HB 1705 2003
1	CHAMBER ACTION
2
3
4
5
6	The Committee on Commerce recommends the following:
7
8	Committee Substitute
9	Remove the entire bill and insert:
10
11	A bill to be entitled
12	An act relating to commercial development and capital
13	improvements; amending s. 212.20, F.S.; providing for
14	distribution of a portion of revenues from the tax on
15	sales, use, and other transactions to a motorsports
16	entertainment complex; providing a limit on such
17	distribution; creating s. 288.1170, F.S.; providing
18	definitions; providing for certification of such facility
19	by the Office of Tourism, Trade, and Economic Development
20	of the Executive Office of the Governor; providing
21	requirements for certification; requiring specified
22	notice; providing for annual recertification; providing
23	for use of the funds distributed to a motorsports
24	entertainment complex; providing for audits by the
25	Department of Revenue; providing an effective date.
26
27	WHEREAS, it is the finding of the Legislature that Florida
28	has long been the preeminent site in the nation for motorsports
29	racing, and
30	WHEREAS, motorsports racing has been a major tourist
31	attraction in Florida for nearly 100 years, and
32	WHEREAS, motorsports entertainment is the fastest growing
33	sports industry in the United States, and
34	WHEREAS, as a result of the increased popularity of
35	motorsports racing, many new motorsports facilities are being
36	constructed in other states, and
37	WHEREAS, to continue to attract spectators to sanctioned
38	championship motorsports events, the owner or operator of a
39	motorsports entertainment complex must build additional
40	spectator seating and renovate existing facilities to improve
41	the amenities available to spectators, and
42	WHEREAS, attracting, retaining, and providing favorable
43	conditions for conducting sanctioned championship motorsports
44	events and the continued development of the motorsports
45	entertainment industry in Florida provides skilled-employment
46	opportunities for citizens of this state, and
47	WHEREAS, continued development and improvement of Florida's
48	motorsports entertainment industry is vital to Florida's tourism
49	industry and to state revenues, and
50	WHEREAS, the motorsports entertainment industry is a major
51	contributor to Florida's economic development because of the
52	technology and service businesses that provide goods and
53	services to the industry, and
54	WHEREAS, the provisions of this act are necessary to
55	protect and strengthen Florida's motorsports entertainment
56	industry, and the purposes to be achieved by this act are
57	predominately public purposes vital to the protection and
58	improvement of Florida's economy, NOW, THEREFORE,
59
60	Be It Enacted by the Legislature of the State of Florida:
61
62	Section 1. Paragraph (d) of subsection (6) of section
63	212.20, Florida Statutes, is amended to read:
64	212.20 Funds collected, disposition; additional powers of
65	department; operational expense; refund of taxes adjudicated
66	unconstitutionally collected.--
67	(6) Distribution of all proceeds under this chapter and s.
68	202.18(1)(b) and (2)(b) shall be as follows:
69	(d) The proceeds of all other taxes and fees imposed
70	pursuant to this chapter or remitted pursuant to s. 202.18(1)(b)
71	and (2)(b) shall be distributed as follows:
72	1. In any fiscal year, the greater of $500 million, minus
73	an amount equal to 4.6 percent of the proceeds of the taxes
74	collected pursuant to chapter 201, or 5 percent of all other
75	taxes and fees imposed pursuant to this chapter or remitted
76	pursuant to s. 202.18(1)(b) and (2)(b) shall be deposited in
77	monthly installments into the General Revenue Fund.
78	2. Two-tenths of one percent shall be transferred to the
79	Ecosystem Management and Restoration Trust Fund to be used for
80	water quality improvement and water restoration projects.
81	3. After the distribution under subparagraphs 1. and 2.,
82	9.653 percent of the amount remitted by a sales tax dealer
83	located within a participating county pursuant to s. 218.61
84	shall be transferred into the Local Government Half-cent Sales
85	Tax Clearing Trust Fund.
86	4. After the distribution under subparagraphs 1., 2., and
87	3., 0.065 percent shall be transferred to the Local Government
88	Half-cent Sales Tax Clearing Trust Fund and distributed pursuant
89	to s. 218.65.
90	5. For proceeds received after July 1, 2000, and after the
91	distributions under subparagraphs 1., 2., 3., and 4., 2.25
92	percent of the available proceeds pursuant to this paragraph
93	shall be transferred monthly to the Revenue Sharing Trust Fund
94	for Counties pursuant to s. 218.215.
95	6. For proceeds received after July 1, 2000, and after the
96	distributions under subparagraphs 1., 2., 3., and 4., 1.0715
97	percent of the available proceeds pursuant to this paragraph
98	shall be transferred monthly to the Revenue Sharing Trust Fund
99	for Municipalities pursuant to s. 218.215. If the total revenue
100	to be distributed pursuant to this subparagraph is at least as
101	great as the amount due from the Revenue Sharing Trust Fund for
102	Municipalities and the Municipal Financial Assistance Trust Fund
103	in state fiscal year 1999-2000, no municipality shall receive
104	less than the amount due from the Revenue Sharing Trust Fund for
105	Municipalities and the Municipal Financial Assistance Trust Fund
106	in state fiscal year 1999-2000. If the total proceeds to be
107	distributed are less than the amount received in combination
108	from the Revenue Sharing Trust Fund for Municipalities and the
109	Municipal Financial Assistance Trust Fund in state fiscal year
110	1999-2000, each municipality shall receive an amount
111	proportionate to the amount it was due in state fiscal year
112	1999-2000.
113	7. Of the remaining proceeds:
114	a. Beginning July 1, 2000, and in each fiscal year
115	thereafter, the sum of $29,915,500 shall be divided into as many
116	equal parts as there are counties in the state, and one part
117	shall be distributed to each county. The distribution among the
118	several counties shall begin each fiscal year on or before
119	January 5th and shall continue monthly for a total of 4 months.
120	If a local or special law required that any moneys accruing to a
121	county in fiscal year 1999-2000 under the then-existing
122	provisions of s. 550.135 be paid directly to the district school
123	board, special district, or a municipal government, such payment
124	shall continue until such time that the local or special law is
125	amended or repealed. The state covenants with holders of bonds
126	or other instruments of indebtedness issued by local
127	governments, special districts, or district school boards prior
128	to July 1, 2000, that it is not the intent of this subparagraph
129	to adversely affect the rights of those holders or relieve local
130	governments, special districts, or district school boards of the
131	duty to meet their obligations as a result of previous pledges
132	or assignments or trusts entered into which obligated funds
133	received from the distribution to county governments under then-
134	existing s. 550.135. This distribution specifically is in lieu
135	of funds distributed under s. 550.135 prior to July 1, 2000.
136	b. The department shall distribute $166,667 monthly
137	pursuant to s. 288.1162 to each applicant that has been
138	certified as a "facility for a new professional sports
139	franchise" or a "facility for a retained professional sports
140	franchise" pursuant to s. 288.1162. Up to $41,667 shall be
141	distributed monthly by the department to each applicant that has
142	been certified as a "facility for a retained spring training
143	franchise" pursuant to s. 288.1162; however, not more than
144	$208,335 may be distributed monthly in the aggregate to all
145	certified facilities for a retained spring training franchise.
146	Distributions shall begin 60 days following such certification
147	and shall continue for not more than 30 years. Nothing contained
148	in this paragraph shall be construed to allow an applicant
149	certified pursuant to s. 288.1162 to receive more in
150	distributions than actually expended by the applicant for the
151	public purposes provided for in s. 288.1162(6). However, a
152	certified applicant is entitled to receive distributions up to
153	the maximum amount allowable and undistributed under this
154	section for additional renovations and improvements to the
155	facility for the franchise without additional certification.
156	c. Beginning 30 days after notice by the Office of
157	Tourism, Trade, and Economic Development to the Department of
158	Revenue that an applicant has been certified as the professional
159	golf hall of fame pursuant to s. 288.1168 and is open to the
160	public, $166,667 shall be distributed monthly, for up to 300
161	months, to the applicant.
162	d. Beginning 30 days after notice by the Office of
163	Tourism, Trade, and Economic Development to the Department of
164	Revenue that the applicant has been certified as the
165	International Game Fish Association World Center facility
166	pursuant to s. 288.1169, and the facility is open to the public,
167	$83,333 shall be distributed monthly, for up to 168 months, to
168	the applicant. This distribution is subject to reduction
169	pursuant to s. 288.1169. A lump sum payment of $999,996 shall be
170	made, after certification and before July 1, 2000.
171	e. Beginning 30 days after notice by the Office of
172	Tourism, Trade, and Economic Development to the Department of
173	Revenue that the applicant has been certified as a motorsports
174	entertainment complex pursuant to s. 288.1170 and is open to the
175	public, an amount not to exceed $166,667 shall be distributed
176	monthly to the applicant. However, each fiscal year's total
177	distribution made pursuant to this sub-subparagraph shall not
178	exceed the difference between the state sales taxes collected
179	and remitted pursuant to this chapter by the facility in the
180	previous calendar year and those collected and remitted in
181	calendar year 2000. Distributions shall continue for 30 years.
182	8. All other proceeds shall remain with the General
183	Revenue Fund.
184	Section 2. Section 288.1170, Florida Statutes, is created
185	to read:
186	288.1170 Motorsports entertainment complex; definitions;
187	certification; duties.--
188	(1) As used in this section:
189	(a) "Applicant" means the owner of a motorsports
190	entertainment complex.
191	(b) "Motorsports entertainment complex" means a closed-
192	course racing facility, with ancillary grounds and facilities,
193	which:
194	1. Has not fewer than 70,000 permanent seats for race
195	patrons.
196	2. Has not fewer than 7 scheduled days of motorsports
197	events each calendar year.
198	3. Has paid admissions of more than 200,000 annually.
199	4. Serves food at the facility during sanctioned
200	motorsports races.
201	5. Engages in tourism promotion.
202	(c) "Motorsports event" means a motorsports race and its
203	ancillary activities, which have been sanctioned by a
204	sanctioning body.
205	(d) "Office" means the Office of Tourism, Trade, and
206	Economic Development of the Executive Office of the Governor.
207	(e) "Owner" means a unit of local government that owns a
208	motorsports entertainment complex or owns the land on which the
209	motorsports entertainment complex is located.
210	(f) "Sanctioning body" means the American Motorcycle
211	Association (AMA), Championship Auto Racing Teams (CART), Grand
212	American Road Racing Association(Grand Am), Indy Racing League
213	(IRL), National Association for Stock Car Auto Racing (NASCAR),
214	National Hot Rod Association (NHRA), Professional Sportscar
215	Racing (PSR), Sports Car Club of America (SCCA), United States
216	Auto Club (USAC), or any successor organization, or any other
217	nationally recognized governing body of motorsports that
218	establishes an annual schedule of motorsports events and grants
219	rights to conduct such events, has established and administers
220	rules and regulations governing all participants involved in
221	such events and all persons conducting such events, and requires
222	certain liability assurances, including insurance.
223	(g) "Unit of local government" has the meaning ascribed in
224	s. 218.369.
225	(2) The Office of Tourism, Trade, and Economic Development
226	shall serve as the state agency for screening applicants for
227	state funding pursuant to s. 212.20 and for certifying an
228	applicant as a motorsports entertainment complex. The office
229	shall develop and adopt rules for the receipt and processing of
230	applications for funding pursuant to s. 212.20. The office
231	shall make a determination regarding any application filed by an
232	applicant not later than 120 days after the application is
233	filed.
234	(3) Prior to certifying an applicant as a motorsports
235	entertainment complex, the office must determine that:
236	(a) A unit of local government holds title to the land on
237	which the motorsports entertainment complex is located or holds
238	title to the motorsports entertainment complex.
239	(b) Seven scheduled days of motorsports events were held
240	at the motorsports entertainment complex in the most recently
241	completed calendar year or seven scheduled days of motorsports
242	events are scheduled to be held at the motorsports entertainment
243	complex in the calendar year which begins after the submission
244	of the application. The applicant shall submit certifications
245	from the appropriate officials of the relevant sanctioning
246	bodies that such sanctioned motorsports events were or will be
247	held at the motorsports entertainment complex.
248	(c) The applicant has an independent analysis or study,
249	verified by the office, which demonstrates that the motorsports
250	entertainment complex will attract, or in the most recently
251	completed calendar year has attracted, paid attendance of more
252	than 200,000 annually.
253	(d) The applicant has an independent analysis or study,
254	verified by the office, which demonstrates that the amount of
255	the revenues generated by the taxes imposed under chapter 212
256	with respect to the use and operation of the motorsports
257	entertainment complex is consistent with the provisions of this
258	act.
259	(e) The municipality in which the motorsports
260	entertainment complex is located, or the county if the
261	motorsports entertainment complex is located in an
262	unincorporated area, has certified by resolution after a public
263	hearing that the application serves a public purpose.
264	(f) The motorsports entertainment complex is located in a
265	county defined in s. 125.011(1).
266	(4) Upon determining that an applicant meets the
267	requirements of subsection (3), the office shall notify the
268	applicant and the executive director of the Department of
269	Revenue of such certification by means of an official letter
270	granting certification. If the applicant fails to meet the
271	certification requirements of subsection (3), the office shall
272	notify the applicant not later than 10 days following such
273	determination.
274	(5) The office must recertify each year that the
275	motorsports entertainment complex continues to generate
276	sufficient sales tax revenues annually as required pursuant to
277	paragraph (3)(d).
278	(6) No motorsports entertainment complex which has been
279	previously certified under this section and has received funding
280	under such certification shall be eligible for any additional
281	certification.
282	(7) An applicant certified as a motorsports entertainment
283	complex may use funds provided pursuant to s. 212.20 only for
284	the following public purposes:
285	(a) Paying for the construction, reconstruction,
286	expansion, or renovation of a motorsports entertainment complex.
287	(b) Paying debt service reserve funds, arbitrage rebate
288	obligations, or other amounts payable with respect to bonds
289	issued for the construction, reconstruction, expansion, or
290	renovation of the motorsports entertainment complex or for the
291	reimbursement of such costs or the refinancing of bonds issued
292	for such purposes.
293	(c) Paying for construction, reconstruction, expansion, or
294	renovation of transportation or other infrastructure
295	improvements related to, necessary for, or appurtenant to the
296	motorsports entertainment complex, including, without
297	limitation, paying debt service reserve funds, arbitrage rebate
298	obligations, or other amounts payable with respect to bonds
299	issued for the construction, reconstruction, expansion, or
300	renovation of such transportation or other infrastructure
301	improvements, and for the reimbursement of such costs or the
302	refinancing of bonds issued for such purposes.
303	(d) Paying for programs of advertising and promotion of or
304	related to the motorsports entertainment complex or the
305	municipality in which the motorsports entertainment complex is
306	located, or the county if the motorsports entertainment complex
307	is located in an unincorporated area, provided such programs of
308	advertising and promotion are designed to increase paid
309	attendance at the motorsports entertainment complex or increase
310	tourism in or promote the economic development of the community
311	in which the motorsports entertainment complex is located.
312	(8) The Department of Revenue may audit, as provided in s.
313	213.34, to verify that the distributions pursuant to this
314	section have been expended as required in this section. Such
315	information is subject to the confidentiality requirements of
316	chapter 213. If the Department of Revenue determines that the
317	distributions pursuant to this section have not been expended as
318	required by this section, it may pursue recovery of such funds
319	pursuant to the laws and rules governing the assessment of
320	taxes.
321	Section 3. This act shall take effect July 1, 2003.