Florida Senate - 2013                       CS for CS for SB 306
       
       
       
       By the Committees on Rules; and Appropriations; and Senators
       Braynon and Abruzzo
       
       
       
       595-03402A-13                                          2013306c2
    1                        A bill to be entitled                      
    2         An act relating to economic development; amending s.
    3         125.0104, F.S.; providing that tourist development tax
    4         revenues may also be used to pay the debt service on
    5         bonds that finance the renovation of a professional
    6         sports facility that is publicly owned, or that is on
    7         publicly owned land, and that is publicly operated or
    8         operated by the owner of a professional sports
    9         franchise or other lessee; requiring that the
   10         renovation costs exceed a specified amount; allowing
   11         certain fees and costs to be included in the cost for
   12         renovation; requiring private contributions to the
   13         professional sports facility as a condition for the
   14         use of tourist development taxes; authorizing the use
   15         of certain tax revenues to pay for operation and
   16         maintenance costs of the renovated facility; requiring
   17         a majority-plus-one vote of the membership of the
   18         board of county commissioners to levy a tax for
   19         renovation of a sports franchise facility after
   20         approval by a majority of the electors voting in a
   21         referendum to approve the proposal; authorizing the
   22         referendum to be held before or after the effective
   23         date of this act; providing requirements for the
   24         referendum ballot; providing for nonapplication of the
   25         prohibition against levying such tax in certain cities
   26         and towns under certain conditions; restricting
   27         certain counties from levying the tax; providing for
   28         controlling application notwithstanding conflicting
   29         provisions; authorizing the use of tourist development
   30         tax revenues for financing the renovation of a
   31         professional sports franchise facility; amending s.
   32         212.20, F.S.; authorizing a distribution for an
   33         applicant that has been approved by the Legislature
   34         and certified by the Department of Economic
   35         Opportunity under s. 288.11625, F.S.; providing a
   36         limitation; amending s. 220.153, F.S.; conforming a
   37         cross-reference; repealing s. 220.62(3) and (5), F.S.,
   38         relating to the definition of the terms “international
   39         banking facility” and “foreign person” in the income
   40         tax code; repealing s. 220.63(5), F.S., relating to an
   41         income tax deduction for international banking
   42         facilities; providing retroactive applicability and
   43         effect of certain provisions of the act; creating s.
   44         288.11625, F.S.; providing that the Department of
   45         Economic Opportunity shall screen applicants for state
   46         funding for sports development; defining the terms
   47         “applicant,” “agreement,” “beneficiary,” “facility,”
   48         “major professional sports franchise,” “sports
   49         franchise or association,” “off-season sports training
   50         franchise,” “project,” and “signature event”;
   51         providing a purpose to provide funding for applicants
   52         for constructing, reconstructing, renovating, or
   53         improving a facility; providing an application and
   54         approval process; providing for an annual application
   55         period from June 1 to November 1; providing for the
   56         Department of Economic Opportunity to submit
   57         recommendations to the Legislature by February 1;
   58         requiring legislative approval for state funding;
   59         providing for a contract between the department and
   60         the applicant; providing evaluation criteria for an
   61         applicant to receive state funding; providing for
   62         reimbursement of the state funding under certain
   63         circumstances; providing for evaluation and ranking of
   64         applicants under certain criteria; allowing the
   65         department to determine the type of beneficiary;
   66         providing levels of state funding up to a certain
   67         amount of new incremental state sales tax revenue;
   68         providing for a distribution and calculation;
   69         providing for adjustment of the distribution;
   70         requiring the Department of Revenue to distribute
   71         funds within 45 days of notification by the
   72         department; limiting annual distributions to $15
   73         million; limiting use of funds; requiring an applicant
   74         to submit information to the department annually;
   75         requiring a 5-year review; authorizing the Auditor
   76         General to conduct audits; providing for an
   77         application related to a signature event; authorizing
   78         the Legislative Budget Commission to approve an
   79         application; providing for discontinuation of
   80         distributions under certain circumstances; permitting
   81         the Department of Economic Opportunity and the
   82         Department of Revenue to adopt rules; contingently
   83         creating s. 288.116255, F.S.; providing for an
   84         evaluation; authorizing the Department of Revenue and
   85         the Department of Economic Opportunity to adopt
   86         emergency rules; providing effective dates.
   87  
   88  Be It Enacted by the Legislature of the State of Florida:
   89  
   90         Section 1. Paragraph (n) of subsection (3) and paragraph
   91  (a) of subsection (5) of section 125.0104, Florida Statutes, are
   92  amended to read:
   93         125.0104 Tourist development tax; procedure for levying;
   94  authorized uses; referendum; enforcement.—
   95         (3) TAXABLE PRIVILEGES; EXEMPTIONS; LEVY; RATE.—
   96         (n) In addition to any other tax that is imposed under this
   97  section, a county that has imposed the tax under paragraph (l)
   98  may impose an additional tax that is no greater than 1 percent
   99  on the exercise of the privilege described in paragraph (a) by a
  100  majority plus one vote of the membership of the board of county
  101  commissioners, or as otherwise provided in this paragraph, in
  102  order to:
  103         1. Pay the debt service on bonds issued to finance:
  104         a. The construction, reconstruction, or renovation of a
  105  facility that is either publicly owned and operated, or is
  106  publicly owned and operated by the owner of a professional
  107  sports franchise or other lessee with sufficient expertise or
  108  financial capability to operate such facility, and to pay the
  109  planning and design costs incurred before prior to the issuance
  110  of such bonds for a new professional sports franchise as defined
  111  in s. 288.1162.
  112         b. The acquisition, construction, reconstruction, or
  113  renovation of a facility either publicly owned and operated, or
  114  publicly owned and operated by the owner of a professional
  115  sports franchise or other lessee with sufficient expertise or
  116  financial capability to operate such facility, and to pay the
  117  planning and design costs incurred before prior to the issuance
  118  of such bonds for a retained spring training franchise.
  119         2. Pay the debt service on bonds issued to finance the
  120  renovation of a professional sports franchise facility that is
  121  publicly owned or located on land that is publicly owned and
  122  that is publicly operated or operated by the owner of a
  123  professional sports franchise or other lessee who has sufficient
  124  expertise or financial capability to operate the facility, and
  125  to pay the planning and design costs incurred before the
  126  issuance of such bonds for the renovated professional sports
  127  facility. The cost to renovate the facility must be more than
  128  $300 million, including permitting, architectural, and
  129  engineering fees, and at least a majority of the total
  130  construction cost, exclusive of in-kind contributions, must be
  131  paid for by the ownership group of the professional sports
  132  franchise or other private sources. Tax revenues available to
  133  pay debt service on bonds may be used to pay for operation and
  134  maintenance costs of the facility. A county levying the tax for
  135  the purposes specified in this subparagraph may do so only by a
  136  majority-plus-one vote of the membership of the board of county
  137  commissioners and after approval of the proposal by a majority
  138  vote of the electors voting in a referendum. Referendum approval
  139  of the proposal may be in an election held before or after the
  140  effective date of this act. The referendum ballot must include a
  141  brief description of the proposal and the following question:
  142         FOR the Proposal
  143         AGAINST the Proposal
  144         3.2. Promote and advertise tourism in this the state of
  145  Florida and nationally and internationally; however, if tax
  146  revenues are expended for an activity, service, venue, or event,
  147  the activity, service, venue, or event must shall have as one of
  148  its main purposes the attraction of tourists as evidenced by the
  149  promotion of the activity, service, venue, or event to tourists.
  150  
  151  A county that imposes the tax authorized in this paragraph may
  152  not expend any ad valorem tax revenues for the acquisition,
  153  expansion, construction, reconstruction, or renovation of a
  154  facility for which tax revenues are used pursuant to
  155  subparagraph 1. The provision of paragraph (b) which prohibits
  156  any county authorized to levy a convention development tax
  157  pursuant to s. 212.0305 from levying more than the 2 percent 2
  158  percent tax authorized by this section does shall not apply to
  159  the additional tax authorized by this paragraph in counties that
  160  which levy convention development taxes pursuant to s.
  161  212.0305(4)(a) or (b). Subsection (4) does not apply to the
  162  adoption of the additional tax authorized in this paragraph. The
  163  effective date of the levy and imposition of the tax authorized
  164  under this paragraph is the first day of the second month
  165  following approval of the ordinance by the board of county
  166  commissioners or the first day of any subsequent month specified
  167  in the ordinance. A certified copy of such ordinance must shall
  168  be furnished by the county to the Department of Revenue within
  169  10 days after approval of the ordinance.
  170         (5) AUTHORIZED USES OF REVENUE.—
  171         (a) All tax revenues received pursuant to this section by a
  172  county imposing the tourist development tax must shall be used
  173  by that county for the following purposes only:
  174         1. To acquire, construct, extend, enlarge, remodel, repair,
  175  improve, maintain, operate, or promote one or more publicly
  176  owned and operated convention centers, sports stadiums, sports
  177  arenas, coliseums, auditoriums, aquariums, or museums that are
  178  publicly owned and operated or owned and operated by not-for
  179  profit organizations and open to the public, within the
  180  boundaries of the county or subcounty special taxing district in
  181  which the tax is levied. Tax revenues received pursuant to this
  182  section may also be used for promotion of zoological parks that
  183  are publicly owned and operated or owned and operated by not
  184  for-profit organizations and open to the public. However, these
  185  purposes may be implemented through service contracts and leases
  186  with lessees with sufficient expertise or financial capability
  187  to operate such facilities;
  188         2. To promote and advertise tourism in this the state of
  189  Florida and nationally and internationally; however, if tax
  190  revenues are expended for an activity, service, venue, or event,
  191  the activity, service, venue, or event must shall have as one of
  192  its main purposes the attraction of tourists as evidenced by the
  193  promotion of the activity, service, venue, or event to tourists;
  194         3. To fund convention bureaus, tourist bureaus, tourist
  195  information centers, and news bureaus as county agencies or by
  196  contract with the chambers of commerce or similar associations
  197  in the county, which may include any indirect administrative
  198  costs for services performed by the county on behalf of the
  199  promotion agency; or
  200         4. To finance beach park facilities or beach improvement,
  201  maintenance, renourishment, restoration, and erosion control,
  202  including shoreline protection, enhancement, cleanup, or
  203  restoration of inland lakes and rivers to which there is public
  204  access as those uses relate to the physical preservation of the
  205  beach, shoreline, or inland lake or river. However, any funds
  206  identified by a county as the local matching source for beach
  207  renourishment, restoration, or erosion control projects included
  208  in the long-range budget plan of the state’s Beach Management
  209  Plan, pursuant to s. 161.091, or funds contractually obligated
  210  by a county in the financial plan for a federally authorized
  211  shore protection project may not be used or loaned for any other
  212  purpose. In counties of less than 100,000 population, no more
  213  than 10 percent of the revenues from the tourist development tax
  214  may be used for beach park facilities; or.
  215         5. For other uses specifically allowed under subsection
  216  (3).
  217         Section 2. Paragraph (d) of subsection (6) of section
  218  212.20, Florida Statutes, is amended to read:
  219         212.20 Funds collected, disposition; additional powers of
  220  department; operational expense; refund of taxes adjudicated
  221  unconstitutionally collected.—
  222         (6) Distribution of all proceeds under this chapter and s.
  223  202.18(1)(b) and (2)(b) shall be as follows:
  224         (d) The proceeds of all other taxes and fees imposed
  225  pursuant to this chapter or remitted pursuant to s. 202.18(1)(b)
  226  and (2)(b) must shall be distributed as follows:
  227         1. In any fiscal year, the greater of $500 million, minus
  228  an amount equal to 4.6 percent of the proceeds of the taxes
  229  collected pursuant to chapter 201, or 5.2 percent of all other
  230  taxes and fees imposed pursuant to this chapter or remitted
  231  pursuant to s. 202.18(1)(b) and (2)(b) must shall be deposited
  232  in monthly installments into the General Revenue Fund.
  233         2. After the distribution under subparagraph 1., 8.814
  234  percent of the amount remitted by a sales tax dealer located
  235  within a participating county pursuant to s. 218.61 must shall
  236  be transferred into the Local Government Half-cent Sales Tax
  237  Clearing Trust Fund. Beginning July 1, 2003, the amount to be
  238  transferred must shall be reduced by 0.1 percent, and the
  239  department shall distribute this amount to the Public Employees
  240  Relations Commission Trust Fund less $5,000 each month, which
  241  must shall be added to the amount calculated in subparagraph 3.
  242  and distributed accordingly.
  243         3. After the distribution under subparagraphs 1. and 2.,
  244  0.095 percent must shall be transferred to the Local Government
  245  Half-cent Sales Tax Clearing Trust Fund and distributed pursuant
  246  to s. 218.65.
  247         4. After the distributions under subparagraphs 1., 2., and
  248  3., 2.0440 percent of the available proceeds must shall be
  249  transferred monthly to the Revenue Sharing Trust Fund for
  250  Counties pursuant to s. 218.215.
  251         5. After the distributions under subparagraphs 1., 2., and
  252  3., 1.3409 percent of the available proceeds must shall be
  253  transferred monthly to the Revenue Sharing Trust Fund for
  254  Municipalities pursuant to s. 218.215. If the total revenue to
  255  be distributed pursuant to this subparagraph is at least as
  256  great as the amount due from the Revenue Sharing Trust Fund for
  257  Municipalities and the former Municipal Financial Assistance
  258  Trust Fund in state fiscal year 1999-2000, a no municipality may
  259  not shall receive less than the amount due from the Revenue
  260  Sharing Trust Fund for Municipalities and the former Municipal
  261  Financial Assistance Trust Fund in state fiscal year 1999-2000.
  262  If the total proceeds to be distributed are less than the amount
  263  received in combination from the Revenue Sharing Trust Fund for
  264  Municipalities and the former Municipal Financial Assistance
  265  Trust Fund in state fiscal year 1999-2000, each municipality
  266  shall receive an amount proportionate to the amount it was due
  267  in state fiscal year 1999-2000.
  268         6. Of the remaining proceeds:
  269         a. In each fiscal year, the sum of $29,915,500 must shall
  270  be divided into as many equal parts as there are counties in the
  271  state, and one part must shall be distributed to each county.
  272  The distribution among the several counties must begin each
  273  fiscal year on or before January 5th and continue monthly for a
  274  total of 4 months. If a local or special law required that any
  275  moneys accruing to a county in fiscal year 1999-2000 under the
  276  then-existing provisions of s. 550.135 be paid directly to the
  277  district school board, special district, or a municipal
  278  government, such payment must continue until the local or
  279  special law is amended or repealed. The state covenants with
  280  holders of bonds or other instruments of indebtedness issued by
  281  local governments, special districts, or district school boards
  282  before July 1, 2000, that it is not the intent of this
  283  subparagraph to adversely affect the rights of those holders or
  284  relieve local governments, special districts, or district school
  285  boards of the duty to meet their obligations as a result of
  286  previous pledges or assignments or trusts entered into which
  287  obligated funds received from the distribution to county
  288  governments under then-existing s. 550.135. This distribution
  289  specifically is in lieu of funds distributed under s. 550.135
  290  before July 1, 2000.
  291         b. The department shall, pursuant to s. 288.1162,
  292  distribute $166,667 monthly pursuant to s. 288.1162 to each
  293  applicant certified as a facility for a new or retained
  294  professional sports franchise pursuant to s. 288.1162. Up to
  295  $41,667 must shall be distributed monthly by the department to
  296  each certified applicant as defined in s. 288.11621 for a
  297  facility for a spring training franchise. However, not more than
  298  $416,670 may be distributed monthly in the aggregate to all
  299  certified applicants for facilities for spring training
  300  franchises. Distributions begin 60 days after such certification
  301  and continue for not more than 30 years, except as otherwise
  302  provided in s. 288.11621. A certified applicant identified in
  303  this sub-subparagraph may not receive more in distributions than
  304  expended by the applicant for the public purposes provided for
  305  in s. 288.1162 288.1162(5) or s. 288.11621(3).
  306         c. Beginning 30 days after notice by the Department of
  307  Economic Opportunity to the Department of Revenue that an
  308  applicant has been certified as the professional golf hall of
  309  fame pursuant to s. 288.1168 and is open to the public, $166,667
  310  must shall be distributed monthly, for up to 300 months, to the
  311  applicant.
  312         d. Beginning 30 days after notice by the Department of
  313  Economic Opportunity to the Department of Revenue that the
  314  applicant has been certified as the International Game Fish
  315  Association World Center facility pursuant to s. 288.1169, and
  316  the facility is open to the public, $83,333 must shall be
  317  distributed monthly, for up to 168 months, to the applicant.
  318  This distribution is subject to reduction pursuant to s.
  319  288.1169. A lump sum payment of $999,996 must shall be made,
  320  after certification and before July 1, 2000.
  321         e. Beginning 45 days after notice by the Department of
  322  Economic Opportunity that an applicant has been approved by the
  323  Legislature and certified by the department under s. 288.11625,
  324  the department shall distribute each month an amount equal to
  325  one-twelfth the annual distribution amount certified by the
  326  Department of Economic Opportunity for the applicant. This
  327  distribution is subject to adjustment pursuant to s. 288.11625.
  328  The department may not distribute more than $15 million annually
  329  to all applicants approved by the Legislature and certified by
  330  the Department of Economic Opportunity pursuant to s. 288.11625.
  331         7. All other proceeds must remain in the General Revenue
  332  Fund.
  333         Section 3. Subsection (2) of section 220.153, Florida
  334  Statutes, is amended to read:
  335         220.153 Apportionment by sales factor.—
  336         (2) APPORTIONMENT OF TAXES; ELIGIBILITY.—A taxpayer, not
  337  including a financial organization as defined in s. 220.15(6) or
  338  a bank, savings association, international banking facility, or
  339  banking organization as defined in s. 220.62, doing business
  340  within and without this state, who applies and demonstrates to
  341  the Department of Economic Opportunity that, within a 2-year
  342  period beginning on or after July 1, 2011, it has made qualified
  343  capital expenditures equal to or exceeding $250 million may
  344  apportion its adjusted federal income solely by the sales factor
  345  set forth in s. 220.15(5), commencing in the taxable year that
  346  the Department of Economic Opportunity approves the application,
  347  but not before a taxable year that begins on or after January 1,
  348  2013. Once approved, a taxpayer may elect to apportion its
  349  adjusted federal income for any taxable year using the method
  350  provided under this section or the method provided under s.
  351  220.15.
  352         Section 4. Subsections (3) and (5) of section 220.62,
  353  Florida Statutes, are repealed.
  354         Section 5. Subsection (5) of section 220.63, Florida
  355  Statutes, is repealed.
  356         Section 6. Sections 3, 4, and 5 of this act are effective
  357  with respect to taxable years beginning on or after January 1,
  358  2013.
  359         Section 7. Section 288.11625, Florida Statutes, is created
  360  to read:
  361         288.11625Sports development.—
  362         (1) ADMINISTRATION.—The department shall serve as the state
  363  agency responsible for screening applicants for state funding
  364  under s. 212.20(6)(d)6.e.
  365         (2) DEFINITIONS.—As used in this section, the term:
  366         (a) “Applicant” means a unit of local government as defined
  367  in s. 218.369 that is responsible for the construction,
  368  management, or operation of a facility; or a not-for-profit
  369  entity or for-profit entity if a unit of local government holds
  370  title to the underlying property on which the facility is
  371  located.
  372         (b) “Agreement” means a signed agreement between a unit of
  373  local government and a beneficiary.
  374         (c) “Beneficiary” means a major professional sports
  375  franchise, sports franchise or association, or an off-season
  376  sports training franchise that occupies or uses a facility as
  377  the facility’s primary tenant. A beneficiary may also be an
  378  applicant under this section.
  379         (d) “Facility” means a facility primarily used to host
  380  games or events held by a beneficiary and does not include
  381  ancillary activities including transient lodging facilities, or
  382  retail operations unless physically connected to the facility.
  383  For an off-season sports training franchise, the facility also
  384  includes training facilities that are associated with the
  385  primary facility, but does not include ancillary activities such
  386  as transient lodging facilities, or retail operations unless
  387  physically connected to the facility.
  388         (e) “Major professional sports franchise” means a franchise
  389  that is a member of and competes in the National Football
  390  League, the National Hockey League, the National Basketball
  391  Association, the National League or American League of Major
  392  League Baseball, or Major League Soccer.
  393         (f) “Sports franchise or association” means either a
  394  professional sports franchise that is not a major professional
  395  sports franchise as defined in paragraph (e), or a nationally
  396  recognized professional sports association.
  397         (g) “Off-season sports training franchise” means a major
  398  professional sports franchise team that uses or occupies a local
  399  government-owned facility during the months from February
  400  through April.
  401         (h) “Project” means a proposed construction,
  402  reconstruction, renovation, or improvement of a facility.
  403         (i) “Signature event” means a professional sports event
  404  with significant export factor potential. For purposes of this
  405  paragraph, the term “export factor” means the attraction of
  406  economic activity or growth into the state that otherwise would
  407  not have occurred. Examples of signature events may include, but
  408  are not limited to:
  409         1. National Football League Super Bowls.
  410         2. College football bowl games and playoff games.
  411         3. College basketball and baseball tournaments and
  412  championships.
  413         4. Major professional sports franchise All-Star games.
  414         5. International sporting events and tournaments.
  415         6. Professional automobile race championships or Formula 1
  416  Grand Prix.
  417         (3) PURPOSE.—The purpose of this section is to provide
  418  applicants state funding under s. 212.20(6)(d)6.e. for the
  419  public purpose of constructing, reconstructing, renovating, or
  420  improving a facility.
  421         (4) APPLICATION AND APPROVAL PROCESS.—
  422         (a) The department shall establish the procedures and
  423  application forms deemed necessary pursuant to the requirements
  424  of this section. The department may notify an applicant of any
  425  additional required or incomplete information necessary to
  426  evaluate an application.
  427         (b) The annual application period shall be from June 1
  428  through November 1.
  429         (c) Within 60 days after receipt of a completed
  430  application, the department shall complete its evaluation of the
  431  application as provided under subsection (5) and notify the
  432  applicant in writing as to the department’s decision to
  433  recommend approval of the applicant by the Legislature or to
  434  deny the application.
  435         (d) Annually by February 1, the department shall rank all
  436  applicants and shall provide to the Legislature the list of all
  437  recommended applicants in ranked order of projects most likely
  438  to positively impact the state based on required criteria
  439  established in this section. The list shall include the
  440  department’s evaluation of the applicant.
  441         (e) A recommended applicant’s request for funding must be
  442  approved by the Legislature by general law.
  443         1. An application by a unit of local government which is
  444  approved by the Legislature and subsequently certified by the
  445  department remains certified for the duration of the
  446  beneficiary’s agreement with the applicant or for 30 years,
  447  whichever is less, provided the certified applicant has an
  448  agreement with a beneficiary for a duration of at least 15 years
  449  at the time of initial certification by the department.
  450         2. An application by a beneficiary that is approved by the
  451  Legislature and subsequently certified by the department remains
  452  certified for the duration of the beneficiary’s agreement with
  453  the unit of local government that owns the underlying property
  454  or for 30 years, whichever is less, provided the certified
  455  applicant has an agreement with the unit of local government for
  456  a duration of at least 15 years at the time of initial
  457  certification by the department.
  458         3. An applicant approved by the Legislature and certified
  459  by the department must enter into a contract with the department
  460  which:
  461         a. Specifies the terms of the state’s investment.
  462         b. States the criteria that the certified applicant must
  463  meet in order to remain certified.
  464         c. States that the certified applicant is subject to
  465  decertification, as recommended by the department and approved
  466  by the Legislature, or reduction of funding if the certified
  467  applicant fails to comply with this section or the contract.
  468         d. Specifies information that the certified applicant must
  469  report to the department.
  470         e. Includes any provisions deemed prudent by the
  471  department.
  472         4. Previously certified applicants do not require
  473  legislative approval each year to receive state funding.
  474         (f) Applicants recommended by the department and not
  475  approved by the Legislature may reapply and update any
  476  information in the original application as required by the
  477  department.
  478         (g) The department may recommend no more than one
  479  distribution under this section for any applicant, facility, or
  480  beneficiary at any single point in time.
  481         (5) EVALUATION PROCESS.—
  482         (a) Before recommending an applicant to receive a state
  483  distribution under s. 212.20(6)(d)6.e., the department must
  484  verify that:
  485         1. The applicant or beneficiary is responsible for the
  486  construction, reconstruction, renovation, or improvement of a
  487  facility.
  488         2. If the applicant is also the beneficiary, a unit of
  489  local government holds title to the property on which the
  490  facility and project are located.
  491         3. The project for which the applicant is seeking state
  492  funding has not commenced construction.
  493         4. If the applicant is a unit of local government in whose
  494  jurisdiction the facility will be located, the unit of local
  495  government has an exclusive intent agreement to negotiate in
  496  Florida with the beneficiary.
  497         5.a. The unit of local government in whose jurisdiction the
  498  facility will be located supports the application for state
  499  funds. Such support must be verified by the adoption of a
  500  resolution after a public hearing that the project serves a
  501  public purpose.
  502         b. If the unit of local government is required to hold a
  503  referendum for approval under s. 125.0104(3)(n)2., such
  504  referendum must be affirmatively passed by a majority-plus-one
  505  vote for the applicant to receive state funding under this
  506  section.
  507         6. The applicant or beneficiary has not previously
  508  defaulted or failed to meet any statutory requirements of a
  509  previous state-administered sports-related program under ss.
  510  288.1162, 288.11621, or 288.1168.
  511         7. The applicant or beneficiary has sufficiently
  512  demonstrated a commitment to hire Florida residents, contract
  513  with Florida-based firms, and purchase locally-available
  514  building materials to the greatest extent possible.
  515         8. If the applicant is a unit of local government, the
  516  applicant has a certified copy of a signed agreement with a
  517  beneficiary for the use of the facility. If the applicant is a
  518  beneficiary, the beneficiary must enter into an agreement with
  519  the department. The applicant or beneficiary’s agreement must
  520  also require the following:
  521         a. The beneficiary must reimburse the state for state funds
  522  distributed if the beneficiary relocates before the agreement
  523  expires.
  524         b. The beneficiary must pay for signage or advertising
  525  within the facility. The signage or advertising must be placed
  526  in a prominent location as close to the field of play or
  527  competition as is practical, displayed consistent with signage
  528  or advertising in the same location and like value, and must
  529  feature Florida advertising approved by the Florida Tourism
  530  Industry Marketing Corporation.
  531         c. The owner of a beneficiary must agree to reimburse the
  532  state for state funds if the owner sells the beneficiary before
  533  the agreement expires. Funds paid to the state must be in lump
  534  sum and paid within 90 days after final sale of the beneficiary.
  535         9. The project will be commenced within 12 months after
  536  receiving state funds.
  537         (b) The department shall competitively evaluate and rank
  538  applicants that submit applications for state funding received
  539  during the application period using the following criteria to
  540  evaluate the applicant’s ability to positively impact the state:
  541         1. The proposed use of state funds.
  542         2. The length of time that a beneficiary has agreed to use
  543  the facility.
  544         3. The percentage of total project funds provided by the
  545  applicant and the percentage of total project funds provided by
  546  the beneficiary.
  547         4. The number and type of signature events the facility is
  548  likely to attract over the duration of the agreement with the
  549  beneficiary.
  550         5. The anticipated increase in average annual ticket sales
  551  and attendance at the facility due to the project.
  552         6. The potential to attract out-of-state visitors to the
  553  facility.
  554         7. The length of time a beneficiary has been in the state
  555  or partnered with the unit of local government.
  556         8. The multiuse capabilities of the facility.
  557         9. The facility’s projected use of Florida workers, firms,
  558  and building materials.
  559         10. The amount of private and local financial or in-kind
  560  contributions to the project.
  561         11. The amount of positive advertising or media coverage
  562  the facility generates.
  563         (c) The department shall determine if a beneficiary is a
  564  major professional sports franchise, a sports franchise or
  565  association, or an off-season sports training franchise.
  566         1. If the beneficiary is a major professional sports
  567  franchise, the applicant is eligible to receive annual
  568  distributions equaling up to 80 percent of the new incremental
  569  state sales tax generated to the state over 12 months, up to $3
  570  million over 12 months.
  571         2. If the beneficiary is a professional sports franchise or
  572  association, the applicant is eligible to receive annual
  573  distributions equaling up to 100 percent of the new incremental
  574  state sales tax generated to the state over 12 months, up to $2
  575  million over 12 months.
  576         3. If the beneficiary is an off-season sports training
  577  franchise, the applicant is eligible to receive annual
  578  distributions equaling up to 100 percent of the new incremental
  579  state sales taxes generated to the state over 12 months, up to
  580  $666,660 over 12 months.
  581         (6) DISTRIBUTION.—
  582         (a) At the time of initial evaluation and review by the
  583  department under subsection (5), the applicant must provide an
  584  analysis by an independent certified public accountant which
  585  demonstrates the amount of the revenues generated by the taxes
  586  imposed under chapter 212 with respect to the use and operation
  587  of the facility over the 12 month period immediately prior to
  588  the beginning of the application period. This amount shall be
  589  the baseline. The independent analysis must be verified by the
  590  department.
  591         (b) Except in the case of the period of time prior to
  592  completion of a project or the first four annual distributions,
  593  whichever is sooner, a certified applicant’s annual distribution
  594  shall be based upon the new incremental state sales taxes
  595  generated by sales at the facility during the immediately
  596  previous 12 month period, not to exceed the limitations
  597  established in subsection (5)(c).
  598         (c) For the initial annual distribution under s.
  599  212.20(6)(d)6.e., the department must estimate the amount of new
  600  incremental state sales taxes above the baseline that will be
  601  generated by the sales at the facility as a result of the
  602  project. This amount must be used to calculate the initial
  603  annual distribution to the applicant. The initial annual
  604  distribution may not exceed the lesser of the estimated new
  605  incremental state sales taxes above the baseline or the limits
  606  established in subsection (5)(c). The initial annual
  607  distribution amount must continue through the next full 12 month
  608  period following completion of the project or the certified
  609  applicant’s first four years of annual distributions, whichever
  610  is earlier.
  611         (d)1. Beginning in the first full 12 month period after
  612  completion of a project or first four annual distributions,
  613  whichever is earlier, the applicant shall certify to the
  614  department the actual amount of state sales taxes generated by
  615  sales at the facility over that 12 month period. The applicant
  616  shall submit the certification within 60 days after the end of
  617  the previous 12 month period and such certification must be done
  618  by an analysis by an independent certified public accountant.
  619  The department shall verify the analysis and compare the actual
  620  new incremental state sales taxes generated by sales at the
  621  facility to the previous period’s new incremental state sales
  622  taxes upon which the annual distribution amount was based.
  623         2. If the actual new incremental increase in state sales
  624  taxes generated by sales at the facility during the most recent
  625  12 month period was different than the actual 12 month new
  626  incremental increase in state sales taxes generated by sales at
  627  the facility upon which the previous period’s annual
  628  distribution was based, then the department must certify to the
  629  Department of Revenue an adjustment to the annual distribution
  630  for the current 12 month period downward or upward as
  631  appropriate to reflect the actual new incremental increase in
  632  state sales taxes generated by sales at the facility during the
  633  previous 12 month period, not to exceed the maximum amount
  634  allowable per applicant pursuant to subsection (5)(c).
  635         (e) Upon certification by the department, the Department of
  636  Revenue must adjust the annual distribution under s.
  637  212.20(6)(d)6.e. for the applicant. The first adjusted monthly
  638  distribution in a 12 month period, and subsequent monthly
  639  distributions in the same period if necessary, must also be
  640  adjusted for downward or upward adjustment that should have
  641  begun after the most recent 12 month period.
  642         (f) The Department of Revenue shall begin distributions
  643  within 45 days after notification of initial certification from
  644  the department.
  645         (g) The department must consult with the Department of
  646  Revenue and the Office of Economic and Demographic Research to
  647  develop a standard calculation for estimating new incremental
  648  state sales taxes generated by sales at the facility and
  649  adjustments to distributions.
  650         (h) In any 12 month period when total distributions for all
  651  certified applicants equal $15 million, the department may not
  652  certify new distributions for any additional applicants or
  653  certify to the Department of Revenue any upward adjustments in
  654  existing distributions.
  655         (7) USE OF FUNDS.—An applicant certified under this section
  656  may use state funds only for the public purpose of constructing,
  657  reconstructing, renovating, or improving a facility, or
  658  reimbursing such costs.
  659         (8) REPORTS.—
  660         (a) On or before November 1 of each year, an applicant
  661  certified under this section and approved to receive state funds
  662  must submit to the department any information required by the
  663  department. The department shall summarize this information for
  664  inclusion in the report to the Legislature due February 1 under
  665  subsection (4)(d).
  666         (b) Every 5 years following the first month that an
  667  applicant receives a monthly distribution, the department must
  668  verify that the applicant is meeting all program requirements.
  669  If the applicant is not meeting program requirements, the
  670  department must notify the Governor and Legislature of the
  671  requirements not being met and must make recommendations for
  672  future action, including reducing or halting future
  673  distributions, as part of the report to the Legislature due
  674  February 1 under paragraph (4)(d). The department shall consider
  675  certain exceptions that may have prevented the applicant from
  676  meeting certain program requirements. Such exceptions include:
  677         1. Force majeure events.
  678         2. Significant economic downturn.
  679         3. Other extenuating circumstances.
  680         (9) AUDITS.—The Auditor General may conduct audits as
  681  provided in s. 11.45 to verify that the distributions under this
  682  section are expended as required in this section. If the Auditor
  683  General determines that the distribution payments under this
  684  section are not expended as required by this section, the
  685  Auditor General must notify the Department of Revenue, which may
  686  pursue recovery of distributions under the laws and rules
  687  governing the assessment of taxes.
  688         (10) APPLICATION RELATED TO SIGNATURE EVENT.—An applicant
  689  may apply for the program under this section after May 1, 2013,
  690  if the applicant intends to apply for a signature event prior to
  691  the 2014 Regular Session for which state funds to renovate a
  692  major professional sports franchise facility are requested. The
  693  department must review the application and recommend approval by
  694  the Legislature as required under this section. The Legislative
  695  Budget Commission is authorized to approve applications as
  696  provided under this subsection. State funds may not be
  697  distributed until the department notifies the Department of
  698  Revenue that the applicant was approved by the Legislative
  699  Budget Commission and certified by the department. An applicant
  700  certified under this subsection is subject to all other
  701  provisions and requirements of this section.
  702         (11) DISCONTINUATION OF DISTRIBUTIONS.—The Department of
  703  Revenue shall immediately halt future distributions to any
  704  applicant certified under this section upon notice from the
  705  department that:
  706         (a) An applicant’s beneficiary has broken the terms of its
  707  agreement with the applicant and relocated from the facility or
  708  that the applicant has been decertified.
  709         (b) The department has determined that an applicant has
  710  submitted any information or made a representation that is
  711  determined to be false, misleading, deceptive, or otherwise
  712  untrue.
  713         (c) The applicant has requested to halt future
  714  distributions.
  715         (12) RULEMAKING.—The department may adopt rules to
  716  implement this section. The Department of Revenue may adopt
  717  rules to implement this section.
  718         Section 8. Contingent upon enactment of the Economic
  719  Development Program Evaluation as set forth in SB 406 or similar
  720  legislation, section 288.116255, Florida Statutes, is created to
  721  read:
  722         288.116255Sports Development Program evaluation.—Beginning
  723  in 2015, the Sports Development Program must be evaluated as
  724  part of the Economic Development Program Evaluation, and every 3
  725  years thereafter.
  726         Section 9. (1) The executive directors of the Department of
  727  Revenue and the Department of Economic Opportunity are
  728  authorized, and all conditions are deemed met, to adopt
  729  emergency rules under ss. 120.536(1) and 120.54(4), Florida
  730  Statutes, for the purpose of implementing this act.
  731         (2) Notwithstanding any provision of law, such emergency
  732  rules shall remain in effect for 6 months after the date adopted
  733  and may be renewed during the pendency of procedures to adopt
  734  permanent rules addressing the subject of the emergency rules.
  735         Section 10. This act shall take effect upon becoming a law.