[Congressional Record Volume 146, Number 116 (Tuesday, September 26, 2000)]
[Senate]
[Page S9257]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]




                STOP TAX-EXEMPT ARENA DEBT ISSUANCE ACT

  Mr. MOYNIHAN. Mr. President, early this Congress, I introduced S. 
224, the Stop Tax-Exempt Arena Debt Issuance Act or STADIA for short. 
This bill would end a tax subsidy that inures largely to the benefit of 
wealthy sports franchise owners, by eliminating tax-subsidized 
financing of professional sports facilities. This legislation would 
close a loophole that provides an unintended Federal subsidy--in fact, 
contravenes Congressional intent--and that contributes to the 
enrichment of persons who need no Federal assistance whatsoever.
  This is the fourth time I have introduced this legislation, and I 
chose to keep the original effective date for a number of reasons. Most 
importantly, because Congress intended to eliminate the issuance of 
tax-exempt bonds to finance professional sports facilities as part of 
the Tax Reform Act of 1986.
  At the same time, I recognized that a few localities may have 
expended significant time and funds in planning and financing a 
professional sports facility, in reliance upon professional advice on 
their ability to issue tax-exempt bonds. Thus, in my original 
introductory statement, I specifically requested comment regarding the 
need for equitable relief for stadiums already in the planning stages.
  In response to my request, several localities that had been planning 
to finance professional sports facilities with tax-exempt bonds came 
forward and provided the details necessary to craft appropriate 
``binding contract'' type transitional relief. Accordingly, I agreed to 
change the bill in subsequent Congresses to exempt projects which had 
progressed to a point where it would be unfair to stop them.
  Now I have been contacted by others who make the case that retaining 
the 1996 effective date creates a lack of certainty which is unhealthy 
for communities desiring new stadiums and for the bond market itself. 
Therefore, I am inserting into the record my intention to modify the 
effective date if and when S. 224 is adopted in committee or on the 
Senate floor.
  Mr. President, I ask that this language be printed in the Record.
  There being no objection, the material was ordered to be printed in 
the Record, as follows:

       (b) Effective Date.--
       (1) In general.--The amendments made by this section shall 
     apply to bonds issued on or after January 19, 1999--
       (2) Exception for construction, binding agreements, or 
     approved projects.--The amendments made by this section shall 
     not apply to bonds--
       (A) The proceeds of which are used for--
       (i) the construction or rehabilitation of a facility--
       (I) if such construction or rehabilitation began before 
     January 19, 1999 and was completed on or after such date, or
       (II) if a State or political subdivision thereof has 
     entered into a binding contract before January 19, 1999 that 
     requires the incurrence of significant expenditures for such 
     construction or rehabilitation and some of such expenditures 
     are incurred on or after such date; or
       (ii) the acquisition of a facility pursuant to a binding 
     contract entered into by a State or political subdivision 
     thereof before January 19, 1999, and
       (B) which are the subject of an official action taken by 
     relevant government officials before January 19, 1999--
       (i) approving the issuance of such bonds, or
       (ii) approving the submission of the approval of such 
     issuance to a voter referendum.
       (3) Exception for final bond resolutions.--The amendments 
     made by this section shall not apply to bonds the proceeds of 
     which are used for the construction or rehabilitation of a 
     facility if a State or political subdivision thereof has 
     adopted a final bond resolution before January 19, 1999, 
     authorizing the issuance of such bonds. For this purpose, a 
     final bond resolution means that all necessary governmental 
     approvals for the issuance of such bonds have been completed.
       (4) Significant expenditures.--For purposes of paragraph 
     (2)(A)(i)(II), the term `significant expenditures' means 
     expenditures equal to or exceeding 10 percent of the 
     reasonably anticipated cost of the construction or 
     rehabilitation of the facility involved.

                          ____________________