The Florida Senate
BILL ANALYSIS AND FISCAL IMPACT STATEMENT
(This document is based on the provisions contained in the legislation as of the latest date listed below.)
Prepared By: The Professional Staff of the Committee on Commerce and Tourism
BILL: SB 1298
INTRODUCER: Senator Gruters
SUBJECT: Agreements with Professional Sports Teams
DATE: January 14, 2022
ANALYST STAFF DIRECTOR REFERENCE ACTION
1. Renner McKay CM Pre-meeting
2. CA
3. RC
I. Summary:
SB 1298 prohibits a governmental entity 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 U.S.
national anthem at the beginning of each team sporting event.
Failure to comply with the written verification constitutes a default and subjects the team to any
penalty the agreement authorizes for default, which may include the team repaying money paid
to the team by the state or governmental entity.
The agreement must be strictly enforced. Should a governmental entity fail to timely enforce the
written verification, the Attorney General is authorized to intervene.
The bill does not appear to have a fiscal impact on state or local governments.
The bill takes effect on July 1, 2022.
II. Present Situation:
Professional Sports Franchise Program
Florida is home to many professional and semi-professional sports teams, organizations and
facilities, including professional football, basketball, baseball, hockey, soccer, and National
Association of Stock Car Racing (NASCAR) sanctioned tracks. 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
REVISED: BILL: SB 1298 Page 2
new or retained professional sports franchise.
1
Local governments, non-profit, and for-profit
entities may apply to the program.
The Department of Economic Opportunity (DEO) is responsible for screening and certifying
applicants for state funding.
2
For both new and retained franchises, the DEO must confirm and
verify the following:
3
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 local government where the franchise’s facility is located, or the county of 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, 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.
Approved applicants are eligible to receive up to $2,000,004 per year for a period of up to 30
years.
4
No more than eight facilities can be certified under this program at one time.
5
Currently, eight facilities receive distributions under the Professional Sports Franchise Program.
Each facility is on track to receive $60 million, which is the maximum distribution allowable
under this program ($166,667 per month or $2,000,004 per year, over 30 years) as follows:
6
Facility name Location,
Certified entity,
& certification
date
Franchise First and Final
payments
Total payments
as of Aug. 2020
BB&T Center Sunrise, Broward
County, June
1996
Florida Panthers Aug. 1996
July 2026
$47,833,429
1
Section 288.1162, F.S.
2
Section 288.1162(1), F.S.
3
Section 288.1162(4)(a)-(g), F.S.
4
Section 212.20(6)(d)6.b., F.S.
5
Section 288.1162(6), F.S.
6
Office of Program Policy Analysis and Government Accountability, Report 20-08, Florida Economic Development
Program Evaluations-Year 8, p. 48 (Dec. 2020), available at https://oppaga.fl.gov/Documents/Reports/20-08.pdf (last visited
Jan. 14, 2022). BILL: SB 1298 Page 3
TIAA Bank
Field
Jacksonville,
City of
Jacksonville,
April 1994
Jacksonville
Jaguars
June 1994
May 2024
$52,166,771
Hard Rock
Stadium
Miami, South
Florida Stadium
Corp., May 1993
Miami Dolphins June 1994
June 2023
$54,000,108
American
Airlines Arena
Miami,
Basketball
Properties, LTD,
Feb. 1998
Miami Heat March 1998
March 2028
$44,500,089
Amway Center Orlando, City of
Orlando, Nov.
2007
Orlando Magic Feb. 2008
Jan. 2038
$24,833,383
Raymond James
Stadium
Tampa,
Hillsborough
County, Nov.
1996
Tampa Bay
Buccaneers
Jan. 1997
Dec. 2026
$47,000,094
AMALIE Arena Tampa, Tampa
Bay Sports
Authority, July
1995
Tampa Bay
Lightning
Sept. 1995
Aug. 2025
$49,666,766
Tropicana Field St. Petersburg,
City of St.
Petersburg, July
1995
Tampa Bay Rays July 1995
June 2025
$50,000,100
Total: $370,000,740
State Incentives for Spring Training Facilities
Spring Training Baseball Franchises
The DEO may certify local governments to receive a distribution of $41,667 per month
($500,000 per year) for a period of up to 30 years.
7
The funds may be used to acquire, construct,
reconstruct, or renovate a facility for a baseball spring training franchise, pay debt service on
bonds issued for those purposes, or, in some instances, assist a spring training franchise in
moving from one local government to another.
8
The DEO is authorized to certify up to 10
facilities at any given time.
9
Retention of Spring Training Baseball Franchises
Local governments that partner with a spring training baseball franchise may apply for
certification from the DEO to receive state distributions for renovating or constructing a spring
7
Section 212.20(6)(d)6.b., F.S.
8
Section 288.11621(3), F.S.
9
Section 288.11621(2)(b), F.S. BILL: SB 1298 Page 4
training baseball facility.
10
Certified applicants receive a distribution from state sales tax revenue
of up to $83,333 per month for 20 years for a facility used by a single spring training baseball
franchise or up to $166,667 per month for 25 years for a facility used by more than one spring
baseball training franchise.
11
The amount of state incentive funding per certified applicant may
not exceed $20 million if the applicant’s facility is used by one franchise or $50 million if the
applicant’s facility is used by more than one franchise.
12
Sales and Use Tax
Florida levies a 6 percent sales and use tax on the sale or rental of most tangible personal
property,
13
admissions,
14
transient rentals,
15
and a limited number of services. Chapter 212, F.S.,
contains provisions authorizing 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.
Additionally, s. 212.20(6)(d)6, F.S., requires the Department of Revenue (DOR) to distribute
specified amounts on a monthly basis to applicants certified as a sports training facility,
applicants certified as the professional golf hall of fame, and applicants certified as a spring
training facility.
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.
16
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.
17
Counties may use up to $3 million annually of the local government half-cent sales tax for the
following purposes:
18
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.
19
10
Section 288.11631(1)-(2), F.S.
11
Section 212.20(6)(d)6.e., F.S.
12
Section 288.11631(2)(c), F.S.
13
Section 212.05(1)(a)1.a, F.S.
14
Section 212.04(b), F.S.
15
Section 212.03(1)(a), F.S.
16
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 Jan. 6, 2022).
17
Id.
18
Section 218.64(3), F.S.
19
The motorsports entertainment complex has had no applicants or funds dispersed since program inception. See Office of
Program Policy Analysis and Government Accountability, Report 20-08, Florida Economic Development Program
Evaluations-Year 8, p. 35 (Dec. 2020), available at https://oppaga.fl.gov/Documents/Reports/20-08.pdf (last visited Jan. 14,
2022). BILL: SB 1298 Page 5
III. Effect of Proposed Changes:
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
20
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.
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 may intervene to enforce the
provision should the governmental entity fail to timely enforce the provision.
The bill takes effect on July 1, 2022.
IV. Constitutional Issues:
A. Municipality/County Mandates Restrictions:
None.
B. Public Records/Open Meetings Issues:
None.
C. Trust Funds Restrictions:
None.
D. State Tax or Fee Increases:
None.
E. Other Constitutional Issues:
The First Amendment of the U.S. Constitution guarantees that “Congress shall make no
law…abridging the freedom of speech, or of the press; or the right of the people
peaceably to assemble, and to petition the Government for a redress of grievances.”
21
The
20
The bill defines a “sporting event” as any preseason, regular season, or postseason game or event of a professional sports
team.
21
Amend I, U.S. Const. BILL: SB 1298 Page 6
rights guaranteed by the First Amendment apply with equal force to state governments
through the due process clause of the Fourteenth Amendment.
22
The right of freedom of thought protected by the First Amendment against state action
includes both the right to speak freely and the right to refrain from speaking at all.
23
Speech that is mandated or compelled alters the content of speech.
24
A government
regulation based on the content of speech is presumptively invalid and will be upheld
only if it is necessary to advance a compelling governmental interest, precisely tailored to
serve that interest, and is the least restrictive means available for establishing that
interest.
25
The government bears the burden of demonstrating the constitutionality of any
such content-based regulation.
26
The U.S. Supreme Court rejected a private college’s argument that conditioning federal
funds on compliance with federal education law violated the First Amendment, finding
that “Congress is free to attach reasonable and unambiguous conditions to federal
financial assistance that educational institutions are not obligated to accept.”
27
However,
under the unconstitutional conditions doctrine, there is a limit on Congress’ ability to
place conditions on the receipt of funds.
28
“[T]he government ‘may not deny a benefit to
a person on a basis that infringes his constitutionally protected ... freedom of speech’
even if he has no entitlement to that benefit.”
29
SB 1298 prohibits a governmental entity 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 U.S. national anthem at the beginning of each team
sporting event.
V. Fiscal Impact Statement:
A. Tax/Fee Issues:
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.
22
Amend XIV, U.S. Const., See also Art. I, Fla. Const.
23
Wooley v. Maynard, 430 U.S. 705, 714 (1977). See also West Virginia State Board of Education v. Barnette, 319 U.S. 624
(1943).
24
Riley v. National Federation of the Blind of North Carolina, Inc., 487 U.S. 781, 795 (1988). See also Miami Herald
Publishing Co. v. Tornillo, 418 U.S. 241, 256-58 (1974).
25
Ashcroft v. Am. Civil Liberties Union, 521 U.S. 656-66 (2004).
26
Id. at 660.
27
Grove City College v. Bell, 465 U.S. 555, 575 (1984).
28
Rumsfeld v. Forum for Academic and Institutional Rights, Inc., 547 U.S. 47 (2006)
29
Board of Comm'rs, Wabaunsee Cty. v. Umbehr, 518 U. S. 668, 674 (1996). BILL: SB 1298 Page 7
B. Private Sector Impact:
None.
C. Government Sector Impact:
None.
VI. Technical Deficiencies:
None.
VII. Related Issues:
Currently, the DOR distributes specified amounts to certain recipients for facilities used by
sports teams. It is unclear, under the bill, if these required payments made by the DOR are
considered an agreement between a governmental entity and a professional sports team.
Additionally, it is unclear how the governmental entity would be notified of a default on the
agreement.
The bill provides that if a governmental entity fails to timely enforce the “failure to comply”
provision in the agreement, the Attorney General may step in to enforce the provision. However,
it is unclear what constitutes timely enforcement.
Neither the bill nor Chapter 286, F.S., define “governmental entity.”
VIII. Statutes Affected:
This bill creates section 286.31 of the Florida Statutes.
IX. Additional Information:
A. Committee Substitute – Statement of Changes:
(Summarizing differences between the Committee Substitute and the prior version of the bill.)
None.
B. Amendments:
None.
This Senate Bill Analysis does not reflect the intent or official position of the bill’s introducer or the Florida Senate.