HB 0061CS

CHAMBER ACTION



1The Committee on Finance & Tax recommends the following:
2
3     Committee Substitute
4     Remove the entire bill and insert:
5
A bill to be entitled
6An act relating to economic development incentives;
7amending s. 212.20, F.S.; providing for distribution of a
8portion of revenues from the tax on sales, use, and other
9transactions to specified units of local government owning
10eligible convention centers; providing limitations;
11requiring the Department of Revenue to prescribe certain
12forms; creating s. 288.1171, F.S.; providing for
13certification of units of local government owning eligible
14convention centers by the Office of Tourism, Trade, and
15Economic Development; requiring the office to adopt
16specified rules; providing a definition; providing
17requirements for certification; providing for use of
18proceeds distributed to units of local government under
19the act; providing for audits by the Department of
20Revenue; providing for revocation of certification;
21providing an effective date.
22
23Be It Enacted by the Legislature of the State of Florida:
24
25     Section 1.  Paragraph (d) of subsection (6) of section
26212.20, Florida Statutes, as amended by section 92 of chapter
272003-402, Laws of Florida, is amended to read:
28     212.20  Funds collected, disposition; additional powers of
29department; operational expense; refund of taxes adjudicated
30unconstitutionally collected.--
31     (6)  Distribution of all proceeds under this chapter and s.
32202.18(1)(b) and (2)(b) shall be as follows:
33     (d)  The proceeds of all other taxes and fees imposed
34pursuant to this chapter or remitted pursuant to s. 202.18(1)(b)
35and (2)(b) shall be distributed as follows:
36     1.  In any fiscal year, the greater of $500 million, minus
37an amount equal to 4.6 percent of the proceeds of the taxes
38collected pursuant to chapter 201, or 5 percent of all other
39taxes and fees imposed pursuant to this chapter or remitted
40pursuant to s. 202.18(1)(b) and (2)(b) shall be deposited in
41monthly installments into the General Revenue Fund.
42     2.  Two-tenths of one percent shall be transferred to the
43Ecosystem Management and Restoration Trust Fund to be used for
44water quality improvement and water restoration projects.
45     3.  After the distribution under subparagraphs 1. and 2.,
468.814 percent of the amount remitted by a sales tax dealer
47located within a participating county pursuant to s. 218.61
48shall be transferred into the Local Government Half-cent Sales
49Tax Clearing Trust Fund. Beginning July 1, 2003, the amount to
50be transferred pursuant to this subparagraph to the Local
51Government Half-cent Sales Tax Clearing Trust Fund shall be
52reduced by 0.1 percent, and the department shall distribute this
53amount to the Public Employees Relations Commission Trust Fund
54less $5,000 each month, which shall be added to the amount
55calculated in subparagraph 4. and distributed accordingly.
56     4.  After the distribution under subparagraphs 1., 2., and
573., 0.095 percent shall be transferred to the Local Government
58Half-cent Sales Tax Clearing Trust Fund and distributed pursuant
59to s. 218.65.
60     5.  After the distributions under subparagraphs 1., 2., 3.,
61and 4., 2.0440 percent of the available proceeds pursuant to
62this paragraph shall be transferred monthly to the Revenue
63Sharing Trust Fund for Counties pursuant to s. 218.215.
64     6.  After the distributions under subparagraphs 1., 2., 3.,
65and 4., 1.3409 percent of the available proceeds pursuant to
66this paragraph shall be transferred monthly to the Revenue
67Sharing Trust Fund for Municipalities pursuant to s. 218.215. If
68the total revenue to be distributed pursuant to this
69subparagraph is at least as great as the amount due from the
70Revenue Sharing Trust Fund for Municipalities and the Municipal
71Financial Assistance Trust Fund in state fiscal year 1999-2000,
72no municipality shall receive less than the amount due from the
73Revenue Sharing Trust Fund for Municipalities and the Municipal
74Financial Assistance Trust Fund in state fiscal year 1999-2000.
75If the total proceeds to be distributed are less than the amount
76received in combination from the Revenue Sharing Trust Fund for
77Municipalities and the Municipal Financial Assistance Trust Fund
78in state fiscal year 1999-2000, each municipality shall receive
79an amount proportionate to the amount it was due in state fiscal
80year 1999-2000.
81     7.  Of the remaining proceeds:
82     a.  In each fiscal year, the sum of $29,915,500 shall be
83divided into as many equal parts as there are counties in the
84state, and one part shall be distributed to each county. The
85distribution among the several counties shall begin each fiscal
86year on or before January 5th and shall continue monthly for a
87total of 4 months. If a local or special law required that any
88moneys accruing to a county in fiscal year 1999-2000 under the
89then-existing provisions of s. 550.135 be paid directly to the
90district school board, special district, or a municipal
91government, such payment shall continue until such time that the
92local or special law is amended or repealed. The state covenants
93with holders of bonds or other instruments of indebtedness
94issued by local governments, special districts, or district
95school boards prior to July 1, 2000, that it is not the intent
96of this subparagraph to adversely affect the rights of those
97holders or relieve local governments, special districts, or
98district school boards of the duty to meet their obligations as
99a result of previous pledges or assignments or trusts entered
100into which obligated funds received from the distribution to
101county governments under then-existing s. 550.135. This
102distribution specifically is in lieu of funds distributed under
103s. 550.135 prior to July 1, 2000.
104     b.  The department shall distribute $166,667 monthly
105pursuant to s. 288.1162 to each applicant that has been
106certified as a "facility for a new professional sports
107franchise" or a "facility for a retained professional sports
108franchise" pursuant to s. 288.1162. Up to $41,667 shall be
109distributed monthly by the department to each applicant that has
110been certified as a "facility for a retained spring training
111franchise" pursuant to s. 288.1162; however, not more than
112$208,335 may be distributed monthly in the aggregate to all
113certified facilities for a retained spring training franchise.
114Distributions shall begin 60 days following such certification
115and shall continue for not more than 30 years. Nothing contained
116in this paragraph shall be construed to allow an applicant
117certified pursuant to s. 288.1162 to receive more in
118distributions than actually expended by the applicant for the
119public purposes provided for in s. 288.1162(6). However, a
120certified applicant is entitled to receive distributions up to
121the maximum amount allowable and undistributed under this
122section for additional renovations and improvements to the
123facility for the franchise without additional certification.
124     c.  Beginning 30 days after notice by the Office of
125Tourism, Trade, and Economic Development to the Department of
126Revenue that an applicant has been certified as the professional
127golf hall of fame pursuant to s. 288.1168 and is open to the
128public, $166,667 shall be distributed monthly, for up to 300
129months, to the applicant.
130     d.  Beginning 30 days after notice by the Office of
131Tourism, Trade, and Economic Development to the Department of
132Revenue that the applicant has been certified as the
133International Game Fish Association World Center facility
134pursuant to s. 288.1169, and the facility is open to the public,
135$83,333 shall be distributed monthly, for up to 168 months, to
136the applicant. This distribution is subject to reduction
137pursuant to s. 288.1169. A lump sum payment of $999,996 shall be
138made, after certification and before July 1, 2000.
139     e.  The department shall distribute monthly to units of
140local government that have been certified as owning eligible
141convention centers pursuant to s. 288.1171 an amount equal to 50
142percent of the proceeds, as defined in paragraph (5)(a),
143received and collected in the previous month by the department
144under the provisions of this chapter which are generated by such
145eligible convention centers and remitted on the sales and use
146tax returns of eligible convention centers. Proceeds, for this
147sub-subparagraph, are further defined as all applicable sales
148taxes collected by an eligible convention center for standard
149services provided by center staff to users of the center, which
150include the following: parking, admission, ticket sales, food
151services, electrical or like services, space rentals, equipment
152rentals, and security services. The total distribution to each
153unit of local government shall not exceed $2 million per state
154fiscal year. However, total distributions to all units of local
155government shall not exceed $10 million per state fiscal year,
156and such distribution shall be limited exclusively to the taxes
157collected and remitted under the provisions of this chapter. The
158department shall prescribe forms required to be filed with the
159department by eligible convention centers. Distributions shall
160begin 60 days following notification of certification by the
161Office of Tourism, Trade, and Economic Development pursuant to
162s. 288.1171 and shall continue for not more than 30 years.
163Distributions shall be used solely to encourage and provide
164economic development for the attraction, recruitment, and
165retention of corporate headquarters and of high-technology,
166manufacturing, research and development, entertainment, and
167tourism industries as designated by the unit of local government
168by resolution of its governing body, and to assist the eligible
169convention centers to attract more business and expand their
170offerings, including developing their own events and shows.
171     8.  All other proceeds shall remain with the General
172Revenue Fund.
173     Section 2.  Section 288.1171, Florida Statutes, is created
174to read:
175     288.1171  Convention centers owned by units of local
176government; certification as owning eligible convention centers;
177duties.--
178     (1)  The Office of Tourism, Trade, and Economic Development
179shall serve as the state agency for screening applicants for
180state funding pursuant to s. 212.20(6)(d)7.e. and for certifying
181an applicant as owning an eligible convention center.
182     (2)  The Office of Tourism, Trade, and Economic Development
183shall adopt rules pursuant to ss. 120.536(1) and 120.54 for the
184receipt and processing of applications for funding pursuant to
185s. 212.20(6)(d)7.e.
186     (3)  As used in this section, the term "eligible convention
187center" means a publicly owned facility having exhibition space
188in excess of 60,000 square feet, the primary function of which
189is to host meetings, conventions, or trade shows.
190     (4)  Prior to certifying an applicant as owning an eligible
191convention center, the Office of Tourism, Trade, and Economic
192Development must determine that:
193     (a)  The unit of local government, as defined in s.
194218.369, owns an eligible convention center.
195     (b)  The convention center contains more than 60,000 square
196feet of exhibit space.
197     (c)  The unit of local government in which the convention
198center is located has certified by resolution after a public
199hearing that the application serves a public purpose pursuant to
200subsection (7).
201     (d)  The convention center is located in a county that is
202levying a tourist development tax pursuant to s. 125.0104.
203     (5)  Upon certification of an applicant, the Office of
204Tourism, Trade, and Economic Development shall notify the
205executive director of the Department of Revenue of such
206certification by means of an official letter granting
207certification. The Department of Revenue shall not begin
208distributing proceeds until 60 days following notice by the
209Office of Tourism, Trade, and Economic Development that a unit
210of local government has been certified as owning an eligible
211convention center.
212     (6)  No applicant previously certified under any provision
213of this section who has received proceeds under such
214certification shall be eligible for an additional certification.
215     (7)  A unit of local government certified as owning an
216eligible convention center may use proceeds provided pursuant to
217s. 212.20(6)(d)7.e. solely to encourage and provide economic
218development for the attraction, recruitment, and retention of
219corporate headquarters and of high-technology, manufacturing,
220research and development, entertainment, and tourism industries
221as designated by the unit of local government by resolution of
222its governing body.
223     (8)  The Department of Revenue may audit as provided in s.
224213.34 to verify that the distributions pursuant to this section
225have been expended as required in this section. Such information
226is subject to the confidentiality requirements of chapter 213.
227If the Department of Revenue determines that the distributions
228have not been expended as required by this section, it may
229pursue recovery of such proceeds pursuant to the laws and rules
230governing the assessment of taxes.
231     (9)  Failure to use the proceeds as provided in this
232section shall be grounds for revoking certification.
233     Section 3.  This act shall take effect July 1, 2004.


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