HB 0173CS

CHAMBER ACTION



1The Local Government Council recommends the following:
2
3     Council/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; specifying uses of certain distributions; providing
13for future repeal; creating s. 288.1171, F.S.; providing
14for certification of units of local government owning
15eligible convention centers by the Office of Tourism,
16Trade, and Economic Development; requiring the office to
17adopt specified rules; providing a definition; providing
18requirements for certification; providing for use of
19proceeds distributed to units of local government under
20the act; providing for audits by the Department of
21Revenue; providing for revocation of certification;
22providing for future repeal; providing an effective date.
23
24Be It Enacted by the Legislature of the State of Florida:
25
26     Section 1.  Paragraph (d) of subsection (6) of section
27212.20, Florida Statutes, 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 former
71Municipal Financial Assistance Trust Fund in state fiscal year
721999-2000, no municipality shall receive less than the amount
73due from the Revenue Sharing Trust Fund for Municipalities and
74the former Municipal Financial Assistance Trust Fund in state
75fiscal year 1999-2000. If the total proceeds to be distributed
76are less than the amount received in combination from the
77Revenue Sharing Trust Fund for Municipalities and the former
78Municipal Financial Assistance Trust Fund in state fiscal year
791999-2000, each municipality shall receive an amount
80proportionate to the amount it was due in state fiscal year
811999-2000.
82     7.  Of the remaining proceeds:
83     a.  In each fiscal year, the sum of $29,915,500 shall be
84divided into as many equal parts as there are counties in the
85state, and one part shall be distributed to each county. The
86distribution among the several counties shall begin each fiscal
87year on or before January 5th and shall continue monthly for a
88total of 4 months. If a local or special law required that any
89moneys accruing to a county in fiscal year 1999-2000 under the
90then-existing provisions of s. 550.135 be paid directly to the
91district school board, special district, or a municipal
92government, such payment shall continue until such time that the
93local or special law is amended or repealed. The state covenants
94with holders of bonds or other instruments of indebtedness
95issued by local governments, special districts, or district
96school boards prior to July 1, 2000, that it is not the intent
97of this subparagraph to adversely affect the rights of those
98holders or relieve local governments, special districts, or
99district school boards of the duty to meet their obligations as
100a result of previous pledges or assignments or trusts entered
101into which obligated funds received from the distribution to
102county governments under then-existing s. 550.135. This
103distribution specifically is in lieu of funds distributed under
104s. 550.135 prior to July 1, 2000.
105     b.  The department shall distribute $166,667 monthly
106pursuant to s. 288.1162 to each applicant that has been
107certified as a "facility for a new professional sports
108franchise" or a "facility for a retained professional sports
109franchise" pursuant to s. 288.1162. Up to $41,667 shall be
110distributed monthly by the department to each applicant that has
111been certified as a "facility for a retained spring training
112franchise" pursuant to s. 288.1162; however, not more than
113$208,335 may be distributed monthly in the aggregate to all
114certified facilities for a retained spring training franchise.
115Distributions shall begin 60 days following such certification
116and shall continue for not more than 30 years. Nothing contained
117in this paragraph shall be construed to allow an applicant
118certified pursuant to s. 288.1162 to receive more in
119distributions than actually expended by the applicant for the
120public purposes provided for in s. 288.1162(6). However, a
121certified applicant is entitled to receive distributions up to
122the maximum amount allowable and undistributed under this
123section for additional renovations and improvements to the
124facility for the franchise without additional certification.
125     c.  Beginning 30 days after notice by the Office of
126Tourism, Trade, and Economic Development to the Department of
127Revenue that an applicant has been certified as the professional
128golf hall of fame pursuant to s. 288.1168 and is open to the
129public, $166,667 shall be distributed monthly, for up to 300
130months, to the applicant.
131     d.  Beginning 30 days after notice by the Office of
132Tourism, Trade, and Economic Development to the Department of
133Revenue that the applicant has been certified as the
134International Game Fish Association World Center facility
135pursuant to s. 288.1169, and the facility is open to the public,
136$83,333 shall be distributed monthly, for up to 168 months, to
137the applicant. This distribution is subject to reduction
138pursuant to s. 288.1169. A lump sum payment of $999,996 shall be
139made, after certification and before July 1, 2000.
140     e.  The department shall distribute monthly to units of
141local government that have been certified as owning eligible
142convention centers pursuant to s. 288.1171 an amount equal to 50
143percent of the proceeds, as defined in paragraph (5)(a),
144received and collected in the previous month by the department
145under the provisions of this chapter which are generated by such
146eligible convention centers and remitted on the sales and use
147tax returns of eligible convention centers. Proceeds, for this
148sub-subparagraph, are limited to all applicable sales taxes
149collected by an eligible convention center for standard services
150provided by center staff to users of the center, which include
151the following: parking, admission, and ticket sales, food
152services, utilities services, space rentals, equipment rentals,
153security services, decorating services, business services,
154advertising services, communications services, exhibit supply
155sales and rentals, locksmith services, and sales of gifts and
156sundries. The total distribution to each unit of local
157government shall not exceed $1 million per state fiscal year.
158However, total distributions to all units of local government
159shall not exceed $5 million per state fiscal year, and such
160distribution shall be limited exclusively to the taxes collected
161and remitted under the provisions of this chapter. If
162collections and remittances of eligible convention centers
163exceed the $5 million maximum amount authorized for
164distribution, the department shall distribute proceeds to each
165eligible unit of local government using an apportionment factor,
166the numerator of which is the amount remitted by an eligible
167convention center and the denominator is the total amount
168remitted by all eligible convention centers. The apportionment
169factor for each eligible convention center shall be applied to
170the $5 million maximum amount authorized for distribution to
171determine the amount that shall be distributed to each local
172government unit. The department shall prescribe forms required
173to be filed with the department by eligible convention centers.
174Distributions shall begin 60 days following notification of
175certification by the Office of Tourism, Trade, and Economic
176Development pursuant to s. 288.1171. Distributions shall be used
177solely to encourage and provide economic development for the
178attraction, recruitment, and retention of corporate headquarters
179and of high-technology, manufacturing, research and development,
180entertainment, and tourism industries as designated by the unit
181of local government by resolution of its governing body, and to
182assist the eligible convention centers to attract more business
183and expand their offerings, including developing their own
184events and shows. This sub-subparagraph is repealed effective
185June 30, 2008.
186     8.  All other proceeds shall remain with the General
187Revenue Fund.
188     Section 2.  Section 288.1171, Florida Statutes, is created
189to read:
190     288.1171  Convention centers owned by units of local
191government; certification as owning eligible convention centers;
192duties.--
193     (1)  The Office of Tourism, Trade, and Economic Development
194shall serve as the state agency for screening applicants for
195state funding pursuant to s. 212.20(6)(d)7.e. and for certifying
196an applicant as owning an eligible convention center.
197     (2)  The Office of Tourism, Trade, and Economic Development
198shall adopt rules pursuant to ss. 120.536(1) and 120.54 for the
199receipt and processing of applications for funding pursuant to
200s. 212.20(6)(d)7.e.
201     (3)  As used in this section, the term "eligible convention
202center" means a publicly owned facility having exhibition space
203in excess of 60,000 square feet, the primary function of which
204is to host meetings, conventions, or trade shows.
205     (4)  Prior to certifying an applicant as owning an eligible
206convention center, the Office of Tourism, Trade, and Economic
207Development must determine that:
208     (a)  The unit of local government, as defined in s.
209218.369, owns an eligible convention center.
210     (b)  The convention center contains more than 60,000 square
211feet of exhibit space.
212     (c)  The unit of local government in which the convention
213center is located has certified by resolution after a public
214hearing that the application serves a public purpose pursuant to
215subsection (7).
216     (d)  The convention center is located in a county that is
217levying a tourist development tax pursuant to s. 125.0104.
218     (5)  Upon certification of an applicant, the Office of
219Tourism, Trade, and Economic Development shall notify the
220executive director of the Department of Revenue of such
221certification by means of an official letter granting
222certification. The Department of Revenue shall not begin
223distributing proceeds until 60 days following notice by the
224Office of Tourism, Trade, and Economic Development that a unit
225of local government has been certified as owning an eligible
226convention center.
227     (6)  No applicant previously certified under any provision
228of this section who has received proceeds under such
229certification shall be eligible for an additional certification.
230     (7)  A unit of local government certified as owning an
231eligible convention center may use proceeds provided pursuant to
232s. 212.20(6)(d)7.e. solely to encourage and provide economic
233development for the attraction, recruitment, and retention of
234corporate headquarters and of high-technology, manufacturing,
235research and development, entertainment, and tourism industries
236as designated by the unit of local government by resolution of
237its governing body, and to assist the eligible convention
238centers to attract more business and expand their offerings,
239including developing their own events and shows.
240     (8)  The Department of Revenue may audit as provided in s.
241213.34 to verify that the distributions pursuant to this section
242have been expended as required in this section. If the
243Department of Revenue determines that the distributions have not
244been expended as required by this section, it may pursue
245recovery of such proceeds pursuant to the laws and rules
246governing the assessment of taxes.
247     (9)  Failure to use the proceeds as provided in this
248section shall be grounds for revoking certification.
249     (10)  This section is repealed June 30, 2008.
250     Section 3.  This act shall take effect July 1, 2005.


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