Senate Bill 1650

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    Florida Senate - 2000                                  SB 1650

    By Senator Klein





    28-970A-00

  1                      A bill to be entitled

  2         An act relating to revenue sharing with county

  3         governments; amending s. 199.292, F.S.;

  4         eliminating a transfer of net intangibles tax

  5         collections to the Revenue Sharing Trust Fund

  6         for Counties; amending s. 210.20, F.S.;

  7         eliminating the transfer of net cigarette tax

  8         collections to the Revenue Sharing Trust Fund

  9         for Counties; amending s. 212.20, F.S.;

10         authorizing a separate distribution to the

11         Revenue Sharing Trust Fund for Counties;

12         amending s. 218.21, F.S.; modifying a

13         definition and deleting a definition; amending

14         s. 218.23, F.S.; providing a new distribution

15         formula for counties; amending s. 218.25, F.S.;

16         eliminating the second guaranteed entitlement

17         for counties; providing an effective date.

18

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

20

21         Section 1.  Subsection (3) of section 199.292, Florida

22  Statutes, is amended to read:

23         199.292  Disposition of intangible personal property

24  taxes.--All intangible personal property taxes collected

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

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

27  be disbursed as follows:

28         (3)  Of the remaining intangible personal property

29  taxes collected, the balance an amount equal to 35.3 percent

30  in state fiscal year 1998-1999 and an amount equal to 37.7

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

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  1  Revenue Sharing Trust Fund for Counties. Of the remaining

  2  taxes collected, an amount equal to 64.7 percent in state

  3  fiscal year 1998-1999 and an amount equal to 62.3 percent in

  4  each year thereafter, shall be transferred to the General

  5  Revenue Fund of the state.

  6         Section 2.  Paragraph (a) of subsection (2) of section

  7  210.20, Florida Statutes, is amended to read:

  8         210.20  Employees and assistants; distribution of

  9  funds.--

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

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

12  in the State Treasury designated "Cigarette Tax Collection

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

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

15  the Comptroller the amount derived from the cigarette tax

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

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

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

19  into the Alcoholic Beverage and Tobacco Trust Fund, specifying

20  the amounts to be transferred from the Cigarette Tax

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

22  of the net collections to the Municipal Financial Assistance

23  Trust Fund, 32.4 percent of the net collections to the Revenue

24  Sharing Trust Fund for Municipalities, 2.9 percent of the net

25  collections to the Revenue Sharing Trust Fund for Counties,

26  and 29.3 percent of the net collections for the funding of

27  indigent health care to the Public Medical Assistance Trust

28  Fund.

29         Section 3.  Paragraph (f) of subsection (6) of section

30  212.20, Florida Statutes, is amended to read:

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  1         212.20  Funds collected, disposition; additional powers

  2  of department; operational expense; refund of taxes

  3  adjudicated unconstitutionally collected.--

  4         (6)  Distribution of all proceeds under this chapter

  5  shall be as follows:

  6         (f)  The proceeds of all other taxes and fees imposed

  7  pursuant to this chapter shall be distributed as follows:

  8         1.  In any fiscal year, the greater of $500 million,

  9  minus an amount equal to 4.6 percent of the proceeds of the

10  taxes collected pursuant to chapter 201, or 5 percent of all

11  other taxes and fees imposed pursuant to this chapter shall be

12  deposited in monthly installments into the General Revenue

13  Fund.

14         2.  Two-tenths of one percent shall be transferred to

15  the Solid Waste Management Trust Fund.

16         3.  After the distribution under subparagraphs 1. and

17  2., 9.653 percent of the amount remitted by a sales tax dealer

18  located within a participating county pursuant to s. 218.61

19  shall be transferred into the Local Government Half-cent Sales

20  Tax Clearing Trust Fund.

21         4.  After the distribution under subparagraphs 1., 2.,

22  and 3., 0.054 percent shall be transferred to the Local

23  Government Half-cent Sales Tax Clearing Trust Fund and

24  distributed pursuant to s. 218.65.

25         5.  For sales tax proceeds received after July 1, 2000,

26  and after the distributions under subparagraphs 1.-4.,

27  one-twelfth of 2.52749 percent of the prior fiscal year's

28  available proceeds pursuant to this paragraph, shall be

29  transferred to the Revenue Sharing Trust Fund for Counties

30  pursuant to s. 218.215. However, the amount may never be less

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  1  than the amount due counties as their guaranteed entitlement

  2  as that term is defined in s. 218.21(6)(a).

  3         6.5.  Of the remaining proceeds:

  4         a.  Beginning July 1, 1992, $166,667 shall be

  5  distributed monthly by the department to each applicant that

  6  has been certified as a "facility for a new professional

  7  sports franchise" or a "facility for a retained professional

  8  sports franchise" pursuant to s. 288.1162 and $41,667 shall be

  9  distributed monthly by the department to each applicant that

10  has been certified as a "new spring training franchise

11  facility" pursuant to s. 288.1162. Distributions shall begin

12  60 days following such certification and shall continue for 30

13  years. Nothing contained in this paragraph herein shall be

14  construed to allow an applicant certified pursuant to s.

15  288.1162 to receive more in distributions than actually

16  expended by the applicant for the public purposes provided for

17  in s. 288.1162(7). However, a certified applicant shall

18  receive distributions up to the maximum amount allowable and

19  undistributed under this section for additional renovations

20  and improvements to the facility for the franchise without

21  additional certification.

22         b.  Beginning 30 days after notice by the Office of

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

24  Revenue that an applicant has been certified as the

25  professional golf hall of fame pursuant to s. 288.1168 and is

26  open to the public, $166,667 shall be distributed monthly, for

27  up to 300 months, to the applicant.

28         c.  Beginning 30 days after notice by the Department of

29  Commerce to the Department of Revenue that the applicant has

30  been certified as the International Game Fish Association

31  World Center facility pursuant to s. 288.1169, and the

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  1  facility is open to the public, $83,333 shall be distributed

  2  monthly, for up to 180 months, to the applicant.  This

  3  distribution is subject to reduction pursuant to s. 288.1169.

  4         7.6.  All other proceeds shall remain with the General

  5  Revenue Fund.

  6         Section 4.  Section 218.21, Florida Statutes, is

  7  amended to read:

  8         218.21  Definitions.--As used in this part, the

  9  following words and terms shall have the meanings ascribed

10  them in this section, except where the context clearly

11  indicates a different meaning:

12         (1)  "Unit of local government" means a county or

13  municipal government and shall not include any special

14  district as defined in part III.

15         (2)  "County" means a political subdivision of the

16  state as established pursuant to s. 1, Art. VIII of the State

17  Constitution.

18         (3)  "Municipality" means a municipality created

19  pursuant to general or special law and metropolitan and

20  consolidated governments as provided in s. 6(e) and (f), Art.

21  VIII of the State Constitution.  Such municipality must have

22  held an election for its legislative body pursuant to law and

23  established such a legislative body which meets pursuant to

24  law.

25         (4)  "Department" means the Department of Revenue.

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

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

28  the distribution from trust funds were based solely on the

29  formula computation.

30

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

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

  3  government so that:

  4         (a)  In state fiscal year 2000-2001 and each fiscal

  5  year thereafter, no eligible county shall receive less funds

  6  from the Revenue Sharing Trust Fund for Counties in any fiscal

  7  year than 90 percent of the amount received in the aggregate

  8  from the state in fiscal year 1999-2000 1971-1972 under the

  9  provisions of the then-existing s. 210.20(2)(a) s.

10  210.20(2)(c), tax on cigarettes, ; s. 323.16(4), road tax; and

11  s. 199.292(3) s. 199.292(4), tax on intangible personal

12  property.

13         (b)  No eligible municipality shall receive less funds

14  from the Revenue Sharing Trust Fund for Municipalities in any

15  fiscal year than the aggregate amount it received from the

16  state in fiscal year 1971-1972 under the provisions of the

17  then-existing s. 210.20(2)(a), tax on cigarettes; s.

18  323.16(3), road tax; and s. 206.605, tax on motor fuel. Any

19  government exercising municipal powers under s. 6(f), Art.

20  VIII of the State Constitution may not receive less than the

21  aggregate amount it received from the Revenue Sharing Trust

22  Fund for Municipalities in the preceding fiscal year, plus a

23  percentage increase in such amount equal to the percentage

24  increase of the Revenue Sharing Trust Fund for Municipalities

25  for the preceding fiscal year.

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

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

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

29  government so that such unit will receive the amount of

30  revenue necessary to meet its obligations as a result of

31  pledges or assignments or trusts entered into which obligated

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  1  funds received from revenue sources or proceeds which by terms

  2  of this act shall henceforth be distributed out of revenue

  3  sharing trust funds.

  4         (8)  "Population" means the latest official state

  5  estimate of population certified pursuant to s. 186.901 or, if

  6  there is no independent annual certification of population for

  7  any urban service district necessary to the requirements of

  8  this part, the population of such district shall be determined

  9  by applying the latest available percentage distribution to

10  the population of the area affected.

11         (9)  "All receipts available" means the amount

12  estimated to be available for distribution during the fiscal

13  year as determined, and as amended from time to time, by the

14  department.

15         (10)  "Second guaranteed entitlement for counties"

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

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

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

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

20  guaranteed entitlement.  For any fiscal year, each eligible

21  county shall be entitled to receive the second guaranteed

22  entitlement for counties from the Revenue Sharing Trust Fund

23  for Counties.  The second guaranteed entitlement for counties

24  shall be deemed separate and apart from the guaranteed

25  entitlement and shall not be deemed to be a part of the

26  guaranteed entitlement for purposes of any indenture,

27  contract, or pledge to holders of obligations issued by any

28  county. 

29         Section 5.  Section 218.23, Florida Statutes, is

30  amended to read:

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  1         218.23  Revenue sharing with units of local

  2  government.--

  3         (1)  To be eligible to participate in revenue sharing

  4  beyond the minimum entitlement in any fiscal year, a unit of

  5  local government is required to have:

  6         (a)  Reported its finances for its most recently

  7  completed fiscal year to the Department of Banking and

  8  Finance, pursuant to s. 218.32.

  9         (b)  Made provisions for annual postaudits of its

10  financial accounts in accordance with provisions of law.

11         (c)  Levied, as shown on its most recent financial

12  report pursuant to s. 218.32, ad valorem taxes, exclusive of

13  taxes levied for debt service or other special millages

14  authorized by the voters, to produce the revenue equivalent to

15  a millage rate of 3 mills on the dollar based on the 1973

16  taxable values as certified by the property appraiser pursuant

17  to s. 193.122(2) or, in order to produce revenue equivalent to

18  that which would otherwise be produced by such 3-mill ad

19  valorem tax, to have received a remittance from the county

20  pursuant to s. 125.01(6)(a), collected an occupational license

21  tax or a utility tax, levied an ad valorem tax, or received

22  revenue from any combination of these four sources.  If a new

23  municipality is incorporated, the provisions of this paragraph

24  shall apply to the taxable values for the year of

25  incorporation as certified by the property appraiser. This

26  paragraph requires only a minimum amount of revenue to be

27  raised from the ad valorem tax, the occupational license tax,

28  and the utility tax.  It does not require a minimum millage

29  rate.

30         (d)  Certified that persons in its employ as law

31  enforcement officers, as defined in s. 943.10(1), meet the

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  1  qualifications for employment as established by the Criminal

  2  Justice Standards and Training Commission; that its salary

  3  structure and salary plans meet the provisions of chapter 943;

  4  and that no law enforcement officer is compensated for his or

  5  her services at an annual salary rate of less than $6,000.

  6  However, the department may waive the minimum law enforcement

  7  officer salary requirement if a city or county certifies that

  8  it is levying ad valorem taxes at 10 mills.

  9         (e)  Certified that persons in its employ as

10  firefighters, as defined in s. 633.30(1), meet the

11  qualification for employment as established by the Division of

12  State Fire Marshal pursuant to the provisions of ss. 633.34

13  and 633.35 and that the provisions of s. 633.382 have been

14  met.

15         (f)  Certified that each dependent special district

16  that is budgeted separately from the general budget of the

17  local governing authority has met the provisions for annual

18  postaudit of its financial accounts in accordance with the

19  provisions of law.

20

21  Additionally, to receive its share of revenue sharing funds, a

22  unit of local government shall certify to the Department of

23  Revenue that the requirements of s. 200.065, if applicable,

24  were met.  The certification shall be made annually within 30

25  days of adoption of an ordinance or resolution establishing a

26  final property tax levy or, if no property tax is levied, not

27  later than November 1.  The portion of revenue sharing funds

28  which, pursuant to this part, would otherwise be distributed

29  to a unit of local government which has not certified

30  compliance or has otherwise failed to meet the requirements of

31  s. 200.065 shall be deposited in the General Revenue Fund for

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  1  the 12 months following a determination of noncompliance by

  2  the department.

  3         (2)  The distribution to an eligible county under this

  4  part is determined by the following formula:

  5         (a)  Each eligible county shall receive the guaranteed

  6  entitlement for all receipts available for distribution in the

  7  Revenue Sharing Trust Fund for Counties.

  8         (b)  After the adjustment provided in paragraph (a), a

  9  distribution for each eligible county shall be computed on the

10  basis of the apportionment factor provided in s. 218.245,

11  which shall be applied to all remaining receipts available for

12  distribution in the Revenue Sharing Trust Fund for Counties.

13         (3)  The distribution to an eligible municipality under

14  this part is determined by the following formula:

15         (a)  Each eligible municipality shall receive the

16  guaranteed entitlement for all receipts available for

17  distribution in the Revenue Sharing Trust Fund for

18  Municipalities.

19         (b)  After the adjustment provided in paragraph (a), a

20  distribution for each eligible municipality shall be computed

21  on the basis of the apportionment factor provided in s.

22  218.245, which shall be applied to all remaining receipts

23  available for distribution in the Revenue Sharing Trust Fund

24  for Municipalities.

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

26  under this part is determined by the following formula:

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

28  local government shall be computed on the basis of the

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

30  applied for all eligible units of local government to all

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  1  receipts available for distribution in the respective revenue

  2  sharing trust fund.

  3         (b)  Second, revenue shared with eligible units of

  4  local government for any fiscal year shall be adjusted so that

  5  no eligible unit of local government receives less funds than

  6  its guaranteed entitlement.

  7         (c)  Third, revenues shared with counties for any

  8  fiscal year shall be adjusted so that no county receives less

  9  funds than its guaranteed entitlement plus the second

10  guaranteed entitlement for counties.

11         (d)  Fourth, revenue shared with units of local

12  government for any fiscal year shall be adjusted so that no

13  unit of local government receives less funds than its minimum

14  entitlement.

15         (e)  Fifth, after the adjustments provided in

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

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

18  remaining in the respective trust funds shall be distributed

19  to those eligible units of local government which qualify to

20  receive additional moneys beyond the guaranteed entitlement,

21  on the basis of the additional money of each qualified unit of

22  local government in proportion to the total additional money

23  of all qualified units of local government. 

24         (4)(3)  Notwithstanding the provisions of paragraph

25  (1)(c), no unit of local government which was eligible to

26  participate in revenue sharing in the 3 years prior to

27  initially participating in the local government half-cent

28  sales tax shall be ineligible to participate in revenue

29  sharing solely due to a millage or utility tax reduction

30  afforded by the local government half-cent sales tax.

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  1         Section 6.  Section 218.25, Florida Statutes, is

  2  amended to read:

  3         218.25  Limitation of shared funds; holders of bonds

  4  protected; limitation on use of second guaranteed entitlement

  5  for counties.--

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

  7  to the second guaranteed entitlement for counties, Local

  8  governments shall not use any portion of the moneys received

  9  in excess of the guaranteed entitlement from the revenue

10  sharing trust funds created by this part to assign, pledge, or

11  set aside as a trust for the payment of principal or interest

12  on bonds, tax anticipation certificates, or any other form of

13  indebtedness, and there shall be no other use restriction on

14  revenues shared pursuant to this part.  The state covenants

15  does hereby covenant with holders of bonds or other

16  instruments of indebtedness issued by local governments prior

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

18  affect adversely the rights of those said holders or to

19  relieve local governments of the duty to meet their

20  obligations as a result of previous pledges or assignments or

21  trusts entered into which obligated funds received from

22  revenue sources which by terms of this part shall henceforth

23  be distributed out of the revenue sharing trust funds.

24         (2)  The second guaranteed entitlement for counties may

25  be assigned, pledged, or set aside as a trust for the payment

26  of principal or interest on bonds, tax anticipation

27  certificates, or any other form of indebtedness, including

28  obligations issued to acquire an insurance contract or

29  contracts from a local government liability pool and including

30  payments required pursuant to any loan agreement entered into

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  1  to provide funds to acquire an insurance contract or contracts

  2  from a local government liability pool.

  3         Section 7.  This act shall take effect July 1, 2000.

  4

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  6                          SENATE SUMMARY

  7    Revises the method of sharing revenues with county
      governments.
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