CS/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,
95commencing with the calendar year in which the professional
96sports franchise ceases playing at least 90 percent of its home
97games in this state and each calendar year thereafter, the
98excess, if any, of:
99     1.  The amount distributed pursuant to s. 212.20(6)(d)7.c.
100to the applicant under this section during the same calendar
101year, and, if the same professional sports franchise also formed
102the basis for an applicant's certification pursuant to s.
103288.1162, the amount distributed pursuant to s. 212.20(6)(d)7.b.
104to the applicant under s. 288.1162 during the same calendar year
105over
106     2.  The amount of state revenues generated by the taxes
107imposed under chapter 212 with respect to the use and operation
108of the certified facility during the same calendar year.
109
110Within 60 days after the professional sports franchise ceases
111playing at least 90 percent of its home games in this state, the
112guarantor shall provide the Department of Revenue with an
113annuity contract issued by a person authorized to issue such
114contracts in this state that will secure the guarantor's
115obligation to pay the amount distributed pursuant to s.
116212.20(6)(d)7.c. to the applicant under this section during the
117same calendar year and, if the same professional sports
118franchise also formed the basis for an applicant's certification
119pursuant to s. 288.1162, the amount distributed pursuant to s.
120212.20(6)(d)7.b. to the applicant under s. 288.1162 during the
121same calendar year, as required in subparagraph 1. Within 60
122days after the end of each calendar year for which an annuity
123contract is in force, the Department of Revenue shall reimburse
124the guarantor an amount equal to the state revenues generated by
125the taxes imposed under chapter 212 with respect to the use and
126operation of the certified facility during the prior calendar
127year, not to exceed the aggregate amount distributed to the
128applicant under s. 212.20(6)(d)7.b. and c. during the same
129calendar year. The guarantee of the applicant or current owner
130of the professional sports franchise will be returned upon
131substitution of the guarantee of any successor applicant or
132owner of the professional sports franchise whose ownership has
133been approved by the governing authority of the league in which
134the professional sports franchise exists.
135     (g)  Receive evidence that one or more of the following
136have either previously contributed funds, or are contractually
137committed to contribute funds during the next 30 years, for the
138construction or improvement of the facility for a professional
139sports franchise that in the aggregate equals or exceeds $60
140million:
141     1.  The municipality in which the facility for a
142professional sports franchise is located.
143     2.  The county in which the facility for a professional
144sports franchise is located.
145     3.  The applicant.
146     4.  The owner of the professional sports franchise that has
147served as an applicant's basis for certification under this
148section or its affiliates.
149     (h)  Determine that a professional sports franchise forms
150the basis for only one facility certified under this section for
151funding pursuant to s. 212.20(6)(d)7.c.
152     (5)  An applicant certified as a facility for a
153professional sports franchise that is certified for funding
154pursuant to s. 212.20(6)(d)7.c. may use funds provided pursuant
155to that sub-subparagraph only for the public purpose of:
156     (a)  Paying for the acquisition, construction,
157reconstruction, renovation, capital improvement, or maintenance
158of the facility for a professional sports franchise or any
159ancillary facilities, such as parking structures; convention
160facilities and meeting rooms; retail and concession space;
161health, fitness, and training facilities; and youth and amateur
162sports facilities, that support the operations of any such
163facility;
164     (b)  Paying or pledging for the payment of debt service on,
165or funding debt service reserve funds, arbitrage rebate
166obligations, or other amounts payable with respect to, bonds or
167other indebtedness issued for the acquisition, construction,
168reconstruction, renovation, or capital improvement of the
169facility for a professional sports franchise or ancillary
170facilities; or
171     (c)  Reimbursing costs for the refinancing of bonds or
172other indebtedness, including the payment of any interest and
173prepayment premium or penalty thereon, issued for the
174acquisition, construction, reconstruction, renovation, or
175capital improvement of the facility for a professional sports
176franchise or ancillary facilities.
177     (6)  The Office of Tourism, Trade, and Economic Development
178shall notify the Department of Revenue of any facility certified
179as a facility for a professional sports franchise that is
180eligible for funding pursuant to s. 212.20(6)(d)7.c. The Office
181of Tourism, Trade, and Economic Development may not certify
182under this section more than nine facilities as facilities for a
183professional sports franchise that are eligible for funding
184pursuant to s. 212.20(6)(d)7.c.
185     (7)  The Department of Revenue may conduct audits as
186provided in s. 213.34 to verify that the distributions made
187under this section have been expended as required in this
188section. Such information is subject to the confidentiality
189requirements of chapter 213. If the Department of Revenue
190determines that the distributions made under this section have
191not been expended as required by this section, it may pursue
192recovery of the funds under the laws and rules governing the
193assessment of taxes.
194     Section 2.  Paragraph (d) of subsection (6) of section
195212.20, Florida Statutes, is amended to read:
196     212.20  Funds collected, disposition; additional powers of
197department; operational expense; refund of taxes adjudicated
198unconstitutionally collected.--
199     (6)  Distribution of all proceeds under this chapter and s.
200202.18(1)(b) and (2)(b) shall be as follows:
201     (d)  The proceeds of all other taxes and fees imposed
202pursuant to this chapter or remitted pursuant to s. 202.18(1)(b)
203and (2)(b) shall be distributed as follows:
204     1.  In any fiscal year, the greater of $500 million, minus
205an amount equal to 4.6 percent of the proceeds of the taxes
206collected pursuant to chapter 201, or 5 percent of all other
207taxes and fees imposed pursuant to this chapter or remitted
208pursuant to s. 202.18(1)(b) and (2)(b) shall be deposited in
209monthly installments into the General Revenue Fund.
210     2.  Two-tenths of one percent shall be transferred to the
211Ecosystem Management and Restoration Trust Fund to be used for
212water quality improvement and water restoration projects.
213     3.  After the distribution under subparagraphs 1. and 2.,
2148.814 percent of the amount remitted by a sales tax dealer
215located within a participating county pursuant to s. 218.61
216shall be transferred into the Local Government Half-cent Sales
217Tax Clearing Trust Fund. Beginning July 1, 2003, the amount to
218be transferred pursuant to this subparagraph to the Local
219Government Half-cent Sales Tax Clearing Trust Fund shall be
220reduced by 0.1 percent, and the department shall distribute this
221amount to the Public Employees Relations Commission Trust Fund
222less $5,000 each month, which shall be added to the amount
223calculated in subparagraph 4. and distributed accordingly.
224     4.  After the distribution under subparagraphs 1., 2., and
2253., 0.095 percent shall be transferred to the Local Government
226Half-cent Sales Tax Clearing Trust Fund and distributed pursuant
227to s. 218.65.
228     5.  After the distributions under subparagraphs 1., 2., 3.,
229and 4., 2.0440 percent of the available proceeds pursuant to
230this paragraph shall be transferred monthly to the Revenue
231Sharing Trust Fund for Counties pursuant to s. 218.215.
232     6.  After the distributions under subparagraphs 1., 2., 3.,
233and 4., 1.3409 percent of the available proceeds pursuant to
234this paragraph shall be transferred monthly to the Revenue
235Sharing Trust Fund for Municipalities pursuant to s. 218.215. If
236the total revenue to be distributed pursuant to this
237subparagraph is at least as great as the amount due from the
238Revenue Sharing Trust Fund for Municipalities and the former
239Municipal Financial Assistance Trust Fund in state fiscal year
2401999-2000, no municipality shall receive less than the amount
241due from the Revenue Sharing Trust Fund for Municipalities and
242the former Municipal Financial Assistance Trust Fund in state
243fiscal year 1999-2000. If the total proceeds to be distributed
244are less than the amount received in combination from the
245Revenue Sharing Trust Fund for Municipalities and the former
246Municipal Financial Assistance Trust Fund in state fiscal year
2471999-2000, each municipality shall receive an amount
248proportionate to the amount it was due in state fiscal year
2491999-2000.
250     7.  Of the remaining proceeds:
251     a.  In each fiscal year, the sum of $29,915,500 shall be
252divided into as many equal parts as there are counties in the
253state, and one part shall be distributed to each county. The
254distribution among the several counties shall begin each fiscal
255year on or before January 5th and shall continue monthly for a
256total of 4 months. If a local or special law required that any
257moneys accruing to a county in fiscal year 1999-2000 under the
258then-existing provisions of s. 550.135 be paid directly to the
259district school board, special district, or a municipal
260government, such payment shall continue until such time that the
261local or special law is amended or repealed. The state covenants
262with holders of bonds or other instruments of indebtedness
263issued by local governments, special districts, or district
264school boards prior to July 1, 2000, that it is not the intent
265of this subparagraph to adversely affect the rights of those
266holders or relieve local governments, special districts, or
267district school boards of the duty to meet their obligations as
268a result of previous pledges or assignments or trusts entered
269into which obligated funds received from the distribution to
270county governments under then-existing s. 550.135. This
271distribution specifically is in lieu of funds distributed under
272s. 550.135 prior to July 1, 2000.
273     b.  The department shall distribute $166,667 monthly
274pursuant to s. 288.1162 to each applicant that has been
275certified as a "facility for a new professional sports
276franchise" or a "facility for a retained professional sports
277franchise" pursuant to s. 288.1162. Up to $41,667 shall be
278distributed monthly by the department to each applicant that has
279been certified as a "facility for a retained spring training
280franchise" pursuant to s. 288.1162; however, not more than
281$416,670 may be distributed monthly in the aggregate to all
282certified facilities for a retained spring training franchise.
283Distributions shall begin 60 days following such certification
284and shall continue for not more than 30 years. Nothing contained
285in this paragraph shall be construed to allow an applicant
286certified pursuant to s. 288.1162 to receive more in
287distributions than actually expended by the applicant for the
288public purposes provided for in s. 288.1162(6).
289     c.  The department shall distribute $166,667 monthly
290pursuant to s. 288.11635 to each applicant that has been
291certified as a "facility for a professional sports franchise"
292pursuant to s. 288.11635. Distributions must begin 60 days after
293such certification and must continue for not more than 30 years.
294This paragraph does not allow an applicant certified pursuant to
295s. 288.11635 to receive more in distributions than the applicant
296actually expended for the public purposes provided for in s.
297288.11635(5).
298     d.c.  Beginning 30 days after notice by the Office of
299Tourism, Trade, and Economic Development to the Department of
300Revenue that an applicant has been certified as the professional
301golf hall of fame pursuant to s. 288.1168 and is open to the
302public, $166,667 shall be distributed monthly, for up to 300
303months, to the applicant.
304     e.d.  Beginning 30 days after notice by the Office of
305Tourism, Trade, and Economic Development to the Department of
306Revenue that the applicant has been certified as the
307International Game Fish Association World Center facility
308pursuant to s. 288.1169, and the facility is open to the public,
309$83,333 shall be distributed monthly, for up to 168 months, to
310the applicant. This distribution is subject to reduction
311pursuant to s. 288.1169. A lump sum payment of $999,996 shall be
312made, after certification and before July 1, 2000.
313     8.  All other proceeds shall remain with the General
314Revenue Fund.
315     Section 3.  Subsection (6) of section 288.1169, Florida
316Statutes, is amended to read:
317     288.1169  International Game Fish Association World Center
318facility.--
319     (6)  The Department of Commerce must recertify every 10
320years that the facility is open, that the International Game
321Fish Association World Center continues to be the only
322international administrative headquarters, fishing museum, and
323Hall of Fame in the United States recognized by the
324International Game Fish Association, and that the project is
325meeting the minimum projections for attendance or sales tax
326revenues as required at the time of original certification. If
327the facility is not recertified during this 10-year review as
328meeting the minimum projections, then funding will be abated
329until certification criteria are met. If the project fails to
330generate $1 million of annual revenues pursuant to paragraph
331(2)(e), the distribution of revenues pursuant to s.
332212.20(6)(d)7.e.d. shall be reduced to an amount equal to
333$83,333 multiplied by a fraction, the numerator of which is the
334actual revenues generated and the denominator of which is $1
335million. Such reduction shall remain in effect until revenues
336generated by the project in a 12-month period equal or exceed $1
337million.
338     Section 4.  This act shall take effect upon becoming a law.


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