House Bill 1913

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    Florida House of Representatives - 1999                HB 1913

        By Representative Melvin






  1                      A bill to be entitled

  2         An act relating to revenue sharing; amending

  3         ss. 218.21, 218.215, 218.23, 218.245, 218.25,

  4         and 218.26, F.S.; renaming the Revenue Sharing

  5         Trust Fund for Counties as the Revenue Sharing

  6         Trust Fund for Counties and Municipalities and

  7         providing for deposit of revenue designated for

  8         revenue sharing therein; terminating the

  9         Revenue Sharing Trust Fund for Municipalities

10         and transferring the revenues therein to the

11         Revenue Sharing Trust Fund for Counties and

12         Municipalities; providing that the

13         apportionment factor for distribution of

14         revenue sharing funds to eligible counties and

15         municipalities shall be based solely on

16         population; amending s. 199.292, F.S., relating

17         to disposition of intangible personal property

18         taxes, s. 206.605, F.S., relating to

19         disposition of the municipal tax on motor fuel,

20         s. 206.879, F.S., relating to disposition of

21         the state alternative fuel fees, and s. 210.20,

22         F.S., relating to disposition of cigarette

23         taxes; providing for deposit of proceeds

24         designated for revenue sharing under said

25         sections in the Revenue Sharing Trust Fund for

26         Counties and Municipalities; providing an

27         effective date.

28

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

30

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  1         Section 1.  Subsections (5), (6), (7), and (10) of

  2  section 218.21, Florida Statutes, are amended to read:

  3         218.21  Definitions.--As used in this part, the

  4  following words and terms shall have the meanings ascribed

  5  them in this section, except where the context clearly

  6  indicates a different meaning:

  7         (5)  "Entitlement" means the amount of revenue which

  8  would be shared with an eligible unit of local government if

  9  the distribution from the trust fund funds were based solely

10  on the formula computation.

11         (6)  "Guaranteed entitlement" means the amount of

12  revenue which must be shared with an eligible unit of local

13  government so that:

14         (a)  No eligible county shall receive less funds from

15  the Revenue Sharing Trust Fund for Counties and Municipalities

16  in any fiscal year than the amount received in the aggregate

17  from the state in fiscal year 1971-1972 under the provisions

18  of the then-existing s. 210.20(2)(c), tax on cigarettes; s.

19  323.16(4), road tax; and s. 199.292(4), tax on intangible

20  personal property.

21         (b)  No eligible municipality shall receive less funds

22  from the Revenue Sharing Trust Fund for Counties and

23  Municipalities in any fiscal year than the aggregate amount it

24  received from the state in fiscal year 1971-1972 under the

25  provisions of the then-existing s. 210.20(2)(a), tax on

26  cigarettes; s. 323.16(3), road tax; and s. 206.605, tax on

27  motor fuel; except that for the 1993-1994 fiscal year, any

28  government exercising municipal powers pursuant to s. 6(f),

29  Art. VIII of the State Constitution shall not receive less

30  funds from any such revenue sharing trust fund than the

31  aggregate amount it received from the state in the preceding

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  1  state fiscal year under the provisions of this part, plus a 7

  2  percent increase in such amount.  Effective for in the

  3  1999-2000 1994-1995 fiscal year and thereafter, any government

  4  exercising municipal powers under s. 6(f), Art. VIII of the

  5  State Constitution may not receive less than the aggregate

  6  amount it received from the Revenue Sharing Trust Fund for

  7  Municipalities in the preceding fiscal year, plus a percentage

  8  increase in such amount equal to the percentage increase of

  9  the Revenue Sharing Trust Fund for Municipalities for the

10  preceding fiscal year.  Thereafter, any such government may

11  not receive less than the aggregate amount it received from

12  the Revenue Sharing Trust Fund for Counties and Municipalities

13  in the preceding fiscal year, plus a percentage increase in

14  such amount equal to the percentage increase of the Revenue

15  Sharing Trust Fund for Counties and Municipalities for the

16  preceding fiscal year.

17         (7)  "Minimum entitlement" means the amount of revenue,

18  as certified by a unit of local government and determined by

19  the department, which must be shared with a unit of local

20  government so that such unit will receive the amount of

21  revenue necessary to meet its obligations as a result of

22  pledges or assignments or trusts entered into which obligated

23  funds received from revenue sources or proceeds which by terms

24  of this act shall henceforth be distributed out of the revenue

25  sharing trust fund funds.

26         (10)  "Second guaranteed entitlement for counties"

27  means the amount of revenue received in the aggregate by an

28  eligible county in fiscal year 1981-1982 under the provisions

29  of the then-existing s. 210.20(2)(a), tax on cigarettes, and

30  s. 199.292(4), tax on intangible personal property, less the

31  guaranteed entitlement.  For any fiscal year, each eligible

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  1  county shall be entitled to receive the second guaranteed

  2  entitlement for counties from the Revenue Sharing Trust Fund

  3  for Counties and Municipalities.  The second guaranteed

  4  entitlement for counties shall be deemed separate and apart

  5  from the guaranteed entitlement and shall not be deemed to be

  6  a part of the guaranteed entitlement for purposes of any

  7  indenture, contract, or pledge to holders of obligations

  8  issued by any county.

  9         Section 2.  Section 218.215, Florida Statutes, is

10  amended to read:

11         218.215  Revenue sharing trust fund funds; creation and

12  distribution.--

13         (1)  The Revenue Sharing Trust Fund for Counties and

14  Municipalities is hereby created.  All revenue designated for

15  deposit in such fund shall be deposited by the appropriate

16  agency. The distribution to the several counties and

17  municipalities shall be made monthly as provided in ss. 218.23

18  and 218.26.

19         (2)  The Revenue Sharing Trust Fund for Municipalities

20  is hereby created. All revenue designated for deposit in such

21  fund shall be deposited by the appropriate agency.  The

22  distribution to the several municipalities shall be made

23  monthly as provided in ss. 218.23 and 218.26.

24         Section 3.  Paragraphs (a) and (e) of subsection (2) of

25  section 218.23, Florida Statutes, are amended to read:

26         218.23  Revenue sharing with units of local

27  government.--

28         (2)  The distribution to a unit of local government

29  under this part is determined by the following formula:

30         (a)  First, the entitlement of an eligible unit of

31  local government shall be computed on the basis of the

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  1  apportionment factor provided in s. 218.245, which shall be

  2  applied for all eligible units of local government to all

  3  receipts available for distribution in the respective revenue

  4  sharing trust fund.

  5         (e)  Fifth, after the adjustments provided in

  6  paragraphs (b), (c), and (d), and after deducting the amount

  7  committed to all the units of local government, the funds

  8  remaining in the respective trust fund funds shall be

  9  distributed to those eligible units of local government which

10  qualify to receive additional moneys beyond the guaranteed

11  entitlement, on the basis of the additional money of each

12  qualified unit of local government in proportion to the total

13  additional money of all qualified units of local government.

14         Section 4.  Section 218.245, Florida Statutes, is

15  amended to read:

16         218.245  Revenue sharing; apportionment.--

17         (1)  The apportionment factor for each eligible county

18  shall be equal to the all eligible counties shall be composed

19  of three equally weighted portions as follows:

20         (a)  Each eligible county's percentage of the total

21  population of all eligible counties in the state.

22         (b)  Each eligible county's percentage of the total

23  population of the state residing in unincorporated areas of

24  all eligible counties which is represented by the county's

25  population residing in unincorporated areas.

26         (c)  Each eligible county's percentage of total sales

27  tax collections in all eligible counties during the preceding

28  year.

29         (2)  The apportionment factor for each all eligible

30  municipality municipalities shall be equal to the percentage

31  of composed of three equally weighted portions as follows:

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  1         (a)  The proportion of the population of a given

  2  municipality to the total population of all the eligible

  3  municipalities in the state which is represented by the

  4  municipality's population., as adjusted by the following

  5  factors:

  6         1.  For a municipality with a population in excess of

  7  50,000, the population shall be adjusted by multiplying its

  8  population by a factor of 1.791.

  9         2.  For a municipality with a population in excess of

10  20,000, but less than 50,001, the population shall be adjusted

11  by multiplying its population by a factor of 1.709.

12         3.  For a municipality with a population in excess of

13  5,000, but less than 20,001, the population shall be adjusted

14  by multiplying its population by a factor of 1.425.

15         4.  For a municipality with a population in excess of

16  2,000, but less than 5,001, the population shall be adjusted

17  by multiplying its population by a factor of 1.135.

18         (b)  The proportion of the sales tax collected within a

19  given municipality to the total sales tax collected within all

20  the eligible municipalities in the state.  The sales tax

21  collected within a given municipality shall be derived by

22  allocating the amount of sales tax collections for the county

23  in which the municipality is located to each municipality in

24  the county on the basis of the proportion of each

25  municipality's population to the total population of the

26  county.

27         (c)  The ratio of the relative local ability to raise

28  revenue, to be determined:

29         1.  By dividing the per capita nonexempt assessed real

30  and personal property valuation of all eligible municipalities

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  1  by the per capita nonexempt real and personal property

  2  valuation of each eligible municipality.

  3         2.  By multiplying the population of an eligible

  4  municipality by the percentage applicable to that municipality

  5  as established under subparagraph 1.

  6         3.  By dividing the population, as recalculated to

  7  reflect the relative local ability, by the total recalculated

  8  population of all eligible municipalities in the state.

  9         (d)  For a metropolitan or consolidated government, as

10  provided by s. 3, s. 6(e), or s. 6(f), Art. VIII of the State

11  Constitution, the population or sales tax collections of the

12  unincorporated area or areas outside of urban service

13  districts, if such have been established, as determined in

14  paragraphs (a) through (c) above and after adjustments made as

15  provided therein, shall be further adjusted by multiplying the

16  adjusted or recalculated population or sales tax collections,

17  as the case may be, by a percentage which is derived by

18  dividing:

19         1.  The total amount of ad valorem taxes levied by the

20  county government on real and personal property in the area of

21  the county outside of municipal limits, as created pursuant to

22  general or special law, or outside of urban service district

23  limits, where such are established; by

24         2.  The total amount of ad valorem taxes levied on real

25  and personal property by the county and municipal governments.

26         Section 5.  Subsection (1) of section 218.25, Florida

27  Statutes, is amended to read:

28         218.25  Limitation of shared funds; holders of bonds

29  protected; limitation on use of second guaranteed entitlement

30  for counties.--

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  1         (1)  Except as provided in subsection (2) with respect

  2  to the second guaranteed entitlement for counties, local

  3  governments shall not use any portion of the moneys received

  4  in excess of the guaranteed entitlement from the revenue

  5  sharing trust fund funds created by this part to assign,

  6  pledge, or set aside as a trust for the payment of principal

  7  or interest on bonds, tax anticipation certificates, or any

  8  other form of indebtedness, and there shall be no other use

  9  restriction on revenues shared pursuant to this part.  The

10  state does hereby covenant with holders of bonds or other

11  instruments of indebtedness issued by local governments prior

12  to July 1, 1972, that it is not the intent of this part to

13  affect adversely the rights of said holders or to relieve

14  local governments of the duty to meet their obligations as a

15  result of previous pledges or assignments or trusts entered

16  into which obligated funds received from revenue sources which

17  by terms of this part shall henceforth be distributed out of

18  the revenue sharing trust fund funds.

19         Section 6.  Subsection (2) of section 218.26, Florida

20  Statutes, is amended to read:

21         218.26  Administration; distribution schedule.--

22         (2)  The department shall, for all taxes collected and

23  received into the revenue sharing trust fund funds, establish

24  a schedule of equal monthly distribution for any computation

25  period.  The department is authorized to receive funds

26  pursuant to s. 215.18 at any time in order to make such

27  monthly payments by the 25th day of the month.

28         Section 7.  The Revenue Sharing Trust Fund for

29  Municipalities is terminated.  The current balance remaining

30  in, and all revenues of, the trust fund shall be transferred

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  1  to the Revenue Sharing Trust Fund for Counties and

  2  Municipalities.

  3         Section 8.  Subsection (3) of section 199.292, Florida

  4  Statutes, 1998 Supplement, is amended to read:

  5         199.292  Disposition of intangible personal property

  6  taxes.--All intangible personal property taxes collected

  7  pursuant to this chapter shall be placed in a special fund

  8  designated as the "Intangible Tax Trust Fund." The fund shall

  9  be disbursed as follows:

10         (3)  Of the remaining intangible personal property

11  taxes collected, an amount equal to 35.3 percent in state

12  fiscal year 1998-1999 and an amount equal to 37.7 percent in

13  each year thereafter, shall be transferred to the Revenue

14  Sharing Trust Fund for Counties and Municipalities. Of the

15  remaining taxes collected, an amount equal to 64.7 percent in

16  state fiscal year 1998-1999 and an amount equal to 62.3

17  percent in each year thereafter, shall be transferred to the

18  General Revenue Fund of the state.

19         Section 9.  Subsection (1) of section 206.605, Florida

20  Statutes, as amended by chapter 95-417, Laws of Florida, is

21  amended to read:

22         206.605  Municipal tax on motor fuel.--

23         (1)  The proceeds of the municipal fuel tax imposed

24  pursuant to s. 206.41(1)(c), after deducting the service

25  charge pursuant to chapter 215 and the administrative costs

26  incurred by the department in collecting, administering,

27  enforcing, and distributing the tax, which administrative

28  costs may not exceed 2 percent of collections, shall be

29  transferred into the Revenue Sharing Trust Fund for Counties

30  and Municipalities.

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  1         Section 10.  Subsection (1) of section 206.879, Florida

  2  Statutes, is amended to read:

  3         206.879  State and local alternative fuel user fee

  4  clearing trust funds; distribution.--

  5         (1)  Notwithstanding the provisions of s. 206.875, the

  6  revenues from the state alternative fuel fees imposed by s.

  7  206.877 shall be deposited into the State Alternative Fuel

  8  User Fee Clearing Trust Fund, which is hereby created.  After

  9  deducting the service charges provided in s. 215.20, the

10  proceeds in this trust fund shall be distributed as follows:

11  one-fifth of the proceeds in calendar year 1991, one-third of

12  the proceeds in calendar year 1992, three-sevenths of the

13  proceeds in calendar year 1993, and one-half of the proceeds

14  in each calendar year thereafter shall be transferred to the

15  State Transportation Trust Fund; the remainder shall be

16  distributed as follows:  50 percent shall be transferred to

17  the State Board of Administration for distribution according

18  to the provisions of s. 16, Art. IX of the State Constitution

19  of 1885, as amended; 25 percent shall be transferred to the

20  Revenue Sharing Trust Fund for Counties and Municipalities;

21  and the remaining 25 percent shall be distributed using the

22  formula contained in s. 206.60(1).

23         Section 11.  Paragraph (a) of subsection (2) of section

24  210.20, Florida Statutes, 1998 Supplement, is amended to read:

25         210.20  Employees and assistants; distribution of

26  funds.--

27         (2)  As collections are received by the division from

28  such cigarette taxes, it shall pay the same into a trust fund

29  in the State Treasury designated "Cigarette Tax Collection

30  Trust Fund" which shall be paid and distributed as follows:

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  1         (a)  The division shall from month to month certify to

  2  the Comptroller the amount derived from the cigarette tax

  3  imposed by s. 210.02, less the service charges provided for in

  4  s. 215.20 and less 0.9 percent of the amount derived from the

  5  cigarette tax imposed by s. 210.02, which shall be deposited

  6  into the Alcoholic Beverage and Tobacco Trust Fund, specifying

  7  the amounts to be transferred from the Cigarette Tax

  8  Collection Trust Fund and credited on the basis of 5.8 percent

  9  of the net collections to the Municipal Financial Assistance

10  Trust Fund, 35.3 32.4 percent of the net collections to the

11  Revenue Sharing Trust Fund for Counties and Municipalities,

12  2.9 percent of the net collections to the Revenue Sharing

13  Trust Fund for Counties, and 29.3 percent of the net

14  collections for the funding of indigent health care to the

15  Public Medical Assistance Trust Fund.

16         Section 12.  This act shall take effect July 1, 1999.

17

18            *****************************************

19                          HOUSE SUMMARY

20
      Renames the Revenue Sharing Trust Fund for Counties as
21    the Revenue Sharing Trust Fund for Counties and
      Municipalities and terminates the Revenue Sharing Trust
22    Fund for Municipalities.  Provides that all revenues
      designated for revenue sharing and presently deposited in
23    the two separate funds be deposited in the single Revenue
      Sharing Trust Fund for Counties and Municipalities.
24    Provides that the apportionment factor for distribution
      of revenue sharing funds to eligible counties and
25    municipalities shall be based solely on population.

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