Senate Bill sb2412e1

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    CS for SB 2412                                 First Engrossed



  1                      A bill to be entitled

  2         An act relating to vehicles and vessels;

  3         amending s. 341.8203, F.S.; redefining the

  4         terms "authority" and "high-speed rail system";

  5         amending s. 341.840, F.S.; revising the tax

  6         exemption of the authority and its agents and

  7         contractors; providing for annual

  8         redetermination of eligibility for exemption;

  9         providing for recapture of taxes when an

10         exemption is used inappropriately; providing

11         for rules; amending s. 316.605, F.S.; revising

12         provisions for display of license plates;

13         creating s. 327.375, F.S.; providing

14         regulations for commercial parasailing;

15         defining "commercial parasailing"; providing

16         for regulation by the Fish and Wildlife

17         Conservation Commission; requiring licensing

18         and liability insurance; providing for rules

19         establishing minimum liability and maximum

20         deductible amounts; authorizing the commission

21         to adopt rules; providing commercial

22         parasailing operation requirements; providing

23         penalties; providing an effective date.

24  

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

26  

27         Section 1.  Subsections (2) and (6) of section

28  341.8203, Florida Statutes, are amended to read:

29         341.8203  Definitions.--As used in this act, unless the

30  context clearly indicates otherwise, the term:

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    CS for SB 2412                                 First Engrossed



 1         (2)  "Authority" means the Florida High-Speed Rail

 2  Authority and its agents. However, for purposes of s. 341.840,

 3  the term does not include any agent of the authority except as

 4  provided in that section.

 5         (6)  "High-speed rail system" means any high-speed

 6  fixed guideway system for transporting people or goods, which

 7  system is capable of operating at speeds in excess of 120

 8  miles per hour, including, but not limited to, a monorail

 9  system, dual track rail system, suspended rail system,

10  magnetic levitation system, pneumatic repulsion system, or

11  other system approved by the authority. The term includes a

12  corridor and structures essential to the operation of the

13  line, including the land, structures, improvements,

14  rights-of-way, easements, rail lines, rail beds, guideway

15  structures, stations, platforms, switches, yards, parking

16  facilities, power relays, switching houses, and rail stations,

17  associated development, and also includes any other facilities

18  or equipment used exclusively or useful for the purposes of

19  high-speed rail system design, construction, operation,

20  maintenance, or the financing of the high-speed rail system.

21         Section 2.  Section 341.840, Florida Statutes, is

22  amended to read:

23         341.840  Tax exemption.--

24         (1)  The exercise of the powers granted by this act

25  will be in all respects for the benefit of the people of this

26  state, for the increase of their commerce, welfare, and

27  prosperity, and for the improvement of their health and living

28  conditions., and as The design, construction building,

29  operation, maintenance, and financing of a high-speed rail

30  system by the authority, or its agent, or the owner or lessee

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    CS for SB 2412                                 First Engrossed



 1  thereof, as herein authorized, constitutes the performance of

 2  an essential public function.

 3         (2)(a)  For the purposes of this section, the term

 4  "authority" does not include agents of the authority other

 5  than contractors who qualify as such pursuant to subsection

 6  (7).

 7         (b)  For the purposes of this section, any item or

 8  property that is within the definition of "associated

 9  development" in s. 341.8203(1) shall not be considered to be

10  part of the high-speed rail system as defined in s.

11  341.8203(6).

12         (3)(a)  Purchases or leases of tangible personal

13  property or real property by the authority, excluding agents

14  of the authority, are exempt from taxes imposed by chapter 212

15  as provided in s. 212.08(6). Purchases or leases of tangible

16  personal property that is incorporated into the high-speed

17  rail system as a component part thereof, as determined by the

18  authority, by agents of the authority or the owner of the

19  high-speed rail system are exempt from sales or use taxes

20  imposed by chapter 212. Leases, rentals, or licenses to use

21  real property granted to agents of the authority or the owner

22  of the high-speed rail system are exempt from taxes imposed by

23  s. 212.031 if the real property becomes part of such system.

24  The exemptions granted in this subsection do not apply to

25  sales, leases, or licenses by the authority, agents of the

26  authority, or the owner of the high-speed rail system.

27         (b)  The exemption granted in paragraph (a) to

28  purchases or leases of tangible personal property by agents of

29  the authority or by the owner of the high-speed rail system

30  applies only to property that becomes a component part of such

31  system. It does not apply to items, including, but not limited


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    CS for SB 2412                                 First Engrossed



 1  to, cranes, bulldozers, forklifts, other machinery and

 2  equipment, tools and supplies, or other items of tangible

 3  personal property used in the construction, operation, or

 4  maintenance of the high-speed rail system when such items are

 5  not incorporated into the high-speed rail system as a

 6  component part thereof.

 7         (4)  Any bonds or other, neither the authority, its

 8  agent, nor the owner of such system shall be required to pay

 9  any taxes or assessments upon or in respect to the system or

10  any property acquired or used by the authority, its agent, or

11  such owner under the provisions of this act or upon the income

12  therefrom, any security, and all notes, mortgages, security

13  agreements, letters of credit, or other instruments that arise

14  out of or are given to secure the repayment of bonds or other

15  security, issued by the authority, or on behalf of the

16  authority therefor, their transfer, and the income therefrom,

17  including any profit made on the sale thereof, shall at all

18  times be free from taxation of every kind by the state, the

19  counties, and the municipalities and other political

20  subdivisions in the state. This subsection, however, does not

21  exempt from taxation or assessment the leasehold interest of a

22  lessee in any project or any other property or interest owned

23  by the lessee. The exemption granted by this subsection is not

24  applicable to any tax imposed by chapter 220 on interest

25  income or profits on the sale of debt obligations owned by

26  corporations.

27         (5)  When property of the authority is leased to

28  another person or entity, the property shall be exempt from ad

29  valorem taxation only if the use by the lessee qualifies the

30  property for exemption under s. 196.199.

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    CS for SB 2412                                 First Engrossed



 1         (6)  A leasehold interest held by the authority is not

 2  subject to intangible tax. However, if a leasehold interest

 3  held by the authority is subleased to a nongovernmental

 4  lessee, such subleasehold interest shall be deemed to be an

 5  interest described in s. 199.023(1)(d), and is subject to the

 6  intangible tax.

 7         (7)(a)  In order to be considered an agent of the

 8  authority for purposes of the exemption from sales and use tax

 9  granted by subsection (3) for tangible personal property

10  incorporated into the high-speed rail system, a contractor of

11  the authority that purchases or fabricates such tangible

12  personal property must be certified by the authority as

13  provided in this subsection.

14         (b)1.  A contractor must apply for a renewal of the

15  exemption not later than December 1 of each calendar year.

16         2.  A contractor must apply to the authority on the

17  application form adopted by the authority, which shall develop

18  the form in consultation with the Department of Revenue.

19         3.  The authority shall review each submitted

20  application and determine whether it is complete. The

21  authority shall notify the applicant of any deficiencies in

22  the application within 30 days. Upon receipt of a completed

23  application, the authority shall evaluate the application for

24  exemption under this subsection and issue a certification that

25  the contractor is qualified to act as an agent of the

26  authority for purposes of this section or a denial of such

27  certification within 30 days. The authority shall provide the

28  Department of Revenue with a copy of each certification issued

29  upon approval of an application. Upon receipt of a

30  certification from the authority, the Department of Revenue

31  shall issue an exemption permit to the contractor.


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    CS for SB 2412                                 First Engrossed



 1         (c)1.  The contractor may extend a copy of its

 2  exemption permit to its vendors in lieu of paying sales tax on

 3  purchases of tangible personal property qualifying for

 4  exemption under this section. Possession of a copy of the

 5  exemption permit relieves the seller of the responsibility of

 6  collecting tax on the sale, and the Department of Revenue

 7  shall look solely to the contractor for recovery of tax upon a

 8  determination that the contractor was not entitled to the

 9  exemption.

10         2.  The contractor may extend a copy of its exemption

11  permit to real property subcontractors supplying and

12  installing tangible personal property that is exempt under

13  subsection (3). Any such subcontractor is authorized to extend

14  a copy of the permit to the subcontractor's vendors in order

15  to purchase qualifying tangible personal property tax-exempt.

16  If the subcontractor uses the exemption permit to purchase

17  tangible personal property that is determined not to qualify

18  for exemption under subsection (3), the Department of Revenue

19  may assess and collect any tax, penalties, and interest that

20  are due from either the contractor holding the exemption

21  permit or the subcontractor that extended the exemption permit

22  to the seller.

23         (d)  Any contractor authorized to act as an agent of

24  the authority under this section shall maintain the necessary

25  books and records to document the exempt status of purchases

26  and fabrication costs made or incurred under the permit. In

27  addition, an authorized contractor extending its exemption

28  permit to its subcontractors shall maintain a copy of the

29  subcontractor's books, records, and invoices indicating all

30  purchases made by the subcontractor under the authorized

31  contractor's permit. If, in an audit conducted by the


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    CS for SB 2412                                 First Engrossed



 1  Department of Revenue, it is determined that tangible personal

 2  property purchased or fabricated claiming exemption under this

 3  section does not meet the criteria for exemption, the amount

 4  of taxes not paid at the time of purchase or fabrication shall

 5  be immediately due and payable to the Department of Revenue,

 6  together with the appropriate interest and penalty, computed

 7  from the date of purchase, in the manner prescribed by chapter

 8  212.

 9         (e)  If a contractor fails to apply for a high-speed

10  rail system exemption permit, or if a contractor initially

11  determined by the authority to not qualify for exemption is

12  subsequently determined to be eligible, the contractor shall

13  receive the benefit of the exemption in this subsection

14  through a refund of previously paid taxes for transactions

15  that otherwise would have been exempt. A refund may not be

16  made for such taxes without the issuance of a certification by

17  the authority that the contractor was authorized to make

18  purchases tax-exempt and a determination by the Department of

19  Revenue that the purchases qualified for the exemption.

20         (f)  The authority may adopt rules governing the

21  application process for exemption of a contractor as an

22  authorized agent of the authority.

23         (g)  The Department of Revenue may adopt rules

24  governing the issuance and form of high-speed rail system

25  exemption permits, the audit of contractors and subcontractors

26  using such permits, the recapture of taxes on nonqualified

27  purchases, and the manner and form of refund applications.

28         Section 3.  Subsection (1) of section 316.605, Florida

29  Statutes, is amended to read:

30         316.605  Licensing of vehicles.--

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    CS for SB 2412                                 First Engrossed



 1         (1)  Every vehicle, at all times while driven, stopped,

 2  or parked upon any highways, roads, or streets of this state,

 3  shall be licensed in the name of the owner thereof in

 4  accordance with the laws of this state unless such vehicle is

 5  not required by the laws of this state to be licensed in this

 6  state and shall, except as otherwise provided in s. 320.0706

 7  for front-end registration license plates on truck tractors,

 8  display the license plate or both of the license plates

 9  assigned to it by the state, one on the rear and, if two, the

10  other on the front of the vehicle, each to be securely

11  fastened to the vehicle outside the main body of the vehicle

12  in such manner as to prevent the plates from swinging, with

13  all letters, numerals, printing, writing, and other

14  identification marks upon the plates regarding the word

15  "Florida," the registration decal, and the alphanumeric

16  designation shall be clear and distinct and free from

17  defacement, mutilation, grease, and other obscuring matter, so

18  that they will be plainly visible and legible at all times 100

19  feet from the rear or front. Nothing shall be placed upon the

20  face of a Florida plate except as permitted by law or by rule

21  or regulation of a governmental agency.  No license plates

22  other than those furnished by the state shall be

23  used.  However, if the vehicle is not required to be licensed

24  in this state, the license plates on such vehicle issued by

25  another state, by a territory, possession, or district of the

26  United States, or by a foreign country, substantially

27  complying with the provisions hereof, shall be considered as

28  complying with this chapter. A violation of this subsection is

29  a noncriminal traffic infraction, punishable as a nonmoving

30  violation as provided in chapter 318.

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    CS for SB 2412                                 First Engrossed



 1         Section 4.  Section 327.375, Florida Statutes, is

 2  created to read:

 3         327.375  Commercial parasailing.--

 4         (1)  "Commercial parasailing" means any activity

 5  involving the towing of a person by a motorboat for

 6  consideration when:

 7         (a)  One or more persons are tethered to the towing

 8  vessel.

 9         (b)  The person or persons ascend above the water.

10         (c)  The person or persons remain suspended above the

11  water while the vessel is underway.

12         (2)  The commission shall regulate the use of

13  commercial parasailing by requiring, at a minimum, the

14  licensing of persons engaged in commercial parasailing and by

15  requiring minimum liability insurance necessary for commercial

16  parasailing. In order to recover the associated costs of

17  regulating commercial parasailing, the commission may impose

18  an annual licensing fee to be established by rule not to

19  exceed $100 and a $10 registration fee for each county in

20  which the commercial parasailing enterprise intends to provide

21  service. The commission may establish the requirements for

22  minimum liability insurance and maximum deductible amounts for

23  that insurance by rule. The commission has authority to adopt

24  rules pursuant to ss. 120.536(1) and 120.54 to implement the

25  provisions of this section.

26         (3)  Any person engaged in commercial parasailing

27  operations shall meet the following operation requirements:

28         (a)  Vessels engaged in commercial parasailing

29  operations must be designed and equipped for towing a person

30  while parasailing and must be equipped with a rear launch

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    CS for SB 2412                                 First Engrossed



 1  platform and powered winch used to release and retrieve the

 2  tow line.

 3         (b)  All commercial parasail operators are required to

 4  have a license for carrying passengers for hire issued by the

 5  United States Coast Guard.

 6         (c)  All commercial parasailing operations shall

 7  include an observer 18 years of age or older who is present in

 8  the vessel at all times to monitor the progress of any

 9  airborne parasail rider and parachute.

10         (d)  All commercial parasail riders shall wear a United

11  States Coast Guard approved type I, type II, or type III

12  personal flotation device of the proper size and must be

13  connected to the towline and secured in a seat harness

14  attached to an ascending type of parachute.

15         (e)  Commercial parasailing conducted in the Atlantic

16  Ocean and the Gulf of Mexico shall be restricted to not less

17  than three-eights nautical mile from the shore. This

18  restriction applies to the entire commercial parasailing

19  apparatus, including the vessel, towline, and rider.

20         (f)  Commercial parasailing operations shall not be

21  conducted within 600 feet of any:

22         1.  Anchored vessel;

23         2.  Person in the water;

24         3.  Shore or seawall; or

25         4.  Structure, bridge, powerline, wharf, pier, dock,

26  buoy, platform, piling, channel marker, or other similar

27  object.

28         (g)  Commercial parasailing shall not be permitted on

29  bodies of water less than 1,200 feet in width from shore to

30  shore.

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    CS for SB 2412                                 First Engrossed



 1         (h)  All commercial parasailing towing vessels shall be

 2  equipped with a functional VHF marine transceiver.

 3         (i)  Commercial parasailing shall be conducted only

 4  from one-half hour after sunrise to one-half hour before

 5  sunset and at no time during restricted visibility.

 6         (j)  Commercial parasailing is prohibited when there

 7  are sustained winds of 20 knots or seas 5 feet or higher in

 8  the area of operation.

 9         (k)  Towlines shall not exceed 800 feet in length.

10         (l)  Commercial parasail operators shall only launch

11  riders from the flight deck of the vessels.

12         (m)  No more than two persons shall be tethered to the

13  towing vessel and ascend above the water at any time.

14         (4)  A person who violates this section commits a

15  misdemeanor of the second degree, punishable as provided in s.

16  775.082 or s. 775.083.

17         Section 5.  Except as otherwise expressly provided in

18  this act, this act shall take effect October 1, 2004.

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