Senate File 621 - Introduced SENATE FILE 621 BY KOELKER A BILL FOR An Act relating to economic development by establishing the 1 Iowa major events and tourism program and fund, modifying 2 the sports tourism and marketing infrastructure program, and 3 making appropriations. 4 BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA: 5 TLSB 2446XS (5) 91 nls/ko
S.F. 621 DIVISION I 1 IOWA MAJOR EVENTS AND TOURISM PROGRAM AND FUND 2 Section 1. NEW SECTION . 15G.101 Definitions. 3 As used in this subchapter, unless the context otherwise 4 requires: 5 1. Board means the same as defined in section 15.102. 6 2. Entity means an Iowa nonprofit organization established 7 to promote economic development and tourism in an area. 8 3. Event means a tourism-oriented athletic contest, 9 convention, music festival, or art festival. 10 4. Financial assistance means assistance provided only 11 from the funds, rights, and assets legally available to the 12 authority and includes but is not limited to assistance in the 13 form of grants. 14 5. Fund means the Iowa major events and tourism fund 15 established in section 15G.104. 16 6. Program means the Iowa major events and tourism program 17 established in section 15G.102. 18 Sec. 2. NEW SECTION . 15G.102 Iowa major events and tourism 19 program purpose. 20 1. The authority shall establish and administer the 21 Iowa major events and tourism program to provide financial 22 assistance to eligible entities that support events in this 23 state, or support events involving a geographic region that 24 includes this state, and the event generates large attendance, 25 significant publicity, and has a measurable economic impact on 26 this state. 27 2. The program shall be administered for the purpose of 28 awarding financial assistance to an eligible entity for any of 29 the following purposes: 30 a. To pay for or reimburse the costs incurred by the entity 31 to apply or bid for selection as the site for the event. 32 b. To pay for or reimburse the costs incurred by the entity 33 to plan or to conduct the event, including any fees charged by 34 a site selection organization as a prerequisite to hosting the 35 -1- LSB 2446XS (5) 91 nls/ko 1/ 10
S.F. 621 event, including but not limited to hosting fees, sanctioning 1 fees, participation fees, operational fees, or bid fees. 2 Sec. 3. NEW SECTION . 15G.103 Program application, 3 review, eligibility, 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 7 subsection 2, the authority shall conduct a staff evaluation 8 of the application and forward the application and staff 9 evaluation to the board. 10 2. a. The authority shall establish eligibility criteria 11 for the program by rule. The eligibility criteria must include 12 all of the following: 13 (1) The entity must currently be involved in the bidding and 14 selection process for the event for which the entity submits 15 an application. 16 (2) The entitys application under subsection 1 must 17 include an economic analysis of the event that includes but is 18 not limited to all of the following: 19 (a) Projected hotel and motel room occupancies during the 20 event. 21 (b) Projected number of event attendees from this state, 22 other states, and other countries. 23 b. Notwithstanding paragraph a , an entity shall be deemed 24 eligible for the program if any of the following apply: 25 (1) After a highly competitive bidding and selection 26 process involving potential sites not located in this state, a 27 location in Iowa has been selected for the entitys event. 28 (2) This state serves as the sole site for the entitys 29 event. 30 (3) The sole site for the entitys event is a geographical 31 region that includes this state and one or more contiguous 32 states. 33 3. When evaluating an application, the authority shall 34 consider, at a minimum, all of the following: 35 -2- LSB 2446XS (5) 91 nls/ko 2/ 10
S.F. 621 a. The potential impact of the event on the local, regional, 1 and state economies. 2 b. The events potential to attract visitors from this 3 state, other states, and other countries. 4 c. The amount of positive advertising or media coverage the 5 event may generate. 6 d. The quality, size, and scope of the event. 7 e. The ratio of public-to-private investment required for 8 the event. 9 4. a. (1) Upon review of the staff evaluation, the board 10 shall make the final funding decision on each application 11 and may approve, deny, defer, or modify each application, in 12 the boards discretion, to fund as many events as possible 13 with the moneys available. The board and the authority may 14 negotiate with an eligible applicant regarding the details of 15 the applicants proposed event and the amount and terms of 16 any financial assistance. In making final funding decisions 17 pursuant to this subsection, the board and the authority shall 18 be exempt from chapter 17A. 19 (2) An application and staff evaluation forwarded to 20 the board under subsection 1 shall remain eligible for 21 consideration by the board under subparagraph (1) for up to two 22 years from the date of receipt of the application by the board. 23 b. In order to be awarded financial assistance under the 24 program, an applicant must demonstrate the ability to provide 25 matching funds for the event that equal at least fifty percent 26 of the award of financial assistance. 27 Sec. 4. NEW SECTION . 15G.104 Iowa major events and tourism 28 fund. 29 1. a. The authority shall establish an Iowa major events 30 and tourism fund pursuant to section 15.106A, subsection 1, 31 paragraph o , for purposes of providing financial assistance 32 as described in this subchapter. The fund may be administered 33 as a revolving fund and shall consist of any moneys transferred 34 to the fund and any moneys appropriated by the general assembly 35 -3- LSB 2446XS (5) 91 nls/ko 3/ 10
S.F. 621 for purposes of this subchapter. 1 b. (1) Notwithstanding section 8.33, moneys appropriated 2 in this section that remain unencumbered or unobligated at the 3 close of the fiscal year shall not revert but shall remain 4 available for expenditure for the purposes designated until the 5 close of the fiscal year following the succeeding fiscal year. 6 (2) Moneys encumbered or obligated pursuant to financial 7 assistance awarded under section 15G.103, subsection 4, shall 8 be disbursed by the authority within five calendar years from 9 the date of encumbrance or obligation, or the moneys shall 10 revert to the state treasury and shall be credited to the funds 11 from which the appropriations were made as provided in section 12 8.33. 13 c. Notwithstanding section 12C.7, subsection 2, interest or 14 earnings on moneys deposited in the fund shall be credited to 15 the fund. 16 2. a. Moneys in the fund are appropriated to the authority 17 for purposes of providing financial assistance under the 18 program. The authority may not use more than five percent of 19 the moneys in the fund at the beginning of each fiscal year for 20 purposes of administrative costs, technical assistance, and 21 other program support. 22 b. An entity that is awarded financial assistance pursuant 23 to this subchapter is not eligible to receive financial 24 assistance under the sports tourism infrastructure program 25 pursuant to chapter 15F, subchapter IV. 26 DIVISION II 27 APPROPRIATIONS FROM SPORTS WAGERING RECEIPTS FUND 28 Sec. 5. APPROPRIATIONS SPORTS WAGERING RECEIPTS 29 FUND. There is appropriated from the sports wagering receipts 30 fund created in section 8.57I to the authority for the fiscal 31 year beginning July 1, 2025, and ending June 30, 2026, the 32 following amount, or so much thereof as is necessary, to be 33 used for the purposes designated: 34 For deposit into the Iowa major events and tourism fund 35 -4- LSB 2446XS (5) 91 nls/ko 4/ 10
S.F. 621 established in section 15G.104, as enacted in division I of 1 this Act: 2 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 15,000,000 3 DIVISION III 4 SPORTS TOURISM MARKETING PROGRAM AND FUND REPEAL 5 Sec. 6. Section 15F.401, subsection 1, paragraph a, Code 6 2025, is amended to read as follows: 7 a. The authority shall establish, and, at the direction 8 of the board, shall administer a sports tourism marketing and 9 infrastructure program to provide financial assistance for 10 projects that promote sporting events or for infrastructure 11 projects supporting sporting events for organizations of 12 accredited colleges and universities, professional sporting 13 events, and other sporting events in the state. 14 Sec. 7. Section 15F.401, subsection 1, paragraph b, Code 15 2025, is amended by adding the following new subparagraph: 16 NEW SUBPARAGRAPH . (03) Fund means the sports tourism 17 infrastructure program fund established in section 15F.404. 18 Sec. 8. Section 15F.401, subsection 2, paragraph a, 19 subparagraph (1), Code 2025, is amended by striking the 20 subparagraph. 21 Sec. 9. Section 15F.401, subsection 2, paragraph a, 22 subparagraph (2), Code 2025, is amended to read as follows: 23 (2) A city or county in the state , or a public entity 24 that is a convention and visitors bureau or a district 25 nonprofit organization, may apply to the authority be 26 eligible for financial assistance from the sports tourism 27 infrastructure program fund created in section 15F.404 fund for 28 an infrastructure project that actively and directly supports 29 sporting events for accredited colleges and universities, 30 professional sporting events, and other sporting events in the 31 area served by the city, county, or public entity. However, 32 financial assistance shall not be provided to an applicant a 33 public entity that is a nonprofit organization from the sports 34 tourism infrastructure program fund created in section 15F.404 35 -5- LSB 2446XS (5) 91 nls/ko 5/ 10
S.F. 621 fund for infrastructure projects located in a reinvestment 1 district as defined and approved by the authority pursuant to 2 section 15J.4 or to applicants that have received a rebate 3 of sales tax imposed and collected by retailers pursuant to 4 section 423.4, subsection 5 . 5 Sec. 10. Section 15F.401, subsection 4, paragraph b, Code 6 2025, is amended to read as follows: 7 b. An applicant under the program shall not receive 8 financial assistance from the sports tourism marketing 9 program fund created in section 15F.403 or the sports tourism 10 infrastructure program fund created in section 15F.404 fund 11 in an amount exceeding fifty percent of the total cost of the 12 project. 13 Sec. 11. Section 15F.401, subsection 5, Code 2025, is 14 amended to read as follows: 15 5. The board shall make final funding decisions on 16 each application and may approve, deny, defer, or modify 17 applications for financial assistance under the sports tourism 18 marketing and infrastructure program, in its discretion, in 19 order to fund as many projects with the moneys available as 20 possible. The board and the authority may negotiate with 21 applicants regarding the details of projects and the amount and 22 terms of any award. The total amount of financial assistance 23 provided to an applicant from the sports tourism marketing 24 program fund created in section 15F.403 in any one fiscal year 25 shall not exceed five hundred thousand dollars. In making 26 final funding decisions pursuant to this subsection , the board 27 and the authority are exempt from chapter 17A . 28 Sec. 12. Section 15F.401, subsection 6, Code 2025, is 29 amended by striking the subsection and inserting in lieu 30 thereof the following: 31 6. A city, county, or public entity shall not use financial 32 assistance received under the program from the fund as 33 reimbursement for completed projects. 34 Sec. 13. Section 15F.402, subsections 1 and 2, Code 2025, 35 -6- LSB 2446XS (5) 91 nls/ko 6/ 10
S.F. 621 are amended to read as follows: 1 1. Applications for assistance under the sports tourism 2 marketing and infrastructure program established in section 3 15F.401 shall be submitted to the authority. For those 4 applications that meet the eligibility criteria, the authority 5 shall forward the applications to the board and provide a staff 6 review analysis and evaluation to the sports tourism program 7 review committee referred to in subsection 2 and to the board. 8 2. A review committee composed of five members of the 9 board shall review sports tourism marketing and infrastructure 10 program applications forwarded to the board and make 11 recommendations regarding the applications to the authority. 12 Sec. 14. Section 15F.404, subsection 2, paragraph a, Code 13 2025, is amended to read as follows: 14 a. Moneys in the fund are appropriated to the authority for 15 purposes of providing financial assistance to cities, counties, 16 and eligible public entities under the sports tourism marketing 17 and infrastructure program established and administered 18 pursuant to this subchapter . 19 Sec. 15. REPEAL. Section 15F.403, Code 2025, is repealed. 20 Sec. 16. TRANSFER OF MONEYS. On the effective date of 21 this division of this Act, any moneys remaining in the sports 22 tourism marketing program fund in section 15F.403, Code 2025, 23 shall be transferred to the Iowa major events tourism fund 24 established in section 15G.104, as enacted in division I of 25 this Act. 26 EXPLANATION 27 The inclusion of this explanation does not constitute agreement with 28 the explanations substance by the members of the general assembly. 29 This bill establishes the Iowa major events and tourism 30 program and fund and modifies the sports tourism and marketing 31 infrastructure program. 32 DIVISION I IOWA MAJOR EVENTS AND TOURISM PROGRAM AND 33 FUND. The bill requires the economic development authority 34 (authority) to establish an Iowa major events and tourism 35 -7- LSB 2446XS (5) 91 nls/ko 7/ 10
S.F. 621 program (program) and an Iowa major events and tourism fund 1 (fund), and to administer the program. 2 The purpose of the program is to provide financial 3 assistance including but not limited to grants to an entity 4 supporting an event in this state, or an event involving a 5 geographic region that includes this state, and the event 6 generates large attendance, significant publicity, and 7 measurable economic impact on this state. The financial 8 assistance includes payment or reimbursement of costs incurred 9 by the entity to apply or bid for selection as the site 10 event, to plan or conduct the event, and to pay or reimburse 11 any related fees including hosting fees, sanctioning fees, 12 participation fees, operational fees, and bid fees. 13 The bill defines entity to mean an Iowa nonprofit 14 organization established to promote economic development 15 and tourism in an area. The bill defines event to mean a 16 tourism-oriented athletic contest, convention, music festival, 17 or art festival. 18 The bill requires the authority to establish eligibility 19 criteria for the program by rule. The eligibility criteria 20 must include the requirement that the entity be currently 21 involved in the bidding and selection process for the event the 22 application is based upon; and that the entity must submit an 23 economic analysis of the event with the entitys application 24 that includes but is not limited to projected hotel and 25 motel room occupancies, and the projected number of attendees 26 the event attracts from this state, other states, and other 27 countries. 28 An application is deemed to meet all eligibility criteria 29 if the state is selected as the event site after a highly 30 competitive bidding and selection process involving sites 31 in other states, if this state serves as the sole site for 32 the event, or if the sole site for the event involves a 33 geographical region that includes this state and one or more 34 contiguous states. 35 -8- LSB 2446XS (5) 91 nls/ko 8/ 10
S.F. 621 If an entitys application meets the eligibility criteria 1 established in the bill, the staff of the authority must 2 perform an evaluation of the application and forward the 3 application and evaluation to the economic development 4 authority board (board). In evaluating an application, the 5 bill requires the authority to consider the impact on the 6 economy, the potential to attract visitors, advertising and 7 media coverage, public-to-private investment ratios, and the 8 quality, size, and scope of the event. 9 Upon review of the staff evaluation, the board may approve, 10 deny, defer, or modify the application. The bill allows the 11 board and the authority to negotiate with the entity regarding 12 the details of the event and the amount and terms of the 13 financial assistance. 14 An application remains eligible for consideration by the 15 board for up to two years from the date of receipt of the 16 application by the board. 17 The bill requires applicants to demonstrate the ability to 18 provide matching funds equal to at least 50 percent of the 19 financial assistance awarded to the applicant. 20 The bill requires the authority to establish a fund for the 21 purposes of providing financial assistance under the program. 22 The authority may administer the fund as a revolving fund. 23 Moneys in the fund that remain unencumbered or unobligated 24 at the close of the fiscal year do not revert and remain 25 available until the close of the fiscal year following the 26 succeeding fiscal year. Moneys in the fund that are encumbered 27 or obligated pursuant to financial assistance awarded under 28 the program shall be disbursed by the authority within five 29 years of the date of encumbrance or obligation, or the moneys 30 shall revert to the state treasury. Moneys in the fund are 31 appropriated to the authority to provide financial assistance 32 to an entity under the program. 33 An entity that is awarded financial assistance pursuant to 34 the bill is not eligible to receive financial assistance under 35 -9- LSB 2446XS (5) 91 nls/ko 9/ 10
S.F. 621 the sports tourism infrastructure program. 1 DIVISION II APPROPRIATIONS FROM SPORTS WAGERING RECEIPTS 2 FUND. In FY 2025-2026, the bill appropriates $15 million from 3 the sports receipts wagering fund to the Iowa major tourism 4 events and tourism fund. 5 DIVISION III SPORTS TOURISM MARKETING PROGRAM AND FUND 6 REPEAL. The bill modifies the sports tourism marketing 7 and infrastructure program by repealing the sports tourism 8 marketing program and fund. The bill retains the sports 9 tourism infrastructure program and fund. Upon the effective 10 date of the division, the bill transfers the remaining moneys 11 in the sports tourism marketing program fund to the Iowa major 12 events and tourism program fund. 13 -10- LSB 2446XS (5) 91 nls/ko 10/ 10