Florida Senate - 2014                              CS for SB 208
       
       
        
       By the Committee on Commerce and Tourism; and Senators Hukill,
       Thrasher, Hays, Latvala, Simpson, Simmons, and Negron
       
       
       
       
       577-00950-14                                           2014208c1
    1                        A bill to be entitled                      
    2         An act relating to motorsports entertainment
    3         complexes; amending s. 212.20, F.S.; providing for a
    4         monthly distribution of a specified amount of sales
    5         tax revenue to a complex certified as a motorsports
    6         entertainment complex by the Department of Economic
    7         Opportunity; amending s. 288.1171, F.S.; revising the
    8         definition of the term “motorsports entertainment
    9         complex”; revising requirements for the certification
   10         of a facility as a motorsports entertainment complex;
   11         specifying that the department may certify only one
   12         motorsports entertainment complex; authorizing the
   13         Auditor General to verify the expenditure of specified
   14         distributions and to notify the Department of Revenue
   15         of improperly expended funds so that it may pursue
   16         recovery; providing an effective date.
   17          
   18  Be It Enacted by the Legislature of the State of Florida:
   19  
   20         Section 1. Paragraph (d) of subsection (6) of section
   21  212.20, Florida Statutes, is amended to read:
   22         212.20 Funds collected, disposition; additional powers of
   23  department; operational expense; refund of taxes adjudicated
   24  unconstitutionally collected.—
   25         (6) Distribution of all proceeds under this chapter and s.
   26  202.18(1)(b) and (2)(b) shall be as follows:
   27         (d) The proceeds of all other taxes and fees imposed
   28  pursuant to this chapter or remitted pursuant to s. 202.18(1)(b)
   29  and (2)(b) shall be distributed as follows:
   30         1. In any fiscal year, the greater of $500 million, minus
   31  an amount equal to 4.6 percent of the proceeds of the taxes
   32  collected pursuant to chapter 201, or 5.2 percent of all other
   33  taxes and fees imposed pursuant to this chapter or remitted
   34  pursuant to s. 202.18(1)(b) and (2)(b) shall be deposited in
   35  monthly installments into the General Revenue Fund.
   36         2. After the distribution under subparagraph 1., 8.814
   37  percent of the amount remitted by a sales tax dealer located
   38  within a participating county pursuant to s. 218.61 shall be
   39  transferred into the Local Government Half-cent Sales Tax
   40  Clearing Trust Fund. Beginning July 1, 2003, the amount to be
   41  transferred shall be reduced by 0.1 percent, and the department
   42  shall distribute this amount to the Public Employees Relations
   43  Commission Trust Fund less $5,000 each month, which shall be
   44  added to the amount calculated in subparagraph 3. and
   45  distributed accordingly.
   46         3. After the distribution under subparagraphs 1. and 2.,
   47  0.095 percent shall be transferred to the Local Government Half
   48  cent Sales Tax Clearing Trust Fund and distributed pursuant to
   49  s. 218.65.
   50         4. After the distributions under subparagraphs 1., 2., and
   51  3., 2.0440 percent of the available proceeds shall be
   52  transferred monthly to the Revenue Sharing Trust Fund for
   53  Counties pursuant to s. 218.215.
   54         5. After the distributions under subparagraphs 1., 2., and
   55  3., 1.3409 percent of the available proceeds shall be
   56  transferred monthly to the Revenue Sharing Trust Fund for
   57  Municipalities pursuant to s. 218.215. If the total revenue to
   58  be distributed pursuant to this subparagraph is at least as
   59  great as the amount due from the Revenue Sharing Trust Fund for
   60  Municipalities and the former Municipal Financial Assistance
   61  Trust Fund in state fiscal year 1999-2000, no municipality shall
   62  receive less than the amount due from the Revenue Sharing Trust
   63  Fund for Municipalities and the former Municipal Financial
   64  Assistance Trust Fund in state fiscal year 1999-2000. If the
   65  total proceeds to be distributed are less than the amount
   66  received in combination from the Revenue Sharing Trust Fund for
   67  Municipalities and the former Municipal Financial Assistance
   68  Trust Fund in state fiscal year 1999-2000, each municipality
   69  shall receive an amount proportionate to the amount it was due
   70  in state fiscal year 1999-2000.
   71         6. Of the remaining proceeds:
   72         a. In each fiscal year, the sum of $29,915,500 shall be
   73  divided into as many equal parts as there are counties in the
   74  state, and one part shall be distributed to each county. The
   75  distribution among the several counties must begin each fiscal
   76  year on or before January 5th and continue monthly for a total
   77  of 4 months. If a local or special law required that any moneys
   78  accruing to a county in fiscal year 1999-2000 under the then
   79  existing provisions of s. 550.135 be paid directly to the
   80  district school board, special district, or a municipal
   81  government, such payment must continue until the local or
   82  special law is amended or repealed. The state covenants with
   83  holders of bonds or other instruments of indebtedness issued by
   84  local governments, special districts, or district school boards
   85  before July 1, 2000, that it is not the intent of this
   86  subparagraph to adversely affect the rights of those holders or
   87  relieve local governments, special districts, or district school
   88  boards of the duty to meet their obligations as a result of
   89  previous pledges or assignments or trusts entered into which
   90  obligated funds received from the distribution to county
   91  governments under then-existing s. 550.135. This distribution
   92  specifically is in lieu of funds distributed under s. 550.135
   93  before July 1, 2000.
   94         b. The department shall distribute $166,667 monthly
   95  pursuant to s. 288.1162 to each applicant certified as a
   96  facility for a new or retained professional sports franchise
   97  pursuant to s. 288.1162. Up to $41,667 shall be distributed
   98  monthly by the department to each certified applicant as defined
   99  in s. 288.11621 for a facility for a spring training franchise.
  100  However, not more than $416,670 may be distributed monthly in
  101  the aggregate to all certified applicants for facilities for
  102  spring training franchises. The department shall also distribute
  103  $166,667 monthly to an applicant certified as a motorsports
  104  entertainment complex under s. 288.1171. Distributions begin 60
  105  days after such certification and continue for not more than 30
  106  years, except as otherwise provided in s. 288.11621. A certified
  107  applicant identified in this sub-subparagraph may not receive
  108  more in distributions than expended by the applicant for the
  109  public purposes provided for under in s. 288.1162(5), or s.
  110  288.11621(3), or s. 288.1171(6).
  111         c. Beginning 30 days after notice by the Department of
  112  Economic Opportunity to the Department of Revenue that an
  113  applicant has been certified as the professional golf hall of
  114  fame pursuant to s. 288.1168 and is open to the public, $166,667
  115  shall be distributed monthly, for up to 300 months, to the
  116  applicant.
  117         d. Beginning 30 days after notice by the Department of
  118  Economic Opportunity to the Department of Revenue that the
  119  applicant has been certified as the International Game Fish
  120  Association World Center facility pursuant to s. 288.1169, and
  121  the facility is open to the public, $83,333 shall be distributed
  122  monthly, for up to 168 months, to the applicant. This
  123  distribution is subject to reduction pursuant to s. 288.1169. A
  124  lump sum payment of $999,996 shall be made, after certification
  125  and before July 1, 2000.
  126         e. The department shall distribute up to $55,555 monthly to
  127  each certified applicant as defined in s. 288.11631 for a
  128  facility used by a single spring training franchise, or up to
  129  $111,110 monthly to each certified applicant as defined in s.
  130  288.11631 for a facility used by more than one spring training
  131  franchise. Monthly distributions begin 60 days after such
  132  certification or July 1, 2016, whichever is later, and continue
  133  for not more than 30 years, except as otherwise provided in s.
  134  288.11631. A certified applicant identified in this sub
  135  subparagraph may not receive more in distributions than expended
  136  by the applicant for the public purposes provided in s.
  137  288.11631(3).
  138         7. All other proceeds must remain in the General Revenue
  139  Fund.
  140         Section 2. Section 288.1171, Florida Statutes, is amended
  141  to read:
  142         288.1171 Motorsports entertainment complex; definitions;
  143  certification; duties.—
  144         (1) As used in this section, the term:
  145         (a) “Applicant” means the owner of a motorsports
  146  entertainment complex.
  147         (b) “Motorsports entertainment complex” means a closed
  148  course racing facility that has at least 50,000 fixed seats.
  149         (c) “Motorsports event” means a motorsports race that has
  150  been sanctioned by a sanctioning body.
  151         (d) “Owner” means a unit of local government which owns a
  152  motorsports entertainment complex or owns the land on which the
  153  motorsports entertainment complex is located.
  154         (e) “Sanctioning body” means the American Motorcycle
  155  Association (AMA), Championship Auto Racing Teams (CART), Grand
  156  American Road Racing Association (Grand Am), Indy Racing League
  157  (IRL), National Association for Stock Car Auto Racing (NASCAR),
  158  National Hot Rod Association (NHRA), Professional Sportscar
  159  Racing (PSR), Sports Car Club of America (SCCA), United States
  160  Auto Club (USAC), or any successor organization, or any other
  161  nationally recognized governing body of motorsports which
  162  establishes an annual schedule of motorsports events and grants
  163  rights to conduct such events, has established and administers
  164  rules and regulations governing all participants involved in
  165  such events and all persons conducting such events, and requires
  166  certain liability assurances, including insurance.
  167         (f) “Unit of local government” has the meaning ascribed in
  168  s. 218.369.
  169         (2)  The department shall serve as the state agency for
  170  screening applicants for funding under s. 212.20, for local
  171  option funding under s. 218.64(3), and for certifying an
  172  applicant as a motorsports entertainment complex. The department
  173  shall develop and adopt rules for the receipt and processing of
  174  applications for funding under ss. 212.20 and s. 218.64(3). The
  175  department shall make a determination regarding any application
  176  filed by an applicant within not later than 120 days after the
  177  application is filed.
  178         (3) Before certifying an applicant as a motorsports
  179  entertainment complex, the department must determine that:
  180         (a) A unit of local government holds title to the land on
  181  which the motorsports entertainment complex is located or holds
  182  title to the motorsports entertainment complex.
  183         (b) The municipality in which the motorsports entertainment
  184  complex is located, or the county if the motorsports
  185  entertainment complex is located in an unincorporated area, has
  186  certified by resolution after a public hearing that the
  187  application serves a public purpose.
  188         (c)The applicant has a verified copy of the approval of a
  189  sanctioning body stating that motorsport events are sanctioned
  190  to occur at the applicant’s complex.
  191         (d)The applicant has projections, verified by the
  192  department, which demonstrate that the motorsports entertainment
  193  complex will annually attract paid attendance of more than
  194  100,000.
  195         (e)The applicant has an independent analysis or study,
  196  verified by the department, which demonstrates that the amount
  197  of revenues generated by the taxes imposed under chapter 212
  198  with respect to the use and operation of the motorsports
  199  entertainment complex will annually equal or exceed $2 million.
  200         (f)The applicant has demonstrated that it has provided, is
  201  capable of providing, or has financial or other commitments to
  202  provide more than one-half of the costs incurred or related to
  203  the improvement and development of the complex.
  204         (g)The total cost of construction, reconstruction,
  205  expansion, or renovation of the complex exceeds $250 million.
  206         (4) Upon determining that an applicant meets the
  207  requirements of subsection (3), the department shall notify the
  208  applicant and the executive director of the Department of
  209  Revenue of such certification by means of an official letter
  210  granting certification. If the applicant fails to meet the
  211  certification requirements of subsection (3), the department
  212  shall notify the applicant within not later than 10 days
  213  following such determination.
  214         (5) A motorsports entertainment complex that has been
  215  previously certified under this section and has received funding
  216  under such certification is ineligible for any additional
  217  certification.
  218         (6) An applicant certified as a motorsports entertainment
  219  complex may use funds provided pursuant to s. 218.64(3) or s.
  220  212.20 only for the following public purposes:
  221         (a) Paying for the construction, reconstruction, expansion,
  222  or renovation of a motorsports entertainment complex.
  223         (b) Paying debt service reserve funds, arbitrage rebate
  224  obligations, or other amounts relating payable with respect to
  225  bonds issued for the construction, reconstruction, expansion, or
  226  renovation of the motorsports entertainment complex or for the
  227  reimbursement of such costs or the refinancing of bonds issued
  228  for such purposes.
  229         (c) Paying for construction, reconstruction, expansion, or
  230  renovation of transportation or other infrastructure
  231  improvements related to, necessary for, or appurtenant to the
  232  motorsports entertainment complex, including, without
  233  limitation, paying debt service reserve funds, arbitrage rebate
  234  obligations, or other amounts relating payable with respect to
  235  bonds issued for the construction, reconstruction, expansion, or
  236  renovation of such transportation or other infrastructure
  237  improvements, and for the reimbursement of such costs or the
  238  refinancing of bonds issued for such purposes.
  239         (d) Paying for programs of advertising and promotion of or
  240  related to the motorsports entertainment complex or the
  241  municipality in which the motorsports entertainment complex is
  242  located, or the county if the motorsports entertainment complex
  243  is located in an unincorporated area, if such programs of
  244  advertising and promotion are designed to increase paid
  245  attendance at the motorsports entertainment complex or increase
  246  tourism in or promote the economic development of the community
  247  in which the motorsports entertainment complex is located.
  248         (7) The department may certify only one applicant as a
  249  motorsports entertainment complex. The approved applicant may
  250  not seek funding under s. 218.64(3) while receiving funding
  251  under s. 212.20.
  252         (8)(7)The Department of Revenue may audit, As provided in
  253  s. 11.45 213.34, the Auditor General may conduct an audit to
  254  verify that the distributions pursuant to this section have been
  255  expended as required in this section. Such information is
  256  subject to the confidentiality requirements of chapter 213. If
  257  the Auditor General Department of Revenue determines that the
  258  distributions pursuant to certification under this section have
  259  not been expended as required by this section, the Auditor
  260  General shall notify the Department of Revenue, which it may
  261  pursue recovery of such funds pursuant to the laws and rules
  262  governing the assessment of taxes.
  263         Section 3. This act shall take effect July 1, 2014.