SENATE BILL REPORT

REESB 5955

BYSenators McDermott, Talmadge, Fleming, Warnke, Rinehart, Moore, Bender and Garrett

Authorizing city, county, and state ownership of professional sports franchises.

Senate Committee on Commerce & Labor

Senate Hearing Date(s):March 5, 1987

Majority Report:  Do pass as amended.

      Signed by Senators Warnke, Chairman; Smitherman, Vice Chairman; Tanner, Vognild, West, Williams, Wojahn.

Senate Staff:Bill Lynch (786-7427)

                  March 23, 1987

AS PASSED SENATE, MARCH 20, 1987

BACKGROUND:

A professional sports franchise draws many visitors to the area where it is located.  In addition, it is a factor that some businesses consider when deciding where to locate a facility.  Some professional sports franchises have moved their locations in recent years.  These moves have resulted in a loss of income as well as prestige to the former host areas.

There is no existing authority for a city, code city, or county to own and operate a professional sports franchise.

SUMMARY:

Any city, code city, or county may own and operate an existing professional sports franchise, either individually or collectively, when the owners of such a franchise announce their intention to sell or move a franchise.

If a city, code city, or county purchases a professional sports franchise, then a public corporation must be created to manage and operate the franchise.  The public corporation would have the same powers as other public corporations created by cities and counties.  These powers include the right to sue and be sued, to enter into contracts, and own real and personal property.  Such powers do not include the right of eminent domain, the power to levy taxes, or the power to levy special assessments.

Fiscal Note:      none requested

Effective Date:The bill contains an emergency clause and takes effect immediately.

Senate Committee - Testified: Senator McDermott