HLS 22RS-1693 REENGROSSED
2022 Regular Session
HOUSE BILL NO. 1015
BY REPRESENTATIVE SCHEXNAYDER
ECONOMIC DEVELOPMENT: Provides relative to financial incentives for events held
in Louisiana
1 AN ACT
2To amend and reenact R.S. 51:2365(D)(3) and (F)(2), to enact R.S. 51:1260 and 1261, and
3 to repeal R.S. 51:2365(F)(1)(d) and 2365.1, relative to financial incentives for events
4 held in Louisiana; to provide relative to the Major Events Incentive Program; to
5 make changes to the administration of the program; to create a grant program for
6 certain Louisiana events; to provide for administration of the program; to provide for
7 an effective date; and to provide for related matters.
8Be it enacted by the Legislature of Louisiana:
9 Section 1. R.S. 51:2365(D)(3) and (F)(2) are hereby amended and reenacted and
10R.S. 51:1260 and 1261 are hereby enacted to read as follows:
11 §1260. Major Events Incentive Fund; Major Events Incentive Program
12 A.(1) There is hereby created in the state treasury, as a special fund, the
13 Major Events Incentive Fund, hereinafter referred to in this Section as the "fund".
14 (2) The source of monies deposited into the fund shall be any monies
15 appropriated by the legislature, including federal funds, any public or private
16 donations, gifts, or grants from individuals, corporations, nonprofit organizations,
17 or other business entities which may be made to the fund, and any other monies
18 which may be provided by law. In determining the amount of the annual
19 appropriation to the fund, the legislature shall consider contracts which have been
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1 entered into pursuant to this Section as well as any recruitment efforts being made
2 by local organizing committees for qualified major events.
3 (3) Monies in the fund shall be invested in the same manner as monies in the
4 state general fund and any interest earned on the investment of monies in the fund
5 shall be credited to the fund. All unexpended and unencumbered monies in the fund
6 at the end of the fiscal year shall remain in the fund.
7 (4) Monies in the fund shall be used solely for attracting, hosting, and
8 staging major events pursuant to the Major Events Incentive Program as provided in
9 this Section.
10 B. There is hereby created the Major Events Incentive Program, hereinafter
11 referred to in this Section as the "program", to be administered by the office of
12 lieutenant governor, through the Department of Culture, Recreation and Tourism.
13 The program shall provide grant funding to local organizing committees, endorsing
14 municipalities, endorsing parishes, official tourism commissions, convention and
15 visitors bureaus, and official destination marketing organizations, for costs
16 associated with attracting and hosting qualified major events as provided in this
17 Section.
18 C. As used in this Section, the following terms have the following meanings:
19 (1) "Endorsing municipality" means either of the following:
20 (a) A municipality that contains a site selected by a site selection
21 organization for a major event and is a party to an event support contract.
22 (b) A municipality that does not contain a site selected by a site selection
23 organization for a qualified major event, but is included in the market area for the
24 event as designated by the secretary and is a party to an event support contract.
25 (2) "Endorsing parish" means either of the following:
26 (a) A parish that contains a site selected by a site selection organization for
27 a qualified major event and is a party to an event support contract.
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1 (b) A parish that does not contain a site selected by a site selection
2 organization for a qualified major event, but is included in the market area for the
3 event as designated by the secretary and is a party to an event support contract.
4 (3) "Event support contract" or "event contract" means a joint undertaking,
5 a joint agreement, or a similar contract executed by a local organizing committee, an
6 endorsing municipality, an endorsing parish, official tourism commission,
7 convention and visitors bureau, or official destination marketing organization, or any
8 combination thereof, and a site selection organization.
9 (4) "Local organizing committee" means an organization created or
10 recognized as the official host entity sanctioned by an endorsing municipality or
11 parish for a specified qualified major event.
12 (5) "Qualified major event" means a National Football League Super Bowl,
13 a National Collegiate Athletic Association Final Four tournament game, the National
14 Basketball Association All-Star Game, the X Games, a National Collegiate Athletic
15 Association Division I Football Bowl Subdivision postseason game, a college
16 tournament or championship, the World Games, a national collegiate championship
17 of an amateur sport sanctioned by the national governing body of the sport that is
18 recognized by the United States Olympic Committee, an Olympic activity including
19 a Junior or Senior activity, training program, or feeder program sanctioned by the
20 United States Olympic Committee's Community Olympic Development Program,
21 a mixed martial arts championship, the Breeders' Cup World Championships, a
22 Bassmasters Classic, a National Motorsports race, the Red Bull Signature Series, a
23 football kickoff game between two National Collegiate Athletic Association teams,
24 a national championship or Olympic trials of an amateur or professional sport
25 sanctioned by the national governing body of the sport, the United States Bowling
26 Congress Tournament, the WWE WrestleMania, the Bayou Classic, the Essence
27 Festival, the Zurich Classic or other PGA Tour event, a national military event, a
28 national political convention of the Republican National Committee or of the
29 Democratic National Committee, or any National Collegiate Athletic Association
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1 conference, convention, or conference media event, including conference media
2 days. The term includes any activities related to or associated with a qualified major
3 event.
4 (6) "Site selection organization" means any of the following:
5 (a) The National Football League, the National Collegiate Athletic
6 Association or any affiliated conference, or any team or teams thereof, the National
7 Basketball Association, the International World Games Association, or the United
8 States Olympic Committee.
9 (b) The national governing body of a sport that is recognized by the United
10 States Olympic Committee.
11 (c) The National Thoroughbred Racing Association.
12 (d) The Republican National Committee or Democratic National Committee.
13 (e) The United States Bowling Congress.
14 (f) The national governing body of an organization, not listed in
15 Subparagraphs (a) through (e) of this Paragraph, that schedules a qualified major
16 event as defined in Subparagraph (5) of this Paragraph.
17 D. An entity shall be eligible to receive funding through the program only
18 if all of the following apply:
19 (1) The event is included in the definition of qualified major event.
20 (2) A site selection organization selects or has selected a site in Louisiana
21 under either of the following circumstances:
22 (a) After holding a bidding or invitation selection process involving required
23 terms and conditions that could be fulfilled by sites not located in Louisiana.
24 (b) As the sole site for the event or the sole site for the event in a region
25 composed of Louisiana and one or more states.
26 (3) The event is not held more than one time per year in Louisiana or any
27 other state.
28 E. The lieutenant governor, through the Department of Culture, Recreation
29 and Tourism, is hereby authorized to enter into a contract with a local organizing
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1 committee, endorsing parish, endorsing municipality, official tourism commission,
2 convention and visitors bureau, and official destination marketing organization to
3 recruit, solicit, acquire, or organize for Louisiana any qualified major event that will
4 have a significant positive impact in the state. The contract shall provide for a
5 financial commitment to the entity.
6 F. Any grants received pursuant to this Section may be used for either of the
7 following:
8 (1) To pay or reimburse the costs of applying or bidding for selection as the
9 site of the event.
10 (2) To pay or reimburse the costs of planning for or conducting the event.
11 G. Within sixty days after the event, the lieutenant governor shall submit an
12 economic analysis to the state treasurer which shall include the following:
13 (1) The designated area which was impacted by the occurrence of the
14 qualified major event.
15 (2) The total incremental increase in state sales and use receipts in the
16 designated area.
17 (3) The total incremental increase in excise tax receipts in the designated
18 area.
19 (4) The amount equal to fifty percent of the total incremental increases
20 provided for in Paragraphs (2) and (3) of this Subsection.
21 H. Upon receipt of the analysis from the lieutenant governor, the treasurer
22 shall immediately transfer the amount provided in Subsection (G)(4) of this Section
23 from the state general fund to the Major Events Incentive Fund.
24 I. No later than September first of each year, the lieutenant governor shall
25 submit an annual report on the program to the Joint Legislative Committee on the
26 Budget. The report shall include the entities that received grant funding for events
27 in the previous fiscal year, the economic impact of the events to the state, and the
28 amount of incremental tax revenue transferred to the fund pursuant to this Section.
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1 §1261. Events Incentive Fund
2 A.(1) There is hereby created in the state treasury, as a special fund, the
3 Events Incentive Fund, hereinafter referred to in this Section as the "fund".
4 (2) The source of monies deposited into the fund shall be any monies
5 appropriated by the legislature, including federal funds, any public or private
6 donations, gifts, or grants from individuals, corporations, nonprofit organizations,
7 or other business entities which may be made to the fund, and any other monies
8 which may be provided by law.
9 (3) Monies in the fund shall be invested in the same manner as monies in the
10 state general fund and any interest earned on the investment of monies in the fund
11 shall be credited to the fund. All unexpended and unencumbered monies in the fund
12 at the end of the fiscal year shall remain in the fund.
13 (4) Monies in the fund shall be used solely for attracting, planning,
14 marketing, and conducting events pursuant to the Events Incentive Program as
15 provided in this Section.
16 B. There is hereby created the Events Incentive Program, hereinafter referred
17 to in this Section as the "program", to be administered by the lieutenant governor,
18 through the Department of Culture, Recreation and Tourism. The program shall
19 provide grant funding to municipalities, parishes, official tourism commissions,
20 convention and visitors bureaus, official destination marketing organizations, and
21 nonprofit corporations hosting an event for costs associated with planning,
22 marketing, and conducting events held in Louisiana.
23 C. An entity shall be eligible to receive funding through the program only
24 if all of the following apply:
25 (1) The event is not a "qualified major event" as defined in R.S. 51:1260.
26 (2) The event is not held more than one time per year in Louisiana or any
27 other state.
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1 (3) The applicant submits the application and required documentation no
2 later than one hundred eight days prior to the event. The documentation shall
3 include:
4 (a) The total anticipated cost of the event.
5 (b) The amount and anticipated sources of funding for the event.
6 (c) An economic analysis indicating the event has an anticipated impact of
7 three hundred fifty thousand dollars or greater to the state.
8 (d) A proposal for the utilization of the grant funding.
9 D. A municipality, parish, or nonprofit corporation hosting the event shall
10 be eligible to receive up to twenty-five percent of the total cost incurred by the entity
11 for the event, not to exceed two hundred fifty thousand dollars per grant.
12 E. Any grants received pursuant to this Section event may be used for either
13 of the following:
14 (1) To pay or reimburse the costs of applying or bidding for selection as the
15 site of the event.
16 (2) To pay or reimburse the costs of planning, marketing, or conducting the
17 event.
18 F. No later than September first of each year, the lieutenant governor shall
19 submit an annual report on the program to the Joint Legislative Committee on the
20 Budget. The report shall include the entities that received grant funding for events
21 in the previous fiscal year pursuant to this Section and the economic impact of the
22 events to the state, to the extent possible.
23 G. The lieutenant governor shall promulgate rules for the administration of
24 the program in accordance with the Administrative Procedure Act. In order to
25 expedite implementation of the program, the department shall utilize emergency
26 rulemaking for the promulgation of the initial administrative rules.
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1 §2365. Louisiana Mega-Project Development Fund
2 * * *
3 D.
4 * * *
5 (3) The department shall make available upon request the economic impact
6 analysis on an economic development project which receives monies from the fund.
7 This Subparagraph shall not apply to a mega-project which is a qualified major event
8 as defined in R.S. 51:2365.1.
9 * * *
10 F.
11 * * *
12 (2) Except for a mega-project as provided in Subparagraphs (1)(b) and (d)
13 Subparagraph(1)(b) of this Subsection, the investment by the state in any
14 mega-project shall not exceed thirty percent of the total cost of the project as
15 described by the cooperative endeavor agreement.
16 * * *
17 Section 2. R.S. 51:2365(F)(1)(d) and 2365.1 are hereby repealed in their entirety.
18 Section 3. On the effective date of this Act, the treasurer is authorized and directed
19to transfer any remaining balance in the Major Events Incentive Program Subfund of the
20Mega-Project Development Fund to the Major Events Incentive Fund. Any contract entered
21into with the secretary of the Department of Economic Development pursuant to the Major
22Events Incentive Program prior to the effective date of this Act shall be transferred to the
23lieutenant governor.
24 Section 4. This Act shall become effective on July 1, 2022.
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DIGEST
The digest printed below was prepared by House Legislative Services. It constitutes no part
of the legislative instrument. The keyword, one-liner, abstract, and digest do not constitute
part of the law or proof or indicia of legislative intent. [R.S. 1:13(B) and 24:177(E)]
HB 1015 Reengrossed 2022 Regular Session Schexnayder
Abstract: Makes changes to the Major Events Incentive Program and creates a separate
grant program for certain events held in Louisiana.
Present law creates the Major Events Incentive Program to provide funding for specific
major events and provides definitions for "endorsing municipality", "endorsing parish",
"event support contract", "local organizing committee", "qualified major event", and "site
selection organization".
Proposed law retains present law.
Present law requires the Dept. of Economic Development (LED) to administer the program.
Proposed law moves administration of the program to the lieutenant governor, through the
Dept. of Culture, Recreation and Tourism.
Proposed law allows grants to be used to pay or reimburse the endorsing parish, endorsing
municipality, local organizing committee, official tourism commission, convention and
visitors bureau, or official destination marketing organization for the cost of applying or
bidding for selection as the site of the event and for the costs of planning for or conducting
the event.
Present law requires approval of the commissioner of administration and the Joint
Legislative Committee on the Budget (JLCB) prior to the execution of any contract with a
local organizing committee, endorsing parish, or endorsing municipality for a qualified
major event.
Proposed law repeals present law.
Proposed law requires the lieutenant governor to submit an economic analysis to the state
treasurer and to include in such analysis: (1) the designated area impacted by the occurrence
of the qualified major event, (2) the total incremental increase in sales and use receipts in the
designated area, (3) the total incremental increase in excise tax receipts in the designated
area, and (4) the amount equal to 50% of the total incremental increases of the sales and use
receipts and excise tax receipts.
Proposed law requires the treasurer to transfer 50% of both the total incremental sales and
use receipts and the excise tax receipts from the general fund to the program fund
immediately upon receipt of the economic analysis required pursuant to proposed law.
Proposed law requires the lt. governor to submit a written report to JLCB and include in such
report the entities that received grant funding for events in the prior fiscal year, the economic
impact of the events, and the amount of incremental tax revenue transferred to the fund as
required by proposed law by Sept. 1 of each year.
Present law creates the Major Events Incentive Program Subfund as a subfund of the
Louisiana Mega-Project Development Fund.
Proposed law changes the subfund to a separate fund of the state treasury and renames it the
Major Events Incentives Fund.
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Proposed law creates the Events Incentive Program to provide grant funding to
municipalities, parishes, official tourism commissions, convention and visitors bureaus,
official destination marketing organizations, and nonprofit corporations hosting an event.
Proposed law requires the lt. governor, through the Dept. of Culture, Recreation and
Tourism, to administer the program.
Proposed law provides for eligibility criteria and required documentation for events to
receive funding through the program.
Proposed law requires any application and documentation required by proposed law to be
submitted no later than 180 days prior to the event to be considered.
Proposed law provides that an entity is eligible to receive up to 25% of the total cost incurred
by the entity for the event, not to exceed $350,000 per event.
Proposed law requires the lt. governor to promulgate rules to administer the program and to
use the emergency rulemaking process for the promulgation of the initial administrative rule.
Effective July 1, 2022.
(Amends R.S. 51:2365(D)(3) and (F)(2); Adds R.S. 51:1260 and 1261; Repeals R.S.
51:2365(F)(1)(d) and 2365.1)
Summary of Amendments Adopted by House
The Committee Amendments Proposed by House Committee on Commerce to the
original bill:
1. Remove LED from involvement with the program, including removal of
references to LED throughout proposed law, and require the lt. governor to
provide an economic analysis to the state treasurer and include certain criteria in
the analysis.
2. Require the treasurer to transfer 50% of the incremental increase in sales and use
and excise tax receipts to be paid from the general fund to the program fund
established in proposed law immediately upon receiving the economic analysis.
3. Require the lt. governor to submit an annual report by Sept. 1 of each year which
includes certain information regarding the program and to provide such report
to JLCB.
4. Make nonprofit corporations eligible for funding through the program.
5. Require applications for funding be submitted by 180 days prior to the event.
6. Require the lt. governor to promulgate rules for administration of the program
and use of the emergency rulemaking process to promulgate initial rules.
7. Make technical changes.
The House Floor Amendments to the engrossed bill:
1. Include official tourism commissions, convention and visitors bureaus, and
official destination marketing organizations as eligible grant recipients for the
Major Events Incentive Program and the Events Incentive Program.
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2. Change one of the qualifying criteria for a site selection committee to select a
site in La. for an major qualified event.
3. Add required documentation for entities applying for the Events Incentive
Program.
4. Increase the economic impact for an event to be eligible for the Events Incentive
Program from $250,000 to $350,000.
5. Add language to transfer remaining funds from the Major Events Incentive
Subfund to the Major Events Incentive Fund and contracts entered into with LED
for the Major Events Incentive Program to the lt. governor.
6. Add an effective date of July 1, 2022.
7. Make technical changes.
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