CODING: Words stricken are deletions; words underlined are additions.



                                                   HOUSE AMENDMENT

                                  Bill No. CS for SB 426, 1st Eng.

    Amendment No. ___ (for drafter's use only)

                            CHAMBER ACTION
              Senate                               House
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  4  ______________________________________________________________

  5                                           ORIGINAL STAMP BELOW

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10  ______________________________________________________________

11  Representative(s) Henriquez, Greenstein, Seiler, Smith,

12  Gelber, and Ausley offered the following:

13

14         Amendment to Amendment (042761) (with title amendment) 

15         On page 122, between lines 12 and 13,

16

17  insert:

18         Section 61.  Section 212.0801, Florida Statutes, is

19  created to read:

20         212.0801  Mandatory Review of Tax Exemptions.--

21         (1)  The Legislature shall create a standing Joint

22  Legislative Tax Exemption Review Committee, consisting of

23  seven members of the Senate and seven members of the House of

24  Representatives appointed by the President of the Senate and

25  the Speaker of the House of Representatives respectively.  The

26  President of the Senate shall appoint the chairman of the

27  committee for the 2003 legislative session and said

28  chairmanship shall alternate every year.  The committee shall

29  convene its first meeting no later than December 1, 2002, and

30  shall meet as often as is necessary to meet the timeframes

31  established within this section, but not less than once per

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    File original & 9 copies    03/15/02
    hmo0011                     09:19 am         00426-0058-595063




                                                   HOUSE AMENDMENT

                                  Bill No. CS for SB 426, 1st Eng.

    Amendment No. ___ (for drafter's use only)





  1  quarter year.

  2         (2)  The Joint committee shall conduct a comprehensive

  3  review of all current exemptions to assess the public benefit

  4  of each exemption.  The committee shall establish criteria by

  5  which each current and future sales tax exemption shall be

  6  evaluated, which shall include, at a minimum, factual

  7  determination that:

  8         (a)  The exemption is required by the United States

  9  Constitution, federal law, or the state constitution.

10         (b)  The exemption supports an agreed upon public good

11  or socially desirable charitable, educational, or religious

12  goal.

13         (c)  The exemption meets the premise that basic life

14  necessities not be taxed, to include groceries, health

15  services, prescription medications, and residential rent.

16         (d)  The exemption provides an incentive for

17  documentable creation and retention of sustained, quality

18  jobs.  The committee is authorized to require specific

19  economic models, such as the Regional Economic Model or

20  similar, at their discretion.

21         (e)  The exemption does not place one business at a

22  competitive disadvantage to another.

23         (f)  The exemption does not materially contribute to

24  increasing the regressivity of the tax.

25         (g)  The exemption enhances the delivery of public

26  goods and services.

27         (h)  The benefit of the exemption outweighs the benefit

28  obtained by collecting the tax revenue.

29         (3)  The committee shall vote to recommend retention or

30  repeal of an exemption upon completing its evaluation of that

31  exemption in a report that shall be delivered to the President

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    File original & 9 copies    03/15/02
    hmo0011                     09:19 am         00426-0058-595063




                                                   HOUSE AMENDMENT

                                  Bill No. CS for SB 426, 1st Eng.

    Amendment No. ___ (for drafter's use only)





  1  of the Senate and the Speaker of the House according to the

  2  timelines included herein.

  3         (a)  To be recommended for retention, an exemption must

  4  be approved by no less than five of the seven members of both

  5  the Senate and the House.

  6         (b)  Upon recommendation by the joint committee, the

  7  exemptions shall be taken up in the most immediate legislative

  8  session.  Each exemption shall be brought to a vote in each

  9  chamber and shall be considered repealed unless approved by at

10  least two-thirds of each house.

11         (c)  A currently authorized exemption which is not

12  approved for retention may be proposed during a subsequent

13  legislative session.

14         (4)  TIMEFRAMES.--To the extent possible,

15  recommendations related exemptions categorized as business,

16  organizational, and miscellaneous exemptions shall be made for

17  consideration by the Legislature during the 2003 Legislative

18  session.  Upon completion of recommendations related to these

19  three categories of exemptions, the joint committee shall

20  begin evaluation of exemptions categorized as household and

21  service exemptions.  Recommendations shall be made for

22  consideration during the 2004 session or earlier if the

23  committee is able to finish its evaluations for the 2003

24  session.

25         (5)  Additionally, the committee is charged with

26  evaluation all proposals for future exemptions according to

27  the criteria established by them pursuant to subsection (2) of

28  this section.  All bills containing sales tax exemptions,

29  credits, or rebates shall be first referred to the joint

30  committee.  To make the determiniation required by subsection

31  (2) of this section, the committee is authorized to require

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    File original & 9 copies    03/15/02
    hmo0011                     09:19 am         00426-0058-595063




                                                   HOUSE AMENDMENT

                                  Bill No. CS for SB 426, 1st Eng.

    Amendment No. ___ (for drafter's use only)





  1  specific economic models, such as the Regional Economic Model

  2  or similar, at their discreation.

  3

  4

  5  ================ T I T L E   A M E N D M E N T ===============

  6  And the title is amended as follows:

  7         On page 130, line 10, after the semicolon,

  8

  9  insert:

10         creating s.212.0801, F.S.; providing for the

11         mandatory review of tax exemptions;

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    File original & 9 copies    03/15/02
    hmo0011                     09:19 am         00426-0058-595063