Florida 2022 2022 Regular Session

Florida House Bill H0499 Analysis / Analysis

Filed 01/21/2022

                    This docum ent does not reflect the intent or official position of the bill sponsor or House of Representatives. 
STORAGE NAME: h0499.LAV 
DATE: 1/21/2022 
 
HOUSE OF REPRESENTATIVES STAFF ANALYSIS 
 
BILL #: HB 499    Agreements with Professional Sports Teams 
SPONSOR(S): Gregory and others 
TIED BILLS:   IDEN./SIM. BILLS: SB 1298 
 
REFERENCE 	ACTION ANALYST STAFF DIRECTOR or 
BUDGET/POLICY CHIEF 
1) Local Administration & Veterans Affairs 
Subcommittee 
 	Mwakyanjala Miller 
2) Judiciary Committee    
3) State Affairs Committee    
SUMMARY ANALYSIS 
Florida is home to 11 major professional sports franchises in five national sports organizations. The 
Professional Sports Franchise program allows professional sports franchises to receive state sales and use tax 
revenue to pay for the acquisition, construction, reconstruction, or renovation of a facility for a new or retained 
professional sports franchise. The Department of Economic Opportunity serves as the state agency for 
screening applicants for state funding and for certifying an applicant as a facility for a new or retained 
professional sports franchise. Currently, eight facilities and 14 major league baseball teams that have spring 
training facilities in the state receive distributions under the Professional Sports Franchise Program. 
 
The bill provides that beginning July 1, 2022, a governmental entity is prohibited from entering into an 
agreement with a professional sports team that requires a financial commitment by the state or a governmental 
entity unless the agreement includes: 
 A written verification that the professional sports team will play the United States national 
anthem at the beginning of each team sporting event held at the team’s home venue or other 
facility controlled by the team for the event; and 
 A provision providing that a failure to comply with the written verification constitutes a default of 
the agreement and subjects the team to immediate penalties and potential prohibition from 
contracting with the state. 
 
The bill provides a governmental entity that enters into an agreement with a professional sports team must 
strictly enforce the “failure to comply” provision. The Attorney General may intervene to enforce the provision 
should the governmental entity fail to timely enforce the provision. 
 
The bill does not appear to have a fiscal impact on the state or local governments. 
 
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FULL ANALYSIS 
I.  SUBSTANTIVE ANALYSIS 
 
A. EFFECT OF PROPOSED CHANGES: 
Present Situation 
 
Professional Sports Franchises 
 
Florida is home to 11 major professional sports franchises in five national sports organizations: Major 
League Baseball (MLB), the National Basketball Association (NBA), the National Football League 
(NFL), the National Hockey League (NHL), and Major League Soccer (MLS). Florida also hosts 15 of 
the MLB teams for spring training and is home to the Association of Tennis Professionals, three 
National Association for Stock Car Auto Racing (NASCAR) racetracks, the Professional Golfers’ 
Association (PGA) of America, the Ladies Professional Golf Association (LPGA), and the World Golf 
Hall of Fame.
1
  
 
The Professional Sports Franchise program allows professional sports franchises to receive state sales 
and use tax revenue to pay for the acquisition, construction, reconstruction, or renovation of a facility 
for a new or retained professional sports franchise. The Department of Economic Opportunity (DEO) 
serves as the state agency for screening applicants for state funding and for certifying an applicant as a 
facility for a new or retained professional sports franchise.
2
 For both new and retained franchises, the 
DEO must confirm and verify the following: 
 A local government is responsible for the construction, management, or operation of the 
professional sports franchise facility, or holds title to the property where the facility is located. 
 The applicant has a verified copy of a signed agreement with a new professional sports 
franchise for at least 10 years, or for 20 years in the case of a retained franchise. 
 The applicant has a verified copy of the approval by the governing body of the NFL, MLB, NHL, 
or NBA authorizing the location of a new franchise in the state after April 1, 1987, for new 
professional sports franchises, or verified evidence of a league-authorization location in the 
state on or before December 31, 1976, for a retained professional sports franchise. 
 The applicant has projections demonstrating a paid annual attendance of over 300,000. 
 The applicant has an independent analysis demonstrating that the annual amount of sales taxes 
generated by the use or operation of the franchise’s facility will be at least $2 million. 
 The municipal government where the franchise’s facility is located, or the county if the facility is 
in an unincorporated area, has certified by resolution after a public hearing that the application 
serves a public purpose. 
 The applicant has demonstrated that it has provided, or is capable of providing, financial or 
other commitments of more than one-half of the costs incurred or related to the improvements 
or development of the franchise’s facility.
3
 
 
Applicants certified as a facility for a new or retained professional sports franchise shall receive 
$166,667 monthly. Applicants who are certified as a facility for a spring training franchise may receive 
up to $41,667 monthly. However, not more than $416,670 may be distributed monthly in the aggregate 
to all certified applicants for spring training franchises. Distributions begin 60 days after certification and 
continue for not more than 30 years.
4
  
 
An applicant certified to retain a MLB spring training baseball franchise may receive up to $83,333 
monthly, or up to $166,667 monthly if the applicant is certified to retain more than one spring training 
franchise. Monthly distributions begin 60 days after certification or July 1, 2016, whichever is later, and 
                                                
1
 Office of Program Policy Analysis and Government Accountability, Report 20-08, Florida Economic Development 
Program Evaluations-Year 8, p. 27 (Dec. 2020), available at https://oppaga.fl.gov/Documents/Reports/20-08.pdf (last 
visited January 20, 2022). 
2
 S. 288.1162, F.S. 
3
 S. 288.1162(4)(a)-(g), F.S. 
4
 S. 212.20(6)(d)6.b., F.S.  STORAGE NAME: h0499.LAV 	PAGE: 3 
DATE: 1/21/2022 
  
continue for not more than 20 years for each certified applicant for a facility used by a single spring 
training franchise or not more than 25 years for each certified applicant for a facility used by more than 
one spring training franchise.
5
  
 
No more than eight facilities can be certified under the Professional Sports Franchise program at one 
time.
6
 Currently, eight facilities receive distributions under the Professional Sports Franchise Program
7
 
and 14 MLB teams have spring training facilities in the state.
8
 
  
Sales and Use Tax 
 
Florida levies a 6 percent sales and use tax on the sale or rental of most tangible personal property,
9
 
admissions,
10
 transient rentals,
11
 and a limited number of services. Chapter 212, F.S., authorizes the 
levy and collection of Florida’s sales and use tax, as well as the exemptions and credits applicable to 
certain items or uses under specified circumstances.  
 
Local Government Half-Cent Sales Tax 
 
The Local Government Half-Cent Sales Tax program distributes a portion of state sales tax revenue via 
three separate distributions to eligible county or municipal governments. Allocation formulas serve as 
the basis for these separate distributions. The program’s primary purpose is to provide relief from ad 
valorem and utility taxes in addition to providing counties and municipalities with revenues for local 
programs.
 12
 
 
Counties may use up to $3 million annually of the local government half-cent sales tax for the following 
purposes:
13
 
 New or retained professional sports franchises under the Professional Sports Franchise 
Program, or a spring training franchise under s. 288.11621, F.S.; or 
 A certified applicant as a motorsport entertainment complex under s. 288.1171, F.S.
14
 
 
Effect of the Bill 
 
The bill provides that beginning July 1, 2022, a governmental entity is prohibited from entering into an 
agreement with a professional sports team that requires a financial commitment by the state or a 
governmental entity unless the agreement includes: 
 A written verification that the professional sports team will play the United States national 
anthem at the beginning of each team sporting event
15
 held at the team’s home venue or other 
facility controlled by the team for the event; and 
 A provision providing that a failure to comply with the written verification: 
o Constitutes a default of the agreement. 
o Immediately subjects the team to any penalty the agreement authorizes for default, which 
may include repaying any money paid to the team by the state or any governmental entity or 
classifying the team as ineligible to receive further money under the agreement. 
                                                
5
 S. 212.20(6)(d)6.e., F.S. 
6
 S. 288.1162(6), F.S. 
7
 Report 20-08 at p. 48. See Appendix A for the chart Professional Sports Facilities for Major League Baseball, National 
Football League, National Hockey League, and National Basketball Association Franchises. 
8
 Id. at p. 47. See Appendix B for the chart Spring Training Facilities for Major League Baseball Franchises. 
9
 S. 212.05(1)(a)1.a, F.S. 
10
 S. 212.04(b), F.S. 
11
 S. 212.03(1)(a), F.S. 
12
 Office of Economic and Demographic Research, 2021 Local Government Financial Information Handbook, p. 55, 
available at http://edr.state.fl.us/Content/local-government/reports/lgfih21.pdf (last visited January 20, 2022). 
13
 Section 218.64(3), F.S. 
14
 The motorsports entertainment complex has had no applicants or funds dispersed since program inception. Supra note 
1 at 35. 
15
 The bill defines a “sporting event” as any preseason, regular season, or postseason game or event of a professional 
sports team.  STORAGE NAME: h0499.LAV 	PAGE: 4 
DATE: 1/21/2022 
  
o May subject the team to a prohibition on contracting with the state. 
 
A governmental entity that enters into an agreement with a professional sports team must strictly 
enforce the “failure to comply” provision. The Attorney General is authorized to intervene to enforce the 
provision should the contracting governmental entity fail to timely enforce the provision. 
 
B. SECTION DIRECTORY: 
Section 1: Defines certain terms pertinent to the bill; provides provisions required in agreements 
made by a professional sports team with governmental entities; provides penalties for 
professional sports teams for failure to comply with the provisions; provides that if a 
governmental entity fails to comply with the required provisions, the attorney general 
may intervene to enforce the provision. 
 
Section 2: Provides an effective date. 
 
II.  FISCAL ANALYSIS & ECONOMIC IMPACT STATEMENT 
 
A. FISCAL IMPACT ON STATE GOVERNMENT: 
 
1. Revenues: 
None. 
 
2. Expenditures: 
None. 
 
B. FISCAL IMPACT ON LOCAL GOVERNMENTS: 
 
1. Revenues: 
The bill appears to have no impact on local governments. 
 
2. Expenditures: 
The bill appears to have no impact on local governments. 
 
C. DIRECT ECONOMIC IMPACT ON PRIVATE SECTOR: 
If a professional sports team receiving funding from the state or a governmental entity does not play the 
national anthem per an agreement with a governmental entity, then that professional sports team could 
not only see a loss in distributions, but may have to repay any money paid to the team by the state or a 
governmental entity. 
 
D. FISCAL COMMENTS: 
None. 
III.  COMMENTS 
 
A. CONSTITUTIONAL ISSUES: 
 
 1. Applicability of Municipality/County Mandates Provision: 
Not Applicable. This bill does not appear to require counties or municipalities to spend funds or take 
action requiring the expenditures of funds; reduce the authority that counties or municipalities have to 
raise revenues in the aggregate; or reduce the percentage of state tax shared with counties or 
municipalities. 
 
 
 2. Other:  STORAGE NAME: h0499.LAV 	PAGE: 5 
DATE: 1/21/2022 
  
None. 
 
B. RULE-MAKING AUTHORITY: 
The bill neither provides authority nor requires administrative rulemaking by executive branch agencies. 
 
C. DRAFTING ISSUES OR OTHER COMMENTS: 
None. 
 
IV.  AMENDMENTS/COMMITTEE SUBSTITUTE CHANGES 
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Appendix A. Professional Sports Facilities for Major League Baseball, National Football League, 
National Hockey League, and National Basketball Association Franchises. 
Team/League  Facility  Location, 
Certified Entity, 
& Certification 
Date  
Monthly 
Distribution, 
Number of 
Years Bonded, 
& Total State 
Payment  
First Payment 
& Final 
Payment  
Total Payments 
as of August 31, 
2020  
Florida 
Panthers NHL  
BB&T Center  Sunrise  
Broward County  
June 1996  
$166,667  
30 years  
$60 million  
August 1996  
July 2026  
$47,833,429  
Jacksonville 
Jaguars NFL  
TIAA Bank Field  Jacksonville  
City of 
Jacksonville  
April 1994  
$166,667  
30 years  
$60 million  
June 1994  
May 2024  
$52,166,771  
Miami 
Dolphins NFL  
Hard Rock 
Stadium  
Miami  
South Florida 
Stadium Corp.  
May 1993  
$166,667  
30 years  
$60 million  
June 1994  
June 2023  
$54,000,108  
Miami Heat 
NBA  
American 
Airlines Arena  
Miami  
Basketball 
Properties, LTD 
February 1998  
$166,667  
30 years  
$60 million  
March 1998  
March 2028  
$44,500,089  
Orlando Magic 
NBA  
Amway Center  Orlando  
City of Orlando  
November 2007  
$166,667  
30 years  
$60 million  
February 2008  
January 2038  
$24,833,383  
Tampa Bay 
Buccaneers 
NFL  
Raymond 
James Stadium  
Tampa  
Hillsborough 
County  
November 1996  
$166,667  
30 years  
$60 million  
January 1997  
December 2026  
$47,000,094  
Tampa Bay 
Lightning 
NHLs  
AMALIE Arena  Tampa  
Tampa Bay 
Sports Authority  
July 1995  
$166,667  
30 years  
$60 million  
September 
1995  
August 2025  
$49,666,766  
Tampa Bay 
Rays MLB  
Tropicana Field  St. Petersburg  
City of St. 
Petersburg  
July 1995  
$166,667  
30 years  
$60 million  
July 1995  
June 2025  
$50,000,100  
Total:    	$370,000,740.00 
 
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Appendix B. Spring Training Facilities for Major League Baseball Franchises. 
Team Facility  Location 
Certified 
Entity, 
Certification 
Date, & 
Certification 
Statute  
Monthly 
Distribution, 
Number of 
Years 
Bonded, & 
Total State 
Payment  
First Payment 
& Final 
Payment  
Total 
Payments as 
of August 31, 
2020  
Team's Lease 
Expires  
Atlanta 
Braves 
(New 
Certification) 
CoolToday 
Park  
Venice  
West Villages 
Improvement 
District 
November 
2017  
s. 288.11631, 
F.S.  
$83,333  
20 years  
$20 million  
January 2018  
December 
2037  
$2,499,990  2048  
Baltimore 
Orioles 
Ed smith 
Stadium  
Sarasota  
City of 
Sarasota  
December 
2006  
s. 288.1162, 
F.S.  
$41,667  
30 years  
$15 million  
March 2007  
March 2037  
$6,666,720  2039  
Detroit tigers Joker 
Marchant 
Stadium  
Lakeland  
City of 
Lakeland  
April 2015  
s. 288.11631, 
F.S.  
$83,333  
20 years  
$20 million  
November 
2016  
October 2036  
$3,666,652  2036  
Houston 
Astros 
& Washington 
Nationals 
FITTEAM 
Ballpark of the 
Palm Beaches  
West Palm 
Beach  
Palm Beach 
County  
October 2015  
s. 288.11631, 
F.S.  
$166,667  
25 years  
$50 million  
October 2016  
September 
2041  
$7,500,015  2048  
Los Angeles 
Dodgers 
Holman 
Stadium at 
Jackie 
Robinson 
Training 
Complex  
Vero Beach  
Indian River 
County  
January 2001  
s. 288.1162, 
F.S.  
$41,667  
30 years  
$15 million  
March 2001  
February 2031  
$9,666,744  N/A  
Minnesota 
Twins 
Hammond 
Stadium at 
CenturyLink 
Sports 
Complex  
Fort Myers  
Lee County  
August 2012  
s. 288.11621, 
F.S.  
$41,667  
30 years  
$15 million  
July 2013  
June 2043  
$3,500,028  2048  
New York 
Mets 
Clover Park  Port St. Lucie  
St. Lucie 
County  
December 
2006  
s. 288.1162, 
F.S.  
$21,985  
30 years  
$7 million  
March 2007  
March 2017  
$2,660,241  2016  
New York 
Mets (New 
Certification) 
Clover Park  Port St. Lucie  
St. Lucie 
County  
March 2017  
s. 288.11631, 
F.S.  
$83,333  
20 years  
$20 million  
June 2017  
May 2037  
$3,083,321  2042  
New York 
Yankees 
(New 
Certification) 
George M. 
Steinbrenner 
Field  
Tampa  
Tampa Sports 
Authority  
December 
2016  
s. 288.11631, 
F.S.  
$83,333  
20 years  
$20 million  
January 2017  
December 
2036  
$3,499,986  2046  
Philadelphia 
Phillies 
Spectrum Field  Clearwater  $41,667  
30 years  
March 2001  
February 2031  
$9,666,744  2023   STORAGE NAME: h0499.LAV 	PAGE: 8 
DATE: 1/21/2022 
  
City of 
Clearwater  
December 
2006  
s. 288.1162, 
F.S.  
$15 million  
Pittsburgh 
Pirates 
LECOM Park  Bradenton  
City of 
Bradenton  
December 
2006  
s. 288.1162, 
F.S.  
$41,667  
30 years  
$15 million  
March 2007  
March 2037  
$6,666,720  2037  
Tampa Bay 
Rays 
Charlotte 
Sports Park  
Port Charlotte  
Charlotte 
County  
December 
2006  
s. 288.1162, 
F.S.  
$41,667  
30 years  
$15 million  
March 2007  
March 2037  
$6,666,720  2028  
Toronto Blue 
Jays 
TD Ballpark  Dunedin  
City of 
Dunedin  
January 2001  
s. 288.1162, 
F.S.  
$41,667  
20 years  
$10 million  
March 2001  
February 2023  
$9,666,744  2019  
Toronto Blue 
Jays (New 
Certification) 
TD Ballpark  Dunedin  
City of 
Dunedin  
July 2018  
s. 288.11631, 
F.S.  
$83,333  
20 years  
$20 million  
September 
2018  
August 2038  
$1,833,326  2043  
Total  	$896,986 
monthly, $257 
million total 
 	$77,243,951.00