HB 1079

1
A bill to be entitled
2An act relating to professional sports franchise
3facilities; creating s. 288.11635, F.S.; requiring the
4Office of Tourism, Trade, and Economic Development to
5serve as the state agency for screening applicants for
6certain state funding and for certifying applicants as
7facilities for professional sports franchises eligible for
8such funding; defining terms; requiring rulemaking;
9providing prerequisites to certification; prohibiting a
10facility from receiving more than one certification for
11any professional sports franchise; restricting the use of
12funds; requiring notice of and providing a limitation on
13certifications; authorizing the Department of Revenue to
14conduct audits in order to verify that funds have been
15expended as required and to pursue recovery of
16inappropriately expended funds; amending s. 212.20, F.S.;
17providing for the distribution of a portion of revenues
18from the tax on sales, use, and other transactions to
19applicants certified as facilities for professional sports
20franchises under s. 288.11635, F.S.; amending s. 288.1169,
21F.S.; conforming a cross-reference; providing an effective
22date.
23
24Be It Enacted by the Legislature of the State of Florida:
25
26     Section 1.  Section 288.11635, Florida Statutes, is created
27to read:
28     288.11635  Professional sports franchise guarantees.--
29     (1)  The Office of Tourism, Trade, and Economic Development
30shall serve as the state agency for screening applicants for
31state funding pursuant to s. 212.20(6)(d)7.c. and for certifying
32an applicant as a "facility for a professional sports franchise"
33that is eligible for funding pursuant to s. 212.20(6)(d)7.c.
34     (2)  As used in this section, the term:
35     (a)  "Force majeure event" means a flood, fire, or other
36casualty, a war, a revolution, civil commotion, an act of a
37public enemy, an embargo, an act of government in its sovereign
38capacity, or a labor difficulty, including, without limitation,
39a strike, a lockout, or any circumstance beyond the reasonable
40control of the professional sports franchise affected.
41     (b)  "League" has the same meaning as provided in s.
42288.1162.
43     (c)  "Professional sports franchise" means a franchise in
44the National League or the American League of Major League
45Baseball, the National Basketball Association, the National
46Football League, or the National Hockey League.
47     (d)  "Unit of local government" has the same meaning as
48provided in s. 218.369.
49     (3)  The Office of Tourism, Trade, and Economic Development
50shall develop rules for the receipt and processing of
51applications for funding pursuant to s. 212.20(6)(d)7.c.
52     (4)  Before certifying an applicant as a "facility for a
53professional sports franchise" eligible for funding pursuant to
54s. 212.20(6)(d)7.c., the Office of Tourism, Trade, and Economic
55Development must:
56     (a)  Determine that a unit of local government is
57responsible for the construction, maintenance, or operation of
58the professional sports franchise facility or holds title to or
59a leasehold interest in the property on which the professional
60sports franchise facility is located and the applicant is or
61will be the owner, tenant, or operator of the professional
62sports franchise facility.
63     (b)  Determine that the applicant has a verified copy of
64the approval from the governing authority of the league in which
65the professional sports franchise exists or verified evidence
66that it has had a league-authorized location in this state on or
67before July 1, 2007.
68     (c)  Determine that the applicant has projections, verified
69by the Office of Tourism, Trade, and Economic Development, that
70demonstrate that the professional sports franchise will attract
71a paid attendance of more than 300,000 annually.
72     (d)  Determine that the applicant has an independent
73analysis or study, verified by the Office of Tourism, Trade, and
74Economic Development, that demonstrates that the amount of the
75revenues generated by the taxes imposed under chapter 212 with
76respect to the use and operation of the professional sports
77franchise facility will equal or exceed $4 million annually,
78except that if the professional sports franchise that has served
79as an applicant's basis for certification under this section did
80not serve as an applicant's basis for certification under s.
81288.1162, then $2 million annually.
82     (e)  Determine that the municipality or county in which the
83facility for a professional sports franchise is located has
84certified by resolution after a public hearing that the
85application serves a public purpose.
86     (f)  Receive a signed agreement for the benefit of and
87enforceable by the Department of Revenue from the applicant or
88the current owner of the professional sports franchise that
89formed the basis for the applicant's certification pursuant to
90this section that guarantees that, if the professional sports
91franchise ceases playing at least 90 percent of its home games
92in this state, including preseason, regular season, and
93postseason games, unless the cessation is a result of a force
94majeure event, the guarantor will pay the Department of Revenue
95each year thereafter the excess, if any, of:
96     1.  The amount distributed pursuant to s. 212.20(6)(d)7.c.
97to the applicant under this section during such year, and, if
98the same professional sports franchise also formed the basis for
99an applicant's certification pursuant to s. 288.1162, the amount
100distributed pursuant to s. 212.20(6)(d)7.b. to the applicant
101under s. 288.1162 during such year over
102     2.  The amount of the revenues generated by the taxes
103imposed under chapter 212 with respect to the use and operation
104of the certified facility during such year.
105
106Within 60 days after the professional sports franchise ceases
107playing at least 90 percent of its home games in the state, the
108guarantor shall provide the Department of Revenue with an
109annuity contract issued by a person authorized to issue such
110contracts in this state that will secure the guarantor's
111obligation to make the payments as required by this paragraph.
112The guarantee of the applicant or current owner of the
113professional sports franchise will be returned upon substitution
114of the guarantee of any successor applicant or owner of the
115professional sports franchise whose ownership has been approved
116by the governing authority of the league in which the
117professional sports franchise exists.
118     (g)  Receive evidence that one or more of the following
119have either previously contributed funds, or are contractually
120committed to contribute funds during the next 30 years, for the
121construction or improvement of the facility for a professional
122sports franchise that in the aggregate equals or exceeds $60
123million:
124     1.  The municipality in which the facility for a
125professional sports franchise is located.
126     2.  The county in which the facility for a professional
127sports franchise is located.
128     3.  The applicant.
129     4.  The owner of the professional sports franchise that has
130served as an applicant's basis for certification under this
131section or its affiliates.
132     (h)  Determine that a professional sports franchise forms
133the basis for only one facility certified under this section for
134funding pursuant to s. 212.20(6)(d)7.c.
135     (5)  An applicant certified as a facility for a
136professional sports franchise that is certified for funding
137pursuant to s. 212.20(6)(d)7.c. may use funds provided pursuant
138to that sub-subparagraph only for the public purpose of:
139     (a)  Paying for the acquisition, construction,
140reconstruction, renovation, capital improvement, or maintenance
141of the facility for a professional sports franchise or any
142ancillary facilities, such as parking structures; convention
143facilities and meeting rooms; retail and concession space;
144health, fitness, and training facilities; and youth and amateur
145sports facilities, that support the operations of any such
146facility;
147     (b)  Paying or pledging for the payment of debt service on,
148or funding debt service reserve funds, arbitrage rebate
149obligations, or other amounts payable with respect to, bonds or
150other indebtedness issued for the acquisition, construction,
151reconstruction, renovation, or capital improvement of the
152facility for a professional sports franchise or ancillary
153facilities; or
154     (c)  Reimbursing costs for the refinancing of bonds or
155other indebtedness, including the payment of any interest and
156prepayment premium or penalty thereon, issued for the
157acquisition, construction, reconstruction, renovation, or
158capital improvement of the facility for a professional sports
159franchise or ancillary facilities.
160     (6)  The Office of Tourism, Trade, and Economic Development
161shall notify the Department of Revenue of any facility certified
162as a facility for a professional sports franchise that is
163eligible for funding pursuant to s. 212.20(6)(d)7.c. The Office
164of Tourism, Trade, and Economic Development may not certify
165under this section more than nine facilities as facilities for a
166professional sports franchise that are eligible for funding
167pursuant to s. 212.20(6)(d)7.c.
168     (7)  The Department of Revenue may conduct audits as
169provided in s. 213.34 to verify that the distributions made
170under this section have been expended as required in this
171section. Such information is subject to the confidentiality
172requirements of chapter 213. If the Department of Revenue
173determines that the distributions made under this section have
174not been expended as required by this section, it may pursue
175recovery of the funds under the laws and rules governing the
176assessment of taxes.
177     Section 2.  Paragraph (d) of subsection (6) of section
178212.20, Florida Statutes, is amended to read:
179     212.20  Funds collected, disposition; additional powers of
180department; operational expense; refund of taxes adjudicated
181unconstitutionally collected.--
182     (6)  Distribution of all proceeds under this chapter and s.
183202.18(1)(b) and (2)(b) shall be as follows:
184     (d)  The proceeds of all other taxes and fees imposed
185pursuant to this chapter or remitted pursuant to s. 202.18(1)(b)
186and (2)(b) shall be distributed as follows:
187     1.  In any fiscal year, the greater of $500 million, minus
188an amount equal to 4.6 percent of the proceeds of the taxes
189collected pursuant to chapter 201, or 5 percent of all other
190taxes and fees imposed pursuant to this chapter or remitted
191pursuant to s. 202.18(1)(b) and (2)(b) shall be deposited in
192monthly installments into the General Revenue Fund.
193     2.  Two-tenths of one percent shall be transferred to the
194Ecosystem Management and Restoration Trust Fund to be used for
195water quality improvement and water restoration projects.
196     3.  After the distribution under subparagraphs 1. and 2.,
1978.814 percent of the amount remitted by a sales tax dealer
198located within a participating county pursuant to s. 218.61
199shall be transferred into the Local Government Half-cent Sales
200Tax Clearing Trust Fund. Beginning July 1, 2003, the amount to
201be transferred pursuant to this subparagraph to the Local
202Government Half-cent Sales Tax Clearing Trust Fund shall be
203reduced by 0.1 percent, and the department shall distribute this
204amount to the Public Employees Relations Commission Trust Fund
205less $5,000 each month, which shall be added to the amount
206calculated in subparagraph 4. and distributed accordingly.
207     4.  After the distribution under subparagraphs 1., 2., and
2083., 0.095 percent shall be transferred to the Local Government
209Half-cent Sales Tax Clearing Trust Fund and distributed pursuant
210to s. 218.65.
211     5.  After the distributions under subparagraphs 1., 2., 3.,
212and 4., 2.0440 percent of the available proceeds pursuant to
213this paragraph shall be transferred monthly to the Revenue
214Sharing Trust Fund for Counties pursuant to s. 218.215.
215     6.  After the distributions under subparagraphs 1., 2., 3.,
216and 4., 1.3409 percent of the available proceeds pursuant to
217this paragraph shall be transferred monthly to the Revenue
218Sharing Trust Fund for Municipalities pursuant to s. 218.215. If
219the total revenue to be distributed pursuant to this
220subparagraph is at least as great as the amount due from the
221Revenue Sharing Trust Fund for Municipalities and the former
222Municipal Financial Assistance Trust Fund in state fiscal year
2231999-2000, no municipality shall receive less than the amount
224due from the Revenue Sharing Trust Fund for Municipalities and
225the former Municipal Financial Assistance Trust Fund in state
226fiscal year 1999-2000. If the total proceeds to be distributed
227are less than the amount received in combination from the
228Revenue Sharing Trust Fund for Municipalities and the former
229Municipal Financial Assistance Trust Fund in state fiscal year
2301999-2000, each municipality shall receive an amount
231proportionate to the amount it was due in state fiscal year
2321999-2000.
233     7.  Of the remaining proceeds:
234     a.  In each fiscal year, the sum of $29,915,500 shall be
235divided into as many equal parts as there are counties in the
236state, and one part shall be distributed to each county. The
237distribution among the several counties shall begin each fiscal
238year on or before January 5th and shall continue monthly for a
239total of 4 months. If a local or special law required that any
240moneys accruing to a county in fiscal year 1999-2000 under the
241then-existing provisions of s. 550.135 be paid directly to the
242district school board, special district, or a municipal
243government, such payment shall continue until such time that the
244local or special law is amended or repealed. The state covenants
245with holders of bonds or other instruments of indebtedness
246issued by local governments, special districts, or district
247school boards prior to July 1, 2000, that it is not the intent
248of this subparagraph to adversely affect the rights of those
249holders or relieve local governments, special districts, or
250district school boards of the duty to meet their obligations as
251a result of previous pledges or assignments or trusts entered
252into which obligated funds received from the distribution to
253county governments under then-existing s. 550.135. This
254distribution specifically is in lieu of funds distributed under
255s. 550.135 prior to July 1, 2000.
256     b.  The department shall distribute $166,667 monthly
257pursuant to s. 288.1162 to each applicant that has been
258certified as a "facility for a new professional sports
259franchise" or a "facility for a retained professional sports
260franchise" pursuant to s. 288.1162. Up to $41,667 shall be
261distributed monthly by the department to each applicant that has
262been certified as a "facility for a retained spring training
263franchise" pursuant to s. 288.1162; however, not more than
264$416,670 may be distributed monthly in the aggregate to all
265certified facilities for a retained spring training franchise.
266Distributions shall begin 60 days following such certification
267and shall continue for not more than 30 years. Nothing contained
268in this paragraph shall be construed to allow an applicant
269certified pursuant to s. 288.1162 to receive more in
270distributions than actually expended by the applicant for the
271public purposes provided for in s. 288.1162(6).
272     c.  The department shall distribute $166,667 monthly
273pursuant to s. 288.11635 to each applicant that has been
274certified as a "facility for a professional sports franchise"
275pursuant to s. 288.11635. Distributions must begin 60 days after
276such certification and must continue for not more than 30 years.
277This paragraph does not allow an applicant certified pursuant to
278s. 288.11635 to receive more in distributions than the applicant
279actually expended for the public purposes provided for in s.
280288.11635(5).
281     d.c.  Beginning 30 days after notice by the Office of
282Tourism, Trade, and Economic Development to the Department of
283Revenue that an applicant has been certified as the professional
284golf hall of fame pursuant to s. 288.1168 and is open to the
285public, $166,667 shall be distributed monthly, for up to 300
286months, to the applicant.
287     e.d.  Beginning 30 days after notice by the Office of
288Tourism, Trade, and Economic Development to the Department of
289Revenue that the applicant has been certified as the
290International Game Fish Association World Center facility
291pursuant to s. 288.1169, and the facility is open to the public,
292$83,333 shall be distributed monthly, for up to 168 months, to
293the applicant. This distribution is subject to reduction
294pursuant to s. 288.1169. A lump sum payment of $999,996 shall be
295made, after certification and before July 1, 2000.
296     8.  All other proceeds shall remain with the General
297Revenue Fund.
298     Section 3.  Subsection (6) of section 288.1169, Florida
299Statutes, is amended to read:
300     288.1169  International Game Fish Association World Center
301facility.--
302     (6)  The Department of Commerce must recertify every 10
303years that the facility is open, that the International Game
304Fish Association World Center continues to be the only
305international administrative headquarters, fishing museum, and
306Hall of Fame in the United States recognized by the
307International Game Fish Association, and that the project is
308meeting the minimum projections for attendance or sales tax
309revenues as required at the time of original certification. If
310the facility is not recertified during this 10-year review as
311meeting the minimum projections, then funding will be abated
312until certification criteria are met. If the project fails to
313generate $1 million of annual revenues pursuant to paragraph
314(2)(e), the distribution of revenues pursuant to s.
315212.20(6)(d)7.e.d. shall be reduced to an amount equal to
316$83,333 multiplied by a fraction, the numerator of which is the
317actual revenues generated and the denominator of which is $1
318million. Such reduction shall remain in effect until revenues
319generated by the project in a 12-month period equal or exceed $1
320million.
321     Section 4.  This act shall take effect upon becoming a law.


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