Florida Statutes 288.11631 – Retention of Major League Baseball spring training baseball franchises
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(1) DEFINITIONS.–As used in this section, the term:
(a) “Agreement” means a certified, signed lease between an applicant that applies for certification on or after July 1, 2013, and a spring training franchise for the use of a facility.
Terms Used In Florida Statutes 288.11631
- Contract: A legal written agreement that becomes binding when signed.
- Department: means the Department of Commerce. See Florida Statutes 288.005
- Jurisdiction: (1) The legal authority of a court to hear and decide a case. Concurrent jurisdiction exists when two courts have simultaneous responsibility for the same case. (2) The geographic area over which the court has authority to decide cases.
- Lease: A contract transferring the use of property or occupancy of land, space, structures, or equipment in consideration of a payment (e.g., rent). Source: OCC
- Precedent: A court decision in an earlier case with facts and law similar to a dispute currently before a court. Precedent will ordinarily govern the decision of a later similar case, unless a party can show that it was wrongly decided or that it differed in some significant way.
- Tourist: means any person who participates in trade or recreation activities outside the county of his or her permanent residence or who rents or leases transient living quarters or accommodations as described in…. See Florida Statutes 288.005
(b) “Applicant” means a unit of local government as defined in s. 218.369, including a local government located in the same county, which has partnered with a certified applicant before the effective date of this section or with an applicant for a new certification, for purposes of sharing in the responsibilities of a facility.
(c) “Certified applicant” means a facility for a spring training franchise or a unit of local government that is certified under this section.
(d) “Facility” means a spring training stadium, playing fields, and appurtenances intended to support spring training activities.
(e) “Local funds” and “local matching funds” mean funds provided by a county, municipality, or other local government.
(2) CERTIFICATION PROCESS.–
(a) Before certifying an applicant to receive state funding for a facility for a spring training franchise, the department must verify that:
1. The applicant is responsible for the construction or renovation of the facility for a spring training franchise or holds title to the property on which the facility for a spring training franchise is located.
2. The applicant has a certified copy of a signed agreement with a spring training franchise. The signed agreement with a spring training franchise for the use of a facility must, at a minimum, be equal to the length of the term of the bonds issued for the public purpose of constructing or renovating a facility for a spring training franchise. If no such bonds are issued for the public purpose of constructing or renovating a facility for a spring training franchise, the signed agreement with a spring training franchise for the use of a facility must be for at least 20 years. Any such agreement with a spring training franchise for the use of a facility cannot be signed more than 4 years before the expiration of any existing agreement with a spring training franchise for the use of a facility. However, any such agreement may be signed at any time before the expiration of any existing agreement with a spring training franchise for use of a facility if the applicant has never received state funding for the facility as a spring training facility under this section or s. 288.11621 and the facility was constructed before January 1, 2000. The agreement must also require the franchise to reimburse the state for state funds expended by an applicant under this section if the franchise relocates before the agreement expires; however, if bonds were issued to construct or renovate a facility for a spring training franchise, the required reimbursement must be equal to the total amount of state distributions expected to be paid from the date the franchise breaks its agreement with the applicant through the final maturity of the bonds. The agreement may be contingent on an award of funds under this section and other conditions precedent.
3. The applicant has made a financial commitment to provide 50 percent or more of the funds required by an agreement for the construction or renovation of the facility for a spring training franchise. The commitment may be contingent upon an award of funds under this section and other conditions precedent.
4. The applicant demonstrates that the facility for a spring training franchise will attract a paid attendance of at least 50,000 persons annually to the spring training games.
5. The facility for a spring training franchise is located in a county that levies a tourist development tax under s. 125.0104.
6. The applicant is not currently certified to receive state funding for the facility as a spring training franchise under this section.
(b) The department shall evaluate applications for state funding of the construction or renovation of the facility for a spring training franchise. The evaluation criteria must include the following items:
1. The anticipated effect on the economy of the local community where the facility is to be constructed or renovated, including projections on paid attendance, local and state tax collections generated by spring training games, and direct and indirect job creation resulting from the spring training activities.
2. The amount of the local matching funds committed to a facility relative to the amount of state funding sought.
3. The potential for the facility to be used as a multiple purpose, year-round facility.
4. The intended use of the funds by the applicant.
5. The length of time that a spring training franchise has been under an agreement to conduct spring training activities within an applicant’s geographic location or jurisdiction.
6. The length of time that an applicant’s facility has been used by one or more spring training franchises, including continuous use as facilities for spring training.
7. The term remaining on a lease between an applicant and a spring training franchise for a facility.
8. The length of time that a spring training franchise agrees to use an applicant’s facility if an application is granted under this section.
9. The location of the facility in a brownfield, an enterprise zone, a community redevelopment area, or other area of targeted development or revitalization included in an urban infill redevelopment plan.
(c) Each applicant certified on or after July 1, 2013, shall enter into an agreement with the department which:
1. Specifies the amount of the state incentive funding to be distributed. The amount of state incentive funding per certified applicant may not exceed $20 million. However, if a certified applicant’s facility is used by more than one spring training franchise, the maximum amount may not exceed $50 million, and the Department of Revenue shall make distributions to the applicant pursuant to s. 212.20(6)(d)6.c.
2. States the criteria that the certified applicant must meet in order to remain certified. These criteria must include a provision stating that the spring training franchise must reimburse the state for any funds received if the franchise does not comply with the terms of the contract. If bonds were issued to construct or renovate a facility for a spring training franchise, the required reimbursement must be equal to the total amount of state distributions expected to be paid from the date the franchise violates the agreement with the applicant through the final maturity of the bonds.
3. States that the certified applicant is subject to decertification if the certified applicant fails to comply with this section or the agreement.
4. States that the department may recover state incentive funds if the certified applicant is decertified.
5. Specifies the information that the certified applicant must report to the department.
6. Includes any provision deemed prudent by the department.
(d) If a certified applicant has been certified under this program for use of its facility by one spring training franchise, the certified applicant may apply to amend its certification for use of its facility by more than one spring training franchise. The certified applicant must submit an application to amend its original certification that meets the requirements of this section. The maximum amount of state incentive funding to be distributed may not exceed $50 million as provided in subparagraph (c)1. for a certified applicant with a facility used by more than one spring training franchise, including any distributions previously received by the certified applicant under its original certification under this section. Upon approval of an amended certification, the department shall notify the Department of Revenue as provided in this section.
(3) USE OF FUNDS.–
(a) A certified applicant may use funds provided under s. 212.20(6)(d)6.c. only to:
1. Serve the public purpose of constructing or renovating a facility for a spring training franchise.
2. Pay or pledge for the payment of debt service on, or to fund debt service reserve funds, arbitrage rebate obligations, or other amounts payable with respect thereto, bonds issued for the construction or renovation of such facility, or for the reimbursement of such costs or the refinancing of bonds issued for such purposes.
(b) State funds awarded to a certified applicant for a facility for a spring training franchise may not be used to subsidize facilities that are privately owned by, maintained by, and used exclusively by a spring training franchise.
(c) The Department of Revenue may not distribute funds under s. 212.20(6)(d)6.c. until July 1, 2016. Further, the Department of Revenue may not distribute funds to an applicant certified on or after July 1, 2013, until it receives notice from the department that:
1. The certified applicant has encumbered funds under either subparagraph (a)1. or subparagraph (a)2.; and
2. If applicable, any existing agreement with a spring training franchise for the use of a facility has expired.
(d)1. All certified applicants shall place unexpended state funds received pursuant to s. 212.20(6)(d)6.c. in a trust fund or separate account for use only as authorized in this section.
2. A certified applicant may request that the department notify the Department of Revenue to suspend further distributions of state funds made available under s. 212.20(6)(d)6.c. for 12 months after expiration of an existing agreement with a spring training franchise to provide the certified applicant with an opportunity to enter into a new agreement with a spring training franchise, at which time the distributions shall resume.
3. The expenditure of state funds distributed to an applicant certified after July 1, 2013, must begin within 48 months after the initial receipt of the state funds. In addition, the construction or renovation of a spring training facility must be completed within 24 months after the project’s commencement.
(4) ANNUAL REPORTS.–
(a) On or before September 1 of each year, a certified applicant shall submit to the department a report that includes, but is not limited to:
1. A detailed accounting of all local and state funds expended to date on the project financed under this section.
2. A copy of the contract between the certified local governmental entity and the spring training franchise.
3. A cost-benefit analysis of the team’s impact on the community.
4. Evidence that the certified applicant continues to meet the criteria in effect when the applicant was certified.
(b) The department shall compile the information received from each certified applicant and publish the information annually by November 1.
(5) DECERTIFICATION.–
(a) The department shall decertify a certified applicant upon the request of the certified applicant.
(b) The department shall decertify a certified applicant if the certified applicant does not:
1. Have a valid agreement with a spring training franchise; or
2. Satisfy its commitment to provide local matching funds to the facility.
However, decertification proceedings against a local government certified after July 1, 2013, shall be delayed until 12 months after the expiration of the local government’s existing agreement with a spring training franchise, and without a new agreement being signed, if the certified local government can demonstrate to the department that it is in active negotiations with a major league spring training franchise, other than the franchise that was the basis for the original certification.
(c) A certified applicant has 60 days after it receives a notice of intent to decertify from the department to petition for review of the decertification. Within 45 days after receipt of the request for review, the department must notify a certified applicant of the outcome of the review.
(d) The department shall notify the Department of Revenue that a certified applicant has been decertified within 10 days after the order of decertification becomes final. The Department of Revenue shall immediately stop the payment of any funds under this section which were not encumbered by the certified applicant under subparagraph (3)(a)2.
(e) The department shall order a decertified applicant to repay all of the unencumbered state funds that the applicant received under this section and any interest that accrued on those funds. The repayment must be made within 60 days after the decertification order becomes final. These funds shall be deposited into the General Revenue Fund.
(f) A local government as defined in s. 218.369 may not be decertified by the department if it has paid or pledged for the payment of debt service on, or to fund debt service reserve funds, arbitrage rebate obligations, or other amounts payable with respect thereto, bonds issued for the construction or renovation of the facility for which the local government was certified, or for the reimbursement of such costs or the refinancing of bonds issued for the construction or renovation of the facility for which the local government was certified, or for the reimbursement of such costs or the refinancing of bonds issued for such purpose. This subsection does not preclude or restrict the ability of a certified local government to refinance, refund, or defease such bonds.
(6) RULEMAKING.–The department shall adopt rules to implement the certification, decertification, and decertification review processes required by this section.
(7) AUDITS.–The Auditor General may conduct audits as provided in s. 11.45 to verify that the distributions under this section are expended as required in this section. If the Auditor General determines that the distributions under this section are not expended as required by this section, the Auditor General shall notify the Department of Revenue, which may pursue recovery of the funds under the laws and rules governing the assessment of taxes.