House Bill 0519

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    Florida House of Representatives - 1999                 HB 519

        By Representative Sembler






  1                      A bill to be entitled

  2         An act relating to spring training franchise

  3         facilities; amending s. 125.0104, F.S.;

  4         providing that the additional local option

  5         tourist development taxes presently authorized

  6         to finance the construction or renovation of a

  7         professional sports franchise facility may also

  8         be used to finance the acquisition,

  9         construction, or renovation of a retained

10         spring training franchise facility; correcting

11         a reference; amending s. 288.1162, F.S.;

12         providing for certification of retained spring

13         training franchise facilities by the Office of

14         Tourism, Trade, and Economic Development;

15         providing a definition; providing certification

16         requirements; providing for use of funds

17         distributed pursuant to s. 212.20, F.S., to

18         such facilities; excluding new and retained

19         spring training franchise facilities from the

20         limitation on the number of sports facilities

21         that may be certified under s. 288.1162, F.S.;

22         amending s. 212.20, F.S.; providing for a

23         monthly distribution of a portion of revenues

24         under ch. 212, F.S., to certified retained

25         spring training franchise facilities for a

26         specified period; providing an effective date.

27

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

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30

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  1         Section 1.  Paragraphs (l) and (n) of subsection (3)

  2  and paragraph (d) of subsection (5) of section 125.0104,

  3  Florida Statutes, 1998 Supplement, are amended to read:

  4         125.0104  Tourist development tax; procedure for

  5  levying; authorized uses; referendum; enforcement.--

  6         (3)  TAXABLE PRIVILEGES; EXEMPTIONS; LEVY; RATE.--

  7         (l)  In addition to any other tax which is imposed

  8  pursuant to this section, a county may impose up to an

  9  additional 1-percent tax on the exercise of the privilege

10  described in paragraph (a) by majority vote of the governing

11  board of the county in order to:

12         1.  Pay the debt service on bonds issued to finance the

13  construction, reconstruction, or renovation of a professional

14  sports franchise facility, or the acquisition, construction,

15  reconstruction, or renovation of a retained spring training

16  franchise facility, either publicly owned and operated, or

17  publicly owned and operated by the owner of a professional

18  sports franchise or other lessee with sufficient expertise or

19  financial capability to operate such facility, and to pay the

20  planning and design costs incurred prior to the issuance of

21  such bonds.

22         2.  Pay the debt service on bonds issued to finance the

23  construction, reconstruction, or renovation of a convention

24  center, and to pay the planning and design costs incurred

25  prior to the issuance of such bonds.

26         3.  Pay the operation and maintenance costs of a

27  convention center for a period of up to 10 years. Only

28  counties that have elected to levy the tax for the purposes

29  authorized in subparagraph 2. may use the tax for the purposes

30  enumerated in this subparagraph.

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  1  The provision of paragraph (b) which prohibits any county

  2  authorized to levy a convention development tax pursuant to s.

  3  212.0305 from levying more than the 2-percent tax authorized

  4  by this section, and the provisions of paragraphs (4)(a)

  5  through (d), shall not apply to the additional tax authorized

  6  in this paragraph. The effective date of the levy and

  7  imposition of the tax authorized under this paragraph shall be

  8  the first day of the second month following approval of the

  9  ordinance by the governing board or the first day of any

10  subsequent month as may be specified in the ordinance.  A

11  certified copy of such ordinance shall be furnished by the

12  county to the Department of Revenue within 10 days after

13  approval of such ordinance.

14         (n)  In addition to any other tax that is imposed under

15  this section, a county that has imposed the tax under

16  paragraph (l) may impose an additional tax that is no greater

17  than 1 percent on the exercise of the privilege described in

18  paragraph (a) by a majority plus one vote of the membership of

19  the board of county commissioners in order to pay the debt

20  service on bonds issued to finance:

21         1.  The construction, reconstruction, or renovation of

22  a facility either publicly owned and operated, or publicly

23  owned and operated by the owner of a professional sports

24  franchise or other lessee with sufficient expertise or

25  financial capability to operate such facility, and to pay the

26  planning and design costs incurred prior to the issuance of

27  such bonds for a new professional sports franchise as defined

28  in s. 288.1162.

29         2.  The acquisition, construction, reconstruction, or

30  renovation of a facility either publicly owned and operated,

31  or publicly owned and operated by the owner of a professional

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  1  sports franchise or other lessee with sufficient expertise or

  2  financial capability to operate such facility, and to pay the

  3  planning and design costs incurred prior to the issuance of

  4  such bonds for a retained spring training franchise as defined

  5  in s. 288.1162.

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  7  A county that imposes the tax authorized in this paragraph may

  8  not expend any ad valorem tax revenues for the acquisition,

  9  construction, reconstruction, or renovation of that facility.

10  The provision of paragraph (b) which prohibits any county

11  authorized to levy a convention development tax pursuant to s.

12  212.0305 from levying more than the 2-percent tax authorized

13  by this section shall not apply to the additional tax

14  authorized by this paragraph in counties which levy convention

15  development taxes pursuant to s. 212.0305(4)(a). Subsection

16  (4) does not apply to the adoption of the additional tax

17  authorized in this paragraph. The effective date of the levy

18  and imposition of the tax authorized under this paragraph is

19  the first day of the second month following approval of the

20  ordinance by the board of county commissioners or the first

21  day of any subsequent month specified in the ordinance. A

22  certified copy of such ordinance shall be furnished by the

23  county to the Department of Revenue within 10 days after

24  approval of the ordinance.

25         (5)  AUTHORIZED USES OF REVENUE.--

26         (d)  Any use of the local option tourist development

27  tax revenues collected pursuant to this section for a purpose

28  not expressly authorized by paragraph (3)(l) or paragraph

29  (3)(n)(o) or paragraph (a), paragraph (b), or paragraph (c) of

30  this subsection is expressly prohibited.

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

  2  212.20, Florida Statutes, 1998 Supplement, is amended to read:

  3         212.20  Funds collected, disposition; additional powers

  4  of department; operational expense; refund of taxes

  5  adjudicated unconstitutionally collected.--

  6         (6)  Distribution of all proceeds under this chapter

  7  shall be as follows:

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

  9  pursuant to this chapter shall be distributed as follows:

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

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

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

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

14  deposited in monthly installments into the General Revenue

15  Fund.

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

17  the Solid Waste Management Trust Fund.

18         3.  After the distribution under subparagraphs 1. and

19  2., 9.653 percent of the amount remitted by a sales tax dealer

20  located within a participating county pursuant to s. 218.61

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

22  Tax Clearing Trust Fund.

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

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

25  Government Half-cent Sales Tax Clearing Trust Fund and

26  distributed pursuant to s. 218.65.

27         5.  Of the remaining proceeds:

28         a.  Beginning July 1, 1992, $166,667 shall be

29  distributed monthly by the department to each applicant that

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

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

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  1  sports franchise" pursuant to s. 288.1162 and $41,667 shall be

  2  distributed monthly by the department to each applicant that

  3  has been certified as a "new spring training franchise

  4  facility" pursuant to s. 288.1162. Beginning July 1, 1999,

  5  $41,667 shall be distributed monthly by the department to each

  6  applicant that has been certified as a "retained spring

  7  training franchise facility" pursuant to s. 288.1162.

  8  Distributions shall begin 60 days following such certification

  9  and shall continue for 30 years. Nothing contained herein

10  shall be construed to allow an applicant certified pursuant to

11  s. 288.1162 to receive more in distributions than actually

12  expended by the applicant for the public purposes provided for

13  in s. 288.1162(7). However, a certified applicant shall

14  receive distributions up to the maximum amount allowable and

15  undistributed under this section for additional renovations

16  and improvements to the facility for the franchise without

17  additional certification.

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

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

20  Revenue that an applicant has been certified as the

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

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

23  up to 300 months, to the applicant.

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

25  Commerce to the Department of Revenue that the applicant has

26  been certified as the International Game Fish Association

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

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

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

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

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  1         6.  All other proceeds shall remain with the General

  2  Revenue Fund.

  3         Section 3.  Section 288.1162, Florida Statutes, is

  4  amended to read:

  5         288.1162  Professional sports franchises; spring

  6  training franchises; duties.--

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

  8  Development shall serve as the state agency for screening

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

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

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

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

13  facility,." or a "retained spring training franchise

14  facility."

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

16  Development shall develop rules for the receipt and processing

17  of applications for funding pursuant to s. 212.20.

18         (3)  As used in this section:

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

20  professional sports franchise that is not based in this state

21  prior to April 1, 1987.

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

23  professional sports franchise that has had a league-authorized

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

25  continuously remained at that location, and has never been

26  located at a facility that has been previously certified under

27  any provision of this section.

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

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

30  retained professional sports franchise," the Office of

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

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

  2  218.369 is responsible for the construction, management, or

  3  operation of the professional sports franchise facility or

  4  holds title to the property on which the professional sports

  5  franchise facility is located.

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

  7  agreement with a new professional sports franchise for the use

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

  9  case of a retained professional sports franchise, an agreement

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

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

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

13  professional sports franchise exists authorizing the location

14  of the professional sports franchise in this state after April

15  1, 1987, or in the case of a retained professional sports

16  franchise, verified evidence that it has had a

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

18  31, 1976. The term "league" means the National League or the

19  American League of Major League Baseball, the National

20  Basketball Association, the National Football League, or the

21  National Hockey League.

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

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

24  demonstrate that the new or retained professional sports

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

26  annually.

27         (e)  The applicant has an independent analysis or

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

29  Development, which demonstrates that the amount of the

30  revenues generated by the taxes imposed under chapter 212 with

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  1  respect to the use and operation of the professional sports

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

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

  4  or retained professional sports franchise is located, or the

  5  county if the facility for a new or retained professional

  6  sports franchise is located in an unincorporated area, has

  7  certified by resolution after a public hearing that the

  8  application serves a public purpose.

  9         (g)  The applicant has demonstrated that it has

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

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

12  incurred or related to the improvement and development of the

13  facility.

14         (h)  No applicant previously certified under any

15  provision of this section who has received funding under such

16  certification shall be eligible for an additional

17  certification.

18         (5)  As used in this section:,

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

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

21  July 1, 1990.

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

23  spring training franchise that had a location in this state on

24  or before December 31, 1998, and that has continuously

25  remained at that location for at least the 10 years preceding

26  that date.

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

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

29  Trade, and Economic Development must determine that:

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

31  218.369 is responsible for the construction, management, or

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  1  operation of the new spring training franchise facility or

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

  3  franchise facility is located.

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

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

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

  7         3.(c)  The applicant has a financial commitment to

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

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

10  training franchise.

11         4.(d)  The proposed facility for the new spring

12  training franchise is located within 20 miles of an interstate

13  or other limited-access highway system.

14         5.(e)  The applicant has projections, verified by the

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

16  demonstrate that the new spring training franchise facility

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

18         6.(f)  The new spring training franchise facility is

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

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

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

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

23  spring training complex.

24         (b)  Prior to certifying an applicant as a "retained

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

26  Trade, and Economic Development must determine that:

27         1.  A "unit of local government" as defined in s.

28  218.369 is responsible for the acquisition, construction,

29  management, or operation of the retained spring training

30  franchise facility or holds title to the property on which the

31  retained spring training franchise facility is located.

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  1         2.  The applicant has a verified copy of a signed

  2  agreement with a retained spring training franchise for the

  3  use of the facility for a term of at least 15 years.

  4         3.  The applicant has a financial commitment to provide

  5  50 percent or more of the funds required by an agreement for

  6  the use of the facility by the retained spring training

  7  franchise.

  8         4.  The applicant has projections, verified by the

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

10  demonstrate that the retained spring training franchise

11  facility will attract a paid attendance of at least 50,000

12  annually.

13         (7)  An applicant certified as a facility for a new

14  professional sports franchise or a facility for a retained

15  professional sports franchise or as a new spring training

16  franchise facility may use funds provided pursuant to s.

17  212.20 only for the public purpose of paying for the

18  construction, reconstruction, or renovation of a facility for

19  a new professional sports franchise, a facility for a retained

20  professional sports franchise, or a new spring training

21  franchise facility or to pay or pledge for the payment of debt

22  service on, or to fund debt service reserve funds, arbitrage

23  rebate obligations, or other amounts payable with respect to,

24  bonds issued for the construction, reconstruction, or

25  renovation of such facility or for the reimbursement of such

26  costs or the refinancing of bonds issued for such purposes.

27  An applicant certified as a retained spring training franchise

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

29  the public purpose of paying for the acquisition,

30  construction, reconstruction, or renovation of a facility for

31  a retained spring training franchise or to pay or pledge for

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  1  the payment of debt service on, or to fund debt service

  2  reserve funds, arbitrage rebate obligations, or other amounts

  3  payable with respect to, bonds issued for the acquisition,

  4  construction, reconstruction, or renovation of such facility

  5  or for the reimbursement of such costs or the refinancing of

  6  bonds issued for such purposes.

  7         (8)  The Office of Tourism, Trade, and Economic

  8  Development shall notify the Department of Revenue of any

  9  facility certified as a facility for a new professional sports

10  franchise, or a facility for a retained professional sports

11  franchise, or as a new spring training franchise facility, or

12  a retained spring training franchise facility.  The Office of

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

14  than eight facilities as facilities for a new professional

15  sports franchise or, as facilities for a retained professional

16  sports franchise, or as new spring training franchise

17  facilities, including in such total any facilities certified

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

19  may make no more than one certification for any facility.

20         (9)  The Department of Revenue may audit as provided in

21  s. 213.34 to verify that the distributions pursuant to this

22  section have been expended as required in this section. Such

23  information is subject to the confidentiality requirements of

24  chapter 213. If the Department of Revenue determines that the

25  distributions pursuant to this section have not been expended

26  as required by this section, it may pursue recovery of such

27  funds pursuant to the laws and rules governing the assessment

28  of taxes.

29         (10)  An applicant shall not be qualified for

30  certification under this section if the franchise formed the

31  basis for a previous certification, unless the previous

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  1  certification was withdrawn by the facility or invalidated by

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

  3  Department of Commerce before any funds were distributed

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

  5  applicant if the previous certification occurred between May

  6  23, 1993, and May 25, 1993; however, any funds to be

  7  distributed pursuant to s. 212.20 for the second certification

  8  shall be offset by the amount distributed to the previous

  9  certified facility. Distribution of funds for the second

10  certification shall not be made until all amounts payable for

11  the first certification have been distributed.

12         Section 4.  This act shall take effect July 1, 1999.

13

14            *****************************************

15                          HOUSE SUMMARY

16
      Provides that the additional local option tourist
17    development taxes presently authorized to finance the
      construction or renovation of a professional sports
18    franchise facility may also be used to finance the
      acquisition, construction, or renovation of a retained
19    spring training franchise facility.

20
      Provides for certification of retained spring training
21    franchise facilities by the Office of Tourism, Trade, and
      Economic Development and provides certification
22    requirements. Provides for a monthly distribution of a
      portion of sales tax revenues to certified retained
23    spring training franchise facilities for a specified
      period, and provides for use of such funds by those
24    facilities.

25
      Excludes new and retained spring training franchise
26    facilities from the limitation on the number of sports
      facilities that may be certified under s. 288.1162, F.S.
27

28

29

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