House Bill hb0129

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




    Florida House of Representatives - 2002                 HB 129

        By Representative Barreiro






  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 use of the funds distributed to a

15         motorsports entertainment complex; providing

16         for audits by the Department of Revenue;

17         providing an effective date.

18

19         WHEREAS, it is the finding of the Legislature that

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

21  motorsports racing, and

22         WHEREAS, motorsports racing has been a major tourist

23  attraction in Florida for nearly 100 years, and

24         WHEREAS, motorsports entertainment is the fastest

25  growing sports industry in the United States, and

26         WHEREAS, as a result of the increased popularity of

27  motorsports racing, many new motorsports facilities are being

28  constructed in other states, and

29         WHEREAS, to continue to attract spectators to

30  sanctioned championship motorsports events, the owner or

31  operator of a motorsports entertainment complex must build

                                  1

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






    Florida House of Representatives - 2002                 HB 129

    723-133B-02






  1  additional spectator seating and renovate existing facilities

  2  to improve the amenities available to spectators, and

  3         WHEREAS, attracting, retaining, and providing favorable

  4  conditions for conducting sanctioned championship motorsports

  5  events and the continued development of the motorsports

  6  entertainment industry in Florida provides skilled-employment

  7  opportunities for citizens of this state, and

  8         WHEREAS, continued development and improvement of

  9  Florida's motorsports entertainment industry is vital to

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

11         WHEREAS, the motorsports entertainment industry is a

12  major contributor to Florida's economic development because of

13  the technology and service businesses that provide goods and

14  services to the industry, and

15         WHEREAS, the provisions of this act are necessary to

16  protect and strengthen Florida's motorsports entertainment

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

18  predominately public purposes vital to the protection and

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

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, is amended to read:

25         212.20  Funds collected, disposition; additional powers

26  of department; operational expense; refund of taxes

27  adjudicated unconstitutionally collected.--

28         (6)  Distribution of all proceeds under this chapter

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

30

31

                                  2

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






    Florida House of Representatives - 2002                 HB 129

    723-133B-02






  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 Solid Waste Management Trust Fund.

13         3.  After the distribution under subparagraphs 1. and

14  2., 9.653 percent of the amount remitted by a sales tax dealer

15  located within a participating county pursuant to s. 218.61

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

17  Tax Clearing Trust Fund.

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

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

20  Government Half-cent Sales Tax Clearing Trust Fund and

21  distributed pursuant to s. 218.65.

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

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

24  percent of the available proceeds pursuant to this paragraph

25  shall be transferred monthly to the Revenue Sharing Trust Fund

26  for Counties pursuant to s. 218.215.

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

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

29  1.0715 percent of the available proceeds pursuant to this

30  paragraph shall be transferred monthly to the Revenue Sharing

31  Trust Fund for Municipalities pursuant to s. 218.215. If the

                                  3

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






    Florida House of Representatives - 2002                 HB 129

    723-133B-02






  1  total revenue to be distributed pursuant to this subparagraph

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

  3  Sharing Trust Fund for Municipalities and the Municipal

  4  Financial Assistance Trust Fund in state fiscal year

  5  1999-2000, no municipality shall receive less than the amount

  6  due from the Revenue Sharing Trust Fund for Municipalities and

  7  the Municipal Financial Assistance Trust Fund in state fiscal

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

  9  less than the amount received in combination from the Revenue

10  Sharing Trust Fund for Municipalities and the Municipal

11  Financial Assistance Trust Fund in state fiscal year

12  1999-2000, each municipality shall receive an amount

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

14  1999-2000.

15         7.  Of the remaining proceeds:

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

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

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

19  part shall be distributed to each county.  The distribution

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

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

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

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

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

25  district school board, special district, or a municipal

26  government, such payment shall continue until such time that

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

28  covenants with holders of bonds or other instruments of

29  indebtedness issued by local governments, special districts,

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

31  not the intent of this subparagraph to adversely affect the

                                  4

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






    Florida House of Representatives - 2002                 HB 129

    723-133B-02






  1  rights of those holders or relieve local governments, special

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

  3  obligations as a result of previous pledges or assignments or

  4  trusts entered into which obligated funds received from the

  5  distribution to county governments under then-existing s.

  6  550.135.  This distribution specifically is in lieu of funds

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

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

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

10  certified as a "facility for a new professional sports

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

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

13  distributed monthly by the department to each applicant that

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

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

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

17  all certified facilities for a retained spring training

18  franchise. Distributions shall begin 60 days following such

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

20  Nothing contained in this paragraph shall be construed to

21  allow an applicant certified pursuant to s. 288.1162 to

22  receive more in distributions than actually expended by the

23  applicant for the public purposes provided for in s.

24  288.1162(6). However, a certified applicant is entitled to

25  receive distributions up to the maximum amount allowable and

26  undistributed under this section for additional renovations

27  and improvements to the facility for the franchise without

28  additional certification.

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

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

31  Revenue that an applicant has been certified as the

                                  5

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






    Florida House of Representatives - 2002                 HB 129

    723-133B-02






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

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

  3  up to 300 months, to the applicant.

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

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

  6  Revenue that the applicant has been certified as the

  7  International Game Fish Association World Center facility

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

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

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

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

12  $999,996 shall be made, after certification and before July 1,

13  2000.

14         e.  Beginning 30 days after notice by the Office of

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

16  Revenue that the applicant has been certified as a motorsports

17  entertainment complex pursuant to s. 288.1170 and is open to

18  the public, an amount not to exceed $166,667 shall be

19  distributed monthly to the applicant. Distributions shall

20  continue for 30 years.

21         8.  All other proceeds shall remain with the General

22  Revenue Fund.

23         Section 2.  Section 288.1170, Florida Statutes, is

24  created to read:

25         288.1170  Motorsports entertainment complex;

26  definitions; certification; duties.--

27         (1)  As used in this section:

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

29  entertainment complex.

30

31

                                  6

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






    Florida House of Representatives - 2002                 HB 129

    723-133B-02






  1         (b)  "Motorsports entertainment complex" means a

  2  closed-course racing facility, with ancillary grounds and

  3  facilities, which:

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

  5  patrons.

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

  7  events each calendar year.

  8         3.  Has paid admissions of more than 200,000 annually.

  9         4.  Serves food at the facility during sanctioned

10  motorsports races.

11         5.  Engages in tourism promotion.

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

13  its ancillary activities, which have been sanctioned by a

14  sanctioning body.

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

16  Economic Development of the Executive Office of the Governor.

17         (e)  "Owner" means a unit of local government that owns

18  a motorsports entertainment complex or owns the land on which

19  the motorsports entertainment complex is located.

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

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

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

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

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

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

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

27  or any other nationally recognized governing body of

28  motorsports that establishes an annual schedule of motorsports

29  events and grants rights to conduct such events, has

30  established and administers rules and regulations governing

31  all participants involved in such events and all persons

                                  7

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






    Florida House of Representatives - 2002                 HB 129

    723-133B-02






  1  conducting such events, and requires certain liability

  2  assurances, including insurance.

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

  4  ascribed in s. 218.369.

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

  6  Development shall serve as the state agency for screening

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

  8  certifying an applicant as a motorsports entertainment

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

10  receipt and processing of applications for funding pursuant to

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

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

13  after the application is filed.

14         (3)  Prior to certifying an applicant as a motorsports

15  entertainment complex, the office must determine that:

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

17  on which the motorsports entertainment complex is located or

18  holds title to the motorsports entertainment complex.

19         (b)  Seven scheduled days of motorsports events were

20  held at the motorsports entertainment complex in the most

21  recently completed calendar year or seven scheduled days of

22  motorsports events are scheduled to be held at the motorsports

23  entertainment complex in the calendar year which begins after

24  the submission of the application.  The applicant shall submit

25  certifications from the appropriate officials of the relevant

26  sanctioning bodies that such sanctioned motorsports events

27  were or will be held at the motorsports entertainment complex.

28         (c)  The applicant has an independent analysis or

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

30  motorsports entertainment complex will attract, or in the most

31

                                  8

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






    Florida House of Representatives - 2002                 HB 129

    723-133B-02






  1  recently completed calendar year has attracted, paid

  2  attendance of more than 200,000 annually.

  3         (d)  The applicant has an independent analysis or

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

  5  amount of the revenues generated by the taxes imposed under

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

  7  motorsports entertainment complex is consistent with the

  8  provisions of this act.

  9         (e)  The municipality in which the motorsports

10  entertainment complex is located, or the county if the

11  motorsports entertainment complex is located in an

12  unincorporated area, has certified by resolution after a

13  public hearing that the application serves a public purpose.

14         (f)  The motorsports entertainment complex is located

15  in a county defined in s. 125.011(1).

16         (4)  Upon determining that an applicant meets the

17  requirements of subsection (3), the office shall notify the

18  applicant and the executive director of the Department of

19  Revenue of such certification by means of an official letter

20  granting certification.  If the applicant fails to meet the

21  certification requirements of subsection (3), the office shall

22  notify the applicant not later than 10 days following such

23  determination.

24         (5)  The office must recertify each year that the

25  motorsports entertainment complex continues to generate

26  sufficient sales tax revenues annually as required pursuant to

27  paragraph (3)(d).

28         (6)  No motorsports entertainment complex which has

29  been previously certified under this section and has received

30  funding under such certification shall be eligible for any

31  additional certification.

                                  9

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






    Florida House of Representatives - 2002                 HB 129

    723-133B-02






  1         (7)  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 related to the motorsports entertainment complex or the

26  municipality in which the motorsports entertainment complex is

27  located, or the county if the motorsports entertainment

28  complex is located in an unincorporated area, provided such

29  programs of advertising and promotion are designed to increase

30  paid attendance at the motorsports entertainment complex or

31  increase tourism in or promote the economic development of the

                                  10

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






    Florida House of Representatives - 2002                 HB 129

    723-133B-02






  1  community in which the motorsports entertainment complex is

  2  located.

  3         (8)  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, 2002.

13

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

15                          HOUSE 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 audits
22    by the Department of Revenue.

23

24

25

26

27

28

29

30

31

                                  11

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