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 13 Y, 4 N Mwakyanjala Miller
Subcommittee
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.
This docum ent does not reflect the intent or official position of the bill sponsor or House of Representatives .
STORAGE NAME: h0499a.LAV
DATE: 1/25/2022
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: h0499a.LAV PAGE: 2
DATE: 1/25/2022
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 Hock ey League, and National Bask etball 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: h0499a.LAV PAGE: 3
DATE: 1/25/2022
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: h0499a.LAV PAGE: 4
DATE: 1/25/2022
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
None.
STORAGE NAME: h0499a.LAV PAGE: 5
DATE: 1/25/2022
Appendix A. Professional Sports Facilities for Major League Baseball, National Football League,
National Hockey League, and National Basketball Association Franchises.
Team/League Facility Location, Monthly First Payment Total Payments
Certified Entity, Distribution, & Final as of August 31,
& Certification Number of Payment 2020
Date Years Bonded,
& Total State
Payment
Florida BB&T Center Sunrise $166,667 August 1996 $47,833,429
Panthers NHL Broward County 30 years July 2026
June 1996 $60 million
Jacksonville TIAA Bank Field Jacksonville $166,667 June 1994 $52,166,771
Jaguars NFL City of 30 years May 2024
Jacksonville $60 million
April 1994
Miami Hard Rock Miami $166,667 June 1994 $54,000,108
Dolphins NFL Stadium South Florida 30 years June 2023
Stadium Corp. $60 million
May 1993
Miami Heat American Miami $166,667 March 1998 $44,500,089
NBA Airlines Arena Basketball 30 years March 2028
Properties, LTD $60 million
February 1998
Orlando Magic Amway Center Orlando $166,667 February 2008 $24,833,383
NBA City of Orlando 30 years January 2038
November 2007 $60 million
Tampa Bay Raymond Tampa $166,667 January 1997 $47,000,094
Buccaneers James Stadium Hillsborough 30 years December 2026
NFL County $60 million
November 1996
Tampa Bay AMALIE Arena Tampa $166,667 September $49,666,766
Lightning Tampa Bay 30 years 1995
NHLs Sports Authority $60 million August 2025
July 1995
Tampa Bay Tropicana Field St. Petersburg $166,667 July 1995 $50,000,100
Rays MLB City of St. 30 years June 2025
Petersburg $60 million
July 1995
Total: $370,000,740.00
STORAGE NAME: h0499a.LAV PAGE: 6
DATE: 1/25/2022
Appendix B. Spring Training Facilities for Major League Baseball Franchises.
Team Facility Location Monthly First Payment Total Team's Lease
Certified Distribution, & Final Payments as Expires
Entity, Number of Payment of August 31,
Certification Years 2020
Date, & Bonded, &
Certification Total State