Senate Bill 0866c1

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    Florida Senate - 1998                            CS for SB 866

    By the Committee on Community Affairs and Senator Meadows





    316-2108-98

  1                      A bill to be entitled

  2         An act relating to professional sports

  3         franchises; amending s. 288.1162, F.S.;

  4         providing for certification of a retained

  5         spring training franchise facility by the

  6         Office of Tourism, Trade, and Economic

  7         Development, upon determination that certain

  8         requirements have been met; providing the uses

  9         that such facility may make of funds provided

10         pursuant to s. 212.20, F.S.; increasing the

11         number of facilities that may be certified

12         under that section; providing that an applicant

13         certified as a retained spring training

14         franchise facility is required to have a

15         contract with the Department of Labor and

16         Employment Security for the hiring of WAGES

17         participants; providing contract requirements;

18         providing for an annual report on the extent of

19         WAGES hiring by the applicant; amending s.

20         212.20, F.S.; providing for a monthly

21         distribution of a portion of the revenues of

22         the tax on sales, use, and other transactions

23         to a certified retained spring training

24         franchise facility for a specified period;

25         providing an effective date.

26

27  Be It Enacted by the Legislature of the State of Florida:

28

29         Section 1.  Section 288.1162, Florida Statutes, is

30  amended to read:

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    Florida Senate - 1998                            CS for SB 866
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  1         288.1162  Professional sports franchises; spring

  2  training franchises; duties.--

  3         (1)  The Office of Tourism, Trade, and Economic

  4  Development shall serve as the state agency for screening

  5  applicants for state funding pursuant to s. 212.20 and for

  6  certifying an applicant as a "facility for a new professional

  7  sports franchise," a "facility for a retained professional

  8  sports franchise," or a "new spring training franchise

  9  facility;." or a "retained spring training franchise

10  facility."

11         (2)  The Office of Tourism, Trade, and Economic

12  Development shall develop rules for the receipt and processing

13  of applications for funding pursuant to s. 212.20.

14         (3)  As used in this section:

15         (a)  "New professional sports franchise" means a

16  professional sports franchise that is not based in this state

17  prior to April 1, 1987.

18         (b)  "Retained professional sports franchise" means a

19  professional sports franchise that has had a league-authorized

20  location in this state on or before December 31, 1976, and has

21  continuously remained at that location, and has never been

22  located at a facility that has been previously certified under

23  any provision of this section.

24         (4)  Prior to certifying an applicant as a "facility

25  for a new professional sports franchise" or a "facility for a

26  retained professional sports franchise," the Office of

27  Tourism, Trade, and Economic Development must determine that:

28         (a)  A "unit of local government" as defined in s.

29  218.369 is responsible for the construction, management, or

30  operation of the professional sports franchise facility or

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    Florida Senate - 1998                            CS for SB 866
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  1  holds title to the property on which the professional sports

  2  franchise facility is located.

  3         (b)  The applicant has a verified copy of a signed

  4  agreement with a new professional sports franchise for the use

  5  of the facility for a term of at least 10 years, or in the

  6  case of a retained professional sports franchise, an agreement

  7  for use of the facility for a term of at least 20 years.

  8         (c)  The applicant has a verified copy of the approval

  9  from the governing authority of the league in which the new

10  professional sports franchise exists authorizing the location

11  of the professional sports franchise in this state after April

12  1, 1987, or in the case of a retained professional sports

13  franchise, verified evidence that it has had a

14  league-authorized location in this state on or before December

15  31, 1976. The term "league" means the National League or the

16  American League of Major League Baseball, the National

17  Basketball Association, the National Football League, or the

18  National Hockey League.

19         (d)  The applicant has projections, verified by the

20  Office of Tourism, Trade, and Economic Development, which

21  demonstrate that the new or retained professional sports

22  franchise will attract a paid attendance of more than 300,000

23  annually.

24         (e)  The applicant has an independent analysis or

25  study, verified by the Office of Tourism, Trade, and Economic

26  Development, which demonstrates that the amount of the

27  revenues generated by the taxes imposed under chapter 212 with

28  respect to the use and operation of the professional sports

29  franchise facility will equal or exceed $2 million annually.

30         (f)  The municipality in which the facility for a new

31  or retained professional sports franchise is located, or the

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    Florida Senate - 1998                            CS for SB 866
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  1  county if the facility for a new or retained professional

  2  sports franchise is located in an unincorporated area, has

  3  certified by resolution after a public hearing that the

  4  application serves a public purpose.

  5         (g)  The applicant has demonstrated that it has

  6  provided, is capable of providing, or has financial or other

  7  commitments to provide more than one-half of the costs

  8  incurred or related to the improvement and development of the

  9  facility.

10         (h)  No applicant previously certified under any

11  provision of this section who has received funding under such

12  certification shall be eligible for an additional

13  certification.

14         (5)  As used in this section, the term:

15         (a)  "New spring training franchise" means a spring

16  training franchise that is not based in this state prior to

17  July 1, 1990.

18         (b)  "Retained spring training franchise" means a

19  spring training franchise that located in this state in 1955,

20  that replaced a spring training franchise that had been

21  located continuously at the same publicly owned stadium for 33

22  years, and that does not play its regular major league

23  baseball games in the same city in which it trains.

24         (6)  Prior to certifying an applicant as a "new spring

25  training franchise facility," the Office of Tourism, Trade,

26  and Economic Development must determine that:

27         (a)  A "unit of local government" as defined in s.

28  218.369 is responsible for the construction, management, or

29  operation of the new spring training franchise facility or

30  holds title to the property on which the new spring training

31  franchise facility is located.

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    Florida Senate - 1998                            CS for SB 866
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  1         (b)  The applicant has a verified copy of a signed

  2  agreement with a new spring training franchise for the use of

  3  the facility for a term of at least 15 years.

  4         (c)  The applicant has a financial commitment to

  5  provide 50 percent or more of the funds required by an

  6  agreement for the use of the facility by the new spring

  7  training franchise.

  8         (d)  The proposed facility for the new spring training

  9  franchise is located within 20 miles of an interstate or other

10  limited-access highway system.

11         (e)  The applicant has projections, verified by the

12  Office of Tourism, Trade, and Economic Development, which

13  demonstrate that the new spring training franchise facility

14  will attract a paid attendance of at least 50,000 annually.

15         (f)  The new spring training franchise facility is

16  located in a county that is levying a tourist development tax

17  pursuant to s. 125.0104(3)(b), (c), (d), and (l), at the rate

18  of 4 percent by March 1, 1992, and, 87.5 percent of the

19  proceeds from such tax are dedicated for the construction of a

20  spring training complex.

21         (7)(a)  Before certifying an applicant as a "retained

22  spring training franchise facility," the Office of Tourism,

23  Trade, and Economic Development must determine that:

24         1.  A unit of local government, as defined in s.

25  218.369, is responsible for the construction, management, or

26  operation of the retained spring training franchise facility

27  or holds title to the property on which the retained spring

28  training franchise facility is located.

29         2.  The retained spring training franchise will conduct

30  additional training activities at a different site within the

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    Florida Senate - 1998                            CS for SB 866
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  1  county in which the retained spring training franchise

  2  facility is located.

  3         3.  The applicant has projections, verified by the

  4  Office of Tourism, Trade, and Economic Development, which

  5  demonstrate that the amount of the revenues generated by the

  6  taxes imposed under chapter 212 with respect to the use and

  7  operation of the retained spring training franchise facility

  8  will equal or exceed $1.2 million annually.

  9         4.  The retained spring training franchise will sign a

10  lease agreement for a period of no less than 15 years with the

11  applicant at the completion of its existing short-term

12  agreement.

13         (b)  The Office of Tourism, Trade, and Economic

14  Development shall consider the value of the land and the

15  existing stadium toward any required contribution by the

16  applicant for costs incurred or related to the improvement and

17  development of the facility.

18         (8)(7)  An applicant certified as a facility for a new

19  professional sports franchise or a facility for a retained

20  professional sports franchise or as a new spring training

21  franchise facility or a retained spring training franchise

22  facility may use funds provided pursuant to s. 212.20 only for

23  the public purpose of paying for the construction,

24  reconstruction, or renovation of a facility for a new

25  professional sports franchise, a facility for a retained

26  professional sports franchise, or a new spring training

27  franchise facility, or a retained spring training franchise

28  facility or to pay or pledge for the payment of debt service

29  on, or to fund debt service reserve funds, arbitrage rebate

30  obligations, or other amounts payable with respect to, bonds

31  issued for the construction, reconstruction, or renovation of

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    Florida Senate - 1998                            CS for SB 866
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  1  such facility or for the reimbursement of such costs or the

  2  refinancing of bonds issued for such purposes.

  3         (9)(8)  The Office of Tourism, Trade, and Economic

  4  Development shall notify the Department of Revenue of any

  5  facility certified as a facility for a new professional sports

  6  franchise or a facility for a retained professional sports

  7  franchise or as a new spring training franchise facility or a

  8  retained spring training franchise facility.  The Office of

  9  Tourism, Trade, and Economic Development may certify no more

10  than nine eight facilities as facilities for a new

11  professional sports franchise, as facilities for a retained

12  professional sports franchise, or as new spring training

13  franchise facilities, or as retained spring training franchise

14  facilities, including in such total any facilities certified

15  by the Department of Commerce before July 1, 1996. The office

16  may make no more than one certification for any facility, and

17  shall make no more than one certification for a retained

18  spring training franchise facility.

19         (10)(9)  The Department of Revenue may audit as

20  provided in s. 213.34 to verify that the distributions

21  pursuant to this section have been expended as required in

22  this section. Such information is subject to the

23  confidentiality requirements of chapter 213. If the Department

24  of Revenue determines that the distributions pursuant to this

25  section have not been expended as required by this section, it

26  may pursue recovery of such funds pursuant to the laws and

27  rules governing the assessment of taxes.

28         (11)(10)  An applicant shall not be qualified for

29  certification under this section if the franchise formed the

30  basis for a previous certification, unless the previous

31  certification was withdrawn by the facility or invalidated by

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    Florida Senate - 1998                            CS for SB 866
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  1  the Office of Tourism, Trade, and Economic Development or the

  2  Department of Commerce before any funds were distributed

  3  pursuant to s. 212.20. This subsection does not disqualify an

  4  applicant if the previous certification occurred between May

  5  23, 1993, and May 25, 1993; however, any funds to be

  6  distributed pursuant to s. 212.20 for the second certification

  7  shall be offset by the amount distributed to the previous

  8  certified facility. Distribution of funds for the second

  9  certification shall not be made until all amounts payable for

10  the first certification have been distributed.

11         (12)  The Office of Tourism, Trade, and Economic

12  Development shall, in addition to any other requirements of

13  this section, determine that an applicant that has been

14  certified under this section as a retained spring training

15  franchise facility has entered into a contract with the

16  Department of Labor and Employment Security in which the

17  applicant agrees to register with the Work and Gain Economic

18  Self-Sufficiency (WAGES) Program Business Registry established

19  by the local WAGES coalition for the area in which the

20  applicant is located.  Such contract shall further provide

21  that the applicant shall hire WAGES program participants to

22  the maximum extent possible and shall provide for appropriate

23  monitoring and training of such employees.  The applicant

24  shall agree to employ a specified number of WAGES participants

25  in each year that it receives a distribution under s. 212.20.

26  The number of WAGES participants to be employed by the

27  applicant shall be based upon the applicant's good faith

28  efforts, workforce availability, suitable jobs, and in keeping

29  with the facility's minimum standards of employment as

30  provided in the contract with the department.  The applicant

31  may renegotiate the contract and employ fewer program

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    Florida Senate - 1998                            CS for SB 866
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  1  participants if the applicant demonstrates to the satisfaction

  2  of the department that due to economic conditions or the

  3  nature of its business in a given year the requirement to hire

  4  the specified number of employees is unattainable.  Each

  5  applicant subject to the requirements of this subsection shall

  6  report to the Governor, the Speaker of the House of

  7  Representatives, and the President of the Senate by December

  8  31 of each year in which the applicant receives a distribution

  9  under s. 212.20 on the extent to which its employees are WAGES

10  participants.

11         Section 2.  Paragraph (f) of subsection (6) of section

12  212.20, Florida Statutes, is amended to read:

13         212.20  Funds collected, disposition; additional powers

14  of department; operational expense; refund of taxes

15  adjudicated unconstitutionally collected.--

16         (6)  Distribution of all proceeds under this chapter

17  shall be as follows:

18         (f)  The proceeds of all other taxes and fees imposed

19  pursuant to this chapter shall be distributed as follows:

20         1.  In any fiscal year, the greater of $500 million,

21  minus an amount equal to 4.6 percent of the proceeds of the

22  taxes collected pursuant to chapter 201, or 5 percent of all

23  other taxes and fees imposed pursuant to this chapter shall be

24  deposited in monthly installments into the General Revenue

25  Fund.

26         2.  Two-tenths of one percent shall be transferred to

27  the Solid Waste Management Trust Fund.

28         3.  After the distribution under subparagraphs 1. and

29  2., 9.653 percent of the amount remitted by a sales tax dealer

30  located within a participating county pursuant to s. 218.61

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    Florida Senate - 1998                            CS for SB 866
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  1  shall be transferred into the Local Government Half-cent Sales

  2  Tax Clearing Trust Fund.

  3         4.  After the distribution under subparagraphs 1., 2.,

  4  and 3., 0.054 percent shall be transferred to the Local

  5  Government Half-cent Sales Tax Clearing Trust Fund and

  6  distributed pursuant to s. 218.65.

  7         5.  Of the remaining proceeds:

  8         a.  One hundred sixty-six thousand six hundred and

  9  sixty-seven dollars Beginning July 1, 1992, $166,667 shall be

10  distributed monthly by the department to each applicant that

11  has been certified as a "facility for a new professional

12  sports franchise" or a "facility for a retained professional

13  sports franchise" pursuant to s. 288.1162, $102,202 shall be

14  distributed monthly by the department to each applicant that

15  has been certified as a "facility for a retained spring

16  training franchise" pursuant to s. 288.1162, and $41,667 shall

17  be distributed monthly by the department to each applicant

18  that has been certified as a "new spring training franchise

19  facility" pursuant to s. 288.1162. Distributions shall begin

20  60 days following such certification and shall continue for 30

21  years. Nothing contained herein shall be construed to allow an

22  applicant certified pursuant to s. 288.1162 to receive more in

23  distributions than actually expended by the applicant for the

24  public purposes provided for in s. 288.1162(8) s. 288.1162(7).

25  However, a certified applicant shall receive distributions up

26  to the maximum amount allowable and undistributed under this

27  section for additional renovations and improvements to the

28  facility for the franchise without additional certification.

29         b.  Beginning 30 days after notice by the Office of

30  Tourism, Trade, and Economic Development to the Department of

31  Revenue that an applicant has been certified as the

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    Florida Senate - 1998                            CS for SB 866
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  1  professional golf hall of fame pursuant to s. 288.1168 and is

  2  open to the public, $166,667 shall be distributed monthly, for

  3  up to 300 months, to the applicant.

  4         c.  Beginning 30 days after notice by the Department of

  5  Commerce to the Department of Revenue that the applicant has

  6  been certified as the International Game Fish Association

  7  World Center facility pursuant to s. 288.1169, and the

  8  facility is open to the public, $83,333 shall be distributed

  9  monthly, for up to 180 months, to the applicant.  This

10  distribution is subject to reduction pursuant to s. 288.1169.

11         6.  All other proceeds shall remain with the General

12  Revenue Fund.

13         Section 3.  This act shall take effect July 1, 1998.

14

15          STATEMENT OF SUBSTANTIAL CHANGES CONTAINED IN
                       COMMITTEE SUBSTITUTE FOR
16                         Senate Bill 866

17

18  Lowers the limit on the number of facilities that may be
    certified as a retained spring training franchise facility
19  from ten to nine.

20  Strikes the language which requires an applicant certified
    after July 1, 1998, to fund and maintain fields for amateur
21  sports activities as recommended by the county in which the
    applicant's certified facility is located.
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