Florida Senate - 2013 CS for CS for CS for SB 306
By the Committees on Appropriations; Rules; and Appropriations;
and Senators Braynon and Abruzzo
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 proposed use of the tax
22 revenues; authorizing the referendum to be held before
23 or after the effective date of this act; providing
24 requirements for the referendum ballot; providing for
25 nonapplication of the prohibition against levying such
26 tax in certain cities and towns under certain
27 conditions; authorizing the use of tourist development
28 tax revenues for financing the renovation of a
29 professional sports franchise facility; amending s.
30 212.20, F.S.; authorizing a distribution for an
31 applicant that has been approved by the Legislature
32 and certified by the Department of Economic
33 Opportunity under s. 288.11625, F.S.; providing a
34 limitation; amending s. 220.153, F.S.; conforming a
35 cross-reference; repealing s. 220.62(3) and (5), F.S.,
36 relating to the definitions of the terms
37 “international banking facility” and “foreign person”
38 in the income tax code; repealing s. 220.63(5), F.S.,
39 relating to an income tax deduction for international
40 banking facilities; providing retroactive
41 applicability and effect of certain provisions of the
42 act; creating s. 288.11625, F.S.; providing that the
43 Department of Economic Opportunity shall screen
44 applicants for state funding for sports development;
45 defining the terms “agreement,” “applicant,”
46 “beneficiary,” “facility,” “project,” “state sales
47 taxes generated by sales at the facility,” and
48 “signature event”; providing a purpose to provide
49 funding for applicants for constructing,
50 reconstructing, renovating, or improving a facility;
51 providing an application and approval process;
52 providing for an annual application period; providing
53 for the Department of Economic Opportunity to submit
54 recommendations to the Legislature by a certain date;
55 requiring legislative approval for state funding;
56 providing evaluation criteria for an applicant to
57 receive state funding; providing for evaluation and
58 ranking of applicants under certain criteria; allowing
59 the department to determine the type of beneficiary;
60 providing levels of state funding up to a certain
61 amount of new incremental state sales tax revenue;
62 providing for a distribution and calculation;
63 requiring the Department of Revenue to distribute
64 funds within a certain timeframe after notification by
65 the department; limiting annual distributions to $13
66 million; providing for a contract between the
67 department and the applicant; limiting use of funds;
68 requiring an applicant to submit information to the
69 department annually; requiring a 5-year review;
70 authorizing the Auditor General to conduct audits;
71 providing for an application related to a signature
72 event; requiring award of a signature event as a
73 condition for receiving distributions for an
74 application related to a signature event; authorizing
75 the Legislative Budget Commission to approve an
76 application; providing for reimbursement of the state
77 funding under certain circumstances; providing for
78 discontinuation of distributions upon an applicant’s
79 request; authorizing the Department of Economic
80 Opportunity to adopt rules; contingently creating s.
81 288.116255, F.S.; providing for an evaluation;
82 amending s. 218.64, F.S.; providing for municipalities
83 and counties to expend a portion of local government
84 half-cent sales tax revenues to reimburse the state as
85 required by a contract; authorizing the Department of
86 Economic Opportunity to adopt emergency rules;
87 providing effective dates.
89 Be It Enacted by the Legislature of the State of Florida:
91 Section 1. Paragraph (n) of subsection (3) and paragraph
92 (a) of subsection (5) of section 125.0104, Florida Statutes, are
93 amended to read:
94 125.0104 Tourist development tax; procedure for levying;
95 authorized uses; referendum; enforcement.—
96 (3) TAXABLE PRIVILEGES; EXEMPTIONS; LEVY; RATE.—
97 (n) In addition to any other tax that is imposed under this
98 section, a county that has imposed the tax under paragraph (l)
99 may impose an additional tax that is no greater than 1 percent
100 on the exercise of the privilege described in paragraph (a) by a
101 majority plus one vote of the membership of the board of county
102 commissioners, or as otherwise provided in this paragraph, in
103 order to:
104 1. Pay the debt service on bonds issued to finance:
105 a. The construction, reconstruction, or renovation of a
106 facility that is
either publicly owned and operated , or is
107 publicly owned and operated by the owner of a professional
108 sports franchise or other lessee with sufficient expertise or
109 financial capability to operate such facility, and to pay the
110 planning and design costs incurred before prior to the issuance
111 of such bonds for a new professional sports franchise as defined
112 in s. 288.1162.
113 b. The acquisition, construction, reconstruction, or
114 renovation of a facility either publicly owned and operated, or
115 publicly owned and operated by the owner of a professional
116 sports franchise or other lessee with sufficient expertise or
117 financial capability to operate such facility, and to pay the
118 planning and design costs incurred before prior to the issuance
119 of such bonds for a retained spring training franchise.
120 2. Pay the debt service on bonds issued to finance the
121 renovation of a professional sports franchise facility that is
122 publicly owned, or located on land that is publicly owned, and
123 that is publicly operated or operated by the owner of a
124 professional sports franchise or other lessee who has sufficient
125 expertise or financial capability to operate the facility, and
126 to pay the planning and design costs incurred before the
127 issuance of such bonds for the renovated professional sports
128 facility. The cost to renovate the facility must be more than
129 $300 million, including permitting, architectural, and
130 engineering fees, and at least a majority of the total
131 construction cost, exclusive of in-kind contributions, must be
132 paid for by the ownership group of the professional sports
133 franchise or other private sources. Tax revenues available to
134 pay debt service on bonds may be used to pay for operation and
135 maintenance costs of the facility. A county levying the tax for
136 the purposes specified in this subparagraph may do so only by a
137 majority plus one vote of the membership of the board of county
138 commissioners and after approval of the proposed use of the tax
139 revenues by a majority vote of the electors voting in the
140 referendum. Referendum approval of the proposed use of the tax
141 revenues may be in an election held before or after the
142 effective date of this act. The referendum ballot must include a
143 brief description of the proposed use of the tax revenues and
144 the following question:
145 FOR the Proposed Use
146 AGAINST the Proposed Use
147 3. 2. Promote and advertise tourism in this the state of
148 Florida and nationally and internationally; however, if tax
149 revenues are expended for an activity, service, venue, or event,
150 the activity, service, venue, or event must shall have as one of
151 its main purposes the attraction of tourists as evidenced by the
152 promotion of the activity, service, venue, or event to tourists.
154 A county that imposes the tax authorized in this paragraph may
155 not expend any ad valorem tax revenues for the acquisition,
156 expansion, construction, reconstruction, or renovation of a
157 facility for which tax revenues are used pursuant to
158 subparagraph 1. The provision of paragraph (b) which prohibits
159 any county authorized to levy a convention development tax
160 pursuant to s. 212.0305 from levying more than the 2 percent 2
161 percent tax authorized by this section does shall not apply to
162 the additional tax authorized by this paragraph in counties that
163 which levy convention development taxes pursuant to s.
164 212.0305(4)(a) or (b). Subsection (4) does not apply to the
165 adoption of the additional tax authorized in this paragraph. The
166 effective date of the levy and imposition of the tax authorized
167 under this paragraph is the first day of the second month
168 following approval of the ordinance by the board of county
169 commissioners or the first day of any subsequent month specified
170 in the ordinance. A certified copy of such ordinance must shall
171 be furnished by the county to the Department of Revenue within
172 10 days after approval of the ordinance.
173 (5) AUTHORIZED USES OF REVENUE.—
174 (a) All tax revenues received pursuant to this section by a
175 county imposing the tourist development tax must shall be used
176 by that county for the following purposes only:
177 1. To acquire, construct, extend, enlarge, remodel, repair,
178 improve, maintain, operate, or promote one or more publicly
179 owned and operated convention centers, sports stadiums, sports
180 arenas, coliseums, auditoriums, aquariums, or museums that are
181 publicly owned and operated or owned and operated by not-for
182 profit organizations and open to the public, within the
183 boundaries of the county or subcounty special taxing district in
184 which the tax is levied. Tax revenues received pursuant to this
185 section may also be used for promotion of zoological parks that
186 are publicly owned and operated or owned and operated by not
187 for-profit organizations and open to the public. However, these
188 purposes may be implemented through service contracts and leases
189 with lessees with sufficient expertise or financial capability
190 to operate such facilities;
191 2. To promote and advertise tourism in this the state of
192 Florida and nationally and internationally; however, if tax
193 revenues are expended for an activity, service, venue, or event,
194 the activity, service, venue, or event must shall have as one of
195 its main purposes the attraction of tourists as evidenced by the
196 promotion of the activity, service, venue, or event to tourists;
197 3. To fund convention bureaus, tourist bureaus, tourist
198 information centers, and news bureaus as county agencies or by
199 contract with the chambers of commerce or similar associations
200 in the county, which may include any indirect administrative
201 costs for services performed by the county on behalf of the
202 promotion agency; or
203 4. To finance beach park facilities or beach improvement,
204 maintenance, renourishment, restoration, and erosion control,
205 including shoreline protection, enhancement, cleanup, or
206 restoration of inland lakes and rivers to which there is public
207 access as those uses relate to the physical preservation of the
208 beach, shoreline, or inland lake or river. However, any funds
209 identified by a county as the local matching source for beach
210 renourishment, restoration, or erosion control projects included
211 in the long-range budget plan of the state’s Beach Management
212 Plan, pursuant to s. 161.091, or funds contractually obligated
213 by a county in the financial plan for a federally authorized
214 shore protection project may not be used or loaned for any other
215 purpose. In counties of less than 100,000 population, no more
216 than 10 percent of the revenues from the tourist development tax
217 may be used for beach park facilities; or .
218 5. For other uses specifically allowed under subsection
220 Section 2. Paragraph (d) of subsection (6) of section
221 212.20, Florida Statutes, is amended to read:
222 212.20 Funds collected, disposition; additional powers of
223 department; operational expense; refund of taxes adjudicated
224 unconstitutionally collected.—
225 (6) Distribution of all proceeds under this chapter and s.
226 202.18(1)(b) and (2)(b) shall be as follows:
227 (d) The proceeds of all other taxes and fees imposed
228 pursuant to this chapter or remitted pursuant to s. 202.18(1)(b)
229 and (2)(b) must shall be distributed as follows:
230 1. In any fiscal year, the greater of $500 million, minus
231 an amount equal to 4.6 percent of the proceeds of the taxes
232 collected pursuant to chapter 201, or 5.2 percent of all other
233 taxes and fees imposed pursuant to this chapter or remitted
234 pursuant to s. 202.18(1)(b) and (2)(b) must shall be deposited
235 in monthly installments into the General Revenue Fund.
236 2. After the distribution under subparagraph 1., 8.814
237 percent of the amount remitted by a sales tax dealer located
238 within a participating county pursuant to s. 218.61 must shall
239 be transferred into the Local Government Half-cent Sales Tax
240 Clearing Trust Fund. Beginning July 1, 2003, the amount to be
241 transferred must shall be reduced by 0.1 percent, and the
242 department shall distribute this amount to the Public Employees
243 Relations Commission Trust Fund less $5,000 each month, which
244 must shall be added to the amount calculated in subparagraph 3.
245 and distributed accordingly.
246 3. After the distribution under subparagraphs 1. and 2.,
247 0.095 percent must shall be transferred to the Local Government
248 Half-cent Sales Tax Clearing Trust Fund and distributed pursuant
249 to s. 218.65.
250 4. After the distributions under subparagraphs 1., 2., and
251 3., 2.0440 percent of the available proceeds must shall be
252 transferred monthly to the Revenue Sharing Trust Fund for
253 Counties pursuant to s. 218.215.
254 5. After the distributions under subparagraphs 1., 2., and
255 3., 1.3409 percent of the available proceeds must shall be
256 transferred monthly to the Revenue Sharing Trust Fund for
257 Municipalities pursuant to s. 218.215. If the total revenue to
258 be distributed pursuant to this subparagraph is at least as
259 great as the amount due from the Revenue Sharing Trust Fund for
260 Municipalities and the former Municipal Financial Assistance
261 Trust Fund in state fiscal year 1999-2000, a no municipality may
262 not shall receive less than the amount due from the Revenue
263 Sharing Trust Fund for Municipalities and the former Municipal
264 Financial Assistance Trust Fund in state fiscal year 1999-2000.
265 If the total proceeds to be distributed are less than the amount
266 received in combination from the Revenue Sharing Trust Fund for
267 Municipalities and the former Municipal Financial Assistance
268 Trust Fund in state fiscal year 1999-2000, each municipality
269 shall receive an amount proportionate to the amount it was due
270 in state fiscal year 1999-2000.
271 6. Of the remaining proceeds:
272 a. In each fiscal year, the sum of $29,915,500 must shall
273 be divided into as many equal parts as there are counties in the
274 state, and one part must shall be distributed to each county.
275 The distribution among the several counties must begin each
276 fiscal year on or before January 5th and continue monthly for a
277 total of 4 months. If a local or special law required that any
278 moneys accruing to a county in fiscal year 1999-2000 under the
279 then-existing provisions of s. 550.135 be paid directly to the
280 district school board, special district, or a municipal
281 government, such payment must continue until the local or
282 special law is amended or repealed. The state covenants with
283 holders of bonds or other instruments of indebtedness issued by
284 local governments, special districts, or district school boards
285 before July 1, 2000, that it is not the intent of this
286 subparagraph to adversely affect the rights of those holders or
287 relieve local governments, special districts, or district school
288 boards of the duty to meet their obligations as a result of
289 previous pledges or assignments or trusts entered into which
290 obligated funds received from the distribution to county
291 governments under then-existing s. 550.135. This distribution
292 specifically is in lieu of funds distributed under s. 550.135
293 before July 1, 2000.
294 b. The department shall, pursuant to s. 288.1162,
295 distribute $166,667 monthly pursuant to s. 288.1162 to each
296 applicant certified as a facility for a new or retained
297 professional sports franchise pursuant to s. 288.1162. Up to
298 $41,667 must shall be distributed monthly by the department to
299 each certified applicant as defined in s. 288.11621 for a
300 facility for a spring training franchise. However, not more than
301 $416,670 may be distributed monthly in the aggregate to all
302 certified applicants for facilities for spring training
303 franchises. Distributions begin 60 days after such certification
304 and continue for not more than 30 years, except as otherwise
305 provided in s. 288.11621. A certified applicant identified in
306 this sub-subparagraph may not receive more in distributions than
307 expended by the applicant for the public purposes provided for
308 in s. 288.1162 288.1162 (5) or s. 288.11621(3).
309 c. Beginning 30 days after notice by the Department of
310 Economic Opportunity to the Department of Revenue that an
311 applicant has been certified as the professional golf hall of
312 fame pursuant to s. 288.1168 and is open to the public, $166,667
313 must shall be distributed monthly, for up to 300 months, to the
315 d. Beginning 30 days after notice by the Department of
316 Economic Opportunity to the Department of Revenue that the
317 applicant has been certified as the International Game Fish
318 Association World Center facility pursuant to s. 288.1169, and
319 the facility is open to the public, $83,333 must shall be
320 distributed monthly, for up to 168 months, to the applicant.
321 This distribution is subject to reduction pursuant to s.
322 288.1169. A lump sum payment of $999,996 must shall be made,
323 after certification and before July 1, 2000.
324 e. Beginning 45 days after notice by the Department of
325 Economic Opportunity to the Department of Revenue that an
326 applicant has been approved by the Legislature and certified by
327 the Department of Economic Opportunity under s. 288.11625, the
328 department shall distribute each month an amount equal to one
329 twelfth the annual distribution amount certified by the
330 Department of Economic Opportunity for the applicant. The
331 department may not distribute more than $13 million annually to
332 all applicants approved by the Legislature and certified by the
333 Department of Economic Opportunity pursuant to s. 288.11625.
334 7. All other proceeds must remain in the General Revenue
336 Section 3. Subsection (2) of section 220.153, Florida
337 Statutes, is amended to read:
338 220.153 Apportionment by sales factor.—
339 (2) APPORTIONMENT OF TAXES; ELIGIBILITY.—A taxpayer, not
340 including a financial organization as defined in s. 220.15(6) or
341 a bank, savings association, international banking facility, or
342 banking organization as defined in s. 220.62, doing business
343 within and without this state, who applies and demonstrates to
344 the Department of Economic Opportunity that, within a 2-year
345 period beginning on or after July 1, 2011, it has made qualified
346 capital expenditures equal to or exceeding $250 million may
347 apportion its adjusted federal income solely by the sales factor
348 set forth in s. 220.15(5), commencing in the taxable year that
349 the Department of Economic Opportunity approves the application,
350 but not before a taxable year that begins on or after January 1,
351 2013. Once approved, a taxpayer may elect to apportion its
352 adjusted federal income for any taxable year using the method
353 provided under this section or the method provided under s.
355 Section 4. Subsections (3) and (5) of section 220.62,
356 Florida Statutes, are repealed.
357 Section 5. Subsection (5) of section 220.63, Florida
358 Statutes, is repealed.
359 Section 6. Sections 3, 4, and 5 of this act are effective
360 with respect to taxable years beginning on or after January 1,
362 Section 7. Section 288.11625, Florida Statutes, is created
363 to read:
364 288.11625 Sports development.—
365 (1) ADMINISTRATION.—The department shall serve as the state
366 agency responsible for screening applicants for state funding
367 under s. 212.20(6)(d)6.e.
368 (2) DEFINITIONS.—As used in this section, the term:
369 (a) “Agreement” means a signed agreement between a unit of
370 local government and a beneficiary.
371 (b) “Applicant” means a unit of local government, as
372 defined in s. 218.369, which is responsible for the
373 construction, management, or operation of a facility; or an
374 entity that is responsible for the construction, management, or
375 operation of a facility if a unit of local government holds
376 title to the underlying property on which the facility is
378 (c) “Beneficiary” means a professional sports franchise of
379 the National Football League, the National Hockey League, the
380 National Basketball Association, the National League or American
381 League of Major League Baseball, Major League Soccer, or the
382 National Association of Stock Car Auto Racing, or a nationally
383 recognized professional sports association that occupies or uses
384 a facility as the facility’s primary tenant. A beneficiary may
385 also be an applicant under this section.
386 (d) “Facility” means a facility primarily used to host
387 games or events held by a beneficiary and does not include any
388 portion used to provide transient lodging. For a professional
389 sports franchise that uses or occupies a local government-owned
390 facility during the months from February through April, the
391 facility also includes training facilities that are associated
392 with the primary facility, but does not include any portion used
393 to provide transient lodging.
394 (e) “Project” means a proposed construction,
395 reconstruction, renovation, or improvement of a facility.
396 (f) “Signature event” means a professional sports event
397 with significant export factor potential. For purposes of this
398 paragraph, the term “export factor” means the attraction of
399 economic activity or growth into the state which otherwise would
400 not have occurred. Examples of signature events may include, but
401 are not limited to:
402 1. National Football League Super Bowls.
403 2. Professional sports All-Star games.
404 3. International sporting events and tournaments.
405 4. Professional automobile race championships or Formula 1
406 Grand Prix.
407 5. The establishment of a new professional sports franchise
408 in this state.
409 (g) “State sales taxes generated by sales at the facility”
410 means state sales taxes imposed under chapter 212 generated by
411 admissions to the facility or by sales made by vendors at the
412 facility who are accessible to persons attending events
413 occurring at the facility.
414 (3) PURPOSE.—The purpose of this section is to provide
415 applicants state funding under s. 212.20(6)(d)6.e. for the
416 public purpose of constructing, reconstructing, renovating, or
417 improving a facility.
418 (4) APPLICATION AND APPROVAL PROCESS.—
419 (a) The department shall establish the procedures and
420 application forms deemed necessary pursuant to the requirements
421 of this section. The department may notify an applicant of any
422 additional required or incomplete information necessary to
423 evaluate an application.
424 (b) The annual application period is from June 1 through
425 November 1.
426 (c) Within 60 days after receipt of a completed
427 application, the department shall complete its evaluation of the
428 application as provided under subsection (5) and notify the
429 applicant in writing of the department’s decision to recommend
430 approval of the applicant by the Legislature or to deny the
432 (d) Annually by February 1, the department shall rank the
433 applicants and shall provide to the Legislature the list of the
434 recommended applicants in ranked order of projects most likely
435 to positively impact the state based on required criteria
436 established in this section. The list must include the
437 department’s evaluation of the applicant.
438 (e) A recommended applicant’s request for funding must be
439 approved by the Legislature by general law.
440 1. An application by a unit of local government which is
441 approved by the Legislature and subsequently certified by the
442 department remains certified for the duration of the
443 beneficiary’s agreement with the applicant or for 30 years,
444 whichever is less, provided the certified applicant has an
445 agreement with a beneficiary at the time of initial
446 certification by the department.
447 2. An application by a beneficiary which is approved by the
448 Legislature and subsequently certified by the department remains
449 certified for the duration of the beneficiary’s agreement with
450 the unit of local government that owns the underlying property
451 or for 30 years, whichever is less, provided the certified
452 applicant has an agreement with the unit of local government at
453 the time of initial certification by the department.
454 3. An applicant that is previously certified pursuant to
455 this section does not need legislative approval each year to
456 receive state funding.
457 (f) An applicant that is recommended by the department but
458 is not approved by the Legislature may reapply and update any
459 information in the original application as required by the
461 (g) The department may recommend no more than one
462 distribution under this section for any applicant, facility, or
463 beneficiary at a time.
464 (5) EVALUATION PROCESS.—
465 (a) Before recommending an applicant to receive a state
466 distribution under s. 212.20(6)(d)6.e., the department must
467 verify that:
468 1. The applicant or beneficiary is responsible for the
469 construction, reconstruction, renovation, or improvement of a
471 2. If the applicant is also the beneficiary, a unit of
472 local government holds title to the property on which the
473 facility and project are located.
474 3. The project for which the applicant is seeking state
475 funding has not commenced construction.
476 4. If the applicant is a unit of local government in whose
477 jurisdiction the facility will be located, the unit of local
478 government has an exclusive intent agreement to negotiate in
479 this state with the beneficiary.
480 5.a. The unit of local government in whose jurisdiction the
481 facility will be located supports the application for state
482 funds. Such support must be verified by the adoption of a
483 resolution after a public hearing that the project serves a
484 public purpose.
485 b. If the unit of local government is required to pass a
486 resolution by a majority plus one vote by the local government’s
487 governing body and to hold a referendum for approval pursuant to
488 s. 125.0104(3)(n)2., such resolution and referendum must
489 affirmatively pass for the applicant to receive state funding
490 under this section.
491 6. The applicant or beneficiary has not previously
492 defaulted or failed to meet any statutory requirements of a
493 previous state-administered sports-related program under s.
494 288.1162, s. 288.11621, or s. 288.1168.
495 7. The applicant or beneficiary has sufficiently
496 demonstrated a commitment to employ residents of this state,
497 contract with Florida-based firms, and purchase locally
498 available building materials to the greatest extent possible.
499 8. If the applicant is a unit of local government, the
500 applicant has a certified copy of a signed agreement with a
501 beneficiary for the use of the facility. If the applicant is a
502 beneficiary, the beneficiary must enter into an agreement with
503 the department. The applicant’s or beneficiary’s agreement must
504 also require the following:
505 a. The beneficiary must reimburse the state for state funds
506 that have been distributed and will be distributed if the
507 beneficiary relocates before the agreement expires.
508 b. The beneficiary must pay for signage or advertising
509 within the facility. The signage or advertising must be placed
510 in a prominent location as close to the field of play or
511 competition as is practical, displayed consistent with signage
512 or advertising in the same location and like value, and must
513 feature Florida advertising approved by the Florida Tourism
514 Industry Marketing Corporation.
515 9. The project will commence within 12 months after
516 receiving state funds.
517 (b) The department shall competitively evaluate and rank
518 applicants that submit applications for state funding which are
519 received during the application period using the following
520 criteria to evaluate the applicant’s ability to positively
521 impact the state:
522 1. The proposed use of state funds.
523 2. The length of time that a beneficiary has agreed to use
524 the facility.
525 3. The percentage of total project funds provided by the
526 applicant and the percentage of total project funds provided by
527 the beneficiary.
528 4. The number and type of signature events the facility is
529 likely to attract during the duration of the agreement with the
531 5. The anticipated increase in average annual ticket sales
532 and attendance at the facility due to the project.
533 6. The potential to attract out-of-state visitors to the
535 7. The length of time a beneficiary has been in the state
536 or partnered with the unit of local government.
537 8. The multiuse capabilities of the facility.
538 9. The facility’s projected employment of residents of this
539 state, contracts with Florida-based firms, and purchases of
540 locally available building materials.
541 10. The amount of private and local financial or in-kind
542 contributions to the project.
543 11. The amount of positive advertising or media coverage
544 the facility generates.
545 (6) DISTRIBUTION.—
546 (a) The department shall determine the annual distribution
547 amount an applicant may receive based on the total cost of the
549 1. If the total project cost is $200 million or greater,
550 the applicant is eligible to receive annual distributions equal
551 to the new incremental state sales taxes generated by sales at
552 the facility during 12 months as provided under paragraph (b)2.,
553 up to $3 million.
554 2. If the total project cost is at least $100 million but
555 less than $200 million, the applicant is eligible to receive
556 annual distributions equal to the new incremental state sales
557 taxes generated by sales at the facility during 12 months as
558 provided under paragraph (b)2., up to $2 million.
559 3. If the total project cost is less than $100 million, the
560 applicant is eligible to receive annual distributions equal to
561 the new incremental state sales taxes generated by sales at the
562 facility during 12 months as provided under paragraph (b)2., up
563 to $666,660.
564 (b) At the time of initial evaluation and review by the
565 department pursuant to subsection (5), the applicant must
566 provide an analysis by an independent certified public
567 accountant which demonstrates:
568 1. The amount of state sales taxes generated by sales at
569 the facility during the 12-month period immediately prior to the
570 beginning of the application period. This amount is the
572 2. The expected amount of new incremental state sales taxes
573 generated by sales at the facility above the baseline which will
574 be generated as a result of the project.
575 (c) The independent analysis provided in paragraph (b) must
576 be verified by the department.
577 (d) The Department of Revenue shall begin distributions
578 within 45 days after notification of initial certification from
579 the department.
580 (e) The department must consult with the Department of
581 Revenue and the Office of Economic and Demographic Research to
582 develop a standard calculation for estimating new incremental
583 state sales taxes generated by sales at the facility and
584 adjustments to distributions.
585 (f) In any 12-month period when total distributions for all
586 certified applicants equal $13 million, the department may not
587 certify new distributions for any additional applicants.
588 (7) CONTRACT.—An applicant approved by the Legislature and
589 certified by the department must enter into a contract with the
590 department which:
591 (a) Specifies the terms of the state’s investment.
592 (b) States the criteria that the certified applicant must
593 meet in order to remain certified.
594 (c) Requires the applicant to submit the independent
595 analysis required under subsection (6) and an annual independent
597 1. The applicant must agree to submit to the department,
598 beginning 12 months after completion of a project or 12 months
599 after the first four annual distributions, whichever is earlier,
600 an annual analysis by an independent certified public accountant
601 demonstrating the actual amount of new incremental state sales
602 taxes generated by sales at the facility during the previous 12
603 month period. The applicant shall certify to the department a
604 comparison of the actual amount of state sales taxes generated
605 by sales at the facility during the previous 12-month period to
606 the baseline under subparagraph (6)(b)1.
607 2. The applicant must submit the certification within 60
608 days after the end of the previous 12-month period. The
609 department shall verify the analysis.
610 (d) Specifies information that the certified applicant must
611 report to the department.
612 (e) Requires the applicant to reimburse the state for the
613 amount each year that the actual new incremental state sales
614 taxes generated by sales at the facility during the most recent
615 12-month period was less than the annual distribution under
616 paragraph (6)(a). This requirement applies 12 months after
617 completion of a project or 12 months after the first four annual
618 distributions, whichever is earlier.
619 1. If the applicant is unable or unwilling to reimburse the
620 state in any year for the amount equal to the difference between
621 the actual new incremental state sales taxes generated by sales
622 at the facility and the annual distribution under paragraph
623 (6)(a), the department may place a lien on the applicant’s
625 2. If the applicant is a municipality or county, it may
626 reimburse the state from its half-cent sales tax allocation, as
627 provided in s. 218.64(3).
628 3. Reimbursements must be sent to the Department of Revenue
629 for deposit into the General Revenue Fund.
630 (f) Includes any provisions deemed prudent by the
632 (8) USE OF FUNDS.—An applicant certified under this section
633 may use state funds only for the following purposes:
634 (a) Constructing, reconstructing, renovating, or improving
635 a facility, or reimbursing such costs.
636 (b) Paying or pledging for the payment of debt service on,
637 or to fund debt service reserve funds, arbitrage rebate
638 obligations, or other amounts payable with respect thereto,
639 bonds issued for the construction or renovation of such
640 facility; or for the reimbursement of such costs or the
641 refinancing of bonds issued for such purposes.
642 (9) REPORTS.—
643 (a) On or before November 1 of each year, an applicant
644 certified under this section and approved to receive state funds
645 must submit to the department any information required by the
646 department. The department shall summarize this information for
647 inclusion in the report to the Legislature due February 1 under
648 subsection (4)(d).
649 (b) Every 5 years following the first month that an
650 applicant receives a monthly distribution, the department must
651 verify that the applicant is meeting the program requirements.
652 If the applicant is not meeting program requirements, the
653 department must notify the Governor and Legislature of the
654 requirements not being met and must recommend future action as
655 part of the report to the Legislature due February 1 pursuant to
656 paragraph (4)(d). The department shall consider exceptions that
657 may have prevented the applicant from meeting the program
658 requirements. Such exceptions include:
659 1. Force majeure events.
660 2. Significant economic downturn.
661 3. Other extenuating circumstances.
662 (10) AUDITS.—The Auditor General may conduct audits
663 pursuant to s. 11.45 to verify the independent analysis required
664 under paragraphs (6)(b) and (7)(c) and to verify that the
665 distributions are expended as required. The Auditor General
666 shall report the findings to the department. If the Auditor
667 General determines that the distribution payments are not
668 expended as required, the Auditor General must notify the
669 Department of Revenue, which may pursue recovery of
670 distributions under the laws and rules that govern the
671 assessment of taxes.
672 (11) APPLICATION RELATED TO SIGNATURE EVENT.—If an
673 applicant intends to apply, before the 2014 Regular Session, for
674 a signature event for which state funds for a project are
675 requested, the applicant may apply for the program after May 1,
676 2013. The department must review the application and recommend
677 approval to the Legislature. The Legislative Budget Commission
678 may approve such applications. A distribution to an applicant is
679 conditioned upon award of the signature event for which the
680 applicant applied and which was the basis of the application
681 under this subsection. State funds may not be distributed until
682 the department has notified the Department of Revenue that the
683 applicant was approved by the Legislative Budget Commission and
684 certified by the department. An applicant certified under this
685 subsection is subject to the provisions and requirements of this
686 section. An applicant that fails to meet the conditions of this
687 subsection may reapply during future application periods.
688 (12) REPAYMENT OF DISTRIBUTIONS.—An applicant that is
689 certified under this section may be subject to repayment of
690 distributions upon the occurrence of any of the following:
691 (a) An applicant’s beneficiary has broken the terms of its
692 agreement with the applicant and relocated from the facility.
693 The beneficiary must reimburse the state for state funds that
694 have been distributed and will be distributed if the beneficiary
695 relocates before the agreement expires.
696 (b) The department has determined that an applicant has
697 submitted any information or made a representation that is
698 determined to be false, misleading, deceptive, or otherwise
699 untrue. The applicant must reimburse the state for state funds
700 that have been distributed and will be distributed if such
701 determination is made.
702 (13) HALTING OF PAYMENTS.—The applicant may request to halt
703 future distributions by providing the department with written
704 notice at least 20 days prior to the next monthly distribution
705 payment. The department must immediately notify the Department
706 of Revenue to halt future payments.
707 (14) RULEMAKING.—The department may adopt rules to
708 implement this section.
709 Section 8. Contingent upon enactment of the Economic
710 Development Program Evaluation as set forth in SB 406 or similar
711 legislation, section 288.116255, Florida Statutes, is created to
713 288.116255 Sports Development Program evaluation.—Beginning
714 in 2015, the Sports Development Program must be evaluated as
715 part of the Economic Development Program Evaluation, and every 3
716 years thereafter.
717 Section 9. Subsections (2) and (3) of section 218.64,
718 Florida Statutes, are amended to read:
719 218.64 Local government half-cent sales tax; uses;
721 (2) Municipalities shall expend their portions of the local
722 government half-cent sales tax only for municipality-wide
723 programs, for reimbursing the state as required by a contract
724 pursuant to s. 288.11625(7), or for municipality-wide property
725 tax or municipal utility tax relief. All utility tax rate
726 reductions afforded by participation in the local government
727 half-cent sales tax shall be applied uniformly across all types
728 of taxed utility services.
729 (3) Subject to ordinances enacted by the majority of the
730 members of the county governing authority and by the majority of
731 the members of the governing authorities of municipalities
732 representing at least 50 percent of the municipal population of
733 such county, counties may use up to $2 $3 million annually of
734 the local government half-cent sales tax allocated to that
735 county for funding for any of the following applicants purposes:
736 (a) Funding a certified applicant as a facility for a new
737 or retained professional sports franchise under s. 288.1162 or a
738 certified applicant as defined in s. 288.11621 for a facility
739 for a spring training franchise. It is the Legislature’s intent
740 that the provisions of s. 288.1162, including, but not limited
741 to, the evaluation process by the Department of Economic
742 Opportunity except for the limitation on the number of certified
743 applicants or facilities as provided in that section and the
744 restrictions set forth in s. 288.1162(8), shall apply to an
745 applicant’s facility to be funded by local government as
746 provided in this subsection.
747 (b) Funding a certified applicant as a “motorsport
748 entertainment complex,” as provided for in s. 288.1171. Funding
749 for each franchise or motorsport complex shall begin 60 days
750 after certification and shall continue for not more than 30
752 (c) Reimbursing the state as required by a contract
753 pursuant to s. 288.11625(7).
754 Section 10. (1) The executive director of the Department of
755 Economic Opportunity may, and all conditions are deemed met,
756 adopt emergency rules pursuant to ss. 120.536(1) and 120.54(4),
757 Florida Statutes, for the purpose of implementing this act.
758 (2) Notwithstanding any provision of law, such emergency
759 rules remain in effect for 6 months after the date adopted and
760 may be renewed during the pendency of procedures to adopt
761 permanent rules addressing the subject of the emergency rules.
762 Section 11. This act shall take effect upon becoming a law.