Florida Senate - 2013 COMMITTEE AMENDMENT Bill No. SB 406 Barcode 237586 LEGISLATIVE ACTION Senate . House Comm: RCS . 03/15/2013 . . . . ————————————————————————————————————————————————————————————————— ————————————————————————————————————————————————————————————————— Appropriations Subcommittee on Transportation, Tourism, and Economic Development (Stargel, Latvala, and Simpson) recommended the following: 1 Senate Amendment (with title amendment) 2 3 Between lines 264 and 265 4 insert: 5 Section 3. Paragraph (d) of subsection (6) of section 6 212.20, Florida Statutes, is amended to read: 7 212.20 Funds collected, disposition; additional powers of 8 department; operational expense; refund of taxes adjudicated 9 unconstitutionally collected.— 10 (6) Distribution of all proceeds under this chapter and s. 11 202.18(1)(b) and (2)(b) shall be as follows: 12 (d) The proceeds of all other taxes and fees imposed 13 pursuant to this chapter or remitted pursuant to s. 202.18(1)(b) 14 and (2)(b) shall be distributed as follows: 15 1. In any fiscal year, the greater of $500 million, minus 16 an amount equal to 4.6 percent of the proceeds of the taxes 17 collected pursuant to chapter 201, or 5.2 percent of all other 18 taxes and fees imposed pursuant to this chapter or remitted 19 pursuant to s. 202.18(1)(b) and (2)(b) shall be deposited in 20 monthly installments into the General Revenue Fund. 21 2. After the distribution under subparagraph 1., 8.814 22 percent of the amount remitted by a sales tax dealer located 23 within a participating county pursuant to s. 218.61 shall be 24 transferred into the Local Government Half-cent Sales Tax 25 Clearing Trust Fund. Beginning July 1, 2003, the amount to be 26 transferred shall be reduced by 0.1 percent, and the department 27 shall distribute this amount to the Public Employees Relations 28 Commission Trust Fund less $5,000 each month, which shall be 29 added to the amount calculated in subparagraph 3. and 30 distributed accordingly. 31 3. After the distribution under subparagraphs 1. and 2., 32 0.095 percent shall be transferred to the Local Government Half 33 cent Sales Tax Clearing Trust Fund and distributed pursuant to 34 s. 218.65. 35 4. After the distributions under subparagraphs 1., 2., and 36 3., 2.0440 percent of the available proceeds shall be 37 transferred monthly to the Revenue Sharing Trust Fund for 38 Counties pursuant to s. 218.215. 39 5. After the distributions under subparagraphs 1., 2., and 40 3., 1.3409 percent of the available proceeds shall be 41 transferred monthly to the Revenue Sharing Trust Fund for 42 Municipalities pursuant to s. 218.215. If the total revenue to 43 be distributed pursuant to this subparagraph is at least as 44 great as the amount due from the Revenue Sharing Trust Fund for 45 Municipalities and the former Municipal Financial Assistance 46 Trust Fund in state fiscal year 1999-2000, no municipality shall 47 receive less than the amount due from the Revenue Sharing Trust 48 Fund for Municipalities and the former Municipal Financial 49 Assistance Trust Fund in state fiscal year 1999-2000. If the 50 total proceeds to be distributed are less than the amount 51 received in combination from the Revenue Sharing Trust Fund for 52 Municipalities and the former Municipal Financial Assistance 53 Trust Fund in state fiscal year 1999-2000, each municipality 54 shall receive an amount proportionate to the amount it was due 55 in state fiscal year 1999-2000. 56 6. Of the remaining proceeds: 57 a. In each fiscal year, the sum of $29,915,500 shall be 58 divided into as many equal parts as there are counties in the 59 state, and one part shall be distributed to each county. The 60 distribution among the several counties must begin each fiscal 61 year on or before January 5th and continue monthly for a total 62 of 4 months. If a local or special law required that any moneys 63 accruing to a county in fiscal year 1999-2000 under the then 64 existing provisions of s. 550.135 be paid directly to the 65 district school board, special district, or a municipal 66 government, such payment must continue until the local or 67 special law is amended or repealed. The state covenants with 68 holders of bonds or other instruments of indebtedness issued by 69 local governments, special districts, or district school boards 70 before July 1, 2000, that it is not the intent of this 71 subparagraph to adversely affect the rights of those holders or 72 relieve local governments, special districts, or district school 73 boards of the duty to meet their obligations as a result of 74 previous pledges or assignments or trusts entered into which 75 obligated funds received from the distribution to county 76 governments under then-existing s. 550.135. This distribution 77 specifically is in lieu of funds distributed under s. 550.135 78 before July 1, 2000. 79 b. The department shall distribute $166,667 monthly 80 pursuant to s. 288.1162 to each applicant certified as a 81 facility for a new or retained professional sports franchise 82 pursuant to s. 288.1162. Up to $41,667 shall be distributed 83 monthly by the department to each certified applicant as defined 84 in s. 288.11621 for a facility for a spring training franchise. 85 However, not more than $416,670 may be distributed monthly in 86 the aggregate to all certified applicants for facilities for 87 spring training franchises. Distributions begin 60 days after 88 such certification and continue for not more than 30 years, 89 except as otherwise provided in s. 288.11621. A certified 90 applicant identified in this sub-subparagraph may not receive 91 more in distributions than expended by the applicant for the 92 public purposes provided for in s. 288.1162(5) or s. 93 288.11621(3). 94 c. Beginning 30 days after notice by the Department of 95 Economic Opportunity to the Department of Revenue that an 96 applicant has been certified as the professional golf hall of 97 fame pursuant to s. 288.1168 and is open to the public, $166,667 98 shall be distributed monthly, for up to 300 months, to the 99 applicant. 100 d. Beginning 30 days after notice by the Department of 101 Economic Opportunity to the Department of Revenue that the 102 applicant has been certified as the International Game Fish 103 Association World Center facility pursuant to s. 288.1169, and 104 the facility is open to the public, $83,333 shall be distributed 105 monthly, for up to 168 months, to the applicant. This 106 distribution is subject to reduction pursuant to s. 288.1169. A 107 lump sum payment of $999,996 shall be made, after certification 108 and before July 1, 2000. 109 e. The department shall distribute up to $55,555 monthly to 110 each certified applicant as defined in s. 288.11631 for a 111 facility used by a single spring training franchise, or up to 112 $111,110 monthly to each certified applicant for a facility used 113 by more than one spring training franchise. Distributions begin 114 60 days after such certification and continue for fewer than 30 115 years, except as otherwise provided in s. 288.11631. A certified 116 applicant identified in this sub-subparagraph may not receive 117 more in distributions than expended by the applicant for the 118 public purposes provided in s. 288.11631(3). 119 7. All other proceeds must remain in the General Revenue 120 Fund. 121 Section 4. Section 288.11631, Florida Statutes, is created 122 to read: 123 288.11631 Retention of Major League Baseball spring 124 training baseball franchises.— 125 (1) DEFINITIONS.—As used in this section, the term: 126 (a) “Agreement” means a certified, signed lease between an 127 applicant that applies for certification on or after July 1, 128 2013, and a spring training franchise for the use of a facility. 129 (b) “Applicant” means a unit of local government as defined 130 in s. 218.369, including a local government located in the same 131 county, which has partnered with a certified applicant before 132 the effective date of this section or with an applicant for a 133 new certification, for purposes of sharing in the 134 responsibilities of a facility. 135 (c) “Certified applicant” means a facility for a spring 136 training franchise or a unit of local government that is 137 certified under this section. 138 (d) “Facility” means a spring training stadium, playing 139 fields, and appurtenances intended to support spring training 140 activities. 141 (e) “Local funds” and “local matching funds” mean funds 142 provided by a county, municipality, or other local government. 143 (2) CERTIFICATION PROCESS.— 144 (a) Before certifying an applicant to receive state funding 145 for a facility for a spring training franchise, the department 146 must verify that: 147 1. The applicant is responsible for the construction or 148 renovation of the facility for a spring training franchise or 149 holds title to the property on which the facility for a spring 150 training franchise is located. 151 2. The applicant has a certified copy of a signed agreement 152 with a spring training franchise. The signed agreement with a 153 spring training franchise for the use of a facility must, at a 154 minimum, be equal to the length of the term of the bonds issued 155 for the public purpose of constructing or renovating a facility 156 for a spring training franchise. If no such bonds are issued for 157 the public purpose of constructing or renovating a facility for 158 a spring training franchise, the signed agreement with a spring 159 training franchise for the use of a facility must be for at 160 least 20 years. Any such agreement with a spring training 161 franchise for the use of a facility cannot be signed more than 3 162 years before the expiration of any existing agreement with a 163 spring training franchise for the use of a facility. The 164 agreement must also require the franchise to reimburse the state 165 for state funds expended by an applicant under this section if 166 the franchise relocates before the agreement expires. The 167 agreement may be contingent on an award of funds under this 168 section and other conditions precedent. 169 3. The applicant has made a financial commitment to provide 170 50 percent or more of the funds required by an agreement for the 171 construction or renovation of the facility for a spring training 172 franchise. The commitment may be contingent upon an award of 173 funds under this section and other conditions precedent. 174 4. The applicant demonstrates that the facility for a 175 spring training franchise will attract a paid attendance of at 176 least 50,000 persons annually to the spring training games. 177 5. The facility for a spring training franchise is located 178 in a county that levies a tourist development tax under s. 179 125.0104. 180 (b) The department shall evaluate applications for state 181 funding of the construction or renovation of the facility for a 182 spring training franchise. The evaluation criteria must include 183 the following items: 184 1. The anticipated effect on the economy of the local 185 community where the facility is to be constructed or renovated, 186 including projections on paid attendance, local and state tax 187 collections generated by spring training games, and direct and 188 indirect job creation resulting from the spring training 189 activities. 190 2. The amount of the local matching funds committed to a 191 facility relative to the amount of state funding sought. 192 3. The potential for the facility to be used as a multiple 193 purpose, year-round facility. 194 4. The intended use of the funds by the applicant. 195 5. The length of time that a spring training franchise has 196 been under an agreement to conduct spring training activities 197 within an applicant’s geographic location or jurisdiction. 198 6. The length of time that an applicant’s facility has been 199 used by one or more spring training franchises, including 200 continuous use as facilities for spring training. 201 7. The term remaining on a lease between an applicant and a 202 spring training franchise for a facility. 203 8. The length of time that a spring training franchise 204 agrees to use an applicant’s facility if an application is 205 granted under this section. 206 9. The location of the facility in a brownfield, an 207 enterprise zone, a community redevelopment area, or other area 208 of targeted development or revitalization included in an urban 209 infill redevelopment plan. 210 (c) Each applicant certified on or after July 1, 2013, 211 shall enter into an agreement with the department which: 212 1. Specifies the amount of the state incentive funding to 213 be distributed. The amount of state incentive funding per 214 certified applicant may not exceed $20 million. However, if a 215 certified applicant has more than one spring training franchise, 216 the maximum amount may not exceed $40 million. 217 2. States the criteria that the certified applicant must 218 meet in order to remain certified. These criteria must include a 219 provision stating that the spring training franchise must 220 reimburse the state for any funds received if the franchise does 221 not comply with the terms of the contract. 222 3. States that the certified applicant is subject to 223 decertification if the certified applicant fails to comply with 224 this section or the agreement. 225 4. States that the department may recover state incentive 226 funds if the certified applicant is decertified. 227 5. Specifies the information that the certified applicant 228 must report to the department. 229 6. Includes any provision deemed prudent by the department. 230 (3) USE OF FUNDS.— 231 (a) A certified applicant may use funds provided under s. 232 212.20(6)(d)6.e. only to: 233 1. Serve the public purpose of constructing or renovating a 234 facility for a spring training franchise. 235 2. Pay or pledge for the payment of debt service on, or to 236 fund debt service reserve funds, arbitrage rebate obligations, 237 or other amounts payable with respect thereto, bonds issued for 238 the construction or renovation of such facility, or for the 239 reimbursement of such costs or the refinancing of bonds issued 240 for such purposes. 241 (b) State funds awarded to a certified applicant for a 242 facility for a spring training franchise may not be used to 243 subsidize facilities that are privately owned by, maintained by, 244 and used exclusively by a spring training franchise. 245 (c) The Department of Revenue may not distribute funds to 246 an applicant certified on or after July 1, 2013, until it 247 receives notice from the department that the certified applicant 248 has encumbered funds under subparagraph (a)2. 249 (d)1. All certified applicants shall place unexpended state 250 funds received pursuant to s. 212.20(6)(d)6.e. in a trust fund 251 or separate account for use only as authorized in this section. 252 2. A certified applicant may request that the Department of 253 Revenue suspend further distributions of state funds made 254 available under s. 212.20(6)(d)6.e. for 12 months after 255 expiration of an existing agreement with a spring training 256 franchise to provide the certified applicant with an opportunity 257 to enter into a new agreement with a spring training franchise, 258 at which time the distributions shall resume. 259 3. The expenditure of state funds distributed to an 260 applicant certified after July 1, 2013, must begin within 48 261 months after the initial receipt of the state funds. In 262 addition, the construction or renovation of a spring training 263 facility must be completed within 24 months after the project’s 264 commencement. 265 (4) ANNUAL REPORTS.— 266 (a) On or before September 1 of each year, a certified 267 applicant shall submit to the department a report that includes, 268 but is not limited to: 269 1. A detailed accounting of all local and state funds 270 expended to date on the project financed under this section. 271 2. A copy of the contract between the certified local 272 governmental entity and the spring training franchise. 273 3. A cost-benefit analysis of the team’s impact on the 274 community. 275 4. Evidence that the certified applicant continues to meet 276 the criteria in effect when the applicant was certified. 277 (b) The department shall compile the information received 278 from each certified applicant and publish the information 279 annually by November 1. 280 (5) DECERTIFICATION.— 281 (a) The department shall decertify a certified applicant 282 upon the request of the certified applicant. 283 (b) The department shall decertify a certified applicant if 284 the certified applicant does not: 285 1. Have a valid agreement with a spring training franchise; 286 or 287 2. Satisfy its commitment to provide local matching funds 288 to the facility. 289 290 However, decertification proceedings against a local government 291 certified after July 1, 2013, shall be delayed until 12 months 292 after the expiration of the local government’s existing 293 agreement with a spring training franchise, and without a new 294 agreement being signed, if the certified local government can 295 demonstrate to the department that it is in active negotiations 296 with a major league spring training franchise, other than the 297 franchise that was the basis for the original certification. 298 (c) A certified applicant has 60 days after it receives a 299 notice of intent to decertify from the department to petition 300 for review of the decertification. Within 45 days after receipt 301 of the request for review, the department must notify a 302 certified applicant of the outcome of the review. 303 (d) The department shall notify the Department of Revenue 304 that a certified applicant has been decertified within 10 days 305 after the order of decertification becomes final. The Department 306 of Revenue shall immediately stop the payment of any funds under 307 this section which were not encumbered by the certified 308 applicant under subparagraph (3)(a)2. 309 (e) The department shall order a decertified applicant to 310 repay all of the unencumbered state funds that the applicant 311 received under this section and any interest that accrued on 312 those funds. The repayment must be made within 60 days after the 313 decertification order becomes final. These funds shall be 314 deposited into the General Revenue Fund. 315 (f) A local government as defined in s. 218.369 may not be 316 decertified by the department if it has paid or pledged for the 317 payment of debt service on, or to fund debt service reserve 318 funds, arbitrage rebate obligations, or other amounts payable 319 with respect thereto, bonds issued for the construction or 320 renovation of the facility for which the local government was 321 certified, or for the reimbursement of such costs or the 322 refinancing of bonds issued for the construction or renovation 323 of the facility for which the local government was certified, or 324 for the reimbursement of such costs or the refinancing of bonds 325 issued for such purpose. This subsection does not preclude or 326 restrict the ability of a certified local government to 327 refinance, refund, or defease such bonds. 328 (6) RULEMAKING.—The department shall adopt rules to 329 implement the certification, decertification, and 330 decertification review processes required by this section. 331 (7) AUDITS.—The Auditor General may conduct audits as provided 332 in s. 11.45 to verify that the distributions under this section 333 are expended as required in this section. If the Auditor General 334 determines that the distributions under this section are not 335 expended as required by this section, the Auditor General shall 336 notify the Department of Revenue, which may pursue recovery of 337 the funds under the laws and rules governing the assessment of 338 taxes. 339 340 ================= T I T L E A M E N D M E N T ================ 341 And the title is amended as follows: 342 Delete line 26 343 and insert: 344 included; amending s. 212.20, F.S.; requiring the 345 Department of Revenue to distribute a specified amount 346 of money to certain applicants if a spring training 347 franchise uses the applicant’s facility; specifying 348 time periods and limitations on distributions; 349 creating s. 288.11631, F.S.; providing definitions; 350 establishing a certification process to retain spring 351 training baseball franchises; authorizing and 352 prohibiting certain uses of the awarded funds; 353 requiring a certified applicant to submit an annual 354 report and requiring the Department of Economic 355 Opportunity to publish such information; providing for 356 decertification of a certified applicant; requiring 357 the department to adopt rules; authorizing the Auditor 358 General to conduct audits; amending s. 220.194, F.S.; 359 requiring the