SF5101

Purpose

• Establish a new Sports and Events Reimbursement Program to attract and host major sports and events in Minnesota.
• Create a dedicated program account and use generated revenues to reimburse local organizers for eligible event-related costs.

Key idea of the program

• The state would fund a defined list of high-profile events by reimbursing certain costs tied to hosting the event in Minnesota.
• A local organizing committee and a site selection organization work together to secure an event in Minnesota, with reporting and accountability requirements.

Definitions and participants

• Account: The sports and events reimbursement program account in the state treasury.
• Event: A wide range of listed activities, including major sports championships, all-star games, championship events, and other premium events (examples include Big Ten sports, Bowl Season, NCAA championships, NFL Super Bowl, World Cup matches, X Games, PGA championships, Olympics-related trials, Formula 1, and more).
• Local organizing committee: A group with a track record of attracting high-profile events to Minnesota, responsible for promoting and running the event.
• Site selection organization: An organization that can contract with a local organizing committee to bring an event to Minnesota.
• Eligible expenses: Costs paid under an event contract, including preparations, running the event, facility improvements or new facilities, and other related costs.

How funding works (the mechanics)

• The account is created in the state’s special revenue fund; money in the account is available to spend for the program’s purposes.
• Only events on the approved list can receive funding.
• A listed event may receive funding only if a site selection organization selects a Minnesota site after considering sites outside Minnesota, and one of the following:
  • The Minnesota site is the sole site for the event, or
  • The Minnesota site is the sole site for a region that includes Minnesota and one or more adjoining states, and
  • The event is not held more than once in any single year.
• Administration: Before funding decisions, a local organizing committee must submit an application to the commissioner of revenue, including certification of eligibility and site selection documentation. The commissioner can use experts to help with due diligence.
• Rulemaking: The commissioner of revenue can adopt rules to implement the program.
• Reporting and accountability: Local organizing committees must provide annual audited financial statements, attendance data (including non-residents), and estimated economic impact. They must also report after the event with attendance figures and other requested information.

Eligible uses of funds

• Payments under event contracts, including:
  • Pre-event preparations and setup,
  • Costs of conducting the event,
  • Improvements or renovations to existing facilities,
  • Acquisition or construction of new facilities or other related facilities.

Relationship to existing law and changes

• Creates a new Minnesota statute: 116J.8753 (Sports and Events Reimbursement Program) with defined terms, administration, and funding rules.
• Adds mechanisms to direct revenue from state taxes (a portion of revenues from taxes under the relevant chapter) to the SERP account, as determined by another statute (270C.45).
• Requires coordination with site selection organizations, local organizers, and the commissioner of revenue for administration and reporting.
• Amends or adds several cross-references to existing statutes to support funding, deposits, and reporting.

Significant changes to existing law

• Establishes a dedicated funding account (sports and events reimbursement program account) within the state’s special revenue fund to support eligible events.
• Creates a mandatory flow of a share of certain tax revenues into the new program account.
• Introduces a formal, auditable framework for eligibility, site selection, administration, allowable expenses, and post-event reporting for this new program.

Potential implications

• Could influence which large events Minnesota competes to host, prioritizing events with a Minnesota site or regional presence.
• Creates ongoing reporting and financial transparency requirements for local organizers.
• Ties tax revenue streams to the hosting of major events, aiming to offset public costs through event-related revenue.

Relevant Terms - Sports and Events Reimbursement Program - Local organizing committee - Site selection organization - Event - Eligible expenses - Special revenue fund - Sports and events reimbursement program account - Minnesota Tax Revenue deposits (168E.09 reference) - Commissioner of revenue - Audited financial statements - Economic impact - Attendance (nonresident attendees) - Sole site / regional site - One event per year - Site contracts and event contracts - Due diligence - Rulemaking - Facility improvements and construction