HB 1723

1
A bill to be entitled
2An act relating to commercial development and capital
3improvements; amending s. 212.20, F.S.; providing for
4distribution of a portion of revenues from the tax on
5sales, use, and other transactions to a motorsports
6entertainment complex; providing a limit on such
7distribution; creating s. 288.1170, F.S.; providing
8definitions; providing for certification of such facility
9by the Office of Tourism, Trade, and Economic Development
10of the Executive Office of the Governor; providing
11requirements for certification; requiring specified
12notice; providing for annual recertification; providing
13for use of the funds distributed to a motorsports
14entertainment complex; providing for audits by the
15Department of Revenue; providing an effective date.
16
17     WHEREAS, it is the finding of the Legislature that Florida
18has long been the preeminent site in the nation for motorsports
19racing, and
20     WHEREAS, motorsports racing has been a major tourist
21attraction in Florida for nearly 100 years, and
22     WHEREAS, motorsports entertainment is the fastest growing
23sports industry in the United States, and
24     WHEREAS, in November 1999, the NASCAR Winston Cup race
25attracted 60,000 spectators, 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 Municipal
99Financial Assistance Trust Fund in state fiscal year 1999-2000,
100no municipality shall receive less than the amount due from the
101Revenue Sharing Trust Fund for Municipalities and the Municipal
102Financial Assistance Trust Fund in state fiscal year 1999-2000.
103If the total proceeds to be distributed are less than the amount
104received in combination from the Revenue Sharing Trust Fund for
105Municipalities and the Municipal Financial Assistance Trust Fund
106in state fiscal year 1999-2000, each municipality shall receive
107an amount proportionate to the amount it was due in state fiscal
108year 1999-2000.
109     7.  Of the remaining proceeds:
110     a.  In each fiscal year, the sum of $29,915,500 shall be
111divided into as many equal parts as there are counties in the
112state, and one part shall be distributed to each county. The
113distribution among the several counties shall begin each fiscal
114year on or before January 5th and shall continue monthly for a
115total of 4 months. If a local or special law required that any
116moneys accruing to a county in fiscal year 1999-2000 under the
117then-existing provisions of s. 550.135 be paid directly to the
118district school board, special district, or a municipal
119government, such payment shall continue until such time that the
120local or special law is amended or repealed. The state covenants
121with holders of bonds or other instruments of indebtedness
122issued by local governments, special districts, or district
123school boards prior to July 1, 2000, that it is not the intent
124of this subparagraph to adversely affect the rights of those
125holders or relieve local governments, special districts, or
126district school boards of the duty to meet their obligations as
127a result of previous pledges or assignments or trusts entered
128into which obligated funds received from the distribution to
129county governments under then-existing s. 550.135. This
130distribution specifically is in lieu of funds distributed under
131s. 550.135 prior to July 1, 2000.
132     b.  The department shall distribute $166,667 monthly
133pursuant to s. 288.1162 to each applicant that has been
134certified as a "facility for a new professional sports
135franchise" or a "facility for a retained professional sports
136franchise" pursuant to s. 288.1162. Up to $41,667 shall be
137distributed monthly by the department to each applicant that has
138been certified as a "facility for a retained spring training
139franchise" pursuant to s. 288.1162; however, not more than
140$208,335 may be distributed monthly in the aggregate to all
141certified facilities for a retained spring training franchise.
142Distributions shall begin 60 days following such certification
143and shall continue for not more than 30 years. Nothing contained
144in this paragraph shall be construed to allow an applicant
145certified pursuant to s. 288.1162 to receive more in
146distributions than actually expended by the applicant for the
147public purposes provided for in s. 288.1162(6). However, a
148certified applicant is entitled to receive distributions up to
149the maximum amount allowable and undistributed under this
150section for additional renovations and improvements to the
151facility for the franchise without additional certification.
152     c.  Beginning 30 days after notice by the Office of
153Tourism, Trade, and Economic Development to the Department of
154Revenue that an applicant has been certified as the professional
155golf hall of fame pursuant to s. 288.1168 and is open to the
156public, $166,667 shall be distributed monthly, for up to 300
157months, to the applicant.
158     d.  Beginning 30 days after notice by the Office of
159Tourism, Trade, and Economic Development to the Department of
160Revenue that the applicant has been certified as the
161International Game Fish Association World Center facility
162pursuant to s. 288.1169, and the facility is open to the public,
163$83,333 shall be distributed monthly, for up to 168 months, to
164the applicant. This distribution is subject to reduction
165pursuant to s. 288.1169. A lump sum payment of $999,996 shall be
166made, after certification and before July 1, 2000.
167     e.  Beginning 30 days after notice by the Office of
168Tourism, Trade, and Economic Development to the Department of
169Revenue that the applicant has been certified as a motorsports
170entertainment complex pursuant to s. 288.1170 and is open to the
171public, an amount not to exceed $166,667 shall be distributed
172monthly to the applicant. Distributions shall continue for 30
173years.  However, each fiscal year's total distribution made
174pursuant to this subparagraph shall not exceed the difference
175between the state sales taxes collected and remitted pursuant to
176this chapter by the facility in the previous calendar year and
177that collected and remitted in calendar year 2000.
178     8.  All other proceeds shall remain with the General
179Revenue Fund.
180     Section 2.  Section 288.1170, Florida Statutes, is created
181to read:
182     288.1170  Motorsports entertainment complex; definitions;
183certification; duties.--
184     (1)  As used in this section:
185     (a)  "Applicant" means the owner of a motorsports
186entertainment complex.
187     (b)  "Motorsports entertainment complex" means a closed-
188course racing facility, with ancillary grounds and facilities,
189which:
190     1.  Has not fewer than 67,000 permanent seats for race
191patrons.
192     2.  Has not fewer than 7 scheduled days of motorsports
193events each calendar year.
194     3.  Has paid admissions of more than 200,000 annually.
195     4.  Serves food at the facility during sanctioned
196motorsports races.
197     5.  Engages in tourism promotion.
198     (c)  "Motorsports event" means a motorsports race and its
199ancillary activities, which have been sanctioned by a
200sanctioning body.
201     (d)  "Office" means the Office of Tourism, Trade, and
202Economic Development of the Executive Office of the Governor.
203     (e)  "Owner" means a unit of local government that owns a
204motorsports entertainment complex or owns the land on which the
205motorsports entertainment complex is located.
206     (f)  "Sanctioning body" means the American Motorcycle
207Association (AMA), Championship Auto Racing Teams (CART), Grand
208American Road Racing Association(Grand Am), Indy Racing League
209(IRL), National Association for Stock Car Auto Racing (NASCAR),
210National Hot Rod Association (NHRA), Professional Sportscar
211Racing (PSR), Sports Car Club of America (SCCA), United States
212Auto Club (USAC), or any successor organization, or any other
213nationally recognized governing body of motorsports that
214establishes an annual schedule of motorsports events and grants
215rights to conduct such events, has established and administers
216rules and regulations governing all participants involved in
217such events and all persons conducting such events, and requires
218certain liability assurances, including insurance.
219     (g)  "Unit of local government" has the meaning ascribed in
220s. 218.369.
221     (2)  The Office of Tourism, Trade, and Economic Development
222shall serve as the state agency for screening applicants for
223state funding pursuant to s. 212.20 and for certifying an
224applicant as a motorsports entertainment complex.  The office
225shall develop and adopt rules for the receipt and processing of
226applications for funding pursuant to s. 212.20.  The office
227shall make a determination regarding any application filed by an
228applicant not later than 120 days after the application is
229filed.
230     (3)  Prior to certifying an applicant as a motorsports
231entertainment complex, the office must determine that:
232     (a)  A unit of local government holds title to the land on
233which the motorsports entertainment complex is located or holds
234title to the motorsports entertainment complex.
235     (b)  Seven scheduled days of motorsports events were held
236at the motorsports entertainment complex in the most recently
237completed calendar year or seven scheduled days of motorsports
238events are scheduled to be held at the motorsports entertainment
239complex in the calendar year which begins after the submission
240of the application.  The applicant shall submit certifications
241from the appropriate officials of the relevant sanctioning
242bodies that such sanctioned motorsports events were or will be
243held at the motorsports entertainment complex.
244     (c)  The applicant has an independent analysis or study,
245verified by the office, which demonstrates that the motorsports
246entertainment complex will attract, or in the most recently
247completed calendar year has attracted, paid attendance of more
248than 200,000 annually.
249     (d)  The applicant has an independent analysis or study,
250verified by the office, which demonstrates that the amount of
251the revenues generated by the taxes imposed under chapter 212
252with respect to the use and operation of the motorsports
253entertainment complex is consistent with the provisions of this
254act.
255     (e)  The municipality in which the motorsports
256entertainment complex is located, or the county if the
257motorsports entertainment complex is located in an
258unincorporated area, has certified by resolution after a public
259hearing that the application serves a public purpose.
260     (f)  The motorsports entertainment complex is located in a
261county as defined in s. 125.011(1).
262     (4)  Upon determining that an applicant meets the
263requirements of subsection (3), the office shall notify the
264applicant and the executive director of the Department of
265Revenue of such certification by means of an official letter
266granting certification.  If the applicant fails to meet the
267certification requirements of subsection (3), the office shall
268notify the applicant not later than 10 days following such
269determination.
270     (5)  The office must recertify each year that the
271motorsports entertainment complex continues to generate
272sufficient sales tax revenues annually as required pursuant to
273paragraph (3)(d).
274     (6)  No motorsports entertainment complex which has been
275previously certified under this section and has received funding
276under such certification shall be eligible for any additional
277certification.
278     (7)  An applicant certified as a motorsports entertainment
279complex may use funds provided pursuant to s. 212.20 only for
280the following public purposes:
281     (a)  Paying for the construction, reconstruction,
282expansion, or renovation of a motorsports entertainment complex.
283     (b)  Paying debt service reserve funds, arbitrage rebate
284obligations, or other amounts payable with respect to bonds
285issued for the construction, reconstruction, expansion, or
286renovation of the motorsports entertainment complex or for the
287reimbursement of such costs or the refinancing of bonds issued
288for such purposes.
289     (c)  Paying for construction, reconstruction, expansion, or
290renovation of transportation or other infrastructure
291improvements related to, necessary for, or appurtenant to the
292motorsports entertainment complex, including, without
293limitation, paying debt service reserve funds, arbitrage rebate
294obligations, or other amounts payable with respect to bonds
295issued for the construction, reconstruction, expansion, or
296renovation of such transportation or other infrastructure
297improvements, and for the reimbursement of such costs or the
298refinancing of bonds issued for such purposes.
299     (d)  Paying for programs of advertising and promotion of or
300related to the motorsports entertainment complex or the
301municipality in which the motorsports entertainment complex is
302located, or the county if the motorsports entertainment complex
303is located in an unincorporated area, provided such programs of
304advertising and promotion are designed to increase paid
305attendance at the motorsports entertainment complex or increase
306tourism in or promote the economic development of the community
307in which the motorsports entertainment complex is located.
308     (8)  The Department of Revenue may audit, as provided in s.
309213.34, to verify that the distributions pursuant to this
310section have been expended as required in this section.  Such
311information is subject to the confidentiality requirements of
312chapter 213.  If the Department of Revenue determines that the
313distributions pursuant to this section have not been expended as
314required by this section, it may pursue recovery of such funds
315pursuant to the laws and rules governing the assessment of
316taxes.
317     Section 3.  This act shall take effect July 1, 2004.


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