Senate Bill sb0664

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    Florida Senate - 2007                                   SB 664

    By Senator Diaz de la Portilla





    36-564-07

  1                      A bill to be entitled

  2         An act relating to commercial development and

  3         capital improvements; amending s. 212.20, F.S.;

  4         providing for distribution of a portion of

  5         revenues from the tax on sales, use, and other

  6         transactions to a motorsports entertainment

  7         complex; providing a limit on such

  8         distributions; amending s. 288.1171, F.S.,

  9         relating to motorsports entertainment

10         complexes; redefining the terms "motorsports

11         entertainment complex" and "motorsports event";

12         providing that funding for such complexes will

13         be state funding rather than local-option

14         funding; prescribing additional requirements

15         for certification to receive funds; limiting

16         the counties in which complexes are eligible

17         for such funding; providing an effective date.

18  

19         WHEREAS, the Legislature finds that Florida has long

20  been the preeminent site in the nation for motorsports racing,

21  and

22         WHEREAS, motorsports racing has been a major tourist

23  attraction in Florida for nearly 100 years, and

24         WHEREAS, motorsports entertainment is the

25  fastest-growing sports industry in the United States, and

26         WHEREAS, as a result of the increased popularity of

27  motorsports racing, many new motorsports facilities are being

28  constructed in other states, and

29         WHEREAS, to continue to attract spectators to

30  sanctioned championship motorsports events, the owner or

31  operator of a motorsports entertainment complex must build

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    Florida Senate - 2007                                   SB 664
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 1  additional spectator seating and renovate existing facilities

 2  to improve the amenities available to spectators, and

 3         WHEREAS, attracting, retaining, and providing favorable

 4  conditions for conducting sanctioned championship motorsports

 5  events and the continued development of the motorsports

 6  entertainment industry in Florida provides skilled-employment

 7  opportunities for citizens of this state, and

 8         WHEREAS, continued development and improvement of

 9  Florida's motorsports entertainment industry is vital to

10  Florida's tourism industry and to state revenues, and

11         WHEREAS, the motorsports entertainment industry is a

12  major contributor to Florida's economic development because of

13  the technology and service businesses that provide goods and

14  services to the industry, and

15         WHEREAS, the provisions of this act are necessary to

16  protect and strengthen Florida's motorsports entertainment

17  industry, and the purposes to be achieved by this act are

18  predominately public purposes vital to the protection and

19  improvement of Florida's economy, NOW, THEREFORE,

20  

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

22  

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

24  212.20, Florida Statutes, is amended to read:

25         212.20  Funds collected, disposition; additional powers

26  of department; operational expense; refund of taxes

27  adjudicated unconstitutionally collected.--

28         (6)  Distribution of all proceeds under this chapter

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

30  

31  

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    Florida Senate - 2007                                   SB 664
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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                                   SB 664
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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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    Florida Senate - 2007                                   SB 664
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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 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).

31  

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 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.  Beginning 30 days after notice by the Office of

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

19  Revenue that the applicant has been certified as a motorsports

20  entertainment complex pursuant to s. 288.1171 and is open to

21  the public, an amount not to exceed $166,667 shall be

22  distributed monthly to the applicant. However, each state

23  fiscal year's total distribution made under this

24  sub-subparagraph may not exceed the difference between the

25  state sales taxes collected and remitted under this chapter by

26  the certified applicant in the previous calendar year and

27  those collected and remitted in calendar year 2000.

28  Distributions must continue for 30 years.

29         8.  All other proceeds shall remain with the General

30  Revenue Fund.

31  

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    Florida Senate - 2007                                   SB 664
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 1         Section 2.  Paragraphs (b) and (c) of subsection (1)

 2  and subsections (2), (3), and (6) of section 288.1171, Florida

 3  Statutes, are amended to read:

 4         288.1171  Motorsports entertainment complex;

 5  definitions; certification; duties.--

 6         (1)  As used in this section, the term:

 7         (b)  "Motorsports entertainment complex" means a

 8  closed-course racing facility, with ancillary grounds and

 9  facilities, which:.

10         1.  Has not fewer than 65,000 permanent seats for race

11  patrons.

12         2.  Has not fewer than 7 scheduled days of motorsports

13  events each calendar year.

14         3.  Has paid admissions of at least 125,000 annually.

15         4.  Serves food at the facility during sanctioned

16  motorsports events.

17         5.  Engages in tourism promotion.

18         (c)  "Motorsports event" means a motorsports race and

19  its ancillary activities, which have that has been sanctioned

20  by a sanctioning body.

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

22  Development shall serve as the state agency for screening

23  applicants for state local option funding under s. 212.20 s.

24  218.64(3) and for certifying an applicant as a motorsports

25  entertainment complex. The office shall develop and adopt

26  rules for the receipt and processing of applications for

27  funding under s. 212.20 s. 218.64(3). The office shall make a

28  determination regarding any application filed by an applicant

29  not later than 120 days after the application is filed.

30         (3)  Before certifying an applicant as a motorsports

31  entertainment complex, the office must determine that:

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    Florida Senate - 2007                                   SB 664
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 1         (a)  A unit of local government holds title to the land

 2  on which the motorsports entertainment complex is located or

 3  holds title to the motorsports entertainment complex.

 4         (b)  Seven scheduled days of motorsports events were

 5  held at the motorsports entertainment complex in the most

 6  recently completed calendar year or 7 scheduled days of

 7  motorsports events are scheduled to be held at the motorsports

 8  entertainment complex in the calendar year that begins after

 9  the submission of the application. The applicant shall submit

10  certification from the appropriate officials of the relevant

11  sanctioning bodies that such sanctioned motorsports events

12  were or will be held at the motorsports entertainment complex.

13         (c)  The applicant can provide a certification by a

14  nationally recognized, independent certified public accounting

15  firm that the motorsports entertainment complex will attract,

16  or in the most recently completed calendar year has attracted,

17  paid attendance of at least 125,000 annually.

18         (d)  The applicant can provide a certification by a

19  nationally recognized, independent certified public accounting

20  firm that the amount of the revenues generated by the taxes

21  imposed under chapter 212 with respect to the use and

22  operation of the motorsports entertainment complex will equal

23  or exceed $1 million annually.

24         (e)(b)  The municipality in which the motorsports

25  entertainment complex is located, or the county if the

26  motorsports entertainment complex is located in an

27  unincorporated area, has certified by resolution after a

28  public hearing that the application serves a public purpose.

29         (f)  The motorsports entertainment complex is located

30  in a county defined in s. 125.011(1).

31  

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 1         (6)  An applicant certified as a motorsports

 2  entertainment complex may use funds provided pursuant to s.

 3  212.20 s. 218.64(3) only for the following public purposes:

 4         (a)  Paying for the construction, reconstruction,

 5  expansion, or renovation of a motorsports entertainment

 6  complex.

 7         (b)  Paying debt service reserve funds, arbitrage

 8  rebate obligations, or other amounts payable with respect to

 9  bonds issued for the construction, reconstruction, expansion,

10  or renovation of the motorsports entertainment complex or for

11  the reimbursement of such costs or the refinancing of bonds

12  issued for such purposes.

13         (c)  Paying for construction, reconstruction,

14  expansion, or renovation of transportation or other

15  infrastructure improvements related to, necessary for, or

16  appurtenant to the motorsports entertainment complex,

17  including, without limitation, paying debt service reserve

18  funds, arbitrage rebate obligations, or other amounts payable

19  with respect to bonds issued for the construction,

20  reconstruction, expansion, or renovation of such

21  transportation or other infrastructure improvements, and for

22  the reimbursement of such costs or the refinancing of bonds

23  issued for such purposes.

24         (d)  Paying for programs of advertising and promotion

25  of or related to the motorsports entertainment complex or the

26  municipality in which the motorsports entertainment complex is

27  located, or the county if the motorsports entertainment

28  complex is located in an unincorporated area, if such programs

29  of advertising and promotion are designed to increase paid

30  attendance at the motorsports entertainment complex or

31  increase tourism in or promote the economic development of the

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 1  community in which the motorsports entertainment complex is

 2  located.

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

 4  

 5            *****************************************

 6                          SENATE SUMMARY

 7    Provides for the distribution of a portion of revenues
      from the tax on sales, use, and other transactions to a
 8    motorsports entertainment complex. Deletes provisions
      allowing distributions to such complexes from
 9    local-option taxes. Revises eligibility conditions for
      such distributions, including the counties in which such
10    distributions may be made.

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