Florida Senate - 2013 COMMITTEE AMENDMENT Bill No. CS for CS for SB 306 Barcode 277498 LEGISLATIVE ACTION Senate . House Comm: RCS . 04/22/2013 . . . . ————————————————————————————————————————————————————————————————— ————————————————————————————————————————————————————————————————— The Committee on Appropriations (Lee, Thrasher, and Gardiner) recommended the following: 1 Senate Amendment (with title amendment) 2 3 Delete lines 368 - 734 4 and insert: 5 management, or operation of a facility; or an entity that is 6 responsible for the construction, management, or operation of a 7 facility if a unit of local government holds title to the 8 underlying property on which the facility is located. 9 (b) “Agreement” means a signed agreement between a unit of 10 local government and a beneficiary. 11 (c) “Beneficiary” means a professional sports franchise of 12 the National Football League, the National Hockey League, the 13 National Basketball Association, the National League or American 14 League of Major League Baseball, Major League Soccer, or the 15 National Association of Stock Car Auto Racing, or a nationally 16 recognized professional sports association that occupies or uses 17 a facility as the facility’s primary tenant. A beneficiary may 18 also be an applicant under this section. 19 (d) “Facility” means a facility primarily used to host 20 games or events held by a beneficiary and does not include any 21 portion used to provide transient lodging. For a professional 22 sports franchise that uses or occupies a local government-owned 23 facility during the months from February through April, the 24 facility also includes training facilities that are associated 25 with the primary facility, but does not include any portion used 26 to provide transient lodging. 27 (e) “Project” means a proposed construction, 28 reconstruction, renovation, or improvement of a facility. 29 (f) “State sales taxes generated by sales at the facility” 30 means state sales taxes imposed under chapter 212 generated by 31 admissions to the facility or by sales made by vendors at the 32 facility who are accessible to persons attending events 33 occurring at the facility. 34 (g) “Signature event” means a professional sports event 35 with significant export factor potential. For purposes of this 36 paragraph, the term “export factor” means the attraction of 37 economic activity or growth into the state that otherwise would 38 not have occurred. Examples of signature events may include, but 39 are not limited to: 40 1. National Football League Super Bowls. 41 2. Professional sports All-Star games. 42 3. International sporting events and tournaments. 43 4. Professional automobile race championships or Formula 1 44 Grand Prix. 45 5. The establishment of a new professional sports franchise 46 in this state. 47 (3) PURPOSE.—The purpose of this section is to provide 48 applicants state funding under s. 212.20(6)(d)6.e. for the 49 public purpose of constructing, reconstructing, renovating, or 50 improving a facility. 51 (4) APPLICATION AND APPROVAL PROCESS.— 52 (a) The department shall establish the procedures and 53 application forms deemed necessary pursuant to the requirements 54 of this section. The department may notify an applicant of any 55 additional required or incomplete information necessary to 56 evaluate an application. 57 (b) The annual application period shall be from June 1 58 through November 1. 59 (c) Within 60 days after receipt of a completed 60 application, the department shall complete its evaluation of the 61 application as provided under subsection (5) and notify the 62 applicant in writing as to the department’s decision to 63 recommend approval of the applicant by the Legislature or to 64 deny the application. 65 (d) Annually by February 1, the department shall rank all 66 applicants and shall provide to the Legislature the list of all 67 recommended applicants in ranked order of projects most likely 68 to positively impact the state based on required criteria 69 established in this section. The list shall include the 70 department’s evaluation of the applicant. 71 (e) A recommended applicant’s request for funding must be 72 approved by the Legislature by general law. 73 1. An application by a unit of local government which is 74 approved by the Legislature and subsequently certified by the 75 department remains certified for the duration of the 76 beneficiary’s agreement with the applicant or for 30 years, 77 whichever is less, provided the certified applicant has an 78 agreement with a beneficiary at the time of initial 79 certification by the department. 80 2. An application by a beneficiary that is approved by the 81 Legislature and subsequently certified by the department remains 82 certified for the duration of the beneficiary’s agreement with 83 the unit of local government that owns the underlying property 84 or for 30 years, whichever is less, provided the certified 85 applicant has an agreement with the unit of local government at 86 the time of initial certification by the department. 87 3. Previously certified applicants under this section do 88 not require legislative approval each year to receive state 89 funding. 90 (f) Applicants recommended by the department and not 91 approved by the Legislature may reapply and update any 92 information in the original application as required by the 93 department. 94 (g) The department may recommend no more than one 95 distribution under this section for any applicant, facility, or 96 beneficiary at a time. 97 (5) EVALUATION PROCESS.— 98 (a) Before recommending an applicant to receive a state 99 distribution under s. 212.20(6)(d)6.e., the department must 100 verify that: 101 1. The applicant or beneficiary is responsible for the 102 construction, reconstruction, renovation, or improvement of a 103 facility. 104 2. If the applicant is also the beneficiary, a unit of 105 local government holds title to the property on which the 106 facility and project are located. 107 3. The project for which the applicant is seeking state 108 funding has not commenced construction. 109 4. If the applicant is a unit of local government in whose 110 jurisdiction the facility will be located, the unit of local 111 government has an exclusive intent agreement to negotiate in 112 Florida with the beneficiary. 113 5.a. The unit of local government in whose jurisdiction the 114 facility will be located supports the application for state 115 funds. Such support must be verified by the adoption of a 116 resolution after a public hearing that the project serves a 117 public purpose. 118 b. If the unit of local government is required to pass a 119 resolution by a majority plus-one vote by the local government’s 120 governing body and to hold a referendum for approval under s. 121 125.0104(3)(n)2., such resolution and referendum must 122 affirmatively pass for the applicant to receive state funding 123 under this section. 124 6. The applicant or beneficiary has not previously 125 defaulted or failed to meet any statutory requirements of a 126 previous state-administered sports-related program under ss. 127 288.1162, 288.11621, or 288.1168. 128 7. The applicant or beneficiary has sufficiently 129 demonstrated a commitment to employ Florida residents, contract 130 with Florida-based firms, and purchase locally-available 131 building materials to the greatest extent possible. 132 8. If the applicant is a unit of local government, the 133 applicant has a certified copy of a signed agreement with a 134 beneficiary for the use of the facility. If the applicant is a 135 beneficiary, the beneficiary must enter into an agreement with 136 the department. The applicant or beneficiary’s agreement must 137 also require the following: 138 a. The beneficiary must reimburse the state for state funds 139 that have been distributed and will be distributed if the 140 beneficiary relocates before the agreement expires. 141 b. The beneficiary must pay for signage or advertising 142 within the facility. The signage or advertising must be placed 143 in a prominent location as close to the field of play or 144 competition as is practical, displayed consistent with signage 145 or advertising in the same location and like value, and must 146 feature Florida advertising approved by the Florida Tourism 147 Industry Marketing Corporation. 148 9. The project will be commenced within 12 months after 149 receiving state funds. 150 (b) The department shall competitively evaluate and rank 151 applicants that submit applications for state funding received 152 during the application period using the following criteria to 153 evaluate the applicant’s ability to positively impact the state: 154 1. The proposed use of state funds. 155 2. The length of time that a beneficiary has agreed to use 156 the facility. 157 3. The percentage of total project funds provided by the 158 applicant and the percentage of total project funds provided by 159 the beneficiary. 160 4. The number and type of signature events the facility is 161 likely to attract during the duration of the agreement with the 162 beneficiary. 163 5. The anticipated increase in average annual ticket sales 164 and attendance at the facility due to the project. 165 6. The potential to attract out-of-state visitors to the 166 facility. 167 7. The length of time a beneficiary has been in the state 168 or partnered with the unit of local government. 169 8. The multiuse capabilities of the facility. 170 9. The facility’s projected employment of Florida 171 residents, contracts with Florida-based firms, and purchases of 172 locally-available building materials. 173 10. The amount of private and local financial or in-kind 174 contributions to the project. 175 11. The amount of positive advertising or media coverage 176 the facility generates. 177 (6) DISTRIBUTION.— 178 (a) The department shall determine the annual distribution 179 amount an applicant may receive based on the total cost of the 180 project. 181 1. If the total project cost is $200 million or greater, 182 the applicant is eligible to receive annual distributions equal 183 to the new incremental state sales taxes generated by sales at 184 the facility during 12 months as provided under paragraph (b)2., 185 up to $3 million. 186 2. If the total project cost is at least $100 million but 187 less than $200 million, the applicant is eligible to receive 188 annual distributions equal to the new incremental state sales 189 taxes generated by sales at the facility during 12 months as 190 provided under paragraph (b)2., up to $2 million. 191 3. If the total project cost is less than $100 million, the 192 applicant is eligible to receive annual distributions equal to 193 the new incremental state sales taxes generated by sales at the 194 facility during 12 months as provided under paragraph (b)2., up 195 to $666,660. 196 (b) At the time of initial evaluation and review by the 197 department under subsection (5), the applicant must provide an 198 analysis by an independent certified public accountant which 199 demonstrates: 200 1. The amount of state sales taxes generated by sales at 201 the facility during the 12 month period immediately prior to the 202 beginning of the application period. This amount shall be the 203 baseline. 204 2. The expected amount of new incremental state sales taxes 205 generated by sales at the facility above the baseline that will 206 be generated as a result of the project. 207 (c) The independent analysis provided in paragraph (b) must 208 be verified by the department. 209 (d) The Department of Revenue shall begin distributions 210 within 45 days after notification of initial certification from 211 the department. 212 (e) The department must consult with the Department of 213 Revenue and the Office of Economic and Demographic Research to 214 develop a standard calculation for estimating new incremental 215 state sales taxes generated by sales at the facility and 216 adjustments to distributions. 217 (f) In any 12 month period when total distributions for all 218 certified applicants equal $13 million, the department may not 219 certify new distributions for any additional applicants. 220 (7) CONTRACT.—An applicant approved by the Legislature and 221 certified by the department must enter into a contract with the 222 department which: 223 (a) Specifies the terms of the state’s investment. 224 (b) States the criteria that the certified applicant must 225 meet in order to remain certified. 226 (c) Requires the applicant to submit the independent 227 analysis required under subsection (6) and an annual independent 228 analysis. 229 1. The applicant must agree to submit to the department, 230 beginning twelve months after completion of a project or twelve 231 months after the first four annual distributions, whichever is 232 earlier, an annual analysis by an independent certified public 233 accountant demonstrating the actual amount of new incremental 234 state sales taxes generated by sales at the facility during the 235 previous 12 month period. The applicant shall certify to the 236 department a comparison of the actual amount of state sales 237 taxes generated by sales at the facility during the previous 12 238 month period to the baseline under subparagraph (6)(b)1. 239 2. The applicant must submit the certification within 60 240 days after the end of the previous 12 month period. The 241 department shall verify the analysis. 242 (d) Specifies information that the certified applicant must 243 report to the department. 244 (e) Requires the applicant to reimburse the state for the 245 amount each year that the actual new incremental state sales 246 taxes generated by sales at the facility during the most recent 247 12 month period was less than the annual distribution under 248 paragraph (6)(a). This requirement applies twelve months after 249 completion of a project or 12 months after the first four annual 250 distributions, whichever is earlier. 251 1. If the applicant is unable or unwilling to reimburse the 252 state in any year for the amount equal to the difference between 253 the actual new incremental state sales taxes generated by sales 254 at the facility and the annual distribution under paragraph 255 (6)(a), the department may place a lien on the applicant’s 256 facility. 257 2. If the applicant is a municipality or county, it may 258 reimburse the state from its half-cent sales tax allocation, as 259 provided in s. 218.64(3). 260 3. Reimbursements must be sent to the Department of Revenue 261 for deposit into the General Revenue Fund. 262 (f) Includes any provisions deemed prudent by the 263 department. 264 (8) USE OF FUNDS.—An applicant certified under this section 265 may use state funds only for the following purposes: 266 1. Constructing, reconstructing, renovating, or improving a 267 facility, or reimbursing such costs. 268 2. Paying or pledging for the payment of debt service on, 269 or to fund debt service reserve funds, arbitrage rebate 270 obligations, or other amounts payable with respect thereto, 271 bonds issued for the construction or renovation of such 272 facility, or for the reimbursement of such costs or the 273 refinancing of bonds issued for such purposes. 274 (9) REPORTS.— 275 (a) On or before November 1 of each year, an applicant 276 certified under this section and approved to receive state funds 277 must submit to the department any information required by the 278 department. The department shall summarize this information for 279 inclusion in the report to the Legislature due February 1 under 280 subsection (4)(d). 281 (b) Every 5 years following the first month that an 282 applicant receives a monthly distribution, the department must 283 verify that the applicant is meeting all program requirements. 284 If the applicant is not meeting program requirements, the 285 department must notify the Governor and Legislature of the 286 requirements not being met and must make recommendations for 287 future action as part of the report to the Legislature due 288 February 1 under paragraph (4)(d). The department shall consider 289 certain exceptions that may have prevented the applicant from 290 meeting certain program requirements. Such exceptions include: 291 1. Force majeure events. 292 2. Significant economic downturn. 293 3. Other extenuating circumstances. 294 (10) AUDITS.—The Auditor General may conduct audits as 295 provided in s. 11.45 to verify the independent analysis required 296 under paragraph (6)(b) and paragraph (7)(c) and to verify that 297 the distributions under this section are expended as required in 298 this section. The Auditor General shall report all findings to 299 the department. If the Auditor General determines that the 300 distribution payments under this section are not expended as 301 required by this section, the Auditor General must notify the 302 Department of Revenue, which may pursue recovery of 303 distributions under the laws and rules governing the assessment 304 of taxes. 305 (11) APPLICATION RELATED TO SIGNATURE EVENT.—An applicant 306 may apply for the program under this section after May 1, 2013, 307 if the applicant intends to apply for a signature event prior to 308 the 2014 Regular Session for which state funds for a project are 309 requested. The department must review the application and 310 recommend approval by the Legislature as required under this 311 section. The Legislative Budget Commission is authorized to 312 approve applications as provided under this subsection. For an 313 applicant under this subsection, distributions under this 314 section are conditioned upon award of the signature event 315 applied for which was the basis of the application under this 316 subsection. State funds may not be distributed until the 317 department notifies the Department of Revenue that the applicant 318 was approved by the Legislative Budget Commission and certified 319 by the department. An applicant certified under this subsection 320 is subject to all other provisions and requirements of this 321 section. An applicant that fails to meet the conditions of this 322 subsection is eligible to reapply during future application 323 periods. 324 (12) REPAYMENT OF DISTRIBUTIONS.—An applicant certified 325 under this section may be subject to repayment of distributions 326 upon the occurrence of any of the following: 327 (a) An applicant’s beneficiary has broken the terms of its 328 agreement with the applicant and relocated from the facility. 329 The beneficiary must reimburse the state for state funds that 330 have been distributed and will be distributed if the beneficiary 331 relocates before the agreement expires. 332 (b) The department has determined that an applicant has 333 submitted any information or made a representation that is 334 determined to be false, misleading, deceptive, or otherwise 335 untrue. The applicant must reimburse the state for state funds 336 that have been distributed and will be distributed if such 337 determination is made. 338 (13) HALTING OF PAYMENTS.—The applicant may request to halt 339 future distributions by providing the department with written 340 notice at least 20 days prior to the next monthly distribution 341 payment. The department must immediately notify the Department 342 of Revenue to halt future payments. 343 (14) RULEMAKING.—The department may adopt rules to 344 implement this section. 345 Section 8. Contingent upon enactment of the Economic 346 Development Program Evaluation as set forth in SB 406 or similar 347 legislation, section 288.116255, Florida Statutes, is created to 348 read: 349 288.116255 Sports Development Program evaluation.—Beginning 350 in 2015, the Sports Development Program must be evaluated as 351 part of the Economic Development Program Evaluation, and every 3 352 years thereafter. 353 Section 9. Subsections (2) and (3) of section 218.64, 354 Florida Statutes, are amended to read: 355 218.64 Local government half-cent sales tax; uses; 356 limitations.— 357 (2) Municipalities shall expend their portions of the local 358 government half-cent sales tax only for municipality-wide 359 programs, for reimbursing the state as required by a contract 360 under subsection (7) of s. 288.11625, or for municipality-wide 361 property tax or municipal utility tax relief. All utility tax 362 rate reductions afforded by participation in the local 363 government half-cent sales tax shall be applied uniformly across 364 all types of taxed utility services. 365 (3) Subject to ordinances enacted by the majority of the 366 members of the county governing authority and by the majority of 367 the members of the governing authorities of municipalities 368 representing at least 50 percent of the municipal population of 369 such county, counties may use up to$2$3 million annually of 370 the local government half-cent sales tax allocated to that 371 county forfunding forany of the followingapplicantspurposes: 372 (a) Funding a certified applicant as a facility for a new 373 or retained professional sports franchise under s. 288.1162 or a 374 certified applicant as defined in s. 288.11621 for a facility 375 for a spring training franchise. It is the Legislature’s intent 376 that the provisions of s. 288.1162, including, but not limited 377 to, the evaluation process by the Department of Economic 378 Opportunity except for the limitation on the number of certified 379 applicants or facilities as provided in that section and the 380 restrictions set forth in s. 288.1162(8), shall apply to an 381 applicant’s facility to be funded by local government as 382 provided in this subsection. 383 (b) Funding a certified applicant as a “motorsport 384 entertainment complex,” as provided for in s. 288.1171. Funding 385 for each franchise or motorsport complex shall begin 60 days 386 after certification and shall continue for not more than 30 387 years. 388 (c) Reimbursing the state as required by a contract under 389 subsection (7) of s. 288.11625. 390 Section 10. (1) The executive director of the Department of 391 Economic Opportunity is authorized, and all conditions are 392 deemed met, to adopt emergency rules under ss. 120.536(1) and 393 120.54(4), Florida Statutes, for the purpose of implementing 394 this act. 395 (2) Notwithstanding any provision of law, such emergency 396 rules shall remain in effect for 6 months after the date adopted 397 and may be renewed during the pendency of procedures to adopt 398 permanent rules addressing the subject of the emergency rules. 399 400 ================= T I T L E A M E N D M E N T ================ 401 And the title is amended as follows: 402 Delete lines 59 - 85 403 and insert: 404 providing evaluation criteria for an applicant to 405 receive state funding; providing for evaluation and 406 ranking of applicants under certain criteria; allowing 407 the department to determine the type of beneficiary; 408 providing levels of state funding up to a certain 409 amount of new incremental state sales tax revenue; 410 providing for a distribution and calculation; 411 requiring the Department of Revenue to distribute 412 funds within 45 days of notification by the 413 department; limiting annual distributions to $13 414 million; providing for a contract between the 415 department and the applicant; limiting use of funds; 416 requiring an applicant to submit information to the 417 department annually; requiring a 5-year review; 418 authorizing the Auditor General to conduct audits; 419 providing for an application related to a signature 420 event; requiring award of a signature event as a 421 condition for receiving distributions for an 422 application related to a signature event; authorizing 423 the Legislative Budget Commission to approve an 424 application; providing for reimbursement of the state 425 funding under certain circumstances; providing for 426 discontinuation of distributions upon an applicant’s 427 request; permitting the Department of Economic 428 Opportunity to adopt rules; contingently creating s. 429 288.116255, F.S.; providing for an evaluation; 430 amending s. 218.64, F.S.; providing for municipalities 431 and counties to expend a portion of local government 432 half-cent sales tax revenues to reimburse the state as 433 required by a contract; authorizing the Department of 434 Economic Opportunity to adopt