Florida Senate - 2013 COMMITTEE AMENDMENT
Bill No. CS for CS for SB 306
Barcode 277498
LEGISLATIVE ACTION
Senate . House
Comm: RCS .
04/22/2013 .
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The Committee on Appropriations (Lee, Thrasher, and Gardiner)
recommended the following:
1 Senate Amendment (with title amendment)
2
3 Delete lines 368 - 734
4 and insert:
5 management, or operation of a facility; or an entity that is
6 responsible for the construction, management, or operation of a
7 facility if a unit of local government holds title to the
8 underlying property on which the facility is located.
9 (b) “Agreement” means a signed agreement between a unit of
10 local government and a beneficiary.
11 (c) “Beneficiary” means a professional sports franchise of
12 the National Football League, the National Hockey League, the
13 National Basketball Association, the National League or American
14 League of Major League Baseball, Major League Soccer, or the
15 National Association of Stock Car Auto Racing, or a nationally
16 recognized professional sports association that occupies or uses
17 a facility as the facility’s primary tenant. A beneficiary may
18 also be an applicant under this section.
19 (d) “Facility” means a facility primarily used to host
20 games or events held by a beneficiary and does not include any
21 portion used to provide transient lodging. For a professional
22 sports franchise that uses or occupies a local government-owned
23 facility during the months from February through April, the
24 facility also includes training facilities that are associated
25 with the primary facility, but does not include any portion used
26 to provide transient lodging.
27 (e) “Project” means a proposed construction,
28 reconstruction, renovation, or improvement of a facility.
29 (f) “State sales taxes generated by sales at the facility”
30 means state sales taxes imposed under chapter 212 generated by
31 admissions to the facility or by sales made by vendors at the
32 facility who are accessible to persons attending events
33 occurring at the facility.
34 (g) “Signature event” means a professional sports event
35 with significant export factor potential. For purposes of this
36 paragraph, the term “export factor” means the attraction of
37 economic activity or growth into the state that otherwise would
38 not have occurred. Examples of signature events may include, but
39 are not limited to:
40 1. National Football League Super Bowls.
41 2. Professional sports All-Star games.
42 3. International sporting events and tournaments.
43 4. Professional automobile race championships or Formula 1
44 Grand Prix.
45 5. The establishment of a new professional sports franchise
46 in this state.
47 (3) PURPOSE.—The purpose of this section is to provide
48 applicants state funding under s. 212.20(6)(d)6.e. for the
49 public purpose of constructing, reconstructing, renovating, or
50 improving a facility.
51 (4) APPLICATION AND APPROVAL PROCESS.—
52 (a) The department shall establish the procedures and
53 application forms deemed necessary pursuant to the requirements
54 of this section. The department may notify an applicant of any
55 additional required or incomplete information necessary to
56 evaluate an application.
57 (b) The annual application period shall be from June 1
58 through November 1.
59 (c) Within 60 days after receipt of a completed
60 application, the department shall complete its evaluation of the
61 application as provided under subsection (5) and notify the
62 applicant in writing as to the department’s decision to
63 recommend approval of the applicant by the Legislature or to
64 deny the application.
65 (d) Annually by February 1, the department shall rank all
66 applicants and shall provide to the Legislature the list of all
67 recommended applicants in ranked order of projects most likely
68 to positively impact the state based on required criteria
69 established in this section. The list shall include the
70 department’s evaluation of the applicant.
71 (e) A recommended applicant’s request for funding must be
72 approved by the Legislature by general law.
73 1. An application by a unit of local government which is
74 approved by the Legislature and subsequently certified by the
75 department remains certified for the duration of the
76 beneficiary’s agreement with the applicant or for 30 years,
77 whichever is less, provided the certified applicant has an
78 agreement with a beneficiary at the time of initial
79 certification by the department.
80 2. An application by a beneficiary that is approved by the
81 Legislature and subsequently certified by the department remains
82 certified for the duration of the beneficiary’s agreement with
83 the unit of local government that owns the underlying property
84 or for 30 years, whichever is less, provided the certified
85 applicant has an agreement with the unit of local government at
86 the time of initial certification by the department.
87 3. Previously certified applicants under this section do
88 not require legislative approval each year to receive state
89 funding.
90 (f) Applicants recommended by the department and not
91 approved by the Legislature may reapply and update any
92 information in the original application as required by the
93 department.
94 (g) The department may recommend no more than one
95 distribution under this section for any applicant, facility, or
96 beneficiary at a time.
97 (5) EVALUATION PROCESS.—
98 (a) Before recommending an applicant to receive a state
99 distribution under s. 212.20(6)(d)6.e., the department must
100 verify that:
101 1. The applicant or beneficiary is responsible for the
102 construction, reconstruction, renovation, or improvement of a
103 facility.
104 2. If the applicant is also the beneficiary, a unit of
105 local government holds title to the property on which the
106 facility and project are located.
107 3. The project for which the applicant is seeking state
108 funding has not commenced construction.
109 4. If the applicant is a unit of local government in whose
110 jurisdiction the facility will be located, the unit of local
111 government has an exclusive intent agreement to negotiate in
112 Florida with the beneficiary.
113 5.a. The unit of local government in whose jurisdiction the
114 facility will be located supports the application for state
115 funds. Such support must be verified by the adoption of a
116 resolution after a public hearing that the project serves a
117 public purpose.
118 b. If the unit of local government is required to pass a
119 resolution by a majority plus-one vote by the local government’s
120 governing body and to hold a referendum for approval under s.
121 125.0104(3)(n)2., such resolution and referendum must
122 affirmatively pass for the applicant to receive state funding
123 under this section.
124 6. The applicant or beneficiary has not previously
125 defaulted or failed to meet any statutory requirements of a
126 previous state-administered sports-related program under ss.
127 288.1162, 288.11621, or 288.1168.
128 7. The applicant or beneficiary has sufficiently
129 demonstrated a commitment to employ Florida residents, contract
130 with Florida-based firms, and purchase locally-available
131 building materials to the greatest extent possible.
132 8. If the applicant is a unit of local government, the
133 applicant has a certified copy of a signed agreement with a
134 beneficiary for the use of the facility. If the applicant is a
135 beneficiary, the beneficiary must enter into an agreement with
136 the department. The applicant or beneficiary’s agreement must
137 also require the following:
138 a. The beneficiary must reimburse the state for state funds
139 that have been distributed and will be distributed if the
140 beneficiary relocates before the agreement expires.
141 b. The beneficiary must pay for signage or advertising
142 within the facility. The signage or advertising must be placed
143 in a prominent location as close to the field of play or
144 competition as is practical, displayed consistent with signage
145 or advertising in the same location and like value, and must
146 feature Florida advertising approved by the Florida Tourism
147 Industry Marketing Corporation.
148 9. The project will be commenced within 12 months after
149 receiving state funds.
150 (b) The department shall competitively evaluate and rank
151 applicants that submit applications for state funding received
152 during the application period using the following criteria to
153 evaluate the applicant’s ability to positively impact the state:
154 1. The proposed use of state funds.
155 2. The length of time that a beneficiary has agreed to use
156 the facility.
157 3. The percentage of total project funds provided by the
158 applicant and the percentage of total project funds provided by
159 the beneficiary.
160 4. The number and type of signature events the facility is
161 likely to attract during the duration of the agreement with the
162 beneficiary.
163 5. The anticipated increase in average annual ticket sales
164 and attendance at the facility due to the project.
165 6. The potential to attract out-of-state visitors to the
166 facility.
167 7. The length of time a beneficiary has been in the state
168 or partnered with the unit of local government.
169 8. The multiuse capabilities of the facility.
170 9. The facility’s projected employment of Florida
171 residents, contracts with Florida-based firms, and purchases of
172 locally-available building materials.
173 10. The amount of private and local financial or in-kind
174 contributions to the project.
175 11. The amount of positive advertising or media coverage
176 the facility generates.
177 (6) DISTRIBUTION.—
178 (a) The department shall determine the annual distribution
179 amount an applicant may receive based on the total cost of the
180 project.
181 1. If the total project cost is $200 million or greater,
182 the applicant is eligible to receive annual distributions equal
183 to the new incremental state sales taxes generated by sales at
184 the facility during 12 months as provided under paragraph (b)2.,
185 up to $3 million.
186 2. If the total project cost is at least $100 million but
187 less than $200 million, the applicant is eligible to receive
188 annual distributions equal to the new incremental state sales
189 taxes generated by sales at the facility during 12 months as
190 provided under paragraph (b)2., up to $2 million.
191 3. If the total project cost is less than $100 million, the
192 applicant is eligible to receive annual distributions equal to
193 the new incremental state sales taxes generated by sales at the
194 facility during 12 months as provided under paragraph (b)2., up
195 to $666,660.
196 (b) At the time of initial evaluation and review by the
197 department under subsection (5), the applicant must provide an
198 analysis by an independent certified public accountant which
199 demonstrates:
200 1. The amount of state sales taxes generated by sales at
201 the facility during the 12 month period immediately prior to the
202 beginning of the application period. This amount shall be the
203 baseline.
204 2. The expected amount of new incremental state sales taxes
205 generated by sales at the facility above the baseline that will
206 be generated as a result of the project.
207 (c) The independent analysis provided in paragraph (b) must
208 be verified by the department.
209 (d) The Department of Revenue shall begin distributions
210 within 45 days after notification of initial certification from
211 the department.
212 (e) The department must consult with the Department of
213 Revenue and the Office of Economic and Demographic Research to
214 develop a standard calculation for estimating new incremental
215 state sales taxes generated by sales at the facility and
216 adjustments to distributions.
217 (f) In any 12 month period when total distributions for all
218 certified applicants equal $13 million, the department may not
219 certify new distributions for any additional applicants.
220 (7) CONTRACT.—An applicant approved by the Legislature and
221 certified by the department must enter into a contract with the
222 department which:
223 (a) Specifies the terms of the state’s investment.
224 (b) States the criteria that the certified applicant must
225 meet in order to remain certified.
226 (c) Requires the applicant to submit the independent
227 analysis required under subsection (6) and an annual independent
228 analysis.
229 1. The applicant must agree to submit to the department,
230 beginning twelve months after completion of a project or twelve
231 months after the first four annual distributions, whichever is
232 earlier, an annual analysis by an independent certified public
233 accountant demonstrating the actual amount of new incremental
234 state sales taxes generated by sales at the facility during the
235 previous 12 month period. The applicant shall certify to the
236 department a comparison of the actual amount of state sales
237 taxes generated by sales at the facility during the previous 12
238 month period to the baseline under subparagraph (6)(b)1.
239 2. The applicant must submit the certification within 60
240 days after the end of the previous 12 month period. The
241 department shall verify the analysis.
242 (d) Specifies information that the certified applicant must
243 report to the department.
244 (e) Requires the applicant to reimburse the state for the
245 amount each year that the actual new incremental state sales
246 taxes generated by sales at the facility during the most recent
247 12 month period was less than the annual distribution under
248 paragraph (6)(a). This requirement applies twelve months after
249 completion of a project or 12 months after the first four annual
250 distributions, whichever is earlier.
251 1. If the applicant is unable or unwilling to reimburse the
252 state in any year for the amount equal to the difference between
253 the actual new incremental state sales taxes generated by sales
254 at the facility and the annual distribution under paragraph
255 (6)(a), the department may place a lien on the applicant’s
256 facility.
257 2. If the applicant is a municipality or county, it may
258 reimburse the state from its half-cent sales tax allocation, as
259 provided in s. 218.64(3).
260 3. Reimbursements must be sent to the Department of Revenue
261 for deposit into the General Revenue Fund.
262 (f) Includes any provisions deemed prudent by the
263 department.
264 (8) USE OF FUNDS.—An applicant certified under this section
265 may use state funds only for the following purposes:
266 1. Constructing, reconstructing, renovating, or improving a
267 facility, or reimbursing such costs.
268 2. Paying or pledging for the payment of debt service on,
269 or to fund debt service reserve funds, arbitrage rebate
270 obligations, or other amounts payable with respect thereto,
271 bonds issued for the construction or renovation of such
272 facility, or for the reimbursement of such costs or the
273 refinancing of bonds issued for such purposes.
274 (9) REPORTS.—
275 (a) On or before November 1 of each year, an applicant
276 certified under this section and approved to receive state funds
277 must submit to the department any information required by the
278 department. The department shall summarize this information for
279 inclusion in the report to the Legislature due February 1 under
280 subsection (4)(d).
281 (b) Every 5 years following the first month that an
282 applicant receives a monthly distribution, the department must
283 verify that the applicant is meeting all program requirements.
284 If the applicant is not meeting program requirements, the
285 department must notify the Governor and Legislature of the
286 requirements not being met and must make recommendations for
287 future action as part of the report to the Legislature due
288 February 1 under paragraph (4)(d). The department shall consider
289 certain exceptions that may have prevented the applicant from
290 meeting certain program requirements. Such exceptions include:
291 1. Force majeure events.
292 2. Significant economic downturn.
293 3. Other extenuating circumstances.
294 (10) AUDITS.—The Auditor General may conduct audits as
295 provided in s. 11.45 to verify the independent analysis required
296 under paragraph (6)(b) and paragraph (7)(c) and to verify that
297 the distributions under this section are expended as required in
298 this section. The Auditor General shall report all findings to
299 the department. If the Auditor General determines that the
300 distribution payments under this section are not expended as
301 required by this section, the Auditor General must notify the
302 Department of Revenue, which may pursue recovery of
303 distributions under the laws and rules governing the assessment
304 of taxes.
305 (11) APPLICATION RELATED TO SIGNATURE EVENT.—An applicant
306 may apply for the program under this section after May 1, 2013,
307 if the applicant intends to apply for a signature event prior to
308 the 2014 Regular Session for which state funds for a project are
309 requested. The department must review the application and
310 recommend approval by the Legislature as required under this
311 section. The Legislative Budget Commission is authorized to
312 approve applications as provided under this subsection. For an
313 applicant under this subsection, distributions under this
314 section are conditioned upon award of the signature event
315 applied for which was the basis of the application under this
316 subsection. State funds may not be distributed until the
317 department notifies the Department of Revenue that the applicant
318 was approved by the Legislative Budget Commission and certified
319 by the department. An applicant certified under this subsection
320 is subject to all other provisions and requirements of this
321 section. An applicant that fails to meet the conditions of this
322 subsection is eligible to reapply during future application
323 periods.
324 (12) REPAYMENT OF DISTRIBUTIONS.—An applicant certified
325 under this section may be subject to repayment of distributions
326 upon the occurrence of any of the following:
327 (a) An applicant’s beneficiary has broken the terms of its
328 agreement with the applicant and relocated from the facility.
329 The beneficiary must reimburse the state for state funds that
330 have been distributed and will be distributed if the beneficiary
331 relocates before the agreement expires.
332 (b) The department has determined that an applicant has
333 submitted any information or made a representation that is
334 determined to be false, misleading, deceptive, or otherwise
335 untrue. The applicant must reimburse the state for state funds
336 that have been distributed and will be distributed if such
337 determination is made.
338 (13) HALTING OF PAYMENTS.—The applicant may request to halt
339 future distributions by providing the department with written
340 notice at least 20 days prior to the next monthly distribution
341 payment. The department must immediately notify the Department
342 of Revenue to halt future payments.
343 (14) RULEMAKING.—The department may adopt rules to
344 implement this section.
345 Section 8. Contingent upon enactment of the Economic
346 Development Program Evaluation as set forth in SB 406 or similar
347 legislation, section 288.116255, Florida Statutes, is created to
348 read:
349 288.116255 Sports Development Program evaluation.—Beginning
350 in 2015, the Sports Development Program must be evaluated as
351 part of the Economic Development Program Evaluation, and every 3
352 years thereafter.
353 Section 9. Subsections (2) and (3) of section 218.64,
354 Florida Statutes, are amended to read:
355 218.64 Local government half-cent sales tax; uses;
356 limitations.—
357 (2) Municipalities shall expend their portions of the local
358 government half-cent sales tax only for municipality-wide
359 programs, for reimbursing the state as required by a contract
360 under subsection (7) of s. 288.11625, or for municipality-wide
361 property tax or municipal utility tax relief. All utility tax
362 rate reductions afforded by participation in the local
363 government half-cent sales tax shall be applied uniformly across
364 all types of taxed utility services.
365 (3) Subject to ordinances enacted by the majority of the
366 members of the county governing authority and by the majority of
367 the members of the governing authorities of municipalities
368 representing at least 50 percent of the municipal population of
369 such county, counties may use up to $2 $3 million annually of
370 the local government half-cent sales tax allocated to that
371 county for funding for any of the following applicants purposes:
372 (a) Funding a certified applicant as a facility for a new
373 or retained professional sports franchise under s. 288.1162 or a
374 certified applicant as defined in s. 288.11621 for a facility
375 for a spring training franchise. It is the Legislature’s intent
376 that the provisions of s. 288.1162, including, but not limited
377 to, the evaluation process by the Department of Economic
378 Opportunity except for the limitation on the number of certified
379 applicants or facilities as provided in that section and the
380 restrictions set forth in s. 288.1162(8), shall apply to an
381 applicant’s facility to be funded by local government as
382 provided in this subsection.
383 (b) Funding a certified applicant as a “motorsport
384 entertainment complex,” as provided for in s. 288.1171. Funding
385 for each franchise or motorsport complex shall begin 60 days
386 after certification and shall continue for not more than 30
387 years.
388 (c) Reimbursing the state as required by a contract under
389 subsection (7) of s. 288.11625.
390 Section 10. (1) The executive director of the Department of
391 Economic Opportunity is authorized, and all conditions are
392 deemed met, to adopt emergency rules under ss. 120.536(1) and
393 120.54(4), Florida Statutes, for the purpose of implementing
394 this act.
395 (2) Notwithstanding any provision of law, such emergency
396 rules shall remain in effect for 6 months after the date adopted
397 and may be renewed during the pendency of procedures to adopt
398 permanent rules addressing the subject of the emergency rules.
399
400 ================= T I T L E A M E N D M E N T ================
401 And the title is amended as follows:
402 Delete lines 59 - 85
403 and insert:
404 providing evaluation criteria for an applicant to
405 receive state funding; providing for evaluation and
406 ranking of applicants under certain criteria; allowing
407 the department to determine the type of beneficiary;
408 providing levels of state funding up to a certain
409 amount of new incremental state sales tax revenue;
410 providing for a distribution and calculation;
411 requiring the Department of Revenue to distribute
412 funds within 45 days of notification by the
413 department; limiting annual distributions to $13
414 million; providing for a contract between the
415 department and the applicant; limiting use of funds;
416 requiring an applicant to submit information to the
417 department annually; requiring a 5-year review;
418 authorizing the Auditor General to conduct audits;
419 providing for an application related to a signature
420 event; requiring award of a signature event as a
421 condition for receiving distributions for an
422 application related to a signature event; authorizing
423 the Legislative Budget Commission to approve an
424 application; providing for reimbursement of the state
425 funding under certain circumstances; providing for
426 discontinuation of distributions upon an applicant’s
427 request; permitting the Department of Economic
428 Opportunity to adopt rules; contingently creating s.
429 288.116255, F.S.; providing for an evaluation;
430 amending s. 218.64, F.S.; providing for municipalities
431 and counties to expend a portion of local government
432 half-cent sales tax revenues to reimburse the state as
433 required by a contract; authorizing the Department of
434 Economic Opportunity to adopt