Senate Bill sb2266c2

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    Florida Senate - 2003                    CS for CS for SB 2266

    By the Committees on Comprehensive Planning; Commerce,
    Economic Opportunities, and Consumer Services; and Senators
    Siplin, Wilson, Dockery and Campbell



    316-2225-03

  1                      A bill to be entitled

  2         An act relating to the tax on sales, use, and

  3         other transactions; amending s. 212.20, F.S.;

  4         providing for distribution of a portion of

  5         revenues from the tax on sales, use, and other

  6         transactions to specified units of local

  7         government owning eligible convention centers;

  8         creating s. 288.1171, F.S.; providing for

  9         certification of units of local government

10         owning eligible convention centers by the

11         Office of Tourism, Trade, and Economic

12         Development; requiring the office to adopt

13         specified rules; providing a definition;

14         providing requirements for certification;

15         providing for use of proceeds distributed to

16         units of local government under the act;

17         providing for audits by the Department of

18         Revenue; providing for revocation of

19         certification; providing an effective date.

20  

21  Be It Enacted by the Legislature of the State of Florida:

22  

23         Section 1.  Paragraph (d) of subsection (6) of section

24  212.20, Florida Statutes, as amended by section 1 of chapter

25  2002-291, Laws of Florida, is amended to read:

26         212.20  Funds collected, disposition; additional powers

27  of department; operational expense; refund of taxes

28  adjudicated unconstitutionally collected.--

29         (6)  Distribution of all proceeds under this chapter

30  and s. 202.18(1)(b) and (2)(b) shall be as follows:

31  

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    Florida Senate - 2003                    CS for CS for SB 2266
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 1         (d)  The proceeds of all other taxes and fees imposed

 2  pursuant to this chapter or remitted pursuant to s.

 3  202.18(1)(b) and (2)(b) shall be distributed as follows:

 4         1.  In any fiscal year, the greater of $500 million,

 5  minus an amount equal to 4.6 percent of the proceeds of the

 6  taxes collected pursuant to chapter 201, or 5 percent of all

 7  other taxes and fees imposed pursuant to this chapter or

 8  remitted pursuant to s. 202.18(1)(b) and (2)(b) shall be

 9  deposited in monthly installments into the General Revenue

10  Fund.

11         2.  Two-tenths of one percent shall be transferred to

12  the Ecosystem Management and Restoration Trust Fund to be used

13  for water quality improvement and water restoration projects.

14         3.  After the distribution under subparagraphs 1. and

15  2., 9.653 percent of the amount remitted by a sales tax dealer

16  located within a participating county pursuant to s. 218.61

17  shall be transferred into the Local Government Half-cent Sales

18  Tax Clearing Trust Fund.

19         4.  After the distribution under subparagraphs 1., 2.,

20  and 3., 0.065 percent shall be transferred to the Local

21  Government Half-cent Sales Tax Clearing Trust Fund and

22  distributed pursuant to s. 218.65.

23         5.  For proceeds received after July 1, 2000, and after

24  the distributions under subparagraphs 1., 2., 3., and 4., 2.25

25  percent of the available proceeds pursuant to this paragraph

26  shall be transferred monthly to the Revenue Sharing Trust Fund

27  for Counties pursuant to s. 218.215.

28         6.  For proceeds received after July 1, 2000, and after

29  the distributions under subparagraphs 1., 2., 3., and 4.,

30  1.0715 percent of the available proceeds pursuant to this

31  paragraph shall be transferred monthly to the Revenue Sharing

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    Florida Senate - 2003                    CS for CS for SB 2266
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 1  Trust Fund for Municipalities pursuant to s. 218.215. If the

 2  total revenue to be distributed pursuant to this subparagraph

 3  is at least as great as the amount due from the Revenue

 4  Sharing Trust Fund for Municipalities and the Municipal

 5  Financial Assistance Trust Fund in state fiscal year

 6  1999-2000, no municipality shall receive less than the amount

 7  due from the Revenue Sharing Trust Fund for Municipalities and

 8  the Municipal Financial Assistance Trust Fund in state fiscal

 9  year 1999-2000. If the total proceeds to be distributed are

10  less than the amount received in combination from the Revenue

11  Sharing Trust Fund for Municipalities and the Municipal

12  Financial Assistance Trust Fund in state fiscal year

13  1999-2000, each municipality shall receive an amount

14  proportionate to the amount it was due in state fiscal year

15  1999-2000.

16         7.  Of the remaining proceeds:

17         a.  Beginning July 1, 2000, and in each fiscal year

18  thereafter, the sum of $29,915,500 shall be divided into as

19  many equal parts as there are counties in the state, and one

20  part shall be distributed to each county. The distribution

21  among the several counties shall begin each fiscal year on or

22  before January 5th and shall continue monthly for a total of 4

23  months. If a local or special law required that any moneys

24  accruing to a county in fiscal year 1999-2000 under the

25  then-existing provisions of s. 550.135 be paid directly to the

26  district school board, special district, or a municipal

27  government, such payment shall continue until such time that

28  the local or special law is amended or repealed. The state

29  covenants with holders of bonds or other instruments of

30  indebtedness issued by local governments, special districts,

31  or district school boards prior to July 1, 2000, that it is

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    Florida Senate - 2003                    CS for CS for SB 2266
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 1  not the intent of this subparagraph to adversely affect the

 2  rights of those holders or relieve local governments, special

 3  districts, or district school boards of the duty to meet their

 4  obligations as a result of previous pledges or assignments or

 5  trusts entered into which obligated funds received from the

 6  distribution to county governments under then-existing s.

 7  550.135. This distribution specifically is in lieu of funds

 8  distributed under s. 550.135 prior to July 1, 2000.

 9         b.  The department shall distribute $166,667 monthly

10  pursuant to s. 288.1162 to each applicant that has been

11  certified as a "facility for a new professional sports

12  franchise" or a "facility for a retained professional sports

13  franchise" pursuant to s. 288.1162. Up to $41,667 shall be

14  distributed monthly by the department to each applicant that

15  has been certified as a "facility for a retained spring

16  training franchise" pursuant to s. 288.1162; however, not more

17  than $208,335 may be distributed monthly in the aggregate to

18  all certified facilities for a retained spring training

19  franchise. Distributions shall begin 60 days following such

20  certification and shall continue for not more than 30 years.

21  Nothing contained in this paragraph shall be construed to

22  allow an applicant certified pursuant to s. 288.1162 to

23  receive more in distributions than actually expended by the

24  applicant for the public purposes provided for in s.

25  288.1162(6). However, a certified applicant is entitled to

26  receive distributions up to the maximum amount allowable and

27  undistributed under this section for additional renovations

28  and improvements to the facility for the franchise without

29  additional certification.

30         c.  Beginning 30 days after notice by the Office of

31  Tourism, Trade, and Economic Development to the Department of

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    Florida Senate - 2003                    CS for CS for SB 2266
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 1  Revenue that an applicant has been certified as the

 2  professional golf hall of fame pursuant to s. 288.1168 and is

 3  open to the public, $166,667 shall be distributed monthly, for

 4  up to 300 months, to the applicant.

 5         d.  Beginning 30 days after notice by the Office of

 6  Tourism, Trade, and Economic Development to the Department of

 7  Revenue that the applicant has been certified as the

 8  International Game Fish Association World Center facility

 9  pursuant to s. 288.1169, and the facility is open to the

10  public, $83,333 shall be distributed monthly, for up to 168

11  months, to the applicant. This distribution is subject to

12  reduction pursuant to s. 288.1169. A lump sum payment of

13  $999,996 shall be made, after certification and before July 1,

14  2000.

15         e.  The department shall distribute monthly to units of

16  local government that have been certified as owning eligible

17  convention centers pursuant to s. 288.1171 an amount equal to

18  one-half of the proceeds, as defined in s. 212.20(5)(a),

19  received and collected in the previous month by the department

20  under the provisions of this chapter which are generated by

21  such eligible convention centers and remitted on the sales and

22  use tax returns of eligible convention centers. The total

23  distribution to each unit of local government shall not exceed

24  $3 million per state fiscal year. Distributions shall begin 60

25  days following notification of certification by the Office of

26  Tourism, Trade, and Economic Development pursuant to s.

27  288.1171 and shall continue for not more than 30 years.

28  Distributions shall be used solely to encourage and provide

29  economic development for the attraction, recruitment, and

30  retention of corporate headquarters and of high-technology,

31  manufacturing, research and development, entertainment, and

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    Florida Senate - 2003                    CS for CS for SB 2266
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 1  tourism industries as designated by the unit of local

 2  government by resolution of its governing body.

 3         8.  All other proceeds shall remain with the General

 4  Revenue Fund.

 5         Section 2.  Section 288.1171, Florida Statutes, is

 6  created to read:

 7         288.1171  Convention centers owned by units of local

 8  government; certification as owning eligible convention

 9  centers; duties.--

10         (1)  The Office of Tourism, Trade, and Economic

11  Development shall serve as the state agency for screening

12  applicants for state funding pursuant to s. 212.20(6)(d)7.e.

13  and for certifying an applicant as owning an eligible

14  convention center.

15         (2)  The Office of Tourism, Trade, and Economic

16  Development shall adopt rules pursuant to ss. 120.536(1) and

17  120.54 for the receipt and processing of applications for

18  funding pursuant to s. 212.20(6)(d)7.e.

19         (3)  As used in this section, the term "eligible

20  convention center" means a publicly owned facility having

21  exhibition space in excess of 60,000 square feet, the primary

22  function of which is to host meetings, conventions, or trade

23  shows.

24         (4)  Prior to certifying an applicant as owning an

25  eligible convention center, the Office of Tourism, Trade, and

26  Economic Development must determine that:

27         (a)  The unit of local government, as defined in s.

28  218.369, owns an eligible convention center.

29         (b)  The convention center contains more than 60,000

30  square feet of exhibit space.

31  

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    Florida Senate - 2003                    CS for CS for SB 2266
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 1         (c)  The unit of local government in which the

 2  convention center is located has certified by resolution after

 3  a public hearing that the application serves a public purpose

 4  pursuant to subsection (7).

 5         (d)  The convention center is located in a county that

 6  is levying a tourist development tax pursuant to s. 125.0104.

 7         (5)  Upon certification of an applicant, the Office of

 8  Tourism, Trade, and Economic Development shall notify the

 9  executive director of the Department of Revenue of such

10  certification by means of an official letter granting

11  certification. The Department of Revenue shall not begin

12  distributing proceeds until 60 days following notice by the

13  Office of Tourism, Trade, and Economic Development that a unit

14  of local government has been certified as owning an eligible

15  convention center.

16         (6)  No applicant previously certified under any

17  provision of this section who has received proceeds under such

18  certification shall be eligible for an additional

19  certification.

20         (7)  A unit of local government certified as owning an

21  eligible convention center may use proceeds provided pursuant

22  to s. 212.20(6)(d)7.e. solely to encourage and provide

23  economic development for the attraction, recruitment, and

24  retention of corporate headquarters and of high-technology,

25  manufacturing, research and development, entertainment, and

26  tourism industries as designated by the unit of local

27  government by resolution of its governing body.

28         (8)  The Department of Revenue may audit as provided in

29  s. 213.34 to verify that the distributions pursuant to this

30  section have been expended as required in this section. Such

31  information is subject to the confidentiality requirements of

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    Florida Senate - 2003                    CS for CS for SB 2266
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 1  chapter 213. If the Department of Revenue determines that the

 2  distributions have not been expended as required by this

 3  section, it may pursue recovery of such proceeds pursuant to

 4  the laws and rules governing the assessment of taxes.

 5         (9)  Failure to use the proceeds as provided in this

 6  section shall be grounds for revoking certification. 

 7         Section 3.  This act shall take effect October 1, 2003.

 8  

 9          STATEMENT OF SUBSTANTIAL CHANGES CONTAINED IN
                       COMMITTEE SUBSTITUTE FOR
10                            CS/SB 2266

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12  The CS differs from the bill as filed in that it lowers the
    convention center square footage threshold, from 75,000 to
13  60,000, for local governments to qualify for a rebate of sales
    taxes generated by their convention center.
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