House Bill 0551

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    Florida House of Representatives - 1999                HJR 551

        By Representative Wallace






  1                      House Joint Resolution

  2         A joint resolution proposing amendments to

  3         Section 1 of Article VII and Section 21 of

  4         Article XII of the State Constitution relating

  5         to a limitation on state appropriations.

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  7  Be It Resolved by the Legislature of the State of Florida:

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  9         That the amendments to Section 1 of Article VII and

10  Section 21 of Article XII of the State Constitution set forth

11  below are agreed to and shall be submitted to the electors of

12  Florida for approval or rejection at the general election to

13  be held in November 2000:

14                           ARTICLE VII

15                       FINANCE AND TAXATION

16         SECTION 1.  Taxation; appropriations; state expenses;

17  state appropriations revenue limitation.--

18         (a)  No tax shall be levied except in pursuance of law.

19  No state ad valorem taxes shall be levied upon real estate or

20  tangible personal property.  All other forms of taxation shall

21  be preempted to the state except as provided by general law.

22         (b)  Motor vehicles, boats, airplanes, trailers,

23  trailer coaches and mobile homes, as defined by law, shall be

24  subject to a license tax for their operation in the amounts

25  and for the purposes prescribed by law, but shall not be

26  subject to ad valorem taxes.

27         (c)  No money shall be drawn from the treasury except

28  in pursuance of appropriation made by law.

29         (d)  Provision shall be made by law for raising

30  sufficient revenue to defray the expenses of the state for

31  each fiscal period.

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  1         (e)  State appropriations for any fiscal year shall be

  2  limited to state appropriations for the prior fiscal year plus

  3  an adjustment for growth.  For purposes of calculating such

  4  state appropriations limitation, "state appropriations" shall

  5  not include any portion of state appropriations spent or to be

  6  spent from receipt of federal funds. The "adjustment for

  7  growth" shall be an amount expressed as a percentage equal to

  8  the sum of the average annual rate of growth in median

  9  household income in Florida over the most recent five years

10  plus the rate of growth of the population of Florida projected

11  for the fiscal year.  Median household income in Florida shall

12  be that established and published by the United States

13  Department of Commerce or its successor, and the population of

14  Florida shall be that estimated by the legislature's Office of

15  Economic and Demographic Research or its successor.  State

16  appropriations for the prior fiscal year shall be multiplied

17  by the growth percentage and that product added to the prior

18  fiscal year's state appropriations to establish the state

19  appropriations limitation for the fiscal year.  State revenues

20  collected for any fiscal year in excess of the state

21  appropriations limitation shall be transferred to the budget

22  stabilization fund until the fund reaches the maximum balance

23  specified in Section 19(g) of Article III and thereafter shall

24  be refunded to taxpayers as provided by general law.  For

25  purposes of this subsection, "state revenues" includes general

26  revenue and trust fund receipts, but does not include federal

27  fund receipts.  The state appropriations limitation required

28  by this subsection shall not apply in any fiscal year in which

29  the governor declares a state financial emergency on the order

30  of a war, a natural catastrophe, an economic depression, or

31  any event of similar magnitude.  However, the legislature must

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    Florida House of Representatives - 1999                HJR 551

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  1  agree by a three-quarters vote of the membership of each house

  2  in a separate bill that contains no other subject to suspend

  3  the state appropriations limitation for that year. Except as

  4  provided herein, state revenues collected for any fiscal year

  5  shall be limited to state revenues allowed under this

  6  subsection for the prior fiscal year plus an adjustment for

  7  growth.  As used in this subsection, "growth" means an amount

  8  equal to the average annual rate of growth in Florida personal

  9  income over the most recent twenty quarters times the state

10  revenues allowed under this subsection for the prior fiscal

11  year. For the 1995-1996 fiscal year, the state revenues

12  allowed under this subsection for the prior fiscal year shall

13  equal the state revenues collected for the 1994-1995 fiscal

14  year.  Florida personal income shall be determined by the

15  legislature, from information available from the United States

16  Department of Commerce or its successor on the first day of

17  February prior to the beginning of the fiscal year. State

18  revenues collected for any fiscal year in excess of this

19  limitation shall be transferred to the budget stabilization

20  fund until the fund reaches the maximum balance specified in

21  Section 19(g) of Article III, and thereafter shall be refunded

22  to taxpayers as provided by general law.  State revenues

23  allowed under this subsection for any fiscal year may be

24  increased by a two-thirds vote of the membership of each house

25  of the legislature in a separate bill that contains no other

26  subject and that sets forth the dollar amount by which the

27  state revenues allowed will be increased. The vote may not be

28  taken less than seventy-two hours after the third reading of

29  the bill.  For purposes of this subsection, "state revenues"

30  means taxes, fees, licenses, and charges for services imposed

31  by the legislature on individuals, businesses, or agencies

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  1  outside state government.  However, "state revenues" does not

  2  include:  revenues that are necessary to meet the requirements

  3  set forth in documents authorizing the issuance of bonds by

  4  the state; revenues that are used to provide matching funds

  5  for the federal Medicaid program with the exception of the

  6  revenues used to support the Public Medical Assistance Trust

  7  Fund or its successor program and with the exception of state

  8  matching funds used to fund elective expansions made after

  9  July 1, 1994; proceeds from the state lottery returned as

10  prizes; receipts of the Florida Hurricane Catastrophe Fund;

11  balances carried forward from prior fiscal years; taxes,

12  licenses, fees, and charges for services imposed by local,

13  regional, or school district governing bodies; or revenue from

14  taxes, licenses, fees, and charges for services required to be

15  imposed by any amendment or revision to this constitution

16  after July 1, 1994. An adjustment to the revenue limitation

17  shall be made by general law to reflect the fiscal impact of

18  transfers of responsibility for the funding of governmental

19  functions between the state and other levels of government.

20  The legislature shall, by general law, prescribe procedures

21  necessary to administer this subsection.

22                           ARTICLE XII

23                             SCHEDULE

24         SECTION 21.  State appropriations revenue

25  limitation.--The amendment to Section 1 of Article VII

26  limiting state appropriations, if adopted at the general

27  election in November 2000, revenues shall take effect January

28  1, 2001 1995, and shall first be applicable to state fiscal

29  year 2001-2002 1995-1996.

30         BE IT FURTHER RESOLVED that in accordance with the

31  requirements of section 101.161, Florida Statutes, the title

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    Florida House of Representatives - 1999                HJR 551

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  1  and substance of the amendments proposed herein shall appear

  2  on the ballot as follows:

  3                LIMITATION ON STATE APPROPRIATIONS

  4         Replaces the state revenue limitation with a state

  5  appropriations limitation equal to the prior year's

  6  appropriations plus a growth adjustment based on the growth

  7  rate of state median household income over the preceding five

  8  years plus the growth rate in state population projected for

  9  the fiscal year, with excess revenues deposited in the budget

10  stabilization fund until fully funded and then refunded to

11  taxpayers.  Provides for suspension of the limitation for

12  financial emergencies.

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