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Meeting Packet - Workforce Development & Tourism Subcommittee (January 28, 2020)

Summary

A meeting packet for the Workforce Development & Tourism Subcommittee of the Florida House of Representatives Commerce Committee, Tuesday, January 28, 2020, with Rene Plasencia as Chair. The agenda lists HB 1369 Sports Franchises and Facilities by Pigman and PCB WTS 20-01, Intercollegiate Athlete Compensation and Rights. The staff analysis of HB 1369 states that the bill repeals Section 288.1162 and other sections of law on sports franchises, and requires that a lease or sale of public land to a sports franchise for a sports facility be at fair market value. The packet includes the text of PCB WTS 20-01, which provides that an athlete agent may represent an intercollegiate athlete in securing compensation for name, image, likeness, and persona.

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“Meeting Packet - Workforce Development & Tourism Subcommittee (January 28, 2020).” Archived at Pandemic Darlings, https://pandemicdarlings.com/source-documents/2020-01-28-3015-workforce-development-tourism-subcommittee-meeting-pac-aa212dfc94/, SHA-256 725a5ee488e3c68bdcb80004a673a489cc32c2cb77620cf13150663c95263486.

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      Workforce Development & Tourism
               Subcommittee
              Tuesday, January 28, 2020
                 3:30 PM - 6:30 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 28, 2020
                                     3:30 pm - 6:30 pm
                                           12 HOB

   I.   Call to Order

  II.   Roll Call

 Ill.   Welcome and Opening Remarks

IV.     Consideration of the following bill(s):

        HB 1369 Sports Franchises and Facilities by Pigman

        Consideration of the following proposed committee bill(s):

        PCB WTS 20-01 -- Intercollegiate Athlete Compensation and Rights

 V.     Closing Remarks

VI.     Adjournment




                    3 I 7 House Office Building, 402 South Monroe Street, Tallahassee, FL 32399-1300
                                                      (850) 717-4870
                                    HOUSE OF REPRESENTATIVES STAFF ANALYSIS
BILL#:      HB 1369 Sports Franchises and Facilities
SPONSOR(S): Pigman
TIED BILLS:       IDEN./SIM. BILLS:

    REFERENCE                                                          ACTION                 ANALYST             STAFF DIRECTOR or
                                                                                                                  BUDGET/POLICY CHIEF

    1) Workforce Development & Tourism Subcommittee                                           Willson   /1w'      Barry

    2) Ways & Means Committee

    3) Commerce Committee


                                                         SUMMARY ANALYSIS
Florida is home to many professional and semi-professional sports franchises. Generally, the facilities where
these franchises play are financed through local government-issued bonds, which are repaid using a
combination of state and local tax revenues and related incentive programs. The facilities are generally located
on land leased or purchased from local government.

The bill repeals the following sections of law:
• Section 288.1162, F.S., relating to Professional Sports Franchises,
• Section 288.11621, F.S., relating to Spring Training Baseball Franchises,
• Section 288.11625, F.S., relating to Sports Development,
• Section 288.11631, F.S., relating to Retention of MLB Spring Training Baseball Franchises, and
• Section 288.1171, F.S., relating to Motorsports Entertainment Complexes.

The bill prohibits the use of Tourist Development Tax or Convention Development Tax revenues to finance or
construct any aspect of a facility that is or will be used by a sports franchise after July 1, 2020.

The bill amends subsections 218.64(2) & (3), F.S., removing the authority for local governments to spend the
half-cent sales tax on a motorsport entertainment complex or for reimbursements under the sports
development program.

The bill creates s. 288.1163, F.S., providing for certain conditions relating to sports franchise facilities and
public land. Specifically, the bill:
• Prohibits a sports franchise from constructing or improving a facility on land that is leased from the state or
   local government.
• Requires that the lease or sale of public land to a sports franchise for a sports facility must be at fair market
   value.
• Specifies that a facility that is owned, operated or leased by a sports franchise is not tax exempt.
• Provides that any new or amended contract include a provision requiring the sports franchise to pay off any
   outstanding governmental debt in the event that the sports franchise stops using the facility.

The bill deletes subparagraph 125.35(1)(b)3., F.S., relating to the lease of professional sports franchise
facilities that are financed by certain tax revenues.

The bill specifies that lawful contracts entered into before July 1, 2020, will not be affected and that the
provisions of the bill will not be construed to impair existing contracts without the consent of the parties.

The bill may have an indeterminate fiscal impact on both the state and local governments.

The bill has an effective date of July 1, 2020.

This document does not reflect the intent or official position of the bill sponsor or House of Representatives.
STORAGE NAME: h1369.WTS.DOCX
DATE: 1/24/2020
                                                       FULL ANALYSIS

                                               I. SUBSTANTIVE ANALYSIS

    A. EFFECT OF PROPOSED CHANGES:
         State Incentives for Professional Sports Franchise Facilities

         Professional Sports Franchise Program (s. 288.1162, F.S.)

        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
        retained professional sports franchise. 1 Local governments, non-profit entities, 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. 2 No more than eight facilities can be certified under this program at one time. 3

        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:

           .'"~?!: .                            Location#              ,;:;;:···                       Lease

               Fac111ty name
                                           Certified~~.•
                                           Ce~~e                     Franchise
                                                                                   First Payment
                                                                                   Final:---.
                                                                                                    Expiration. ;l~payments
                                                                                                      Date      ,,;_.., Jan. 2020
       Hard Rock Stadium (formerly                Miami,               Miami          06/1994          99 yr,      $53,166,773
       Sun Life, Land Shark, Dolphin,     S. FL. Stadium Corp.,       Marlins 4       06/2023         issued
          Pro Player, Joe Robbie)                May 1993                                              1987
      TIAA Field (previously EverBank          Jacksonville,        Jacksonville      06/1994          2030        $51,333,436
                    Field)                 City of Jacksonville,      Jaguars         05/2024
                                                April 1994

              Tropicana Field                St. Petersburg,        Tampa Bay         07/1995          2027        $49,166,765
                                         City of St. Petersburg,      Rays            06/2025
                                                May 1995
         Amelie Arena (previously                Tampa,             Tampa Bay         09/1995          2025        $48,833,431
         Tampa Bay Times Forum)         Tampa Bay Sports Auth.,      Lightning        08/2025
                                                July 1995

                BB&T Center                      Sunrise,             Florida         08/1996          2028        $47,000,094
                                            Broward County,          Panthers         07/2026
                                                June 1996
          Raymond James Stadium                   Tampa,            Tampa Bay         01/1997          2028        $46,166,759
                                          Hillsborough County,      Buccaneers        12/2026
                                             November 1996
          American Airlines Arena                 Miami,            Miami Heat        03/1998          2030        $43,666,754
                                                 BPL, LTD,                            03/2028
                                              February 1998
               Amway Center                      Orlando,             Orlando         02/2008          2036        $24,000,048
                                             City of Orlando,          Magic          01/2038
                                             November 2007
       (Information from the Department of Revenue 5 and OPPAGA 6)                                    TOTAL:      $363,334,060

1
  S. 288.1162, F.S.
2
  S. 212.20(6)(d)6.b., F.S.
3
  S. 288.1162(6), F.S.
4
  The Marlins franchise relocated from Sun Life Stadium to Marlins Park in 2012.
5
  Email from Lynne Moeller, Office of Legislative & Cabinet Services, Department of Revenue, Pro Sports summary by fiscal year as
of 1-31-20 (Jan. 24, 2020).
6
  OPPAGA, Report No. 17-13, Florida Economic Development Program Evaluations-Year 5, p. 56 (Dec. 28, 2017).
STORAGE NAME: h1369.WTS.DOCX                                                                                              PAGE: 2
DATE: 1/24/2020
         Spring Training Baseball Franchises Program (s. 288.11621, F.S.)

         The Spring Training Baseball Franchise incentive is the state's funding mechanism to attract and retain
         facilities for Major League Baseball (MLB) spring training in Florida. Qualified applicants are eligible for
         up to $500,000 annually for up to 30 years. These dollars are typically pledged with designated Tourist
         Development Tax revenue and other local government resources to secure bonds to fund the
         acquisition, construction, reconstruction or renovation of spring training facilities.

         In 1991, the law establishing incentives to attract professional franchises to the state was significantly
         revised and expanded to include an incentive for spring training baseball franchises. Certification
         criteria for the spring training franchise incentive included a commitment by the franchise to use the
         facility for fifteen years, projections for paid attendance (at least 50,000 annually), demonstration of the
         financial capability to provide more than one-half of the costs incurred or related to the improvement or
         development of the facility, proof that the facility was located within 20 miles of an interstate or other
         limited-access highway system, and a requirement that the county levy a four-percent Tourist
         Development Tax, with 87.5% of the proceeds dedicated for the construction of the complex. 7 This law
         also limited the total number of awards for both the professional sports franchises and new spring
         training franchises to six, and prohibited facilities from receiving more than one award.

         In 1999, the Legislature extended the use of the Professional Sports and Additional Professional Sports
         Tourist Development Taxes to fund debt service on spring training franchise facilities. 8 At that point, no
         local governments had applied for the incentive. In 2000, the law was amended to limit the incentive to
         "retained" rather than "new" spring training franchises; delete the requirement that the facility be located
         within 20 miles of an interstate or other limited-access highway system; establish ranking criteria for
         awards; 9 and limit the awards to publicly-owned facilities, authorized for in-state relocations. 10

         In 2006, the number of authorized awards for spring training facilities was expanded to ten, with the
         imposition of additional certification criteria. Counties were authorized to use up to $2 million of their
         local option half-cent sales tax revenues annually to fund facilities for new or retained professional
         sports franchises and facilities for retained spring training franchises. 11 Finally, the scope of the
         incentive was expanded in 2010, to include any spring training franchise rather than only "retained"
         spring training franchises, 12 and by August 2012, ten facilities were certified for the incentive.13

         Currently, under s. 218.64(3), F.S., counties may use up to $3 million annually of the local government
         half-cent sales tax allocated to that county for a number of purposes, including, as specified in s.
         218.64(3)(a), F.S., "funding a certified applicant as a facility for a new or retained professional sports
         franchise under s. 288.1162, F.S., or a certified applicant as defined ins. 288.11621, F.S., for a facility
         for a spring training franchise." 14

         Before certifying an applicant to receive state funding for a facility for a spring training franchise, the
         Department of Economic Opportunity (DEO) must verify that 15 :
            • The applicant is responsible for the acquisition, construction, management, or operation of the
                facility for a spring training franchise or holds title to the property on which the facility for a
                spring training franchise is located.


7
   Ch. 91-274, Laws ofFla.
8
   Ch. 99-287, Laws of Fla.
9
   EDR, Return on Investment for the Florida Sports Foundation Grants and Related Programs, p. 21. (January 2015).
10
    Ch. 2000-186, Laws of Fla.
11
    Ch. 2006-262, Laws of Fla.
12
    Ch. 2010-140, Laws of Fla. (with provisions relating to the spring training incentive were transferred from s. 288.1162 to newly
created s. 288.11621, F.S.)
13
    EDR, Return on Investment for the Florida Sports Foundation Grants and Related Programs, p. 21.
14
    S. 218.64(3), F.S.
15
    S. 288.l 1621(2)(a), F.S.
STORAGE NAME: h1369.WTS.D0CX                                                                                                    PAGE: 3
DATE: 1/24/2020
              •   The applicant has a certified copy of a signed agreement with a spring training franchise for the
                  use of the facility for a term of at least 20 years. The agreement also must require the franchise
                  to reimburse the state for state funds expended by an applicant under this section if the
                  franchise relocates before the agreement expires. The agreement may be contingent on an
                  award of funds under this section and other pre-conditions.
              •   The applicant has made a financial commitment to provide 50 percent or more of the funds
                  required by an agreement for the acquisition, construction, or renovation of the facility for a
                  spring training franchise. The commitment may be contingent upon an award of funds under this
                  section and other pre-conditions.
              •   The applicant demonstrates that the facility for a spring training franchise will attract a paid
                  attendance of at least 50,000 annually to the spring training games.
              •   The facility for a spring training franchise is located in a county that levies a tourist development
                  tax under s. 125.0104, F.S.

         Each applicant certified since July 1, 2010, enters into an agreement that: 16
            • Specifies the amount of the state incentive funding to be distributed.
            • States the criteria that the certified applicant must meet in order to remain certified.
            • States that the certified applicant is subject to decertification if the certified applicant fails to
               comply with this section or the agreement.
            • States that DEO may recover state incentive funds if the certified applicant is decertified.
            • Specifies information that the certified applicant must report to DEO.
            • Includes any provision deemed prudent by DEO.

         A certified applicant may use funds provided under s. 212.20(6)(d)6.b., F.S., to:17
            • Serve the public purpose of acquiring, constructing, reconstructing, or renovating a facility for a
                  spring training franchise.
            • Pay or pledge for the payment of debt service on, or to fund debt service reserve funds,
                  arbitrage rebate obligations, or other amounts payable with respect thereto, bonds issued for
                  the acquisition, construction, reconstruction, or renovation of such facility, or for the
                  reimbursement of such costs or the refinancing of bonds issued for such purposes.
            • Assist in the relocation of a spring training franchise from one unit of local government to
                  another only if the governing board of the current host local government by a majority vote
                  agrees to relocation.

         Additionally, state funds awarded to a certified applicant for a facility for a spring training franchise may
         not be used to subsidize facilities that are privately owned, maintained, and used only by a spring
         training franchise. 18 The expenditure of state funds distributed to a certified applicant, must begin within
         48 months after the initial receipt of the state funds, with the additional requirement of the construction
         of, or capital improvements to, a spring training facility being completed within 24 months after the
         project's commencement. 19

         Retention of MLB Spring Training Baseball Franchises Program (s. 288.11631, F.S.)

         Section 288.11631, F.S., authorizes local governments that partner with a spring training baseball
         franchise to apply for certification from DEO to receive state distributions for the purpose of renovating
         or constructing a spring training baseball facility. 20

         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

16
   S. 288.l 1621(2)(c), F.S.
17
   S. 288.l 1621(3)(a), F.S.
18
   S. 288.l 1621(3)(b), F.S.
19
   S. 288.l 1621(3)(d)(3), F.S.
20
   S. 288.11631(1)-(2), F.S.
STORAGE NAME: h1369.WTS.DOCX                                                                                     PAGE: 4
DATE: 1/24/2020
         for 25 years for a facility used by more than one spring baseball training franchise. 21 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. 22

         Section 288.11631, F.S., which became law in 2013, mostly mirrors the provisions of s. 288.11621,
         F.S. The differences between the sections include:
            • The agreement must be for a minimum of the length of the term of the bonds issued for the
                construction or renovation of the facility, or if no such bonds are issued, at least 20 years.
            • A new agreement may not be signed unless the previous agreement, if any, is within 4 years of
                expiring.
            • There is no limit to the number of applicants which may be certified.
            • The net increase in recreational areas represented by the facility is not considered in the
                evaluation process.
            • The amount of state funding provided in the agreement between the applicant and DEO may
                not exceed $20 million or, if the applicant hosts 2 or more franchises, $50 million.
            • Funds provided as a result of certification under this section may not be used to acquire or
                reconstruct a facility, or to assist a franchise in moving from one local government to another.




                                                              .... ~-....
         Spring Training Facilities for Major League Baseball Franchises:
            , ..    ...


                                                   ••••
                                                           Certifleil'~,
                                                          Certiflcatfon Date,
                                                                                   ..
                                                                                  ·· ~




                                                                                I Years Bonded,

                                                                                        , :~:
                                                                                   TotalSlate        First . .
                                                                                                                              '
                                                                                                                          i.f. '
                                                                                                                           "ii{?:{~:
                                                                                                                     Team's ...
                                                                                                                      Lease
                                                                                                                                          Total
                                                                                                                                       Payments as
                                                                                                                                                     ••:,.




                   1'. . <.,·   '      Facilitv                 Statute                          .   FtnarPayment    Expires           of Jan.2020
           Detroit Tigers              Joker                     Lakeland           $38,889           March 2001      2016             $7,000,020
                                      Marchant                   Lakeland           15 years         February 2016
                                      Stadium                 January 2001         $7 million
                                                            s. 288.1162, F.S.
          Houston Astros               Osceola                  Kissimmee           $41,667           March 2001      2016             $7,500,060
                                       County               Osceola County         15 years          February 2016
                                       Stadium                January 2001        $7.5 million
                                                            s. 288.1162, F.S.
            Los Angeles                Holman                  Vero Beach          $41,667            March 2001     No lease          $9,458,409
             Dodgers 23             Stadium {now          Indian River County      30 years          February 2031
                                    Dodgertown)               January 2001        $15 million
                                                            s. 288.1162, F.S.
           Philadelphia             Spectrum Field             Clearwater          $41,667            March 2001      2023             $9,458,409
             Phillies                 {formerly                Clearwater          30 years          February 2031
                                     Bright House           December 2006         $15 million
                                         Field              s. 288.1162, F.S.
           Toronto Blue              Florida Auto                Dunedin           $41,667            March 2001      2017             $9,458,409
               Jays                   Exchange                   Dunedin           20 years          February 2023
                                       Stadium                January 2001        $10 million
                                                            s. 288.1162, F.S.
             Baltimore                 Ed Smith                  Sarasota          $41,667            March 2007      2039             $6,458,385
              Orioles                  Stadium                   Sarasota          30 years           March 2037
                                                              January 2006        $15 million
                                                            s. 288.1162, F.S.




21
   S. 212.20(6)(d)(6)(e), F.S.
22
   S. 288.l 1631(2)(c), F.S.
23
   This facility, now known as Historic Dodgertown, was previously occupied by the Los Angeles Dodgers until the Dodgers moved
their spring training facility to Arizona in 2008. The facility hosts local sports events that bring in amateur, high school, collegiate, and
international sports teams. There is not currently a Major League Baseball team based at the facility, and it is privately owned.
STORAGE NAME: h1369WTS.DOCX                                                                                                             PAGE: 5
DATE: 1/24/2020
         New York Mets       Tradition Field       Port St. Lucie       $21,985          March 2007          2016        $2,660,241
                                                 St. Lucie County      30 years          March 2017
                                                 December 2006        $7.9 million
                                                 s. 288.1162, F.S.
            Pittsburgh         McKechnie              Bradenton        $41,667           March 2007          2037        $6,458,385
              Pirates            Field                Bradenton        30 years          March 2037
                                                  December 2006       $15 million
                                                  s. 288.1162, F.S.
           Tampa Bay            Charlotte          Port Charlotte      $41,667           March 2007          2028        $6,458,385
             Rays              Sports Park       Charlotte County      30 years          March 2037
                                                  December 2006       $15 million
                                                  s. 288.1162, F.S.
           Minnesota           Hammond                 Ft. Myers       $41,667           July 2013           2045        $3,291,693
             Twins              Stadium               Lee County       30 years          June 2043
                                                     August 2012      $15 million
                                                 s. 288.11621, F.S.
            Houston          Ballpark of the     West Palm Beach       $166,667        October 2016          2048        $6,666,680
            Astros 24        Palm Beaches       Palm Beach County      25 years       September 2041
         (Recertification)                          October 2015      $50 million
                                                 s. 288.11631, F.S.
           Washington          See above              See above       See above          See above        See above      See above
            Nationals
          Detroit Tigers         Joker                Lakeland         $83,333         November 2016         2036        $3,249,987
         (Recertification)      Marchant              Lakeland         20 years         October 2036
                                Stadium           December 2015       $20 million
                                                 s. 288.11631, F.S.
            New York           George M.               Tampa           $83,333          January 2017         2046        $3,083,321
            Yankees           Steinbrenner          Tampa Sports       20 years        December 2036
                                  Field               Authority       $20 million
                                                  December 2016
                                                 s. 288.11631, F.S.
          New York Mets      First Data Field       Port St. Lucie     $83,333           June 2017           2042        $2,666,656
         (Recertification)      (formerly         St. Lucie County     20 years          May 2037
                             Tradition Field)        March 2017       $20 million
                                                 s. 288.11631, F.S.
         Atlanta Braves        CoolToday         City of North Port    $83,333          January 2018      unknown        $2,083,325
                                 Park           US Bank, as Trustee    20 years        December 2037
                                                  November 2017       $20 million
                                                 s. 288.11631, F.S.
          Toronto Blue        Florida Auto            Dunedin          $83,333        September 2018      unknown        $1,416,661
              Jays             Exchange         US Bank Corp. Trust    20 years        August 2038
                                Stadium              July 2018        $20 million
                                                 s. 288.11631, F.S.
         (Information from the Department of Revenue2 5 and OPPAGA 26)                                     TOTAL:       $87,369,026

        Sports Development Program (s. 288.11625, F.S.)

        The Sports Development 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 DEO. In order to receive funding under the program, DEO must first recommend the


24
   The Houston Astros moved their spring training operations from Osceola County to Palm Beach County in 2015. They share the
newly certified facility with the Washington Nationals.
25
   Email from Lynne Moeller, Office of Legislative & Cabinet Services, Department of Revenue, Pro Sports summary by fiscal year as
of 1-31-20 (Jan. 24, 2020).
26
   OPPAGA, Report No. 17-13, Florida Economic Development Program Evaluations-Year 5, p. 54-55 (Dec. 28, 2017).
STORAGE NAME: h1369.WTS.DOCX                                                                                              PAGE: 6
DATE: 1/24/2020
           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.

           Eligible professional sport franchises 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. 27

           Motorsports Entertainment Complex Certification (s. 288.1171, F.S.)

           Section 288.1171, F.S., provides the procedure by which a local government may receive certification
           for a motorsport entertainment complex in order to use $2 million of Local Government Half-cent Sales
           Tax Program funds to pay for certain costs associated with the complex. A motorsport entertainment
           complex is defined as a closed-course racing facility. As of January 2020, no local government has
           ever been certified for the motorsport entertainment complex program. 28

           DEO is responsible for screening and certifying applicants to allow them to use program funds for these
           purposes. An applicant must be a unit of local government that either owns a motorsport entertainment
           complex or owns the land on which a complex is located.

           Before certifying an applicant as a motorsport entertainment complex, the DEO must first verify that:
              • The local government holds title to the land on which the complex is located or holds title to the
                  complex; and
              • The local government in which the complex is located has certified by resolution after a public
                  hearing that the application for certification serves a public purpose.

           DEO determines an applicant meets eligibility requirements, it must notify the applicant and the
           Department of Revenue (DOR) of the applicant's certification through an official letter. If an applicant
           does not meet the requirements, the DEO must notify the applicant within 10 days of such
           determination. An applicant may not receive more than one certification. There are no limitations on the
           number of applicants that may be certified.

           An applicant certified as a motorsport entertainment complex may only use funds provided from the
           Local Government Half-cent Sales Tax Program for the public purposes of paying for the construction,
           reconstruction, expansion, or renovation of a motorsport entertainment complex, including related
           transportation and other infrastructure improvements; paying debt service reserve funds, arbitrage
           rebate obligations, or other amounts payable with respect to bonds issued for such activities; or
           refinancing the bonds. Additional eligible uses include paying for advertising and promotional activities
           related to the motorsport entertainment complex or the municipality or county in which the complex is
           located, if such activities are designed to increase tourism or promote economic development of the
           municipality or county.




27
     Email from Karis Lockhart, Deputy Director of Legislative Affairs, DEO, RE: Sports Development Program (Jan. 21, 2020).
2s Id.
STORAGE NAME: h1369.WTS.DOCX                                                                                               PAGE: 7
DATE: 1/24/2020
           Effect of the Bill

           The bill repeals s. 288.1162, F.S., relating to Professional Sports Franchises, s. 288.11621, F.S.,
           relating to Spring Training Baseball Franchises, s. 288.11625, F.S., relating to Sports Development, s.
           288.11631, F.S., relating to Retention of MLB Spring Training Baseball Franchises, ands. 288.1171,
           F.S., relating to Motorsports Entertainment Complexes.

           Public Financing and Sports Facilities29

           Many stadiums and sports facilities are financed with tax-exempt bonds, which are issued through state
           and local governments or other public entities such as regional sports authorities. Tax-exempt bonds
           allow issuers to take on debt at a lower interest rate relative to taxable bonds. In turn, the underwriter is
           able to get a better return on their investment because their earnings are exempt from federal income
           tax. The maturity structure for tax-exempt bonds is typically 20 to 30 years, so it is essentially a long-
           term debt that is paid back over time. Tax-exempt bonds are secured by pledged revenues which are
           usually generated from a tax or fee. The most commonly pledged revenues for sports facilities bonds
           are tourist development taxes, ad valorem taxes, and sales taxes, including local option sales taxes.
           Annual sales tax distributions for sports facilities financing are also used to secure tax-exempt bonds.
           In a few instances, the bonds have been issued as general obligation debt, which means that all
           revenues of the issuer, regardless of the source, may be used to pay debt service, if needed. Rarely,
           proceeds from land sales or other non-ad-valorem revenues are also used.

           The issuance of bonds provides a large amount of cash up-front that can be used for capital
           investment. However, most of the bonds are issued with 30-year maturity structures, which mean that a
           large portion of the state funding is actually used to pay the interest cost of the debt. For example, a
           certified professional sports facility in Florida that receives $2 million a year for 30 years pledges this
           $60 million to pay debt service on $30 million of bonds issued. So, the state's $60 million investment
           results in $30 million of up-front cash that can be used to construct or renovate a facility. The state's
           investment for spring training facilities is significantly less. In most cases, certified spring training
           facilities receive $0.5 million each year for 30 years, which typically results in about $7.5 million of cash
           available for the state's $15 million investment. In both programs, the amount of cash available varies
           up or down slightly by facility, depending on what interest rates were at the time bonds were issued.

           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 for the professional sports franchise facility incentive programs.

           Effect of the Bill

           The bill amends s. 212.20, F.S., to specify that applicants who were not certified as a sports facility
           under the spring training franchises or the new or retained professional sports franchise programs
           before July 1, 2020, may not receive monthly distributions from DOR. The bill also deletes the provision
           authorizing distributions under the sports development program.

           Tourist Development Taxes (s. 125.0104, F.S.)

           Section 125.0104, F.S., authorizes the levy of five separate local option taxes on rental charges subject
           to the transient rentals tax under s. 212.03, F.S., to be used in various ways to promote tourism within
           the county. Generally, the revenues from these levies may be used for capital construction of tourist-

29
     EDR, Return on Investment for the Florida Sports Foundation Grants and Related Programs, p.28 (January 1, 2018).
STORAGE NAME: h1369.WTS.D0CX                                                                                            PAGE: 8
DATE: 1/24/2020
        related facilities, tourist promotion, and beach and shoreline maintenance; however, the authorized
        uses vary according to the particular levy. There is a prohibition against any county levying a
        convention development tax from levying tourist development taxes at a rate of more than 2 percent;
        however, this prohibition does not apply to a county's levy of the Professional Sports Franchise Facility
        Tax and Duval County's levy of the Additional Professional Sports Franchise Facility Tax.

        During the 2019-20 state fiscal year, 63 of the eligible 67 counties currently levying one or more of the
        tourist development taxes will realize an estimated $1 billion in revenue. 30

        Professional Sports Franchise Facility TOT (s. 125.0104(3)(1), F.S.)

        In addition to any other tourist development tax imposed, a county may levy up to an additional 1
        percent tax on the total consideration charged for transient rental transactions. The tax is levied
        pursuant to an ordinance adopted by a majority vote of the county's governing body. The tax proceeds
        are used to pay the debt service on bonds issued to finance professional sports franchise facilities,
        retained spring training franchise facilities, and convention centers. In addition, these proceeds can be
        used to promote tourism in the State of Florida, nationally and internationally.

        The provisions ins. 125.0104(4)(a)-(d), F.S., regarding the preparation of the county tourist
        development plan, are not be applicable to this tax. In addition, the provision ins. 125.0104(3)(b}, F.S.,
        that prohibits any county authorized to levy a convention development tax from levying more than the 2
        percent tourist development tax is not applicable to this tax.

        During the 2019-20 state fiscal year, 44 of the eligible 67 counties currently levying this tax will realize
        an estimated $183 million in revenue. 31

        Additional Professional Sports Franchise Facility TOT (s. 125.0104(3)(n), F.S.)

        The Additional Professional Sports Franchise Facility Tax may be levied at a rate up to 1 percent by a
        majority plus one vote of the governing board of the county. The tax can only be levied in counties that
        have imposed the Professional Sports Franchise Facility Tourist Development Tax. Generally, the
        proceeds can be used to pay debt service on bonds for the construction or renovation of professional
        sports franchise facilities, spring training facilities of professional sports franchises, and to promote and
        advertise tourism.

        During the 2019-20 state fiscal year, 30 of the eligible 65 counties currently levying this tax will realize
        an estimated $147 million in revenue. 32

        Effect of the Bill

        The bill amends paragraphs 125.0104(3)(1) & (n}, F.S., to disallow a county from using the additional 1-
        percent taxes on certain costs related to the planning, design, or financing of a professional sports
        franchise facility or a retained spring training franchise facility.

        The bill creates paragraph 125.0104(5)(f), F.S., to provide that Tourist Development Tax revenues may
        not be used to finance or construct any aspect of a facility that is or will be used by a sports franchise
        after July 1, 2020. The bill clarifies that lawful contracts entered into before this date are not affected.




30
   EDR, 2019 Local Government Financial Information Handbook, p. 256.
31
   Id. at 267.
32
   Id. at 273.
STORAGE NAME: h1369.WTS.D0CX                                                                                   PAGE: 9
DATE: 1/24/2020
        Convention Development Taxes (s. 212.0305, F.S.) 33

        Certain counties or sub-parts of counties are authorized to levy convention development taxes on
        transient rental transactions. Duval County (as a county consolidated with a municipality), Miami-Dade
        County (as a charter county), and parts of Volusia County currently levy a convention development tax.
        Three of the five available levies are applicable to separate taxing districts in Volusia County. The
        levies may be authorized pursuant to an ordinance enacted by the county's governing body, and the
        tax rates are either two or three percent depending on the particular levy. Generally, the revenues may
        be used for construction of convention centers and other tourist-related facilities as well as tourist
        promotion; however, the authorized uses vary by levy.

        In fiscal year 2019-2020, the three counties levying a convention development tax will realize an
        estimated $68.5 million in revenue. 34

        Effect of the Bill

        The bill creates s. 212.0305(6), F.S., to provide that Convention Development Tax revenues may not
        be used to finance or construct any aspect of a facility that is or will be used by a sports franchise after
        July 1, 2020. The bill clarifies that lawful contracts entered into before this date are not affected.

        Local Government Half-cent Sales Tax (s. 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. 35 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. 36

        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.

        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.

        Effect of the Bill

        The bill amends subsections 218.64(2) & (3), F.S., removing the authority for local governments to
        spend the half-cent sales tax on a motorsport entertainment complex or for reimbursements under the

33
   Id at 119-120.
34
   Id at 121.
35
   Ch. 82-154, Laws of Fla.
36
   EDR, 2019 Local Government Financial Information Handbook, p. 57.
STORAGE NAME: h1369.WTS.D0CX                                                                                    PAGE: 10
DATE: 1/24/2020
         sports development program. The bill also specifies that a county can only use the half-cent sales tax
         on a new or retained professional sports franchise or spring training franchise facility that is certified
         prior to July 1, 2020.

         Use of Government Land

         Tax-exempt Status for Certain Infrastructure

         Section 196.199, F.S., generally exempts all property of the state that is used for governmental
         purposes from ad valorem taxation. Additionally, property that is owned by the government but leased
         to a nongovernmental lessee is exempt from ad valorem taxation and the intangible tax when the
         lessee serves or performs a governmental, municipal, or public purpose or function, including:

                  ... The use by a lessee, licensee, or management company of real property or a portion thereof
                  as a convention center, visitor center, sports facility with permanent seating, concert hall, arena,
                  stadium, park, or beach is deemed a use that serves a governmental, municipal, or public
                  purpose or function when access to the property is open to the general public with or without a
                  charge for admission ... 37

         Local Government Authority to Sell and Lease Land

         Florida law provides broad authority to cities and counties to conduct governmental functions and
         render governmental services, except when expressly prohibited by law. 38 Such authority includes, but
         is not limited to, certain statutorily enumerated powers and all implied authority necessary to effectively
         exercise those express powers, including the authority to contract and to purchase, lease, sell, and
         exchange real or personal property. 39

         Counties and municipalities may also offer private entities below-market rate leases or deeds for real
         property for economic development purposes.

         County Authority to Lease a Professional Sports Franchise

         Section 125.35, F.S., authorizes the board of county commissioners to sell or lease real property
         belonging to the county under certain circumstances. Furthermore, counties are expressly authorized
         to:

                  Lease a professional sports franchise facility financed by revenues received pursuant to s.
                  125.0104 ors. 212.20 which may include commercial development that is ancillary to the sports
                  facility if the ancillary development property is part of or contiguous to the professional sports
                  franchise facility. The board's authority to lease the above described ancillary commercial
                  development in conjunction with a professional sports franchise facility lease applies only if at
                  the time the board leases the ancillary commercial development, the professional sports
                  franchise facility lease has been in effect for at least 1O years and such lease has at least an
                  additional 10 years remaining in the lease term.

         Alternatively, counties are authorized to adopt an ordinance prescribing the disposition standards and
         procedures for the county to use when selling or leasing property owned by the county. 40 At a
         minimum, such standards and procedures must provide for:
             • Establishment of competition and qualification standards upon which disposition will be
                 determined.


37
   S. I 96.012(6), F.S.
38
   See ss. 125.01 and 166.021, F.S.
39
   Ss. 125.01(3)(a) and 166.021(1), F.S. See also Art. VIII, s. 2, FLA. CONST.
40
   S. 125.35(3), F.S.
STORAGE NAME: h1369.WTS.D0CX                                                                                  PAGE: 11
DATE: 1/24/2020
           •   Reasonable public notice of the intent to consider disposition of county property and the
               availability of copies of the standards. Reasonableness of the notice is to be determined by the
               efficacy and efficiency of the means of communication used.
           •   Identification of the form and manner by which an interested person may acquire county
               property.
           •   Types of negotiation procedures applicable to the selection of a person to whom county
               properties may be disposed.
           •   The manner in which interested persons will be notified of the board's intent to consider final
               action at a regular meeting of the board on the disposition of a property and the time and
               manner for making objections.
           •   Adherence in the disposition of real property to the governing comprehensive plan and zoning
               ordinances.

       Effect of the Bill

       The bill defines the following terms:

              "Facility" means a stadium, arena, or other structure used by a sports franchise to host games
       or events, or any directly related property or structure, including practice facilities, offices, restaurants,
       concessions, retail or lodging facilities, onsite and offsite parking lots, garages, and other properties.

              "Fair market value" means a negotiated price of at least the average of the values contained in
       two independent appraisals, performed by appraisers that meet certain minimum qualifications.

              "Sports franchise" means a person or persons, sole proprietorship, corporation, limited liability
       company, partnership, or association that has been granted the contractual right to own or operate a
       professional sports team, or host a professional sporting event, in a specified location.

       The bill creates s. 288.1163, F.S., providing for certain conditions relating to sports franchise facilities
       and public land. Specifically, the bill:
          • Prohibits a sports franchise from constructing or improving a facility on land that is leased from
               the state or local government.
          • Requires that the lease or sale of public land to a sports franchise for a sports facility must be at
               fair market value.
          • Specifies that a facility that is owned, operated or leased by a sports franchise is not tax
               exempt.
          • Provides that any new or amended contract include a provision requiring the sports franchise to
               pay off any outstanding governmental debt in the event that the sports franchise stops using the
               facility.
          • Specifies that these provisions will not apply retroactively to existing contracts.

       The bill deletes subparagraph 125.35(1)(b)3., F.S., authorizing counties to lease professional sports
       franchise facilities that are financed by revenues pursuant to ss. 125.0104 ors. 212.20, F.S.

       The bill provides that any applications for certification under ss. 288.1162, 288.11621, 288.11625,
       288.11631, or 288.1171, F.S., will be rescinded when the bill takes effect on July 1, 2020. Applicants
       that were certified before this date are not affected by the bill, and their contracts remain in full force
       and effect.


   B. SECTION DIRECTORY:
       Section 1       Amends s. 125.0104, F.S.; deleting provisions authorizing a county to impose a
                       specified tax for debt service on bonds relating to sports franchise facilities and

STORAGE NAME: h1369.WTS.D0CX                                                                                   PAGE: 12
DATE: 1/24/2020
                      professional sports franchises; prohibiting revenues generated by specified county taxes
                      to be used for sports franchises after a certain date.

       Section 2      Amends s. 125.35, F.S.; prohibiting a county from leasing specified professional sports
                      franchise facilities; prohibiting revenues generated by convention development taxes to
                      be used for sports franchises after a certain date.

       Section 3      Amends s. 212.0305, F.S.; prohibiting revenues collected after a specified date to be
                      used for sports franchise activities.

       Section 4      Amends s. 212.205, F.S.; conforming a cross-reference.

       Section 5      Amends s. 212.20, F.S.; conforming provisions to changes made by the act; removing a
                      provision that distributes specified sales tax revenues to certain applicants.

       Section 6      Amends s. 218.64, F.S.; conforming provisions to changes made by the act.

       Section 7      Amends s. 288.0001, F.S.; deleting a provision requiring the Office of Economic and
                      Demographic Research and the Office of Program Policy Analysis and Government
                      Accountability to provide an analysis regarding a sports development program.

       Section 8      Repeals ss. 288.1162, 288.11621, 288.11625, 288.11631, and 288.1171, F.S., relating
                      to professional sports franchises and their duties, spring training baseball franchises,
                      sports development, and the retention of Major League Baseball spring training baseball
                      franchises, respectively.

       Section 9      Creates s. 288.11633, F.S.; prohibiting the lease of public lands for certain purposes
                      related to sports franchises and their facilities; requiring the lease of a facility on public
                      lands for certain purposes to be at fair market value; requiring a sports franchise to
                      repay specified debt incurred by a local government related to construction of facilities;
                      defining the terms "facility," "fair market value," and "sports franchise".

       Section 10     Provides applicability.

       Section 11     Provides an effective date of July 1, 2020.


                        II. FISCAL ANALYSIS & ECONOMIC IMPACT STATEMENT

   A. FISCAL IMPACT ON STATE GOVERNMENT:

       1. Revenues:
           None.

       2. Expenditures:
           See Fiscal Comments.

   B. FISCAL IMPACT ON LOCAL GOVERNMENTS:

       1. Revenues:
           See Fiscal Comments.

       2. Expenditures:

STORAGE NAME: h1369.WTS.D0CX                                                                                  PAGE: 13
DATE: 1/24/2020
           See Fiscal Comments.

   C. DIRECT ECONOMIC IMPACT ON PRIVATE SECTOR:
       The bill constrains state and local government funding mechanisms for certain private sector sports
       franchises and facilities.

   D. FISCAL COMMENTS:
       There is an indeterminate impact to state and local government expenditures because the bill
       constrains state and local government funding mechanisms for certain private sector sports franchises
       and facilities which reduce such expenditures in the future. Additionally, restriction of uses of certain
       local option taxes may result in fewer future levies of those taxes.

                                                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 spend funds or take
          action requiring the expenditure 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:
          None.

   B. RULE-MAKING AUTHORITY:
       None.

   C. DRAFTING ISSUES OR OTHER COMMENTS:




                         IV. AMENDMENTS/ COMMITTEE SUBSTITUTE CHANGES




STORAGE NAME: h1369.WTS.DOCX                                                                              PAGE: 14
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        HB 1369                                                               2020




 1                                         A bill to be entitled
 2                An act relating to sports franchises and facilities;
 3                amending s. 125.0104, F.S.; deleting provisions
 4                authorizing a county to impose a specified tax for
 5                debt service on bonds relating to sports franchise
 6                facilities and professional sports franchises;
 7                prohibiting revenues generated by specified county
 8                taxes to be used for sports franchises after a certain
 9                date; amending s. 125.35, F.S.; prohibiting a county
10                from leasing specified professional sports franchise
11                facilities; prohibiting revenues generated by
12                convention development taxes to be used for sports
13                franchises after a certain date; s. 212.0305, F.S.;
14                prohibiting revenues collected after a specified date
15                to be used for sports franchise activities; amending
16                s. 212.205, F.S.; conforming a cross-reference;
17                amending s. 212.20, F.S.; conforming provisions to
18                changes made by the act; removing a provision that
19                distributes specified sales tax revenues to certain
20                applicants; amending s. 218.64, F.S.; conforming
21                provisions to changes made by the act; amending s.
22                288.0001, F.S.; deleting a provision requiring the
23                Office of Economic and Demographic Research and the
24                Office of Program Policy Analysis and Government
25                Accountability to provide an analysis regarding a

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        HB 1369                                                                     2020




26                sports development program; repealing ss. 288.1162,
27                288.11621, 288.11625, 288.11631, and 288.1171, F.S.,
28                relating to professional sports franchises and their
29                duties, spring training baseball franchises, sports
30                development, and the retention of Major League
31                Baseball spring training baseball franchises,
32                respectively; creating s. 288.11633, F.S.; prohibiting
33                the lease of public lands for certain purposes related
34                to sports franchises and their facilities; requiring
35                the lease of a facility on public lands for certain
36                purposes to be at fair market value; requiring a
37                sports franchise to repay specified debt incurred by a
38                local government related to construction of
39                facilities; defining the terms "facility," "fair
40                market value," and "sports franchise"; providing
41                applicability; providing an effective date.
42
43      Be It Enacted by the Legislature of the State of Florida:
44
45                Section 1.        Paragraphs (1) and (n) of subsection (3) of
46      section 125.0104, Florida Statutes, are amended, and a new
47      paragraph (f) is added to subsection (5) of that section, to
48      read:
49                125.0104        Tourist development tax; procedure for levying;
50      authorized uses; referendum; enforcement.-

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        HB 1369                                                                                2020



51                (3)      TAXABLE PRIVILEGES; EXEMPTIONS; LEVY; RATE.-
52                (1)       In addition to any other tax which is imposed pursuant
53      to this section, a county may impose up to an additional 1-
54      percent tax on the exercise of the privilege described in
55      paragraph (a) by majority vote of the governing board of the
56      county in order to:
57                1.       Pay the debt service on bonds issued to finance the
58      construction, reconstruction, or renovation of a professional
59      sports franchise facility,                  or the acquisition, construction,
60      reconstruction, or renovation of a retained spring training
61      franchise facility,                either publicly owned and operated, or
62      publicly owned and operated by the owner of a professional
63      sports franchise or other lessee with sufficient enpertioe or
64      financial capability to operate ouch facility,                       and to pay the
65      planning and design coots incurred prior to the issuance of ouch
66      bonds.
67                1.~        Pay the debt service on bonds issued to finance the
68      construction, reconstruction, or renovation of a convention
69      center, and to pay the planning and design costs incurred prior
70      to the issuance of such bonds.
71                2.-3.-     Pay the operation and maintenance costs of a
72      convention center for a period of up to 10 years. Only counties
73      that have elected to levy the tax for the purposes authorized in
74      subparagraph 1. subparagraph 2. may use the tax for the purposes
75      enumerated in this subparagraph. Any county that elects to levy

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         HB 1369                                                                              2020



 76      the tax for the purposes authorized in subparagraph 1.
 77      subparagraph 2. after July 1, 2000, may use the proceeds of the
 78      tax to pay the operation and maintenance costs of a convention
 79      center for the life of the bonds.
 80                3.4.-    Promote and advertise tourism in the State of Florida
 81      and nationally and internationally; however, if tax revenues are
 82      expended for an activity, service, venue, or event, the
 83      activity, service, venue, or event shall have as one of its main
 84      purposes the attraction of tourists as evidenced by the
 85      promotion of the activity, service, venue, or event to tourists.
 86
 87      The provision of paragraph (b) which prohibits any county
 88      authorized to levy a convention development tax pursuant to s.
 89      212.0305 from levying more than the 2-percent tax authorized by
 90      this section, and the provisions of paragraphs                       (4) (a)-(d), shall
 91      not apply to the additional tax authorized in this paragraph.
 92      The effective date of the levy and imposition of the tax
 93      authorized under this paragraph shall be the first day of the
 94      second month following approval of the ordinance by the
 95      governing board or the first day of any subsequent month as may
 96      be specified in the ordinance. A certified copy of such
 97      ordinance shall be furnished by the county to the Department of
 98      Revenue within 10 days after approval of such ordinance.
 99                (n)     In addition to any other tax that is imposed under
100      this section, a county that has imposed the tax under paragraph

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101       (1) may impose an additional tax that is no greater than 1
102      percent on the exercise of the privilege described in paragraph
103       (a) by a majority plus one vote of the membership of the board
104      of county commissioners in order to+
105                1.      Pay the debt service on bonds issued to finance:
106                a.      The construction, reconstruction, or renovation of a
107      facility either publicly owned and operated, or publicly owned
108      and operated by the owner of a professional sports franchise or
109      other lessee with sufficient expertise or financial capability
110      to operate ouch facility, and to pay the planning and design
111      coots incurred prior to the issuance of ouch bonds for a new
112      professional sports franchise ao defined in o. 288.1162.
113                b.      The acquisition, construction, reconstruction, or
114      renovation of a facility either publicly owned and operated, or
115      publicly owned and operated by the 0vmer of a professional
116      sports franchise or other lessee ·,dth sufficient eJcpertioe or
117      financial capability to, operate ouch facility, and to pay the
118      planning and design coots incurred prior to the issuance of ouch
119      bonds for a retained spring training franchise.
120                -2--.   promote and advertise tourism in the State of Florida
121      and nationally and internationally; however, if tax revenues are
122      expended for an activity, service, venue, or event, the
123      activity, service, venue, or event shall have as one of its main
124      purposes the attraction of tourists as evidenced by the
125      promotion of the activity, service, venue, or event to tourists.

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126
127      A county that imposes the tmc authorized in this paragraph may
128      not eJcpend any ad valorem tmc revenues for the acquisition,
129      construction, reconstruction, or renovation of a facility for
130      which taJc revenues are used pursuant to subparagraph 1. The
131      provision of paragraph (b) which prohibits any county authorized
132      to levy a convention development tax pursuant to s. 212.0305
133      from levying more than the 2-percent tax authorized by this
134      section shall not apply to the additional tax authorized by this
135      paragraph in counties which levy convention development taxes
136      pursuant to s. 212. 0305 ( 4) (a) . Subsection ( 4) does not apply to
137      the adoption of the additional tax authorized in this paragraph.
138      The effective date of the levy and imposition of the tax
139      authorized under this paragraph is the first day of the second
140      month following approval of the ordinance by the board of county
141      commissioners or the first day of any subsequent month specified
142      in the ordinance. A certified copy of such ordinance shall be
143      furnished by the county to the Department of Revenue within 10
144      days after approval of the ordinance.
145                (5)   AUTHORIZED USES OF REVENUE.-
146                (£)   Beginning July 1, 2020, revenues collected pursuant to
147      this section may not be used to acquire, construct, extend,
148      enlarge, remodel, repair, improve, maintain, operate, finance,
149      refinance, make debt service payments for,                           or be used as
150      collateral, pledge, or capital contribution for any project or

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151      business arrangement involving a facility that is or will be
152      used by a sports franchise as defined ins. 288.11633. Nothing
153      in this paragraph impairs or affects the obligations or terms of
154      any lawful contract entered into before July 1, 2020.
155                Section 2.         Paragraph (b) of subsection (1) of section
156      125.35, Florida Statutes, is amended to read:
157                125.35         County authorized to sell real and personal
158      property and to lease real property.-
159                ( 1)

160                (b)     Notwithstanding paragraph (a), under terms and
161      conditions negotiated by the board, the board of county
162      commissioners may:
163                1.     Negotiate the lease of an airport or seaport facility;
164      or
165                2.     Modify or extend an existing lease of real property for
166      an additional term not to exceed 25 years, where the improved
167      value of the lease has an appraised value in excess of $20
168      million.-,.........e-r
169                3.     Lease a professional sports franchise facility financed
170      by revenues received pursuant to s. 125.0104 or o. 212.20 which
171      may include coffiffiercial development that is ancillary to the
172      sports facility if the ancillary development property is part of
173      or contiguous to the professional sports franchise facility. The
174      board's authority to lease the above described ancillary
175      coffiffiercial development in conjunction with a professional sports

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176      franchise facility lease applies only if at the time the board
177      leases the ancillary cofflffiercial development, the professional
178      sports franchise facility lease has been in effect for at least
179      10 years and ouch lease has at least an additional 10 years
180      remaining in the lease term.
181                Section 3.        Subsection (6) is added to section 212.0305,
182      Florida Statutes, to read:
183                212.0305        Convention development taxes; intent;
184      administration; authorization; use of proceeds.-
185                (6)   Beginning July 1, 2020, revenues collected pursuant to
186      this section may not be used to acquire, construct, extend,
187      enlarge, remodel, repair, improve, maintain, operate, finance,
188      refinance, make debt service payments for,                           or be used as
189      collateral, pledge, or capital contribution for any project or
190      business arrangement involving a facility that is or will be
191      used by a sports franchise as defined ins. 288.11633. Nothing
192      in this subsection impairs or affects the obligations or terms
193      of any lawful contract entered into before July 1, 2020.
194                Section 4.        Section 212.205, Florida Statutes, is amended
195      to read:
196                212.205     Sales tax distribution reporting.-By March 15 of
197      each year, each person who received a distribution pursuant to
198      s. 212.20(6) (d)6.b.-e. o. 212.20(6) (d)6.b. f.                         in the preceding
199      calendar year shall report to the Office of Economic and
200      Demographic Research the following information:

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201                (1)    An itemized accounting of all expenditures of the
202      funds distributed in the preceding calendar year, including
203      amounts spent on debt service.
204                (2)    A statement indicating what portion of the distributed
205      funds have been pledged for debt service.
206                (3)    The original principal amount and current debt service
207      schedule of any bonds or other borrowing for which the
208      distributed funds have been pledged for debt service.
209                Section 5.       Paragraph (d) of subsection (6) of section
210      212.20, Florida Statutes, is amended to read:
211                212.20     Funds collected, disposition; additional powers of
212      department; operational expense; refund of taxes adjudicated
213      unconstitutionally collected.-
214                (6)    Distribution of all proceeds under this chapter and
215      ss. 202.18(1) (b) and (2) (b) and 203.01(1) (a)3. is as follows:
216                (d)    The proceeds of all other taxes and fees imposed
217      pursuant to this chapter or remitted pursuant to s. 202. 18 ( 1) (b)
218      and ( 2) (b) shall be distributed as follows:
219                1.    In any fiscal year, the greater of $500 million, minus
220      an amount equal to 4.6 percent of the proceeds of the taxes
221      collected pursuant to chapter 201, or 5.2 percent of all other
222      taxes and fees imposed pursuant to this chapter or remitted
223      pursuant to s. 202. 18 ( 1) (b) and ( 2) (b) shall be deposited in
224      monthly installments into the General Revenue Fund.
225                2.    After the distribution under subparagraph 1., 8.9744

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226      percent of the amount remitted by a sales tax dealer located
227      within a participating county pursuant to s. 218.61 shall be
228      transferred into the Local Government Half-cent Sales Tax
229      Clearing Trust Fund. Beginning July 1, 2003, the amount to be
230      transferred shall be reduced by 0.1 percent, and the department
231      shall distribute this amount to the Public Employees Relations
232      Commission Trust Fund less $5,000 each month, which shall be
233      added to the amount calculated in subparagraph 3. and
234      distributed accordingly.
235                3.   After the distribution under subparagraphs 1. and 2.,
236      0.0966 percent shall be transferred to the Local Government
237      Half-cent Sales Tax Clearing Trust Fund and distributed pursuant
238      to s. 218.65.
239                4.   After the distributions under subparagraphs 1., 2., and
240      3., 2.0810 percent of the available proceeds shall be
241      transferred monthly to the Revenue Sharing Trust Fund for
242      Counties pursuant to s. 218.215.
243                5.   After the distributions under subparagraphs 1., 2., and
244      3., 1.3653 percent of the available proceeds shall be
245      transferred monthly to the Revenue Sharing Trust Fund for
246      Municipalities pursuant to s. 218.215. If the total revenue to
247      be distributed pursuant to this subparagraph is at least as
248      great as the amount due from the Revenue Sharing Trust Fund for
249      Municipalities and the former Municipal Financial Assistance
250      Trust Fund in state fiscal year 1999-2000, no municipality shall

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251      receive less than the amount due from the Revenue Sharing Trust
252      Fund for Municipalities and the former Municipal Financial
253      Assistance Trust Fund in state fiscal year 1999-2000. If the
254      total proceeds to be distributed are less than the amount
255      received in combination from the Revenue Sharing Trust Fund for
256      Municipalities and the former Municipal Financial Assistance
257      Trust Fund in state fiscal year 1999-2000, each municipality
258      shall receive an amount proportionate to the amount it was due
259      in state fiscal year 1999-2000.
260                6.   Of the remaining proceeds:
261                a.   In each fiscal year, the sum of $29,915,500 shall be
262      divided into as many equal parts as there are counties in the
263      state, and one part shall be distributed to each county. The
264      distribution among the several counties must begin each fiscal
265      year on or before January 5th and continue monthly for a total
266      of 4 months. If a local or special law required that any moneys
267      accruing to a county in fiscal year 1999-2000 under the then-
268      existing provisions of s. 550.135 be paid directly to the
269      district school board, special district, or a municipal
270      government, such payment must continue until the local or
271      special law is amended or repealed. The state covenants with
272      holders of bonds or other instruments of indebtedness issued by
273      local governments, special districts, or district school boards
274      before July 1, 2000, that it is not the intent of this
275      subparagraph to adversely affect the rights of those holders or

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276      relieve local governments, special districts, or district school
277      boards of the duty to meet their obligations as a result of
278      previous pledges or assignments or trusts entered into which
279      obligated funds received from the distribution to county
280      governments under then-existing s. 550.135. This distribution
281      specifically is in lieu of funds distributed under s. 550.135
282      before July 1, 2000.
283                b.   The department shall distribute $166,667 monthly to
284      each applicant certified before July 1, 2020, as a facility for
285      a new or retained professional sports franchise pursuant to s.
286      288.1162, Florida Statutes 2019. Up to $41,667 shall be
287      distributed monthly by the department to each applicant that was
288      certified before July 1, 2020, as a certified applicant as
289      defined ins. 288.11621, Florida Statutes 2019 for a facility
290      for a spring training franchise. However, not more than $416,670
291      may be distributed monthly in the aggregate to all certified
292      applicants for facilities for spring training franchises.
293      Distributions begin 60 days after such certification and
294      continue for not more than 30 years, except as otherwise
295      provided ins. 288.11621, Florida Statutes 2019. A certified
296      applicant identified in this sub-subparagraph may not receive
297      more in distributions than expended by the applicant for the
298      public purposes provided ins. 288.1162(5) ors. 288.11621(3)~
299      Florida Statutes 2019.
300                c.   Beginning 30 days after notice by the Department of

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301      Economic Opportunity to the Department of Revenue that an
302      applicant has been certified as the professional golf hall of
303      fame pursuant to s. 288.1168 and is open to the public, $166,667
304      shall be distributed monthly, for up to 300 months, to the
305      applicant.
306                d.   Beginning 30 days after notice by the Department of
307      Economic Opportunity to the Department of Revenue that the
308      applicant has been certified as the International Game Fish
309      Association World Center facility pursuant to s. 288.1169, and
310      the facility is open to the public, $83,333 shall be distributed
311      monthly, for up to 168 months, to the applicant. This
312      distribution is subject to reduction pursuant to s. 288.1169. A
313      lump sum payment of $999,996 shall be made after certification
314      and before July 1, 2000.
315                e.   The department shall distribute up to $83,333 monthly
316      to each applicant that was certified before July 1, 2020, as a
317      certified applicant as defined ins. 288.11631, Florida Statutes
318      2019 for a facility used by a single spring training franchise,
319      or up to $166,667 monthly to each applicant that was certified
320      before July 1, 2020, as a certified applicant as defined ins.
321      288.11631, Florida Statutes 2019 for a facility used by more
322      than one spring training franchise. Monthly distributions begin
323      60 days after such certification or July 1, 2016, whichever is
324      later, and continue for not more than 20 years to each applicant
325      that was certified before July 1, 2020, as a certified applicant

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326      as defined ins. 288.11631, Florida Statutes 2019 for a facility
327      used by a single spring training franchise or not more than 25
328      years to each applicant that was certified before July 1, 2020,
329      as a certified applicant as defined ins. 288.11631, Florida
330      Statutes 2019 for a facility used by more than one spring
331      training franchise. A certified applicant identified in this
332      sub-subparagraph may not receive more in distributions than
333      expended by the applicant for the public purposes provided ins.
334      288.11631(3), Florida Statutes 2019.
335                f.        Beginning 45 days after notice by the Department of
336      Economic Opportunity to the Department of Revenue that an
337      applicant has been approved by the Legislature and certified by
338      the Department of Economic Opportunity under s. 288.11625 or
339      upon a date specified by the Department of Economic Opportunity
340      as provided under s. 2 8 8 . 1162 5 ( 6) ( d) , the department shall
341      distribute each month an amount equal to one twelfth of the
342      annual distribution amount certified by the Department of
343      Economic Opportunity for the applicant. The department may not
344      distribute more than $7 million in the 2014 2015 fiscal year or
345      more than $13 million annually thereafter under this sub
346      subparagraph.
347                !..:_g.     Beginning December 1, 2015, and ending June 30, 2016,
348      the department shall distribute $26,286 monthly to the State
349      Transportation Trust Fund. Beginning July 1, 2016, the
350      department shall distribute $15,333 monthly to the State

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351      Transportation Trust Fund.
352                7.    All other proceeds must remain in the General Revenue
353      Fund.
354                Section 6.       Subsections (2) and (3) of section 218.64,
355      Florida Statutes, are amended to read:
356                218.64     Local government half-cent sales tax; uses;
357      limitations.-
358                (2)    Municipalities shall expend their portions of the
359      local government half-cent sales tax only for municipality-wide
360      programs, for reimbursing the state as required pursuant to s.
361      288.11625, or for municipality-wide property tax or municipal
362      utility tax relief. All utility tax rate reductions afforded by
363      participation in the local government half-cent sales tax shall
364      be applied uniformly across all types of taxed utility services.
365                (3)    Subject to ordinances enacted by the majority of the
366      members of the county governing authority and by the majority of
367      the members of the governing authorities of municipalities
368      representing at least 50 percent of the municipal population of
369      such county, counties may use up to $3 million annually of the
370      local government half-cent sales tax allocated to that county if
371      the money provides funds for any of the follmdng purposes:
372                (a)    Funding an a certified applicant that was certified
373      before July 1, 2020, as a facility for a new or retained
374      professional sports franchise under s. 288.1162, Florida
375      Statutes 2019 or an applicant that was certified before July 1,

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376      2020, as a certified applicant as defined ins. 288.11621L
377      Florida Statutes 2019 for a facility for a spring training
378      franchise.        It is the Legislature's intent that the provisions of
379      s. 288.1162, Florida Statutes 2019, including, but not limited
380      to, the evaluation process by the Department of Economic
381      Opportunity except for the limitation on the number of certified
382      applicants or facilities as provided in that section and the
383      restrictions set forth ins. 288.1162(8), Florida Statutes 2019,
384      shall apply to an application that was submitted for a facility
385      before July 1, 2020, applicant's facility to be funded by local
386      government as provided in this subsection.
387                (b)   Funding a certified applicant as a "motorsport
388      entertainment compleJc," as provided for in s. 288 .1171. Funding
389      for each franchise or motorsport compleJc shall begin 60 days
390      after certification and shall continue for not more than 30
391      years.
392                (c)   Reimbursing the state as required under s. 288.11625.
393                Section 7.        Paragraphs       (b) and (e)        of subsection (2) of
394      section 288.0001, Florida Statutes, are amended to read:
395                288.0001        Economic Development Programs Evaluation.-The
396      Office of Economic and Demographic Research and the Office of
397      Program Policy Analysis and Government Accountability (OPPAGA)
398      shall develop and present to the Governor, the President of the
399      Senate, the Speaker of the House of Representatives, and the
400      chairs of the legislative appropriations committees the Economic

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401      Development Programs Evaluation.
402                (2)    The Office of Economic and Demographic Research and
403      OPPAGA shall provide a detailed analysis of economic development
404      programs as provided in the following schedule:
405                (b)    By January 1, 2015, and every 3 years thereafter, an
406      analysis of the following:
407                1.    The entertainment industry financial incentive program
408      established under s. 288.1254.
409                2.    The entertainment industry sales tax exemption program
410      established under s. 288.1258.
411                3.    VISIT Florida and its programs established or funded
412      under ss. 288.122, 288.1226, 288.12265, and 288.124.
413                4.    The Florida Sports Foundation and related programs
414      established under ss. 288.1162, 288.11621, 288.1166, 288.1167,
415      288.1168, 288.1169, and under former ss. 288.1162 and 288.11621
416      and 288.1171.
417                (e)    Beginning January 1, 2018, and every 3 years
418      thereafter, an analysis of the Sports Developffient Prograffi
419      established under s. 288.11625.
420                Section 8.       Sections 288.1162, 288.11621, 288.11625,
421      288.11631, and 288.1171, Florida Statutes, are repealed.
422                Section 9.       Section 288.11633, Florida Statutes, is created
423      to read:
424                288.11633       Sports franchise facilities; lease or sale of
425      public land.-

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426                (1)    Notwithstanding any other provision of law:
427                (a)    A sports franchise may not construct, reconstruct,
428      renovate, or improve a facility on land leased from the state or
429      a political subdivision thereof.
430                (b)    A lease of a facility on public land owned by the
431      state or a political subdivision to a sports franchise must be
432      at fair market value.
433                (c)    A sale of public land owned by the state or a
434      political subdivision for a sports franchise to construct,
435      reconstruct, renovate, or improve a facility on such land must
436      be at fair market value.
437                (d)    A facility that is owned, operated, or leased by a
438      sports franchise does not serve a tax-exempt purpose and is not
439      exempt from taxation.
440                (2)    On or after July 1, 2020, a contract or agreement, or
441      a renewal of or an amendment to an existing contract or
442      agreement, entered into between the state or a political
443      subdivision and a sports franchise to fund the construction,
444      reconstruction, renovation, or improvement of a facility must
445      include a provision that requires the sports franchise to pay
446      any outstanding debt incurred by the state or political
447      subdivision to fund such construction, reconstruction,
448      renovation, or improvement if the sports franchise permanently
449      discontinues use of the facility.
450                ( 3)   For purposes of this section, the term:

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451                 (a)   "Facility" means a stadium, arena, or other structure
452       used by a sports franchise to host games or events, or any
453       directly related property or structure, including practice
454       facilities, offices, restaurants, concessions, retail or lodging
455       facilities, onsite and offsite parking lots, garages, and other
456       properties.
457                 (b)   "Fair market value" means a negotiated price of at
458       least the average of the values contained in two independent
459       appraisals, performed by appraisers approved pursuant to s.
4 60      253.025(8).
461                 (c)   "Sports franchise" means a person or persons, sole
462       proprietorship, corporation, limited liability company,
463       partnership, or association that has been granted the
464       contractual right to own or operate a professional sports team,
465       or host a professional sporting event, in a specified location.
466                 (4)   Nothing in this section impairs any lawful contract
467       entered into before July 1, 2020, without the consent of the
468       parties.
469                 Section 10.         All applications for certification pending
470       pursuant to s. 288.1162, s. 288.11621, s. 288.11625, s.
471       288.11631, or 288.1171, Florida Statutes, on July 1, 2020, are
472       rescinded. Applicants or projects that were certified before
473       July 1, 2020, and that continue to meet the criteria in effect
474       before July 1, 2020, remain in full force and effect. In
475       addition, any existing contracts or agreements authorized under

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476      any of these programs continue in full force and effect in
477      accordance with the statutory requirements in effect when the
478      contract or agreement was executed or last modified. However, no
479      further modifications, extensions, or waivers may be made or
480      granted relating to such contracts or agreements except
481      computations by the Department of Revenue of the income
482      generated by or arising out of any qualifying project.
483                Section 11.         This act shall take effect July 1, 2020.




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                                    HOUSE OF REPRESENTATIVES STAFF ANALYSIS
BILL#:      PCB WTS 20-01   Intercollegiate Athlete Compensation and Rights
SPONSOR(S): Workforce Development & Tourism Subcommittee
TIED BILLS:      IDEN./SIM. BILLS:

    REFERENCE                                                        ACTION                   ANALYST             STAFF DIRECTOR or
                                                                                                                  BUDGET/POLICY CHIEF

    Orig. Comm.: Workforce Development & Tourism
       Subcommittee
                                                                                              Willson   f'l\J Barry l\ltr8
                                                         SUMMARY ANALYSIS

The National Collegiate Athletic Association (NCAA) is a nonprofit organization whose voluntary membership
includes colleges, universities, athletic conferences, and other affiliated organizations. The NCAA regulates
intercollegiate athletic competitions in various sports across multiple divisions. As the governing body for the
majority of intercollegiate athletic programs, the NCAA provides that its basic purpose is to "maintain
intercollegiate athletics as an integral part of the educational program and the athlete as an integral part of the
student body and, by so doing, retain a clear line of demarcation between intercollegiate athletics and
professional sports." NCAA rules prohibit student-athletes from being paid for the use of their names, images,
and likenesses.

The bill authorizes intercollegiate athletes to earn compensation for their name, image, likeness, or persona
(NILP). The bill seeks to preserve the integrity, quality, character, and amateur nature of intercollegiate
athletics while maintaining a clear distinction between amateur and professional sports by:
 • Providing that compensation for athletic performance or attendance at a particular institution remains
     prohibited.
 • Allowing NILP compensation only if it is provided by a third party unaffiliated with the athlete's
     postsecondary educational institution.

The bill prohibits postsecondary educational institutions receiving state aid (Florida College System institutions,
State University System institutions, and private colleges and universities) from:
 • Preventing or unduly restricting an intercollegiate athlete from earning NILP compensation.
 • Preventing or unduly restricting an intercollegiate athlete from obtaining professional representation for
     purposes of seeking NILP compensation.
 • Revoking or reducing grant-in-aid awards for an intercollegiate athlete who earns compensation for his or
     her NILP.

The bill specifies that the terms of a contract for NILP compensation may not conflict with the terms of the
intercollegiate athlete's team contract or extend beyond the time of the athlete's participation in an athletic
program at a postsecondary educational institution.

In addition, the bill requires each postsecondary educational institution receiving state aid to:
 • Provide intercollegiate athletes with health and disability insurance for the time it takes the athlete to
     recover from the sports-related injury and a death benefit of $25,000, subject to certain conditions.
 • Maintain grant-in-aid for intercollegiate athletes until the athlete graduates, under certain circumstances.
 • Conduct a financial and life skills workshop at the beginning of the intercollegiate athlete's first and third
     academic years.

The bill will have an indeterminate fiscal impact on certain postsecondary educational institutions.

The bill provides an effective date of July 1, 2020.


This document does not reflect the intent or official position of the bill sponsor or House of Representatives.
STORAGE NAME: pcb01.WTS.D0CX
DATE: 1/26/2020
                                                        FULL ANALYSIS

                                                I. SUBSTANTIVE ANALYSIS

    A. EFFECT OF PROPOSED CHANGES:
         Present Situation

         National Collegiate Athletic Association

         The National Collegiate Athletic Association (NCAA) is a nonprofit organization whose voluntary
         membership includes colleges, universities, athletic conferences, and other affiliated organizations. The
         NCAA regulates intercollegiate athletic competitions in various sports across three divisions (Division I,
         Division II, and Division Ill). As the governing body for the majority of intercollegiate athletic programs,
         the NCAA provides that its basic purpose is to "maintain intercollegiate athletics as an integral part of
         the educational program and the athlete as an integral part of the student body and, by so doing, retain
         a clear line of demarcation between intercollegiate athletics and professional sports." 1

         The NCAA issues and enforces rules governing athletic competitions among its member schools.
         The rules are developed by a member-led governance system in which members introduce and vote on
         proposed rules. The rules for student-athletes vary by division. In general, the NCAA's amateurism
         rules prohibit student-athletes from being paid for their athletic abilities, including being paid for
         commercial endorsements if the reason for being chosen for the commercial endorsement is because
         of the student's athletic ability. This prohibition includes compensation for the use of a student-athlete's
         name, image, and likeness in live games, telecast, videogames, and other footage.

         Student-athletes are allowed to receive scholarships, or "grants-in-aid," which may cover tuition and
         fees, room and board, required course-related books, food, and cash stipends to help defray the actual
         cost of attending school. However, NCAA rules prohibit a student's grant-in-aid from exceeding the cost
         of attendance at their school. 2

         The NCAA, along with member colleges and universities, award nearly $3.5 billion in athletic
         scholarships every year to more than 180,000 student-athletes. According to the NCAA, they also
         provide almost $100 million each year to support student-athletes' academic pursuits and assist them
         with the basic needs of college life, such as a computer, clothing or emergency travel expenses. 3

         Florida Intercollegiate Athletic Programs

         In Florida, 13 schools participate in NCAA Division I athletics, of which 7 compete in the Football Bowl
         Subdivision, 4 compete in the Football Championship Subdivision, and 2 do not field football teams.
         There are 13 NCAA Division II athletic programs located in the state, and no NCAA Division Ill athletic
         programs. Additionally, Florida is home to 25 institutions participating in the National Junior College
         Athletic Association (NJCAA}, 10 institutions participating in the National Association of Intercollegiate
         Athletics (NAIA}, and 3 institutions participating in the National Christian College Athletic Association
         (NCCAA).




1
  NCAA Bylaw 1.3.1. https://web3.ncaa.org/lsdbi/reports/getReport/90008 (last visited Jan. 23, 2020).
2
  NCAA Bylaw 2.13.
3
  NCAA, Finances, https://www.ncaa.org/about/resources/finances (last visited Jan. 23, 2020).
STORAGE NAME: pcb01.WTS.D0CX                                                                                  PAGE: 2
DATE: 1/26/2020
                                           NCAA D" . . II ntercoIIeq,a
                                                 /VIS/On                      e,c Proqrams4
                                                                     . te Athl f
                                                                 Total
               Institution Name             Classification   Undere:raduates     Total Expenses             Total Revenue
        Florida State University                FBS              29,187         $ 167,054,375.00        $    177,512,950.00
        University of Florida                   FBS              30,887         $ 157,240,476.00        $    157,240,476.00
        University of Miami                     FBS              10,134         $    94,723,980.00      $     94,723,980.00
        University of Central Florida           FBS              39,685         $    60,069,492.00      $     60,069,492.00
        University of South Florida             FBS              24,342         $    51,710,233.00      $     51,710,233.00
        Florida International University        FBS              26,210         $    31,172,655.00      $     38,240,735.00
        Florida Atlantic University             FBS              15,907         $    27,662,831.00      $     27,662,831.00
        Stetson University                      FCS               2,998         $    19,391,731.00      $     19,391,731.00
        Jacksonville University                 FCS               2,174         $    17,180,946.00      $      17,180,946.00
        Florida Gulf Coast University       (no football)        10,821         $    15,037,882.00      $      15,037,882.00
        Bethune-Cookman University              FCS               3,751         $    14,397,984.00      $      14,397,984.00
        University ofNorth Florida          (no football)        10,147         $    11,835,623.00      $      12,546,853.00
        FAMU                                    FCS               6,852         $     9,922,955.00      $       9,922,955.00

         Florida Postsecondary Education System

         There are various forms of financial assistance available to students in Florida's postsecondary
         intuitions. 5 These include: 6
             • Gift Aid: Type of financial assistance that does not have to be paid back.
             • Grant: A type of student financial assistance, usually based on financial need, designed to assist
                  with educational costs and which has no repayment conditions.
             • Loan: A type of student financial assistance that must be repaid.
             • Scholarship: A type of student financial assistance based on specific criteria which does not
                  have to be repaid.

         Florida Statutes identify a number of publicly funded academic, need, and workforce based
         scholarships.7 However, athletic scholarships are not provided for in Florida Statutes.
         Individual schools award athletic scholarships and grants-in-aid to student athletes. 8 This financial
         assistance may not exceed the cost of attendance. 9 "Cost of attendance" is defined as the average cost
         for a student to attend a postsecondary institution for one academic year, which includes the cost of
         tuition and fees, books and supplies, room and board, transportation, and personal expenses. 10 In
         Florida's State University System, the average cost of attendance per semester in the 2019-20 school
         year was $11,232. 11




4
   See generally, U.S. Department of Education, Equity in Athletics Data Analysis, https://ope.ed.gov/athletics/#/customdata/search
(last visited Jan. 23, 2020).
5
   Office of Student Financial Assistance, Financial Aid Terms and Definitions,
https://www.floridastudentfinancialaidsg.org/pdf/TermsAndDefinitions.pdf(last visited Jan. 23, 2020). "Post-secondary institution" is
defined as an institution providing educational training opportunities beyond the high school level and awarding degrees, diplomas, or
certificates.
6 Id.
7
  See ss. 1009.40-1009.894, F.S.
8
  NCAA Recruiting Facts, http://www.ncaa.org/sites/default/files/Recruiting%20Fact%20Sheet%20WEB.pdf. (last visited Jan. 23,
2020).
9
  NCAA Bylaw 15.01.6.1.
10
    Office of Student Financial Assistance, supra at 2.
11
    State University System of Florida, 2019-2020 Cost ofAttendance, https://www.flbog.edu/wp-content/uploads/Cost-Attendance-
2019-20-FINAL.pdf. (last visited Jan. 23, 2020).
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DATE: 1/26/2020
                                                                                                 State University System of Florida
                                                  Fall/Spring Cost of Attendance On-Campus for Full-Time Undergraduate Florida Residents 2019-20
                                   '   Universitv                                               Books & SUDDlies Room& Board                                                Other Exoenses                Total
                        FAMU                                                         $4,554                     $1,138                   $10,986                 $1.356                     $5.398           $23,432
                        FAU                                                           5,432                      1,248                    11,950                  2,172                      5.210             26,012
                        FGCU                                                          6,118                      1,200                     9,672                  1,700                      1,700             20,390
                        FIU                                                           6558                       1.350                    11136                   2.202                      2,612             23.858
                        FLPoly                                                        4,940                      1,200                    11,471                  2,000                      2,000             21,611
                        fSU                                                           5,666                      1,000                    10780                   1180                       3.830             22,456
                        NCF                                                           6,916                      1,200                     9,529                  1,100                      2,170             20,915
                        UCF                                                           5954                       1,200                    10,010                  1,866                      3104              22,134
                        UF                                                            6,380                        850                    10,220                  1,110                      2,650             21,210
                        UNF                                                           6590                       1,200                     9no                    2823                       1,247             21,580
                        USF St. Petersburg                                            S,821                      1,100                    11,836                  1,600                      2,500             22,857
                        USFTamoa                                                      6,410                      1,100                    11,836                  1,600                      2SM               23446
                        uw,                                                                                      1,bUO                    lU,ObZ                  l,l!OO                       .,uu            a,


                        !Average Cost per Semester:
                                                                                      ···""
                                                                                      $2,9881

                        Jsoui,ci: Annual 5umy o[ SUS Institutions
                        Notes: Costs that make up the "Other Expense" category can indude but are not HmltMI to the following: clothing maintenance/laundry, computer/cell phone, student health insurance, and
                        other personal costs.

                        USF-Sarasota Manatee ls not 1nduded in this table because this institution does not have residential students.




         NCAA Report on 2018 Division I Revenues and Expenses 12

         In 2018, over 1,100 NCAA schools spent more than $18 billion on athletics while generating only $10.3
         billion in revenues. Of the total expenditures in 2018, $3.5 billion went toward financial aid for student-
         athletes and $3.4 billion was spent on coaches' compensation. In total, only 29 athletic departments
         had revenues that exceeded expenditures - all of them Power 5 schools 13 - with an average surplus of
         $9.3 million. In 2018, Power 5 schools accounted for 73% of all NCAA revenues and 43% of total
         spending. As a whole, Division I schools accounted for 97% of all NCAA revenues and 83% of
         spending.

         In 2018, median athletic expenses exceeded revenues by $2.6 million at Power 5 schools,
         approximately $22 million at non-Power 5 Division I schools, and $13.3 million at Division I schools
         without football. 14 Expenses exceeded revenues at every FCS institution as well. 15 Schools subsidize
         athletic deficits with student activity fees, direct support from the university, and other means.




12
   NCAA, Finances of Intercollegiate Athletics, http://www.ncaa.org/about/resources/research/finances-intercollegiate-athletics (last
visited Jan. 23, 2020).
13
   In 2014, the NCAA granted certain autonomy to five athletic conferences and their 65 member institutions, known as the
"autonomy" or "Power 5" conferences. NCAA Bylaw 5.3.2.1. The "Power 5" or "autonomy" conferences are comprised by the
Atlantic Coast Conference, Big Ten Conference, Big 12 Conference, Pac-12 Conference and Southeastern Conference. Power 5
schools compete in the Football Bowl Subdivision (FBS) and they generate the most revenue (from ticket sales, broadcast rights,
NCAA and conference distributions, etc.) in college athletics.
14
   NCAA, Finances of Intercollegiate Athletics, http://www.ncaa.org/about/resources/research/finances-intercollegiate-athletics (last
visited Jan. 23, 2020).
1s Id.
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DATE: 1/26/2020
                  Revenues for Autonomous 5 Conferences
                  (ACC, Big 10, Big 12, PAC-12, SEC)


                      3.000
                                                                           S2,798
                                                                                                 -       TOTAL
                                                                                                 -       NCAA Distributions

                                                                                                 -       Conference Media
                                                                                                         Contrad5/Post5eason
                                                                                                         Football/Events,
                                                                                                         sponsorships.
                                                                                                         royalties, other



                                                                                              2005 and 2015 Da1a Source:
                                                                                              Conference 990 forms and NCAA
                                                                                              Conference Revenue Distribution
                                                                                              Reports

                                                                                              "2020 Proiections: Estimated NCAA
                                                                                             di5lribulion based on NCAA contract
                                                                                             increases and assuming similar
                                                                                             li5lribu!ion lelrels; increases in
                                                                                             conference media contract5 based on
                                                                                             new deills and contraa escalations
                                                                                             reported in media sowces.


                                    Source: Knight Commission on Intercollegiate Athletics 16


        Amateurism

        Notwithstanding the substantial revenues involved in intercollegiate athletics today, amateurism
        remains central to the NCAA model. The NCAA Constitution states:

                 The Principle of Amateurism. Student-athletes shall be amateurs in an intercollegiate
                 sport, and their participation should be motivated primarily by education and by the
                 physical, mental and social benefits to be derived. Student participation in intercollegiate
                 athletics is an avocation, and student-athletes should be protected from exploitation by
                 professional and commercial enterprises. 17

        The NCAA Constitution further specifies that, relating to "amateur status," an individual loses amateur
        status and is not eligible for intercollegiate competition in a particular sport if the individual:

                 (a) Uses his or her athletics skill (directly or indirectly) for pay in any form in that sport;
                 (b) Accepts a promise of pay even if such pay is to be received following completion of
                 intercollegiate athletics participation;
                 (c) Signs a contract or commitment of any kind to play professional athletics, regardless of its
                 legal enforceability or any consideration received, except as permitted in Bylaw 12.2.5.1;
                 (d) Receives, directly or indirectly, a salary, reimbursement of expenses or any other form of
                 financial assistance from a professional sports organization based on athletics skill or
                 participation, except as permitted by NCAA rules and regulations;
                 (e) Competes on any professional athletics team per Bylaw 12.02.12, even if no pay or
                 remuneration for expenses was received, except as permitted in Bylaw 12.2.3.2.1;
                 (f) After initial full-time collegiate enrollment, enters into a professional draft (see Bylaw 12.2.4);
                 or

16 Knight Commission on Intercollegiate Athletics, Finances of College Sports https://www.knightcommission.org/wp-

content/uploads/2016/l 0/2015-conferencerevenues.pdf (last visited Jan. 23, 2020).
17
   NCAA Bylaw 2.9.
STORAGE NAME: pcb01.WTS.D0CX                                                                                                       PAGE: 5
DATE: 1/26/2020
                 (g) Enters into an agreement with an agent. 18

         Notably, the NCAA lacks a clear or consistent definition for the term "amateurism." Courts have
         observed that the NCAA's definition is "malleable, changing frequently over time in significant and
         contradictory ways" and have even gone so far as to say that amateurism is not "a core principle of the
         NCAA." 19 Examples of permissible income under NCAA rules include:

             •   NCAA rules allow two-sport athletes to be paid professionals in one sport while competing in a
                 different college sport, such as Kyle Parker's $1.4 million baseball signing bonus while serving
                 as Clemson's quarterback in 2010.
             •   University of Texas swimmer Joseph Schooling received a $740,000 bonus from Singapore for
                 winning a gold medal at the 2016 Olympics.
             •   Tennis players can receive up to $10,000 per year in prize money (and additional cash on a
                 per-event basis) before or during college.
             •   College football players can receive bowl gifts up to $550 in value, which can involve players
                 selecting high-tech electronics from a gift suite or receiving a Visa gift card.
             •   Schools have student-assistance funds to help athletes financially, including insurance policies
                 for elite athletes who want to protect their professional futures. 20
             •   Student-athletes are permitted to accept Pell grants above and beyond their cost of
                 attendance. 21

         However, a University of Central Florida football kicker was recently ruled ineligible by the NCAA
         because of the income that he receives from his monetized YouTube channel. 22

         Name, Image, and Likeness

         Individuals have a property right in their name, image, and likeness. 23 However, the NCAA prohibits
         student-athletes from being paid for the use of their names, images, and likenesses. 24 Many student-
         athletes generate significant value in their name, image, and likeness and could receive significant
         compensation for them in an open market. 25 In recent years, the NCAA's policy of prohibiting student-
         athletes from receiving compensation for the use of their names, images, and likenesses has attracted
         legal challenges, which alleged that the NCAA's prohibition is an unlawful restraint of trade and violates
         antitrust laws.

         In general, federal and state antitrust laws are intended to promote and foster competition in the
         marketplace and prevent anticompetitive mergers and business practices. The NCAA and its member
         institutions have traditionally been viewed by the courts as different from professional leagues, and for




18
   NCAA Bylaw 12.1.2.
19
   O'Bannon v. National Collegiate Athletic Ass'n, 802 F.3d 1049, 1058-9 (9th Cir. 2015).
20
   Jon Solomon, The History Behind the Debate Over Paying NCAA Athletes (April 23, 2018), https://www.aspeninstitute.org/blog-
posts/history-behind-debate-paying-ncaa-athletes (last visited Jan. 23, 2020).
21
   O'Bannon, 802 F.3d at 1059.
22
   Katherine Mannion, NCAA Amateurism Rules Promote Integrity at a Price, JURIS Magazine (Oct 21, 2017).
http://sites.law.duq.edu/iuris/2017/10/21/ncaa-amateurism-rules-promote-integrity-at-a-price (last visited Jan. 23, 2020).
23
   Gabe Feldman, The NCAA and "Non-Game Related" Student-Athlete Name, Image and Likeness Restrictions, Knight Commission
on Intercollegiate Athletics (May 2016) at 3. https://www.knightcommission.org/wp-
content/uploads/2008/10/feldman nil white paper may 2016.pdf(last visited Jan. 24, 2020).
The "right of publicity" is intended to assure an individual the right to own, protect, and commercially exploit his or her name,
likeness, or persona. This right is part of the common law right of privacy now codified ins. 540.08, F.S. See, Robert C. Sanchez,
Unauthorized Appropriation of an Individual's Name or Likeness-Florida's Appellate Courts and 540.0, Florida Bar Journal Vol. 72,
No. 7, at 57. (Jul./Aug. 1998).
24
   O'Bannon, 802 F.3d at 1052.
25
   Feldman, supra at 3.
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DATE: 1/26/2020
        this reason have been allowed to implement certain restrictions on competition that many argue are
        necessary for intercollegiate athletics to exist. 26

        In O'Bannon v. NCAA, the U.S. Court of Appeals for the Ninth Circuit found that student-athletes may
        be injured as a result of the NCAA rules excluding athletes from the market for their names, images,
        and likenesses, but concluded that the NCAA is only required to "permit its schools to provide up to the
        cost of attendance to their student athletes. "27

        Recent Developments

        On September 11, 2019, the California Legislature passed SB 206, the "Fair Pay to Play Act", the first
        law of its kind in the U.S. allowing college student-athletes to benefit financially from their name, image
        and likeness, beginning January 1, 2023.

        On the same day, the NCAA Board of Governors responded, in part: "We urge the state of California to
        reconsider this harmful and, we believe, unconstitutional bill and hope the state will be a constructive
        partner in our efforts to develop a fair name, image and likeness approach for all 50 states." 28 When SB
        206 was signed into law a few weeks later, the NCAA released a statement which acknowledged the
        need for changes in its approach to the name, image, and likeness rights of its student-athletes. 29

        On October 29, 2019, the NCAA's top governing board voted unanimously to permit students
        participating in athletics the opportunity to benefit from the use of their name, image and likeness in a
        manner consistent with the collegiate model. 30 Specifically, the board stated that modernization should
        occur within the following principles and guidelines:
            • Assure student-athletes are treated similarly to non-athlete students unless a compelling reason
                exists to differentiate.
            • Maintain the priorities of education and the collegiate experience to provide opportunities for
                student-athlete success.
            • Ensure rules are transparent, focused and enforceable and facilitate fair and balanced
                competition.
            • Make clear the distinction between collegiate and professional opportunities.
            • Make clear that compensation for athletic performance or participation is impermissible.
            • Reaffirm that student-athletes are students first and not employees of the university.
            • Enhance principles of diversity, inclusion and gender equity.
            • Protect the recruiting environment and prohibit inducements to select, remain at, or transfer to a
                specific institution. 31

        Athlete Agents

        Background

        The licensing and regulation of athlete agents in Florida is a state government function administered by
        the Department of Business and Professional Regulation (DBPR). DBPR processes licenses and



26
   Feldman, supra at 3.
27
   O'Bannon, 802 F.3d at 1079.
28
   NCAA, NCAA responds to California Senate Bill 206 (Sept. 11, 2019) http://www.ncaa.org/about/resources/media-
center/news/ncaa-responds-califomia-senate-bill-206 (last visited Jan. 23, 2020).
29
   NCAA, NCAA statement on Gov. Newsom signing SB 206 (Sept. 30, 2019) http://www.ncaa.org/about/resources/media-
center/news/ncaa-statement-gov-newsom-signing-sb-206 (last visited Jan. 23, 2020).
30
   NCAA, Board of Governors starts process to enhance name, image and likeness opportunities (Oct. 29, 2019)
http://www.ncaa.org/about/resources/media-center/news/board-govemors-starts-process-enhance-name-image-and-likeness-
opportunities (last visited Jan. 23, 2020).
31 Id.
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DATE: 1/26/2020
         responds to consumer complaints and inquiries in addition to monitoring activities and compliance
         within the athlete agent industry.

         An "athlete agent" is a person:
            • who, directly or indirectly, recruits or solicits a student athlete to enter into an agent contract, or
            • who, for any type of financial gain, procures, offers, promises, or attempts to obtain employment
                or promotional fees or benefits for a student athlete with a professional sports team or as a
                professional athlete, or
            • who, with any promoter, markets or attempts to market the student athlete's athletic ability or
                athletic reputation. 32

         The term "athlete agent" includes all employees and other persons acting on behalf of an athlete agent
         who participate in the activities included under this subsection. The term does not include a spouse,
         parent, sibling, grandparent, or guardian of the student athlete or an individual acting solely on behalf of
         a professional sports team or professional sports organization.

         A "student athlete" is any student who:
             • resides in Florida and participates or formally intends to participate in a college or university's
                intercollegiate athletics; or
             • does not reside in Florida, but participates or formally intends to participate in a Florida college
                or university's intercollegiate athletics. 33

         An "agent contract" is the contract or agreement in which a student athlete authorizes an athlete agent
         to represent the student in the marketing of the student's athletic ability or athletic reputation. 34 In order
         to be valid, such contract is specifically required to include any fees paid to the agent and indicate how
         such fee is calculated. The athlete agent is also required to follow certain procedures during the
         contracting process, such as alerting the athletic director of the educational institution of the existence
         of the agent contract. The contracts are generally voidable by the student athlete within 14 days of
         execution. 35

         In order to be licensed as an athlete agent, an applicant must be at least 18 years of age, of good
         moral character, and have completed the application form with fingerprints for a background check.
         Applicants must remit to DBPR an initial application fee of $250, an initial licensure fee of $375, an
         unlicensed activity fee of $5, and a biennial renewal fee of $220. 36

         Athlete agents must establish and maintain complete business and financial records. The athlete agent
         is required to "save each entry into a financial or business record for at least 5 years from the date of
         entry." 37 DBPR has the right to full inspection of such records and may exercise its subpoena powers
         to obtain the financial and business records of an athlete agent.

         Athlete agents are subject to disciplinary action for violating practice requirements set forth in statute.
         Violations include:
             • commingling money or property of another person with the athlete agent's money or property, 38
             • committing mismanagement or misconduct which causes financial harm to a student athlete or
                 college or university, 39 and



32
   S. 468.452(2), F.S.
33
   S. 468.452(5), F.S.
34
   S. 468.452(1), F.S.
35
   S. 468.454, F.S.
36
   R. 61-24.004, F.A.C.
37
   S. 468.4565, F.S.
38
   S. 468.456(l)(d), F.S.
39
   S. 468.456(1 )(h), F.S.
STORAGE NAME: pcb01.WTS.D0CX                                                                                     PAGE: 8
DATE: 1/26/2020
             •   Violating or aiding and abetting another person to violate the rules of the athletic conference or
                 collegiate athletic association governing a student athlete or student athlete's college or
                 university. 40

        An unlicensed person is generally prohibited from acting as an athlete agent. 41 Section 468.453(3),
        F.S., allows an unlicensed individual to act as an athlete agent if:
            • a student athlete or person acting on the athlete's behalf initiates communication with the
                 individual; and
            • within 7 days after an initial act as an athlete agent, the individual submits an application for
                 licensure.

         In Fiscal Year 2018-2019, there were 321 licensed athlete agents in Florida. DBPR received 2
         complaints related to athlete agents, but did not take any disciplinary action. 42

         NCAA Athletic Injury Insurance Requirements and Options43

         Primary Basic Medical Insurance

        The NCAA requires member institutions to certify that student-athletes in intercollegiate sports are
        insured for athletically related injuries44 sustained while participating in "covered events." 45 A "covered
        event" includes:

             •   Any intercollegiate sports activity, including team travel, competition, practices and conditioning
                 sessions during the playing season;
             •   An NCAA-sanctioned competition in which the insured person is an official competitor; or
             •   Practice and conditioning sessions that are authorized, organized or directly supervised by
                 athletics department personnel at the member institution other than during the playing season.
                 Such sessions must occur on campus or at approved off-campus facilities as part of an
                 intercollegiate athletics activity. For insured student-athletes or prospective student-athletes
                 who compete in individual sports, off-campus intercollegiate athletics activities must be
                 authorized by athletics department personnel at the participating school and take place at
                 approved locations. 46

        The required insurance must be able to satisfy the deductible of the NCAA Catastrophic Injury
        Insurance Program. 47 The NCAA also requires that the institution provide medical coverage for at least
        two years following either graduation or separation of the student-athlete from the institution, whichever
        occurs first. 48 Compliant insurance may be provided by:

             •   Parents' or guardians' insurance coverage;
             •   The student-athlete's personal insurance coverage; or

40
   S. 468.456(1 )(k), F.S.
41
   S. 468.4561, F.S.
42
   Florida Department of Business and Professional Regulation, 2018-2019 Annual Report, pp.19, 90.
43
   http://www.ncaa.org/about/resources/insurance/ncaa-student-athlete-medical-insurance-legislation (last visited?)
44
   Athletically related injuries are injuries that are a direct result of participation in a covered event. NCAA Bylaw 3.2.4.9.2.
45
   For NCAA Championships, the NCAA provides basic athletics-injury, catastrophic-injury, and accidental death and
dismemberment insurance for participants. NCAA Bylaws 31.7.4.2 (Div. III) and 31.7.4.3 (Div. I and Div. II).
46
   NCAA Bylaw 3.2.4.9.3.
47
   The NCAA Catastrophic Injury Insurance Program begins coverage after the cost of the injury has reached a minimum $75,000, for
institutions participating in the NCAA Group Basic Accident Medical Program, or a minimum $90,000 for injuries to covered student-
athletes from institutions that are not participating in the NCAA Group Basic Accident Medical Program. NCAA, NCAA Catastrophic
Injury Insurance Program, Benefit Summary for the Period of 8/1I 19 through 7/31 /21,
https://ncaaorg.s3.amazonaws.com/ncaa/insurance/2019-2 l £NS NCAACatastrophicBenefitSummary.pdf, (last visited Jan. 23, 2020).
48
   NCAA Bylaw 16.4.1. Each institution has the discretion to determine the method by which it will provide medical care, the method
by which it determines whether an injury is athletically related and any policy deemed necessary for implementing the medical care.
STORAGE NAME: pcb01.WTS.DOCX                                                                                               PAGE: 9
DATE: 1/26/2020
             •    The institutions insurance program.

         In the event that the student-athlete is uninsured or has insurance that does not meet the NCAA
         requirement, the NCAA sponsors two insurance products for coverage of the student-athlete. These
         products are voluntary and separately underwritten for each institution by the Mutual of Omaha
         insurance company.

         The NCAA Group Basic Accident Medical Program is an insurance product sponsored by the NCAA for
         member institutions to secure group coverage of their student-athletes. This program is coordinated
         with the NCAA Catastrophic Injury Insurance Program to offer access to the NCAA's catastrophic injury
         benefits at a lower deductible. The premium for the Group Basic program is paid by the member
         institution and the student-athlete participates as a member of the institution's group. The NCAA also
         sponsors the NCAA Primary Accident Program for uninsured student-athletes whose institution does
         not provide a group insurance option for their student-athletes. Both the Group Basic and Primary
         Accident programs offer insurance plans that can be tailored to desired benefit and cost levels, i.e.,
         minimum coverages, Health Maintenance Organizations, Preferred Provider Networks, varying
         deductibles and copays, selected sub-limits, 49 etc. The premiums and costs vary depending on the
         details of the policy purchased.

         NCAA Catastrophic Injury Insurance Program 50

         The NCAA sponsors a catastrophic injury insurance program for active member institutions. This
         program is offered to member institutions at no additional cost. The insurance covers any student-
         athlete who is catastrophically injured while participating in a covered intercollegiate athletic activity.
         The policy has a $90,000 deductible ($75,000 for those institutions that participate in the NCAA Group
         Basic Accident Medical Program) and provides benefits in excess of any other valid and collectible
         insurance. Any student-athlete injury with medical expenses exceeding the applicable deductible will
         trigger the program's coverage.

         The NCAA Catastrophic Injury Insurance Program covers students who are athletes, coaches,
         managers, trainers, and cheerleaders who are catastrophically injured in a covered event. 51 This
         program provides a $20 million maximum benefit with specified annual or service limits on selected




49
   A sub-limit is a limitation in an insurance policy stating the coverage maximum ofa particular type of benefit, but is lower than and
contributes to the overall policy limit. https://www.merriam-webster.com/legal/sublimit (last visited Jan. 26, 2020). For example, the
NCAA Catastrophic Injury Insurance Program has maximum lifetime coverage amount of$20,000,000. Within that coverage are
annual sub-limits of$100,000 for Custodial Care and Home Health Care and $250,000 for Combined Private Duty Nursing, Custodial
Care, and Home Health Care. NCAA, NCAA Catastrophic Injury Insurance Program, Benefit Summary for the Period of 8/1I 19
through 7/31/21, https://ncaaorg.s3.amazonaws.com/ncaa/insurance/2019-2 lINS NCAACatastrophicBenefitSummary.pdf, (last
visited Jan. 23, 2020). Once the sub-limit is reached, no additional reimbursement is available for that period, even if the policy's
maximum overall coverage limit has not been reached.
50
   See http://www.ncaa.org/about/resources/insurance/ncaa-catastrophic-iniury-insurance-program;
http://www.ncaa.org/about/resources/insurance; http://www.ncaa.org/about/resources/insurance/ncaa-student-ath lete-medical-
insurance-legislation; http://www.ncaa.org/about/resources/ins urance/ncaa-insurance-legislation-fags (last visited?)
See also Nicole Kline, Bridging the NCAA 's Accident Insurance Coverage Gaps? A Deep Dive into the Uncertainties of Injury
Coverage in College Contact Sports, and the Impact that has on Athletes' Future Physical and Financial Comfort, 31 J.L. & Health 55
(2018) available at https://engagedscholarship.csuohio.edu/ilh/vol3 l/iss 1/7 (last visited?)
51
   The NCAA's catastrophic insurance policy goes into more detail on various defined terms than the NCAA Constitution does. Please
refer to NCAA's benefit summary of the catastrophic injury insurance program for definitions of important terms. NCAA, NCAA
Catastrophic Injury Insurance Program, Benefit Summary for the Period of 8/1I 19 through 7/31 /21,
https://ncaaorg.s3.amazonaws.com/ncaa/insurance/2019-21 INS NCAACatastrophicBenefitSummary.pdf, (last visited Jan. 23, 2020).
STORAGE NAME: pcb01 WTS.DOCX                                                                                                   PAGE: 10
DATE: 1/26/2020
         benefit types. It provides various benefits, including medical, dental, rehabilitation, custodial care,
         disability (cash payments), 52 and death 53 related to the covered catastrophic injury.

         Coverage Behavior at NCAA Division I Institutions

         In 2016, the NCAA reported on a survey it conducted of head athletic trainers at NCAA Division I
         institutions. 54 Seventy percent (232 institutions from 32 separate conferences) were reported to have
         responded to the survey. Notable findings include:

             Insurance Coverage

             •   68 percent of schools have a primary insurance requirement;
                 o If the student-athlete was uninsured, 70 percent provided insurance to them;
             •   On average, more than 400 student-athletes were covered per institution, regardless of the
                 method of coverage chosen by the institution;
             •   Methods of Coverage:
                 o 67 percent purchase insurance;
                 o 23 percent self-insure;
                 o 6 percent require the student-athlete to obtain personal coverage; and
                 o 4 percent make alternate financial arrangements. 55
             •   Insurance purchasers (about 155 institutions):
                 o Nearly 60 percent had policy premiums between $100,000 and $500,000;
                 o 45 percent had insurance deductibles between $0.00 and $1,000;
                 o More than 75 percent provided a benefit period of 104 weeks; and
                 o 87 percent of accidental insurance policies had no sub-limits;
             •   Self-insurers (about 53 institutions):
                 o 72 percent stated student-athletes and families bear no costs;
                 o 59 percent provided a benefit period of 104 weeks; and
                 o 85 percent had no sub-limits.
             •   Student-athlete sourced personal coverage (about 14 institutions), these institutions:
                 o Do not review the student-athlete's policies;
                 o Provide guidance to the student-athlete regarding deductibles; and
                 o Verify the student-athlete's personal coverage.

             Costs for Injuries not Covered by Insurance

             •   84 percent covered 100 percent of the uninsured injury cost through the athletic program;
             •   Out of pocket costs to the institution for uninsured injuries varied from a few hundred dollars to
                 millions of dollars; and
             •   86 percent reported that the student-athlete had no out of pocket expenses for uninsured
                 injuries.

             Other Coverages

             •   56 percent covered illness/medical that is unrelated to athletic program activities, most through
                 student health centers.

52
   The minimum total disability benefit is $400 per month for the first 12 months and $2700 per month for each month thereafter. The
minimum partial disability benefit is $270 per month for the first 12 months and $1,800 per month for each month thereafter. Total
disability and partial disability under the catastrophic injury insurance program is based upon physical function loss combined with
impacts on activities of daily living. It is not based on a vocational standard. Id.
53
   The death benefit is $25,000. ld.
54
   NCAA, NCAA Division I Student-Athlete Insurance Coverage Overall Findings~ February 2016,
https://www.ncaa.org/sites/default/files/20 l 6DI-SA-Insurance-Survey 20160525.pdf (last visited Jan. 23, 2020).
55 The nature of the alternate financial arrangements was not specified.
STORAGE NAME: pcb01.WTS.D0CX                                                                                                PAGE: 11
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             •   31 percent provide coverage for athletic related injuries after the student-athlete leaves school
                 or exhausts her or his NCAA athletic eligibility (duration not specified), while another 43 percent
                 provide coverage under certain conditions (conditions not specified); and
             •   87 percent do not provide enhancements to basic coverage like additional death benefits or
                 higher policy limits.

         NCAA Exceptional Student-Athlete Disability Insurance Program56

        In the early 1990s, the NCAA began a program to allow student-athletes with favorable professional
        prospects to protect their anticipated high future earnings from potential loss due to injury. The NCAA
        Exceptional Student-Athlete Disability Insurance Program began with participants in football and men's
        basketball and over the course of the decade expanded to include baseball, men's hockey, and
        women's basketball.

        To qualify, the student-athlete must have NCAA athletic eligibility remaining in the applicable sport and
        have demonstrated professional potential, as follows:

             •   Football - selection in the first two rounds of the upcoming National Football League draft;
             •   Basketball - selection in the first round of the upcoming National Basketball Association or
                 Women's National Basketball Association, as applicable;
             •   Baseball - selection in the first round of the upcoming Major League Baseball draft;
             •   Men's Hockey - selection in the first two rounds of the upcoming National Hockey League draft;
                 or
             •   Other Sports - underwritten on a case-by-case basis.

         If the student-athlete is determined to be eligible, she or he is deemed eligible for a premium finance
         loan. The loan must be repaid when the student-athlete signs a professional contract, a claim is made
         for a covered injury, or the coverage expires and the loan comes due.

         The following maximum coverages apply:

             •   Football - $10 million;
             •   Men's Basketball - $10 million;
             •   Women's Basketball - $250,000;
             •   Baseball - $5 million;
             •   Men's Hockey - $3 million; or
             •   Other Sports - underwritten on a case-by-case basis.

         This program only insures against total disability; 57 it does not provide benefits based on partially
         reduced professional earning capacity (i.e., if the insured signs a professional athletic performance




56
   NCAA, Exceptional Student-Athlete Disability Insurance Program, http://www.ncaa.org/about/resources/insurance/exceptional-
student-athlete-disability-insurance-program (last visited Jan. 24, 2020).
57
   Accidental death coverage is included in the coverage with a benefit equal to the coverage premium. Additional accidental death
coverage up to the maximum total disability coverage is provided for an additional premium.
STORAGE NAME: pcb01.WTS.D0CX                                                                                                 PAGE: 12
DATE: 1/26/2020
         contract in any amount, there is no coverage). The insured student-athlete must prove permanent total
         disability, based on specified criteria, 58 or qualify for a presumptive disability benefit. 59

         Effect of the Bill

         Compensation for Name, Image, Likeness, or Persona

         The bill authorizes intercollegiate athletes to earn compensation for their name, image, likeness, or
         persona (NILP). 60 The bill seeks to preserve the integrity, quality, character, and amateur nature of
         intercollegiate athletics while maintaining a clear distinction between amateur intercollegiate athletics
         and professional sports by:
             • Providing that compensation for athletic performance or attendance at a particular institution
                 remains prohibited.
             • Allowing NILP compensation only if it is provided by a third party unaffiliated with the athlete's
                 postsecondary educational institution.

         The bill prohibits postsecondary educational institutions receiving state aid (Florida College System
         institutions, State University System institutions, and private colleges and universities) from:
             • Preventing or unduly restricting an intercollegiate athlete from earning NILP compensation.
             • Preventing or unduly restricting an intercollegiate athlete from obtaining professional
                  representation for purposes of seeking NILP compensation.
                      o For such professional representation, an intercollegiate athlete may retain an athlete
                          agent licensed in Florida or an attorney licensed and in good standing with the Florida
                          Bar.
             • Revoking or reducing grant-in-aid awards for an intercollegiate athlete who earns compensation
                  for his or her NILP.

         The bill specifies that the terms of a contract for NILP compensation may not conflict with the terms of
         the intercollegiate athlete's team contract or extend beyond the time of the athlete's participation in an
         athletic program at a postsecondary educational institution. Athletes under 18 years of age must have
         any such contract reviewed by a court.

         Additionally, the bill allows an athlete agent, or attorney, to represent an intercollegiate athlete in
         securing compensation for use of her or his name, image, likeness, and persona under s. 1006. 72,
         F.S., regardless of athletic conference or collegiate athletic association rules, bylaws, regulations, and
         policies to the contrary.

         Insurance Requirements and Scholarship Protection



58
   Permanent total disability is established when the following criteria are met:
     1. The student-athlete's disability results from an injury or sickness.
     2. The student-athlete's injury or sickness occurs while the policy is in force.
     3. The student-athlete is under the regular care ofa qualified physician.
     4. The student-athlete is unable to engage in sporting activity at the professional level.
     5. The applicable elimination period has elapsed (12 months).
     6. The student-athlete's total disability prevents the signing of any employment contract with any professional team as a
         professional athlete in the applicable sporting activity.
Id.
59
   Permanent total disability is presumed when the student-athlete's disability has been medically determined to be the result of entire
and irrecoverable loss of sight of both eyes or hearing in both ears; total and irrecoverable loss of use of one hand or one foot;
quadriplegia; or paraplegia and that the disability is thus preventing the student-athlete from ever participating in the applicable
sporting activity at the professional level. Id.
60 The bill includes the term "persona" to more broadly protect an intercollegiate athlete's right of publicity. "Persona" is defined as

"the personality that a person ... projects in public." The Merriam-Webster.com Dictionary, https://www.merriam-
webster.com/dictionary/persona (last visited Jan. 26, 2020).
STORAGE NAME: pcb01.WTS.DOCX                                                                                                    PAGE: 13
DATE: 1/26/2020
       In addition, the bill requires each postsecondary educational institution receiving state aid to:
           • Provide intercollegiate athletes with health and disability insurance for the duration of the time it
               takes the athlete to recover from the sports-related injury and a death benefit of $25,000.
               Injuries must be timely reported and the right to benefits ends if no benefits are necessary for 2
               years.
           • Maintain grant-in-aid (i.e., scholarships) for intercollegiate athletes for:
                   o Up to one academic year or until the athlete completes their primary undergraduate
                       degree, whichever is shorter, when the athlete has exhausted athletic eligibility.
                   o Up to five academic years or until the athlete completes their primary undergraduate
                       degree, whichever is shorter, when the athlete is determined to be medically ineligible to
                       participate in athletics due to an injury that occurred while participating in an athletic
                       program.
           • Conduct a financial and life skills workshop at the beginning of the intercollegiate athlete's first
               and third academic years.

       The bill directs the Board of Governors and the State Board of Education to adopt regulations and rules
       to implement the provisions of the bill.

   B. SECTION DIRECTORY:
       Section 1      Creates s. 1006.72, F.S.; providing legislative findings; providing definitions; authorizing
                      certain intercollegiate athletes to earn compensation for their names, images,
                      likenesses, and personas; providing requirements for such compensation; requiring
                      postsecondary educational institutions to maintain certain insurance for intercollegiate
                      athletes; requiring the Board of Governors and the State Board of Education to adopt
                      regulations and rules; prohibiting a postsecondary educational institution from preventing
                      or unduly restricting intercollegiate athletes from obtaining specified representation;
                      requiring athlete agents and attorneys to meet specified requirements; etc.

       Section 2      Amends s. 468.453, F.S.; providing requirements for certain athlete agents.

       Section 3      Providing for 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:
           None.

       2. Expenditures:
           None.

   C. DIRECT ECONOMIC IMPACT ON PRIVATE SECTOR:

STORAGE NAME: pcb01.WTS.D0CX                                                                              PAGE: 14
DATE: 1/26/2020
       None.

   D. FISCAL COMMENTS:
       The bill may have a negative, indeterminate fiscal impact on certain postsecondary educational
       institutions to the extent that additional funds are spent to meet certain insurance requirements as
       required in the bill.

                                                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 spend funds or take
          action requiring the expenditure 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:
          None.

   B. RULE-MAKING AUTHORITY:
       The bill directs the Board of Governors and the State Board of Education to adopt regulations and rules
       to implement the provisions of s. 1006.72, F.S.

   C. DRAFTING ISSUES OR OTHER COMMENTS:
       None.

                         IV. AMENDMENTS/ COMMITTEE SUBSTITUTE CHANGES




STORAGE NAME: pcb01.WTS.D0CX                                                                              PAGE: 15
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 1                                         A bill to be entitled
 2              An act relating to intercollegiate athlete
 3              compensation and rights; creating s. 1006.72, F.S.;
 4              providing legislative findings; providing definitions;
 5              authorizing certain intercollegiate athletes to earn
 6              compensation for their names, images, likenesses, and
 7              personas; providing requirements for such
 8              compensation; prohibiting postsecondary educational
 9              institutions from adopting or maintaining rules,
10              regulations, standards, or other requirements that
11              prevents or unduly restricts intercollegiate athletes
12              from earning specified compensation; providing that
13              certain compensation does not affect certain
14              intercollegiate athlete eligibility; prohibiting a
15              postsecondary educational institution from
16              compensating intercollegiate athletes or prospective
17              intercollegiate athletes for their names, images,
18              likenesses, or personas; prohibiting a postsecondary
19              educational institution from preventing or unduly
20              restricting intercollegiate athletes from obtaining
21              specified representation; requiring athlete agents and
22              attorneys to meet specified requirements; providing
23              that specified aid for intercollegiate athletes is not
24              considered compensation; prohibiting the revocation of
25              certain aid as a result of intercollegiate athletes

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26              earning certain compensation; providing approval
27              requirements for certain contracts for compensation
28              for intercollegiate athletes who are minors; providing
29              contract requirements; prohibiting intercollegiate
30              athletes from entering into contracts for specified
31              compensation that conflict with terms of her or his
32              team contract; providing intercollegiate athlete
33              contract disclosure requirements; requiring
34              postsecondary educational institutions to maintain
35              certain insurance for intercollegiate athletes;
36              providing requirements for such insurance; requiring
37              postsecondary educational institutions to provide
38              specified grant-in-aid to intercollegiate athletes
39              under certain circumstances and provide a specified
40              workshop; providing requirements for such grant-in-aid
41              and workshop; providing applicability; prohibiting the
42              use of state funds for specified purposes; providing
43              requirements for reporting certain injuries and claims
44              for benefits related to certain injuries; providing
45              requirements for certain disability compensation
46              benefits; prohibiting a postsecondary educational
47              institution from membership in specified associations,
48              conferences, or organizations; requiring the Board of
49              Governors and the State Board of Education to adopt
50              regulations and rules, respectively; amending s.

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51              468.453, F.S.; providing requirements for certain
52              athlete agents; providing an effective date.
53
54      Be It Enacted by the Legislature of the State of Florida:
55
56              Section 1.         Section 1006.72, Florida Statutes, is created
57      to read:
58              1006.72        Intercollegiate athlete compensation and rights.-
59      The Legislature finds that intercollegiate athletics provide
60      intercollegiate athletes with significant educational
61      opportunities. However, participation in intercollegiate
62      athletics should not infringe upon an intercollegiate athlete's
63      ability to earn compensation for her or his name, image,
64      likeness, or persona. An intercollegiate athlete must have an
65      equal opportunity to control and profit from the commercial use
66      of her or his name,               image, likeness, and persona and be
67      protected from unauthorized appropriation and commercial
68      exploitation of her or his right to publicity, including her or
69      his name, image, likeness, and persona. Moreover, an
70      intercollegiate athlete's inability to participate in
71      intercollegiate athletics due to an injury should not impair her
72      or his future health or academic success.
73               (1)    DEFINITIONS.-As used in this section, the term:
74               (a)    "Athletic program" means an intercollegiate athletic
75      program at a postsecondary educational institution.

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 76               (b)    "Disability insurance" means insurance covering
 77      disability compensation benefits for an intercollegiate athlete
 78      participating in an athletic program.
 79               (c)    "Health insurance" means primary health insurance
 80      covering injuries resulting from the intercollegiate athlete's
 81      participation in an athletic program that provides for all
 82      medically necessary treatment and care until the intercollegiate
 83      athlete is restored to her or his condition before the injury.
 84               (d)    "Injury" means an injury sustained by an
 85      intercollegiate athlete while participating in an athletic
 86      program's activities.
 87               (e)    "Insurance" means health insurance and disability
 88      insurance.
 89               (f)    "Intercollegiate athlete" means a student who
 90      participates in an athletic program. The term includes a former
 91      intercollegiate athlete who suffered an injury.
 92               (g)    "Partial disability" means the intercollegiate
 93      athlete's incapacity because of the injury to earn full-time
 94      wages.
 95               (h)    "Physician" means a physician licensed under chapter
 96      458, an osteopathic physician licensed under chapter 459, a
 97      podiatric physician licensed under chapter 461, or an
 98      optometrist licensed under chapter 463.
 99               (i)    "Postsecondary educational institution" means a state
100      university, a Florida College System institution, or a private

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101      college or university receiving aid under chapter 1009.
102               ( j)   "Total disability" means an intercollegiate athlete's
103      inability to earn wages because of an injury.
104               (2)    INTERCOLLEGIATE ATHLETES' COMPENSATION AND RIGHTS AND
105      POSTSECONDARY EDUCATIONAL INSTITUTIONS RESPONSIBILITIES.-
106               (a)    An intercollegiate athlete at a postsecondary
107      educational institution may earn compensation for her or his
108      name, image, likeness, or persona, as long as the compensation
109      is commensurate with the market value of the services provided.
110      To preserve the integrity, quality, character, and amateur
111      nature of intercollegiate athletics and to maintain a clear
112      separation between amateur intercollegiate athletics and
113      professional sports, such compensation may not be provided in
114      exchange for athletic performance or attendance at a particular
115      institution and may only be provided by a third party
116      unaffiliated with the intercollegiate athlete's postsecondary
117      educational institution.
118               (b)    A postsecondary educational institution may not adopt
119      or maintain a contract, rule, regulation, standard, or other
120      requirement that prevents or unduly restricts an intercollegiate
121      athlete from earning compensation for the use of her or his
122      name, image, likeness, or persona. Earning such compensation may
123      not affect the intercollegiate athlete's grant-in-aid or
124      athletic eligibility.
125               {c)    A postsecondary educational institution may not

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126      compensate a current or prospective intercollegiate athlete for
127      her or his name, image, likeness, or persona.
128               (d)    A postsecondary educational institution may not
129      prevent or unduly restrict an intercollegiate athlete from
130      obtaining professional representation by an athlete agent or
131      attorney engaged for the purpose of securing compensation for
132      her or his name, image, likeness, or persona. Pursuant to s.
133      468.453(8), an athlete agent representing an intercollegiate
134      athlete for purposes of securing compensation for her or his
135      name, image, likeness, or persona must be licensed under part IX
136      of chapter 468. An attorney representing an intercollegiate
137      athlete for purposes of securing compensation for her or his
138      name, image, likeness, or persona must be a member in good
139      standing of The Florida Bar.
140               (e)    Grant-in-aid, including cost of attendance, awarded to
141      an intercollegiate athlete by a postsecondary educational
142      institution is not compensation for the purposes of this
143      subsection, and may not be revoked or reduced as a result of an
144      intercollegiate athlete earning compensation or obtaining
145      professional representation under this subsection.
146               (f)    An intercollegiate athlete under the age of 18 years
147      must have any contract for compensation for her or his name,
148      image, likeness, or persona approved under ss. 743.08 and
149      743.09.
150               (g)    An intercollegiate athlete's contract for compensation

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151      for her or his name, image, likeness, or persona may not violate
152      this subsection.
153               (h)    An intercollegiate athlete may not enter into a
154      contract for compensation for her or his name,                       image, likeness,
155      or persona if a term of the contract conflicts with a term of
156      the intercollegiate athlete's team contract. A postsecondary
157      educational institution asserting a conflict under this
158      paragraph must disclose each relevant contract term that
159      conflicts with the team contract to the intercollegiate athlete
160      or her or his representative.
161               (i)    An intercollegiate athlete who enters into a contract
162      for compensation for her or his name, image, likeness, or
163      persona shall disclose the contract to the postsecondary
164      educational institution at which she or he is enrolled, in a
165      manner designated by the institution.
166               (j)    The duration of a contract for representation of an
167      intercollegiate athlete or compensation of an intercollegiate
168      athlete's name, image, likeness, or persona may not extend
169      beyond her or his participation in an athletic program at a
170      postsecondary educational institution.
171               (k)    Each postsecondary educational institution shall:
172              l.a.      Maintain for each intercollegiate athlete health
173      insurance and disability insurance that meets the requirements
174      of sub-subparagraphs c. and d.,                      respectively, by:
175              I.     Verifying that the intercollegiate athlete is provided

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176      the benefits required by this section by her or his own
177      insurance or insurance provided by an immediate family member;
178              II.      Providing insurance covering the intercollegiate
179      athlete;
180              III.      Participating in an insurance program, which provides
181      at least the benefits required by this section, offered by an
182      intercollegiate athletics sanctioning body or intercollegiate
183      athletics association of which the postsecondary educational
184      institution is a member; or
185              IV.     Any combination of sub-sub-subparagraphs I.-III.
186              b.      If the intercollegiate athlete's insurance under sub-
187      sub-subparagraph I. lapses or does not provide the required
188      medical benefits, the postsecondary educational institution must
189      provide coverage under sub-sub-subparagraph II. or sub-sub-
190      subparagraph III., or a combination thereof, beginning with the
191      first dollar of a claim. If coverage is secured under sub-sub-
192      subparagraph I., any deductible, copay, or coinsurance amounts
193      must be paid by the postsecondary educational institution. If
194      coverage is secured under sub-sub-subparagraph II. or sub-sub-
195      subparagraph III., or a combination thereof, the entire premium
196      and any deductible, copay, or coinsurance amounts must be paid
197      by the postsecondary educational institution.
198              c.      Health insurance under sub-subparagraph a. must include
199      dental benefits for dental conditions related to the injury,
200      medically necessary emergency and nonemergency medical

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201      transportation, professional and nonprofessional attendant care,
202      prosthetics, orthotics, durable medical equipment, and medically
203      necessary physical rehabilitation and vocational rehabilitation
204      benefits.
205              d.      Disability insurance under sub-subparagraphs a. must
206      provide at least $400 per month for the first 12 months of total
207      disability and $2,700 per month for each month of total
208      disability beyond the first 12 months of total disability; at
209      least $270 per month for the first 12 months of partial
210      disability and $1,800 per month for each month of partial
211      disability beyond the first 12 months of partial disability; and
212      a death benefit of at least $25,000.
213              2.      Provide an intercollegiate athlete who was receiving
214      athletic related grant-in-aid and is in good standing, an
215      equivalent grant-in-aid for:
216              a.    Up to one academic year or until the intercollegiate
217      athlete completes her or his primary undergraduate degree,
218      whichever is shorter, if the intercollegiate athlete has
219      exhausted athletic eligibility.
220              b.    Up to five academic years or until the intercollegiate
221      athlete completes her or his primary undergraduate degree,
222      whichever is shorter, if the intercollegiate athlete suffered an
223      injury, and an independent physician with a specialty
224      appropriate to each applicable injury determines that she or he
225      is medically ineligible to participate in intercollegiate

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226      athletics.
227              3.      Conduct a financial literacy and life skills workshop
228      for a minimum of 5 hours at the beginning of the intercollegiate
229      athlete's first and third academic years. The workshop shall, at
230      a minimum, include information concerning financial aid, debt
231      management, and a recommended budget for full and partial grant-
232      in-aid intercollegiate athletes based on the current academic
233      year's cost of attendance. The workshop shall also include
234      information on time management skills necessary for success as
235      an intercollegiate athlete and available academic resources.
236               (3)     LIMITATIONS.-
237               (a)     This section does not require the medical treatment of
238      a preexisting medical condition except to the extent that the
239      preexisting medical condition is aggravated by the injury or
240      treatment of the preexisting medical condition is medically
241      necessary to the treatment of the injury.
242               (b)     State funds may not be used to comply with the
243      requirements of this section.
244               (c)    An injury must be reported by the earlier of the 30th
245      day after occurrence of the injury, the 30th day after the
246      intercollegiate athlete knew or should have known that an injury
247      existed, or 2 years after the intercollegiate athlete separates
248      from the postsecondary educational institution.
249               (d)    An intercollegiate athlete's claim for benefits
250      related to an injury is barred after 2 years after the report of

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251      injury or 2 years after provision of compensable medical
252      treatment, whichever is later.
253               (e)    For a former intercollegiate athlete receiving
254      disability compensation benefits under this section who is
255      earning wages while receiving such benefits or is determined by
256      a functional capacity expert to be capable of earning wages,
257      beginning 12 months after the date of the injury, the benefit
258      shall be reduced by an amount equal to one half of the former
259      intercollegiate athlete's after tax earnings in excess of the
260      base amount. The base amount shall be $1,000 for the first 12
261      months the reduction provided by this paragraph is applied and
262      shall increase by 2.5 percent annually thereafter. If the former
263      intercollegiate athlete is determined by a functional capacity
264      expert to have a wage earning capacity, but is not earning
265      wages, the disability compensation benefit shall be reduced by
266      one-half for any period more than 12 months after the date of
267      the injury that the former intercollegiate athlete is not
268      earning wages, unless the former intercollegiate athlete
269      documents her or his employment search, which must include at
270      least four employment applications submitted monthly.
271               (4)    PROHIBITION OF MEMBERSHIP.-A postsecondary educational
272      institution may not be a member of any association, conference,
273      or organization that requires its members to comply with bylaws,
274      regulations, or policies that are inconsistent with this
275      section.

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FLORIDA                        H   O   U   S   E      0   F      R E P R E S E N T A T I V E S



         PCB WTS 20-01                                                                 2020




276               (5)    REGULATIONS AND RULES.-The Board of Governors and the
277      State Board of Education shall adopt regulations and rules,
278      respectively, to implement this section.
279              Section 2.         Subsections (8) and (9) are added to section
280      468.453, Florida Statutes, to read:
281              468.453       Licensure required; qualifications; license
282      nontransferable; service of process; temporary license; license
283      or application from another state.-
284               (8)    Notwithstanding subsection (3), a person must hold a
285      valid license as an athlete agent to act as an athlete agent
286      representing an intercollegiate athlete for purposes of
287      contracts authorized under s. 1006.72.
288               (9)    Notwithstanding athletic conference or collegiate
289      athletic association rules, bylaws, regulations, and policies to
290      the contrary, an athlete agent may represent an intercollegiate
291      athlete in securing compensation for use of her or his name,
292      image, likeness, and persona under s. 1006.72.
293              Section 3.         This act shall take effect July 1, 2020.




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