HB 0173CS

CHAMBER ACTION



1The Transportation & Economic Development Appropriations
2Committee recommends the 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 Auditor General;
22authorizing the Auditor General to pursue recovery of
23certain proceeds; barring certain local governments from
24receiving future distributions under certain
25circumstances; providing for revocation of certification;
26providing for future repeal; providing an effective date.
27
28Be It Enacted by the Legislature of the State of Florida:
29
30     Section 1.  Paragraph (d) of subsection (6) of section
31212.20, Florida Statutes, is amended to read:
32     212.20  Funds collected, disposition; additional powers of
33department; operational expense; refund of taxes adjudicated
34unconstitutionally collected.--
35     (6)  Distribution of all proceeds under this chapter and s.
36202.18(1)(b) and (2)(b) shall be as follows:
37     (d)  The proceeds of all other taxes and fees imposed
38pursuant to this chapter or remitted pursuant to s. 202.18(1)(b)
39and (2)(b) shall be distributed as follows:
40     1.  In any fiscal year, the greater of $500 million, minus
41an amount equal to 4.6 percent of the proceeds of the taxes
42collected pursuant to chapter 201, or 5 percent of all other
43taxes and fees imposed pursuant to this chapter or remitted
44pursuant to s. 202.18(1)(b) and (2)(b) shall be deposited in
45monthly installments into the General Revenue Fund.
46     2.  Two-tenths of one percent shall be transferred to the
47Ecosystem Management and Restoration Trust Fund to be used for
48water quality improvement and water restoration projects.
49     3.  After the distribution under subparagraphs 1. and 2.,
508.814 percent of the amount remitted by a sales tax dealer
51located within a participating county pursuant to s. 218.61
52shall be transferred into the Local Government Half-cent Sales
53Tax Clearing Trust Fund. Beginning July 1, 2003, the amount to
54be transferred pursuant to this subparagraph to the Local
55Government Half-cent Sales Tax Clearing Trust Fund shall be
56reduced by 0.1 percent, and the department shall distribute this
57amount to the Public Employees Relations Commission Trust Fund
58less $5,000 each month, which shall be added to the amount
59calculated in subparagraph 4. and distributed accordingly.
60     4.  After the distribution under subparagraphs 1., 2., and
613., 0.095 percent shall be transferred to the Local Government
62Half-cent Sales Tax Clearing Trust Fund and distributed pursuant
63to s. 218.65.
64     5.  After the distributions under subparagraphs 1., 2., 3.,
65and 4., 2.0440 percent of the available proceeds pursuant to
66this paragraph shall be transferred monthly to the Revenue
67Sharing Trust Fund for Counties pursuant to s. 218.215.
68     6.  After the distributions under subparagraphs 1., 2., 3.,
69and 4., 1.3409 percent of the available proceeds pursuant to
70this paragraph shall be transferred monthly to the Revenue
71Sharing Trust Fund for Municipalities pursuant to s. 218.215. If
72the total revenue to be distributed pursuant to this
73subparagraph is at least as great as the amount due from the
74Revenue Sharing Trust Fund for Municipalities and the former
75Municipal Financial Assistance Trust Fund in state fiscal year
761999-2000, no municipality shall receive less than the amount
77due from the Revenue Sharing Trust Fund for Municipalities and
78the former Municipal Financial Assistance Trust Fund in state
79fiscal year 1999-2000. If the total proceeds to be distributed
80are less than the amount received in combination from the
81Revenue Sharing Trust Fund for Municipalities and the former
82Municipal Financial Assistance Trust Fund in state fiscal year
831999-2000, each municipality shall receive an amount
84proportionate to the amount it was due in state fiscal year
851999-2000.
86     7.  Of the remaining proceeds:
87     a.  In each fiscal year, the sum of $29,915,500 shall be
88divided into as many equal parts as there are counties in the
89state, and one part shall be distributed to each county. The
90distribution among the several counties shall begin each fiscal
91year on or before January 5th and shall continue monthly for a
92total of 4 months. If a local or special law required that any
93moneys accruing to a county in fiscal year 1999-2000 under the
94then-existing provisions of s. 550.135 be paid directly to the
95district school board, special district, or a municipal
96government, such payment shall continue until such time that the
97local or special law is amended or repealed. The state covenants
98with holders of bonds or other instruments of indebtedness
99issued by local governments, special districts, or district
100school boards prior to July 1, 2000, that it is not the intent
101of this subparagraph to adversely affect the rights of those
102holders or relieve local governments, special districts, or
103district school boards of the duty to meet their obligations as
104a result of previous pledges or assignments or trusts entered
105into which obligated funds received from the distribution to
106county governments under then-existing s. 550.135. This
107distribution specifically is in lieu of funds distributed under
108s. 550.135 prior to July 1, 2000.
109     b.  The department shall distribute $166,667 monthly
110pursuant to s. 288.1162 to each applicant that has been
111certified as a "facility for a new professional sports
112franchise" or a "facility for a retained professional sports
113franchise" pursuant to s. 288.1162. Up to $41,667 shall be
114distributed monthly by the department to each applicant that has
115been certified as a "facility for a retained spring training
116franchise" pursuant to s. 288.1162; however, not more than
117$208,335 may be distributed monthly in the aggregate to all
118certified facilities for a retained spring training franchise.
119Distributions shall begin 60 days following such certification
120and shall continue for not more than 30 years. Nothing contained
121in this paragraph shall be construed to allow an applicant
122certified pursuant to s. 288.1162 to receive more in
123distributions than actually expended by the applicant for the
124public purposes provided for in s. 288.1162(6). However, a
125certified applicant is entitled to receive distributions up to
126the maximum amount allowable and undistributed under this
127section for additional renovations and improvements to the
128facility for the franchise without additional certification.
129     c.  Beginning 30 days after notice by the Office of
130Tourism, Trade, and Economic Development to the Department of
131Revenue that an applicant has been certified as the professional
132golf hall of fame pursuant to s. 288.1168 and is open to the
133public, $166,667 shall be distributed monthly, for up to 300
134months, to the applicant.
135     d.  Beginning 30 days after notice by the Office of
136Tourism, Trade, and Economic Development to the Department of
137Revenue that the applicant has been certified as the
138International Game Fish Association World Center facility
139pursuant to s. 288.1169, and the facility is open to the public,
140$83,333 shall be distributed monthly, for up to 168 months, to
141the applicant. This distribution is subject to reduction
142pursuant to s. 288.1169. A lump sum payment of $999,996 shall be
143made, after certification and before July 1, 2000.
144     e.  The department shall distribute monthly to units of
145local government that have been certified as owning eligible
146convention centers pursuant to s. 288.1171 an amount equal to 50
147percent of the proceeds, as defined in this sub-subparagraph,
148received and collected in the previous month by the department
149under the provisions of this chapter which are generated by such
150eligible convention centers and remitted on the sales and use
151tax returns of eligible convention centers. Proceeds, for this
152sub-subparagraph, are limited to all applicable sales taxes
153collected by an eligible convention center for standard services
154provided by center staff to users of the center, which include
155the following: parking, admission, and ticket sales, food
156services, utilities services, space rentals, equipment rentals,
157security services, decorating services, business services,
158advertising services, communications services, exhibit supply
159sales and rentals, locksmith services, and sales of gifts and
160sundries. The total distribution to each unit of local
161government shall not exceed $1 million per state fiscal year.
162However, total distributions to all units of local government
163shall not exceed $5 million per state fiscal year, and such
164distribution shall be limited exclusively to the taxes collected
165and remitted under the provisions of this chapter. If
166collections and remittances of eligible convention centers
167exceed the $5 million maximum amount authorized for
168distribution, the department shall distribute proceeds to each
169eligible unit of local government using an apportionment factor,
170the numerator of which is the amount remitted by an eligible
171convention center and the denominator is the total amount
172remitted by all eligible convention centers. The apportionment
173factor for each eligible convention center shall be applied to
174the $5 million maximum amount authorized for distribution to
175determine the amount that shall be distributed to each local
176government unit. The department shall prescribe forms required
177to be filed with the department by eligible convention centers.
178Distributions shall begin 60 days following notification of
179certification by the Office of Tourism, Trade, and Economic
180Development pursuant to s. 288.1171. Distributions shall be used
181solely to encourage and provide economic development for the
182attraction, recruitment, and retention of corporate headquarters
183and of high-technology, manufacturing, research and development,
184entertainment, and tourism industries as designated by the unit
185of local government by resolution of its governing body, and to
186assist the eligible convention centers to attract more business
187and expand their offerings, including developing their own
188events and shows. This sub-subparagraph is repealed effective
189June 30, 2008.
190     8.  All other proceeds shall remain with the General
191Revenue Fund.
192     Section 2.  Section 288.1171, Florida Statutes, is created
193to read:
194     288.1171  Convention centers owned by units of local
195government; certification as owning eligible convention centers;
196duties.--
197     (1)  The Office of Tourism, Trade, and Economic Development
198shall serve as the state agency for screening applicants for
199state funding pursuant to s. 212.20(6)(d)7.e. and for certifying
200an applicant as owning an eligible convention center.
201     (2)  The Office of Tourism, Trade, and Economic Development
202shall adopt rules pursuant to ss. 120.536(1) and 120.54 for the
203receipt and processing of applications for funding pursuant to
204s. 212.20(6)(d)7.e.
205     (3)  As used in this section, the term "eligible convention
206center" means a publicly owned facility having exhibition space
207in excess of 60,000 square feet, the primary function of which
208is to host meetings, conventions, or trade shows.
209     (4)  Prior to certifying an applicant as owning an eligible
210convention center, the Office of Tourism, Trade, and Economic
211Development must determine that:
212     (a)  The unit of local government, as defined in s.
213218.369, owns an eligible convention center.
214     (b)  The convention center contains more than 60,000 square
215feet of exhibit space.
216     (c)  The unit of local government in which the convention
217center is located has certified by resolution after a public
218hearing that the application serves a public purpose pursuant to
219subsection (7).
220     (d)  The convention center is located in a county that is
221levying a tourist development tax pursuant to s. 125.0104.
222     (5)  Upon certification of an applicant, the Office of
223Tourism, Trade, and Economic Development shall notify the
224executive director of the Department of Revenue of such
225certification by means of an official letter granting
226certification. The Department of Revenue shall not begin
227distributing proceeds until 60 days following notice by the
228Office of Tourism, Trade, and Economic Development that a unit
229of local government has been certified as owning an eligible
230convention center.
231     (6)  No applicant previously certified under any provision
232of this section who has received proceeds under such
233certification shall be eligible for an additional certification.
234     (7)  A unit of local government certified as owning an
235eligible convention center may use proceeds provided pursuant to
236s. 212.20(6)(d)7.e. solely to encourage and provide economic
237development for the attraction, recruitment, and retention of
238corporate headquarters and of high-technology, manufacturing,
239research and development, entertainment, and tourism industries
240as designated by the unit of local government by resolution of
241its governing body, and to assist the eligible convention
242centers to attract more business and expand their offerings,
243including developing their own events and shows.
244     (8)  The Auditor General may audit as provided in s. 11.45
245to verify that the distributions under this section have been
246expended as required by this section. If the Auditor General
247determines that the distributions have not been expended as
248required by this section, the Auditor General may pursue
249recovery of such proceeds and the unit of local government shall
250be further barred from receiving future distributions of
251proceeds authorized by this section.
252     (9)  Failure to use the proceeds as provided in this
253section shall be grounds for revoking certification.
254     (10)  This section is repealed June 30, 2008.
255     Section 3.  This act shall take effect July 1, 2005.


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