HB 361

1
A bill to be entitled
2An act relating to motorsports entertainment complexes;
3amending s. 212.20, F.S.; providing for distribution of a
4portion of revenues from the tax on sales, use, and other
5transactions to a certified motorsports entertainment
6complex; providing a limit on such distributions; creating
7s. 288.1170, F.S.; providing definitions; providing for
8certification of motorsports entertainment complexes by
9the Office of Tourism, Trade, and Economic Development of
10the Executive Office of the Governor; providing
11requirements for certification; requiring specified
12notice; providing for use of the funds distributed to a
13motorsports entertainment complex; authorizing audits by
14the Department of Revenue; providing an effective date.
15
16     WHEREAS, the Legislature finds that Florida has long been
17the preeminent site in the nation for motorsports racing, and
18     WHEREAS, motorsports racing has been a major tourist
19attraction in Florida for nearly 100 years, and
20     WHEREAS, motorsports entertainment is the fastest growing
21sports industry in the United States, and
22     WHEREAS, as a result of the increased popularity of
23motorsports racing, many new motorsports facilities are being
24constructed in other states, and
25     WHEREAS, to continue to attract spectators to sanctioned
26championship motorsports events, the owner or operator of a
27motorsports entertainment complex must build additional
28spectator seating and renovate existing facilities to improve
29the amenities available to spectators, and
30     WHEREAS, attracting, retaining, and providing favorable
31conditions for conducting sanctioned championship motorsports
32events and the continued development of the motorsports
33entertainment industry in Florida provides skilled-employment
34opportunities for citizens of this state, and
35     WHEREAS, continued development and improvement of Florida's
36motorsports entertainment industry is vital to Florida's tourism
37industry and to state revenues, and
38     WHEREAS, the motorsports entertainment industry is a major
39contributor to Florida's economic development because of the
40technology and service businesses that provide goods and
41services to the industry, and
42     WHEREAS, the provisions of this act are necessary to
43protect and strengthen Florida's motorsports entertainment
44industry, and the purposes to be achieved by this act are
45predominately public purposes vital to the protection and
46improvement of Florida's economy, NOW, THEREFORE,
47
48Be It Enacted by the Legislature of the State of Florida:
49
50     Section 1.  Paragraph (d) of subsection (6) of section
51212.20, Florida Statutes, is amended to read:
52     212.20  Funds collected, disposition; additional powers of
53department; operational expense; refund of taxes adjudicated
54unconstitutionally collected.--
55     (6)  Distribution of all proceeds under this chapter and s.
56202.18(1)(b) and (2)(b) shall be as follows:
57     (d)  The proceeds of all other taxes and fees imposed
58pursuant to this chapter or remitted pursuant to s. 202.18(1)(b)
59and (2)(b) shall be distributed as follows:
60     1.  In any fiscal year, the greater of $500 million, minus
61an amount equal to 4.6 percent of the proceeds of the taxes
62collected pursuant to chapter 201, or 5 percent of all other
63taxes and fees imposed pursuant to this chapter or remitted
64pursuant to s. 202.18(1)(b) and (2)(b) shall be deposited in
65monthly installments into the General Revenue Fund.
66     2.  Two-tenths of one percent shall be transferred to the
67Ecosystem Management and Restoration Trust Fund to be used for
68water quality improvement and water restoration projects.
69     3.  After the distribution under subparagraphs 1. and 2.,
708.814 percent of the amount remitted by a sales tax dealer
71located within a participating county pursuant to s. 218.61
72shall be transferred into the Local Government Half-cent Sales
73Tax Clearing Trust Fund. Beginning July 1, 2003, the amount to
74be transferred pursuant to this subparagraph to the Local
75Government Half-cent Sales Tax Clearing Trust Fund shall be
76reduced by 0.1 percent, and the department shall distribute this
77amount to the Public Employees Relations Commission Trust Fund
78less $5,000 each month, which shall be added to the amount
79calculated in subparagraph 4. and distributed accordingly.
80     4.  After the distribution under subparagraphs 1., 2., and
813., 0.095 percent shall be transferred to the Local Government
82Half-cent Sales Tax Clearing Trust Fund and distributed pursuant
83to s. 218.65.
84     5.  After the distributions under subparagraphs 1., 2., 3.,
85and 4., 2.0440 percent of the available proceeds pursuant to
86this paragraph shall be transferred monthly to the Revenue
87Sharing Trust Fund for Counties pursuant to s. 218.215.
88     6.  After the distributions under subparagraphs 1., 2., 3.,
89and 4., 1.3409 percent of the available proceeds pursuant to
90this paragraph shall be transferred monthly to the Revenue
91Sharing Trust Fund for Municipalities pursuant to s. 218.215. If
92the total revenue to be distributed pursuant to this
93subparagraph is at least as great as the amount due from the
94Revenue Sharing Trust Fund for Municipalities and the former
95Municipal Financial Assistance Trust Fund in state fiscal year
961999-2000, no municipality shall receive less than the amount
97due from the Revenue Sharing Trust Fund for Municipalities and
98the former Municipal Financial Assistance Trust Fund in state
99fiscal year 1999-2000. If the total proceeds to be distributed
100are less than the amount received in combination from the
101Revenue Sharing Trust Fund for Municipalities and the former
102Municipal Financial Assistance Trust Fund in state fiscal year
1031999-2000, each municipality shall receive an amount
104proportionate to the amount it was due in state fiscal year
1051999-2000.
106     7.  Of the remaining proceeds:
107     a.  In each fiscal year, the sum of $29,915,500 shall be
108divided into as many equal parts as there are counties in the
109state, and one part shall be distributed to each county. The
110distribution among the several counties shall begin each fiscal
111year on or before January 5th and shall continue monthly for a
112total of 4 months. If a local or special law required that any
113moneys accruing to a county in fiscal year 1999-2000 under the
114then-existing provisions of s. 550.135 be paid directly to the
115district school board, special district, or a municipal
116government, such payment shall continue until such time that the
117local or special law is amended or repealed. The state covenants
118with holders of bonds or other instruments of indebtedness
119issued by local governments, special districts, or district
120school boards prior to July 1, 2000, that it is not the intent
121of this subparagraph to adversely affect the rights of those
122holders or relieve local governments, special districts, or
123district school boards of the duty to meet their obligations as
124a result of previous pledges or assignments or trusts entered
125into which obligated funds received from the distribution to
126county governments under then-existing s. 550.135. This
127distribution specifically is in lieu of funds distributed under
128s. 550.135 prior to July 1, 2000.
129     b.  The department shall distribute $166,667 monthly
130pursuant to s. 288.1162 to each applicant that has been
131certified as a "facility for a new professional sports
132franchise" or a "facility for a retained professional sports
133franchise" pursuant to s. 288.1162. Up to $41,667 shall be
134distributed monthly by the department to each applicant that has
135been certified as a "facility for a retained spring training
136franchise" pursuant to s. 288.1162; however, not more than
137$416,670 may be distributed monthly in the aggregate to all
138certified facilities for a retained spring training franchise.
139Distributions shall begin 60 days following such certification
140and shall continue for not more than 30 years. Nothing contained
141in this paragraph shall be construed to allow an applicant
142certified pursuant to s. 288.1162 to receive more in
143distributions than actually expended by the applicant for the
144public purposes provided for in s. 288.1162(6).
145     c.  Beginning 30 days after notice by the Office of
146Tourism, Trade, and Economic Development to the Department of
147Revenue that an applicant has been certified as the professional
148golf hall of fame pursuant to s. 288.1168 and is open to the
149public, $166,667 shall be distributed monthly, for up to 300
150months, to the applicant.
151     d.  Beginning 30 days after notice by the Office of
152Tourism, Trade, and Economic Development to the Department of
153Revenue that the applicant has been certified as the
154International Game Fish Association World Center facility
155pursuant to s. 288.1169, and the facility is open to the public,
156$83,333 shall be distributed monthly, for up to 168 months, to
157the applicant. This distribution is subject to reduction
158pursuant to s. 288.1169. A lump sum payment of $999,996 shall be
159made, after certification and before July 1, 2000.
160     e.  Beginning 30 days after notice by the Office of
161Tourism, Trade, and Economic Development to the Department of
162Revenue that an applicant has been certified as a motorsports
163entertainment complex pursuant to s. 288.1170 and is open to the
164public, an amount not to exceed $166,667 shall be distributed
165monthly to the applicant. However, each state fiscal year's
166total distribution made pursuant to this sub-subparagraph shall
167not exceed the difference between the state sales taxes
168collected and remitted pursuant to this chapter by the certified
169applicant in the previous calendar year and state sales taxes
170collected and remitted pursuant to this chapter by the certified
171applicant in calendar year 2000. Distributions shall continue
172for 30 years.
173     8.  All other proceeds shall remain with the General
174Revenue Fund.
175     Section 2.  Section 288.1170, Florida Statutes, is created
176to read:
177     288.1170  Motorsports entertainment complex; definitions;
178certification; duties.--
179     (1)  As used in this section:
180     (a)  "Applicant" means the owner of a motorsports
181entertainment complex.
182     (b)  "Motorsports entertainment complex" means a closed-
183course racing facility, with ancillary grounds and facilities,
184which:
185     1.  Has not fewer than 65,000 permanent seats for race
186patrons.
187     2.  Has not fewer than 7 scheduled days of motorsports
188events each calendar year.
189     3.  Has paid admissions of at least 125,000 annually.
190     4.  Serves food at the facility during sanctioned
191motorsports events.
192     5.  Engages in tourism promotion.
193     (c)  "Motorsports event" means a motorsports race and its
194ancillary activities which have been sanctioned by a sanctioning
195body.
196     (d)  "Office" means the Office of Tourism, Trade, and
197Economic Development of the Executive Office of the Governor.
198     (e)  "Owner" means a unit of local government that owns a
199motorsports entertainment complex or owns the land on which the
200motorsports entertainment complex is located.
201     (f)  "Sanctioning body" means the American Motorcyclist
202Association (AMA), Championship Auto Racing Teams (CART), Grand
203American Road Racing Association (Grand-Am), Indy Racing League
204(IRL), National Association for Stock Car Auto Racing (NASCAR),
205National Hot Rod Association (NHRA), Professional Sports Car
206Racing (PSCR), Sports Car Club of America (SCCA), United States
207Auto Club (USAC), any successor organization, or any other
208nationally recognized governing body of motorsports that
209establishes an annual schedule of motorsports events and grants
210rights to conduct such events, has established and administers
211rules and regulations governing all participants involved in
212such events and all persons conducting such events, and requires
213certain liability assurances, including insurance.
214     (g)  "Unit of local government" has the same meaning as
215provided in s. 218.369.
216     (2)  The office shall serve as the state agency for
217screening applicants for state funding pursuant to s. 212.20 and
218for certifying an applicant as a motorsports entertainment
219complex. The office shall develop and adopt rules for the
220receipt and processing of applications for funding pursuant to
221s. 212.20. The office shall make a determination regarding any
222application filed by an applicant not later than 120 days after
223the application is filed.
224     (3)  Prior to certifying an applicant as a motorsports
225entertainment complex, the office must determine that:
226     (a)  A unit of local government holds title to the land on
227which the motorsports entertainment complex is located or holds
228title to the motorsports entertainment complex.
229     (b)  Seven scheduled days of motorsports events were held
230at the motorsports entertainment complex in the most recently
231completed calendar year or 7 scheduled days of motorsports
232events are scheduled to be held at the motorsports entertainment
233complex in the calendar year that begins after the submission of
234the application. The applicant shall submit certifications from
235the appropriate officials of the relevant sanctioning bodies
236that such sanctioned motorsports events were or will be held at
237the motorsports entertainment complex.
238     (c)  The applicant can provide a certification by a
239nationally recognized, independent certified public accounting
240firm that the motorsports entertainment complex will attract, or
241in the most recently completed calendar year has attracted, paid
242attendance of at least 125,000 annually.
243     (d)  The applicant can provide a certification by a
244nationally recognized, independent certified public accounting
245firm that the amount of the revenues generated by the taxes
246imposed under chapter 212 with respect to the use and operation
247of the motorsports entertainment complex will equal or exceed $1
248million annually.
249     (e)  The municipality in which the motorsports
250entertainment complex is located, or the county if the
251motorsports entertainment complex is located in an
252unincorporated area, has certified by resolution after a public
253hearing that the application serves a public purpose.
254     (f)  The motorsports entertainment complex is located in a
255county defined in s. 125.011(1).
256     (4)  Upon determining that an applicant meets the
257requirements of subsection (3), the office shall certify the
258applicant as a motorsports entertainment complex and shall
259notify the applicant and the executive director of the
260Department of Revenue of such certification by means of an
261official letter granting certification. If the applicant fails
262to meet the certification requirements of subsection (3), the
263office shall notify the applicant not later than 10 days
264following such determination.
265     (5)  No motorsports entertainment complex that has been
266previously certified under this section and has received funding
267under such certification shall be eligible for any additional
268certification.
269     (6)  An applicant certified as a motorsports entertainment
270complex may use funds provided pursuant to s. 212.20 only for
271the following public purposes:
272     (a)  Paying for the construction, reconstruction,
273expansion, or renovation of a motorsports entertainment complex.
274     (b)  Paying debt service reserve funds, arbitrage rebate
275obligations, or other amounts payable with respect to bonds
276issued for the construction, reconstruction, expansion, or
277renovation of the motorsports entertainment complex or for the
278reimbursement of such costs or the refinancing of bonds issued
279for such purposes.
280     (c)  Paying for construction, reconstruction, expansion, or
281renovation of transportation or other infrastructure
282improvements related to, necessary for, or appurtenant to the
283motorsports entertainment complex, including, without
284limitation, paying debt service reserve funds, arbitrage rebate
285obligations, or other amounts payable with respect to bonds
286issued for the construction, reconstruction, expansion, or
287renovation of such transportation or other infrastructure
288improvements, and for the reimbursement of such costs or the
289refinancing of bonds issued for such purposes.
290     (d)  Paying for programs of advertising and promotion of or
291related to the motorsports entertainment complex or the
292municipality in which the motorsports entertainment complex is
293located, or the county if the motorsports entertainment complex
294is located in an unincorporated area, provided such programs of
295advertising and promotion are designed to increase paid
296attendance at the motorsports entertainment complex or increase
297tourism in or promote the economic development of the community
298in which the motorsports entertainment complex is located.
299     (7)  The Department of Revenue may audit, as provided in s.
300213.34, to verify that the distributions pursuant to this
301section have been expended as required in this section. All
302other provisions of chapter 213 shall apply to such audits. If
303the Department of Revenue determines that the distributions
304pursuant to certification under this section have not been
305expended as required by this section, the department may pursue
306recovery of such funds pursuant to the laws and rules governing
307the assessment of taxes.
308     Section 3.  This act shall take effect July 1, 2007.


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