Bill Text: IA SF2394 | 2023-2024 | 90th General Assembly | Introduced

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Bill Title: A bill for an act relating to economic development by establishing the Iowa major events and tourism program and fund, modifying the sports tourism and marketing infrastructure program, and making appropriations.(See SF 2419.)

Spectrum: Partisan Bill (Republican 1-0)

Status: (Introduced - Dead) 2024-03-28 - Committee report approving bill, renumbered as SF 2419. S.J. 668. [SF2394 Detail]

Download: Iowa-2023-SF2394-Introduced.html

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Senate File 2394 - Introduced
SENATE FILE 2394
BY KOELKER
A BILL FOR
An Act relating to economic development by establishing the
Iowa major events and tourism program and fund, modifying
the sports tourism and marketing infrastructure program, and
making appropriations.
BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA:
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DIVISION I
IOWA MAJOR EVENTS AND TOURISM PROGRAM AND FUND
Section 1. NEW SECTION . 15F.410 Definitions.
As used in this subchapter, unless the context otherwise
requires:
1. “Entity” means an Iowa nonprofit organization established
to promote economic development and tourism in an area.
2. “Event” means a tourism-oriented athletic contest,
convention, music festival, or art festival.
3. “Financial assistance” means assistance provided only
from the funds, rights, and assets legally available to the
authority and includes but is not limited to assistance in the
form of grants.
4. “Fund” means the Iowa major events and tourism fund
established in section 15F.413.
5. “Program” means the Iowa major events and tourism program
established in section 15F.411.
Sec. 2. NEW SECTION . 15F.411 Iowa major events and tourism
program —— eligibility.
1. The authority shall establish, and, at the discretion
of the board, administer the Iowa major events and tourism
program to provide financial assistance to eligible entities
that support events in this state, or support events involving
a geographic region that includes this state, and the event
generates large attendance, significant publicity, and has a
measurable economic impact on this state.
2. a. The authority shall establish eligibility criteria
for the program by rule. The eligibility criteria must include
all of the following:
(1) The entity must currently be involved in the bidding and
selection process for the event for which the entity submits
an application.
(2) The entity must submit an economic analysis of the event
with the entity’s application that includes but is not limited
to all of the following:
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(a) Projected hotel and motel room occupancies during the
event.
(b) Projected number of event attendees from this state,
other states, and other countries.
b. Notwithstanding paragraph “a” , an entity shall be deemed
eligible for the program if any of the following apply:
(1) After a highly competitive bidding and selection
process involving potential sites not located in this state, a
location in Iowa has been selected for the entity’s event.
(2) This state serves as the sole site for the entity’s
event.
(3) The sole site for the entity’s event is a geographical
region that includes this state and one or more contiguous
states.
3. The program shall be administered for the purpose of
awarding financial assistance to an eligible entity for any of
the following purposes:
a. To pay for or reimburse the costs incurred by the entity
to apply or bid for selection as the site for the event.
b. To pay for or reimburse the costs incurred by the
entity to plan or to conduct the event, including any of the
following:
(1) Fees charged by a site selection organization as a
prerequisite to hosting the event, including but not limited
to hosting fees, sanctioning fees, participation fees, or bid
fees.
(2) Costs for performance bonds or insurance required of the
host for hosting the event.
(3) Public safety and security expenses.
(4) Advertising expenses.
(5) Costs to prepare the economic analysis required under
subsection 2, paragraph “a” .
(6) Costs incurred for transportation and parking services
that exceed the revenue generated from providing such services
during the event.
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(7) Other costs incurred by the entity that are required to
host the event.
Sec. 3. NEW SECTION . 15F.412 Program —— application,
review, and funding.
1. An application for financial assistance under the
program shall be submitted to the authority. For each
application that meets the eligibility criteria under section
15F.411, subsection 2, the authority shall conduct a staff
evaluation of the application and forward the application and
staff evaluation to the board.
2. When evaluating an application, the authority shall
consider, at a minimum, all of the following:
a. The potential impact of the event on the local, regional,
and state economies.
b. The event’s potential to attract visitors from this
state, other states, and other countries.
c. The amount of positive advertising or media coverage the
event may generate.
d. The quality, size, and scope of the event.
e. The ratio of public-to-private investment required for
the event.
3. a. (1) Upon review of the staff evaluation, the board
shall make the final funding decision on each application
and may approve, deny, defer, or modify each application, in
the board’s discretion, to fund as many events as possible
with the moneys available. The board and the authority may
negotiate with an eligible applicant regarding the details of
the applicant’s proposed event and the amount and terms of
any financial assistance. In making final funding decisions
pursuant to this subsection, the board and the authority shall
be exempt from chapter 17A.
(2) An application and staff evaluation forwarded to
the board under subsection 1 shall remain eligible for
consideration by the board under subparagraph (1) for up to two
years from the date of receipt of the application by the board.
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b. In order to be awarded financial assistance under the
program, an applicant must demonstrate the ability to provide
matching funds for the event that equal at least fifty percent
of the award of financial assistance.
Sec. 4. NEW SECTION . 15F.413 Iowa major events and tourism
fund.
1. a. The authority shall establish an Iowa major events
and tourism fund pursuant to section 15.106A, subsection 1,
paragraph “o” , for purposes of providing financial assistance
as described in this subchapter. The fund may be administered
as a revolving fund and shall consist of any moneys transferred
to the fund and any moneys appropriated by the general assembly
for purposes of this subchapter.
b. (1) Notwithstanding section 8.33, moneys appropriated
in this section that remain unencumbered or unobligated at the
close of the fiscal year shall not revert but shall remain
available for expenditure for the purposes designated until the
close of the fiscal year following the succeeding fiscal year.
(2) Moneys encumbered or obligated pursuant to financial
assistance awarded under section 15F.412, subsection 3, shall
be disbursed by the authority within five calendar years from
the date of encumbrance or obligation, or the moneys shall
revert to the state treasury and shall be credited to the funds
from which the appropriations were made as provided in section
8.33.
c. Notwithstanding section 12C.7, subsection 2, interest or
earnings on moneys deposited in the fund shall be credited to
the fund.
2. a. Moneys in the fund are appropriated to the authority
for purposes of providing financial assistance under the
program. The authority may not use more than five percent of
the moneys in the fund at the beginning of each fiscal year for
purposes of administrative costs, technical assistance, and
other program support.
b. An entity that is awarded financial assistance pursuant
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to this subchapter is not eligible to receive financial
assistance under the sports tourism infrastructure program
pursuant to subchapter IV.
Sec. 5. CODE EDITOR DIRECTIVE. The Code editor shall
designate sections 15F.410 through 15F.413, as enacted in this
division of this Act, as subchapter V entitled, “Iowa Major
Events and Tourism Program”.
DIVISION II
APPROPRIATIONS FROM SPORTS WAGERING RECEIPTS FUND
Sec. 6. APPROPRIATIONS —— SPORTS WAGERING RECEIPTS
FUND. There is appropriated from the sports wagering receipts
fund created in section 8.57 to the authority for the fiscal
year beginning July 1, 2024, and ending June 30, 2025, the
following amount, or so much thereof as is necessary, to be
used for the purposes designated:
For deposit into the Iowa major events and tourism fund
established in section 15F.413, as enacted in division I of
this Act:
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 15,000,000
DIVISION III
SPORTS TOURISM MARKETING PROGRAM AND FUND —— REPEAL
Sec. 7. Section 15F.401, subsection 1, paragraph a, Code
2024, is amended to read as follows:
a. The authority shall establish, and, at the direction
of the board, shall administer a sports tourism marketing and
infrastructure program to provide financial assistance for
projects that promote sporting events or for infrastructure
projects supporting sporting events for organizations of
accredited colleges and universities, professional sporting
events, and other sporting events in the state.
Sec. 8. Section 15F.401, subsection 1, paragraph b, Code
2024, is amended by adding the following new subparagraph:
NEW SUBPARAGRAPH . (03) “Fund” means the sports tourism
infrastructure program fund established in section 15F.404.
Sec. 9. Section 15F.401, subsection 2, paragraph a,
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subparagraph (1), Code 2024, is amended by striking the
subparagraph.
Sec. 10. Section 15F.401, subsection 2, paragraph a,
subparagraph (2), Code 2024, is amended to read as follows:
(2) A city or county in the state or a public entity that
is a convention and visitors bureau or a district may apply to
the authority for financial assistance from the sports tourism
infrastructure program fund created in section 15F.404 fund for
an infrastructure project that actively and directly supports
sporting events for accredited colleges and universities,
professional sporting events, and other sporting events in the
area served by the city, county, or public entity. However,
financial assistance shall not be provided to an applicant
from the sports tourism infrastructure program fund created in
section 15F.404 fund for infrastructure projects located in a
reinvestment district as defined and approved by the authority
pursuant to section 15J.4 or to applicants that have received a
rebate of sales tax imposed and collected by retailers pursuant
to section 423.4, subsection 5 .
Sec. 11. Section 15F.401, subsection 4, paragraph b, Code
2024, is amended to read as follows:
b. An applicant under the program shall not receive
financial assistance from the sports tourism marketing
program fund created in section 15F.403 or the sports tourism
infrastructure program fund created in section 15F.404 fund
in an amount exceeding fifty percent of the total cost of the
project.
Sec. 12. Section 15F.401, subsection 5, Code 2024, is
amended to read as follows:
5. The board shall make final funding decisions on
each application and may approve, deny, defer, or modify
applications for financial assistance under the sports tourism
marketing and infrastructure program, in its discretion, in
order to fund as many projects with the moneys available as
possible. The board and the authority may negotiate with
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applicants regarding the details of projects and the amount and
terms of any award. The total amount of financial assistance
provided to an applicant from the sports tourism marketing
program fund created in section 15F.403 in any one fiscal year
shall not exceed five hundred thousand dollars. In making
final funding decisions pursuant to this subsection , the board
and the authority are exempt from chapter 17A .
Sec. 13. Section 15F.401, subsection 6, Code 2024, is
amended by striking the subsection and inserting in lieu
thereof the following:
6. A city, county, or public entity shall not use financial
assistance received under the program from the fund as
reimbursement for completed projects.
Sec. 14. Section 15F.402, subsections 1 and 2, Code 2024,
are amended to read as follows:
1. Applications for assistance under the sports tourism
marketing and infrastructure program established in section
15F.401 shall be submitted to the authority. For those
applications that meet the eligibility criteria, the authority
shall forward the applications to the board and provide a staff
review analysis and evaluation to the sports tourism program
review committee referred to in subsection 2 and to the board.
2. A review committee composed of five members of the
board shall review sports tourism marketing and infrastructure
program applications forwarded to the board and make
recommendations regarding the applications to the authority.
The review committee shall consist of members of the board,
with one member from each congressional district under section
15F.102, subsection 2 , paragraph “a” , and one member from the
state at large under section 15F.102, subsection 2 , paragraph
“b” .
Sec. 15. Section 15F.404, subsection 2, paragraph a, Code
2024, is amended to read as follows:
a. Moneys in the fund are appropriated to the authority for
purposes of providing financial assistance to cities, counties,
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and eligible public entities under the sports tourism marketing
and infrastructure program established and administered
pursuant to this subchapter .
Sec. 16. REPEAL. Section 15F.403, Code 2024, is repealed.
Sec. 17. TRANSFER OF MONEYS. On the effective date of
this division of this Act, any moneys remaining in the sports
tourism marketing program fund in section 15F.403, Code 2024,
shall be transferred to the Iowa major events tourism fund
established in section 15F.413, as enacted in division I of
this Act.
EXPLANATION
The inclusion of this explanation does not constitute agreement with
the explanation’s substance by the members of the general assembly.
This bill relates to economic development by establishing
the Iowa major events and tourism program and fund modifying
the sports tourism and marketing infrastructure program, and
making appropriations.
DIVISION I —— IOWA MAJOR EVENTS AND TOURISM PROGRAM AND
FUND. The bill requires the economic development authority
(authority) to establish an Iowa major events and tourism
program (program) and an Iowa major events and tourism fund
(fund), and at the discretion of the enhance Iowa board (board)
the authority shall administer the program.
The purpose of the program is to provide financial
assistance including but not limited to grants to an entity
supporting an event in this state, or an event involving a
geographic region that includes this state, and the event
generates large attendance, significant publicity, and
measurable economic impact on this state.
The bill defines “entity” to mean an Iowa nonprofit
organization established to promote economic development
and tourism in an area. The bill defines “event” to mean a
tourism-oriented athletic contest, convention, music festival,
or art festival.
The bill requires the authority to establish eligibility
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criteria for the program by rule. The eligibility criteria
must include the requirement that the entity be currently
involved in the bidding and selection process for the event the
application is based upon; and that the entity must submit an
economic analysis of the event with the entity’s application
that includes but is not limited to projected hotel and motel
room occupancies, and the projected number of visitors to the
event.
An application is deemed to meet all eligibility criteria
if the state is selected as the event site after a highly
competitive bidding and selection process involving sites
in other states, if this state serves as the sole site for
the event, or if the sole site for the event involves a
geographical region that includes this state and contiguous
states.
The authority shall administer the program for the purpose
of awarding financial assistance to an eligible entity
to pay for or reimburse costs associated with the event
including costs to apply or bid for the site of the event,
planning costs, fees, insurance, public safety and security,
advertising, preparation of the economic analysis, and
transportation and parking services during the event.
If an entity’s application meets the eligibility criteria
established in the bill, the staff of the authority must
perform an evaluation of the application and forward the
application and evaluation to the board. In evaluating an
application, the bill requires the authority to consider the
impact on the economy, the potential to attract visitors,
advertising and media coverage, public-to-private investment
ratios, and the quality, size, and scope of the event.
Upon review of the staff evaluation, the bill specifies the
board may approve, deny, defer, or modify the application. The
bill allows the board and the authority to negotiate with the
entity regarding the details of the event and the amount and
terms of the financial assistance.
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An application submitted to the authority under the bill
remains eligible for consideration by the board for up to two
years from the date of receipt of the application by the board.
The bill requires applicants to demonstrate the ability to
provide matching funds equal to at least 50 percent of the
financial assistance awarded to the applicant.
The bill requires the authority to establish a fund for
the purposes of providing financial assistance under the
program. The bill specifies that the authority may administer
the fund as a revolving fund. Moneys in the fund that remain
unencumbered or unobligated at the close of the fiscal year do
not revert and remain available until the close of the fiscal
year following the succeeding fiscal year. Moneys in the
fund that are encumbered or obligated pursuant to financial
assistance awarded under the program shall be disbursed by
the authority within five years of the date of encumbrance or
obligation, or the moneys shall revert to the state treasury.
Moneys in the fund are appropriated to the authority to provide
financial assistance to an entity under the program.
An entity that is awarded financial assistance pursuant to
the bill is not eligible to receive financial assistance under
the sports tourism infrastructure program.
DIVISION II —— APPROPRIATIONS FROM SPORTS WAGERING RECEIPTS
FUND. In FY 2024-2025, the bill appropriates $15 million from
the sports receipts wagering fund to the Iowa major tourism
events and tourism fund for the purpose of providing financial
assistance to an eligible applicant as described in the bill.
DIVISION III —— SPORTS TOURISM MARKETING PROGRAM AND FUND
—— REPEAL. The bill modifies the sports tourism marketing
and infrastructure program by repealing the sports tourism
marketing program and fund. The bill retains the sports
tourism infrastructure program and fund. Upon the effective
date of the division, the bill transfers the remaining moneys
in the sports tourism marketing program fund to the Iowa major
events and tourism program fund established in the bill for the
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uses described in the bill.
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