HB 0061CS

CHAMBER ACTION



1The Committee on Commerce recommends the following:
2
3     Committee Substitute
4     Remove the entire bill and insert:
5
A bill to be entitled
6An act relating to economic development incentives;
7amending s. 212.20, F.S.; revising a limitation on certain
8distributions to certified facilities for a retained
9spring training franchise; providing for distribution of a
10portion of revenues from the tax on sales, use, and other
11transactions to specified units of local government owning
12eligible convention centers; providing limitations;
13requiring the Department of Revenue to prescribe certain
14forms; amending s. 288.1162, F.S.; providing procedure for
15certification of additional facilities for a retained
16spring training franchise; providing for application and
17selection; establishing maximum number of certifications
18and funding per application cycle; clarifying the number
19of certifications of facilities for retained spring
20training franchises; creating s. 288.1171, F.S.; providing
21for certification of units of local government owning
22eligible convention centers by the Office of Tourism,
23Trade, and Economic Development; requiring the office to
24adopt specified rules; providing a definition; providing
25requirements for certification; providing for use of
26proceeds distributed to units of local government under
27the act; providing for audits by the Department of
28Revenue; providing for revocation of certification;
29providing an effective date.
30
31Be It Enacted by the Legislature of the State of Florida:
32
33     Section 1.  Paragraph (d) of subsection (6) of section
34212.20, Florida Statutes, as amended by section 92 of chapter
352003-402, Laws of Florida, is amended to read:
36     212.20  Funds collected, disposition; additional powers of
37department; operational expense; refund of taxes adjudicated
38unconstitutionally collected.--
39     (6)  Distribution of all proceeds under this chapter and s.
40202.18(1)(b) and (2)(b) shall be as follows:
41     (d)  The proceeds of all other taxes and fees imposed
42pursuant to this chapter or remitted pursuant to s. 202.18(1)(b)
43and (2)(b) shall be distributed as follows:
44     1.  In any fiscal year, the greater of $500 million, minus
45an amount equal to 4.6 percent of the proceeds of the taxes
46collected pursuant to chapter 201, or 5 percent of all other
47taxes and fees imposed pursuant to this chapter or remitted
48pursuant to s. 202.18(1)(b) and (2)(b) shall be deposited in
49monthly installments into the General Revenue Fund.
50     2.  Two-tenths of one percent shall be transferred to the
51Ecosystem Management and Restoration Trust Fund to be used for
52water quality improvement and water restoration projects.
53     3.  After the distribution under subparagraphs 1. and 2.,
548.814 percent of the amount remitted by a sales tax dealer
55located within a participating county pursuant to s. 218.61
56shall be transferred into the Local Government Half-cent Sales
57Tax Clearing Trust Fund. Beginning July 1, 2003, the amount to
58be transferred pursuant to this subparagraph to the Local
59Government Half-cent Sales Tax Clearing Trust Fund shall be
60reduced by 0.1 percent, and the department shall distribute this
61amount to the Public Employees Relations Commission Trust Fund
62less $5,000 each month, which shall be added to the amount
63calculated in subparagraph 4. and distributed accordingly.
64     4.  After the distribution under subparagraphs 1., 2., and
653., 0.095 percent shall be transferred to the Local Government
66Half-cent Sales Tax Clearing Trust Fund and distributed pursuant
67to s. 218.65.
68     5.  After the distributions under subparagraphs 1., 2., 3.,
69and 4., 2.0440 percent of the available proceeds pursuant to
70this paragraph shall be transferred monthly to the Revenue
71Sharing Trust Fund for Counties pursuant to s. 218.215.
72     6.  After the distributions under subparagraphs 1., 2., 3.,
73and 4., 1.3409 percent of the available proceeds pursuant to
74this paragraph shall be transferred monthly to the Revenue
75Sharing Trust Fund for Municipalities pursuant to s. 218.215. If
76the total revenue to be distributed pursuant to this
77subparagraph is at least as great as the amount due from the
78Revenue Sharing Trust Fund for Municipalities and the Municipal
79Financial Assistance Trust Fund in state fiscal year 1999-2000,
80no municipality shall receive less than the amount due from the
81Revenue Sharing Trust Fund for Municipalities and the Municipal
82Financial Assistance Trust Fund in state fiscal year 1999-2000.
83If the total proceeds to be distributed are less than the amount
84received in combination from the Revenue Sharing Trust Fund for
85Municipalities and the Municipal Financial Assistance Trust Fund
86in state fiscal year 1999-2000, each municipality shall receive
87an amount proportionate to the amount it was due in state fiscal
88year 1999-2000.
89     7.  Of the remaining proceeds:
90     a.  In each fiscal year, the sum of $29,915,500 shall be
91divided into as many equal parts as there are counties in the
92state, and one part shall be distributed to each county. The
93distribution among the several counties shall begin each fiscal
94year on or before January 5th and shall continue monthly for a
95total of 4 months. If a local or special law required that any
96moneys accruing to a county in fiscal year 1999-2000 under the
97then-existing provisions of s. 550.135 be paid directly to the
98district school board, special district, or a municipal
99government, such payment shall continue until such time that the
100local or special law is amended or repealed. The state covenants
101with holders of bonds or other instruments of indebtedness
102issued by local governments, special districts, or district
103school boards prior to July 1, 2000, that it is not the intent
104of this subparagraph to adversely affect the rights of those
105holders or relieve local governments, special districts, or
106district school boards of the duty to meet their obligations as
107a result of previous pledges or assignments or trusts entered
108into which obligated funds received from the distribution to
109county governments under then-existing s. 550.135. This
110distribution specifically is in lieu of funds distributed under
111s. 550.135 prior to July 1, 2000.
112     b.  The department shall distribute $166,667 monthly
113pursuant to s. 288.1162 to each applicant that has been
114certified as a "facility for a new professional sports
115franchise" or a "facility for a retained professional sports
116franchise" pursuant to s. 288.1162. Up to $41,667 shall be
117distributed monthly by the department to each applicant that has
118been certified as a "facility for a retained spring training
119franchise" pursuant to s. 288.1162; however, not more than
120$416,667 $208,335 may be distributed monthly in the aggregate to
121all certified facilities for a retained spring training
122franchise. Distributions shall begin 60 days following such
123certification and shall continue for not more than 30 years.
124Nothing contained in this paragraph shall be construed to allow
125an applicant certified pursuant to s. 288.1162 to receive more
126in distributions than actually expended by the applicant for the
127public purposes provided for in s. 288.1162(6). However, a
128certified applicant is entitled to receive distributions up to
129the maximum amount allowable and undistributed under this
130section for additional renovations and improvements to the
131facility for the franchise without additional certification.
132     c.  Beginning 30 days after notice by the Office of
133Tourism, Trade, and Economic Development to the Department of
134Revenue that an applicant has been certified as the professional
135golf hall of fame pursuant to s. 288.1168 and is open to the
136public, $166,667 shall be distributed monthly, for up to 300
137months, to the applicant.
138     d.  Beginning 30 days after notice by the Office of
139Tourism, Trade, and Economic Development to the Department of
140Revenue that the applicant has been certified as the
141International Game Fish Association World Center facility
142pursuant to s. 288.1169, and the facility is open to the public,
143$83,333 shall be distributed monthly, for up to 168 months, to
144the applicant. This distribution is subject to reduction
145pursuant to s. 288.1169. A lump sum payment of $999,996 shall be
146made, after certification and before July 1, 2000.
147     e.  The department shall distribute monthly to units of
148local government that have been certified as owning eligible
149convention centers pursuant to s. 288.1171 an amount equal to 50
150percent of the proceeds, as defined in paragraph (5)(a),
151received and collected in the previous month by the department
152under the provisions of this chapter which are generated by such
153eligible convention centers and remitted on the sales and use
154tax returns of eligible convention centers. Proceeds, for this
155sub-subparagraph, are further defined as all applicable sales
156taxes collected by an eligible convention center for standard
157services provided by center staff to users of the center, which
158include the following: parking, admission, ticket sales, food
159services, electrical or like services, space rentals, equipment
160rentals, and security services. The total distribution to each
161unit of local government shall not exceed $2 million per state
162fiscal year. However, total distributions to all units of local
163government shall not exceed $10 million per state fiscal year,
164and such distribution shall be limited exclusively to the taxes
165collected and remitted under the provisions of this chapter. The
166department shall prescribe forms required to be filed with the
167department by eligible convention centers. Distributions shall
168begin 60 days following notification of certification by the
169Office of Tourism, Trade, and Economic Development pursuant to
170s. 288.1171 and shall continue for not more than 30 years.
171Distributions shall be used solely to encourage and provide
172economic development for the attraction, recruitment, and
173retention of corporate headquarters and of high-technology,
174manufacturing, research and development, entertainment, and
175tourism industries as designated by the unit of local government
176by resolution of its governing body.
177     8.  All other proceeds shall remain with the General
178Revenue Fund.
179     Section 2.  Paragraph (c) of subsection (5) and subsection
180(7) of section 288.1162, Florida Statutes, are amended to read:
181     288.1162  Professional sports franchises; spring training
182franchises; duties.--
183     (5)
184     (c)1.  The Office of Tourism, Trade, and Economic
185Development shall competitively evaluate applications for
186funding of a facility for a retained spring training franchise.
187Applications must be submitted by October 1, 2000, with
188certifications to be made by January 1, 2001. If the number of
189applicants exceeds five and the aggregate funding request of all
190applications exceeds $208,335 per month, the office shall rank
191the applications according to a selection criteria, certifying
192the highest ranked proposals. The evaluation criteria shall
193include, with priority given in descending order to the
194following items:
195     a.1.  The intended use of the funds by the applicant, with
196priority given to the construction of a new facility.
197     b.2.  The length of time that the existing franchise has
198been located in the state, with priority given to retaining
199franchises that have been in the same location the longest.
200     c.3.  The length of time that a facility to be used by a
201retained spring training franchise has been used by one or more
202spring training franchises, with priority given to a facility
203that has been in continuous use as a facility for spring
204training the longest.
205     d.4.  For those teams leasing a spring training facility
206from a unit of local government, the remaining time on the lease
207for facilities used by the spring training franchise, with
208priority given to the shortest time period remaining on the
209lease.
210     e.5.  The duration of the future-use agreement with the
211retained spring training franchise, with priority given to the
212future-use agreement having the longest duration.
213     f.6.  The amount of the local match, with priority given to
214the largest percentage of local match proposed.
215     g.7.  The net increase of total active recreation space
216owned by the applying unit of local government following the
217acquisition of land for the spring training facility, with
218priority given to the largest percentage increase of total
219active recreation space.
220     h.8.  The location of the facility in a brownfield, an
221enterprise zone, a community redevelopment area, or other area
222of targeted development or revitalization included in an Urban
223Infill Redevelopment Plan, with priority given to facilities
224located in these areas.
225     i.9.  The projections on paid attendance attracted by the
226facility and the proposed effect on the economy of the local
227community, with priority given to the highest projected paid
228attendance.
229     2.  Beginning July 1, 2004, the Office of Tourism, Trade,
230and Economic Development shall competitively evaluate
231applications for funding of facilities for retained spring
232training franchises in addition to those certified and funded
233under subparagraph 1. Applications must be submitted by October
2341 of each year, with certifications to be made by January 1 of
235the following year. The office shall rank the applications
236according to selection criteria, certifying no more than five
237proposals in any application cycle. The aggregate funding
238request of all applicants certified during any application cycle
239shall not exceed an aggregate funding request of $208,335 per
240month. The evaluation criteria shall include the following, with
241priority given in descending order:
242     a.  The intended use of the funds by the applicant for
243acquisition or construction of a new facility.
244     b.  The intended use of the funds by the applicant to
245renovate a facility.
246     c.  The length of time that a facility to be used by a
247retained spring training franchise has been used by one or more
248spring training franchises, with priority given to a facility
249that has been in continuous use as a facility for spring
250training the longest.
251     d.  For those teams leasing a spring training facility from
252a unit of local government, the remaining time on the lease for
253facilities used by the spring training franchise, with priority
254given to the shortest time period remaining on the lease. For
255consideration under this subparagraph, the remaining time on the
256lease shall not exceed 4 years.
257     e.  The duration of the future-use agreement with the
258retained spring training franchise, with priority given to the
259future-use agreement having the longest duration.
260     f.  The amount of the local match, with priority given to
261the largest percentage of local match proposed.
262     g.  The net increase of total active recreation space owned
263by the applying unit of local government following the
264acquisition of land for the spring training facility, with
265priority given to the largest percentage increase of total
266active recreation space.
267     h.  The location of the facility in a brownfield area, an
268enterprise zone, a community redevelopment area, or another area
269of targeted development or revitalization included in an Urban
270Infill Redevelopment Plan, with priority given to facilities
271located in those areas.
272     i.  The projections on paid attendance attracted by the
273facility and the proposed effect on the economy of the local
274community, with priority given to the highest projected paid
275attendance.
276     (7)  The Office of Tourism, Trade, and Economic Development
277shall notify the Department of Revenue of any facility certified
278as a facility for a new professional sports franchise or a
279facility for a retained professional sports franchise or as a
280facility for a retained spring training franchise. The Office of
281Tourism, Trade, and Economic Development shall certify no more
282than eight facilities as facilities for a new professional
283sports franchise or as facilities for a retained professional
284sports franchise and shall certify at least five as facilities
285for retained spring training franchises, including in such total
286any facilities certified by the Department of Commerce before
287July 1, 1996. The number of certifications of facilities for
288retained spring training franchises shall be pursuant to
289subsection (5). The office may make no more than one
290certification for any facility. The office may not certify
291funding for less than the requested amount to any applicant
292certified as a facility for a retained spring training
293franchise.
294     Section 3.  Section 288.1171, Florida Statutes, is created
295to read:
296     288.1171  Convention centers owned by units of local
297government; certification as owning eligible convention centers;
298duties.--
299     (1)  The Office of Tourism, Trade, and Economic Development
300shall serve as the state agency for screening applicants for
301state funding pursuant to s. 212.20(6)(d)7.e. and for certifying
302an applicant as owning an eligible convention center.
303     (2)  The Office of Tourism, Trade, and Economic Development
304shall adopt rules pursuant to ss. 120.536(1) and 120.54 for the
305receipt and processing of applications for funding pursuant to
306s. 212.20(6)(d)7.e.
307     (3)  As used in this section, the term "eligible convention
308center" means a publicly owned facility having exhibition space
309in excess of 75,000 square feet, the primary function of which
310is to host meetings, conventions, or trade shows.
311     (4)  Prior to certifying an applicant as owning an eligible
312convention center, the Office of Tourism, Trade, and Economic
313Development must determine that:
314     (a)  The unit of local government, as defined in s.
315218.369, owns an eligible convention center.
316     (b)  The convention center contains more than 75,000 square
317feet of exhibit space.
318     (c)  The unit of local government in which the convention
319center is located has certified by resolution after a public
320hearing that the application serves a public purpose pursuant to
321subsection (7).
322     (d)  The convention center is located in a county that is
323levying a tourist development tax pursuant to s. 125.0104.
324     (5)  Upon certification of an applicant, the Office of
325Tourism, Trade, and Economic Development shall notify the
326executive director of the Department of Revenue of such
327certification by means of an official letter granting
328certification. The Department of Revenue shall not begin
329distributing proceeds until 60 days following notice by the
330Office of Tourism, Trade, and Economic Development that a unit
331of local government has been certified as owning an eligible
332convention center.
333     (6)  No applicant previously certified under any provision
334of this section who has received proceeds under such
335certification shall be eligible for an additional certification.
336     (7)  A unit of local government certified as owning an
337eligible convention center may use proceeds provided pursuant to
338s. 212.20(6)(d)7.e. solely to encourage and provide economic
339development for the attraction, recruitment, and retention of
340corporate headquarters and of high-technology, manufacturing,
341research and development, entertainment, and tourism industries
342as designated by the unit of local government by resolution of
343its governing body.
344     (8)  The Department of Revenue may audit as provided in s.
345213.34 to verify that the distributions pursuant to this section
346have been expended as required in this section. Such information
347is subject to the confidentiality requirements of chapter 213.
348If the Department of Revenue determines that the distributions
349have not been expended as required by this section, it may
350pursue recovery of such proceeds pursuant to the laws and rules
351governing the assessment of taxes.
352     (9)  Failure to use the proceeds as provided in this
353section shall be grounds for revoking certification.
354     Section 4.  This act shall take effect July 1, 2004.


CODING: Words stricken are deletions; words underlined are additions.