Meeting Packet - Workforce Development & Tourism Subcommittee (Florida House, January 21, 2020)
Summary
Meeting packet of the Workforce Development & Tourism Subcommittee of the Florida House of Representatives for its meeting on January 21, 2020, at 12 HOB. The agenda lists HB 1011, Vacation Rentals, by Fischer, and HB 6057, Sports Development Program, by Avila. The staff analysis of HB 1011 states that the bill defines the term "advertising platform", requires users of advertising platforms to include certain licensure and tax identification information in a vacation rental listing, and preempts the regulation of vacation rentals to the state. It states that the bill will have a fiscal impact on state and local government. The bill text of HB 6057 includes a section stating that the act takes effect July 1, 2020.
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Workforce Development & Tourism
Subcommittee
Tuesday, January 21, 2020
3:00 PM - 5:00 PM
12 HOB
Meeting Packet
Jose Oliva Rene Plasencia
Speaker Chair
The Florida House of Representatives
Commerce Committee
Workforce Development & Tourism Subcommittee
Jose R. Oliva Rene Plasencia
Speaker Chair
Meeting Agenda
Tuesday, January 21, 2020
3:00 pm - 5:00 pm
12 HOB
I. Call to Order
11. Roll Call
Ill. Welcome and Opening Remarks
IV. Consideration of the following bill(s):
HB 1011 Vacation Rentals by Fischer
HB 6057 Sports Development Program by Avila
V. Closing Remarks
VI. Adjournment
317 House Office Building, 402 South Monroe Street, Tallahassee, FL 32399-1300
(850) 717-4870
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HOUSE OF REPRESENTATIVES STAFF ANALYSIS
BILL#: HB 1011 Vacation Rentals
SPONSOR(S): Fischer
TIED BILLS: IDEN./SIM. BILLS: SB 1128
REFERENCE ACTION ANALYST STAFF DIRECTOR or
BUDGET/POLICY CHIEF
1) Workforce Development & Tourism Subcommittee Willson /1W Barry »l:f.B
2) Government Operations & Technology
Appropriations Subcommittee
3) Commerce Committee
SUMMARY ANALYSIS
The Division of Hotels and Restaurants (Division) in the Department of Business and Professional Regulation
(DBPR) licenses and inspects vacation rentals within the state.
A vacation rental is classified as any unit or group of units in a condominium or cooperative or any individually or
collectively owned home, not a timeshare project, which is rented to guests more than three times in a calendar year
for periods of less than 30 days or 1 calendar month, or advertised to the public as a place regularly rented to
guests. The rental of individual rooms within a condominium unit or house is excluded from the licensure and
regulation of public lodging establishments by the Division.
Local governments may not prohibit vacation rentals or regulate the duration or frequency of such rentals. Local
regulations adopted before June 1, 2011, are not subject to this prohibition.
The bill:
• Defines the term "advertising platform".
• Requires that users of advertising platforms include certain licensure and tax identification information in a
vacation rental listing and provide certain information to the Division on a regular basis.
• Authorizes certain enforcement mechanisms relating to unlicensed activities.
• Preempts the regulation of advertising platforms to the state.
• Expressly preempts the regulation of vacation rentals, including their inspection and licensing, to the state.
• Prohibits local regulations which allow or require the inspection or licensing of vacation rentals.
• Clarifies that the bill does not supersede the statutory authority of condominiums, cooperatives, or
homeowners' associations to govern the use of their properties.
• Requires vacation rental operators to display licensing and tax information under certain circumstances.
The bill does not preempt local regulations affecting vacation rentals if the regulation applies uniformly to all
residential properties.
The bill will have a fiscal impact on state and local government. See Fiscal Analysis for more information.
Except as otherwise provided, the bill takes effect upon becoming law.
This document does not reflect the intent or official position of the bill sponsor or House of Representatives.
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DATE: 1/14/2020
FULL ANALYSIS
I. SUBSTANTIVE ANALYSIS
A. EFFECT OF PROPOSED CHANGES:
Present Situation
Vacation Rentals
The Division of Hotels and Restaurants (Division) within the Department of Business and Professional
Regulation (DBPR) is charged with enforcing the provisions of ch. 509, F.S., and all other applicable
laws relating to the inspection and regulation of public lodging establishments and public food service
establishments for the purpose of protecting the public health, safety, and welfare. DBPR licenses
vacation rentals within the state and has the power to inspect a licensed vacation rental. 1
Public lodging establishments are classified as a hotel, motel, vacation rental, nontransient apartment,
transient apartment, bed and breakfast inn, or timeshare project. 2
The term "public lodging establishments" includes transient and nontransient public lodging
establishments. 3 The principal differences between transient and nontransient public lodging
establishments are the number of times that the establishments are rented in a calendar year and the
length of the rentals.
The term "transient public lodging establishment" means any unit, group of units, dwelling, building, or
group of buildings within a single complex of buildings, which is rented to guests more than three times
in a calendar year for periods of less than 30 days or one calendar month, whichever is less, or which
is advertised or held out to the public as a place regularly rented to guests. 4
The term "vacation rental" means any unit or group of units in a condominium or cooperative or any
individually or collectively owned single-family, two-family, three-family, or four-family house or dwelling
unit that is also a transient public lodging establishment but that is not a timeshare project. 5
Section 509.013(4)(b)9., F.S., exempts living or sleeping facilities that do not fit within the classification
of a hotel, motel, timeshare project, vacation rental, nontransient apartment, bed and breakfast inn, or
transient apartment. Currently, the classification for "vacation rental" only applies to situations where
the entire unit or dwelling is offered for rent; therefore the rental of individual rooms within a
condominium unit or house is excluded from the licensure and regulation of public lodging
establishments by the Division. 6
Licensure
The Division is authorized to issue vacation rental licenses as follows:
• Single license: issued to an individual person or entity, but not a licensed agent, and may
include one single-family house or townhouse, or a unit or group of units within a single building
that are owned and operated by the same individual person or entity.
• Group license: issued to a licensed agent to cover all units within a building or group of
buildings in a single complex and only covers units held out to the public as a place regularly
rented to guests.
1
S. 509.241, F.S.
2
S. 509.242(1), F.S.
3
S. 509.013(4)(a), F.S.
4
S. 509.013(4)(a)I., F.S.
5
S. 509.242(1)(c), F.S.
6
DBPR, Agency Analysis of 2020 Senate Bill 1128, p.2 (Jan. 7, 2020). See also 18-06 Fla. Op.Att'y Gen.(2018).
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• Collective license: issued to a licensed agent who represents a collective group of houses or
units found on separate locations not to exceed 75 houses per license.7
Applicants for licensure must submit the appropriate application and required fee to the Division. The
license fees are based on the number of rental units in the establishment. A current license must be
conspicuously displayed in the office or lobby of the licensed establishment. 8 If no office or lobby is
present on the premises of the licensed establishment, the license must be readily available for
inspection upon request. 9
As of July 1, 2019, there were 47,337 public lodging establishments licensed by the Division. These
licenses are distributed as follows:
• Hotels: 2,056 licenses;
• Motels: 2,513 licenses;
• Non-transient apartments: 18,363 licenses;
• Transient apartments: 913 licenses;
• Bed and Breakfast Inns: 260 licenses;
• Vacation rental condominiums: 7,563 licenses;
• Vacation rental dwellings: 15,650 licenses; and
• Vacation rental timeshare projects: 19 licenses. 10
License Fees
The Division provides the following fee schedule relating to vacation rentals: 11
SINGLE UNIT $150 $10 $10 $170
2-25 $150 $20 $10 $180
26-50 $150 $35 $10 $195
51-100 $150 $50 $10 $210
101-200 $150 $75 $10 $235
201-300 $150 $105 $10 $265
301-400 $150 $135 $10 $295
401-500 $150 $160 $10 $320
OVER 500 $150 $190 $10 $350
Applicants for initial licensure are required to pay the full license fee if the application is made during, or
more than six months before, the annual renewal period. A half-year fee is authorized if such
application is made 6 months or less before the renewal period.
7
S. 509.241, F.S.
8
S. 509.241(3), F.S.
9
R. 61C-l.002(1), F.A.C.
10
DBPR, Division of Hotels and Restaurants Annual Report for FY 2018-2019,
http://www.myfloridalicense.com/dbpr/hr/reports/annualreports/documents/ar20l 8 19.pdf (last visited Jan. 13, 2020).
11
R. 61 C-1.008, F.A.C.
12
S. 509.302, F.S., establishes the Hospitality Education Program. All public lodging establishments and all public food service
establishments licensed under ch. 509, F.S., are required to pay an annual fee ofno more than $10, which shall be included in the
annual license fee and used for the sole purpose of funding the Hospitality Education Program.
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A $50 application fee is required when making the initial application or an application for change of
ownership.
Renewal fees are based upon the number of units under the license when the license was either issued
or last renewed, whichever is most recent.
A $50 delinquency fee is required to renew a delinquent license filed with the Division after the
expiration date.
Sanitation and Safety
Current law requires each public lodging establishment to meet requirements and standards relating to
sanitation and safety. 13 These requirements and standards apply to the following:
• Water, plumbing and waste;
• Public bathrooms (vacation rentals are exempt from this requirement);
• Towels;
• Glassware, tableware, and utensils (vacation rentals are exempt from federal and state
standards but must sanitize with household cleaning supplies and provide notice of such in
guest rooms);
• Kitchens;
• Ice making machines;
• Locking devices;
• Vermin control;
• Storage and labeling of toxic items;
• Structural components, attachments, and fixtures; and
• Attics, basements, boiler rooms, meter rooms, laundry rooms, and storage rooms.
Ventilation and Fire Safety
Each bedroom in a public lodging establishment must be properly ventilated with windows or
mechanical ventilation. 14 Specialized smoke detectors for the deaf and hearing-impaired must be made
available upon request by guests in transient public lodging establishments without charge. 15
In addition, smoke alarms must be installed in every living unit16 and automatic fire sprinklers may be
required in public lodging establishments if the rental units are located within a building with three or
more stories or greater than 75 feet in height. 17 All local fire authority requirements must be met.
Electrical wiring must be in good repair.
Conduct on Premises
The operator of a public lodging establishment is authorized to refuse accommodations or service to
undesirable guests. 18 Subject to proper notification, an operator may remove guests who:
• Illegally possess or deal controlled substances;
• Are intoxicated;
• Are profane, lewd, or brawling;
• Disturb the peace and comfort of other guests;
• Injure the reputation, dignity, or standing of the establishment;
• Fail to pay rent on time;
13
See generally s. 509.221, F.S., and R. 61C-1&3, F.A.C.
14
S. 509.221(3), F.S.
15
R. 61C-l.004, F.A.C.
16
S. 509.215(l)(b), F.S.
17
S. 509.215(1), F.S.
18
S. 509.142, F.S.
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• Fail to check out on time;
• Are generally detrimental to the establishment. 19
The admission to, or the removal from, a public lodging establishment cannot be based upon race,
creed, color, sex, physical disability, or national origin. 20
Violations for remaining or attempting to remain in an establishment after being requested to leave are
a second-degree misdemeanor, punishable as provided in ss. 775.082 or 775.083, F.S. 21
In addition, an operator is authorized to take a person into custody and detain that person for disorderly
conduct that creates a threat to the life or safety of the person or others. 22
Inspections
The Division is required to inspect all public lodging establishments as often as necessary for the
enforcement of the law and protection of the public health, safety and welfare. Each licensed public
lodging establishment must be inspected at least biannually (twice per year), except for transient and
non-transient apartments, which must be inspected at least annually. 23
Vacation rentals are not subject to this requirement, but must be available for inspection upon a request
by the Division. For inspection purposes, the licensee or operator must, upon request, meet the
inspector at the site of a specified establishment with keys to the licensed house or unit being
inspected. 24
Additionally, an applicant for a vacation rental license is required to submit with the license application
a signed certificate evidencing the inspection of all balconies, platforms, stairways, railings, and
railways from a person competent to conduct such inspections. 25
The Division also may inspect a vacation rental in response to a consumer complaint related to
sanitation issues or unlicensed activity. In Fiscal Year 2018-2019, the Division received 228 consumer
complaints related to vacation rentals, of which 14 were confirmed as a violation by the Division. 26
Registry
The licensee or operator must notify the Division of all houses or units represented in a license
application. Any time a change in the address or number of houses or units occurs, the licensee or
operator must notify the Division at least 60 days prior to the expiration date of the license. In addition,
a list of the included houses or units must be maintained in a written form for inspection by request. 27
Each operator of a transient public lodging establishment must maintain a register showing the dates
each rental unit was occupied by a guest as well as the rates charged to the occupants. This register
19
S. 509.141(1), F.S.
20
S. 509.141(1), F.S.
21
S. 509.141(3), F.S.
22
S. 509.143(1), F.S.
23
See generally s. 509.032, F.S., Rule 61C-l.002, F.A.C.
24 Id.
25 See ss. 509.211(3) and 509.2112, F.S., and form DBPR HR-7020, Division of Hotels and Restaurants Certificate of Balcony
Inspection, available at:
https://www.myfloridalicense.com/CheckListDetail.asp?SID=&xactCode=I030&clientCode=2007&XACT DEFN ID=7694 (last
visited Jan. 13, 2020).
26
DBPR, Division of Hotels and Restaurants Annual Report for FY 20/8-2019, at 21.
21 Id.
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must be maintained in chronological order and available for inspection by the Division at any time.
Operators must maintain two years of register data. 28
Violations
Any public lodging establishment found to be in violation of ch. 509, F.S., or rules adopted by the
Division, may be subject to administrative actions including the following penalties:
• Fines not to exceed $1,000 per offense; and
• Suspension, revocation, or refusal of a license. 29
Licensees with a single license are responsible for all violations of ch. 509, F.S., or rules adopted by
the Division. 30 The authorized agent of the licensee is responsible for a violation for licensees holding a
collective or group license if the dwelling or unit was listed under the agent or as otherwise reflected in
records filed with the Division. 31
Preemption Authority
Prior to June 1, 2011, local governments regulated vacation rentals (also referred to as resort dwellings
in many local ordinances). Local governments could restrict or prohibit vacation rentals up to, and
including, banning the use of residential properties as vacation rentals.
Legislation in 2011 preempted the authority to regulate vacation rentals to the state. 32 The preemption
prevented local governments from enacting any new law, ordinance, or regulation that:
• restricted the use of vacation rentals;
• prohibited vacation rentals; or
• regulated vacation rentals based solely on their classification, use, or occupancy.
The 2011 preemption did not apply to local regulations enacted on or before June 1, 2011.
Prior to the 2011 preemption, several municipalities had created regulations specifically relating to
vacation rentals. 33 As an example, one ordinance prohibited owners of single-family residences in
residential zones from renting their properties for durations of less than 30 days, although it
grandfathered certain vacation rentals that had already obtained all applicable state and local licenses
and permits. 34 Subsequent to the enactment of the 2011 legislation, the vacation rental market
experienced growth. 35
In 2014, the Legislature narrowed the scope of the preemption to preempt only those local regulations
which prohibit vacation rentals or regulate the duration or frequency of vacation rentals. 36
28
S. 509.101(2), F.S.
29
S. 509.261(1), F.S.
30 Id.
31 Id.
32
Ch. 2011-119, Laws ofFla., codified ins. 509.032(7), F.S.
33
See City of Venice Code of Ordinances, ch. 86, art. V, div. 9, s. 86-151. See also Monroe County Code, No. 004-1997 (2013); Bal
Harbour Village Code of Ordinances, s. 21-363.
34
City of Venice Code of Ordinances, ch. 86, art. V, div. 9, s. 86-151. See also City of Venice v. Gwynn, 76 So. 3d 401, 403 (Fla. 2nd
DCA 2011).
35
See Melissa Maynard, As Short-Terms Rentals Boom, Regulation an Issue, THE PEW CHARITABLE TRUST (June, 6, 2013),
http://www.pewtrusts.org/en/research-and-analys is/b logs/stateline/2013/06/06/as-shortterrns-rentals-boom-regulation-an-issue.
36
Ch. 2014-71, Laws of Fla., codified ins. 509.032(7)(b), F.S.
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Recent Activity
Homeowners found to be in conflict with ordinances regulating vacation rentals have taken legal action
against their respective local governments through the Bert J. Harris, Jr., Private Property Rights
Protection Act. 37 The act provides a cause of action for private property owners whose real property
has been inordinately burdened by a specific action of a governmental entity that may not rise to the
level of a "taking" under the State or Federal Constitutions. The inordinate burden can apply to either
an existing use of real property or a vested right to a specific use. 38
In November 2015, the City of Anna Maria passed and adopted Ordinance No. 15-807. This ordinance
provides a general framework for the regulation of vacation rentals, including maximum occupancy
requirements. According to the city's website, since April 2016, approximately 113 Bert Harris Act
claims citing Ordinance No. 15-807 amounting to approximately $38 million in damages have been
filed. 39
In March 2016, Miami Beach passed an ordinance making the fine for a first violation for a resident
caught renting short-term $20,000. Each subsequent fine increases by $20,000 and can be as high as
$100,000. Vacation/short-term rentals that are permitted in certain zoning districts of Miami Beach are
required to provide and conspicuously display the city-issued business tax receipt number and the
resort tax certificate number in every advertisement or listing of any type in connection with the rental of
the residential property. 40
In June 2018, it was reported that Miami Beach had issued $12.1 million in fines, only $174,000 of
which had been paid. Some owners were reported to have accumulated up to $60,000 in fines. 41
Condominiums, Cooperatives, and Homeowners' Associations
A condominium is a form of ownership of real property created pursuant to ch. 718, F.S., comprised of
units which may be owned by one or more persons but have an undivided share of access to common
facilities. 42 A condominium is created by recording a declaration in the public records of the county in
which the condominium will be located. 43 A declaration governs the relationships among condominium
unit owners and the condominium association. All unit owners are members of the condominium
association. The condominium association is overseen by an elected board of directors, commonly
referred to as a "board of administration." The association enacts condominium association bylaws
governing the administration of the association. The declaration as originally recorded or as amended
may include covenants and restrictions concerning the use, occupancy, and transfer of the units in the
association.
A cooperative is a form of property ownership created pursuant to ch. 719, F.S. The real property is
owned by the cooperative association, and individual units are leased to the residents who own shares
in the cooperative association. 44 The lease payment amount is the pro-rata share of the operational
expenses of the cooperative. Cooperatives operate similarly to condominiums and the laws regulating
cooperatives are similar in many ways. A cooperative is created using "cooperative documents" which
37
Kathy Prucnell, 2 more Holmes Beach Bert Harris claims proceed to courthouse, THE ISLANDER (Feb. 20, 2018),
https ://www.islander.org/2018/02/2-more-ho lmes-beach-bert-harris-claims-proceed-to-courthouse/.
38
S. 70.001, F.S.
39
CITY OF ANNA MARIA, Bert J. Harris, Jr., Private Property Rights Protection Act Claim Filings,
http://www.cityofannamaria.com/residents/bert harris claim.php (last visited Mar. 16, 2019).
40
See Miami Beach City Code, Sec. 142-1111 and 142-905(b).
41
Chabeli Herrera, Miami Beach has the country's highest short-term rental fines. It just got sued, MIAMI HERALD (June 28, 2018),
https://www.miamiherald.com/news/business/article213954174.html.
42 S. 718.103(11), F.S.
43
S. 718.104(2), F.S.
44 S. 719 .103(2)(26), F. S.
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include articles of incorporation of the association, bylaws, and the ground lease or other underlying
lease, if any. The documents may include restrictions, which affect the use of the property.
A homeowners' association (HOA) is an association of residential property owners where voting
membership consists of parcel owners, membership is a mandatory condition of parcel ownership, and
which may impose assessments that, if unpaid, can become a lien on the parcel. 45 Chapter 720, F.S.,
only regulates HOAs whose covenants and restrictions include mandatory assessments. Like a
condominium or cooperative, an HOA is administered by an elected board of directors. The powers and
duties of an HOA includes those provided in ch. 720, F.S., and contained in the governing documents
of the association. The governing documents include the recorded covenants and restrictions, bylaws,
articles of incorporation, and duly adopted amendments to those documents. The documents may
include restrictive covenants governing the use and occupancy of properties.
Based on these laws, condominium, cooperative, and homeowners' associations have enacted
provisions that govern the ability of the property owners to rent their properties. Certain condominium,
cooperative, and homeowners' associations have taken actions such as prohibiting owners from renting
their properties, restricting the duration of the rental term, or limiting the frequency owners are allowed
to rent their properties.
Effect of the Bill
Preemption
The bill amends s. 509.032(7), F.S., relating to the preemption of vacation rentals by the state.
The bill specifies that the regulation of vacation rentals and advertising platforms is preempted to the
state.
The bill does not preempt local regulations affecting vacation rentals if the regulation applies uniformly
to all residential properties, regardless of whether:
• the property is used as a vacation rental,
• the property is used as a long-term rental subject to chapter 83, or
• the property owner chooses not to rent the property.
The bill prohibits local regulations that allow or require the inspection or licensing of vacation rentals.
The bill also provides for the following legislative findings: that vacation rentals are residential in nature,
that residential property owners have a constitutionally protected right to use their property as a
vacation rental, and that vacation rentals are different from other types of public lodging and play a
unique and critical role in the state's tourism industry.
Advertising Platforms
Definition
The bill creates s. 509.013(17), F.S., defining the term "advertising platform" as a person who:
• Provides an online application, software, website, system, or print advertisement through which
a transient public lodging establishment located in this state is advertised or held out to the
public as available to rent for transient occupancy;
• Provides or maintains a marketplace for the renting by transient occupancy of a vacation rental;
or
• Provides a reservation or payment system that facilitates a transaction for the renting by
transient occupancy of a vacation rental and for which the person collects or receives, directly or
45
S. 720.301(9), F.S.
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indirectly, a fee in connection with the reservation or payment service provided for such
transaction.
The bill exempts a multiple listing service or an online or print advertisement for the rental of a transient
public lodging establishment by a licensed real estate broker or sales associate from the definition of
"advertising platform". The bill specifies, however, that a licensed real estate broker or sales associate
must comply withs. 509.243(3), F.S., relating to the removal of listings that fail to display valid license
numbers.
Platform Requirements
Effective January 1, 2021, the bill creates s. 509.243, F.S., requiring an advertising platform must:
• Require that a person who places an advertisement for a vacation rental include the license
number, applicable Florida sales tax registration, and tourist development tax account numbers,
and attest to the best of their knowledge that this information is correct.
• Provide to the Division on a quarterly basis, by file transfer protocol or electronic data exchange
file, a list of all vacation rental listings in this state on its platform specified information, including
the Internet address of the listing, the vacation rental license number, and applicable tax
numbers.
• Remove from public view an advertisement or listing from its online application, software,
website, or system within 15 business days after being notified by the Division in writing that the
subject advertisement or listing for the rental of a vacation rental located in this state fails to
display a valid license number issued by the Division.
If the Division has probably cause to believe that a person not licensed by the Division has violated ch.
509, F.S., the bill authorizes the Division to issue a notice to cease and desist and to enforce such a
notice by injunction or a writ of mandamus. If DBPR is required to seek enforcement of the notice for a
penalty pursuant to s. 120.569, F.S., 46 it is entitled to collect its attorney fees and costs, together with
any cost of collection.
Vacation Rental Operators
Effective January 1, 2021, the bill amends s. 509.241, F.S., to require the operator of a vacation rental
offered for transient occupancy through an advertising platform to display the vacation rental license
number and the applicable Florida sales tax registration and tourist development tax account numbers
under which such taxes must be paid for each rental of the property as a vacation rental.
Condominiums, Cooperatives, and Homeowners' Associations
The bill provides that it is not the Legislature's intent to supersede any current or future declaration or
declaration of condominium adopted pursuant to ch. 718, F.S., cooperative documents adopted
pursuant to ch. 719, F.S., or declaration of covenants or declaration adopted pursuant to ch. 720, F.S.
Except as otherwise provided, the bill takes effect upon becoming law.
B. SECTION DIRECTORY:
Section 1 Amends s. 509.013, F.S., defining the term "advertising platform".
Section 2 Amends s. 509.032, F.S., preempting the regulation of vacation rentals to the state;
providing legislative findings; authorizing a local law, ordinance, or regulation to regulate
certain activities under certain circumstances; prohibiting a local law, ordinance, or
46
Section 120.569, F.S., provides the administrative procedures for resolution of agency decisions which affect substantial interests
before the Division of Administrative Hearings.
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regulation from allowing or requiring inspections or licensing of vacation rentals;
preempting the regulation of advertising platforms to the state.
Section 3 Amends s. 509.241, F.S., requiring licenses issued by the Division to be displayed
conspicuously to the public inside the licensed establishment; and requiring the operator
of certain vacation rentals to also display its vacation rental license number and
applicable tax account numbers.
Section 4 Amends s. 509.242, F.S., revising the criteria for a public lodging establishment to be
classified as a vacation rental.
Section 5 Creates s. 509.243, F.S., requiring advertising platforms to require that persons placing
advertisements for vacation rentals include certain information in the advertisements;
providing that the advertising platform is not required to verify such information; requiring
each advertising platform to quarterly provide the Division with certain information
regarding vacation rentals in this state listed on the platform; requiring an advertising
platform to remove an advertisement or listing under certain conditions and within a
specified timeframe; authorizing the Division to issue and deliver a notice to cease and
desist for certain violations; providing that such notice does not constitute agency action
for which a certain hearing may be sought; authorizing the Division to file certain
proceedings; and authorizing the collection of attorney fees and costs under certain
circumstances.
Section 6 Provides for applicability.
Section 7 Provides for effective dates.
II. FISCAL ANALYSIS & ECONOMIC IMPACT STATEMENT
A FISCAL IMPACT ON STATE GOVERNMENT:
1. Revenues:
There may be an indeterminate increase in revenues due to additional license fees, tourism and
sales taxes, fees, and fines.
2. Expenditures:
According to DBPR, the bill will require an estimated expenditure of approximately $450,000
($412,000 recurring) for 6 new audit FTEs to administer the changes in the bill, especially the
changes relating to the licensing of individual room(s) and other types of hosted stays that were
previously unregulated by the Division. 47
47 DBPR, Agency Analysis of2020 Senate Bill 1128, p. 7 (Jan. 7, 2020).
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B. FISCAL IMPACT ON LOCAL GOVERNMENTS:
1. Revenues:
Preempting local governments from regulating vacation rentals will prevent a local government from
imposing and collecting fines relating to regulation and enforcement, which will have an
indeterminate effect on local revenues, depending on each local government's current practice of
vacation rental regulation and enforcement.
2. Expenditures:
None.
C. DIRECT ECONOMIC IMPACT ON PRIVATE SECTOR:
The bill will provide a more predictable and uniform regulatory framework for vacation rentals in Florida.
However, certain operators who offer hosted stays or individual room(s) within a larger dwelling or unit
will now be subject to regulation by the Division, including certain licensure and fee requirements.
D. FISCAL COMMENTS:
None.
Ill. COMMENTS
A CONSTITUTIONAL ISSUES:
1. Applicability of Municipality/County Mandates Provision:
Not applicable. The bill does not appear to require counties or municipalities to take an action
requiring the expenditure of funds, reduce the authority that counties or municipalities have to raise
revenue in the aggregate, nor reduce the percentage of state tax shared with counties or
municipalities.
2. Other:
None.
B. RULE-MAKING AUTHORITY:
The bill does not appear to create a need for rulemaking authority.
C. DRAFTING ISSUES OR OTHER COMMENTS:
Lines 111-113: "This sub-subparagraph paragraph does not apply to any local law, ordinance, or
regulation adopted on or before June 1, 2011." It is not clear what effect, if any, this grandfathering
clause will have if it is limited to sub-subparagraph 509.032(7)(a)2.c., F.S.
IV. AMENDMENTS/ COMMITTEE SUBSTITUTE CHANGES
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FLORIDA H O U S E 0 F REPRESENTATIVES
HB 1011 2020
1 A bill to be entitled
2 An act relating to vacation rentals; amending s.
3 509.013, F.S.; defining the term "advertising
4 platform"; amending s. 509.032, F.S.; preempting the
5 regulation of vacation rentals to the state; providing
6 legislative findings; authorizing a local law,
7 ordinance, or regulation to regulate certain
8 activities under certain circumstances; prohibiting a
9 local law, ordinance, or regulation from allowing or
10 requiring inspections or licensing of vacation
11 rentals; preempting the regulation of advertising
12 platforms to the state; amending s. 509.241, F.S.;
13 requiring licenses issued by the Division of Hotels
14 and Restaurants of the Department of Business and
15 Professional Regulation to be displayed conspicuously
16 to the public inside the licensed establishment;
17 requiring the operator of certain vacation rentals to
18 also display its vacation rental license number and
19 applicable tax account numbers; amending s. 509.242,
20 F.S.; revising the criteria for a public lodging
21 establishment to be classified as a vacation rental;
22 creating s. 509.243, F.S.; requiring advertising
23 platforms to require that persons placing
24 advertisements for vacation rentals include certain
25 information in the advertisements; providing that the
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26 advertising platform is not required to verify such
27 information; requiring each advertising platform to
28 quarterly provide the division with certain
29 information regarding vacation rentals in this state
30 listed on the platform; requiring an advertising
31 platform to remove an advertisement or listing under
32 certain conditions and within a specified timeframe;
33 authorizing the division to issue and deliver a notice
34 to cease and desist for certain violations; providing
35 that such notice does not constitute agency action for
36 which a certain hearing may be sought; authorizing the
37 division to file certain proceedings; authorizing the
38 collection of attorney fees and costs under certain
39 circumstances; providing applicability; providing
40 effective dates.
41
42 Be It Enacted by the Legislature of the State of Florida:
43
44 Section 1. Subsection (17) is added to section 509.013,
45 Florida Statutes, to read:
46 509.013 Definitions.-As used in this chapter, the term:
47 ( 1 7) "Advertising platform" means a person who:
48 (a) Provides an online application, software, website,
49 system, or print advertisement through which a transient public
50 lodging establishment located in this state is advertised or
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51 held out to the public as available to rent for transient
52 occupancy;
53 (b) Provides or maintains a marketplace for the renting by
54 transient occupancy of a vacation rental; or
55 (c) Provides a reservation or payment system that
56 facilitates a transaction for the renting by transient occupancy
57 of a vacation rental and for which the person collects or
58 receives, directly or indirectly, a fee in connection with the
59 reservation or payment service provided for such transaction.
60
61 The term does not include the multiple listing service or an
62 online or print advertisement of a transient public lodging
63 establishment by a real estate broker or sales associate
64 licensed under chapter 475; however, a real estate broker or
65 sales associate licensed under chapter 475 must comply withs.
66 509.243(3).
67 Section 2. Subsection (7) of section 509.032, Florida
68 Statutes, is amended to read:
69 509.032 Duties.-
70 (7) PREEMPTION AUTHORITY.-
71 (a) Public lodging establishments and public food service
72 establishments.-
73 l. Preemption.-The regulation of public lodging
74 establishments, including vacation rentals, and public food
75 service establishments, including, but not limited to,
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76 sanitation standards, inspections, training and testing of
77 personnel, and matters related to the nutritional content and
78 marketing of foods offered in such establishments, is preempted
79 to the state. This subparagraph paragraph does not preempt the
80 authority of a local government or local enforcement district to
81 conduct inspections of public lodging and public food service
82 establishments for compliance with the Florida Building Code and
83 the Florida Fire Prevention Code, pursuant toss. 553.80 and
84 633.206.
85 ~-te+- Vacation rentals.-
86 a. The Legislature finds that:
87 (I) Property owners who choose to use their property as a
88 vacation rental have constitutionally protected property rights
89 and other rights that must be protected, including the right to
90 use their residential property as a vacation rental;
91 (II) Vacation rentals play a significant, unique, and
92 critical role in this state's tourism industry, and that role is
93 different from other types of public lodging establishments;
94 (III) There are factors unique to the ownership and
95 operation of a vacation rental; and
96 (IV) Vacation rentals are residential in nature, a
97 residential use, and thus permitted in residential
98 neighborhoods.
99 b. Except as provided under this subparagraph, the
100 regulation of vacation rentals, including inspection and
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101 licensing, is expressly preempted to the state.
102 c. A local law, ordinance, or regulation may regulate
103 activities that arise when a property is used as a vacation
104 rental if the law, ordinance, or regulation applies uniformly to
105 all residential properties without regard to whether the
106 property is used as a vacation rental as defined ins. 509.242,
107 the property is used as a long-term rental subject to chapter
108 83, or the property owner chooses not to rent the property.
109 However, a local law, ordinance, or regulation may not prohibit
110 vacation rentals or regulate the duration or frequency of rental
111 of vacation rentals. This sub-subparagraph paragraph does not
112 apply to any local law, ordinance, or regulation adopted on or
113 before June 1, 2011.
114 d. A local law, ordinance, or regulation may not allow or
115 require the inspection or licensing of vacation rentals.
116 ~+et- This subparagraph paragraph (b) does not apply to
117 any local law, ordinance, or regulation exclusively relating to
118 property valuation as a criterion for vacation rental if the
119 local law, ordinance, or regulation is required to be approved
120 by the state land planning agency pursuant to an area of
121 critical state concern designation.
122 (b) Advertising platforms.-The regulation of advertising
123 platforms is preempted to the state and shall be regulated under
124 this chapter.
125 Section 3. Effective January 1, 2021, subsection (3) of
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126 section 509.241, Florida Statutes, is amended to read:
127 509.241 Licenses required; exceptions.-
128 (3) DISPLAY OF LICENSE.-Any license issued by the division
129 must shall be conspicuously displayed to the public inside ±ft
130 the office or lobby of the licensed establishment. Public food
131 service establishments that which offer catering services must
132 shall display their license number on all advertising for
133 catering services. The operator of a vacation rental offered for
134 transient occupancy through an advertising platform must also
135 display the vacation rental license number and the applicable
136 Florida sales tax registration and tourist development tax
137 account numbers under which such taxes must be paid for each
138 rental of the property as a vacation rental.
139 Section 4. Paragraph (c) of subsection (1) of section
140 509.242, Florida Statutes, is amended to read:
141 509.242 Public lodging establishments; classifications.-
142 (1) A public lodging establishment shall be classified as
143 a hotel, motel, nontransient apartment, transient apartment, bed
144 and breakfast inn, timeshare project, or vacation rental if the
145 establishment satisfies the following criteria:
146 (c) Vacation rental.-A vacation rental is a afi-:t unit or
147 group of units in a condominium or cooperative or in an afi-:t
148 individually or collectively owned single-family, two-family,
149 three-family, or four-family house or dwelling unit that is also
150 a transient public lodging establishment but that is not a
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151 timeshare project.
152 Section 5. Effective January 1, 2021, section 509.243,
153 Florida Statutes, is created to read:
154 509.243 Advertising platforms.-
155 (1) (a) An advertising platform must require that a person
156 who places an advertisement for the rental of a vacation rental:
157 1. Include in the advertisement the vacation rental
158 license number and the applicable Florida sales tax registration
159 and tourist development tax account numbers under which such
160 taxes must be paid before the advertisement may be listed; and
161 2. Attest to the best of their knowledge that the license
162 number for the vacation rental property and the applicable tax
163 numbers are current, valid, and accurately stated in the
164 advertisement.
165 (b) An advertising platform must display the license
166 number and applicable Florida sales tax registration and tourist
167 development tax numbers, but the advertising platform is not
168 required to verify such information.
169 (2) An advertising platform must provide to the division
170 on a quarterly basis, by file transfer protocol or electronic
171 data exchange file, a list of all vacation rental listings in
172 this state on its platform and all of the following information
173 for each listing:
174 (a) The uniform resource locator for the Internet address
175 of the listing.
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176 (b) The vacation rental license number provided by the
177 owner or operator.
178 (c) The applicable Florida sales tax registration and
179 tourist development tax numbers under which taxes will be
180 remitted for rentals commenced through the advertisement.
181 (3) An advertising platform must remove from public view
182 an advertisement or listing from its online application,
183 software, website, or system within 15 business days after being
184 notified by the division in writing that the subject
185 advertisement or listing for the rental of a vacation rental
186 located in this state fails to display a valid license number
187 issued by the division.
188 (4) If the division has probable cause to believe that a
189 person not licensed by the division has violated this chapter,
190 or any rule adopted pursuant thereto, the division may issue and
191 deliver to such person a notice to cease and desist from the
192 violation. The issuance of a notice to cease and desist does not
193 constitute agency action for which a hearing under ss. 120.569
194 and 120.57 may be sought. For the purpose of enforcing a cease
195 and desist notice, the division may file a proceeding in the
196 name of the state seeking the issuance of an injunction or a
197 writ of mandamus against any person who violates any provision
198 of the notice. If the department is required to seek enforcement
199 of the notice for a penalty pursuant to s. 120.569, it is
200 entitled to collect its attorney fees and costs, together with
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201 any cost of collection.
202 Section 6. The Legislature does not intend for the
203 application of this act to supersede any current or future
204 declaration or declaration of condominium adopted pursuant to
205 chapter 718, Florida Statutes, cooperative documents adopted
206 pursuant to chapter 719, Florida Statutes, or declaration of
207 covenants or declaration adopted pursuant to chapter 720,
208 Florida Statutes.
209 Section 7. Except as otherwise expressly provided in this
210 act, this act shall take effect upon becoming a law.
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HOUSE OF REPRESENTATIVES STAFF ANALYSIS
BILL #: HB 6057 Sports Development Program
SPONSOR(S): Avila
TIED BILLS: IDEN./SIM. BILLS:
REFERENCE ACTION ANALYST STAFF DIRECTOR or
BUDGET/POLICY CHIEF
1) Workforce Development & Tourism
Subcommittee
Willson M.'1J Barry IV\:f9
2) Ways & Means Committee
3) Commerce Committee
SUMMARY ANALYSIS
The Sports Development Program (Program) provides state funding for constructing, reconstructing,
renovating, or improving professional sports facilities, as provided under s. 288.11625, F.S. The Program is
administered by the Department of Economic Opportunity (DEO). In order to receive funding under the
Program, DEO must first recommend the applicant's request for funding to the Legislature and receive
approval, then certify the approved request for funding as an annual distribution amount to the Department of
Revenue.
The Program is funded by state sales and use tax revenues. Individual facilities may receive up to $3 million
annually, and no more than $13 million can be distributed under the Program in a single year. A facility can
receive distributions for up to 30 years and up to $90 million per certified facility.
The professional sport franchises that can participate in the program include the National Football League, the
National Hockey League, the National Basketball League, Major and Minor League Baseball, Major League
Soccer, the North American Soccer League, the Professional Rodeo Cowboys Association, the promoter or
host of a signature event administered by the Breeders' Cup Limited or the promoter of a signature event
hosted by the National Association of Stock Car Auto Racing (NASCAR).
The Legislature created the Sports Development Program in 2014. To date, no facilities or applicants have
been approved to receive funding and no distributions have been made under the Program.
The bill repeals s. 288.11625, F.S., eliminating the Sports Development Program, and updates a number of
related sections to conform with the elimination of the Program.
The bill takes effect July 1, 2020.
This document does not reflect the intent or official position of the bill sponsor or House of Representatives.
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FULL ANALYSIS
I. SUBSTANTIVE ANALYSIS
A. EFFECT OF PROPOSED CHANGES:
Current Situation
Florida Sports and Facilities
Florida is home to many professional and semi-professional sports teams, organizations and facilities,
including professional football, basketball, baseball, hockey, and soccer teams, National Association of
Stock Car Racing (NASCAR) sanctioned tracks, and professional equestrian and rodeo events.
Generally, team facilities are located on property leased by or purchased from local governments.
The following table provides basic information about Florida's 10 professional sports franchises and
their facilities:
Fraaeh.ise ~{\( Ji'adlity
Miami Dolphins Football NFL Hard Rock 1987 Miami-Dade
Stadium
( originally Joe
Robbie Stadium)
Tampa Bay Football NFL 1976 Raymond James 1998 Hillsborough
Buccaneers Stadium
Miami Heat Basketball NBA 1988 American 1999 Miami-Dade
Airlines Arena
Orlando Ma ic Basketball NBA 1989 Amwa Center 2010 Oran e
Tampa Bay Hockey NHL 1992 Amalie Arena 1996 Hillsborough
Lightning (previously
Tampa Bay
Times Forum)
Florida Panthers Hockey NHL 1993 BB&T Center 1998 Broward
Miami Marlins Baseball MLB 1993 Marlins Park 2012 Miami-Dade
Jacksonville Football NFL 1995 EverBank Field 1995 Duval
Ja uars
Tampa Bay Rays Baseball MLB 1998 Tropicana Field 1990 Pinellas
(occupied by
Rays since 1998)
Orlando City Soccer MLS 2015 Orlando City 2017 Orange
Soccer Club/ Stadium
"Lions"
In addition to the 10 major professional sports teams, Florida is also home to the MLB's Spring Training
Grapefruit League, with 15 teams holding preseason training and exhibition games in the state. 1
State Incentives for Professional Sports Franchises
Professional Sports Franchise Program
The Professional Sports Franchise program allows professional sports franchises in Florida to receive
state sales and use tax revenue to pay for the construction or renovation of a facility for a new or
1 For general information related to professional sports in Florida, see Florida Sports Foundation at
http://www.flasports.com/ (last visited Jan. 16, 2020).
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retained professional sports franchise. 2 Local governments, non-profit, and for-profit entities may apply
to the program. Approved applicants are eligible to receive up to $2,000,004 per year for a period of up
to 30 years. 3 No more than eight facilities can be certified under this program at one time. 4
Currently, eight facilities receive distributions under the Professional Sports Franchise Program. Each
facility is currently 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:
Tu-.f:"
payments as
•fFeb. •ft
Hard Rock Stadium Miami, Miami 06/1994 99 year $51,333,436
(formerly Sun Life, S. FL. Stadium Corp., Marlins5 06/2023 land lease,
Land Shark, Dolphin, May 1993 issued
Pro Player, Joe Robbie) 1987
TIAA Field (previously Jacksonville, Jacksonville 06/1994 2030 $49,500,099
EverBank Field) City of Jacksonville, Jaguars 05/2024
April 1994
Tropicana Field St. Petersburg, Tampa Bay 07/1995 2027 $47,333,428
City of St. Petersburg, Rays 06/2025
May 1995
Amelie Arena Tampa, Tampa Bay 09/1995 2025 $47,000,094
(previously Tampa Bay Tampa Bay Sports Lightning 08/2025
Times Forum) Authority,
July 1995
BB&T Center Sunrise, Florida 08/1996 2028 $45,166,757
Broward County, Panthers 07/2026
June 1996
Raymond James Tampa, Tampa Bay 01/1997 2028 $44,333,422
Stadium Hillsborough County, Buccaneers 12/2026
November 1996
American Airlines Miami, Miami Heat 03/1998 2030 $41,833,417
Arena BPL, LTD, 03/2028
February 1998
Amway Center Orlando, Orlando 02/2008 2036 $22,166,711
City of Orlando, Magic 01/2038
November 2007
TOTAL: $348,667,364
6 7
(Information from the Department of Revenue and OPPAGA )
SQorts DeveloQment Program
Section 288.11625, F.S., allows for distributions of state sales and use tax revenue pursuant to s.
212.20, F.S., to fund professional sports franchise facilities. The Department of Economic Opportunity
2 S. 288.1162, F.S.
3 S. 212.20(6)(d)6.b., F.S.
4
S. 288.1162(6), F.S.
5 The Marlins franchise relocated from Sun Life Stadium to Marlins Park in 2012.
6 Email from Lynne Moeller, Office of Legislative & Cabinet Services, Department of Revenue, Pro Sports summary by
fiscal year as of 2-28-19 (Feb. 19, 2019).
7 OPPAGA, Report No. 17-13, Florida Economic Development Program Evaluations-Year 5, p. 56 (Dec. 28, 2017).
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(DEO) administers the Program and is responsible for screening applicants8 for state funding. The
purpose of the Program is to provide state funding for the construction, reconstruction, renovation, or
improvement of a sports facility, 9 the proposed acquisition of land to construct a new facility, and
construction of improvements to state-owned land necessary for the efficient use of the facility.
General Application and Approval Process
DEO accepts applications between June 1 and November 1 each year. Within 60 days of receiving a
completed application, DEO is required to evaluate the application and notify the applicant in writing of
their decision to recommend or deny approval. DEO provides the Legislature with a list of the
recommended applicants, ranked in the order of the project's likelihood to positively impact the state.
To receive funding, an application must be approved by the Legislature in a conforming bill or general
law approved by the Governor, and DEO must certify the applicant and its approved request for funding
and notify the Department of Revenue (DOR) of the initial certification and distribution amount.
An applicant remains certified for 30 years or the length of the agreement between the beneficiary 10
and the local government that owns the facility or the property on which the facility is or will be located,
whichever is less.
DEO may only recommend one distribution per applicant, facility or beneficiary. Furthermore, no facility
or beneficiary can receive more than one distribution under s. 212.20, F.S., for any state-administered,
sports-related program. 11 An exception exists for applicants who can show that the beneficiary that was
the subject of a previous distribution under s. 212.20, F.S., no longer plays at the facility that is the
subject of the application under the new program.
"Special" Application Process for New Facilities or Projects Commenced Before July 1, 2014 12
Section 288.11625( 11), F. S., provides for an alternative application process to receive state funding
under the Program. Under this process, the Legislative Budget Commission (LBC) can approve
applications for new facilities or projects that commenced between March 1, 2013, and July 1, 2014,
and such applicants are not subject to the competitive evaluation and ranking component. An applicant
certified under the special application process remains subject to other provisions and requirements
under the Program.
Distribution of State Funds
8 Section 288.11625(2), F.S. An "Applicant'' is a unit of local government which is responsible for the construction,
management, or operation of a facility; or an entity that is responsible for the construction, management, or operation of a
facility if a unit of local government holds title to the underlying property on which the facility is located.
9
Id. A "Facility" is a structure, and its adjoining parcels of local-government-owned land, primarily used to host games or
events held by a beneficiary and does not include any portion used to provide transient lodging.
10 Id. A "Beneficiary" is a professional sports franchise of the NFL, NHL, NBA, the National League or American League of
MLB, Minor League Baseball, MLS, the North American Soccer League (NASL), the Professional Rodeo Cowboys
Association (PRCA), the promoter or host of a signature event administered by Breeders' Cup Limited, or the promoter of
a signature event sanctioned by the National Association for Stock Car Auto Racing (NASCAR). A beneficiary may also
be an applicant under this program.
11 Such sports-related programs include Professional Sports Franchises (s. 288.1162, F.S.), Spring Training Baseball
Franchises (s. 288.11621, F.S.), Sports Development (s. 288.11625, F.S.), and Retention of MLB Spring Training
Franchises (s. 288.11631, F.S.). However, if an applicant for the Sports Development Program is already receiving
distributions under the Professional Sports Franchises Program (s. 288.1162, F.S.) for the same facility or beneficiary, the
applicant is eligible for an additional distribution of up to $1 million if the total project cost exceeds $100 million.
12 DEO Memorandum, Re Sports Development Statute, http://www.floridajobs.org/docs/default-source/division-of-
strategic-business-developmenUsports-development-program/sports-development-statute-memo.pdf?sfvrsn=6 (last
visited Jan. 16, 2020).
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The amount that an applicant may receive is based on 75 percent of the average annual new
incremental state sales taxes generated by sales at the facility. Such annual distribution are limited by
the following tiered system:
• If the total project cost is $200 million or greater, the annual distribution amount may be up to $3
million.
• If the total project cost is at least $100 million, but less than $200 million, the annual distribution
amount may be up to $2 million.
• If the total project cost is at least $30 million, but less than $100 million, the annual distribution
amount may be up to $1 million.
DEO is required to consult with DOR and the Office of Economic and Demographic Research (EDR) to
develop a standard calculation for estimating the average annual new incremental state sales taxes
generated by sales at the facility.
Use of Funds
Once certified, applicants may use Sports Development Program funds for the following purposes:
• Constructing, reconstructing, renovating, or improving a facility or reimbursing such costs;
• Paying or pledging for the payment of debt service on bonds issued for the construction or
renovation of a facility;
• Funding debt service reserve funds, arbitrage rebate obligations, or other amounts payable with
respect thereto on bonds issued for the construction or renovation of a facility; and
• Reimbursing the costs associated with debt service payments or refinancing of bonds issued for
the construction or renovation of a facility.
Contract
Certified applicants must enter into a contract with DEO that:
• Specifies the terms of the state's investment;
• States the criteria that the certified applicant must meet in order to remain certified;
• Requires the applicant to submit the independent analyses required by the Program;
• Specifies information that the certified applicant must report to DEO; and
• Includes any provisions deemed prudent by DEO.
The contract must also require the applicant to reimburse the state, after all distributions have been
made, any amount by which the total distributions made under the program exceed actual new
incremental state sales taxes generated by sales at the facility during the contract. Reimbursements
due to the state must be made within 90 days after the last distribution. If the applicant is unable or
unwilling to reimburse the state, DEO may place a lien on the applicant's facility. If the applicant is a
municipality or county, it may reimburse the state from its half-cent sales tax allocation.
Repayment of Distributions
A certified applicant may be required to repay distributions if:
• An applicant's beneficiary breaks the terms of its agreements and relocates, or no longer
occupies or uses the facility as the facility's primary tenant. The beneficiary is required to
reimburse the state for such distributed funds, plus a five percent penalty, if the beneficiary
relocates before the agreement expires.
• DEO determines that the applicant submitted false, misleading, deceptive, or otherwise untrue
information. As above, the applicant is required to reimburse the state, plus a five percent
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penalty. Applicants that are a municipality or a county may reimburse the state from their half-
cent sales tax allocation.
Applicant History under the Sports Development Program
To date, no applicants have been certified and no funds have been distributed under the Program.
In FY14-15, DEO received four applications: the City of Jacksonville, the City of Orlando, Daytona
International Speedway, LLC, and South Florida Stadium, LLC. All applicants qualified for the "special"
application process.
In FY15-16, DEO received four applications: Buccaneers Football Stadium Limited Partnership, the City
of Jacksonville, Daytona International Speedway, LLC, and South Florida Stadium, LLC. The
Buccaneers application was incomplete and not transmitted to the Legislature, the other applications
qualified for the special application process.
In FY 16-17, DEO received one application, from Buccaneers Stadium, LLC. DEO reviewed the
application under the "general" application process.
DEO did not receive any applications in FY 17-18. 13
Sales and Use Tax
Chapter 212, F.S., contains the state's statutory 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. A 6 percent sales and use tax is levied on tangible personal property
and a limited number of services. Additionally, s. 212.20, F.S., contains statutory direction for the
schedule of distributions approved pursuant toss. 288.1162 and 288.11625, F.S.
Local Government Half-cent Sales Tax (Section 218.64, F.S.)
Authorized in 1982, the Local Government Half-cent Sales Tax Program generates the largest amount
of revenue for local governments among the state-shared revenue sources currently authorized by the
Legislature. 14 It distributes a portion of state sales tax revenue via three separate distributions to eligible
county or municipal governments. Additionally, the program distributes a portion of communications
services tax revenue to eligible local 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. 15
Municipalities are authorized to spend their portion of the local government half-cent sales tax for:
• municipality-wide programs,
• reimbursing the state as required by the Sports Development Program, or
• municipality-wide property tax or municipal utility tax relief.
Counties are authorized to spend their portion of the local government half-cent sales tax for
countywide tax relief or countywide programs. Subject to certain conditions, counties may also use up
to $3 million annually of the local government half-cent sales tax for the following purposes:
• new or retained professional sports franchises under s. 288.1162, F.S. or a spring training
franchise under s. 288.11621, F.S.
• a certified applicant as a motorsport entertainment complex under s. 288.1171, F.S., or
• reimbursing the state as required by the Sports Development Program.
13 Email from Karis Lockhart, Deputy Director of Legislative Affairs, Department of Economic Opportunity, RE: Sports
Development Program information (Feb. 13, 2019).
14 Ch. 82-154, Laws of Fla.
15 EDR, 2018 Local Government Financial Information Handbook (September 2018), p. 55.
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Additionally, counties and municipalities are authorized to pledge proceeds of the local government
half-cent sales tax for the payment of principal and interest on any capital project.
Economic Development Programs Evaluation
Section 288.0001, F.S., requires EDR and OPPAGA to include the Sports Development Program
among the list of economic development programs scheduled to be reviewed and analyzed by January
1, 2018, and every three years thereafter. As no applicants have been certified under the Program and
no funds have been distributed, neither OPPAGA16 nor EDR 17 was able to review and analyze the
Program in its first three-year reporting cycle.
Effect of Proposed Changes
The bill repeals s. 288.11625, F.S., eliminating the Sports Development Program, and updates a
number of related sections, conforming to the elimination of the Program.
The bill takes effect July 1, 2020.
B. SECTION DIRECTORY:
Section 1 Repeals s. 288.11625, F.S., relating to the Sports Development Program.
Section 2 Amends s. 212.20, F.S., conforming provisions to changes made by the act.
Section 3 Amends s. 212.205, F.S.; conforming a cross-reference.
Section 4 Amends s. 218.64, F.S.; conforming provisions to changes made by the act.
Section 5 Amends s. 288.0001, F.S.; conforming provisions to changes made by the act.
Section 6 Provides for an effective date.
II. FISCAL ANALYSIS & ECONOMIC IMPACT STATEMENT
A. FISCAL IMPACT ON STATE GOVERNMENT:
1. Revenues:
None.
2. Expenditures:
None.
8. FISCAL IMPACT ON LOCAL GOVERNMENTS:
1. Revenues:
None.
2. Expenditures:
16 OPPAGA, Report No. 17-13, Florida Economic Development Program Evaluations-Year 5, p. 45 (Dec. 28, 2017).
17
EDR, Return on Investment for the Florida Sports Foundation Grants and Related Programs, p. 1 (Jan. 1, 2018).
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None.
C. DIRECT ECONOMIC IMPACT ON PRIVATE SECTOR:
Indeterminate. No state funding was authorized and no applicants were ever approved by the
Legislature under the program being repealed.
D. FISCAL COMMENTS:
None.
Ill. COMMENTS
A. CONSTITUTIONAL ISSUES:
1. Applicability of Municipality/County Mandates Provision:
Not applicable. The bill does not appear to affect county or municipal governments.
2. Other:
None.
B. RULE-MAKING AUTHORITY:
The bill does not appear to create the need for rulemaking or rulemaking authority.
C. DRAFTING ISSUES OR OTHER COMMENTS:
None.
IV. AMENDMENTS/ COMMITTEE SUBSTITUTE CHANGES
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FLORIDA H O U S E 0 F REPRESENTATIVES
HB 6057 2020
1 A bill to be entitled
2 An act relating to the Sports Development Program;
3 repealing s. 288.11625, F.S., relating to the Sports
4 Development Program; amending ss. 212.20, 212.205,
5 218.64, and 288.0001, F.S.; conforming provisions to
6 changes made by the act; providing an effective date.
7
8 Be It Enacted by the Legislature of the State of Florida:
9
10 Section 1. Section 288.11625, Florida Statutes, is
11 repealed.
12 Section 2. Paragraph (d) of subsection (6) of section
13 212.20, Florida Statutes, is amended to read:
14 212.20 Funds collected, disposition; additional powers of
15 department; operational expense; refund of taxes adjudicated
16 unconstitutionally collected.-
17 (6) Distribution of all proceeds under this chapter and
18 ss. 202.18(l)(b) and (2)(b) and 203.0l(l)(a)3. is as follows:
19 (d) The proceeds of all other taxes and fees imposed
20 pursuant to this chapter or remitted pursuant to s. 202.18 (1) (b)
21 and ( 2) (b) shall be distributed as follows:
22 1. In any fiscal year, the greater of $500 million, minus
23 an amount equal to 4.6 percent of the proceeds of the taxes
24 collected pursuant to chapter 201, or 5.2 percent of all other
25 taxes and fees imposed pursuant to this chapter or remitted
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26 pursuant to s. 202. 18 ( 1) (b) and ( 2) (b) shall be deposited in
27 monthly installments into the General Revenue Fund.
28 2. After the distribution under subparagraph 1., 8.9744
29 percent of the amount remitted by a sales tax dealer located
30 within a participating county pursuant to s. 218.61 shall be
31 transferred into the Local Government Half-cent Sales Tax
32 Clearing Trust Fund. Beginning July 1, 2003, the amount to be
33 transferred shall be reduced by 0.1 percent, and the department
34 shall distribute this amount to the Public Employees Relations
35 Commission Trust Fund less $5,000 each month, which shall be
36 added to the amount calculated in subparagraph 3. and
37 distributed accordingly.
38 3. After the distribution under subparagraphs 1. and 2.,
39 0.0966 percent shall be transferred to the Local Government
40 Half-cent Sales Tax Clearing Trust Fund and distributed pursuant
41 to s. 218.65.
42 4. After the distributions under subparagraphs 1., 2., and
43 3., 2.0810 percent of the available proceeds shall be
44 transferred monthly to the Revenue Sharing Trust Fund for
45 Counties pursuant to s. 218.215.
46 5. After the distributions under subparagraphs 1., 2., and
47 3., 1.3653 percent of the available proceeds shall be
48 transferred monthly to the Revenue Sharing Trust Fund for
49 Municipalities pursuant to s. 218.215. If the total revenue to
50 be distributed pursuant to this subparagraph is at least as
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51 great as the amount due from the Revenue Sharing Trust Fund for
52 Municipalities and the former Municipal Financial Assistance
53 Trust Fund in state fiscal year 1999-2000, no municipality shall
54 receive less than the amount due from the Revenue Sharing Trust
55 Fund for Municipalities and the former Municipal Financial
56 Assistance Trust Fund in state fiscal year 1999-2000. If the
57 total proceeds to be distributed are less than the amount
58 received in combination from the Revenue Sharing Trust Fund for
59 Municipalities and the former Municipal Financial Assistance
60 Trust Fund in state fiscal year 1999-2000, each municipality
61 shall receive an amount proportionate to the amount it was due
62 in state fiscal year 1999-2000.
63 6. Of the remaining proceeds:
64 a. In each fiscal year, the sum of $29,915,500 shall be
65 divided into as many equal parts as there are counties in the
66 state, and one part shall be distributed to each county. The
67 distribution among the several counties must begin each fiscal
68 year on or before January 5th and continue monthly for a total
69 of 4 months. If a local or special law required that any moneys
70 accruing to a county in fiscal year 1999-2000 under the then-
71 existing provisions of s. 550.135 be paid directly to the
72 district school board, special district, or a municipal
73 government, such payment must continue until the local or
74 special law is amended or repealed. The state covenants with
75 holders of bonds or other instruments of indebtedness issued by
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76 local governments, special districts, or district school boards
77 before July 1, 2000, that it is not the intent of this
78 subparagraph to adversely affect the rights of those holders or
79 relieve local governments, special districts, or district school
80 boards of the duty to meet their obligations as a result of
81 previous pledges or assignments or trusts entered into which
82 obligated funds received from the distribution to county
83 governments under then-existing s. 550.135. This distribution
84 specifically is in lieu of funds distributed under s. 550.135
85 before July 1, 2000.
86 b. The department shall distribute $166,667 monthly to
87 each applicant certified as a facility for a new or retained
88 professional sports franchise pursuant to s. 288.1162. Up to
89 $41,667 shall be distributed monthly by the department to each
90 certified applicant as defined ins. 288.11621 for a facility
91 for a spring training franchise. However, not more than $416,670
92 may be distributed monthly in the aggregate to all certified
93 applicants for facilities for spring training franchises.
94 Distributions begin 60 days after such certification and
95 continue for not more than 30 years, except as otherwise
96 provided ins. 288.11621. A certified applicant identified in
97 this sub-subparagraph may not receive more in distributions than
98 expended by the applicant for the public purposes provided ins.
99 288.1162(5) ors. 288.11621(3).
100 c. Beginning 30 days after notice by the Department of
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101 Economic Opportunity to the Department of Revenue that an
102 applicant has been certified as the professional golf hall of
103 fame pursuant to s. 288.1168 and is open to the public, $166,667
104 shall be distributed monthly, for up to 300 months, to the
105 applicant.
106 d. Beginning 30 days after notice by the Department of
107 Economic Opportunity to the Department of Revenue that the
108 applicant has been certified as the International Game Fish
109 Association World Center facility pursuant to s. 288.1169, and
110 the facility is open to the public, $83,333 shall be distributed
111 monthly, for up to 168 months, to the applicant. This
112 distribution is subject to reduction pursuant to s. 288.1169. A
113 lump sum payment of $999,996 shall be made after certification
114 and before July 1, 2000.
115 e. The department shall distribute up to $83,333 monthly
116 to each certified applicant as defined ins. 288.11631 for a
117 facility used by a single spring training franchise, or up to
118 $166,667 monthly to each certified applicant as defined ins.
119 288.11631 for a facility used by more than one spring training
120 franchise. Monthly distributions begin 60 days after such
121 certification or July 1, 2016, whichever is later, and continue
122 for not more than 20 years to each certified applicant as
123 defined ins. 288.11631 for a facility used by a single spring
124 training franchise or not more than 25 years to each certified
125 applicant as defined ins. 288.11631 for a facility used by more
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126 than one spring training franchise. A certified applicant
127 identified in this sub-subparagraph may not receive more in
128 distributions than expended by the applicant for the public
129 purposes provided ins. 288.11631(3).
130 f. Beginning 45 days after notice by the Department of
131 Economic Opportunity to the Department of Revenue that an
132 applicant has been approved by the Legislature and certified by
133 the Department of Economic Opportunity under s. 288.11625 or
134 upon a date specified by the Department of Economic Opportunity
135 as provided under s. 288.11625(6) (d), the department shall
136 distribute each month an amount equal to one tr,,relfth of the
137 annual distribution amount certified by the Department of
138 Economic Opportunity for the applicant. The department may not
139 distribute more than $7 million in the 2014 2015 fiscal year or
140 more than $13 million annually thereafter under this sub
141 subparagraph.
142 !..:_~ Beginning December 1, 2015, and ending June 30, 2016,
143 the department shall distribute $26,286 monthly to the State
144 Transportation Trust Fund. Beginning July 1, 2016, the
145 department shall distribute $15,333 monthly to the State
146 Transportation Trust Fund.
147 7. All other proceeds must remain in the General Revenue
148 Fund.
149 Section 3. Section 212.205, Florida Statutes, is amended
150 to read:
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151 212.205 Sales tax distribution reporting.-By March 15 of
152 each year, each person who received a distribution pursuant to
153 s. 212.20(6) (d)6.b.-e. s. 212.20(6) (d)6.b. f. in the preceding
154 calendar year shall report to the Office of Economic and
155 Demographic Research the following information:
156 (1) An itemized accounting of all expenditures of the
157 funds distributed in the preceding calendar year, including
158 amounts spent on debt service.
159 (2) A statement indicating what portion of the distributed
160 funds have been pledged for debt service.
161 (3) The original principal amount and current debt service
162 schedule of any bonds or other borrowing for which the
163 distributed funds have been pledged for debt service.
164 Section 4. Subsection (2) and paragraph (c) of subsection
165 (3) of section 218.64, Florida Statutes, are amended to read:
166 218.64 Local government half-cent sales tax; uses;
167 limitations.-
168 (2) Municipalities shall expend their portions of the
169 local government half-cent sales tax only for municipality-wide
170 programs, for reimbursing the state as required pursuant to s.
171 288.11625, or for municipality-wide property tax or municipal
172 utility tax relief. All utility tax rate reductions afforded by
173 participation in the local government half-cent sales tax shall
174 be applied uniformly across all types of taxed utility services.
175 (3) Subject to ordinances enacted by the majority of the
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176 members of the county governing authority and by the majority of
177 the members of the governing authorities of municipalities
178 representing at least 50 percent of the municipal population of
179 such county, counties may use up to $3 million annually of the
180 local government half-cent sales tax allocated to that county
181 for any of the following purposes:
182 (c) Reimbursing the state as required under s. 288.11625.
183 Section 5. Paragraph (e) of subsection (2) of section
184 288.0001, Florida Statutes, is amended to read:
185 288.0001 Economic Development Programs Evaluation.-The
186 Office of Economic and Demographic Research and the Office of
187 Program Policy Analysis and Government Accountability (OPPAGA)
188 shall develop and present to the Governor, the President of the
189 Senate, the Speaker of the House of Representatives, and the
190 chairs of the legislative appropriations committees the Economic
191 Development Programs Evaluation.
192 (2) The Office of Economic and Demographic Research and
193 OPPAGA shall provide a detailed analysis of economic development
194 programs as provided in the following schedule:
195 (e) Beginning January 1, 2018, and every 3 years
196 thereafter, an analysis of the Sports Development Program
197 established under s. 288.11625.
198 Section 6. This act shall take effect July 1, 2020.
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