Senate Bill 0866

CODING: Words stricken are deletions; words underlined are additions.



    Florida Senate - 1998                                   SB 866

    By Senator Meadows





    30-673-98                                        See CS/HB 943

  1                      A bill to be entitled

  2         An act relating to professional sports

  3         franchises; amending s. 288.1162, F.S.;

  4         providing for certification of a retained

  5         spring training franchise facility by the

  6         Office of Tourism, Trade, and Economic

  7         Development, upon determination that certain

  8         requirements have been met; providing the uses

  9         that such facility may make of funds provided

10         pursuant to s. 212.20, F.S.; increasing the

11         number of facilities that may be certified

12         under that section; providing for the creation

13         and maintenance of amateur sports fields by

14         certified applicants; providing that an

15         applicant certified as a retained spring

16         training franchise facility is required to have

17         a contract with the Department of Labor and

18         Employment Security for the hiring of WAGES

19         participants; providing contract requirements;

20         providing for an annual report on the extent of

21         WAGES hiring by the applicant; amending s.

22         212.20, F.S.; providing for a monthly

23         distribution of a portion of the revenues of

24         the tax on sales, use, and other transactions

25         to a certified retained spring training

26         franchise facility for a specified period;

27         providing an effective date.

28

29  Be It Enacted by the Legislature of the State of Florida:

30

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    Florida Senate - 1998                                   SB 866
    30-673-98                                        See CS/HB 943




  1         Section 1.  Section 288.1162, Florida Statutes, is

  2  amended to read:

  3         288.1162  Professional sports franchises; spring

  4  training franchises; duties.--

  5         (1)  The Office of Tourism, Trade, and Economic

  6  Development shall serve as the state agency for screening

  7  applicants for state funding pursuant to s. 212.20 and for

  8  certifying an applicant as a "facility for a new professional

  9  sports franchise," a "facility for a retained professional

10  sports franchise," or a "new spring training franchise

11  facility;." or a "retained spring training franchise

12  facility."

13         (2)  The Office of Tourism, Trade, and Economic

14  Development shall develop rules for the receipt and processing

15  of applications for funding pursuant to s. 212.20.

16         (3)  As used in this section:

17         (a)  "New professional sports franchise" means a

18  professional sports franchise that is not based in this state

19  prior to April 1, 1987.

20         (b)  "Retained professional sports franchise" means a

21  professional sports franchise that has had a league-authorized

22  location in this state on or before December 31, 1976, and has

23  continuously remained at that location, and has never been

24  located at a facility that has been previously certified under

25  any provision of this section.

26         (4)  Prior to certifying an applicant as a "facility

27  for a new professional sports franchise" or a "facility for a

28  retained professional sports franchise," the Office of

29  Tourism, Trade, and Economic Development must determine that:

30         (a)  A "unit of local government" as defined in s.

31  218.369 is responsible for the construction, management, or

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    Florida Senate - 1998                                   SB 866
    30-673-98                                        See CS/HB 943




  1  operation of the professional sports franchise facility or

  2  holds title to the property on which the professional sports

  3  franchise facility is located.

  4         (b)  The applicant has a verified copy of a signed

  5  agreement with a new professional sports franchise for the use

  6  of the facility for a term of at least 10 years, or in the

  7  case of a retained professional sports franchise, an agreement

  8  for use of the facility for a term of at least 20 years.

  9         (c)  The applicant has a verified copy of the approval

10  from the governing authority of the league in which the new

11  professional sports franchise exists authorizing the location

12  of the professional sports franchise in this state after April

13  1, 1987, or in the case of a retained professional sports

14  franchise, verified evidence that it has had a

15  league-authorized location in this state on or before December

16  31, 1976. The term "league" means the National League or the

17  American League of Major League Baseball, the National

18  Basketball Association, the National Football League, or the

19  National Hockey League.

20         (d)  The applicant has projections, verified by the

21  Office of Tourism, Trade, and Economic Development, which

22  demonstrate that the new or retained professional sports

23  franchise will attract a paid attendance of more than 300,000

24  annually.

25         (e)  The applicant has an independent analysis or

26  study, verified by the Office of Tourism, Trade, and Economic

27  Development, which demonstrates that the amount of the

28  revenues generated by the taxes imposed under chapter 212 with

29  respect to the use and operation of the professional sports

30  franchise facility will equal or exceed $2 million annually.

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    Florida Senate - 1998                                   SB 866
    30-673-98                                        See CS/HB 943




  1         (f)  The municipality in which the facility for a new

  2  or retained professional sports franchise is located, or the

  3  county if the facility for a new or retained professional

  4  sports franchise is located in an unincorporated area, has

  5  certified by resolution after a public hearing that the

  6  application serves a public purpose.

  7         (g)  The applicant has demonstrated that it has

  8  provided, is capable of providing, or has financial or other

  9  commitments to provide more than one-half of the costs

10  incurred or related to the improvement and development of the

11  facility.

12         (h)  No applicant previously certified under any

13  provision of this section who has received funding under such

14  certification shall be eligible for an additional

15  certification.

16         (5)  As used in this section, the term:

17         (a)  "New spring training franchise" means a spring

18  training franchise that is not based in this state prior to

19  July 1, 1990.

20         (b)  "Retained spring training franchise" means a

21  spring training franchise that located in this state in 1955,

22  that replaced a spring training franchise that had been

23  located continuously at the same publicly owned stadium for 33

24  years, and that does not play its regular major league

25  baseball games in the same city in which it trains.

26         (6)  Prior to certifying an applicant as a "new spring

27  training franchise facility," the Office of Tourism, Trade,

28  and Economic Development must determine that:

29         (a)  A "unit of local government" as defined in s.

30  218.369 is responsible for the construction, management, or

31  operation of the new spring training franchise facility or

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    Florida Senate - 1998                                   SB 866
    30-673-98                                        See CS/HB 943




  1  holds title to the property on which the new spring training

  2  franchise facility is located.

  3         (b)  The applicant has a verified copy of a signed

  4  agreement with a new spring training franchise for the use of

  5  the facility for a term of at least 15 years.

  6         (c)  The applicant has a financial commitment to

  7  provide 50 percent or more of the funds required by an

  8  agreement for the use of the facility by the new spring

  9  training franchise.

10         (d)  The proposed facility for the new spring training

11  franchise is located within 20 miles of an interstate or other

12  limited-access highway system.

13         (e)  The applicant has projections, verified by the

14  Office of Tourism, Trade, and Economic Development, which

15  demonstrate that the new spring training franchise facility

16  will attract a paid attendance of at least 50,000 annually.

17         (f)  The new spring training franchise facility is

18  located in a county that is levying a tourist development tax

19  pursuant to s. 125.0104(3)(b), (c), (d), and (l), at the rate

20  of 4 percent by March 1, 1992, and, 87.5 percent of the

21  proceeds from such tax are dedicated for the construction of a

22  spring training complex.

23         (7)(a)  Before certifying an applicant as a "retained

24  spring training franchise facility," the Office of Tourism,

25  Trade, and Economic Development must determine that:

26         1.  A unit of local government, as defined in s.

27  218.369, is responsible for the construction, management, or

28  operation of the retained spring training franchise facility

29  or holds title to the property on which the retained spring

30  training franchise facility is located.

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    Florida Senate - 1998                                   SB 866
    30-673-98                                        See CS/HB 943




  1         2.  The retained spring training franchise will conduct

  2  additional training activities at a different site within the

  3  county in which the retained spring training franchise

  4  facility is located.

  5         3.  The applicant has projections, verified by the

  6  Office of Tourism, Trade, and Economic Development, which

  7  demonstrate that the amount of the revenues generated by the

  8  taxes imposed under chapter 212 with respect to the use and

  9  operation of the retained spring training franchise facility

10  will equal or exceed $1.2 million annually.

11         4.  The retained spring training franchise will sign a

12  lease agreement for a period of no less than 15 years with the

13  applicant at the completion of its existing short-term

14  agreement.

15         (b)  The Office of Tourism, Trade, and Economic

16  Development shall consider the value of the land and the

17  existing stadium toward any required contribution by the

18  applicant for costs incurred or related to the improvement and

19  development of the facility.

20         (8)(7)  An applicant certified as a facility for a new

21  professional sports franchise or a facility for a retained

22  professional sports franchise or as a new spring training

23  franchise facility or a retained spring training franchise

24  facility may use funds provided pursuant to s. 212.20 only for

25  the public purpose of paying for the construction,

26  reconstruction, or renovation of a facility for a new

27  professional sports franchise, a facility for a retained

28  professional sports franchise, or a new spring training

29  franchise facility, or a retained spring training franchise

30  facility or to pay or pledge for the payment of debt service

31  on, or to fund debt service reserve funds, arbitrage rebate

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    Florida Senate - 1998                                   SB 866
    30-673-98                                        See CS/HB 943




  1  obligations, or other amounts payable with respect to, bonds

  2  issued for the construction, reconstruction, or renovation of

  3  such facility or for the reimbursement of such costs or the

  4  refinancing of bonds issued for such purposes.

  5         (9)(8)  The Office of Tourism, Trade, and Economic

  6  Development shall notify the Department of Revenue of any

  7  facility certified as a facility for a new professional sports

  8  franchise or a facility for a retained professional sports

  9  franchise or as a new spring training franchise facility or a

10  retained spring training franchise facility.  The Office of

11  Tourism, Trade, and Economic Development may certify no more

12  than 10 eight facilities as facilities for a new professional

13  sports franchise, as facilities for a retained professional

14  sports franchise, or as new spring training franchise

15  facilities, or as retained spring training franchise

16  facilities, including in such total any facilities certified

17  by the Department of Commerce before July 1, 1996. The office

18  may make no more than one certification for any facility, and

19  shall make no more than one certification for a retained

20  spring training franchise facility.

21         (10)(9)  The Department of Revenue may audit as

22  provided in s. 213.34 to verify that the distributions

23  pursuant to this section have been expended as required in

24  this section. Such information is subject to the

25  confidentiality requirements of chapter 213. If the Department

26  of Revenue determines that the distributions pursuant to this

27  section have not been expended as required by this section, it

28  may pursue recovery of such funds pursuant to the laws and

29  rules governing the assessment of taxes.

30         (11)(10)  An applicant shall not be qualified for

31  certification under this section if the franchise formed the

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    Florida Senate - 1998                                   SB 866
    30-673-98                                        See CS/HB 943




  1  basis for a previous certification, unless the previous

  2  certification was withdrawn by the facility or invalidated by

  3  the Office of Tourism, Trade, and Economic Development or the

  4  Department of Commerce before any funds were distributed

  5  pursuant to s. 212.20. This subsection does not disqualify an

  6  applicant if the previous certification occurred between May

  7  23, 1993, and May 25, 1993; however, any funds to be

  8  distributed pursuant to s. 212.20 for the second certification

  9  shall be offset by the amount distributed to the previous

10  certified facility. Distribution of funds for the second

11  certification shall not be made until all amounts payable for

12  the first certification have been distributed.

13         (12)  An applicant certified by this section after July

14  1, 1998, shall fund the creation and maintenance of fields for

15  amateur sports activities as recommended by the county in

16  which the applicant's certified facility is located.  These

17  amateur sports fields shall include, but not be limited to,

18  those used for baseball, softball, basketball, or football.

19  These fields shall be open to the public without charge and

20  may be publicly owned and operated.

21         (13)  The Office of Tourism, Trade, and Economic

22  Development shall, in addition to any other requirements of

23  this section, determine that an applicant that has been

24  certified under this section as a retained spring training

25  franchise facility has entered into a contract with the

26  Department of Labor and Employment Security in which the

27  applicant agrees to register with the Work and Gain Economic

28  Self-Sufficiency (WAGES) Program Business Registry established

29  by the local WAGES coalition for the area in which the

30  applicant is located.  Such contract shall further provide

31  that the applicant shall hire WAGES program participants to

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    Florida Senate - 1998                                   SB 866
    30-673-98                                        See CS/HB 943




  1  the maximum extent possible and shall provide for appropriate

  2  monitoring and training of such employees.  The applicant

  3  shall agree to employ a specified number of WAGES participants

  4  in each year that it receives a distribution under s. 212.20.

  5  The number of WAGES participants to be employed by the

  6  applicant shall be based upon the applicant's good faith

  7  efforts, workforce availability, suitable jobs, and in keeping

  8  with the facility's minimum standards of employment as

  9  provided in the contract with the department.  The applicant

10  may renegotiate the contract and employ fewer program

11  participants if the applicant demonstrates to the satisfaction

12  of the department that due to economic conditions or the

13  nature of its business in a given year the requirement to hire

14  the specified number of employees is unattainable.  Each

15  applicant subject to the requirements of this subsection shall

16  report to the Governor, the Speaker of the House of

17  Representatives, and the President of the Senate by December

18  31 of each year in which the applicant receives a distribution

19  under s. 212.20 on the extent to which its employees are WAGES

20  participants.

21         Section 2.  Paragraph (f) of subsection (6) of section

22  212.20, Florida Statutes, is amended to read:

23         212.20  Funds collected, disposition; additional powers

24  of department; operational expense; refund of taxes

25  adjudicated unconstitutionally collected.--

26         (6)  Distribution of all proceeds under this chapter

27  shall be as follows:

28         (f)  The proceeds of all other taxes and fees imposed

29  pursuant to this chapter shall be distributed as follows:

30         1.  In any fiscal year, the greater of $500 million,

31  minus an amount equal to 4.6 percent of the proceeds of the

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    Florida Senate - 1998                                   SB 866
    30-673-98                                        See CS/HB 943




  1  taxes collected pursuant to chapter 201, or 5 percent of all

  2  other taxes and fees imposed pursuant to this chapter shall be

  3  deposited in monthly installments into the General Revenue

  4  Fund.

  5         2.  Two-tenths of one percent shall be transferred to

  6  the Solid Waste Management Trust Fund.

  7         3.  After the distribution under subparagraphs 1. and

  8  2., 9.653 percent of the amount remitted by a sales tax dealer

  9  located within a participating county pursuant to s. 218.61

10  shall be transferred into the Local Government Half-cent Sales

11  Tax Clearing Trust Fund.

12         4.  After the distribution under subparagraphs 1., 2.,

13  and 3., 0.054 percent shall be transferred to the Local

14  Government Half-cent Sales Tax Clearing Trust Fund and

15  distributed pursuant to s. 218.65.

16         5.  Of the remaining proceeds:

17         a.  One hundred sixty-six thousand six hundred and

18  sixty-seven dollars Beginning July 1, 1992, $166,667 shall be

19  distributed monthly by the department to each applicant that

20  has been certified as a "facility for a new professional

21  sports franchise" or a "facility for a retained professional

22  sports franchise" pursuant to s. 288.1162, $102,202 shall be

23  distributed monthly by the department to each applicant that

24  has been certified as a "facility for a retained spring

25  training franchise" pursuant to s. 288.1162, and $41,667 shall

26  be distributed monthly by the department to each applicant

27  that has been certified as a "new spring training franchise

28  facility" pursuant to s. 288.1162. Distributions shall begin

29  60 days following such certification and shall continue for 30

30  years. Nothing contained herein shall be construed to allow an

31  applicant certified pursuant to s. 288.1162 to receive more in

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    Florida Senate - 1998                                   SB 866
    30-673-98                                        See CS/HB 943




  1  distributions than actually expended by the applicant for the

  2  public purposes provided for in s. 288.1162(8) s. 288.1162(7).

  3  However, a certified applicant shall receive distributions up

  4  to the maximum amount allowable and undistributed under this

  5  section for additional renovations and improvements to the

  6  facility for the franchise without additional certification.

  7         b.  Beginning 30 days after notice by the Office of

  8  Tourism, Trade, and Economic Development to the Department of

  9  Revenue that an applicant has been certified as the

10  professional golf hall of fame pursuant to s. 288.1168 and is

11  open to the public, $166,667 shall be distributed monthly, for

12  up to 300 months, to the applicant.

13         c.  Beginning 30 days after notice by the Department of

14  Commerce to the Department of Revenue that the applicant has

15  been certified as the International Game Fish Association

16  World Center facility pursuant to s. 288.1169, and the

17  facility is open to the public, $83,333 shall be distributed

18  monthly, for up to 180 months, to the applicant.  This

19  distribution is subject to reduction pursuant to s. 288.1169.

20         6.  All other proceeds shall remain with the General

21  Revenue Fund.

22         Section 3.  This act shall take effect July 1, 1998.

23

24            *****************************************

25                          SENATE SUMMARY

26    Provides for the distribution of sales tax revenues to
      applicants that are certified as facilities for "retained
27    spring training franchises," as defined in the act.
      Provides criteria for the Office of Tourism, Trade, and
28    Economic Development to use in making the certification.
      Increases the limit on the number of facilities that may
29    be certified.  Requires applicants for new certification
      to create and maintain fields for amateur sports
30    activities.  Requires new applicants for certification to
      employ WAGES participants and to report on their
31    compliance with this requirement.

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