Senate File 2419 - Introduced
SENATE FILE 2419
BY COMMITTEE ON APPROPRIATIONS
(SUCCESSOR TO SF 2394)
A BILL FOR
1 An Act relating to economic development by establishing the
2 Iowa major events and tourism program and fund, modifying
3 the sports tourism and marketing infrastructure program, and
4 making appropriations.
5 BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA:
TLSB 5961SV (3) 90
jm/ko
 S.F. 2419
1 DIVISION I
2 IOWA MAJOR EVENTS AND TOURISM PROGRAM AND FUND
3 Section 1. NEW SECTION. 15G.101 Definitions.
4 As used in this subchapter, unless the context otherwise
5 requires:
6 1. “Board” means the same as defined in section 15.102.
7 2. “Entity” means an Iowa nonprofit organization established
8 to promote economic development and tourism in an area.
9 3. “Event” means a tourism-oriented athletic contest,
10 convention, music festival, or art festival.
11 4. “Financial assistance” means assistance provided only
12 from the funds, rights, and assets legally available to the
13 authority and includes but is not limited to assistance in the
14 form of grants.
15 5. “Fund” means the Iowa major events and tourism fund
16 established in section 15G.104.
17 6. “Program” means the Iowa major events and tourism program
18 established in section 15G.102.
19 Sec. 2. NEW SECTION. 15G.102 Iowa major events and tourism
20 program —— purpose.
21 1. The authority shall establish and administer the
22 Iowa major events and tourism program to provide financial
23 assistance to eligible entities that support events in this
24 state, or support events involving a geographic region that
25 includes this state, and the event generates large attendance,
26 significant publicity, and has a measurable economic impact on
27 this state.
28 2. The program shall be administered for the purpose of
29 awarding financial assistance to an eligible entity for any of
30 the following purposes:
31 a. To pay for or reimburse the costs incurred by the entity
32 to apply or bid for selection as the site for the event.
33 b. To pay for or reimburse the costs incurred by the entity
34 to plan or to conduct the event, including any fees charged by
35 a site selection organization as a prerequisite to hosting the
LSB 5961SV (3) 90
-1- jm/ko 1/10
 S.F. 2419
1 event, including but not limited to hosting fees, sanctioning
2 fees, participation fees, operational fees, or bid fees.
3 Sec. 3. NEW SECTION. 15G.103 Program —— application,
4 review, eligibility, and funding.
5 1. An application for financial assistance under the
6 program shall be submitted to the authority. For each
7 application that meets the eligibility criteria under
8 subsection 2, the authority shall conduct a staff evaluation
9 of the application and forward the application and staff
10 evaluation to the board.
11 2. a. The authority shall establish eligibility criteria
12 for the program by rule. The eligibility criteria must include
13 all of the following:
14 (1) The entity must currently be involved in the bidding and
15 selection process for the event for which the entity submits
16 an application.
17 (2) The entity’s application under subsection 1 must
18 include an economic analysis of the event that includes but is
19 not limited to all of the following:
20 (a) Projected hotel and motel room occupancies during the
21 event.
22 (b) Projected number of event attendees from this state,
23 other states, and other countries.
24 b. Notwithstanding paragraph “a”, an entity shall be deemed
25 eligible for the program if any of the following apply:
26 (1) After a highly competitive bidding and selection
27 process involving potential sites not located in this state, a
28 location in Iowa has been selected for the entity’s event.
29 (2) This state serves as the sole site for the entity’s
30 event.
31 (3) The sole site for the entity’s event is a geographical
32 region that includes this state and one or more contiguous
33 states.
34 3. When evaluating an application, the authority shall
35 consider, at a minimum, all of the following:
LSB 5961SV (3) 90
-2- jm/ko 2/10
 S.F. 2419
1 a. The potential impact of the event on the local, regional,
2 and state economies.
3 b. The event’s potential to attract visitors from this
4 state, other states, and other countries.
5 c. The amount of positive advertising or media coverage the
6 event may generate.
7 d. The quality, size, and scope of the event.
8 e. The ratio of public-to-private investment required for
9 the event.
10 4. a. (1) Upon review of the staff evaluation, the board
11 shall make the final funding decision on each application
12 and may approve, deny, defer, or modify each application, in
13 the board’s discretion, to fund as many events as possible
14 with the moneys available. The board and the authority may
15 negotiate with an eligible applicant regarding the details of
16 the applicant’s proposed event and the amount and terms of
17 any financial assistance. In making final funding decisions
18 pursuant to this subsection, the board and the authority shall
19 be exempt from chapter 17A.
20 (2) An application and staff evaluation forwarded to
21 the board under subsection 1 shall remain eligible for
22 consideration by the board under subparagraph (1) for up to two
23 years from the date of receipt of the application by the board.
24 b. In order to be awarded financial assistance under the
25 program, an applicant must demonstrate the ability to provide
26 matching funds for the event that equal at least fifty percent
27 of the award of financial assistance.
28 Sec. 4. NEW SECTION. 15G.104 Iowa major events and tourism
29 fund.
30 1. a. The authority shall establish an Iowa major events
31 and tourism fund pursuant to section 15.106A, subsection 1,
32 paragraph “o”, for purposes of providing financial assistance
33 as described in this subchapter. The fund may be administered
34 as a revolving fund and shall consist of any moneys transferred
35 to the fund and any moneys appropriated by the general assembly
LSB 5961SV (3) 90
-3- jm/ko 3/10
 S.F. 2419
1 for purposes of this subchapter.
2 b. (1) Notwithstanding section 8.33, moneys appropriated
3 in this section that remain unencumbered or unobligated at the
4 close of the fiscal year shall not revert but shall remain
5 available for expenditure for the purposes designated until the
6 close of the fiscal year following the succeeding fiscal year.
7 (2) Moneys encumbered or obligated pursuant to financial
8 assistance awarded under section 15G.103, subsection 4, shall
9 be disbursed by the authority within five calendar years from
10 the date of encumbrance or obligation, or the moneys shall
11 revert to the state treasury and shall be credited to the funds
12 from which the appropriations were made as provided in section
13 8.33.
14 c. Notwithstanding section 12C.7, subsection 2, interest or
15 earnings on moneys deposited in the fund shall be credited to
16 the fund.
17 2. a. Moneys in the fund are appropriated to the authority
18 for purposes of providing financial assistance under the
19 program. The authority may not use more than five percent of
20 the moneys in the fund at the beginning of each fiscal year for
21 purposes of administrative costs, technical assistance, and
22 other program support.
23 b. An entity that is awarded financial assistance pursuant
24 to this subchapter is not eligible to receive financial
25 assistance under the sports tourism infrastructure program
26 pursuant to chapter 15F, subchapter IV.
27 DIVISION II
28 APPROPRIATIONS FROM SPORTS WAGERING RECEIPTS FUND
29 Sec. 5. APPROPRIATIONS —— SPORTS WAGERING RECEIPTS
30 FUND. There is appropriated from the sports wagering receipts
31 fund created in section 8.57 to the authority for the fiscal
32 year beginning July 1, 2024, and ending June 30, 2025, the
33 following amount, or so much thereof as is necessary, to be
34 used for the purposes designated:
35 For deposit into the Iowa major events and tourism fund
LSB 5961SV (3) 90
-4- jm/ko 4/10
 S.F. 2419
1 established in section 15G.104, as enacted in division I of
2 this Act:
3 .................................................. $ 15,000,000
4 DIVISION III
5 SPORTS TOURISM MARKETING PROGRAM AND FUND —— REPEAL
6 Sec. 6. Section 15F.401, subsection 1, paragraph a, Code
7 2024, is amended to read as follows:
8 a. The authority shall establish, and, at the direction
9 of the board, shall administer a sports tourism marketing and
10 infrastructure program to provide financial assistance for
11 projects that promote sporting events or for infrastructure
12 projects supporting sporting events for organizations of
13 accredited colleges and universities, professional sporting
14 events, and other sporting events in the state.
15 Sec. 7. Section 15F.401, subsection 1, paragraph b, Code
16 2024, is amended by adding the following new subparagraph:
17 NEW SUBPARAGRAPH. (03) “Fund” means the sports tourism
18 infrastructure program fund established in section 15F.404.
19 Sec. 8. Section 15F.401, subsection 2, paragraph a,
20 subparagraph (1), Code 2024, is amended by striking the
21 subparagraph.
22 Sec. 9. Section 15F.401, subsection 2, paragraph a,
23 subparagraph (2), Code 2024, is amended to read as follows:
24 (2) A city or county in the state or a public entity that
25 is a convention and visitors bureau or a district may apply to
26 the authority 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
33 from the sports tourism infrastructure program fund created in
34 section 15F.404 fund for infrastructure projects located in a
35 reinvestment district as defined and approved by the authority
LSB 5961SV (3) 90
-5- jm/ko 5/10
 S.F. 2419
1 pursuant to section 15J.4 or to applicants that have received a
2 rebate of sales tax imposed and collected by retailers pursuant
3 to section 423.4, subsection 5.
4 Sec. 10. Section 15F.401, subsection 4, paragraph b, Code
5 2024, is amended to read as follows:
6 b. An applicant under the program shall not receive
7 financial assistance from the sports tourism marketing
8 program fund created in section 15F.403 or the sports tourism
9 infrastructure program fund created in section 15F.404 fund
10 in an amount exceeding fifty percent of the total cost of the
11 project.
12 Sec. 11. Section 15F.401, subsection 5, Code 2024, is
13 amended to read as follows:
14 5. The board shall make final funding decisions on
15 each application and may approve, deny, defer, or modify
16 applications for financial assistance under the sports tourism
17 marketing and infrastructure program, in its discretion, in
18 order to fund as many projects with the moneys available as
19 possible. The board and the authority may negotiate with
20 applicants regarding the details of projects and the amount and
21 terms of any award. The total amount of financial assistance
22 provided to an applicant from the sports tourism marketing
23 program fund created in section 15F.403 in any one fiscal year
24 shall not exceed five hundred thousand dollars. In making
25 final funding decisions pursuant to this subsection, the board
26 and the authority are exempt from chapter 17A.
27 Sec. 12. Section 15F.401, subsection 6, Code 2024, is
28 amended by striking the subsection and inserting in lieu
29 thereof the following:
30 6. A city, county, or public entity shall not use financial
31 assistance received under the program from the fund as
32 reimbursement for completed projects.
33 Sec. 13. Section 15F.402, subsections 1 and 2, Code 2024,
34 are amended to read as follows:
35 1. Applications for assistance under the sports tourism
LSB 5961SV (3) 90
-6- jm/ko 6/10
 S.F. 2419
1 marketing and infrastructure program established in section
2 15F.401 shall be submitted to the authority. For those
3 applications that meet the eligibility criteria, the authority
4 shall forward the applications to the board and provide a staff
5 review analysis and evaluation to the sports tourism program
6 review committee referred to in subsection 2 and to the board.
7 2. A review committee composed of five members of the
8 board shall review sports tourism marketing and infrastructure
9 program applications forwarded to the board and make
10 recommendations regarding the applications to the authority.
11 The review committee shall consist of members of the board,
12 with one member from each congressional district under section
13 15F.102, subsection 2, paragraph “a”, and one member from the
14 state at large under section 15F.102, subsection 2, paragraph
15 “b”.
16 Sec. 14. Section 15F.404, subsection 2, paragraph a, Code
17 2024, is amended to read as follows:
18 a. Moneys in the fund are appropriated to the authority for
19 purposes of providing financial assistance to cities, counties,
20 and eligible public entities under the sports tourism marketing
21 and infrastructure program established and administered
22 pursuant to this subchapter.
23 Sec. 15. REPEAL. Section 15F.403, Code 2024, is repealed.
24 Sec. 16. TRANSFER OF MONEYS. On the effective date of
25 this division of this Act, any moneys remaining in the sports
26 tourism marketing program fund in section 15F.403, Code 2024,
27 shall be transferred to the Iowa major events tourism fund
28 established in section 15G.104, as enacted in division I of
29 this Act.
30 EXPLANATION
31 The inclusion of this explanation does not constitute agreement with
32 the explanation’s substance by the members of the general assembly.
33 This bill establishes the Iowa major events and tourism
34 program and fund and modifies the sports tourism and marketing
35 infrastructure program.
LSB 5961SV (3) 90
-7- jm/ko 7/10
 S.F. 2419
1 DIVISION I —— IOWA MAJOR EVENTS AND TOURISM PROGRAM AND
2 FUND. The bill requires the economic development authority
3 (authority) to establish an Iowa major events and tourism
4 program (program) and an Iowa major events and tourism fund
5 (fund), and to administer the program.
6 The purpose of the program is to provide financial
7 assistance including but not limited to grants to an entity
8 supporting an event in this state, or an event involving a
9 geographic region that includes this state, and the event
10 generates large attendance, significant publicity, and
11 measurable economic impact on this state. The financial
12 assistance includes payment or reimbursement of costs incurred
13 by the entity to apply or bid for selection as the site
14 event, to plan or conduct the event, and to pay or reimburse
15 any related fees including hosting fees, sanctioning fees,
16 participation fees, operational fees, and bid fees.
17 The bill defines “entity” to mean an Iowa nonprofit
18 organization established to promote economic development
19 and tourism in an area. The bill defines “event” to mean a
20 tourism-oriented athletic contest, convention, music festival,
21 or art festival.
22 The bill requires the authority to establish eligibility
23 criteria for the program by rule. The eligibility criteria
24 must include the requirement that the entity be currently
25 involved in the bidding and selection process for the event the
26 application is based upon; and that the entity must submit an
27 economic analysis of the event with the entity’s application
28 that includes but is not limited to projected hotel and
29 motel room occupancies, and the projected number of attendees
30 the event attracts from this state, other states, and other
31 countries.
32 An application is deemed to meet all eligibility criteria
33 if the state is selected as the event site after