II

104TH CONGRESS

2D SESSION S. 1529

To provide for the Federal treatment of certain relocating National Football

League franchises, and for other purposes.

IN THE SENATE OF THE UNITED STATES

JANUARY 26, 1996

Mr. DEWINE (for himself and Mr. GLENN) introduced the following bill; which

was read twice and referred to the Committee on Finance

A BILL

To provide for the Federal treatment of certain relocating

National Football League franchises, and for other purposes.

1 Be it enacted by the Senate and House of Representa2 tives of the United States of America in Congress assembled,

3 SECTION 1. SHORT TITLE.

4 This Act may be cited as the ‘‘Team Relocation Tax5 payer Protection Act of 1996’’.

6 SEC. 2. TREATMENT OF RELOCATING NATIONAL FOOTBALL

7 LEAGUE FRANCHISES.

8 (a) EFFECT ON INTERSTATE COMMERCE.—

9 (1) FINDINGS.—The Congress finds that the

10 conduct of a National Football League franchise oc-
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1 curs in interstate commerce and has a substantial

2 effect on interstate commerce and that when the

3 facts and circumstances described in subsection

4 (c)(1) are combined, there arises substantial poten5 tial for harmful effects on interstate commerce.

6 (2) PURPOSE.—The purpose of this section is

7 to deter such harmful effects.

8 (3) NO PREEMPTION OF STATE OR LOCAL AC9 TIONS.—Such other actions as may be taken by a

10 State or local governmental unit or entity referred to

11 in subsection (c)(1)(A) to address the facts and cir12 cumstances described in subsection (c)(1) are not

13 preempted by this section and do not burden inter14 state commerce.

15 (b) FEDERAL TREATMENT.—Notwithstanding any

16 other provision of law—

17 (1) any entity or person described in paragraph

18 (1) or (2) of subsection (c)—

19 (A) may not benefit, directly or indirectly,

20 from any expenditure of Federal funds, and

21 (B) shall not be allowed any Federal tax

22 exclusion, deduction, credit, exemption, or al23 lowance,
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1 in connection with or in any way related to the relo2 cation of a National Football League franchise of an

3 entity or person described in subsection (c)(1); and

4 (2) the interest paid or accrued on any bond,

5 any portion of the proceeds of which is used or is

6 to be used to provide facilities that are used or are

7 to be used in whole or in part by any entity or per8 son described in paragraph (1) or (2) of subsection

9 (c), shall not be exempt from any Federal tax.

10 (c) ENTITY OR PERSON DESCRIBED.—For purposes

11 of this section—

12 (1) GENERAL DESCRIPTION.—An entity or per13 son is described in this paragraph if—

14 (A) the entity or person has conducted reg15 ular season home football games through own16 ership of a franchise in the National Football

17 League in facilities—

18 (i) which are owned, directly or indi19 rectly, by a State or local governmental

20 unit or entity, or

21 (ii) which are financed by a Federal,

22 State, or local governmental unit or entity;

23 (B) the entity or person has publicly an24 nounced that such entity or person has the in25 tention to conduct such football games outside
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1 the facilities described in subparagraph (A) be2 fore the expiration of the period during which

3 such governmental unit or entity has authorized

4 the entity or person to use such facilities;

5 (C) the entity or person has publicly an6 nounced that such entity or person has the in7 tention to conduct such football games in facili8 ties—

9 (i) to be owned, directly or indirectly,

10 by a State or local governmental unit or

11 entity, or

12 (ii) to be financed by a Federal, State,

13 or local governmental unit or entity;

14 (D) in the National Football League sea15 son preceding the announcement of the inten16 tion of the entity or person to relocate, attend17 ance at the regular season home football games

18 of such entity or person averaged at least 75

19 percent of normal capacity as previously pub20 lished by the National Football League with re21 spect to such season; and

22 (E) within the period of 1 year before or

23 after such announcement by the entity or per24 son, an election or referendum has been held by

25 the State or local governmental unit in which
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1 the facilities described in subparagraph (A) are

2 located and the voters have approved a tax in3 crease or extension of a tax, or have failed to

4 repeal any such tax increase or extension, in5 tended by such governmental unit to be used as

6 part of the financing for improved facilities or

7 new facilities for such football games of such

8 entity or person.

9 (2) RELATED PERSON.—

10 (A) IN GENERAL.—An entity or person is

11 described in this paragraph if such entity or

12 person is a related person to an entity or per13 son described in paragraph (1).

14 (B) APPLICATION OF CERTAIN RULES.—

15 For purposes of this paragraph, a person or en16 tity shall be treated as a related person to an

17 entity or person described in paragraph (1) if—

18 (i) under the terms of section

19 144(a)(3) of the Internal Revenue Code of

20 1986, such person or entity would be treat21 ed as a related person to an entity or per22 son described in paragraph (1), or

23 (ii) such person or entity is a succes24 sor in interest to an entity or person de-
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1 scribed in paragraph (1) or to any related

2 person.

3 (C) RULES REGARDING CERTAIN RELA4 TIONSHIPS.—In determining whether a person

5 or entity is a related person to an entity or per6 son described in paragraph (1), the rules of sec7 tions 144(a)(3), 267, 707(b), and 1563 of the

8 Internal Revenue Code of 1986 shall be ap9 plied—

10 (i) by substituting ‘‘at least 25 per11 cent’’ for ‘‘more than 50 percent’’ each

12 place it appears therein and by determin13 ing such percentage on the basis of the

14 highest percentage of the stock or other in15 dices of ownership that any person or en16 tity has owned directly or indirectly at any

17 time after December 31, 1991,

18 (ii) by treating a person’s step-chil19 dren or step-grandchildren as the person’s

20 natural children or grandchildren, and

21 (iii) by treating all children and step22 children of such person as if they have not

23 attained the age of 21 years.

24 (d) BANKRUPTCY VENUE.—Notwithstanding any

25 other provision of law, including titles 11 and 28 of the
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1 United States Code, any case under such title 11 with re2 spect to an entity or person described in paragraph (1)

3 or (2) of subsection (c) may be commenced only in the

4 district court for the judicial district in which the principal

5 place of business in the United States of such entity or

6 person has been located during the greatest part of the

7 3-year period immediately preceding the commencement of

8 such case.

9 (e) EFFECTIVE DATE.—This section shall apply to—

10 (1) any expenditure of Federal funds on or

11 after the date of the introduction of this Act,

12 (2) any case commenced under title 11, United

13 States Code, after November 1, 1995, and

14 (3) any Federal tax exclusion, deduction, credit,

15 exemption, or allowance for any taxable period end16 ing after December 31, 1994.

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