HB 0173CS

CHAMBER ACTION



1The Finance & Tax Committee 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 Auditor General;
21authorizing the Auditor General to pursue recovery of
22certain proceeds; barring certain local governments from
23receiving future distributions under certain
24circumstances; providing for revocation of certification;
25providing for future repeal; providing an effective date.
26
27Be It Enacted by the Legislature of the State of Florida:
28
29     Section 1.  Paragraph (d) of subsection (6) of section
30212.20, Florida Statutes, is amended to read:
31     212.20  Funds collected, disposition; additional powers of
32department; operational expense; refund of taxes adjudicated
33unconstitutionally collected.--
34     (6)  Distribution of all proceeds under this chapter and s.
35202.18(1)(b) and (2)(b) shall be as follows:
36     (d)  The proceeds of all other taxes and fees imposed
37pursuant to this chapter or remitted pursuant to s. 202.18(1)(b)
38and (2)(b) shall be distributed as follows:
39     1.  In any fiscal year, the greater of $500 million, minus
40an amount equal to 4.6 percent of the proceeds of the taxes
41collected pursuant to chapter 201, or 5 percent of all other
42taxes and fees imposed pursuant to this chapter or remitted
43pursuant to s. 202.18(1)(b) and (2)(b) shall be deposited in
44monthly installments into the General Revenue Fund.
45     2.  Two-tenths of one percent shall be transferred to the
46Ecosystem Management and Restoration Trust Fund to be used for
47water quality improvement and water restoration projects.
48     3.  After the distribution under subparagraphs 1. and 2.,
498.814 percent of the amount remitted by a sales tax dealer
50located within a participating county pursuant to s. 218.61
51shall be transferred into the Local Government Half-cent Sales
52Tax Clearing Trust Fund. Beginning July 1, 2003, the amount to
53be transferred pursuant to this subparagraph to the Local
54Government Half-cent Sales Tax Clearing Trust Fund shall be
55reduced by 0.1 percent, and the department shall distribute this
56amount to the Public Employees Relations Commission Trust Fund
57less $5,000 each month, which shall be added to the amount
58calculated in subparagraph 4. and distributed accordingly.
59     4.  After the distribution under subparagraphs 1., 2., and
603., 0.095 percent shall be transferred to the Local Government
61Half-cent Sales Tax Clearing Trust Fund and distributed pursuant
62to s. 218.65.
63     5.  After the distributions under subparagraphs 1., 2., 3.,
64and 4., 2.0440 percent of the available proceeds pursuant to
65this paragraph shall be transferred monthly to the Revenue
66Sharing Trust Fund for Counties pursuant to s. 218.215.
67     6.  After the distributions under subparagraphs 1., 2., 3.,
68and 4., 1.3409 percent of the available proceeds pursuant to
69this paragraph shall be transferred monthly to the Revenue
70Sharing Trust Fund for Municipalities pursuant to s. 218.215. If
71the total revenue to be distributed pursuant to this
72subparagraph is at least as great as the amount due from the
73Revenue Sharing Trust Fund for Municipalities and the former
74Municipal Financial Assistance Trust Fund in state fiscal year
751999-2000, no municipality shall receive less than the amount
76due from the Revenue Sharing Trust Fund for Municipalities and
77the former Municipal Financial Assistance Trust Fund in state
78fiscal year 1999-2000. If the total proceeds to be distributed
79are less than the amount received in combination from the
80Revenue Sharing Trust Fund for Municipalities and the former
81Municipal Financial Assistance Trust Fund in state fiscal year
821999-2000, each municipality shall receive an amount
83proportionate to the amount it was due in state fiscal year
841999-2000.
85     7.  Of the remaining proceeds:
86     a.  In each fiscal year, the sum of $29,915,500 shall be
87divided into as many equal parts as there are counties in the
88state, and one part shall be distributed to each county. The
89distribution among the several counties shall begin each fiscal
90year on or before January 5th and shall continue monthly for a
91total of 4 months. If a local or special law required that any
92moneys accruing to a county in fiscal year 1999-2000 under the
93then-existing provisions of s. 550.135 be paid directly to the
94district school board, special district, or a municipal
95government, such payment shall continue until such time that the
96local or special law is amended or repealed. The state covenants
97with holders of bonds or other instruments of indebtedness
98issued by local governments, special districts, or district
99school boards prior to July 1, 2000, that it is not the intent
100of this subparagraph to adversely affect the rights of those
101holders or relieve local governments, special districts, or
102district school boards of the duty to meet their obligations as
103a result of previous pledges or assignments or trusts entered
104into which obligated funds received from the distribution to
105county governments under then-existing s. 550.135. This
106distribution specifically is in lieu of funds distributed under
107s. 550.135 prior to July 1, 2000.
108     b.  The department shall distribute $166,667 monthly
109pursuant to s. 288.1162 to each applicant that has been
110certified as a "facility for a new professional sports
111franchise" or a "facility for a retained professional sports
112franchise" pursuant to s. 288.1162. Up to $41,667 shall be
113distributed monthly by the department to each applicant that has
114been certified as a "facility for a retained spring training
115franchise" pursuant to s. 288.1162; however, not more than
116$208,335 may be distributed monthly in the aggregate to all
117certified facilities for a retained spring training franchise.
118Distributions shall begin 60 days following such certification
119and shall continue for not more than 30 years. Nothing contained
120in this paragraph shall be construed to allow an applicant
121certified pursuant to s. 288.1162 to receive more in
122distributions than actually expended by the applicant for the
123public purposes provided for in s. 288.1162(6). However, a
124certified applicant is entitled to receive distributions up to
125the maximum amount allowable and undistributed under this
126section for additional renovations and improvements to the
127facility for the franchise without additional certification.
128     c.  Beginning 30 days after notice by the Office of
129Tourism, Trade, and Economic Development to the Department of
130Revenue that an applicant has been certified as the professional
131golf hall of fame pursuant to s. 288.1168 and is open to the
132public, $166,667 shall be distributed monthly, for up to 300
133months, to the applicant.
134     d.  Beginning 30 days after notice by the Office of
135Tourism, Trade, and Economic Development to the Department of
136Revenue that the applicant has been certified as the
137International Game Fish Association World Center facility
138pursuant to s. 288.1169, and the facility is open to the public,
139$83,333 shall be distributed monthly, for up to 168 months, to
140the applicant. This distribution is subject to reduction
141pursuant to s. 288.1169. A lump sum payment of $999,996 shall be
142made, after certification and before July 1, 2000.
143     e.  The department shall distribute monthly to units of
144local government that have been certified as owning eligible
145convention centers pursuant to s. 288.1171 an amount equal to 50
146percent of the proceeds, as defined in this sub-subparagraph,
147received and collected in the previous month by the department
148under the provisions of this chapter which are generated by such
149eligible convention centers and remitted on the sales and use
150tax returns of eligible convention centers. Proceeds, for this
151sub-subparagraph, are limited to all applicable sales taxes
152collected by an eligible convention center for standard services
153provided by center staff to users of the center, which include
154the following: parking, admission, and ticket sales, food
155services, utilities services, space rentals, equipment rentals,
156security services, decorating services, business services,
157advertising services, communications services, exhibit supply
158sales and rentals, locksmith services, and sales of gifts and
159sundries. The total distribution to each unit of local
160government shall not exceed $1 million per state fiscal year.
161However, total distributions to all units of local government
162shall not exceed $5 million per state fiscal year, and such
163distribution shall be limited exclusively to the taxes collected
164and remitted under the provisions of this chapter. If
165collections and remittances of eligible convention centers
166exceed the $5 million maximum amount authorized for
167distribution, the department shall distribute proceeds to each
168eligible unit of local government using an apportionment factor,
169the numerator of which is the amount remitted by an eligible
170convention center and the denominator is the total amount
171remitted by all eligible convention centers. The apportionment
172factor for each eligible convention center shall be applied to
173the $5 million maximum amount authorized for distribution to
174determine the amount that shall be distributed to each local
175government unit. The department shall prescribe forms required
176to be filed with the department by eligible convention centers.
177Distributions shall begin 60 days following notification of
178certification by the Office of Tourism, Trade, and Economic
179Development pursuant to s. 288.1171. Distributions shall be used
180solely to encourage and provide economic development for the
181attraction, recruitment, and retention of corporate headquarters
182and of high-technology, manufacturing, research and development,
183entertainment, and tourism industries as designated by the unit
184of local government by resolution of its governing body, and to
185assist the eligible convention centers to attract more business
186and expand their offerings, including developing their own
187events and shows. This sub-subparagraph is repealed effective
188June 30, 2008.
189     8.  All other proceeds shall remain with the General
190Revenue Fund.
191     Section 2.  Section 288.1171, Florida Statutes, is created
192to read:
193     288.1171  Convention centers owned by units of local
194government; certification as owning eligible convention centers;
195duties.--
196     (1)  The Office of Tourism, Trade, and Economic Development
197shall serve as the state agency for screening applicants for
198state funding pursuant to s. 212.20(6)(d)7.e. and for certifying
199an applicant as owning an eligible convention center.
200     (2)  The Office of Tourism, Trade, and Economic Development
201shall adopt rules pursuant to ss. 120.536(1) and 120.54 for the
202receipt and processing of applications for funding pursuant to
203s. 212.20(6)(d)7.e.
204     (3)  As used in this section, the term "eligible convention
205center" means a publicly owned facility having exhibition space
206in excess of 30,000 square feet, the primary function of which
207is to host meetings, conventions, or trade shows.
208     (4)  Prior to certifying an applicant as owning an eligible
209convention center, the Office of Tourism, Trade, and Economic
210Development must determine that:
211     (a)  The unit of local government, as defined in s.
212218.369, owns an eligible convention center.
213     (b)  The convention center contains more than 30,000 square
214feet of exhibit space.
215     (c)  The unit of local government in which the convention
216center is located has certified by resolution after a public
217hearing that the application serves a public purpose pursuant to
218subsection (7).
219     (d)  The convention center is located in a county that is
220levying a tourist development tax pursuant to s. 125.0104.
221     (5)  Upon certification of an applicant, the Office of
222Tourism, Trade, and Economic Development shall notify the
223executive director of the Department of Revenue of such
224certification by means of an official letter granting
225certification. The Department of Revenue shall not begin
226distributing proceeds until 60 days following notice by the
227Office of Tourism, Trade, and Economic Development that a unit
228of local government has been certified as owning an eligible
229convention center.
230     (6)  No applicant previously certified under any provision
231of this section who has received proceeds under such
232certification shall be eligible for an additional certification.
233     (7)  A unit of local government certified as owning an
234eligible convention center may use proceeds provided pursuant to
235s. 212.20(6)(d)7.e. solely to encourage and provide economic
236development for the attraction, recruitment, and retention of
237corporate headquarters and of high-technology, manufacturing,
238research and development, entertainment, and tourism industries
239as designated by the unit of local government by resolution of
240its governing body, and to assist the eligible convention
241centers to attract more business and expand their offerings,
242including developing their own events and shows.
243     (8)  The Auditor General may audit as provided in s. 11.45
244to verify that the distributions under this section have been
245expended as required by this section. If the Auditor General
246determines that the distributions have not been expended as
247required by this section, the Auditor General may pursue
248recovery of such proceeds and the unit of local government shall
249be further barred from receiving future distributions of
250proceeds authorized by this section.
251     (9)  Failure to use the proceeds as provided in this
252section shall be grounds for revoking certification.
253     (10)  This section is repealed June 30, 2008.
254     Section 3.  This act shall take effect July 1, 2005.


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