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HB 3156

Modifies provisions for the "Show-Me Sports Investment Act"

2026 Regular Session Introduced by Mike Jones

The bill creates a framework for state financing and tax credits to support large athletic and entertainment facility projects tied to professional sports, with local voter approva

Referred: Emerging Issues(H)
#entertainment #sportsandamusements #politicalsubdivisions
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Bill Summary · HB 3156

Overview

HB 3156 proposes revisions to the Missouri Show-Me Sports Investment Act, expanding and clarifying the state’s ability to assist in financing athletic and entertainment facility projects tied to professional sports franchises. The bill establishes eligibility, funding parameters, tax credit mechanisms, and governance features for projects with high cost thresholds, and adds requirements related to local voter approval for certain large projects.

Main purpose and intent

  • Enable state-level support (through the Department of Economic Development and the Office of Administration) for planning, financing, and undertaking athletic and entertainment facility projects associated with professional sports franchises.
  • Create a framework to provide annual state expenditures, bond financing, and tax credits to incentivize development of large-scale sports/entertainment facilities.
  • Introduce governance and accountability measures, including baseline revenue calculations, project cost thresholds, and local voter approval triggers for expensive projects.

Key provisions and changes

  • Definitions and scope

    • Defines “athletic and entertainment facility” to include venues with seating > 30,000 and related parking, plus components like headquarters or training facilities if within the state.
    • Establishes terms such as “baseline year,” “baseline year state tax revenues,” “project,” “state tax revenues,” and “tax credit.”

  • Eligibility and baseline calculations

    • Applicants must submit an application with baseline year state tax revenue data.
    • Department and commissioner review eligibility and may enter into funding agreements.
    • Department may receive verification information from the Department of Revenue to confirm baseline revenues.

  • Funding and expenditure limits

    • Annual state expenditures for any project are capped at the baseline year state tax revenues for the franchise’s athletic and entertainment facility.
    • Key funding caps and terms:
    • Maximum duration of state appropriations: up to 30 years.
    • Annual appropriation limit: not to exceed the baseline year state tax revenues for the facility.
    • Net bond proceeds financed by state expenditures: may not exceed 50% of total project costs.
    • Additional project prerequisites:
    • Adequate local government involvement or infrastructure investment must be demonstrated.
    • For projects costing more than $100 million, local elections must authorize the project (majority approval).

  • Relocation/default provisions

    • If the franchise relocates or moves facilities out of state during the agreement term, the project is a default event.
    • Consequences include repayment of funds expended, remaining debt service, and related tax credits, with specific calculations.
    • If the default occurs within five years of lease term ending, franchise owners bear remaining debt service costs and related penalties.

  • Tax credits and financing

    • The Board may authorize a separate 50% tax credit on private contributions to the infrastructure development fund for athletic projects.
    • Credit cap: not more than 10% of private investment for a project or $50 million, whichever is less; credits issued over up to three years.
    • Credits are transferable or saleable, may be carried forward up to five years, and do not count toward annual limits in existing tax credit statutes.
    • If a project receives these credits, it cannot also receive tax credits under Section 100.286.

  • Bond authority

    • The Board may issue bonds payable from annual state expenditures to assist in project financing.

  • Other provisions

    • Contributions to legal defense costs for elective officeholders related to duties under this section may be used to cover reasonable legal fees.

Who/what would be affected

  • Professional sports franchises with athletic and entertainment facilities in Missouri, along with associated headquarters or training facilities.
  • State agencies: Department of Economic Development, Office of Administration, and potentially the Missouri Development Finance Board (Board).
  • Local governments and voters, particularly for high-cost projects exceeding $100 million (voter approval required).
  • Taxpayers and private contributors who may receive or transfer tax credits for eligible project funding.
  • Residents and businesses in areas hosting large facilities due to potential infrastructure and public financial commitments.

Procedural and timeline aspects

  • Application process: Applicants submit to the Department of Economic Development with baseline revenue data; director and commissioner assess eligibility and may enter into a funding agreement.
  • Appropriation timeline: Annual state expenditures require annual appropriations.
  • Local approval: Projects over $100 million require a local election outcome favorable to the project (per Chapter 115 requirements).
  • Default remedies: Clear repayment and debt-service consequences in the event of franchise relocation or other default events.
  • Effective date and action history:
    • Referred to Emerging Issues (H) as of May 15, 2026.
    • Previously read and introduced in early 2026.

Note: The bill text specifies a comprehensive framework for funding, tax credits, and risk management tied to large-scale athletic and entertainment facility projects, with emphasis on local buy-in and accountability for public investment.

Compiled from official sources — confirm details with the bill’s official record.

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