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)
    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.
   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         288.116255Sports 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 for funding for any of the following applicants purposes:
  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.
  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