Concerning the regulation and support of leisure activities, including by providing for gambling games and sports wagering enforcement, license fees, tax rates, and the use of associated revenue, establishing the Iowa major events and tourism program and fund, modifying the sports tourism marketing and infrastructure program, making appropriations, and including effective date provisions

10, the state racing and gaming commission (commission) must use the amount appropriated to the commission plus the gaming enforcement costs of DPS’s division of criminal investigation. The portion of the fees associated with such enforcement costs is deposited in the gaming enforcement revolving fund to be annually appropriated by the general assembly to DPS for gaming enforcement. The bill strikes the portion of the fees that is based on DPS enforcement costs, and the associated deposit in the gaming enforcement revolving fund.4(4)). Under current law, the annual license fee to operate an excursion gambling boat or gambling structure is $5 per person capacity. The bill increases the rate to $10 per person capacity. Under current law, a tax is imposed on the adjusted gross receipts received each fiscal year from excursion gambling boats, gambling structures, and racetrack enclosures conducting gambling games. The rate is percent on the first $1 million and percent on the next $2 million. Over $3 million, the tax rate is percent for an excursion gambling boat or gambling structure, and between and percent for a racetrack enclosure based on the existence of an excursion gambling boat or gambling structure in the same county, whether the racetrack enclosure has been issued a table games license, and whether adjusted gross receipts reached $100 million.125 percent for a racetrack enclosure, on all adjusted gross receipts each fiscal year. _____ being credited to the rebuild Iowa infrastructure fund as provided under current law, an amount is credited to the gaming enforcement revolving fund up to the amount appropriated by the general assembly to DPS for gaming enforcement from that fund for that fiscal year. This division of the bill takes effect January 1, 2026. 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 to 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 financial assistance includes payment or reimbursement of costs incurred by the entity to apply or bid for selection as the site event, to plan or conduct the event, and to pay or reimburse any related fees including hosting fees, sanctioning fees, participation fees, operational fees, and bid fees. 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 criteria for the program by rule. _____ the event attracts from this state, other states, and other countries. 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 geographic region that includes this state and one or more contiguous states. 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 economic development authority board (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 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. An application 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 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 authority may administer the fund as a revolving fund. _____ 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. For FY 2025-2026, the bill appropriates $15 million from the sports wagering receipts fund to the Iowa major events and tourism fund. 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 fund.