Senate Bill sb7044pb

CODING: Words stricken are deletions; words underlined are additions.
    Florida Senate - 2007   (PROPOSED COMMITTEE BILL)     SPB 7044

    FOR CONSIDERATION By the Committee on Transportation and
    Economic Development Appropriations




    606-765-07

  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.--

                                  1

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






    Florida Senate - 2007   (PROPOSED COMMITTEE BILL)     SPB 7044
    606-765-07




 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

                                  2

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






    Florida Senate - 2007   (PROPOSED COMMITTEE BILL)     SPB 7044
    606-765-07




 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

                                  3

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






    Florida Senate - 2007   (PROPOSED COMMITTEE BILL)     SPB 7044
    606-765-07




 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, within 60 days

 9  thereafter the guarantor will provide to the Department of

10  Revenue an annuity contract issued by a person authorized to

11  issue such contracts in this state which will pay the

12  Department of Revenue each year thereafter 125 percent of the

13  amount distributed pursuant to s. 212.20(6)(d)7.c. to the

14  applicant under this section during such year or, if the same

15  professional sports franchise also formed the basis for an

16  applicant's certification pursuant to s. 288.1162, 125 percent

17  of the amount distributed pursuant to s. 212.20(6)(d)7.b. to

18  the applicant under s. 288.1162 during such year. The

19  guarantee of the current owner of the professional sports

20  franchise shall be returned upon substitution of the guarantee

21  of any successor owner of the professional sports franchise

22  whose ownership has been approved by the governing authority

23  of the league in which the professional sports franchise

24  exists.

25         (g)  The Office of Tourism, Trade, and Economic

26  Development has received evidence that one or more of the

27  municipalities in or near which the facility for a

28  professional sports franchise is located, the county in which

29  the facility for a professional sports franchise is located,

30  the applicant, and the owner of the professional sports

31  franchise that has served as an applicant's basis for

                                  4

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






    Florida Senate - 2007   (PROPOSED COMMITTEE BILL)     SPB 7044
    606-765-07




 1  certification under this section or its affiliates have

 2  previously contributed funds, or are contractually committed

 3  to contribute funds during the next 30 years, for the

 4  construction or improvement of the facility for a professional

 5  sports franchise which, in the aggregate, equals or exceeds

 6  $60 million.

 7  

 8  A professional sports franchise may form the basis for only

 9  one facility certified under this section for funding pursuant

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

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

12  professional sports franchise which is certified for funding

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

14  pursuant to that sub-subparagraph only:

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

16  acquisition, construction, reconstruction, renovation, capital

17  improvement, or maintenance of the facility for a professional

18  sports franchise or any ancillary facilities that support the

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

20  convention facilities and meeting rooms; retail and concession

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

22  amateur sports facilities;

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

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

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

26  or other indebtedness issued for the acquisition,

27  construction, reconstruction, renovation, or capital

28  improvement of the facility for a professional sports

29  franchise or ancillary facilities; or

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

31  bonds or other indebtedness, including the payment of any

                                  5

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






    Florida Senate - 2007   (PROPOSED COMMITTEE BILL)     SPB 7044
    606-765-07




 1  interest and prepayment premium or penalty thereon, issued for

 2  the acquisition, construction, reconstruction, renovation, or

 3  capital improvement of the facility for a professional sports

 4  franchise or ancillary facilities.

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

 6  Development shall notify the Department of Revenue of any

 7  facility certified as a facility for a professional sports

 8  franchise which is eligible for funding pursuant to s.

 9  212.20(6)(d)7.c. The Office of Tourism, Trade, and Economic

10  Development may not certify under this section more than nine

11  facilities as facilities for a professional sports franchise

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

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

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

15  under this section have been expended as required in this

16  section. Such information is subject to the confidentiality

17  requirements of chapter 213. If the Department of Revenue

18  determines that the distributions made under this section have

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

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

21  the assessment of taxes.

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

23  212.20, Florida Statutes, is amended to read:

24         212.20  Funds collected, disposition; additional powers

25  of department; operational expense; refund of taxes

26  adjudicated unconstitutionally collected.--

27         (6)  Distribution of all proceeds under this chapter

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

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

30  pursuant to this chapter or remitted pursuant to s.

31  202.18(1)(b) and (2)(b) shall be distributed as follows:

                                  6

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






    Florida Senate - 2007   (PROPOSED COMMITTEE BILL)     SPB 7044
    606-765-07




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

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

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

 4  other taxes and fees imposed pursuant to this chapter or

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

 6  deposited in monthly installments into the General Revenue

 7  Fund.

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

 9  the Ecosystem Management and Restoration Trust Fund to be used

10  for water quality improvement and water restoration projects.

11         3.  After the distribution under subparagraphs 1. and

12  2., 8.814 percent of the amount remitted by a sales tax dealer

13  located within a participating county pursuant to s. 218.61

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

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

16  be transferred pursuant to this subparagraph to the Local

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

18  reduced by 0.1 percent, and the department shall distribute

19  this amount to the Public Employees Relations Commission Trust

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

21  amount calculated in subparagraph 4. and distributed

22  accordingly.

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

24  and 3., 0.095 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.  After the distributions under subparagraphs 1., 2.,

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

29  to this paragraph shall be transferred monthly to the Revenue

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

31  

                                  7

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






    Florida Senate - 2007   (PROPOSED COMMITTEE BILL)     SPB 7044
    606-765-07




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

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

 3  to this paragraph shall be transferred monthly to the Revenue

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

 5  If the total revenue to be distributed pursuant to this

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

 7  Revenue Sharing Trust Fund for Municipalities and the former

 8  Municipal Financial Assistance Trust Fund in state fiscal year

 9  1999-2000, no municipality shall receive less than the amount

10  due from the Revenue Sharing Trust Fund for Municipalities and

11  the former Municipal Financial Assistance Trust Fund in state

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

13  are less than the amount received in combination from the

14  Revenue Sharing Trust Fund for Municipalities and the former

15  Municipal Financial Assistance Trust Fund in state fiscal year

16  1999-2000, each municipality shall receive an amount

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

18  1999-2000.

19         7.  Of the remaining proceeds:

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

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

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

23  The distribution among the several counties shall begin each

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

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

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

27  1999-2000 under the then-existing provisions of s. 550.135 be

28  paid directly to the district school board, special district,

29  or a municipal government, such payment shall continue until

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

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

                                  8

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






    Florida Senate - 2007   (PROPOSED COMMITTEE BILL)     SPB 7044
    606-765-07




 1  instruments of indebtedness issued by local governments,

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

 3  2000, that it is not the intent of this subparagraph to

 4  adversely affect the rights of those holders or relieve local

 5  governments, special districts, or district school boards of

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

 7  pledges or assignments or trusts entered into which obligated

 8  funds received from the distribution to county governments

 9  under then-existing s. 550.135.  This distribution

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

11  prior to July 1, 2000.

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

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

14  certified as a "facility for a new professional sports

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

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

17  distributed monthly by the department to each applicant that

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

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

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

21  all certified facilities for a retained spring training

22  franchise. Distributions shall begin 60 days following such

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

24  Nothing contained in this paragraph shall be construed to

25  allow an applicant certified pursuant to s. 288.1162 to

26  receive more in distributions than actually expended by the

27  applicant for the public purposes provided for in s.

28  288.1162(6).

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

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

31  certified pursuant to s. 288.11635. Distributions must begin

                                  9

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






    Florida Senate - 2007   (PROPOSED COMMITTEE BILL)     SPB 7044
    606-765-07




 1  60 days after such certification and must continue for not

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

 3  applicant certified under s. 288.11635 to receive more in

 4  distributions than the applicant actually expended for the

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

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

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

 8  Revenue that an applicant has been certified as the

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

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

11  up to 300 months, to the applicant.

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

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

14  Revenue that the applicant has been certified as the

15  International Game Fish Association World Center facility

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

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

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

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

20  $999,996 shall be made, after certification and before July 1,

21  2000.

22         8.  All other proceeds shall remain with the General

23  Revenue Fund.

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

25  Statutes, is amended to read:

26         288.1169  International Game Fish Association World

27  Center facility.--

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

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

30  Fish Association World Center continues to be the only

31  international administrative headquarters, fishing museum, and

                                  10

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






    Florida Senate - 2007   (PROPOSED COMMITTEE BILL)     SPB 7044
    606-765-07




 1  Hall of Fame in the United States recognized by the

 2  International Game Fish Association, and that the project is

 3  meeting the minimum projections for attendance or sales tax

 4  revenues as required at the time of original certification.

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

 6  as meeting the minimum projections, then funding will be

 7  abated until certification criteria are met.  If the project

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

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

10  212.20(6)(d)7.e. s. 212.20(6)(d)7.d. shall be reduced to an

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

12  numerator of which is the actual revenues generated and the

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

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

15  12-month period equal or exceed $1 million.

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

17  law.

18  

19            *****************************************

20                          SENATE SUMMARY

21    Requires the Office of Tourism, Trade, and Economic
      Development to screen applicants for state funding as a
22    facility for a professional sports franchise. Requires
      that the office adopt rules. Provides prerequisites for
23    certification as a facility for a professional sports
      franchise. Prohibits a facility from receiving more than
24    one certification. Authorizes the Department of Revenue
      to conduct audits in order to verify that funds have been
25    expended as required and to pursue recovery of
      inappropriately expended funds. Specifies the amounts to
26    be distributed to certified facilities. Provides a period
      for such distributions.
27  

28  

29  

30  

31  

                                  11

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