Senate Bill sb2476c1

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    Florida Senate - 2005                           CS for SB 2476

    By the Committee on Commerce and Consumer Services; and
    Senators Lynn and King




    577-2108-05

  1                      A bill to be entitled

  2         An act relating to a NASCAR Hall of Fame

  3         facility; amending s. 212.20, F.S.; providing

  4         for distribution of a portion of revenues from

  5         the tax on sales, use, and other transactions

  6         to a NASCAR Hall of Fame facility; creating s.

  7         288.1170, F.S.; specifying the Office of

  8         Tourism, Trade, and Economic Development as the

  9         state entity for screening NASCAR Hall of Fame

10         facility applicants; providing for

11         certification of such facility by the office;

12         providing requirements for certification and

13         operation of the facility; providing for

14         distribution of funds; authorizing certain uses

15         of funds distributed to the facility; providing

16         procedural requirements for the office;

17         limiting distribution of funds by the

18         Department of Revenue; providing for audits by

19         the department; providing for periodic

20         recertification by the office; providing

21         requirements; providing certain advertising

22         contribution requirements; providing for

23         increasing such advertising contribution

24         requirements under certain circumstances;

25         amending ss. 320.08056 and 320.08058, F.S.;

26         providing for a NASCAR license plate; providing

27         for a use fee; directing the Department of

28         Highway Safety and Motor Vehicles to develop a

29         NASCAR license plate; providing for the

30         distribution and use of fees; providing an

31         effective date.

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    Florida Senate - 2005                           CS for SB 2476
    577-2108-05




 1  

 2         WHEREAS, the National Association for Stock Car Auto

 3  Racing, Inc., (NASCAR), founded in 1948, is the preeminent

 4  auto racing sanctioning body in the world, and

 5         WHEREAS, the City of Daytona Beach is the recognized

 6  center of auto racing in the United States and a leading

 7  economic engine, attracting millions of race fans each year to

 8  Florida to attend racing events and to participate in related

 9  racing activities, and

10         WHEREAS, NASCAR, Inc., has recently submitted its

11  Request For Proposals to at least four cities in the United

12  States, including the City of Daytona Beach, to develop, fund,

13  and maintain the NASCAR Hall of Fame, and

14         WHEREAS, the City of Daytona Beach, the County of

15  Volusia, and the State of Florida would benefit greatly by the

16  establishment of the NASCAR Hall of Fame in the cradle of auto

17  racing, the City of Daytona Beach, and

18         WHEREAS, the NASCAR Hall of Fame facility would receive

19  national and international media promotion and attention to

20  the extent of promoting the quality of life in Florida, so as

21  to attract national and international tourists and

22  sports-related industry, and

23         WHEREAS, additional generated tourism has a positive

24  impact on both the taxes and economy of the state and

25  additional economic development enhances employment

26  opportunities for Florida citizens as well as expanding the

27  tax base, and

28         WHEREAS, the issuance of a NASCAR HALL OF FAME license

29  plate would provide a means for racing fans to support the

30  creation of the NASCAR RACING HALL OF FAME in Florida, NOW,

31  THEREFORE,

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    Florida Senate - 2005                           CS for SB 2476
    577-2108-05




 1  Be It Enacted by the Legislature of the State of Florida:

 2  

 3         Section 1.  Paragraph (d) of subsection (6) of section

 4  212.20, Florida Statutes, is amended to read:

 5         212.20  Funds collected, disposition; additional powers

 6  of department; operational expense; refund of taxes

 7  adjudicated unconstitutionally collected.--

 8         (6)  Distribution of all proceeds under this chapter

 9  and s. 202.18(1)(b) and (2)(b) shall be as follows:

10         (d)  The proceeds of all other taxes and fees imposed

11  pursuant to this chapter or remitted pursuant to s.

12  202.18(1)(b) and (2)(b) shall be distributed as follows:

13         1.  In any fiscal year, the greater of $500 million,

14  minus an amount equal to 4.6 percent of the proceeds of the

15  taxes collected pursuant to chapter 201, or 5 percent of all

16  other taxes and fees imposed pursuant to this chapter or

17  remitted pursuant to s. 202.18(1)(b) and (2)(b) shall be

18  deposited in monthly installments into the General Revenue

19  Fund.

20         2.  Two-tenths of one percent shall be transferred to

21  the Ecosystem Management and Restoration Trust Fund to be used

22  for water quality improvement and water restoration projects.

23         3.  After the distribution under subparagraphs 1. and

24  2., 8.814 percent of the amount remitted by a sales tax dealer

25  located within a participating county pursuant to s. 218.61

26  shall be transferred into the Local Government Half-cent Sales

27  Tax Clearing Trust Fund. Beginning July 1, 2003, the amount to

28  be transferred pursuant to this subparagraph to the Local

29  Government Half-cent Sales Tax Clearing Trust Fund shall be

30  reduced by 0.1 percent, and the department shall distribute

31  this amount to the Public Employees Relations Commission Trust

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    Florida Senate - 2005                           CS for SB 2476
    577-2108-05




 1  Fund less $5,000 each month, which shall be added to the

 2  amount calculated in subparagraph 4. and distributed

 3  accordingly.

 4         4.  After the distribution under subparagraphs 1., 2.,

 5  and 3., 0.095 percent shall be transferred to the Local

 6  Government Half-cent Sales Tax Clearing Trust Fund and

 7  distributed pursuant to s. 218.65.

 8         5.  After the distributions under subparagraphs 1., 2.,

 9  3., and 4., 2.0440 percent of the available proceeds pursuant

10  to this paragraph shall be transferred monthly to the Revenue

11  Sharing Trust Fund for Counties pursuant to s. 218.215.

12         6.  After the distributions under subparagraphs 1., 2.,

13  3., and 4., 1.3409 percent of the available proceeds pursuant

14  to this paragraph shall be transferred monthly to the Revenue

15  Sharing Trust Fund for Municipalities pursuant to s. 218.215.

16  If the total revenue to be distributed pursuant to this

17  subparagraph is at least as great as the amount due from the

18  Revenue Sharing Trust Fund for Municipalities and the former

19  Municipal Financial Assistance Trust Fund in state fiscal year

20  1999-2000, no municipality shall receive less than the amount

21  due from the Revenue Sharing Trust Fund for Municipalities and

22  the former Municipal Financial Assistance Trust Fund in state

23  fiscal year 1999-2000. If the total proceeds to be distributed

24  are less than the amount received in combination from the

25  Revenue Sharing Trust Fund for Municipalities and the former

26  Municipal Financial Assistance Trust Fund in state fiscal year

27  1999-2000, each municipality shall receive an amount

28  proportionate to the amount it was due in state fiscal year

29  1999-2000.

30         7.  Of the remaining proceeds:

31  

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    Florida Senate - 2005                           CS for SB 2476
    577-2108-05




 1         a.  In each fiscal year, the sum of $29,915,500 shall

 2  be divided into as many equal parts as there are counties in

 3  the state, and one part shall be distributed to each county.

 4  The distribution among the several counties shall begin each

 5  fiscal year on or before January 5th and shall continue

 6  monthly for a total of 4 months. If a local or special law

 7  required that any moneys accruing to a county in fiscal year

 8  1999-2000 under the then-existing provisions of s. 550.135 be

 9  paid directly to the district school board, special district,

10  or a municipal government, such payment shall continue until

11  such time that the local or special law is amended or

12  repealed. The state covenants with holders of bonds or other

13  instruments of indebtedness issued by local governments,

14  special districts, or district school boards prior to July 1,

15  2000, that it is not the intent of this subparagraph to

16  adversely affect the rights of those holders or relieve local

17  governments, special districts, or district school boards of

18  the duty to meet their obligations as a result of previous

19  pledges or assignments or trusts entered into which obligated

20  funds received from the distribution to county governments

21  under then-existing s. 550.135. This distribution specifically

22  is in lieu of funds distributed under s. 550.135 prior to July

23  1, 2000.

24         b.  The department shall distribute $166,667 monthly

25  pursuant to s. 288.1162 to each applicant that has been

26  certified as a "facility for a new professional sports

27  franchise" or a "facility for a retained professional sports

28  franchise" pursuant to s. 288.1162. Up to $41,667 shall be

29  distributed monthly by the department to each applicant that

30  has been certified as a "facility for a retained spring

31  training franchise" pursuant to s. 288.1162; however, not more

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    Florida Senate - 2005                           CS for SB 2476
    577-2108-05




 1  than $208,335 may be distributed monthly in the aggregate to

 2  all certified facilities for a retained spring training

 3  franchise. Distributions shall begin 60 days following such

 4  certification and shall continue for not more than 30 years.

 5  Nothing contained in this paragraph shall be construed to

 6  allow an applicant certified pursuant to s. 288.1162 to

 7  receive more in distributions than actually expended by the

 8  applicant for the public purposes provided for in s.

 9  288.1162(6). However, a certified applicant is entitled to

10  receive distributions up to the maximum amount allowable and

11  undistributed under this section for additional renovations

12  and improvements to the facility for the franchise without

13  additional certification.

14         c.  Beginning 30 days after notice by the Office of

15  Tourism, Trade, and Economic Development to the Department of

16  Revenue that an applicant has been certified as the

17  professional golf hall of fame pursuant to s. 288.1168 and is

18  open to the public, $166,667 shall be distributed monthly, for

19  up to 300 months, to the applicant.

20         d.  Beginning 30 days after notice by the Office of

21  Tourism, Trade, and Economic Development to the Department of

22  Revenue that the applicant has been certified as the

23  International Game Fish Association World Center facility

24  pursuant to s. 288.1169, and the facility is open to the

25  public, $83,333 shall be distributed monthly, for up to 168

26  months, to the applicant. This distribution is subject to

27  reduction pursuant to s. 288.1169. A lump sum payment of

28  $999,996 shall be made, after certification and before July 1,

29  2000.

30         e.  Beginning 30 days after notice by the Office of

31  Tourism, Trade, and Economic Development to the Department of

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    Florida Senate - 2005                           CS for SB 2476
    577-2108-05




 1  Revenue that an applicant has been certified as the NASCAR

 2  Hall of Fame facility pursuant to s. 288.1170 and is open to

 3  the public, $100,000 shall be distributed monthly, for up to

 4  300 months, to the applicant.

 5         8.  All other proceeds shall remain with the General

 6  Revenue Fund.

 7         Section 2.  Section 288.1170, Florida Statutes, is

 8  created to read:

 9         288.1170  National Association for Stock Car Auto

10  Racing, Inc., (NASCAR) Hall of Fame facility; duties of the

11  Office of Tourism, Trade, and Economic Development.--

12         (1)  The Office of Tourism, Trade, and Economic

13  Development shall serve as the state entity for screening

14  applicants for state funding pursuant to s. 212.20 and for

15  certifying one applicant as the NASCAR Hall of Fame facility

16  in the state.

17         (2)  Prior to certifying the NASCAR Hall of Fame

18  facility, the Office of Tourism, Trade, and Economic

19  Development must determine that:

20         (a)  The NASCAR Hall of Fame facility would be the only

21  NASCAR Hall of Fame in the United States recognized by NASCAR,

22  Inc.

23         (b)  The applicant is a unit of local government as

24  defined in s. 218.369 or a private sector group that has

25  contracted to construct or operate the NASCAR Hall of Fame

26  facility on land owned by a unit of local government.

27         (c)  The municipality in which the NASCAR Hall of Fame

28  facility is located, or the county if the facility is located

29  in an unincorporated area, has certified by resolution after a

30  public hearing that the application serves a public purpose.

31  

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    Florida Senate - 2005                           CS for SB 2476
    577-2108-05




 1         (d)  There are existing projections that the NASCAR

 2  Hall of Fame facility will attract a paid attendance of more

 3  than 350,000 annually.

 4         (e)  There is an independent analysis or study, using

 5  methodology approved by the Office of Tourism, Trade, and

 6  Economic Development, which demonstrates that the amount of

 7  the revenues generated by the taxes imposed under chapter 212

 8  with respect to the use and operation of the NASCAR Hall of

 9  Fame facility will equal or exceed $1.2 million annually.

10         (f)  Documentation exists which demonstrates that the

11  applicant has provided, is capable of providing, or has

12  financial or other commitments to provide more than one-half

13  of the cost incurred in or related to the improvement and

14  development of the facility.

15         (g)  The application is signed by an official senior

16  executive of the applicant and is notarized according to the

17  laws of this state providing for penalties for falsification.

18         (3)  The applicant may use funds provided pursuant to

19  s. 212.20 for the public purpose of paying for the

20  construction, reconstruction, renovation, or operation of the

21  NASCAR Hall of Fame facility, or to pay or pledge for payment

22  of debt service on, or to fund debt service reserve funds,

23  arbitrage rebate obligations, or other amounts payable with

24  respect to, bonds issued for the construction, reconstruction,

25  or renovation of the facility or for the reimbursement of such

26  costs or the refinancing of bonds issued for such purpose.

27         (4)  Upon determining that an applicant is or is not

28  certifiable, the  Office of Tourism, Trade, and Economic

29  Development shall notify the applicant of his or her status by

30  means of an official letter. If certifiable, the secretary

31  shall notify the executive director of the Department of

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    Florida Senate - 2005                           CS for SB 2476
    577-2108-05




 1  Revenue and the applicant of such certification by means of an

 2  official letter granting certification. From the date of such

 3  certification, the applicant shall have 5 years to open the

 4  NASCAR Hall of Fame facility to the public and notify the

 5  Office of Tourism, Trade, and Economic Development of such

 6  opening. The Department of Revenue shall not begin

 7  distributing funds until 30 days following notice by the

 8  Office of Tourism, Trade, and Economic Development that the

 9  NASCAR Hall of Fame facility is open to the public.

10         (5)  The Department of Revenue may audit as provided in

11  s. 213.34, to verify that the distributions under this section

12  have been expended as required by this section.

13         (6)  The Office of Tourism, Trade, and Economic

14  Development must recertify every 10 years that the facility is

15  open, continues to be the only NASCAR Hall of Fame in the

16  United States recognized by NASCAR, Inc., and is meeting the

17  minimum projections for attendance or sales tax revenue as

18  required at the time of original certification.

19         Section 3.  Paragraph (eee) is added to subsection (4)

20  of section 320.08056, Florida Statutes, to read:

21         320.08056  Specialty license plates.--

22         (4)  The following license plate annual use fees shall

23  be collected for the appropriate specialty license plates:

24         (eee)  NASCAR license plate, $25.

25         Section 4.  Subsection (57) is added to section

26  320.08058, Florida Statutes, to read:

27         320.08058  Specialty license plates.--

28         (57)  NASCAR LICENSE PLATES.--

29         (a)  Upon an organization meeting the requirements in

30  s. 320.08053, the Department of Highway Safety and Motor

31  Vehicles shall develop a NASCAR license plate as provided in

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    Florida Senate - 2005                           CS for SB 2476
    577-2108-05




 1  this subsection. The word "Florida" must appear at the top of

 2  the plate. The NASCAR Hall of Fame, following consultation

 3  with NASCAR and the International Speedway Corporation, may

 4  submit a revised sample plate for consideration by the

 5  department.

 6         (b)  The annual use fee shall be distributed to the

 7  Department of Revenue to offset the sales tax disbursements of

 8  $1.2 million per year by the Department of Revenue to the

 9  NASCAR Hall of Fame, Inc., for the construction, operation,

10  and maintenance of the NASCAR Hall of Fame in Daytona Beach.

11  Any distribution of fees to the department in excess of the

12  sales tax distributions shall be retained and used to offset

13  future distributions.

14         Section 5.  The authorization of the specialty license

15  plate as provided in sections 3 and 4 of this act is subject

16  to the City of Daytona Beach being designated as the site for

17  the official NASCAR Hall of Fame. If that designation is not

18  awarded to the City of Daytona Beach, the authorization of the

19  NASCAR specialty tag is rescinded.

20         Section 6.  Until the NASCAR Hall of Fame has been

21  certified by the Office of Tourism, Trade, and Economic

22  Development as provided in section 2 of this act, the funds

23  generated by the sale of the NASCAR license plate shall be

24  deposited with the Department of Revenue and held in trust for

25  the benefit of the NASCAR Hall of Fame facility upon

26  certification. If the NASCAR Hall of Fame facility is not

27  certified, the funds generated by the NASCAR license plate

28  shall be used to support the sport of auto racing in this

29  state.

30         Section 7.  This act shall take effect upon becoming a

31  law.

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    Florida Senate - 2005                           CS for SB 2476
    577-2108-05




 1          STATEMENT OF SUBSTANTIAL CHANGES CONTAINED IN
                       COMMITTEE SUBSTITUTE FOR
 2                         Senate Bill 2476

 3                                 

 4  The committee substitute differs from the bill in that it:

 5  -    Reduces the monthly sales tax distributions, from
         $250,000 to $100,000, to the NASCAR Hall of Fame facility
 6       (or from $3 million to $1.2 million annually, and from
         $75 million to $30 million in total);
 7  
    -    Reduces the required attendance projections from 500,000
 8       to 350,000 annually;

 9  -    Reduces required sales taxes generated by the facility
         from $3 million to $1.2 million, to correspond with the
10       reduction in sales tax distributions;

11  -    Removes the requirement that the applicant for the
         facility agree to provide $2 million annually for
12       promotion of the facility, and an additional unspecified
         amount approved by OTTED for generic advertising in the
13       state;

14  -    Adds a requirement that the applicant show they have
         provided, or are capable of providing, more than half of
15       the cost incurred in or related to the improvement and
         development of the facility;
16  
    -    Deletes provisions regarding funding increases for
17       promotion that the applicant must provide if the facility
         is not meeting attendance projections or is not open to
18       the public;

19  -    Creates the NASCAR specialty license plate, providing for
         HSMV to develop the plate;
20  
    -    Provides that the license plate fees collected will be
21       distributed to DOR to offset the sales tax distributions
         of $1.2 million; fees collected in excess of $1.2 million
22       will be retained by DOR to offset future distributions;

23  -    Provides the authorization of the license plate is
         subject to designation of the facility, if the
24       designation is not awarded to the City of Daytona Beach,
         the specialty plate will not be authorized; and
25  
    -    Provides that funds generated by the license plate will
26       be held in trust by DOR until the facility has been
         certified by OTTED; if the facility is not certified,
27       funds generated by the plate will be used to support auto
         racing in Florida.
28  

29  

30  

31  

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