House Bill 0373

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    Florida House of Representatives - 1999                 HB 373

        By Representative Bitner






  1                      A bill to be entitled

  2         An act relating to the Long-Term Care Trust

  3         Fund; amending s. 24.121, F.S.; specifying

  4         deposit and allocation of certain additional

  5         lottery revenues; providing definitions;

  6         allocating specified portions of certain

  7         additional lottery revenues to the Educational

  8         Enhancement Trust Fund and the Long-Term Care

  9         Trust Fund; creating s. 400.901, F.S.; creating

10         the Long-Term Care Trust Fund; providing for

11         administration by the Department of Elderly

12         Affairs; specifying uses of the fund; requiring

13         the department to adopt rules providing for

14         grants from the fund to counties for certain

15         purposes; providing for procedures and criteria

16         for award of such grants; providing for future

17         review and termination or re-creation of the

18         trust fund; providing an effective date.

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

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22         Section 1.  Subsections (2) and (3) of section 24.121,

23  Florida Statutes, 1998 Supplement, are amended to read:

24         24.121  Allocation of revenues and expenditure of funds

25  for public education.--

26         (2)(a)  Each fiscal year, at least 38 percent of the

27  gross revenue from the sale of lottery tickets and other

28  earned revenue, excluding application processing fees, shall

29  be deposited in the Educational Enhancement Trust Fund, which

30  is hereby created in the State Treasury to be administered by

31  the Department of Education, except that current online game

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    Florida House of Representatives - 1999                 HB 373

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  1  additional gross revenue shall be deposited as provided in

  2  paragraph (b). The Department of the Lottery shall transfer

  3  moneys to the Educational Enhancement Trust Fund at least once

  4  each quarter. Funds in the Educational Enhancement Trust Fund

  5  shall be used to the benefit of public education in accordance

  6  with the provisions of this act. Notwithstanding any other

  7  provision of law, a maximum of $180 million of lottery

  8  revenues transferred to the Educational Enhancement Trust Fund

  9  in fiscal year 1997-1998 and for 30 years thereafter shall be

10  reserved as needed and used to meet the requirements of the

11  documents authorizing the bonds issued by the state pursuant

12  to s. 235.187 or s. 235.2195 or distributed to school

13  districts for the Classrooms First Program as provided in s.

14  235.187. Such lottery revenues are hereby pledged to the

15  payment of debt service on bonds issued by the state pursuant

16  to s. 235.187 or s. 235.2195. Debt service payable on bonds

17  issued by the state pursuant to s. 235.187 or s. 235.2195

18  shall be payable from the first lottery revenues transferred

19  to the Educational Enhancement Trust Fund in each fiscal year.

20  Amounts distributable to school districts that request the

21  issuance of bonds pursuant to s. 235.187(3) are hereby pledged

22  to such bonds pursuant to s. 11(d), Art. VII of the State

23  Constitution. The amounts distributed through the Classrooms

24  First Program shall equal $145 million in each fiscal year.

25  These funds are intended to provide up to $2.5 billion for

26  public school facilities.

27         (b)1.  The Legislature finds and declares that

28  projected increases in online lottery sales attributable to

29  the introduction of a multistate game represent a windfall to

30  the state, and that a portion of the windfall should be used

31  to address the needs of Florida's elderly.

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    Florida House of Representatives - 1999                 HB 373

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  1         2.  As used in this subsection:

  2         a.  "Base year online game gross revenue" means the

  3  total amount of gross revenues for the fiscal year ending June

  4  30, 1998, from the sale of lottery tickets for online games.

  5         b.  "Current online game additional gross revenue"

  6  means, for any fiscal year, any gross revenues from the sale

  7  of lottery tickets for online games in excess of the base year

  8  online game gross revenue.

  9         3.  Each fiscal year, 19 percent of the current online

10  game additional gross revenue shall be deposited in the

11  Long-Term Care Trust Fund and at least 19 percent of the

12  current online game additional gross revenue shall be

13  deposited in the Educational Enhancement Trust Fund pursuant

14  to paragraph (a).

15         (3)  The funds remaining in the Administrative Trust

16  Fund after transfers to the Educational Enhancement Trust Fund

17  and the Long-Term Care Trust Fund shall be used for the

18  payment of administrative expenses of the department.  These

19  expenses shall include all costs incurred in the operation and

20  administration of the lottery and all costs resulting from any

21  contracts entered into for the purchase or lease of goods or

22  services required by the lottery, including, but not limited

23  to:

24         (a)  The compensation paid to retailers;

25         (b)  The costs of supplies, materials, tickets,

26  independent audit services, independent studies, data

27  transmission, advertising, promotion, incentives, public

28  relations, communications, security, bonding for retailers,

29  printing, distribution of tickets, and reimbursing other

30  governmental entities for services provided to the lottery;

31  and

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    Florida House of Representatives - 1999                 HB 373

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  1         (c)  The costs of any other goods and services

  2  necessary for effectuating the purposes of this act.

  3         Section 2.  Section 400.901, Florida Statutes, is

  4  created to read:

  5         400.901  Long-Term Care Trust Fund.--

  6         (1)  The Long-Term Care Trust Fund is hereby created

  7  and shall be administered by the Department of Elderly

  8  Affairs.

  9         (2)  Moneys in the trust fund shall be used to fund

10  grants from the department, pursuant to legislative

11  appropriation, to support local programs to improve access,

12  availability, or affordability of long-term care facilities

13  regulated under this chapter, including, but not limited to,

14  skilled nursing facilities, nursing facilities, assisted

15  living facilities, adult family-care homes, board and care

16  facilities, and any other similar adult care centers.

17         (3)  The department shall adopt rules establishing a

18  process under which a county government may apply for a grant

19  under subsection (2) and specifying criteria for the award of

20  grants consistent with the legislative intent to improve

21  access, availability, and affordability of long-term care

22  facilities.

23         Section 3.  (1)  Pursuant to the provisions of Section

24  19(f)(2), Article III of the State Constitution, the Long-Term

25  Care Trust Fund shall, unless terminated sooner, be terminated

26  on July 1, 2003.

27         (2)  Prior to the regular legislative session

28  immediately preceding the date on which the trust fund is

29  scheduled to be terminated, the Department of Elderly Affairs

30  and the Governor shall recommend to the President of the

31  Senate and the Speaker of the House of Representatives whether

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    Florida House of Representatives - 1999                 HB 373

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  1  the trust fund should be allowed to terminate or should be

  2  re-created.  These recommendations shall be based on a review

  3  of the purpose and use of the trust fund and a determination

  4  of whether the trust fund will continue to be necessary.  A

  5  recommendation to re-create the trust fund may include

  6  suggested modifications to the purposes, sources of receipts,

  7  and allowable expenditures for the trust fund.  The

  8  department's recommendation shall be made as a part of its

  9  legislative budget request to the Legislature pursuant to

10  section 216.023, Florida Statutes.  The Governor's

11  recommendation shall be made as a part of the recommended

12  budget presented to the Legislature pursuant to section

13  216.162, Florida Statutes.

14         (3)  If the trust fund is terminated, the Department of

15  Elderly Affairs shall pay any outstanding debts or obligations

16  of the trust fund as soon as practicable and the Comptroller

17  shall close out and remove the trust fund from the various

18  state accounting systems, using generally accepted accounting

19  practices concerning warrants outstanding, assets, and

20  liabilities and shall deposit any revenues remaining in the

21  trust fund into the Education Enhancement Trust Fund.

22         Section 4.  This act shall take effect July 1, 1999.

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    Florida House of Representatives - 1999                 HB 373

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  2                          HOUSE SUMMARY

  3
      Provides for deposit and allocation of additional gross
  4    revenues from lottery online games resulting from
      introduction of a multistate game between the Educational
  5    Enhancement Trust Fund and the Long-Term Care Trust Fund.
      Creates the Long-Term Care Trust Fund, to be administered
  6    by the Department of Elderly Affairs.  Specifies moneys
      in the fund to be used to fund grants to support local
  7    programs to improve access, availability, and
      affordability of long-term care facilities. Requires the
  8    Department of Elderly Affairs to adopt rules providing
      for such grants. Provides for future review and
  9    termination or re-creation of the trust fund.

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