HB 1705 2003
1	CHAMBER ACTION
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6	The Committee on Finance & Tax recommends the following:
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8	Committee Substitute
9	Remove the entire bill and insert:
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11	A bill to be entitled
12	An act relating to commercial development and capital
13	improvements; amending s. 212.20, F.S.; providing for
14	distribution of a portion of revenues from the tax on
15	sales, use, and other transactions to a motorsports
16	entertainment complex; providing a limit on such
17	distribution; providing that the distribution shall be
18	subject to a specific appropriation in the General
19	Appropriations Act annually; creating s. 288.1170, F.S.;
20	providing definitions; providing for certification of such
21	facility by the Office of Tourism, Trade, and Economic
22	Development of the Executive Office of the Governor;
23	providing requirements for certification; requiring
24	specified notice; providing for annual recertification;
25	providing for use of the funds distributed to a
26	motorsports entertainment complex; providing for audits by
27	the Department of Revenue; providing an effective date.
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29	WHEREAS, it is the finding of the Legislature that Florida
30	has long been the preeminent site in the nation for motorsports
31	racing, and
32	WHEREAS, motorsports racing has been a major tourist
33	attraction in Florida for nearly 100 years, and
34	WHEREAS, motorsports entertainment is the fastest growing
35	sports industry in the United States, and
36	WHEREAS, as a result of the increased popularity of
37	motorsports racing, many new motorsports facilities are being
38	constructed in other states, and
39	WHEREAS, to continue to attract spectators to sanctioned
40	championship motorsports events, the owner or operator of a
41	motorsports entertainment complex must build additional
42	spectator seating and renovate existing facilities to improve
43	the amenities available to spectators, and
44	WHEREAS, attracting, retaining, and providing favorable
45	conditions for conducting sanctioned championship motorsports
46	events and the continued development of the motorsports
47	entertainment industry in Florida provides skilled-employment
48	opportunities for citizens of this state, and
49	WHEREAS, continued development and improvement of Florida's
50	motorsports entertainment industry is vital to Florida's tourism
51	industry and to state revenues, and
52	WHEREAS, the motorsports entertainment industry is a major
53	contributor to Florida's economic development because of the
54	technology and service businesses that provide goods and
55	services to the industry, and
56	WHEREAS, the provisions of this act are necessary to
57	protect and strengthen Florida's motorsports entertainment
58	industry, and the purposes to be achieved by this act are
59	predominately public purposes vital to the protection and
60	improvement of Florida's economy, NOW, THEREFORE,
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62	Be It Enacted by the Legislature of the State of Florida:
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64	Section 1. Paragraph (d) of subsection (6) of section
65	212.20, Florida Statutes, is amended to read:
66	212.20 Funds collected, disposition; additional powers of
67	department; operational expense; refund of taxes adjudicated
68	unconstitutionally collected.--
69	(6) Distribution of all proceeds under this chapter and s.
70	202.18(1)(b) and (2)(b) shall be as follows:
71	(d) The proceeds of all other taxes and fees imposed
72	pursuant to this chapter or remitted pursuant to s. 202.18(1)(b)
73	and (2)(b) shall be distributed as follows:
74	1. In any fiscal year, the greater of $500 million, minus
75	an amount equal to 4.6 percent of the proceeds of the taxes
76	collected pursuant to chapter 201, or 5 percent of all other
77	taxes and fees imposed pursuant to this chapter or remitted
78	pursuant to s. 202.18(1)(b) and (2)(b) shall be deposited in
79	monthly installments into the General Revenue Fund.
80	2. Two-tenths of one percent shall be transferred to the
81	Ecosystem Management and Restoration Trust Fund to be used for
82	water quality improvement and water restoration projects.
83	3. After the distribution under subparagraphs 1. and 2.,
84	9.653 percent of the amount remitted by a sales tax dealer
85	located within a participating county pursuant to s. 218.61
86	shall be transferred into the Local Government Half-cent Sales
87	Tax Clearing Trust Fund.
88	4. After the distribution under subparagraphs 1., 2., and
89	3., 0.065 percent shall be transferred to the Local Government
90	Half-cent Sales Tax Clearing Trust Fund and distributed pursuant
91	to s. 218.65.
92	5. For proceeds received after July 1, 2000, and after the
93	distributions under subparagraphs 1., 2., 3., and 4., 2.25
94	percent of the available proceeds pursuant to this paragraph
95	shall be transferred monthly to the Revenue Sharing Trust Fund
96	for Counties pursuant to s. 218.215.
97	6. For proceeds received after July 1, 2000, and after the
98	distributions under subparagraphs 1., 2., 3., and 4., 1.0715
99	percent of the available proceeds pursuant to this paragraph
100	shall be transferred monthly to the Revenue Sharing Trust Fund
101	for Municipalities pursuant to s. 218.215. If the total revenue
102	to be distributed pursuant to this subparagraph is at least as
103	great as the amount due from the Revenue Sharing Trust Fund for
104	Municipalities and the Municipal Financial Assistance Trust Fund
105	in state fiscal year 1999-2000, no municipality shall receive
106	less than the amount due from the Revenue Sharing Trust Fund for
107	Municipalities and the Municipal Financial Assistance Trust Fund
108	in state fiscal year 1999-2000. If the total proceeds to be
109	distributed are less than the amount received in combination
110	from the Revenue Sharing Trust Fund for Municipalities and the
111	Municipal Financial Assistance Trust Fund in state fiscal year
112	1999-2000, each municipality shall receive an amount
113	proportionate to the amount it was due in state fiscal year
114	1999-2000.
115	7. Of the remaining proceeds:
116	a. Beginning July 1, 2000, and in each fiscal year
117	thereafter, the sum of $29,915,500 shall be divided into as many
118	equal parts as there are counties in the state, and one part
119	shall be distributed to each county. The distribution among the
120	several counties shall begin each fiscal year on or before
121	January 5th and shall continue monthly for a total of 4 months.
122	If a local or special law required that any moneys accruing to a
123	county in fiscal year 1999-2000 under the then-existing
124	provisions of s. 550.135 be paid directly to the district school
125	board, special district, or a municipal government, such payment
126	shall continue until such time that the local or special law is
127	amended or repealed. The state covenants with holders of bonds
128	or other instruments of indebtedness issued by local
129	governments, special districts, or district school boards prior
130	to July 1, 2000, that it is not the intent of this subparagraph
131	to adversely affect the rights of those holders or relieve local
132	governments, special districts, or district school boards of the
133	duty to meet their obligations as a result of previous pledges
134	or assignments or trusts entered into which obligated funds
135	received from the distribution to county governments under then-
136	existing s. 550.135. This distribution specifically is in lieu
137	of funds distributed under s. 550.135 prior to July 1, 2000.
138	b. The department shall distribute $166,667 monthly
139	pursuant to s. 288.1162 to each applicant that has been
140	certified as a "facility for a new professional sports
141	franchise" or a "facility for a retained professional sports
142	franchise" pursuant to s. 288.1162. Up to $41,667 shall be
143	distributed monthly by the department to each applicant that has
144	been certified as a "facility for a retained spring training
145	franchise" pursuant to s. 288.1162; however, not more than
146	$208,335 may be distributed monthly in the aggregate to all
147	certified facilities for a retained spring training franchise.
148	Distributions shall begin 60 days following such certification
149	and shall continue for not more than 30 years. Nothing contained
150	in this paragraph shall be construed to allow an applicant
151	certified pursuant to s. 288.1162 to receive more in
152	distributions than actually expended by the applicant for the
153	public purposes provided for in s. 288.1162(6). However, a
154	certified applicant is entitled to receive distributions up to
155	the maximum amount allowable and undistributed under this
156	section for additional renovations and improvements to the
157	facility for the franchise without additional certification.
158	c. Beginning 30 days after notice by the Office of
159	Tourism, Trade, and Economic Development to the Department of
160	Revenue that an applicant has been certified as the professional
161	golf hall of fame pursuant to s. 288.1168 and is open to the
162	public, $166,667 shall be distributed monthly, for up to 300
163	months, to the applicant.
164	d. Beginning 30 days after notice by the Office of
165	Tourism, Trade, and Economic Development to the Department of
166	Revenue that the applicant has been certified as the
167	International Game Fish Association World Center facility
168	pursuant to s. 288.1169, and the facility is open to the public,
169	$83,333 shall be distributed monthly, for up to 168 months, to
170	the applicant. This distribution is subject to reduction
171	pursuant to s. 288.1169. A lump sum payment of $999,996 shall be
172	made, after certification and before July 1, 2000.
173	e. Beginning 30 days after notice by the Office of
174	Tourism, Trade, and Economic Development to the Department of
175	Revenue that the applicant has been certified as a motorsports
176	entertainment complex pursuant to s. 288.1170 and is open to the
177	public, an amount not to exceed $166,667 shall be distributed
178	monthly to the applicant. However, each fiscal year's total
179	distribution made pursuant to this sub-subparagraph shall not
180	exceed the difference between the state sales taxes collected
181	and remitted pursuant to this chapter by the facility in the
182	previous calendar year and those collected and remitted in
183	calendar year 2000. All distributions made under this sub-
184	subparagraph shall be subject to a specific appropriation in the
185	General Appropriations Act annually.
186	8. All other proceeds shall remain with the General
187	Revenue Fund.
188	Section 2. Section 288.1170, Florida Statutes, is created
189	to read:
190	288.1170 Motorsports entertainment complex; definitions;
191	certification; duties.--
192	(1) As used in this section:
193	(a) "Applicant" means the owner of a motorsports
194	entertainment complex.
195	(b) "Motorsports entertainment complex" means a closed-
196	course racing facility, with ancillary grounds and facilities,
197	which:
198	1. Has not fewer than 70,000 permanent seats for race
199	patrons.
200	2. Has not fewer than 7 scheduled days of motorsports
201	events each calendar year.
202	3. Has paid admissions of more than 200,000 annually.
203	4. Serves food at the facility during sanctioned
204	motorsports races.
205	5. Engages in tourism promotion.
206	(c) "Motorsports event" means a motorsports race and its
207	ancillary activities, which have been sanctioned by a
208	sanctioning body.
209	(d) "Office" means the Office of Tourism, Trade, and
210	Economic Development of the Executive Office of the Governor.
211	(e) "Owner" means a unit of local government that owns a
212	motorsports entertainment complex or owns the land on which the
213	motorsports entertainment complex is located.
214	(f) "Sanctioning body" means the American Motorcycle
215	Association (AMA), Championship Auto Racing Teams (CART), Grand
216	American Road Racing Association(Grand Am), Indy Racing League
217	(IRL), National Association for Stock Car Auto Racing (NASCAR),
218	National Hot Rod Association (NHRA), Professional Sportscar
219	Racing (PSR), Sports Car Club of America (SCCA), United States
220	Auto Club (USAC), or any successor organization, or any other
221	nationally recognized governing body of motorsports that
222	establishes an annual schedule of motorsports events and grants
223	rights to conduct such events, has established and administers
224	rules and regulations governing all participants involved in
225	such events and all persons conducting such events, and requires
226	certain liability assurances, including insurance.
227	(g) "Unit of local government" has the meaning ascribed in
228	s. 218.369.
229	(2) The Office of Tourism, Trade, and Economic Development
230	shall serve as the state agency for screening applicants for
231	state funding pursuant to s. 212.20 and for certifying an
232	applicant as a motorsports entertainment complex. The office
233	shall develop and adopt rules for the receipt and processing of
234	applications for funding pursuant to s. 212.20. The office
235	shall make a determination regarding any application filed by an
236	applicant not later than 120 days after the application is
237	filed.
238	(3) Prior to certifying an applicant as a motorsports
239	entertainment complex, the office must determine that:
240	(a) A unit of local government holds title to the land on
241	which the motorsports entertainment complex is located or holds
242	title to the motorsports entertainment complex.
243	(b) Seven scheduled days of motorsports events were held
244	at the motorsports entertainment complex in the most recently
245	completed calendar year or seven scheduled days of motorsports
246	events are scheduled to be held at the motorsports entertainment
247	complex in the calendar year which begins after the submission
248	of the application. The applicant shall submit certifications
249	from the appropriate officials of the relevant sanctioning
250	bodies that such sanctioned motorsports events were or will be
251	held at the motorsports entertainment complex.
252	(c) The applicant has an independent analysis or study,
253	verified by the office, which demonstrates that the motorsports
254	entertainment complex will attract, or in the most recently
255	completed calendar year has attracted, paid attendance of more
256	than 200,000 annually.
257	(d) The applicant has an independent analysis or study,
258	verified by the office, which demonstrates that the amount of
259	the revenues generated by the taxes imposed under chapter 212
260	with respect to the use and operation of the motorsports
261	entertainment complex is consistent with the provisions of this
262	act.
263	(e) The municipality in which the motorsports
264	entertainment complex is located, or the county if the
265	motorsports entertainment complex is located in an
266	unincorporated area, has certified by resolution after a public
267	hearing that the application serves a public purpose.
268	(f) The motorsports entertainment complex is located in a
269	county defined in s. 125.011(1).
270	(4) Upon determining that an applicant meets the
271	requirements of subsection (3), the office shall notify the
272	applicant and the executive director of the Department of
273	Revenue of such certification by means of an official letter
274	granting certification. If the applicant fails to meet the
275	certification requirements of subsection (3), the office shall
276	notify the applicant not later than 10 days following such
277	determination.
278	(5) The office must recertify each year that the
279	motorsports entertainment complex continues to generate
280	sufficient sales tax revenues annually as required pursuant to
281	paragraph (3)(d).
282	(6) No motorsports entertainment complex which has been
283	previously certified under this section and has received funding
284	under such certification shall be eligible for any additional
285	certification.
286	(7) An applicant certified as a motorsports entertainment
287	complex may use funds provided pursuant to s. 212.20 only for
288	the following public purposes:
289	(a) Paying for the construction, reconstruction,
290	expansion, or renovation of a motorsports entertainment complex.
291	(b) Paying debt service reserve funds, arbitrage rebate
292	obligations, or other amounts payable with respect to bonds
293	issued for the construction, reconstruction, expansion, or
294	renovation of the motorsports entertainment complex or for the
295	reimbursement of such costs or the refinancing of bonds issued
296	for such purposes.
297	(c) Paying for construction, reconstruction, expansion, or
298	renovation of transportation or other infrastructure
299	improvements related to, necessary for, or appurtenant to the
300	motorsports entertainment complex, including, without
301	limitation, paying debt service reserve funds, arbitrage rebate
302	obligations, or other amounts payable with respect to bonds
303	issued for the construction, reconstruction, expansion, or
304	renovation of such transportation or other infrastructure
305	improvements, and for the reimbursement of such costs or the
306	refinancing of bonds issued for such purposes.
307	(d) Paying for programs of advertising and promotion of or
308	related to the motorsports entertainment complex or the
309	municipality in which the motorsports entertainment complex is
310	located, or the county if the motorsports entertainment complex
311	is located in an unincorporated area, provided such programs of
312	advertising and promotion are designed to increase paid
313	attendance at the motorsports entertainment complex or increase
314	tourism in or promote the economic development of the community
315	in which the motorsports entertainment complex is located.
316	(8) The Department of Revenue may audit, as provided in s.
317	213.34, to verify that the distributions pursuant to this
318	section have been expended as required in this section. Such
319	information is subject to the confidentiality requirements of
320	chapter 213. If the Department of Revenue determines that the
321	distributions pursuant to this section have not been expended as
322	required by this section, it may pursue recovery of such funds
323	pursuant to the laws and rules governing the assessment of
324	taxes.
325	Section 3. This act shall take effect July 1, 2003.