House Bill hb0087e1

                                       HJR 87, First Engrossed/ntc



  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.

  6

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

  8

  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 2002:

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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                                       HJR 87, First Engrossed/ntc



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

  2  be limited to state appropriations for the prior fiscal year

  3  plus an adjustment for growth.  For purposes of calculating

  4  such state appropriations limitation, "state appropriations"

  5  shall not include any portion of state appropriations spent or

  6  to be spent from receipt of federal funds.

  7         (2)  The "adjustment for growth" shall be an amount

  8  expressed as a percentage equal to the average annual rate of

  9  growth in median household income in Florida over the most

10  recent five years.  Median household income in Florida shall

11  be that established and published by the United States

12  Department of Commerce or its successor.  State appropriations

13  for the prior fiscal year shall be multiplied by the growth

14  percentage and that product added to the prior fiscal year's

15  state appropriations to establish the state appropriations

16  limitation for the fiscal year.  The state appropriations

17  limitation established under this subsection is calculated by

18  the following formula:

19

20                  SAL = (SAPFY x MHIGR%) + SAPFY

21

22  Where:

23         SAL = state appropriations limitation.

24         SAPFY = state appropriations for the prior fiscal year.

25         MHIGR% = median household income growth rate

26  percentage, averaged over the most recent five years.

27

28         (3)  State revenues collected for any fiscal year in

29  excess of the state appropriations limitation shall be

30  transferred to the budget stabilization fund until the fund

31  reaches the maximum balance specified in Section 19(g) of


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                                       HJR 87, First Engrossed/ntc



  1  Article III and thereafter shall be refunded to taxpayers as

  2  provided by general law.  For purposes of this subsection,

  3  "state revenues" includes general revenue and trust fund

  4  receipts, but does not include federal fund receipts.

  5         (4)  The state appropriations limitation required by

  6  this subsection shall not apply in any fiscal year in which

  7  the governor declares a state financial emergency on the order

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

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

10  agree by a two-thirds vote of the membership of each house in

11  a separate bill that contains no other subject to suspend the

12  state appropriations limitation for that year.  Except as

13  provided herein, state revenues collected for any fiscal year

14  shall be limited to state revenues allowed under this

15  subsection for the prior fiscal year plus an adjustment for

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

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

18  income over the most recent twenty quarters times the state

19  revenues allowed under this subsection for the prior fiscal

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

21  allowed under this subsection for the prior fiscal year shall

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

23  year.  Florida personal income shall be determined by the

24  legislature, from information available from the United States

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

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

27  revenues collected for any fiscal year in excess of this

28  limitation shall be transferred to the budget stabilization

29  fund until the fund reaches the maximum balance specified in

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

31  to taxpayers as provided by general law.  State revenues


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                                       HJR 87, First Engrossed/ntc



  1  allowed under this subsection for any fiscal year may be

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

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

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

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

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

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

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

  9  by the legislature on individuals, businesses, or agencies

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

11  include:  revenues that are necessary to meet the requirements

12  set forth in documents authorizing the issuance of bonds by

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

14  for the federal Medicaid program with the exception of the

15  revenues used to support the Public Medical Assistance Trust

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

17  matching funds used to fund elective expansions made after

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

19  prizes; receipts of the Florida Hurricane Catastrophe Fund;

20  balances carried forward from prior fiscal years; taxes,

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

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

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

24  imposed by any amendment or revision to this constitution

25  after July 1, 1994.  An adjustment to the appropriation

26  revenue limitation shall be made by general law to reflect the

27  fiscal impact of transfers of responsibility for the funding

28  of governmental functions between the state and other levels

29  of government.  The legislature shall, by general law,

30  prescribe procedures necessary to administer this subsection.

31                           ARTICLE XII


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                                       HJR 87, First Engrossed/ntc



  1                             SCHEDULE

  2         SECTION 21.  State appropriations revenue

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

  4  limiting state appropriations, if adopted at the general

  5  election in November 2002, revenues shall take effect January

  6  1, 2003 1995, and shall first be applicable to state fiscal

  7  year 2003-2004 1995-1996.

  8         BE IT FURTHER RESOLVED that in accordance with the

  9  requirements of section 101.161, Florida Statutes, the title

10  and substance of the amendments proposed herein shall appear

11  on the ballot as follows:

12                LIMITATION ON STATE APPROPRIATIONS

13         Replaces the state revenue limitation with an

14  appropriations limitation that limits state appropriations for

15  any fiscal year to state appropriations for the prior fiscal

16  year plus a growth adjustment.  Bases the growth adjustment on

17  Florida median household income rather than on the aggregate

18  personal income of Floridians.  Continues transfer of excess

19  revenues to the Budget Stabilization Fund, until fully funded,

20  and refund of the rest to taxpayers pursuant to general law.

21  Suspends the limitation in fiscal years of major financial

22  emergency declared by the Governor and approved by the

23  Legislature by extraordinary vote in a separate bill

24  containing no other subject.

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