Senate Bill sb2124c1

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    Florida Senate - 2007                           CS for SB 2124

    By the Committee on Community Affairs; and Senators
    Constantine and Bullard




    578-2533-07

  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; providing

10         for future repeal; creating s. 288.1172, F.S.;

11         providing for certification of units of local

12         government owning eligible convention centers

13         by the Office of Tourism, Trade, and Economic

14         Development; requiring the office to adopt

15         specified rules; providing a definition;

16         providing requirements for certification;

17         providing for use of proceeds distributed to

18         units of local government under the act;

19         providing for revocation of certification;

20         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 - 2007                           CS for SB 2124
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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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    Florida Senate - 2007                           CS for SB 2124
    578-2533-07




 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, a no municipality may not shall receive less than

12  the amount due from the Revenue Sharing Trust Fund for

13  Municipalities and the former Municipal Financial Assistance

14  Trust Fund in state fiscal year 1999-2000. If the total

15  proceeds to be distributed are less than the amount received

16  in combination from the Revenue Sharing Trust Fund for

17  Municipalities and the former Municipal Financial Assistance

18  Trust Fund in state fiscal year 1999-2000, each municipality

19  shall receive an amount proportionate to the amount it was due

20  in state fiscal year 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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    Florida Senate - 2007                           CS for SB 2124
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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

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

13  prior to July 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 $416,670 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 does not shall be

27  construed to allow an applicant certified pursuant to s.

28  288.1162 to receive more in distributions than actually

29  expended by the applicant for the public purposes provided for

30  in s. 288.1162(6).

31  

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    Florida Senate - 2007                           CS for SB 2124
    578-2533-07




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

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

 3  Revenue that an applicant has been certified as the

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

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

 6  up to 300 months, to the applicant.

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

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

 9  Revenue that the applicant has been certified as the

10  International Game Fish Association World Center facility

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

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

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

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

15  $999,996 shall be made, after certification and before July 1,

16  2000.

17         e.  The department shall distribute monthly to units of

18  local government which have been certified as owning eligible

19  convention centers pursuant to s. 288.1172 an amount equal to

20  50 percent of the proceeds defined in this subparagraph which

21  are received and collected in the previous month by the

22  department under this chapter and are generated by such

23  eligible convention centers and remitted on the sales and use

24  tax returns of eligible convention centers. As used in this

25  sub-subparagraph, the term "proceeds" is further defined as

26  all applicable sales taxes collected by an eligible convention

27  center for standard services provided by center staff to users

28  of the center, including parking, admission, ticket sales,

29  food services, utilities services, space rentals, equipment

30  rentals, security services, decorating services, business

31  services, advertising services, communications services,

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    Florida Senate - 2007                           CS for SB 2124
    578-2533-07




 1  exhibit supply sales and rentals, locksmith services, and

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

 3  unit of local government may not exceed $1 million per state

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

 5  local government may not exceed $3 million per state fiscal

 6  year, and such distribution shall be limited exclusively to

 7  the taxes collected and remitted under this chapter. If

 8  collections and remittances of eligible convention centers

 9  will exceed the $3 million maximum amount authorized for

10  distribution, the department shall distribute proceeds to each

11  eligible unit of local government using an apportionment

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

13  eligible convention center during the immediate preceding

14  state fiscal year and the denominator of which is the total

15  amount remitted by all eligible convention centers during the

16  immediate preceding state fiscal year. The apportionment

17  factor for each eligible convention center shall be applied to

18  the $3 million maximum amount authorized for distribution in

19  order to determine the amount that shall be distributed to

20  each local government unit. The department shall prescribe

21  forms required to be filed with the department by eligible

22  convention centers. Distributions shall begin 60 days

23  following notification of certification by the Office of

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

25  288.1172. Distributions shall be used solely to fund the

26  installation of renewable energy technologies, as defined in

27  s. 377.803, for use at the qualifying convention center, and

28  to encourage and provide economic development for the

29  attraction, recruitment, and retention of corporate

30  headquarters and of high-technology, manufacturing, research

31  and development, entertainment, and tourism industries, as

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    Florida Senate - 2007                           CS for SB 2124
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 1  designated by the unit of local government by resolution of

 2  its governing body, and to assist the eligible convention

 3  centers in attracting more business and expanding their

 4  offerings, including developing their own events and shows.

 5  Distributions may not be used to encourage or otherwise

 6  provide incentives or payments to existing businesses that

 7  have offices within this state for the purpose of relocating

 8  those offices to another location within this state. This

 9  sub-subparagraph is repealed on June 30, 2010.

10         8.  All other proceeds shall remain with the General

11  Revenue Fund.

12         Section 2.  Section 288.1172, Florida Statutes, is

13  created to read:

14         288.1172  Convention centers owned by units of local

15  government; certification as owning eligible convention

16  centers; duties.--

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

18  Development shall serve as the state agency for screening

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

20  and for certifying an applicant as owning an eligible

21  convention center.

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

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

24  120.54 for the receipt and processing of applications for

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

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

27  convention center" means a publicly owned facility having

28  exhibition space in excess of 30,000 square feet, the primary

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

30  shows.

31  

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    Florida Senate - 2007                           CS for SB 2124
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 1         (4)  Before certifying an applicant as owning an

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

 3  Economic Development must determine that:

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

 5  218.369, owns an eligible convention center.

 6         (b)  The convention center contains more than 30,000

 7  square feet of exhibit space.

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

 9  convention center is located has certified by resolution after

10  a public hearing that the application serves a public purpose

11  pursuant to subsection (7).

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

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

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

15  Tourism, Trade, and Economic Development shall notify the

16  executive director of the Department of Revenue of such

17  certification by means of an official letter granting

18  certification. The Department of Revenue shall not begin

19  distributing proceeds until 60 days following notice by the

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

21  of local government has been certified as owning an eligible

22  convention center.

23         (6)  An applicant that has previously been certified

24  under any provision of this section and that received proceeds

25  under such certification is ineligible for an additional

26  certification.

27         (7)  A unit of local government which is certified as

28  owning an eligible convention center may use proceeds provided

29  pursuant to s. 212.20(6)(d)7.e. for any of the following

30  purposes or combination thereof:

31  

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    Florida Senate - 2007                           CS for SB 2124
    578-2533-07




 1         (a)  To fund the installation of renewable energy

 2  technologies, as defined in s. 377.803, for use at the

 3  qualifying convention center;

 4         (b)  To encourage and provide economic development for

 5  attracting, recruiting, and retaining corporate headquarters

 6  and high-technology, manufacturing, research and development,

 7  entertainment, and tourism industries, as designated by the

 8  unit of local government by resolution of its governing body;

 9  or

10         (c)  To assist the eligible convention center in

11  attracting more business and expanding its offerings,

12  including developing its own events and shows.

13  

14  Distributions may not be used to encourage or otherwise

15  provide incentives or payments to existing businesses with

16  offices within this state to relocate those offices to another

17  location within this state.

18         (8)  Failure to use the proceeds as provided in this

19  section is grounds for revoking certification.

20         (9)  This section is repealed on June 30, 2010.

21         Section 3.  This act shall take effect July 1, 2007.

22  

23          STATEMENT OF SUBSTANTIAL CHANGES CONTAINED IN
                       COMMITTEE SUBSTITUTE FOR
24                         Senate Bill 2124

25                                 

26  The committee substitute clarifies that excess collections and
    remittances from eligible convention centers shall be
27  distributed by the Department of Revenue to each eligible unit
    of local government using an apportionment factor, the
28  numerator of which is the amount remitted by an eligible
    convention center during the immediate previous fiscal year,
29  and the denominator of which is the total amount remitted by
    all eligible convention centers during the previous fiscal
30  year. The committee substitute clarifies that distributions to
    eligible convention centers may also be used to fund the
31  installation of certain renewable energy technologies for use
    at the qualifying convention center.
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