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SECOND REGULAR SESSION
SENATE BILL NO. 1480
103RD GENERAL ASSEMBLY
INTRODUCED BY SENATOR BRATTIN.
6419S.03I KRISTINA MARTIN, Secretary
AN ACT
To amend chapter 49, RSMo, by adding thereto one new section relating to public facilities.
Be it enacted by the General Assembly of the State of Missouri, as follows:
Section A. Chapter 49, RSMo, is amended by adding thereto 1
one new section, to be known as section 49.700, to read as 2
follows:3
49.700. 1. This section shall be known and may be 1
cited as the "Missouri Sports Franchise Responsibility Act". 2
2. As used in this section, the following terms shall 3
mean: 4
(1) "Department", the Missouri department of economic 5
development; 6
(2) "Governing body", the governing body of: 7
(a) A county, a municipality, or a city not within a 8
county that owns a public facility; or 9
(b) Any authority, board, commission, or other 10
political subdivision created pursuant to state law that 11
owns a public facility; 12
(3) "Public facility", any building or facility owned 13
by: 14
(a) A county, a municipality, or a city not within a 15
county; or 16
(b) Any authority, board, commission, or other 17
political subdivision created by or pursuant to state law 18
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for the purpose of owning or operating public facilities on 19
behalf of one or more counties or municipalities; 20
(4) "Reasonably adaptable or usable", capable of being 21
put to another lawful public or commercial use without 22
demolition or substantial reconstruction, using 23
modifications that are: 24
(a) Consistent with applicable building, fire, safety, 25
and accessibility codes; 26
(b) Technically feasible using ordinary construction 27
methods; and 28
(c) Economically practicable, taking into account the 29
physical characteristics of the public facility and 30
prevailing market conditions, but without regard to the 31
maximum or highest potential value of the public facility; 32
(5) "Substantial reconstruction", construction 33
activity that materially alters the structural framework, 34
load-bearing elements, or fundamental design of a public 35
facility, including the removal or replacement of primary 36
structural components, and that exceeds ordinary renovation, 37
repair, or reconfiguration undertaken to accommodate a 38
different tenant or use. "Substantial reconstruction" shall 39
include work that would customarily require: 40
(a) Removal of major structural systems; or 41
(b) Reconfiguration of the facility such that its 42
essential physical form or functional layout is 43
fundamentally changed. 44
3. (1) Any lessee of a public facility that is leased 45
for the lessee's exclusive or primary use may be liable, as 46
provided in this section, for a proportionate share of the 47
reasonable costs of demolition or substantial reconstruction 48
of such public facility if, upon termination or expiration 49
of the lease, the public facility is left in a condition 50
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that is not reasonably adaptable or usable for another 51
lawful public or commercial use without demolition or 52
substantial reconstruction. 53
(2) Liability under this section shall apply only to 54
the extent that the condition described in subdivision (1) 55
of this subsection is attributable to the lessee's exclusive- 56
use configuration of the public facility or to improvements 57
installed, constructed, or financed by or on behalf of the 58
lessee, including tenant-specific improvements financed in 59
whole or in part with public funds. 60
(3) The lessee's liability, if any, shall be limited 61
to a proportionate share of the reasonable and necessary 62
costs of demolition or substantial reconstruction that are 63
directly attributable to such exclusive-use configuration or 64
lessee-installed improvements and shall not include costs 65
attributable solely to general obsolescence, ordinary wear 66
and tear, changes in market demand, or redevelopment 67
decisions unrelated to the lessee's use of the public 68
facility. The lessee's proportionate share of the 69
reasonable and necessary costs of demolition or substantial 70
reconstruction shall not exceed the product of one percent 71
of the reasonable and necessary costs of demolition or 72
substantial reconstruction multiplied by the number of years 73
the lessee has leased the public facility. 74
4. Upon the request of a governing body, the 75
department shall, based on substantial evidence and any 76
independent expert analysis it deems necessary: 77
(1) Determine whether the public facility is 78
reasonably adaptable or usable without demolition or 79
substantial reconstruction; 80
(2) Identify whether the condition of the public 81
facility is attributable to: 82
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(a) The lessee's exclusive-use configuration; 83
(b) Lessee-installed improvements; or 84
(c) Publicly funded lessee-specific improvements; 85
(3) Determine reasonable costs attributable to the 86
conditions described in subdivision (2) of this subsection; 87
and 88
(4) Allocate a proportional share of costs to the 89
lessee. 90
5. Upon the determination made by the department 91
pursuant to subsection 4 of this section, the department 92
shall serve upon the governing body and the lessee, by 93
certified mail with return receipt requested, written 94
findings of fact, any independent expert reports utilized, 95
all itemized cost estimates, and an analysis explicitly 96
attributing causation and costs to the lessee and governing 97
body. Service shall be deemed complete upon mailing. 98
6. Within thirty days after service of the 99
determination provided in subsection 5 of this section, a 100
lessee may appeal the department's determination to the 101
administrative hearing commission, which shall hear the 102
appeal as a contested case pursuant to chapter 621. In any 103
such appeal, the department shall bear the burden of proof 104
that the proportional share of costs to the lessee is 105
reasonable, and the administrative hearing commission may 106
affirm, reverse, or modify the department's determination. 107
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