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 Basketball Association that began playing games
45before January 1, 1990, but not before January 1, 1989, or a
46franchise in the National Hockey League that began playing games
47before January 1, 1993.
48     (d)  "Unit of local government" has the same meaning as
49provided in s. 218.369.
50     (3)  The Office of Tourism, Trade, and Economic Development
51shall develop rules for the receipt and processing of
52applications for funding pursuant to s. 212.20(6)(d)7.c.
53     (4)  Before certifying an applicant as a "facility for a
54professional sports franchise" eligible for funding pursuant to
55s. 212.20(6)(d)7.c., the Office of Tourism, Trade, and Economic
56Development must:
57     (a)  Determine that a unit of local government is
58responsible for the construction, maintenance, or operation of
59the professional sports franchise facility or holds title to or
60a leasehold interest in the property on which the professional
61sports franchise facility is located and the applicant is or
62will be the owner, tenant, or operator of the professional
63sports franchise facility.
64     (b)  Determine that the applicant has a verified copy of
65the approval from the governing authority of the league in which
66the professional sports franchise exists or verified evidence
67that it has had a league-authorized location in this state on or
68before July 1, 2007.
69     (c)  Determine that the applicant has projections, verified
70by the Office of Tourism, Trade, and Economic Development, that
71demonstrate that the professional sports franchise will attract
72a paid attendance of more than 300,000 annually.
73     (d)  Determine that the applicant has an independent
74analysis or study, verified by the Office of Tourism, Trade, and
75Economic Development, that demonstrates that the amount of the
76revenues generated by the taxes imposed under chapter 212 with
77respect to the use and operation of the professional sports
78franchise facility will equal or exceed $4 million annually.
79     (e)  Determine that the municipality or county in which the
80facility for a professional sports franchise is located has
81certified by resolution after a public hearing that the
82application serves a public purpose.
83     (f)  Receive a signed agreement for the benefit of and
84enforceable by the Department of Revenue from the applicant or
85the current owner of the professional sports franchise that
86formed the basis for the applicant's certification pursuant to
87this section that guarantees that, if the professional sports
88franchise ceases playing at least 90 percent of its home games
89in this state, including preseason, regular season, and
90postseason games, unless the cessation is a result of a force
91majeure event, the guarantor will pay the Department of Revenue,
92commencing with the calendar year in which the professional
93sports franchise ceases playing at least 90 percent of its home
94games in this state and each calendar year thereafter, the
95excess, if any, of:
96     1.  The amount distributed pursuant to s. 212.20(6)(d)7.c.
97to the applicant under this section during the same calendar
98year, and, if the same professional sports franchise also formed
99the basis for an applicant's certification pursuant to s.
100288.1162, the amount distributed pursuant to s. 212.20(6)(d)7.b.
101to the applicant under s. 288.1162 during the same calendar year
102over
103     2.  The amount of state revenues generated by the taxes
104imposed under chapter 212 with respect to the use and operation
105of the certified facility during the same calendar year.
106
107Within 60 days after the professional sports franchise ceases
108playing at least 90 percent of its home games in this state, the
109guarantor shall provide the Department of Revenue with an
110annuity contract issued by a person authorized to issue such
111contracts in this state that will secure the guarantor's
112obligation to pay the amount distributed pursuant to s.
113212.20(6)(d)7.c. to the applicant under this section during the
114same calendar year and, if the same professional sports
115franchise also formed the basis for an applicant's certification
116pursuant to s. 288.1162, the amount distributed pursuant to s.
117212.20(6)(d)7.b. to the applicant under s. 288.1162 during the
118same calendar year, as required in subparagraph 1. Within 60
119days after the end of each calendar year for which an annuity
120contract is in force, the Department of Revenue shall reimburse
121the guarantor an amount equal to the state revenues generated by
122the taxes imposed under chapter 212 with respect to the use and
123operation of the certified facility during the prior calendar
124year, not to exceed the aggregate amount distributed to the
125applicant under s. 212.20(6)(d)7.b. and c. during the same
126calendar year. The guarantee of the applicant or current owner
127of the professional sports franchise will be returned upon
128substitution of the guarantee of any successor applicant or
129owner of the professional sports franchise whose ownership has
130been approved by the governing authority of the league in which
131the professional sports franchise exists.
132     (g)  Receive evidence that one or more of the following
133have either previously contributed funds, or are contractually
134committed to contribute funds during the next 30 years, for the
135construction or improvement of the facility for a professional
136sports franchise that in the aggregate equals or exceeds $60
137million:
138     1.  The municipality in which the facility for a
139professional sports franchise is located.
140     2.  The county in which the facility for a professional
141sports franchise is located.
142     3.  The applicant.
143     4.  The owner of the professional sports franchise that has
144served as an applicant's basis for certification under this
145section or its affiliates.
146     (h)  Determine that a professional sports franchise forms
147the basis for only one facility certified under this section for
148funding pursuant to s. 212.20(6)(d)7.c.
149     (5)  An applicant certified as a facility for a
150professional sports franchise that is certified for funding
151pursuant to s. 212.20(6)(d)7.c. may use funds provided pursuant
152to that sub-subparagraph only for the public purpose of:
153     (a)  Paying for the acquisition, construction,
154reconstruction, renovation, capital improvement, or maintenance
155of the facility for a professional sports franchise or any
156ancillary facilities, such as parking structures; convention
157facilities and meeting rooms; retail and concession space;
158health, fitness, and training facilities; and youth and amateur
159sports facilities, that support the operations of any such
160facility;
161     (b)  Paying or pledging for the payment of debt service on,
162or funding debt service reserve funds, arbitrage rebate
163obligations, or other amounts payable with respect to, bonds or
164other indebtedness issued for the acquisition, construction,
165reconstruction, renovation, or capital improvement of the
166facility for a professional sports franchise or ancillary
167facilities; or
168     (c)  Reimbursing costs for the refinancing of bonds or
169other indebtedness, including the payment of any interest and
170prepayment premium or penalty thereon, issued for the
171acquisition, construction, reconstruction, renovation, or
172capital improvement of the facility for a professional sports
173franchise or ancillary facilities.
174     (6)  The Office of Tourism, Trade, and Economic Development
175shall notify the Department of Revenue of any facility certified
176as a facility for a professional sports franchise that is
177eligible for funding pursuant to s. 212.20(6)(d)7.c. The Office
178of Tourism, Trade, and Economic Development may not certify
179under this section more than two facilities as facilities for a
180professional sports franchise that are eligible for funding
181pursuant to s. 212.20(6)(d)7.c.
182     (7)  The Department of Revenue may conduct audits as
183provided in s. 213.34 to verify that the distributions made
184under this section have been expended as required in this
185section. Such information is subject to the confidentiality
186requirements of chapter 213. If the Department of Revenue
187determines that the distributions made under this section have
188not been expended as required by this section, it may pursue
189recovery of the funds under the laws and rules governing the
190assessment of taxes.
191     Section 2.  Paragraph (d) of subsection (6) of section
192212.20, Florida Statutes, is amended to read:
193     212.20  Funds collected, disposition; additional powers of
194department; operational expense; refund of taxes adjudicated
195unconstitutionally collected.--
196     (6)  Distribution of all proceeds under this chapter and s.
197202.18(1)(b) and (2)(b) shall be as follows:
198     (d)  The proceeds of all other taxes and fees imposed
199pursuant to this chapter or remitted pursuant to s. 202.18(1)(b)
200and (2)(b) shall be distributed as follows:
201     1.  In any fiscal year, the greater of $500 million, minus
202an amount equal to 4.6 percent of the proceeds of the taxes
203collected pursuant to chapter 201, or 5 percent of all other
204taxes and fees imposed pursuant to this chapter or remitted
205pursuant to s. 202.18(1)(b) and (2)(b) shall be deposited in
206monthly installments into the General Revenue Fund.
207     2.  Two-tenths of one percent shall be transferred to the
208Ecosystem Management and Restoration Trust Fund to be used for
209water quality improvement and water restoration projects.
210     3.  After the distribution under subparagraphs 1. and 2.,
2118.814 percent of the amount remitted by a sales tax dealer
212located within a participating county pursuant to s. 218.61
213shall be transferred into the Local Government Half-cent Sales
214Tax Clearing Trust Fund. Beginning July 1, 2003, the amount to
215be transferred pursuant to this subparagraph to the Local
216Government Half-cent Sales Tax Clearing Trust Fund shall be
217reduced by 0.1 percent, and the department shall distribute this
218amount to the Public Employees Relations Commission Trust Fund
219less $5,000 each month, which shall be added to the amount
220calculated in subparagraph 4. and distributed accordingly.
221     4.  After the distribution under subparagraphs 1., 2., and
2223., 0.095 percent shall be transferred to the Local Government
223Half-cent Sales Tax Clearing Trust Fund and distributed pursuant
224to s. 218.65.
225     5.  After the distributions under subparagraphs 1., 2., 3.,
226and 4., 2.0440 percent of the available proceeds pursuant to
227this paragraph shall be transferred monthly to the Revenue
228Sharing Trust Fund for Counties pursuant to s. 218.215.
229     6.  After the distributions under subparagraphs 1., 2., 3.,
230and 4., 1.3409 percent of the available proceeds pursuant to
231this paragraph shall be transferred monthly to the Revenue
232Sharing Trust Fund for Municipalities pursuant to s. 218.215. If
233the total revenue to be distributed pursuant to this
234subparagraph is at least as great as the amount due from the
235Revenue Sharing Trust Fund for Municipalities and the former
236Municipal Financial Assistance Trust Fund in state fiscal year
2371999-2000, no municipality shall receive less than the amount
238due from the Revenue Sharing Trust Fund for Municipalities and
239the former Municipal Financial Assistance Trust Fund in state
240fiscal year 1999-2000. If the total proceeds to be distributed
241are less than the amount received in combination from the
242Revenue Sharing Trust Fund for Municipalities and the former
243Municipal Financial Assistance Trust Fund in state fiscal year
2441999-2000, each municipality shall receive an amount
245proportionate to the amount it was due in state fiscal year
2461999-2000.
247     7.  Of the remaining proceeds:
248     a.  In each fiscal year, the sum of $29,915,500 shall be
249divided into as many equal parts as there are counties in the
250state, and one part shall be distributed to each county. The
251distribution among the several counties shall begin each fiscal
252year on or before January 5th and shall continue monthly for a
253total of 4 months. If a local or special law required that any
254moneys accruing to a county in fiscal year 1999-2000 under the
255then-existing provisions of s. 550.135 be paid directly to the
256district school board, special district, or a municipal
257government, such payment shall continue until such time that the
258local or special law is amended or repealed. The state covenants
259with holders of bonds or other instruments of indebtedness
260issued by local governments, special districts, or district
261school boards prior to July 1, 2000, that it is not the intent
262of this subparagraph to adversely affect the rights of those
263holders or relieve local governments, special districts, or
264district school boards of the duty to meet their obligations as
265a result of previous pledges or assignments or trusts entered
266into which obligated funds received from the distribution to
267county governments under then-existing s. 550.135. This
268distribution specifically is in lieu of funds distributed under
269s. 550.135 prior to July 1, 2000.
270     b.  The department shall distribute $166,667 monthly
271pursuant to s. 288.1162 to each applicant that has been
272certified as a "facility for a new professional sports
273franchise" or a "facility for a retained professional sports
274franchise" pursuant to s. 288.1162. Up to $41,667 shall be
275distributed monthly by the department to each applicant that has
276been certified as a "facility for a retained spring training
277franchise" pursuant to s. 288.1162; however, not more than
278$416,670 may be distributed monthly in the aggregate to all
279certified facilities for a retained spring training franchise.
280Distributions shall begin 60 days following such certification
281and shall continue for not more than 30 years. Nothing contained
282in this paragraph shall be construed to allow an applicant
283certified pursuant to s. 288.1162 to receive more in
284distributions than actually expended by the applicant for the
285public purposes provided for in s. 288.1162(6).
286     c.  The department shall distribute $166,667 monthly
287pursuant to s. 288.11635 to each applicant that has been
288certified as a "facility for a professional sports franchise"
289pursuant to s. 288.11635. Distributions must begin 60 days after
290such certification and must continue for not more than 30 years.
291This paragraph does not allow an applicant certified pursuant to
292s. 288.11635 to receive more in distributions than the applicant
293actually expended for the public purposes provided for in s.
294288.11635(5).
295     d.c.  Beginning 30 days after notice by the Office of
296Tourism, Trade, and Economic Development to the Department of
297Revenue that an applicant has been certified as the professional
298golf hall of fame pursuant to s. 288.1168 and is open to the
299public, $166,667 shall be distributed monthly, for up to 300
300months, to the applicant.
301     e.d.  Beginning 30 days after notice by the Office of
302Tourism, Trade, and Economic Development to the Department of
303Revenue that the applicant has been certified as the
304International Game Fish Association World Center facility
305pursuant to s. 288.1169, and the facility is open to the public,
306$83,333 shall be distributed monthly, for up to 168 months, to
307the applicant. This distribution is subject to reduction
308pursuant to s. 288.1169. A lump sum payment of $999,996 shall be
309made, after certification and before July 1, 2000.
310     8.  All other proceeds shall remain with the General
311Revenue Fund.
312     Section 3.  Subsection (6) of section 288.1169, Florida
313Statutes, is amended to read:
314     288.1169  International Game Fish Association World Center
315facility.--
316     (6)  The Department of Commerce must recertify every 10
317years that the facility is open, that the International Game
318Fish Association World Center continues to be the only
319international administrative headquarters, fishing museum, and
320Hall of Fame in the United States recognized by the
321International Game Fish Association, and that the project is
322meeting the minimum projections for attendance or sales tax
323revenues as required at the time of original certification. If
324the facility is not recertified during this 10-year review as
325meeting the minimum projections, then funding will be abated
326until certification criteria are met. If the project fails to
327generate $1 million of annual revenues pursuant to paragraph
328(2)(e), the distribution of revenues pursuant to s.
329212.20(6)(d)7.e.d. shall be reduced to an amount equal to
330$83,333 multiplied by a fraction, the numerator of which is the
331actual revenues generated and the denominator of which is $1
332million. Such reduction shall remain in effect until revenues
333generated by the project in a 12-month period equal or exceed $1
334million.
335     Section 4.  This act shall take effect upon becoming a law.


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