Senate Bill 1294

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    Florida Senate - 2000                                  SB 1294

    By Senator Diaz-Balart





    37-829-00                                               See HB

  1                      A bill to be entitled

  2         An act relating to commercial development and

  3         capital improvements; 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 a motorsports entertainment

  7         complex; creating s. 288.1170, F.S.; providing

  8         definitions; providing for certification of

  9         such facility by the Office of Tourism, Trade,

10         and Economic Development of the Executive

11         Office of the Governor; providing requirements

12         for certification; requiring specified notice;

13         providing for annual recertification; providing

14         for a reduction of funding under certain

15         circumstances; providing for use of the funds

16         distributed to a motorsports entertainment

17         complex; providing for audits by the Department

18         of Revenue; providing an effective date.

19

20         WHEREAS, it is the finding of the Legislature that

21  Florida has long been the preeminent site in the nation for

22  motorsports racing, and

23         WHEREAS, motorsports racing has been a major tourist

24  attraction in Florida for nearly 100 years, and

25         WHEREAS, motorsports entertainment is the fastest

26  growing sports industry in the United States, and

27         WHEREAS, as a result of the increased popularity of

28  motorsports racing, many new motorsports facilities are being

29  constructed in other states, and

30         WHEREAS, to continue to attract spectators to

31  sanctioned championship motorsports events, the owner or

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    Florida Senate - 2000                                  SB 1294
    37-829-00                                               See HB




  1  operator of a motorsports entertainment complex must build

  2  additional spectator seating and renovate existing facilities

  3  to improve the amenities available to spectators, and

  4         WHEREAS, attracting, retaining, and providing favorable

  5  conditions for conducting sanctioned championship motorsports

  6  events and the continued development of the motorsports

  7  entertainment industry in Florida provides skilled-employment

  8  opportunities for citizens of this state, and

  9         WHEREAS, continued development and improvement of

10  Florida's motorsports entertainment industry is vital to

11  Florida's tourism industry and to state revenues, and

12         WHEREAS, the motorsports entertainment industry is a

13  major contributor to Florida's economic development because of

14  the technology and service businesses that provide goods and

15  services to the industry, and

16         WHEREAS, the provisions of this act are necessary to

17  protect and strengthen Florida's motorsports entertainment

18  industry, and the purposes to be achieved by this act are

19  predominately public purposes vital to the protection and

20  improvement of Florida's economy, NOW, THEREFORE,

21

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

23

24         Section 1.  Paragraph (f) of subsection (6) of section

25  212.20, Florida Statutes, 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  shall be as follows:

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    Florida Senate - 2000                                  SB 1294
    37-829-00                                               See HB




  1         (f)  The proceeds of all other taxes and fees imposed

  2  pursuant to this chapter shall be distributed as follows:

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

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

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

  6  other taxes and fees imposed pursuant to this chapter shall be

  7  deposited in monthly installments into the General Revenue

  8  Fund.

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

10  the Solid Waste Management Trust Fund.

11         3.  After the distribution under subparagraphs 1. and

12  2., 9.653 percent of the amount remitted by a sales tax dealer

13  located within a participating county pursuant to s. 218.61

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

15  Tax Clearing Trust Fund.

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

17  and 3., 0.054 percent shall be transferred to the Local

18  Government Half-cent Sales Tax Clearing Trust Fund and

19  distributed pursuant to s. 218.65.

20         5.  Of the remaining proceeds:

21         a.  Beginning July 1, 1992, $166,667 shall be

22  distributed monthly by the department to each applicant that

23  has been certified as a "facility for a new professional

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

25  sports franchise" pursuant to s. 288.1162 and $41,667 shall be

26  distributed monthly by the department to each applicant that

27  has been certified as a "new spring training franchise

28  facility" pursuant to s. 288.1162. Distributions shall begin

29  60 days following such certification and shall continue for 30

30  years. Nothing contained herein shall be construed to allow an

31  applicant certified pursuant to s. 288.1162 to receive more in

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    Florida Senate - 2000                                  SB 1294
    37-829-00                                               See HB




  1  distributions than actually expended by the applicant for the

  2  public purposes provided for in s. 288.1162(7). However, a

  3  certified applicant shall receive distributions up to the

  4  maximum amount allowable and undistributed under this section

  5  for additional renovations and improvements to the facility

  6  for the franchise without additional certification.

  7         b.  Beginning 30 days after notice by the Office of

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

  9  Revenue that an applicant has been certified as the

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

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

12  up to 300 months, to the applicant.

13         c.  Beginning 30 days after notice by the Department of

14  Commerce to the Department of Revenue that the applicant has

15  been certified as the International Game Fish Association

16  World Center facility pursuant to s. 288.1169, and the

17  facility is open to the public, $83,333 shall be distributed

18  monthly, for up to 180 months, to the applicant.  This

19  distribution is subject to reduction pursuant to s. 288.1169.

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

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

22  Revenue that the applicant has been certified as a motorsports

23  entertainment complex pursuant to s. 288.1170, $166,667 shall

24  be distributed monthly, for up to 360 months, to the

25  applicant.

26         6.  All other proceeds shall remain with the General

27  Revenue Fund.

28         Section 2.  Section 288.1170, Florida Statutes, is

29  created to read:

30         288.1170  Motorsports entertainment complex;

31  definitions; certification; duties.--

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    Florida Senate - 2000                                  SB 1294
    37-829-00                                               See HB




  1         (1)  As used in this section, the following terms shall

  2  have the following meanings:

  3         (a)  "Applicant" means the owner of a motorsports

  4  entertainment complex.

  5         (b)  "Motorsports entertainment complex" means a

  6  closed-course racing facility, with ancillary grounds and

  7  facilities, which:

  8         1.  Has not fewer than 70,000 permanent seats for race

  9  patrons.

10         2.  Has not fewer than 7 scheduled days of motorsports

11  events each calendar year.

12         3.  Has not fewer than four motorsports events each

13  calendar year.

14         4.  Has paid admissions of more than 200,000 annually.

15         5.  Serves food at the facility during sanctioned

16  motorsports races.

17         6.  Engages in tourism promotion.

18         7.  Has on the property permanent exhibitions of

19  motorsports history, events, or vehicles.

20         (c)  "Motorsports event" means a motorsports race and

21  its ancillary activities, which have been sanctioned by a

22  sanctioning body.

23         (d)  "Office" means the Office of Tourism, Trade, and

24  Economic Development of the Executive Office of the Governor.

25         (e)  "Owner" means a person who owns or operates a

26  motorsports entertainment complex, or a person who leases a

27  motorsports entertainment complex or the land on which a

28  motorsports entertainment complex is located from the Federal

29  Government, the state, or a county, municipality, or special

30  district, and operates the motorsports entertainment complex.

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    Florida Senate - 2000                                  SB 1294
    37-829-00                                               See HB




  1         (f)  "Sanctioning body" means the American Motorcycle

  2  Association (AMA), Championship Auto Racing Teams (CART),

  3  Grand American Road Racing Association (Grand Am), Indy Racing

  4  League (IRL), National Association for Stock Car Auto Racing

  5  (NASCAR), National Hot Rod Association (NHRA), Professional

  6  Sportscar Racing (PSR), Sports Car Club of America (SCCA),

  7  United States Auto Club (USAC), or any successor organization,

  8  or any other nationally recognized governing body of

  9  motorsports which establishes an annual schedule of

10  motorsports events and grants rights to conduct such events,

11  has established and administers rules and regulations

12  governing all participants involved in such events and all

13  persons conducting such events, and requires certain liability

14  assurances, including insurance.

15         (g)  "Unit of local government" has the meaning

16  ascribed in s. 218.369.

17         (3)  The Office of Tourism, Trade, and Economic

18  Development shall serve as the state agency for screening

19  applicants for state funding pursuant to s. 212.20 and for

20  certifying an applicant as a motorsports entertainment

21  complex.  The office shall develop and adopt rules for the

22  receipt and processing of applications for funding pursuant to

23  s. 212.20.  The office shall make a determination regarding

24  any application filed by an applicant not later than 120 days

25  after the application is filed.

26         (4)  Prior to certifying an applicant as a motorsports

27  entertainment complex, the office must determine that:

28         (a)  A unit of local government holds title to the land

29  on which the motorsports entertainment complex is located,

30  holds title to the motorsports entertainment complex, or is

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    Florida Senate - 2000                                  SB 1294
    37-829-00                                               See HB




  1  responsible for the construction, management, and operation of

  2  the motorsports entertainment complex.

  3         (b)  Four sanctioned motorsports events were held at

  4  the motorsports entertainment complex in the most recently

  5  completed calendar year or four sanctioned motorsports events

  6  are scheduled to be held at the motorsports entertainment

  7  complex in the calendar year that begins after the submission

  8  of the application.  The applicant must submit certifications

  9  from the appropriate officials of the relevant sanctioning

10  bodies that such sanctioned motorsports events were or will be

11  held at the motorsports entertainment complex.

12         (c)  The applicant has an independent analysis or

13  study, verified by the office, which demonstrates that the

14  motorsports entertainment complex will attract, or in the most

15  recently completed calendar year has attracted, paid

16  attendance of more than 200,000 annually.

17         (d)  The applicant has an independent analysis or

18  study, verified by the office, which demonstrates that the

19  amount of the revenues generated by the taxes imposed under

20  chapter 212 with respect to the use and operation of the

21  motorsports entertainment complex will equal or exceed $2

22  million annually.

23         (e)  The municipality in which the motorsports

24  entertainment complex is located, or the county if the

25  motorsports entertainment complex is located in an

26  unincorporated area, has certified by resolution after a

27  public hearing that the application serves a public purpose.

28         (f)  The applicant has demonstrated that it is capable

29  of providing, or has financial or other commitments to

30  provide, more than one-half of the costs that will be incurred

31  after certification under this section for the improvement and

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    Florida Senate - 2000                                  SB 1294
    37-829-00                                               See HB




  1  development or continued improvement and development of the

  2  motorsports entertainment complex which will enable the

  3  motorsports entertainment complex to retain or add motorsports

  4  events sanctioned by a sanctioning body.

  5         (5)  Upon determining that an applicant meets the

  6  requirements of subsection (4), the office shall notify the

  7  applicant and the executive director of the Department of

  8  Revenue of such certification by means of an official letter

  9  granting certification.  If the applicant fails to meet the

10  certification requirements of subsection (4), the office shall

11  notify the applicant not later than 10 days following such

12  determination.

13         (6)  The office must recertify each year that the

14  motorsports entertainment complex continues to generate $2

15  million of sales tax revenues annually as required pursuant to

16  paragraph (4)(d).  If the motorsports entertainment complex

17  fails to generate $2 million of sales tax revenues annually as

18  required pursuant to paragraph (4)(d), the distribution of

19  revenues pursuant to s. 212.20(6)(f)5.d. shall be reduced to

20  an amount equal to $166,667 multiplied by a fraction, the

21  numerator of which is the actual revenues generated and the

22  denominator of which is $2 million.  Such reduction shall

23  remain in effect until revenues generated by the motorsports

24  entertainment complex in a consecutive 12-month period equal

25  or exceed $2 million.

26         (7)  No motorsports entertainment complex that has been

27  previously certified under this section and has received

28  funding under such certification shall be eligible for any

29  additional certification.

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    Florida Senate - 2000                                  SB 1294
    37-829-00                                               See HB




  1         (8)  An applicant certified as a motorsports

  2  entertainment complex may use funds provided pursuant to s.

  3  212.20 only for the following public purposes:

  4         (a)  Paying for the construction, reconstruction,

  5  expansion, or renovation of a motorsports entertainment

  6  complex.

  7         (b)  Paying debt service reserve funds, arbitrage

  8  rebate obligations, or other amounts payable with respect to

  9  bonds issued for the construction, reconstruction, expansion,

10  or renovation of the motorsports entertainment complex or for

11  the reimbursement of such costs or the refinancing of bonds

12  issued for such purposes.

13         (c)  Paying for construction, reconstruction,

14  expansion, or renovation of transportation or other

15  infrastructure improvements related to, necessary for, or

16  appurtenant to the motorsports entertainment complex,

17  including, without limitation, paying debt service reserve

18  funds, arbitrage rebate obligations, or other amounts payable

19  with respect to bonds issued for the construction,

20  reconstruction, expansion, or renovation of such

21  transportation or other infrastructure improvements, and for

22  the reimbursement of such costs or the refinancing of bonds

23  issued for such purposes.

24         (d)  Paying for programs of advertising and promotion

25  of or programs related to the motorsports entertainment

26  complex or the municipality in which the motorsports

27  entertainment complex is located, or the county if the

28  motorsports entertainment complex is located in an

29  unincorporated area, provided such programs of advertising and

30  promotion are designed to increase paid attendance at the

31  motorsports entertainment complex or increase tourism in or

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    Florida Senate - 2000                                  SB 1294
    37-829-00                                               See HB




  1  promote the economic development of the community in which the

  2  motorsports entertainment complex is located.

  3         (9)  The Department of Revenue may audit, as provided

  4  in s. 213.34, to verify that the distributions pursuant to

  5  this section have been expended as required in this section.

  6  Such information is subject to the confidentiality

  7  requirements of chapter 213.  If the Department of Revenue

  8  determines that the distributions pursuant to this section

  9  have not been expended as required by this section, it may

10  pursue recovery of such funds pursuant to the laws and rules

11  governing the assessment of taxes.

12         Section 3.  This act shall take effect July 1, 2000.

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14            *****************************************

15                       LEGISLATIVE SUMMARY

16
      Provides for distribution of a portion of revenues from
17    the tax on sales, use, and other transactions to finance
      motorsports entertainment complexes. Defines "motorsports
18    entertainment complex" and other terms for purposes of
      the act. Provides for certification of a motorsports
19    entertainment complex by the Office of Tourism, Trade,
      and Economic Development of the Executive Office of the
20    Governor. Provides requirements for certification.
      Requires specified notice. Provides for the use of funds
21    distributed to a motorsports entertainment complex.
      Provides for annual recertification. Provides for a
22    reduction of funding under certain circumstances.
      Provides for audits by the Department of Revenue.
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