Senate Bill sb0350

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    Florida Senate - 2006                                   SB 350

    By Senator Constantine





    22-165-06

  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; providing

  8         limitations; requiring the Department of

  9         Revenue to prescribe certain forms; creating s.

10         288.1171, F.S.; providing for certification of

11         units of local government owning eligible

12         convention centers by the Office of Tourism,

13         Trade, and Economic Development; requiring the

14         office to adopt specified rules; providing a

15         definition; providing requirements for

16         certification; providing for use of proceeds

17         distributed to units of local government under

18         the act; providing for audits by the Auditor

19         General; providing for revocation of

20         certification; providing an effective date.

21  

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

23  

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

25  212.20, Florida Statutes, is amended to read:

26         212.20  Funds collected, disposition; additional powers

27  of department; operational expense; refund of taxes

28  adjudicated unconstitutionally collected.--

29         (6)  Distribution of all proceeds under this chapter

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

31  

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    Florida Senate - 2006                                   SB 350
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 1         (d)  The proceeds of all other taxes and fees imposed

 2  pursuant to this chapter or remitted pursuant to s.

 3  202.18(1)(b) and (2)(b) shall be distributed as follows:

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

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

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

 7  other taxes and fees imposed pursuant to this chapter or

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

 9  deposited in monthly installments into the General Revenue

10  Fund.

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

12  the Ecosystem Management and Restoration Trust Fund to be used

13  for water quality improvement and water restoration projects.

14         3.  After the distribution under subparagraphs 1. and

15  2., 8.814 percent of the amount remitted by a sales tax dealer

16  located within a participating county pursuant to s. 218.61

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

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

19  be transferred pursuant to this subparagraph to the Local

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

21  reduced by 0.1 percent, and the department shall distribute

22  this amount to the Public Employees Relations Commission Trust

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

24  amount calculated in subparagraph 4. and distributed

25  accordingly.

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

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

28  Government Half-cent Sales Tax Clearing Trust Fund and

29  distributed pursuant to s. 218.65.

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

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

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 1  to this paragraph shall be transferred monthly to the Revenue

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

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

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

 5  to this paragraph shall be transferred monthly to the Revenue

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

 7  If the total revenue to be distributed pursuant to this

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

 9  Revenue Sharing Trust Fund for Municipalities and the former

10  Municipal Financial Assistance Trust Fund in state fiscal year

11  1999-2000, no municipality shall receive less than the amount

12  due from the Revenue Sharing Trust Fund for Municipalities and

13  the former Municipal Financial Assistance Trust Fund in state

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

15  are less than the amount received in combination from the

16  Revenue Sharing Trust Fund for Municipalities and the former

17  Municipal Financial Assistance Trust Fund in state fiscal year

18  1999-2000, each municipality shall receive an amount

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

20  1999-2000.

21         7.  Of the remaining proceeds:

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

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

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

25  The distribution among the several counties shall begin each

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

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

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

29  1999-2000 under the then-existing provisions of s. 550.135 be

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

31  or a municipal government, such payment shall continue until

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

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

 3  instruments of indebtedness issued by local governments,

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

 5  2000, that it is not the intent of this subparagraph to

 6  adversely affect the rights of those holders or relieve local

 7  governments, special districts, or district school boards of

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

 9  pledges or assignments or trusts entered into which obligated

10  funds received from the distribution to county governments

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

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

13  1, 2000.

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

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

16  certified as a "facility for a new professional sports

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

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

19  distributed monthly by the department to each applicant that

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

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

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

23  all certified facilities for a retained spring training

24  franchise. Distributions shall begin 60 days following such

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

26  Nothing contained in this paragraph shall be construed to

27  allow an applicant certified pursuant to s. 288.1162 to

28  receive more in distributions than actually expended by the

29  applicant for the public purposes provided for in s.

30  288.1162(6). However, a certified applicant is entitled to

31  receive distributions up to the maximum amount allowable and

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 1  undistributed under this section for additional renovations

 2  and improvements to the facility for the franchise without

 3  additional certification.

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

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

 6  Revenue that an applicant has been certified as the

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

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

 9  up to 300 months, to the applicant.

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

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

12  Revenue that the applicant has been certified as the

13  International Game Fish Association World Center facility

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

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

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

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

18  $999,996 shall be made, after certification and before July 1,

19  2000.

20         e.  The department shall distribute monthly to units of

21  local government that have been certified as owning eligible

22  convention centers pursuant to s. 288.1171 an amount equal to

23  50 percent of the proceeds herein defined which are received

24  and collected in the previous month by the department under

25  the provisions of this chapter and are generated by such

26  eligible convention centers and remitted on the sales and use

27  tax returns of eligible convention centers. Proceeds, for this

28  sub-subparagraph, are further defined as all applicable sales

29  taxes collected by an eligible convention center for standard

30  services provided by center staff to users of the center,

31  which include the following: parking, admission, ticket sales,

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    Florida Senate - 2006                                   SB 350
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 1  food services, utilities services, space rentals, equipment

 2  rentals, security services, decorating services, business

 3  services, advertising services, communications services,

 4  exhibit supply sales and rentals, locksmith services, and

 5  sales of gifts and sundries. The total distribution to each

 6  unit of local government shall not exceed $1 million per state

 7  fiscal year. However, total distributions to all units of

 8  local government shall not exceed $5 million per state fiscal

 9  year, and such distribution shall be limited exclusively to

10  the taxes collected and remitted under the provisions of this

11  chapter. If collections and remittances of eligible convention

12  centers exceed the $5 million maximum amount authorized for

13  distribution, the department shall distribute proceeds to each

14  eligible unit of local government using an apportionment

15  factor, the numerator of which is the amount remitted by an

16  eligible convention center and the denominator is the total

17  amount remitted by all eligible convention centers. The

18  apportionment factor for each eligible convention center shall

19  be applied to the $5 million maximum amount authorized for

20  distribution to determine the amount that shall be distributed

21  to each local government unit. The department shall prescribe

22  forms required to be filed with the department by eligible

23  convention centers. Distributions shall begin 60 days

24  following notification of certification by the Office of

25  Tourism, Trade, and Economic Development pursuant to s.

26  288.1171. Distributions shall be used solely to encourage and

27  provide economic development for the attraction, recruitment,

28  and retention of corporate headquarters and of

29  high-technology, manufacturing, research and development,

30  entertainment, and tourism industries as designated by the

31  unit of local government by resolution of its governing body,

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 1  and to assist the eligible convention centers to attract more

 2  business and expand their offerings, including developing

 3  their own events and shows. This sub-subparagraph is repealed

 4  effective June 30, 2009.

 5         8.  All other proceeds shall remain with the General

 6  Revenue Fund.

 7         Section 2.  Section 288.1171, Florida Statutes, is

 8  created to read:

 9         288.1171  Convention centers owned by units of local

10  government; certification as owning eligible convention

11  centers; duties.--

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

13  Development shall serve as the state agency for screening

14  applicants for state funding pursuant to s. 212.20(6)(d)7.e.

15  and for certifying an applicant as owning an eligible

16  convention center.

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

18  Development shall adopt rules pursuant to ss. 120.536(1) and

19  120.54 for the receipt and processing of applications for

20  funding pursuant to s. 212.20(6)(d)7.e.

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

22  convention center" means a publicly owned facility having

23  exhibition space in excess of 60,000 square feet, the primary

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

25  shows.

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

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

28  Economic Development must determine that:

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

30  218.369, owns an eligible convention center.

31  

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 1         (b)  The convention center contains more than 60,000

 2  square feet of exhibit space.

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

 4  convention center is located has certified by resolution after

 5  a public hearing that the application serves a public purpose

 6  pursuant to subsection (7).

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

 8  is levying a tourist development tax pursuant to s. 125.0104.

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

10  Tourism, Trade, and Economic Development shall notify the

11  executive director of the Department of Revenue of such

12  certification by means of an official letter granting

13  certification. The Department of Revenue shall not begin

14  distributing proceeds until 60 days following notice by the

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

16  of local government has been certified as owning an eligible

17  convention center.

18         (6)  An applicant previously certified under any

19  provision of this section who has received proceeds under such

20  certification is ineligible for an additional certification.

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

22  eligible convention center may use proceeds provided pursuant

23  to s. 212.20(6)(d)7.e. solely to encourage and provide

24  economic development for the attraction, recruitment, and

25  retention of corporate headquarters and of high-technology,

26  manufacturing, research and development, entertainment, and

27  tourism industries, as designated by the unit of local

28  government by resolution of its governing body, and to assist

29  the eligible convention centers to attract more business and

30  expand their offerings, including developing their own events

31  and shows.

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 1         (8)  The Auditor General may conduct an audit, as

 2  provided in s. 11.45, to verify that the distributions under

 3  this section have been expended as required by this section.

 4  If the Auditor General determines that the distributions have

 5  not been expended as required by this section, the Auditor

 6  General may pursue recovery of such proceeds, and the unit of

 7  local government shall be further barred from receiving future

 8  distributions of proceeds authorized in this section.

 9         (9)  Failure to use the proceeds as provided in this

10  section shall be grounds for revoking certification.

11         (10)  This section is repealed June 30, 2009.

12         Section 3.  This act shall take effect July 1, 2006.

13  

14            *****************************************

15                          SENATE SUMMARY

16    Provides for the distribution of a portion of revenues
      from the tax on sales, use, and other transactions to
17    certain units of local government which own eligible
      convention centers. Provides limitations on the amounts
18    of such distributions. Requires the Department of Revenue
      to prescribe forms to be filed by the convention centers.
19    Provides for the Office of Tourism, Trade, and Economic
      Development to certify units of local government that own
20    eligible convention centers. Provides for rulemaking.
      Defines the term "eligible convention center." Provides
21    requirements for certification. Provides for the uses of
      proceeds distributed under the act. Provides for the
22    Auditor General to conduct audits to verify that
      distributions under this act have been expended as
23    required. Provides for the revocation of certification in
      certain circumstances.
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