Senate Bill sb0066

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    Florida Senate - 2005                                    SB 66

    By Senator Constantine





    22-12-05

  1                      A bill to be entitled

  2         An act relating to economic-development

  3         incentives; 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 specified units of local government owning

  7         eligible convention centers; amending s.

  8         288.1162, F.S.; providing a procedure for

  9         certification of additional facilities for a

10         retained spring training franchise; providing

11         for application and selection; establishing a

12         maximum number of certifications and the

13         funding per application cycle; clarifying the

14         number of certifications of facilities for

15         retained spring training franchises; creating

16         s. 288.1171, F.S.; providing for certification

17         of units of local government owning eligible

18         convention centers by the Office of Tourism,

19         Trade, and Economic Development; requiring the

20         office to adopt specified rules; providing a

21         definition; providing requirements for

22         certification; providing for use of proceeds

23         distributed to units of local government under

24         the act; providing for audits by the Department

25         of Revenue; providing for revocation of

26         certification; providing an effective date.

27  

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

29  

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

31  212.20, Florida Statutes, is amended to read:

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    Florida Senate - 2005                                    SB 66
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 1         212.20  Funds collected, disposition; additional powers

 2  of department; operational expense; refund of taxes

 3  adjudicated unconstitutionally collected.--

 4         (6)  Distribution of all proceeds under this chapter

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

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

 7  pursuant to this chapter or remitted pursuant to s.

 8  202.18(1)(b) and (2)(b) shall be distributed as follows:

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

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

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

12  other taxes and fees imposed pursuant to this chapter or

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

14  deposited in monthly installments into the General Revenue

15  Fund.

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

17  the Ecosystem Management and Restoration Trust Fund to be used

18  for water quality improvement and water restoration projects.

19         3.  After the distribution under subparagraphs 1. and

20  2., 8.814 percent of the amount remitted by a sales tax dealer

21  located within a participating county pursuant to s. 218.61

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

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

24  be transferred pursuant to this subparagraph to the Local

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

26  reduced by 0.1 percent, and the department shall distribute

27  this amount to the Public Employees Relations Commission Trust

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

29  amount calculated in subparagraph 4. and distributed

30  accordingly.

31  

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    Florida Senate - 2005                                    SB 66
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 1         4.  After the distribution under subparagraphs 1., 2.,

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

 3  Government Half-cent Sales Tax Clearing Trust Fund and

 4  distributed pursuant to s. 218.65.

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

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

 7  to this paragraph shall be transferred monthly to the Revenue

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

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

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

11  to this paragraph shall be transferred monthly to the Revenue

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

13  If the total revenue to be distributed pursuant to this

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

15  Revenue Sharing Trust Fund for Municipalities and the former

16  Municipal Financial Assistance Trust Fund in state fiscal year

17  1999-2000, no municipality shall receive less than the amount

18  due from the Revenue Sharing Trust Fund for Municipalities and

19  the former Municipal Financial Assistance Trust Fund in state

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

21  are less than the amount received in combination from the

22  Revenue Sharing Trust Fund for Municipalities and the former

23  Municipal Financial Assistance Trust Fund in state fiscal year

24  1999-2000, each municipality shall receive an amount

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

26  1999-2000.

27         7.  Of the remaining proceeds:

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

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

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

31  The distribution among the several counties shall begin each

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

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

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

 4  1999-2000 under the then-existing provisions of s. 550.135 be

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

 6  or a municipal government, such payment shall continue until

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

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

 9  instruments of indebtedness issued by local governments,

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

11  2000, that it is not the intent of this subparagraph to

12  adversely affect the rights of those holders or relieve local

13  governments, special districts, or district school boards of

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

15  pledges or assignments or trusts entered into which obligated

16  funds received from the distribution to county governments

17  under then-existing s. 550.135.  This distribution

18  specifically is in lieu of funds distributed under s. 550.135

19  prior to July 1, 2000.

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

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

22  certified as a "facility for a new professional sports

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

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

25  distributed monthly by the department to each applicant that

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

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

28  than $416,667 $208,335 may be distributed monthly in the

29  aggregate to all certified facilities for a retained spring

30  training franchise. Distributions shall begin 60 days

31  following such certification and shall continue for not more

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    Florida Senate - 2005                                    SB 66
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 1  than 30 years. Nothing contained in this paragraph shall be

 2  construed to allow an applicant certified pursuant to s.

 3  288.1162 to receive more in distributions than actually

 4  expended by the applicant for the public purposes provided for

 5  in s. 288.1162(6). However, a certified applicant is entitled

 6  to receive distributions up to the maximum amount allowable

 7  and undistributed under this section for additional

 8  renovations and improvements to the facility for the franchise

 9  without additional certification.

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

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

12  Revenue that an applicant has been certified as the

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

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

15  up to 300 months, to the applicant.

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

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

18  Revenue that the applicant has been certified as the

19  International Game Fish Association World Center facility

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

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

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

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

24  $999,996 shall be made, after certification and before July 1,

25  2000.

26         e.  The department shall distribute monthly to units of

27  local government that have been certified as owning eligible

28  convention centers under s. 288.1171 an amount equal to 50

29  percent of the proceeds, as defined in paragraph (5)(a),

30  received and collected in the previous month by the department

31  under this chapter which are generated by the eligible

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    Florida Senate - 2005                                    SB 66
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 1  convention centers and remitted on the sales and use tax

 2  returns of eligible convention centers. Proceeds, for purposes

 3  of this sub-subparagraph, are further defined as all

 4  applicable sales taxes collected by an eligible center for

 5  standard services provided by center staff to users of the

 6  center, which include the following: parking, admission,

 7  ticket sales, food services, electrical or like services,

 8  space rentals, equipment rentals, and security services. The

 9  total distribution to each unit of local government may not

10  exceed $2 million per state fiscal year. However, total

11  distributions to all units of local governments may not exceed

12  $10 million each state fiscal year, and the distribution must

13  be limited exclusively to the taxes collected and remitted

14  under this chapter. The department shall prescribe forms

15  required to be filed with the department by eligible

16  convention centers. Distributions shall begin 60 days

17  following notification of certification by the Office of

18  Tourism, Trade, and Economic Development under s. 288.1171 and

19  shall continue for not more than 30 years. Distributions must

20  be used solely to encourage and provide economic development

21  for attracting, recruiting, and retaining corporate

22  headquarters and high-technology, manufacturing, research and

23  development, entertainment, and tourism industries as

24  designated by the unit of local government by resolution of

25  its governing body.

26         8.  All other proceeds shall remain with the General

27  Revenue Fund.

28         Section 2.  Paragraph (c) of subsection (5) and

29  subsection (7) of section 288.1162, Florida Statutes, are

30  amended to read:

31  

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    Florida Senate - 2005                                    SB 66
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 1         288.1162  Professional sports franchises; spring

 2  training franchises; duties.--

 3         (5)

 4         (c)1.  The Office of Tourism, Trade, and Economic

 5  Development shall competitively evaluate applications for

 6  funding of a facility for a retained spring training

 7  franchise.  Applications must be submitted by October 1, 2000,

 8  with certifications to be made by January 1, 2001.  If the

 9  number of applicants exceeds five and the aggregate funding

10  request of all applications exceeds $208,335 per month, the

11  office shall rank the applications according to a selection

12  criteria, certifying the highest ranked proposals.  The

13  evaluation criteria shall include, with priority given in

14  descending order to the following items:

15         a.1.  The intended use of the funds by the applicant,

16  with priority given to the construction of a new facility.

17         b.2.  The length of time that the existing franchise

18  has been located in the state, with priority given to

19  retaining franchises that have been in the same location the

20  longest.

21         c.3.  The length of time that a facility to be used by

22  a retained spring training franchise has been used by one or

23  more spring training franchises, with priority given to a

24  facility that has been in continuous use as a facility for

25  spring training the longest.

26         d.4.  For those teams leasing a spring training

27  facility from a unit of local government, the remaining time

28  on the lease for facilities used by the spring training

29  franchise, with priority given to the shortest time period

30  remaining on the lease.

31  

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 1         e.5.  The duration of the future-use agreement with the

 2  retained spring training franchise, with priority given to the

 3  future-use agreement having the longest duration.

 4         f.6.  The amount of the local match, with priority

 5  given to the largest percentage of local match proposed.

 6         g.7.  The net increase of total active recreation space

 7  owned by the applying unit of local government following the

 8  acquisition of land for the spring training facility, with

 9  priority given to the largest percentage increase of total

10  active recreation space.

11         h.8.  The location of the facility in a brownfield, an

12  enterprise zone, a community redevelopment area, or other area

13  of targeted development or revitalization included in an Urban

14  Infill Redevelopment Plan, with priority given to facilities

15  located in these areas.

16         i.9.  The projections on paid attendance attracted by

17  the facility and the proposed effect on the economy of the

18  local community, with priority given to the highest projected

19  paid attendance.

20         2.  Beginning July 1, 2005, the Office of Tourism,

21  Trade, and Economic Development shall competitively evaluate

22  applications for funding of facilities for retained spring

23  training franchises in addition to those certified and funded

24  under subparagraph 1. Applications must be submitted by

25  October 1 of each year, with certifications to be made by

26  January 1 of the following year. The office shall rank the

27  applications according to selection criteria, certifying no

28  more than five proposals in any application cycle. The

29  aggregate funding request of all applicants certified during

30  any application cycle may not exceed an aggregate funding

31  request of $208,335 per month. The evaluation criteria must

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 1  include the following, with priority given in descending

 2  order:

 3         a.  The intended use of the funds by the applicant for

 4  acquisition or construction of a new facility.

 5         b.  The intended use of the funds by the applicant to

 6  renovate a facility.

 7         c.  The length of time that a facility to be used by a

 8  retained spring training franchise has been used by one or

 9  more spring training franchises, with priority given to a

10  facility that has been in continuous use as a facility for

11  spring training the longest.

12         d.  For those teams leasing a spring training facility

13  from a unit of local government, the remaining time on the

14  lease for facilities used by the spring training franchise,

15  with priority given to the shortest time period remaining on

16  the lease. For consideration under this subparagraph, the

17  remaining time on the lease may not exceed 4 years.

18         e.  The duration of the future-use agreement with the

19  retained spring training franchise, with priority given to the

20  future-use agreement having the longest duration.

21         f.  The amount of the local match, with priority given

22  to the largest percentage of local match proposed.

23         g.  The net increase of total active recreation space

24  owned by the applying unit of local government following the

25  acquisition of land for the spring training facility, with

26  priority given to the largest percentage increase of total

27  active recreation space.

28         h.  The location of the facility in a brownfield area,

29  an enterprise zone, a community redevelopment area, or another

30  area of targeted development or revitalization included in an

31  

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 1  urban infill redevelopment plan, with priority given to

 2  facilities located in those areas.

 3         i.  The projections on paid attendance attracted by the

 4  facility and the proposed effect on the economy of the local

 5  community, with priority given to the highest projected paid

 6  attendance.

 7         (7)  The Office of Tourism, Trade, and Economic

 8  Development shall notify the Department of Revenue of any

 9  facility certified as a facility for a new professional sports

10  franchise or a facility for a retained professional sports

11  franchise or as a facility for a retained spring training

12  franchise. The Office of Tourism, Trade, and Economic

13  Development shall certify no more than eight facilities as

14  facilities for a new professional sports franchise or as

15  facilities for a retained professional sports franchise and

16  shall certify at least five as facilities for retained spring

17  training franchises, including in such total any facilities

18  certified by the Department of Commerce before July 1, 1996.

19  The number of certifications of facilities for retained spring

20  training franchises shall be governed by subsection (5). The

21  office may make no more than one certification for any

22  facility. The office may not certify funding for less than the

23  requested amount to any applicant certified as a facility for

24  a retained spring training franchise.

25         Section 3.  Section 288.1171, Florida Statutes, is

26  created to read:

27         288.1171  Convention centers owned by units of local

28  government; certification as owning eligible convention

29  centers; duties.--

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

31  Development shall serve as the state agency for screening

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 1  applicants for state funding under s. 212.20(6)(d)7.e. and for

 2  certifying an applicant as owning an eligible convention

 3  center.

 4         (2)  The Office of Tourism, Trade, and Economic

 5  Development shall adopt rules under ss. 120.536(1) and 120.54

 6  for the receipt and processing of applications for funding as

 7  provided in s. 212.20(6)(d)7.e.

 8         (3)  As used in this section, the term "eligible

 9  convention center" means a publicly owned facility having

10  exhibition space in excess of 75,000 square feet, the primary

11  function of which is to host meetings, conventions, or trade

12  shows.

13         (4)  Prior to certifying an applicant as owning an

14  eligible convention center, the Office of Tourism, Trade, and

15  Economic Development must determine that:

16         (a)  The unit of local government, as defined in s.

17  218.369, owns an eligible convention center.

18         (b)  The convention center contains more than 75,000

19  square feet of exhibit space.

20         (c)  The unit of local government in which the

21  convention center is located has certified by resolution after

22  a public hearing that the application serves a public purpose

23  under subsection (7).

24         (d)  The convention center is located in a county that

25  is levying a tourist development tax under s. 125.0104.

26         (5)  Upon certification of an applicant, the Office of

27  Tourism, Trade, and Economic Development shall notify the

28  executive director of the Department of Revenue of such

29  certification by means of an official letter granting

30  certification. The Department of Revenue may not begin

31  distributing proceeds until 60 days following notice by the

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 1  Office of Tourism, Trade, and Economic Development that a unit

 2  of local government has been certified as owning an eligible

 3  convention center.

 4         (6)  An applicant previously certified under any

 5  provision of this section who has received proceeds under such

 6  certification is not eligible for an additional certification.

 7         (7)  A unit of local government certified as owning an

 8  eligible convention center may use proceeds provided under s.

 9  212.20(6)(d)7.e. solely to encourage and provide economic

10  development for attracting, recruiting, and retaining

11  corporate headquarters and high-technology, manufacturing,

12  research and development, entertainment, and tourism

13  industries as designated by the unit of local government by

14  resolution of its governing body.

15         (8)  The Department of Revenue may conduct audits as

16  provided in s. 213.34 to verify that the distributions made

17  under this section have been expended as required in this

18  section. Such information is subject to the confidentiality

19  requirements of chapter 213. If the Department of Revenue

20  determines that the distributions have not been expended as

21  required by this section, it may pursue recovery of those

22  distributions under the laws and rules governing the

23  assessment of taxes.

24         (9)  Failure to use the distributions as provided in

25  this section is grounds for revoking certification.

26         Section 4.  This act shall take effect July 1, 2005.

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 1            *****************************************

 2                          SENATE SUMMARY

 3    Provides for distributing a portion of revenues from the
      tax on sales, use, and other transactions to specified
 4    units of local government owning eligible convention
      centers. Provides for certifying units of local
 5    government owning eligible convention centers by the
      Office of Tourism, Trade, and Economic Development.
 6    Provides a procedure for certifying additional facilities
      for a retained spring training franchise. Establishes a
 7    maximum number of certifications and the funding per
      application cycle. Clarifies the number of certifications
 8    of facilities for retained spring training franchises.

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