Amends TCA Title 67, Chapter 6.

ON APRIL 27, 2021, THE HOUSE ADOPTED AMENDMENT #1 AND PASSED HOUSE BILL 1437, AS AMENDED. AMENDMENT #1 rewrites the bill. This amendment allocates certain revenue from state and local sales taxes to pay for capital projects and debt service associated with a sports facility of a major league professional football franchise, and includes allocations from certain revenue derived from sales in a designated area contiguous to the sports facility and surrounding parking area of the franchise, all as discussed below. Present law establishes a general allocation of state sales tax revenue, but also provides for certain special allocations. One such special allocation provides for the apportionment and distribution of certain state sales tax revenue in a municipality with a sports authority that has secured a major league professional baseball (American or National League), football (National Football League or Canadian Football League, or its successors or assigns), basketball (National Basketball Association), or major or minor league professional hockey (National Hockey League, or Central Hockey League or East Coast Hockey League) franchise for that municipality. This special allocation applies if the municipality or any board or instrumentality of the municipality reimburses the state for any costs to reallocate apportionments of the tax revenue under this provision. The amount apportioned and distributed to the municipality is equal to the amount of state tax revenue derived from the sale of admissions to events of the major or minor league professional sports franchise and also the sale of food and drink sold on the premises of the sports facility in conjunction with those games, parking charges, and related services, as well as the sale by the major or minor league professional sports franchise within the county in which the games take place of authorized franchise goods and products associated with the franchise's operations as a professional sports franchise. The amount distributed to the municipality is for the exclusive use of the sports authority, or comparable municipal agency. This amendment removes professional football from the above-described provisions and instead establishes the following: (1) If there exists in a municipality a sports authority and if that sports authority has secured a major league professional football franchise (National Football League or Canadian Football League, or its successors or assigns), and only if such municipality or any board or instrumentality of the municipality reimburses the state for any costs to reallocate apportionments of such tax revenue, then an amount will be apportioned and distributed to the municipality equal to the amount of state tax revenue derived from the sale of admissions to all events occurring at the sports facility of the major league professional football franchise and also all sales of food, drinks, and merchandise sold on the premises of the sports facility in conjunction with those events, all parking charges, and all related services, all sales by the major league professional football franchise within the county in which the games take place of authorized franchise goods and products associated with the franchise's operations as a major league professional football franchise. This allocation must continue so long as a major league professional football franchise (NFL or CFL or successor organizations) holds a lease on the sports facility; provided, however, that the following amounts are excluded from this allocation to pay annual outstanding bonded debt repayment obligations through the fiscal year 2029, or the date such existing bonded debt is repaid, whichever is sooner: (A) Fiscal Year 2022 - $3.7 million (B) Fiscal Year 2023 - $3.35 million (C) Fiscal Year 2024 - $3.5 million (D) Fiscal Year 2025 - $3.3 million (E) Fiscal Year 2026 - $3.3 million (F) Fiscal Year 2027 - $3.3 million (G) Fiscal Year 2028 - $3.2 million (H) Fiscal Year 2029 - $3.2 million. (2) Amounts apportioned and distributed to the municipality in accordance with this amendment will be for the exclusive use of the sports authority, or comparable municipal agency formally designated by the municipality or such other person as designated by the sports authority, to fund capital projects and the payment of debt service for capital projects at the sports facility of the major league professional football franchise, associated with the sports facility of the major league professional football franchise. (3) In addition to the allocations provided in (1), an amount must also be apportioned and distributed to the municipality equal to 1/2 the amount of state tax revenue (exclusive of the revenue earmarked pursuant to the present law provisions regarding the allocation of revenue from certain prior tax increases) derived from all sales in a designated area not exceeding 130 acres contiguous to the sports facility and surrounding parking area of the major league professional football franchise; provided, that such acreage is not separated by a flowing navigable waterway. Such acreage must be designated by ordinance or resolution of the legislative body of the municipality in which the sports facility is located, and will be subject to the approval of the commissioner of finance and administration. Such amounts distributed to the municipality are for the exclusive use of the sports authority, or comparable municipal agency formally designated by the municipality, or such other person as designated by the sports authority, to fund capital projects and the payment of debt service for capital projects at the sports facility of the major league professional football franchise, associated with the sports facility of the major league professional football franchise, or any onsite or offsite infrastructure necessary for the operation of the sports facility of the major league professional football franchise. Apportionment and distribution of state tax revenue pursuant to this provision will continue for a period of 30 years after the issuance of the initial debt service to be underwritten by the sports authority, or comparable municipal agency formally designated by the municipality, or such other person as designated by the sports authority, or 35 years from the effective date of this amendment, whichever is sooner; provided, however, that such time periods are not affected by the pre-payment or satisfaction of underwritten debt service prior to 30 years after the issuance of the initial debt service. This amendment requires that 36 months after the creation of such designated area, and continuing every 36 months thereafter, the sports authority, or comparable municipal agency formally designated by the municipality, or such other person as designated by the sports authority must prepare and submit reports detailing the fiscal performance of the designated area to the finance, ways and means committees of the house of representatives and the senate and the department of finance and administration. This amendment also revises the following present law provisions: (1) Present law provides that in lieu of distribution to any municipality, amounts derived from a National Football League franchise are earmarked and allocated specifically and exclusively to the general fund. Under this present law provision, any such distribution to a municipality is limited to a period of 30 years, which is concurrent with the time limitation established by the provision described in item (2) below. This amendment instead provides that any distribution to a municipality as provided for by the present law provision governing special allocations for sports authorities is limited to a period of 30 years, which must be concurrent with the time limitation established by item (2) below. Under this amendment, following the expiration of such 30-year period, all amounts that would have otherwise been distributed to the municipality or retained in lieu of distribution will be allocated as provided elsewhere without regard to the present law provision governing special allocations for sports authorities; and (2) Under present law, bonds issued relative to the construction of a sports facility may not be issued for a term longer than 30 years from the date the first game is played by the professional sports franchise in a municipality. This amendment clarifies that such provision applies to bonds issued relative to the construction of a sports facility for a sports franchise listed in the present law provision governing special allocations for sports authorities. This amendment makes corresponding changes in the provisions governing the allocation of local sales tax revenue, with the exception of the provision for whereby certain amounts are excluded in specified fiscal years, as discussed above.