HB 0173CS

CHAMBER ACTION



1The Economic Development, Trade & Banking Committee recommends
2the following:
3
4     Council/Committee Substitute
5     Remove the entire bill and insert:
6
A bill to be entitled
7An act relating to economic development incentives;
8amending s. 212.20, F.S.; providing for distribution of a
9portion of revenues from the tax on sales, use, and other
10transactions to specified units of local government owning
11eligible convention centers; providing limitations;
12requiring the Department of Revenue to prescribe certain
13forms; specifying uses of certain distributions; providing
14for future repeal; creating s. 288.1171, F.S.; providing
15for certification of units of local government owning
16eligible convention centers by the Office of Tourism,
17Trade, and Economic Development; requiring the office to
18adopt specified rules; providing a definition; providing
19requirements for certification; providing for use of
20proceeds distributed to units of local government under
21the act; providing for audits by the Department of
22Revenue; providing for revocation of certification;
23providing for future repeal; providing an effective date.
24
25Be It Enacted by the Legislature of the State of Florida:
26
27     Section 1.  Paragraph (d) of subsection (6) of section
28212.20, Florida Statutes, is amended to read:
29     212.20  Funds collected, disposition; additional powers of
30department; operational expense; refund of taxes adjudicated
31unconstitutionally collected.--
32     (6)  Distribution of all proceeds under this chapter and s.
33202.18(1)(b) and (2)(b) shall be as follows:
34     (d)  The proceeds of all other taxes and fees imposed
35pursuant to this chapter or remitted pursuant to s. 202.18(1)(b)
36and (2)(b) shall be distributed as follows:
37     1.  In any fiscal year, the greater of $500 million, minus
38an amount equal to 4.6 percent of the proceeds of the taxes
39collected pursuant to chapter 201, or 5 percent of all other
40taxes and fees imposed pursuant to this chapter or remitted
41pursuant to s. 202.18(1)(b) and (2)(b) shall be deposited in
42monthly installments into the General Revenue Fund.
43     2.  Two-tenths of one percent shall be transferred to the
44Ecosystem Management and Restoration Trust Fund to be used for
45water quality improvement and water restoration projects.
46     3.  After the distribution under subparagraphs 1. and 2.,
478.814 percent of the amount remitted by a sales tax dealer
48located within a participating county pursuant to s. 218.61
49shall be transferred into the Local Government Half-cent Sales
50Tax Clearing Trust Fund. Beginning July 1, 2003, the amount to
51be transferred pursuant to this subparagraph to the Local
52Government Half-cent Sales Tax Clearing Trust Fund shall be
53reduced by 0.1 percent, and the department shall distribute this
54amount to the Public Employees Relations Commission Trust Fund
55less $5,000 each month, which shall be added to the amount
56calculated in subparagraph 4. and distributed accordingly.
57     4.  After the distribution under subparagraphs 1., 2., and
583., 0.095 percent shall be transferred to the Local Government
59Half-cent Sales Tax Clearing Trust Fund and distributed pursuant
60to s. 218.65.
61     5.  After the distributions under subparagraphs 1., 2., 3.,
62and 4., 2.0440 percent of the available proceeds pursuant to
63this paragraph shall be transferred monthly to the Revenue
64Sharing Trust Fund for Counties pursuant to s. 218.215.
65     6.  After the distributions under subparagraphs 1., 2., 3.,
66and 4., 1.3409 percent of the available proceeds pursuant to
67this paragraph shall be transferred monthly to the Revenue
68Sharing Trust Fund for Municipalities pursuant to s. 218.215. If
69the total revenue to be distributed pursuant to this
70subparagraph is at least as great as the amount due from the
71Revenue Sharing Trust Fund for Municipalities and the former
72Municipal Financial Assistance Trust Fund in state fiscal year
731999-2000, no municipality shall receive less than the amount
74due from the Revenue Sharing Trust Fund for Municipalities and
75the former Municipal Financial Assistance Trust Fund in state
76fiscal year 1999-2000. If the total proceeds to be distributed
77are less than the amount received in combination from the
78Revenue Sharing Trust Fund for Municipalities and the former
79Municipal Financial Assistance Trust Fund in state fiscal year
801999-2000, each municipality shall receive an amount
81proportionate to the amount it was due in state fiscal year
821999-2000.
83     7.  Of the remaining proceeds:
84     a.  In each fiscal year, the sum of $29,915,500 shall be
85divided into as many equal parts as there are counties in the
86state, and one part shall be distributed to each county. The
87distribution among the several counties shall begin each fiscal
88year on or before January 5th and shall continue monthly for a
89total of 4 months. If a local or special law required that any
90moneys accruing to a county in fiscal year 1999-2000 under the
91then-existing provisions of s. 550.135 be paid directly to the
92district school board, special district, or a municipal
93government, such payment shall continue until such time that the
94local or special law is amended or repealed. The state covenants
95with holders of bonds or other instruments of indebtedness
96issued by local governments, special districts, or district
97school boards prior to July 1, 2000, that it is not the intent
98of this subparagraph to adversely affect the rights of those
99holders or relieve local governments, special districts, or
100district school boards of the duty to meet their obligations as
101a result of previous pledges or assignments or trusts entered
102into which obligated funds received from the distribution to
103county governments under then-existing s. 550.135. This
104distribution specifically is in lieu of funds distributed under
105s. 550.135 prior to July 1, 2000.
106     b.  The department shall distribute $166,667 monthly
107pursuant to s. 288.1162 to each applicant that has been
108certified as a "facility for a new professional sports
109franchise" or a "facility for a retained professional sports
110franchise" pursuant to s. 288.1162. Up to $41,667 shall be
111distributed monthly by the department to each applicant that has
112been certified as a "facility for a retained spring training
113franchise" pursuant to s. 288.1162; however, not more than
114$208,335 may be distributed monthly in the aggregate to all
115certified facilities for a retained spring training franchise.
116Distributions shall begin 60 days following such certification
117and shall continue for not more than 30 years. Nothing contained
118in this paragraph shall be construed to allow an applicant
119certified pursuant to s. 288.1162 to receive more in
120distributions than actually expended by the applicant for the
121public purposes provided for in s. 288.1162(6). However, a
122certified applicant is entitled to receive distributions up to
123the maximum amount allowable and undistributed under this
124section for additional renovations and improvements to the
125facility for the franchise without additional certification.
126     c.  Beginning 30 days after notice by the Office of
127Tourism, Trade, and Economic Development to the Department of
128Revenue that an applicant has been certified as the professional
129golf hall of fame pursuant to s. 288.1168 and is open to the
130public, $166,667 shall be distributed monthly, for up to 300
131months, to the applicant.
132     d.  Beginning 30 days after notice by the Office of
133Tourism, Trade, and Economic Development to the Department of
134Revenue that the applicant has been certified as the
135International Game Fish Association World Center facility
136pursuant to s. 288.1169, and the facility is open to the public,
137$83,333 shall be distributed monthly, for up to 168 months, to
138the applicant. This distribution is subject to reduction
139pursuant to s. 288.1169. A lump sum payment of $999,996 shall be
140made, after certification and before July 1, 2000.
141     e.  The department shall distribute monthly to units of
142local government that have been certified as owning eligible
143convention centers pursuant to s. 288.1171 an amount equal to 50
144percent of the proceeds, as defined in paragraph (5)(a),
145received and collected in the previous month by the department
146under the provisions of this chapter which are generated by such
147eligible convention centers and remitted on the sales and use
148tax returns of eligible convention centers. Proceeds, for this
149sub-subparagraph, are limited to all applicable sales taxes
150collected by an eligible convention center for standard services
151provided by center staff to users of the center, which include
152the following: parking, admission, and ticket sales, food
153services, utilities services, space rentals, equipment rentals,
154security services, decorating services, business services,
155advertising services, communications services, exhibit supply
156sales and rentals, locksmith services, and sales of gifts and
157sundries. The total distribution to each unit of local
158government shall not exceed $1 million per state fiscal year.
159However, total distributions to all units of local government
160shall not exceed $5 million per state fiscal year, and such
161distribution shall be limited exclusively to the taxes collected
162and remitted under the provisions of this chapter. If
163collections and remittances of eligible convention centers
164exceed the $5 million maximum amount authorized for
165distribution, the department shall distribute proceeds to each
166eligible unit of local government using an apportionment factor,
167the numerator of which is the amount remitted by an eligible
168convention center and the denominator is the total amount
169remitted by all eligible convention centers. The apportionment
170factor for each eligible convention center shall be applied to
171the $5 million maximum amount authorized for distribution to
172determine the amount that shall be distributed to each local
173government unit. The department shall prescribe forms required
174to be filed with the department by eligible convention centers.
175Distributions shall begin 60 days following notification of
176certification by the Office of Tourism, Trade, and Economic
177Development pursuant to s. 288.1171. Distributions shall be used
178solely to encourage and provide economic development for the
179attraction, recruitment, and retention of corporate headquarters
180and of high-technology, manufacturing, research and development,
181entertainment, and tourism industries as designated by the unit
182of local government by resolution of its governing body, and to
183assist the eligible convention centers to attract more business
184and expand their offerings, including developing their own
185events and shows. This sub-subparagraph is repealed effective
186June 30, 2008.
187     8.  All other proceeds shall remain with the General
188Revenue Fund.
189     Section 2.  Section 288.1171, Florida Statutes, is created
190to read:
191     288.1171  Convention centers owned by units of local
192government; certification as owning eligible convention centers;
193duties.--
194     (1)  The Office of Tourism, Trade, and Economic Development
195shall serve as the state agency for screening applicants for
196state funding pursuant to s. 212.20(6)(d)7.e. and for certifying
197an applicant as owning an eligible convention center.
198     (2)  The Office of Tourism, Trade, and Economic Development
199shall adopt rules pursuant to ss. 120.536(1) and 120.54 for the
200receipt and processing of applications for funding pursuant to
201s. 212.20(6)(d)7.e.
202     (3)  As used in this section, the term "eligible convention
203center" means a publicly owned facility having exhibition space
204in excess of 60,000 square feet, the primary function of which
205is to host meetings, conventions, or trade shows.
206     (4)  Prior to certifying an applicant as owning an eligible
207convention center, the Office of Tourism, Trade, and Economic
208Development must determine that:
209     (a)  The unit of local government, as defined in s.
210218.369, owns an eligible convention center.
211     (b)  The convention center contains more than 60,000 square
212feet of exhibit space.
213     (c)  The unit of local government in which the convention
214center is located has certified by resolution after a public
215hearing that the application serves a public purpose pursuant to
216subsection (7).
217     (d)  The convention center is located in a county that is
218levying a tourist development tax pursuant to s. 125.0104.
219     (5)  Upon certification of an applicant, the Office of
220Tourism, Trade, and Economic Development shall notify the
221executive director of the Department of Revenue of such
222certification by means of an official letter granting
223certification. The Department of Revenue shall not begin
224distributing proceeds until 60 days following notice by the
225Office of Tourism, Trade, and Economic Development that a unit
226of local government has been certified as owning an eligible
227convention center.
228     (6)  No applicant previously certified under any provision
229of this section who has received proceeds under such
230certification shall be eligible for an additional certification.
231     (7)  A unit of local government certified as owning an
232eligible convention center may use proceeds provided pursuant to
233s. 212.20(6)(d)7.e. solely to encourage and provide economic
234development for the attraction, recruitment, and retention of
235corporate headquarters and of high-technology, manufacturing,
236research and development, entertainment, and tourism industries
237as designated by the unit of local government by resolution of
238its governing body, and to assist the eligible convention
239centers to attract more business and expand their offerings,
240including developing their own events and shows.
241     (8)  The Department of Revenue may audit as provided in s.
242213.34 to verify that the distributions pursuant to this section
243have been expended as required in this section. Such information
244is subject to the confidentiality requirements of chapter 213.
245If the Department of Revenue determines that the distributions
246have not been expended as required by this section, it may
247pursue recovery of such proceeds pursuant to the laws and rules
248governing the assessment of taxes.
249     (9)  Failure to use the proceeds as provided in this
250section shall be grounds for revoking certification.
251     (10)  This section is repealed June 30, 2008.
252     Section 3.  This act shall take effect July 1, 2005.


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