 2026, and ending June 30, 2027, the following 27 amounts, or so much thereof as is necessary, to be used for the 28 purpose designated: 29 For providing fellowships through the game industry 30 fellowship program established in section 15.542: 31 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 2,500,000 32 Sec. 11. GAME STUDIO GRANT PROGRAM —— FY 2026-2027. There 33 is appropriated from the general fund of the state to the 34 economic development authority for the fiscal year beginning 35 -10- LSB 5309YC (5) 91 nls/ko 10/ 15

H.F. _____ July 1, 2026, and ending June 30, 2027, the following amounts, 1 or so much thereof as is necessary, to be used for the purposes 2 designated: 3 For awarding grants under the game studio grant program 4 established in section 15.543: 5 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 2,500,000 6 EXPLANATION 7 The inclusion of this explanation does not constitute agreement with 8 the explanation’s substance by the members of the general assembly. 9 This bill relates to the establishment of programs 10 administered by the economic development authority, including 11 the interactive digital entertainment program, game studio 12 investment matching program, game industry fellowship program, 13 and game studio grant program. 14 DIVISION I —— INTERACTIVE DIGITAL ENTERTAINMENT PROGRAM, 15 GAME STUDIO INVESTMENT MATCHING PROGRAM, GAME INDUSTRY 16 FELLOWSHIP PROGRAM, AND GAME STUDIO GRANT PROGRAM. The bill 17 requires the economic development authority (authority) to 18 establish and administer an interactive digital entertainment 19 tax credit program (IDE program) to award tax credits to 20 qualified developers for qualified expenditures. The bill 21 defines “qualified expenditures” as labor, goods, services, and 22 production costs directly related to a qualified production. 23 The authority shall establish eligibility criteria by rule for 24 participation in the IDE program that, at a minimum, requires 25 a qualified developer to maintain a physical presence in the 26 state and have a minimum payroll in the state of $250,000. 27 An application for the IDE program shall be submitted by a 28 qualified developer to the authority for approval as prescribed 29 by the authority. 30 If a qualified developer’s application is approved, the 31 maximum tax credit that shall be awarded to the qualified 32 developer shall equal 30 percent of the qualified developer’s 33 documented qualified expenditures, except that a qualified 34 developer may receive an additional tax credit equal to five 35 -11- LSB 5309YC (5) 91 nls/ko 11/ 15

H.F. _____ percent of qualified expenditures for qualified productions 1 displaying a “made in Iowa” logo. Prior to the authority 2 issuing a tax credit certificate, the qualified developer 3 shall submit documentation that all qualified expenditures 4 were incurred following approval of the qualified developer’s 5 application. 6 An interactive digital entertainment program fund (IDE fund) 7 is created in the state treasury under the control of the 8 authority consisting of moneys appropriated to the authority 9 and any other moneys available to, obtained by, or accepted 10 by the authority for placement in the fund. The fund shall 11 be used to provide tax credits under the IDE program. The 12 aggregate value of tax credits awarded by the authority and 13 claimed by qualified developers shall not exceed $20 million 14 in any one fiscal year. 15 The authority shall adopt rules to administer the IDE 16 program. 17 The bill requires the authority to establish and administer 18 a game studio investment matching program (matching program). 19 The authority may provide a forgivable loan to an investor that 20 matches dollar for dollar a private investment in an Iowa-based 21 game development company (company). The authority shall not 22 provide forgivable loans to investors in any one company that 23 exceed an aggregate value of $10 million per fiscal year. The 24 bill defines “private investment” as an investment from a 25 publisher advance, venture capital, angel investor, or other 26 source of private funds. 27 Applications for the matching program shall be submitted 28 to the authority in the form and manner prescribed by the 29 authority by rule. 30 Beginning on the date a forgivable loan is provided to an 31 investor, the investor shall not be required to make a payment 32 on the loan if the private investment is in an Iowa-based game 33 development company with 75 percent of employees residing 34 in the state and the company is physically located in the 35 -12- LSB 5309YC (5) 91 nls/ko 12/ 15

H.F. _____ state for a minimum of five consecutive years, at which time 1 the forgivable loan shall be forgiven in its entirety. If 2 the Iowa-based game development company fails to meet these 3 requirements, the investor shall repay the forgivable loan in 4 an amount proportional to the amount of time the Iowa-based 5 game development company was not in compliance with the 6 requirements, as determined by the authority by rule. 7 The authority shall adopt rules to administer the matching 8 program. The matching program applies to private investments 9 in companies made on or after July 1, 2026. 10 The bill requires the authority to establish and administer 11 a game industry fellowship program (fellowship program) to 12 provide two-year fellowships for professionals to relocate 13 to the state. “Professional” is defined in the bill. The 14 authority shall administer the fellowship program and provide 15 grants for 10 to 15 fellowships. A professional awarded a 16 grant shall receive a grant of $150,000 to $200,000 for each 17 year of the two-year fellowship to be used for relocation 18 expenses and as compensation for teaching at a community 19 college or state university, consulting for game start-up 20 companies and studios in the state, or industry building. 21 Grant funds shall not be given to family members, political 22 organizations, or used for a personal business venture by a 23 professional. 24 To be eligible for the fellowship program, a professional 25 must commit to residing in the state and working in the video 26 game industry for a minimum of one additional year following 27 the end of the fellowship. A professional that violates the 28 residency or work requirement shall repay the amount of the 29 grant used for relocation expenses. Prior to applying for 30 the fellowship program, a professional shall disclose any 31 potential conflicts of interest to the authority. A review 32 board as described in the bill shall review applications 33 for the fellowship program and select professionals for 34 participation in the fellowship program. Members of the 35 -13- LSB 5309YC (5) 91 nls/ko 13/ 15

H.F. _____ review board shall disclose any conflict of interest and shall 1 not vote on a fellowship program application submitted by a 2 professional that works for a company in which the member 3 or a family member holds a financial interest, or to which 4 the member or a family member has a family connection. A 5 professional awarded a grant shall submit quarterly reports to 6 the authority that document the professional’s work activities, 7 and independent auditors shall review the quarterly reports 8 and verify the professional’s compliance with the fellowship 9 program requirements. A professional found to be in violation 10 of the program requirements shall repay the grant funds to the 11 authority. 12 The bill establishes the game studio grant program (grant 13 program), administered by the authority, to provide grants to 14 eligible game studios for the recruitment of professionals. 15 “Eligible game studio” means a game studio headquartered in the 16 state and 75 percent of the game studio’s employees reside in 17 the state. “Professional” is defined in the bill. 18 An eligible game studio may apply for a grant under the 19 grant program when the eligible game studio identifies a 20 professional as a candidate for a position, if the position is 21 a director-level position, the professional does not reside or 22 work in the state, has not worked in the state for two years, 23 and would move to the state for the position. The salary for 24 the position must be at least $120,000, and the professional 25 must commit to residing and working in the state for a minimum 26 of three years. Prior to being awarded a grant, an eligible 27 game studio shall provide to the authority the information 28 detailed in the bill. 29 An eligible game studio accepted to the grant program may be 30 awarded a grant in an amount of $50,000 to $75,000 per hire of 31 a professional as detailed by the bill, paid in installments. 32 A game studio that uses grant funds for purposes that do not 33 comply with the bill shall be required to repay the cost of 34 all or part of the grant. If a professional does not reside 35 -14- LSB 5309YC (5) 91 nls/ko 14/ 15

H.F. _____ and work in the state for the entire three-year period, the 1 professional and the game studio shall repay the grant to the 2 authority. 3 The authority shall review applications for the program 4 within 30 days after receipt. The authority shall not issue 5 a grant for a founder or executive of a game studio, or the 6 relative of a founder or executive of a game studio. An 7 eligible game studio may receive no more than three game studio 8 grants over a period of five consecutive years. 9 The authority shall conduct an annual audit of an eligible 10 game studio to ensure that the position for which the studio 11 received a grant is a legitimate director-level or higher 12 position, and the position’s title was not inflated for 13 purposes of receiving a grant. An eligible game studio found 14 to have improperly inflated a position title to receive a grant 15 shall be required to repay the grant and shall be permanently 16 ineligible for the grant program. 17 The authority shall adopt rules to administer the grant 18 program. 19 The bill requires the authority to file annual reports with 20 the general assembly by June 30 of each year detailing the 21 participation, number of jobs created, economic output, and 22 fiscal performance of the IDE program, the matching program, 23 the fellowship program, and the grant program. 24 DIVISION II —— APPROPRIATIONS. For FY 2026-2027, there 25 is appropriated from the general fund of the state to the 26 authority for deposit in the IDE program fund $20 million. 27 For FY 2026-2027, there is appropriated from the general fund 28 of the state to the authority for the matching program $10 29 million. For FY 2026-2027, there is appropriated from the 30 general fund of the state to the authority for the fellowship 31 program $2.5 million. For FY 2026-2027, there is appropriated 32 from the general fund of the state to the authority for the 33 grant program $2.5 million. 34 -15- LSB 5309YC (5) 91 nls/ko 15/ 15