HF4949

Purpose

Creates a new state program called the sports and events reimbursement program to help Minnesota attract and host major sports and other high-profile events by reimbursing certain costs to event hosts.

What the bill would do

• Establish a dedicated account in the state treasury to fund reimbursements.
• Define eligible events and the entities that can apply for funding.
• Require a formal application process, due diligence, and reporting to ensure proper use of funds.
• Allow funds to be used for costs related to preparing for and conducting events, including facility improvements or new facilities.
• Amend existing law to deposit a portion of tax revenues directly attributable to an eligible event into the new program account.

Key definitions and scope

• Account: The sports and events reimbursement program account in the state treasury.
• Event: A broad list of major events and activities, including examples such as:
  • Amateur Athletic Union Junior Olympic Games
  • Big Ten conference events (e.g., football, basketball, volleyball, wrestling)
  • Bowl Season and College Football Playoff
  • Major international and national sports events (e.g., CONCACAF Gold Cup, Copa America, Formula 1 US Grand Prix, IIHF World Juniors, ISU Worlds, FIFA/World Cup-related matches, X Games, PGA Championship-level events, UFC, WrestleMania and related Premium Live Events, Olympics trials, and more)
• Local organizing committee: A body with a proven track record of attracting high-profile events to Minnesota, responsible for promotion and execution of the event.
• Site selection organization: An organization capable of contracting for the event with the local organizing committee and selecting a site for the event.
• Program: The sports and events reimbursement program.

How funding works

• Funding source: Money in the account is appropriated to the commissioner of revenue to fund eligible events, with money earned by the account remaining available until expended.
• Eligible events: Only events listed in the bill’s definition of “Event” can receive funding under this program.
• Site selection requirements: An event may be funded if a site selection organization (a) considers sites outside Minnesota and then selects a Minnesota site, and (b) the site is selected as the sole site or as the sole site for a region that includes Minnesota and adjoining states, and (c) the event is not held more than once per year.
• Funding trigger: The event must be selected as Minnesota’s site by a site selection organization under the above conditions to be eligible for funding.

Administration, oversight, and reporting

• Application process: Before any funding decision, the local organizing committee must submit an application to the commissioner of revenue with a certification that the event meets eligibility requirements and documentation from the site selection organization.
• Due diligence: The commissioner may hire professionals to assist with due diligence in administering the program.
• Allowable expenses: Funds may be used to fulfill state obligations to a local organizing committee under an event contract, including:
  • Preparatory and operational costs for conducting the event
  • Costs for facility improvements, renovations, or new facilities
• Reporting requirements: Local organizing committees must provide:
  • Annual audited financial statements and attendance data, including estimates of nonresident attendees and the event’s economic impact
  • A financial statement every year, with a deadline after the period ends
  • Post-event information such as attendance figures and other public financial information as requested
• Rulemaking: The commissioner of revenue may adopt rules to implement the section.

Significant changes to existing law

• Creates a new Sports and Events Reimbursement Program within Minnesota law (new section 116J.8753) and defines its administration and funding mechanisms.
• Amends Minnesota Statutes to deposit a portion of revenues from taxes imposed under the applicable chapter directly attributable to an eligible event into the new program account (amendment to section 168E.09).
• Proposes coding for new law in multiple chapters (116J and 270C), expanding how event-related revenues are allocated and reported.

Expected impact

• Provides a structured mechanism to subsidize hosting major events in Minnesota, with government funds allocated for eligible project costs and facilities.
• Requires accountability through site selection processes, audits, and detailed reporting on attendance and economic impact.
• Aims to increase tourism, visitor spending, and statewide exposure by attracting high-profile events.

Relevant Terms sports and events reimbursement program; account; local organizing committee; site selection organization; event; eligible expenses; annual audited statements; attendance; nonresident attendees; economic impact; special revenue fund; commissioner of revenue; event contract; site region; sole site; regional site; due diligence; rulemaking; Minnesota tax revenues attributable to an event; Minnesota.