Session of 2025
Substitute for HOUSE BILL No. 2346
By Committee on Commerce, Labor and Economic Development
Requested by John Monroe on behalf of Top Gun Events and Visit OP
3-19
AN ACT concerning economic development; establishing the Kansas
sports tourism grant program to be administered by the secretary of
commerce to provide matching grants to assist communities in
developing and continuing sporting events; providing for the funding of
such grants from the state economic development initiatives fund or
from the state general fund if funds are not available therefrom;
establishing the Kansas sports tourism program grant fund.
Be it enacted by the Legislature of the State of Kansas:
Section 1. There is hereby established the Kansas sports tourism grant
program, which shall be administered by the secretary of commerce. The
purpose of the Kansas sports tourism grant program shall be to provide
matching grants to tourism or sports-related organizations to support and
enhance sports tourism events held in Kansas, thereby assisting
communities to attract high quality sports tourism events that generate
significant economic impact through out-of-state guest and participant
spending. Such grants shall be awarded as a pledge conditioned on and
determined by analysis of post-event data and shall be matched on a $1-
for-$1 basis with funds from one or more sponsors, as provided by section
2, and amendments thereto. Such grants shall be awarded with the intent to
ease the financial burden that sports destinations experience when bidding
on and hosting sports tourism events and incentivize event owners to bring
events that are beneficial to the Kansas economy.
Sec. 2. (a) Applicants for a Kansas sports tourism grant shall submit
applications to the secretary of commerce in the form and manner as
determined by the secretary. The secretary may charge a fee for the
purpose of compensating the secretary for costs of administering the
program that shall be submitted with the application. Applicants shall
include information as required by the secretary, including, but not limited
to, the estimated economic impact and the number of hotel beds consumed
using the destinations international event impact calculator. The secretary
may assist a grant applicant in obtaining such information and using such
calculator. Applications shall include a written explanation of the
applicant's purpose in applying for the grant and how grant funding would
grow sports tourism in the applicant's community, region or the state.
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(b) The secretary shall require that applicants who are event owners,
as determined by the secretary, to obtain grant sponsorship. The sports
commission, city commission, recreation commission, destination
marketing organization or municipality may be required by the secretary to
serve as a grant sponsor. Sports tourism events shall be held in Kansas to
be eligible for a grant. The event may be an existing recurring event or a
new planned event. The secretary shall reserve at least $250,000 of the
available funds for grants for sports tourism events in counties other than
Sedgwick, Wyandotte and Johnson.
(c) (1) If the secretary determines that awarding a matching grant to
an applicant would further the purposes of the program and the applicant
meets the requirements as provided by this section, the secretary may
award a grant to the applicant on a matching $1-to-$1 basis to the funds
from the sponsor or sponsors. Grant awards shall be made as a pledge
conditioned on a post-event analysis and the grant funds provided after the
event.
(2) The final amount of the grant award shall be determined by the
secretary as provided by section 3, and amendments thereto. The
maximum grant amount shall be limited to not more than 12.5% of the
state sales tax generated from the local jurisdiction during the time period
of the event. The secretary of revenue shall provide aggregate sales tax
revenue information to the secretary of commerce upon request for the
purpose of determining the maximum grant amount. The final grant
amount, as determined by the secretary of commerce, shall be awarded
within 90 days after the event or at the time that the maximum grant
amount may be determined, whichever occurs later.
(d) The secretary shall not award grants for sports tourism events
directly involving the national basketball association, the national football
league, major league baseball, the national hockey league, major league
soccer, professional women's soccer, international sporting events,
including, but not limited to, men's professional soccer, established
resident Kansas professional sports entities, the Kansas state high school
activities association, private or public secondary schools or private or
public postsecondary colleges or universities. No grant funds shall be
awarded for any sports tourism event for reimbursement or payment for
services or goods that are not competitively bid.
Sec. 3. (a) The final amount of the grant shall be determined after the
sports tourism event by the secretary of commerce upon review of the
post-event report required by section 4, and amendments thereto, the
actual expenses of the event as provided by subsection (c), verified
economic impact and hotel night bookings generated by the event and the
application of the following table. The final amount shall be limited by the
maximum grant award determined pursuant to section 2, and amendments
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thereto. The secretary shall use the destinations international event impact
calculator to determine the actual economic impact and hotel night
bookings generated by the sports tourism event. The secretary may award
a sports tourism event that meets an economic impact and consumed hotel
nights level threshold, as provided by the table in subsection (b), a grant
amount of up to the amount allowed for the next higher economic impact
and consumed hotel nights requirements threshold as set forth in such
table.
(b) The secretary shall allocate sports tourism grant program funds
for grants in each fiscal year to the sports tourism events within the state
that generate verified economic impacts as provided by the following
table:
Total GrantState Sponsor EconomicHotel Night
AllocationAllocationAllocation ImpactMinimum
$2,031 $1,015.50$1,015.50 $125,000 250
$4,063 $2,031.50 $2,031.50 $250,000 500
$8,123 $4,061.50 $4,061.50 $500,000 750
$12,188 $6,094.00 $6,094.00 $750,000 1,000
$16,250 $8,125.00 $8,125.00$1,000,000 1,250
$24,375 $12,187.50 $12,187.50$1,500,000 1,500
$32,500 $16,250.00 $16,250.00$2,000,000 1,750
$40,625 $20,312.50 $20,312.50$2,500,000 2,000
$48,750 $24,375.00 $24,375.00$3,000,000 2,250
$56,875 $28,437.50 $28,437.50$3,500,000 2,500
$65,000 $32,500.00 $32,500.00$4,000,000 3,000
$73,125 $36,562.50 $36,562.50$4,500,000 3,500
$81,250 $40,625.00 $40,625.00$5,000,000 4,000
$89,375 $44,687.50 $44,687.50$5,500,000 4,500
$97,500 $48,750.00 $48,750.00$6,000,000 5,000
$105,625 $52,812.50 $52,812.50$6,500,000 5,500
$113,750 $56,875.00 $56,875.00$7,000,000 6,000
$121,875 $60,937.50 $60,937.50$7,500,000 6,500
$130,000 $65,000.00 $65,000.00$8,000,000 7,000
$138,125$69,062.50$69,062.50$8,500,000 7,500
(c) Grant funds shall be used for expenses identified in the
application and approved by the secretary.
(1) Expenses allowed by the secretary may include:
(A) Official's travel and housing;
(B) promotions and marketing;
(C) site fees, fees for use of rights or sanction fees;
(D) renting equipment or flooring that is required to produce the
event; or
(E) funds for supporting a bid effort, if the applicant is the bid winner.
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(2) The secretary shall not allow the use of grant funds for the
following expenses:
(A) Building, renovating or remodeling of a facility or purchasing
permanent equipment;
(B) debts incurred by the applicant prior to the pledge of the grant;
(C) printed programs that solicit advertising;
(D) hospitality or social functions for events outside the sporting
events venue that include alcohol; or
(E) expenses for travel outside of the county hosting the sports
tourism event.
Sec. 4. As a condition of receiving a grant, an applicant shall agree to
provide a post-event report to the secretary of commerce. Such report shall
include:
(a) An economic impact report, including the:
(1) Sports tourism event name;
(2) location of the event;
(3) start and end dates of the event;
(4) the total number of hotel nights consumed in the local or regional
Kansas market; and
(5) such other information or data as may be required by the secretary
for the purposes of:
(A) Determining the economic impact of the event; and
(B) preparing the secretary's report to the legislature pursuant to
section 6, and amendments thereto; and
(b) an expense report, including proof of payment of eligible
expenses equal to at least the amount of the grant. Accepted forms of proof
of payment may include itemized credit care receipts, invoices with
canceled checks or credit care statements.
Sec. 5. (a) There is hereby established in the state treasury the Kansas
sports tourism program grant fund, which shall be administered by the
secretary of commerce. All moneys credited to the Kansas sports tourism
program grant fund shall be used by the Kansas department of commerce
for Kansas sports tourism program grants to applicants approved by the
secretary pursuant to the provisions of sections 1 through 4, and
amendments thereto. All expenditures from the Kansas sports tourism
program grant fund shall be made in accordance with appropriation acts
upon warrants of the director of accounts and reports issued pursuant to
vouchers approved by the secretary of commerce or the secretary's
designee.
(b) (1) Subject to appropriations therefor, on July 1, 2025, or as soon
thereafter as moneys are available, the director of accounts and reports
shall transfer $1,500,000 from the state economic development initiatives
fund, established by K.S.A. 79-4804, and amendments thereto, to the
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Kansas sports tourism program grant fund. If sufficient funds are not
available to cover such transfer, the secretary of commerce and the director
of the budget shall jointly certify the amount of such insufficient funds to
the director of accounts and reports and transmit a copy of such
certification to the director of legislative research. Upon receipt of such
certification, the director of accounts and reports shall transfer such
certified amount from the state general fund to the Kansas sports tourism
program grant fund. Such transfers shall be subject to appropriation acts.
(2) Subject to appropriations therefor, on July 1, 2026, and each July
1 thereafter, the secretary of commerce shall certify the amount of
unencumbered funds in the Kansas sports tourism program grant fund to
the director of accounts and reports. Upon receipt of such certification, or
as soon thereafter as moneys are available, if the amount certified by the
secretary of commerce is less than $1,500,000, the director of accounts
and reports shall transfer the amount that results in the amount of
unencumbered funds in the Kansas sports tourism program grant fund
being equal to $1,500,000 immediately subsequent to such transfer from
the state economic development initiatives fund, established by K.S.A. 79-
4804, and amendments thereto, to the Kansas sports tourism program grant
fund. If sufficient funds are not available to cover such transfer, the
secretary of commerce and the director of the budget shall jointly certify
the amount of such insufficient funds to the director of accounts and
reports and transmit a copy of such certification to the director of
legislative research. Upon receipt of such certification, the director of
accounts and reports shall transfer such certified amount from the state
general fund to the Kansas sports tourism program grant fund. Such
transfers shall be subject to appropriation acts.
(c) Subject to appropriations, the aggregate total of grants awarded by
the secretary each fiscal year shall be limited to $1,500,000.
Sec. 6. The secretary of commerce shall submit an annual report to
the house of representatives committee on commerce, labor and economic
development, the senate committee on commerce and the legislative
coordinating council on or before December 31, 2026, and December 31
of each year thereafter through December 31, 2030, that shall include the
following information for the fiscal year ending on the previous June 30
and all information available up to the date of the report:
(a) The number of grants awarded;
(b) the economic impact generated in the aggregate and by each
sports tourism event;
(c) the number of hotel nights booked in Kansas in the aggregate and
by locality and region for each sports tourism event;
(d) the total grant funds distributed and the grant recipients and
sponsors for each event;
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(e) the distribution of grant funds by county;
(f) for each event, the amount of state sales tax generated from the
local jurisdiction during the event and the amount of state sales tax
generated from such jurisdiction during the same time period in the
previous year;
(g) the amount of local sales tax generated during the event;
(h) the amount of transient guest tax generated during the event; and
(i) qualified applicants and events not approved by the secretary.
Sec. 7. (a) The provisions of sections 1 through 6, and amendments
thereto, shall expire on June 30, 2030.
(b) On July 1, 2030:
(1) The director of accounts and reports shall transfer all moneys in
the Kansas sports tourism program grant fund to the state general fund;
(2) all liabilities of the Kansas sports tourism program grant fund
shall be transferred to and imposed on the state general fund; and
(3) the Kansas sports tourism program grant fund shall be abolished.
Sec. 8. This act shall take effect and be in force from and after its
publication in the statute book.
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