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.
Summary drafted by a model from the document's text below and checked by script against that text before publication. It is a navigation aid, not a reading of what the document proves. Where AI is used
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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.
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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).
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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.
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• 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.
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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.
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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).
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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.
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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.
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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.
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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.
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• 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
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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:
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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
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FLORIDA H O U S E 0 F REPRESENTATIVES
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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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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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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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
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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).
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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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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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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.
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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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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.
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• 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
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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.
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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.
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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).
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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:
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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
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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
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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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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