HB 0183CS

CHAMBER ACTION



1The Tourism Committee recommends the following:
2
3     Council/Committee Substitute
4     Remove the entire bill and insert:
5
A bill to be entitled
6An act relating to motorsports entertainment complexes;
7amending s. 212.20, F.S.; providing for distribution of a
8portion of revenues from the tax on sales, use, and other
9transactions to a certified motorsports entertainment
10complex; providing a limit on such distributions; creating
11s. 288.1170, F.S.; providing definitions; providing for
12certification of motorsports entertainment complexes by
13the Office of Tourism, Trade, and Economic Development of
14the Executive Office of the Governor; providing
15requirements for certification; requiring specified
16notice; providing for use of the funds distributed to a
17motorsports entertainment complex; authorizing audits by
18the Department of Revenue; providing an effective date.
19
20     WHEREAS, the Legislature finds that Florida has long been
21the preeminent site in the nation for motorsports racing, and
22     WHEREAS, motorsports racing has been a major tourist
23attraction in Florida for nearly 100 years, and
24     WHEREAS, motorsports entertainment is the fastest growing
25sports industry in the United States, and
26     WHEREAS, as a result of the increased popularity of
27motorsports racing, many new motorsports facilities are being
28constructed in other states, and
29     WHEREAS, to continue to attract spectators to sanctioned
30championship motorsports events, the owner or operator of a
31motorsports entertainment complex must build additional
32spectator seating and renovate existing facilities to improve
33the amenities available to spectators, and
34     WHEREAS, attracting, retaining, and providing favorable
35conditions for conducting sanctioned championship motorsports
36events and the continued development of the motorsports
37entertainment industry in Florida provides skilled-employment
38opportunities for citizens of this state, and
39     WHEREAS, continued development and improvement of Florida's
40motorsports entertainment industry is vital to Florida's tourism
41industry and to state revenues, and
42     WHEREAS, the motorsports entertainment industry is a major
43contributor to Florida's economic development because of the
44technology and service businesses that provide goods and
45services to the industry, and
46     WHEREAS, the provisions of this act are necessary to
47protect and strengthen Florida's motorsports entertainment
48industry, and the purposes to be achieved by this act are
49predominately public purposes vital to the protection and
50improvement of Florida's economy, NOW, THEREFORE,
51
52Be It Enacted by the Legislature of the State of Florida:
53
54     Section 1.  Paragraph (d) of subsection (6) of section
55212.20, Florida Statutes, is amended to read:
56     212.20  Funds collected, disposition; additional powers of
57department; operational expense; refund of taxes adjudicated
58unconstitutionally collected.--
59     (6)  Distribution of all proceeds under this chapter and s.
60202.18(1)(b) and (2)(b) shall be as follows:
61     (d)  The proceeds of all other taxes and fees imposed
62pursuant to this chapter or remitted pursuant to s. 202.18(1)(b)
63and (2)(b) shall be distributed as follows:
64     1.  In any fiscal year, the greater of $500 million, minus
65an amount equal to 4.6 percent of the proceeds of the taxes
66collected pursuant to chapter 201, or 5 percent of all other
67taxes and fees imposed pursuant to this chapter or remitted
68pursuant to s. 202.18(1)(b) and (2)(b) shall be deposited in
69monthly installments into the General Revenue Fund.
70     2.  Two-tenths of one percent shall be transferred to the
71Ecosystem Management and Restoration Trust Fund to be used for
72water quality improvement and water restoration projects.
73     3.  After the distribution under subparagraphs 1. and 2.,
748.814 percent of the amount remitted by a sales tax dealer
75located within a participating county pursuant to s. 218.61
76shall be transferred into the Local Government Half-cent Sales
77Tax Clearing Trust Fund. Beginning July 1, 2003, the amount to
78be transferred pursuant to this subparagraph to the Local
79Government Half-cent Sales Tax Clearing Trust Fund shall be
80reduced by 0.1 percent, and the department shall distribute this
81amount to the Public Employees Relations Commission Trust Fund
82less $5,000 each month, which shall be added to the amount
83calculated in subparagraph 4. and distributed accordingly.
84     4.  After the distribution under subparagraphs 1., 2., and
853., 0.095 percent shall be transferred to the Local Government
86Half-cent Sales Tax Clearing Trust Fund and distributed pursuant
87to s. 218.65.
88     5.  After the distributions under subparagraphs 1., 2., 3.,
89and 4., 2.0440 percent of the available proceeds pursuant to
90this paragraph shall be transferred monthly to the Revenue
91Sharing Trust Fund for Counties pursuant to s. 218.215.
92     6.  After the distributions under subparagraphs 1., 2., 3.,
93and 4., 1.3409 percent of the available proceeds pursuant to
94this paragraph shall be transferred monthly to the Revenue
95Sharing Trust Fund for Municipalities pursuant to s. 218.215. If
96the total revenue to be distributed pursuant to this
97subparagraph is at least as great as the amount due from the
98Revenue Sharing Trust Fund for Municipalities and the former
99Municipal Financial Assistance Trust Fund in state fiscal year
1001999-2000, no municipality shall receive less than the amount
101due from the Revenue Sharing Trust Fund for Municipalities and
102the former Municipal Financial Assistance Trust Fund in state
103fiscal year 1999-2000. If the total proceeds to be distributed
104are less than the amount received in combination from the
105Revenue Sharing Trust Fund for Municipalities and the former
106Municipal Financial Assistance Trust Fund in state fiscal year
1071999-2000, each municipality shall receive an amount
108proportionate to the amount it was due in state fiscal year
1091999-2000.
110     7.  Of the remaining proceeds:
111     a.  In each fiscal year, the sum of $29,915,500 shall be
112divided into as many equal parts as there are counties in the
113state, and one part shall be distributed to each county. The
114distribution among the several counties shall begin each fiscal
115year on or before January 5th and shall continue monthly for a
116total of 4 months. If a local or special law required that any
117moneys accruing to a county in fiscal year 1999-2000 under the
118then-existing provisions of s. 550.135 be paid directly to the
119district school board, special district, or a municipal
120government, such payment shall continue until such time that the
121local or special law is amended or repealed. The state covenants
122with holders of bonds or other instruments of indebtedness
123issued by local governments, special districts, or district
124school boards prior to July 1, 2000, that it is not the intent
125of this subparagraph to adversely affect the rights of those
126holders or relieve local governments, special districts, or
127district school boards of the duty to meet their obligations as
128a result of previous pledges or assignments or trusts entered
129into which obligated funds received from the distribution to
130county governments under then-existing s. 550.135. This
131distribution specifically is in lieu of funds distributed under
132s. 550.135 prior to July 1, 2000.
133     b.  The department shall distribute $166,667 monthly
134pursuant to s. 288.1162 to each applicant that has been
135certified as a "facility for a new professional sports
136franchise" or a "facility for a retained professional sports
137franchise" pursuant to s. 288.1162. Up to $41,667 shall be
138distributed monthly by the department to each applicant that has
139been certified as a "facility for a retained spring training
140franchise" pursuant to s. 288.1162; however, not more than
141$208,335 may be distributed monthly in the aggregate to all
142certified facilities for a retained spring training franchise.
143Distributions shall begin 60 days following such certification
144and shall continue for not more than 30 years. Nothing contained
145in this paragraph shall be construed to allow an applicant
146certified pursuant to s. 288.1162 to receive more in
147distributions than actually expended by the applicant for the
148public purposes provided for in s. 288.1162(6). However, a
149certified applicant is entitled to receive distributions up to
150the maximum amount allowable and undistributed under this
151section for additional renovations and improvements to the
152facility for the franchise without additional certification.
153     c.  Beginning 30 days after notice by the Office of
154Tourism, Trade, and Economic Development to the Department of
155Revenue that an applicant has been certified as the professional
156golf hall of fame pursuant to s. 288.1168 and is open to the
157public, $166,667 shall be distributed monthly, for up to 300
158months, to the applicant.
159     d.  Beginning 30 days after notice by the Office of
160Tourism, Trade, and Economic Development to the Department of
161Revenue that the applicant has been certified as the
162International Game Fish Association World Center facility
163pursuant to s. 288.1169, and the facility is open to the public,
164$83,333 shall be distributed monthly, for up to 168 months, to
165the applicant. This distribution is subject to reduction
166pursuant to s. 288.1169. A lump sum payment of $999,996 shall be
167made, after certification and before July 1, 2000.
168     e.  Beginning 30 days after notice by the Office of
169Tourism, Trade, and Economic Development to the Department of
170Revenue that an applicant has been certified as a motorsports
171entertainment complex pursuant to s. 288.1170 and is open to the
172public, an amount not to exceed $166,667 shall be distributed
173monthly to the applicant. However, each state fiscal year's
174total distribution made pursuant to this sub-subparagraph shall
175not exceed the difference between the state sales taxes
176collected and remitted pursuant to this chapter by the certified
177applicant in the previous calendar year and state sales taxes
178collected and remitted pursuant to this chapter by the certified
179applicant in calendar year 2000. Distributions shall continue
180for 30 years.
181     8.  All other proceeds shall remain with the General
182Revenue Fund.
183     Section 2.  Section 288.1170, Florida Statutes, is created
184to read:
185     288.1170  Motorsports entertainment complex; definitions;
186certification; duties.--
187     (1)  As used in this section:
188     (a)  "Applicant" means the owner of a motorsports
189entertainment complex.
190     (b)  "Motorsports entertainment complex" means a closed-
191course racing facility, with ancillary grounds and facilities,
192which:
193     1.  Has not fewer than 65,000 permanent seats for race
194patrons.
195     2.  Has not fewer than 7 scheduled days of motorsports
196events each calendar year.
197     3.  Has paid admissions of at least 125,000 annually.
198     4.  Serves food at the facility during sanctioned
199motorsports events.
200     5.  Engages in tourism promotion.
201     (c)  "Motorsports event" means a motorsports race and its
202ancillary activities which have been sanctioned by a sanctioning
203body.
204     (d)  "Office" means the Office of Tourism, Trade, and
205Economic Development of the Executive Office of the Governor.
206     (e)  "Owner" means a unit of local government that owns a
207motorsports entertainment complex or owns the land on which the
208motorsports entertainment complex is located.
209     (f)  "Sanctioning body" means the American Motorcyclist
210Association (AMA), Championship Auto Racing Teams (CART), Grand
211American Road Racing Association (Grand-Am), Indy Racing League
212(IRL), National Association for Stock Car Auto Racing (NASCAR),
213National Hot Rod Association (NHRA), Professional Sports Car
214Racing (PSCR), Sports Car Club of America (SCCA), United States
215Auto Club (USAC), or any successor organization, or any other
216nationally recognized governing body of motorsports that
217establishes an annual schedule of motorsports events and grants
218rights to conduct such events, has established and administers
219rules and regulations governing all participants involved in
220such events and all persons conducting such events, and requires
221certain liability assurances, including insurance.
222     (g)  "Unit of local government" has the same meaning as
223provided in s. 218.369.
224     (2)  The office shall serve as the state agency for
225screening applicants for state funding pursuant to s. 212.20 and
226for certifying an applicant as a motorsports entertainment
227complex. The office shall develop and adopt rules for the
228receipt and processing of applications for funding pursuant to
229s. 212.20. The office shall make a determination regarding any
230application filed by an applicant not later than 120 days after
231the application is filed.
232     (3)  Prior to certifying an applicant as a motorsports
233entertainment complex, the office must determine that:
234     (a)  A unit of local government holds title to the land on
235which the motorsports entertainment complex is located or holds
236title to the motorsports entertainment complex.
237     (b)  Seven scheduled days of motorsports events were held
238at the motorsports entertainment complex in the most recently
239completed calendar year or 7 scheduled days of motorsports
240events are scheduled to be held at the motorsports entertainment
241complex in the calendar year that begins after the submission of
242the application. The applicant shall submit certifications from
243the appropriate officials of the relevant sanctioning bodies
244that such sanctioned motorsports events were or will be held at
245the motorsports entertainment complex.
246     (c)  The applicant can provide a certification by a
247nationally recognized, independent certified public accounting
248firm that the motorsports entertainment complex will attract, or
249in the most recently completed calendar year has attracted, paid
250attendance of at least 125,000 annually.
251     (d)  The applicant can provide a certification by a
252nationally recognized, independent certified public accounting
253firm that the amount of the revenues generated by the taxes
254imposed under chapter 212 with respect to the use and operation
255of the motorsports entertainment complex will equal or exceed $1
256million annually.
257     (e)  The municipality in which the motorsports
258entertainment complex is located, or the county if the
259motorsports entertainment complex is located in an
260unincorporated area, has certified by resolution after a public
261hearing that the application serves a public purpose.
262     (f)  The motorsports entertainment complex is located in a
263county defined in s. 125.011(1).
264     (4)  Upon determining that an applicant meets the
265requirements of subsection (3), the office shall certify the
266applicant as a motorsports entertainment complex and shall
267notify the applicant and the executive director of the
268Department of Revenue of such certification by means of an
269official letter granting certification. If the applicant fails
270to meet the certification requirements of subsection (3), the
271office shall notify the applicant not later than 10 days
272following such determination.
273     (5)  No motorsports entertainment complex that has been
274previously certified under this section and has received funding
275under such certification shall be eligible for any additional
276certification.
277     (6)  An applicant certified as a motorsports entertainment
278complex may use funds provided pursuant to s. 212.20 only for
279the following public purposes:
280     (a)  Paying for the construction, reconstruction,
281expansion, or renovation of a motorsports entertainment complex.
282     (b)  Paying debt service reserve funds, arbitrage rebate
283obligations, or other amounts payable with respect to bonds
284issued for the construction, reconstruction, expansion, or
285renovation of the motorsports entertainment complex or for the
286reimbursement of such costs or the refinancing of bonds issued
287for such purposes.
288     (c)  Paying for construction, reconstruction, expansion, or
289renovation of transportation or other infrastructure
290improvements related to, necessary for, or appurtenant to the
291motorsports entertainment complex, including, without
292limitation, paying debt service reserve funds, arbitrage rebate
293obligations, or other amounts payable with respect to bonds
294issued for the construction, reconstruction, expansion, or
295renovation of such transportation or other infrastructure
296improvements, and for the reimbursement of such costs or the
297refinancing of bonds issued for such purposes.
298     (d)  Paying for programs of advertising and promotion of or
299related to the motorsports entertainment complex or the
300municipality in which the motorsports entertainment complex is
301located, or the county if the motorsports entertainment complex
302is located in an unincorporated area, provided such programs of
303advertising and promotion are designed to increase paid
304attendance at the motorsports entertainment complex or increase
305tourism in or promote the economic development of the community
306in which the motorsports entertainment complex is located.
307     (7)  The Department of Revenue may audit, as provided in s.
308213.34, to verify that the distributions pursuant to this
309section have been expended as required in this section. All
310other provisions of chapter 213 shall apply to such audits. If
311the Department of Revenue determines that the distributions
312pursuant to certification under this section have not been
313expended as required by this section, the department may pursue
314recovery of such funds pursuant to the laws and rules governing
315the assessment of taxes.
316     Section 3.  This act shall take effect July 1, 2006.


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