Senate Bill sb2168

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    Florida Senate - 2007                                  SB 2168

    By the Committee on Transportation and Economic Development
    Appropriations




    606-765A-07

  1                      A bill to be entitled

  2         An act relating to professional sports

  3         franchise facilities; creating s. 288.11635,

  4         F.S.; requiring the Office of Tourism, Trade,

  5         and Economic Development to screen applicants

  6         for state funding under s. 212.20(6)(d)7.c. and

  7         certify a facility as eligible for funding as a

  8         facility for a professional sports franchise;

  9         defining terms; requiring the office to adopt

10         rules; providing prerequisites for

11         certification; prohibiting a facility from

12         receiving more than one certification for any

13         professional sports franchise; restricting the

14         use of funds; providing limitations on

15         certifications; authorizing the Department of

16         Revenue to conduct audits in order to verify

17         that funds have been expended as required and

18         to pursue recovery of inappropriately expended

19         funds; amending s. 212.20, F.S.; providing for

20         the amounts to be distributed to certified

21         facilities under the act; providing a timeframe

22         for such distributions; amending s. 288.1169,

23         F.S., relating to the International Game Fish

24         Association World Center; conforming a

25         cross-reference; providing an effective date.

26  

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

28  

29         Section 1.  Section 288.11635, Florida Statutes, is

30  created to read:

31         288.11635  Professional sports franchise guarantees.--

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    Florida Senate - 2007                                  SB 2168
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 1         (1)  The Office of Tourism, Trade, and Economic

 2  Development shall serve as the state agency for screening

 3  applicants for state funding pursuant to s. 212.20(6)(d)7.c.

 4  and for certifying an applicant as a facility for a

 5  professional sports franchise which is eligible for funding

 6  pursuant to s. 212.20(6)(d)7.c.

 7         (2)  As used in this section, the term:

 8         (a)  "Force majeure event" means a flood, fire or other

 9  casualty, war, revolution, civil commotion, an act of a public

10  enemy, embargo, act of government in its sovereign capacity,

11  or labor difficulty, including without limitation, a strike,

12  lockout, or any circumstance beyond the reasonable control of

13  the professional sports franchise affected.

14         (b)  "League" has the same meaning as provided in s.

15  288.1162.

16         (c)  "Professional sports franchise" means a franchise

17  in the National League or the American League of Major League

18  Baseball, the National Basketball Association, the National

19  Football League, or the National Hockey League.

20         (d)  "Unit of local government" has the same meaning as

21  provided in s. 218.369.

22         (3)  The Office of Tourism, Trade, and Economic

23  Development shall adopt rules for the receipt and processing

24  of applications for funding pursuant to s. 212.20(6)(d)7.c.

25         (4)  Before certifying an applicant as a facility for a

26  professional sports franchise which is eligible for funding

27  pursuant to s. 212.20(6)(d)7.c., the Office of Tourism, Trade,

28  and Economic Development must determine that:

29         (a)  A unit of local government is responsible for the

30  construction, maintenance, or operation of the professional

31  sports franchise facility or holds title to or a leasehold

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    Florida Senate - 2007                                  SB 2168
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 1  interest in the property on which the professional sports

 2  franchise facility will be located and the person filing on

 3  behalf of the applicant is or will be the owner or operator of

 4  the professional sports franchise facility.

 5         (b)  The applicant has a verified copy of the approval

 6  from the governing authority of the league in which the

 7  professional sports franchise exists or verified evidence that

 8  it had a league-authorized location in this state on or before

 9  July 1, 2007.

10         (c)  The applicant has projections, verified by the

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

12  demonstrate that the professional sports franchise will

13  attract a paid attendance of more than 300,000 annually.

14         (d)  The applicant has an independent analysis or

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

16  Development, which demonstrates that the amount of the

17  revenues generated by the taxes imposed under chapter 212 with

18  respect to the use and operation of the professional sports

19  franchise facility will equal or exceed $4 million annually,

20  except that if the professional sports franchise that served

21  as an applicant's basis for certification under this section

22  did not serve as the applicant's basis for certification under

23  s. 288.1162, the verified analysis or study must demonstrate

24  that the amount of such tax revenues will equal or exceed $2

25  million annually.

26         (e)  The municipality or county in which the facility

27  for a professional sports franchise is located has certified

28  by resolution after a public hearing that the application

29  serves a public purpose.

30         (f)  The Office of Tourism, Trade, and Economic

31  Development has received a signed agreement for the benefit of

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    Florida Senate - 2007                                  SB 2168
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 1  and enforceable by the Department of Revenue from the

 2  applicant or current owner of the professional sports

 3  franchise that formed the basis for the applicant's

 4  certification pursuant to this section which guarantees that,

 5  if the professional sports franchise ceases playing at least

 6  90 percent of its home games in this state, including

 7  preseason, regular season, and postseason games, unless the

 8  cessation is a result of a force majeure event, the guarantor

 9  will pay the Department of Revenue each year thereafter the

10  excess, if any, of the amount distributed pursuant to s.

11  212.20(6)(d)7.c. to the applicant under this section during

12  such year and, if the same professional sports franchise also

13  formed the basis for an applicant's certification pursuant to

14  s. 288.1162, the amount distributed pursuant to s.

15  212.20(6)(d)7.b. to the applicant under s. 288.1162 during

16  such year, over the amount of the revenues generated by the

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

18  operation of the certified facility during such year. Within

19  60 days after the professional sports franchise ceases playing

20  at least 90 percent of its home games in this state, the

21  guarantor shall provide the Department of Revenue with an

22  annuity contract issued by a person authorized to issue such

23  contracts in this state that will secure the guarantor's

24  obligation to make the payments provided in this paragraph.

25  The guarantee of the applicant or current owner of the

26  professional sports franchise shall be returned upon

27  substitution of the guarantee of any successor owner of the

28  applicant or professional sports franchise whose ownership has

29  been approved by the governing authority of the league in

30  which the professional sports franchise exists.

31  

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    Florida Senate - 2007                                  SB 2168
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 1         (g)  The Office of Tourism, Trade, and Economic

 2  Development has received evidence that one or more of the

 3  municipality in which the facility for a professional sports

 4  franchise is located, the county in which the facility for a

 5  professional sports franchise is located, or the applicant and

 6  the owner of the professional sports franchise that has served

 7  as an applicant's basis for certification under this section

 8  or its affiliates have previously contributed funds, or are

 9  contractually committed to contribute funds during the next 30

10  years, for the construction or improvement of the facility for

11  a professional sports franchise which, in the aggregate,

12  equals or exceeds $60 million.

13         (h)  The professional sports franchise does not form

14  the basis for any other facility certified under this section

15  for funding pursuant to s. 212.20(6)(d)7.c.

16         (5)  An applicant certified as a facility for a

17  professional sports franchise which is certified for funding

18  pursuant to s. 212.20(6)(d)7.c. may use funds provided

19  pursuant to that sub-subparagraph only:

20         (a)  For the public purpose of paying for the

21  acquisition, construction, reconstruction, renovation, capital

22  improvement, or maintenance of the facility for a professional

23  sports franchise or any ancillary facilities that support the

24  operations of any such facility, such as parking structures;

25  convention facilities and meeting rooms; retail and concession

26  space; health, fitness, and training facilities; and youth and

27  amateur sports facilities;

28         (b)  To pay or pledge for the payment of debt service

29  on, or fund debt service reserve funds, arbitrage rebate

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

31  or other indebtedness issued for the acquisition,

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    Florida Senate - 2007                                  SB 2168
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 1  construction, reconstruction, renovation, or capital

 2  improvement of the facility for a professional sports

 3  franchise or ancillary facilities; or

 4         (c)  For reimbursement of costs for the refinancing of

 5  bonds or other indebtedness, including the payment of any

 6  interest and prepayment premium or penalty thereon, issued for

 7  the acquisition, construction, reconstruction, renovation, or

 8  capital improvement of the facility for a professional sports

 9  franchise or ancillary facilities.

10         (6)  The Office of Tourism, Trade, and Economic

11  Development shall notify the Department of Revenue of any

12  facility certified as a facility for a professional sports

13  franchise which is eligible for funding pursuant to s.

14  212.20(6)(d)7.c. The Office of Tourism, Trade, and Economic

15  Development may not certify under this section more than nine

16  facilities as facilities for a professional sports franchise

17  which are eligible for funding pursuant to s. 212.20(6)(d)7.c.

18         (7)  The Department of Revenue may conduct audits as

19  provided in s. 213.34 to verify that the distributions made

20  under this section have been expended as required in this

21  section. Such information is subject to the confidentiality

22  requirements of chapter 213. If the Department of Revenue

23  determines that the distributions made under this section have

24  not been expended as required by this section, it may pursue

25  recovery of the funds pursuant to the laws and rules governing

26  the assessment of taxes.

27         Section 2.  Paragraph (d) of subsection (6) of section

28  212.20, Florida Statutes, is amended to read:

29         212.20  Funds collected, disposition; additional powers

30  of department; operational expense; refund of taxes

31  adjudicated unconstitutionally collected.--

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    Florida Senate - 2007                                  SB 2168
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 1         (6)  Distribution of all proceeds under this chapter

 2  and s. 202.18(1)(b) and (2)(b) shall be as follows:

 3         (d)  The proceeds of all other taxes and fees imposed

 4  pursuant to this chapter or remitted pursuant to s.

 5  202.18(1)(b) and (2)(b) shall be distributed as follows:

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

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

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

 9  other taxes and fees imposed pursuant to this chapter or

10  remitted pursuant to s. 202.18(1)(b) and (2)(b) shall be

11  deposited in monthly installments into the General Revenue

12  Fund.

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

14  the Ecosystem Management and Restoration Trust Fund to be used

15  for water quality improvement and water restoration projects.

16         3.  After the distribution under subparagraphs 1. and

17  2., 8.814 percent of the amount remitted by a sales tax dealer

18  located within a participating county pursuant to s. 218.61

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

20  Tax Clearing Trust Fund. Beginning July 1, 2003, the amount to

21  be transferred pursuant to this subparagraph to the Local

22  Government Half-cent Sales Tax Clearing Trust Fund shall be

23  reduced by 0.1 percent, and the department shall distribute

24  this amount to the Public Employees Relations Commission Trust

25  Fund less $5,000 each month, which shall be added to the

26  amount calculated in subparagraph 4. and distributed

27  accordingly.

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

29  and 3., 0.095 percent shall be transferred to the Local

30  Government Half-cent Sales Tax Clearing Trust Fund and

31  distributed pursuant to s. 218.65.

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    Florida Senate - 2007                                  SB 2168
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 1         5.  After the distributions under subparagraphs 1., 2.,

 2  3., and 4., 2.0440 percent of the available proceeds pursuant

 3  to this paragraph shall be transferred monthly to the Revenue

 4  Sharing Trust Fund for Counties pursuant to s. 218.215.

 5         6.  After the distributions under subparagraphs 1., 2.,

 6  3., and 4., 1.3409 percent of the available proceeds pursuant

 7  to this paragraph shall be transferred monthly to the Revenue

 8  Sharing Trust Fund for Municipalities pursuant to s. 218.215.

 9  If the total revenue to be distributed pursuant to this

10  subparagraph is at least as great as the amount due from the

11  Revenue Sharing Trust Fund for Municipalities and the former

12  Municipal Financial Assistance Trust Fund in state fiscal year

13  1999-2000, no municipality shall receive less than the amount

14  due from the Revenue Sharing Trust Fund for Municipalities and

15  the former Municipal Financial Assistance Trust Fund in state

16  fiscal year 1999-2000. If the total proceeds to be distributed

17  are less than the amount received in combination from the

18  Revenue Sharing Trust Fund for Municipalities and the former

19  Municipal Financial Assistance Trust Fund in state fiscal year

20  1999-2000, each municipality shall receive an amount

21  proportionate to the amount it was due in state fiscal year

22  1999-2000.

23         7.  Of the remaining proceeds:

24         a.  In each fiscal year, the sum of $29,915,500 shall

25  be divided into as many equal parts as there are counties in

26  the state, and one part shall be distributed to each county.

27  The distribution among the several counties shall begin each

28  fiscal year on or before January 5th and shall continue

29  monthly for a total of 4 months.  If a local or special law

30  required that any moneys accruing to a county in fiscal year

31  1999-2000 under the then-existing provisions of s. 550.135 be

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    Florida Senate - 2007                                  SB 2168
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 1  paid directly to the district school board, special district,

 2  or a municipal government, such payment shall continue until

 3  such time that the local or special law is amended or

 4  repealed. The state covenants with holders of bonds or other

 5  instruments of indebtedness issued by local governments,

 6  special districts, or district school boards prior to July 1,

 7  2000, that it is not the intent of this subparagraph to

 8  adversely affect the rights of those holders or relieve local

 9  governments, special districts, or district school boards of

10  the duty to meet their obligations as a result of previous

11  pledges or assignments or trusts entered into which obligated

12  funds received from the distribution to county governments

13  under then-existing s. 550.135.  This distribution

14  specifically is in lieu of funds distributed under s. 550.135

15  prior to July 1, 2000.

16         b.  The department shall distribute $166,667 monthly

17  pursuant to s. 288.1162 to each applicant that has been

18  certified as a "facility for a new professional sports

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

20  franchise" pursuant to s. 288.1162. Up to $41,667 shall be

21  distributed monthly by the department to each applicant that

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

23  training franchise" pursuant to s. 288.1162; however, not more

24  than $416,670 may be distributed monthly in the aggregate to

25  all certified facilities for a retained spring training

26  franchise. Distributions shall begin 60 days following such

27  certification and shall continue for not more than 30 years.

28  Nothing contained in this paragraph shall be construed to

29  allow an applicant certified pursuant to s. 288.1162 to

30  receive more in distributions than actually expended by the

31  

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    Florida Senate - 2007                                  SB 2168
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 1  applicant for the public purposes provided for in s.

 2  288.1162(6).

 3         c.  The department shall distribute $166,667 monthly

 4  pursuant to s. 288.11635 to each applicant that has been

 5  certified pursuant to s. 288.11635. Distributions must begin

 6  60 days after such certification and must continue for not

 7  more than 30 years. This sub-subparagraph does not allow an

 8  applicant certified under s. 288.11635 to receive more in

 9  distributions than the applicant actually expended for the

10  public purposes provided for in s. 288.11635(5).

11         d.c.  Beginning 30 days after notice by the Office of

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

13  Revenue that an applicant has been certified as the

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

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

16  up to 300 months, to the applicant.

17         e.d.  Beginning 30 days after notice by the Office of

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

19  Revenue that the applicant has been certified as the

20  International Game Fish Association World Center facility

21  pursuant to s. 288.1169, and the facility is open to the

22  public, $83,333 shall be distributed monthly, for up to 168

23  months, to the applicant. This distribution is subject to

24  reduction pursuant to s. 288.1169.  A lump sum payment of

25  $999,996 shall be made, after certification and before July 1,

26  2000.

27         8.  All other proceeds shall remain with the General

28  Revenue Fund.

29         Section 3.  Subsection (6) of section 288.1169, Florida

30  Statutes, is amended to read:

31  

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    Florida Senate - 2007                                  SB 2168
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 1         288.1169  International Game Fish Association World

 2  Center facility.--

 3         (6)  The Department of Commerce must recertify every 10

 4  years that the facility is open, that the International Game

 5  Fish Association World Center continues to be the only

 6  international administrative headquarters, fishing museum, and

 7  Hall of Fame in the United States recognized by the

 8  International Game Fish Association, and that the project is

 9  meeting the minimum projections for attendance or sales tax

10  revenues as required at the time of original certification.

11  If the facility is not recertified during this 10-year review

12  as meeting the minimum projections, then funding will be

13  abated until certification criteria are met.  If the project

14  fails to generate $1 million of annual revenues pursuant to

15  paragraph (2)(e), the distribution of revenues pursuant to s.

16  212.20(6)(d)7.e. s. 212.20(6)(d)7.d. shall be reduced to an

17  amount equal to $83,333 multiplied by a fraction, the

18  numerator of which is the actual revenues generated and the

19  denominator of which is $1 million. Such reduction shall

20  remain in effect until revenues generated by the project in a

21  12-month period equal or exceed $1 million.

22         Section 4.  This act shall take effect upon becoming a

23  law.

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 1            *****************************************

 2                          SENATE SUMMARY

 3    Requires the Office of Tourism, Trade, and Economic
      Development to screen applicants for state funding as a
 4    facility for a professional sports franchise. Requires
      that the office adopt rules. Provides prerequisites for
 5    certification as a facility for a professional sports
      franchise. Prohibits a facility from receiving more than
 6    one certification. Authorizes the Department of Revenue
      to conduct audits in order to verify that funds have been
 7    expended as required and to pursue recovery of
      inappropriately expended funds. Specifies the amounts to
 8    be distributed to certified facilities. Provides a period
      for such distributions.
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