HB 1163 2003
1	A bill to be entitled
2	An act relating to school district capital outlay revenue;
3	amending s. 125.01, F.S.; providing that a county in which
4	the school board is receiving certain intangible tax
5	revenues or levying the local option sales surtax is
6	prohibited from levying school impact fees; amending s.
7	199.292, F.S.; providing for transfer of a portion of
8	nonrecurring intangible personal property tax revenues to
9	the School District Capital Outlay Trust Fund; providing
10	for distribution of a portion of such revenues to school
11	districts that collected impact fee revenues in fiscal
12	year 2002-2003 to supplant such impact fees; providing
13	requirements for distribution of the remainder of such
14	revenues to all school districts; amending s. 212.054,
15	F.S.; providing for application of certain notice
16	requirements for levy of the surtax; amending ss. 212.055,
17	1011.71, F.S.; providing that school boards may levy a
18	local option sales surtax in lieu of levying all or a part
19	of the nonvoted district school capital improvement
20	millage; authorizing levy of such surtax by resolution and
21	providing requirements with respect thereto; providing for
22	uses of the surtax proceeds; amending s. 1013.15, F.S.,
23	relating to lease or rental of educational facilities and
24	sites, and s. 1013.64, F.S., relating to requests for
25	funding from the Special Facility Construction Account, to
26	conform; providing a contingent effective date.
27
28	Be It Enacted by the Legislature of the State of Florida:
29
30	Section 1. Subsection (8) is added to section 125.01,
31	Florida Statutes, to read:
32	125.01 Powers and duties.--
33	(8) Any county in which the school board is receiving
34	intangible personal property tax revenues pursuant to s.
35	199.292(2) or levying the local option sales surtax pursuant to
36	ss. 212.055(8) and 1011.71(2) is prohibited from levying any
37	impact fee for school purposes.
38	Section 2. Section 199.292, Florida Statutes, is amended
39	to read:
40	199.292 Disposition of intangible personal property
41	taxes.--All intangible personal property taxes collected
42	pursuant to this chapter shall be placed in a special fund
43	designated as the "Intangible Tax Trust Fund." The fund shall be
44	disbursed as follows:
45	(1) Revenues derived from the annual tax on a leasehold
46	described in s. 199.023(1)(d) shall be returned to the local
47	school board for the county in which the property subject to the
48	leasehold is situated.
49	(2) Sixty-two and three-tenths percent of the revenues
50	derived from the nonrecurring tax imposed by s. 199.133 shall be
51	transferred to the School District Capital Outlay Trust Fund.
52	These funds shall be distributed in the following manner:
53	(a) An amount equal to school impact fee collections in
54	fiscal year 2002-2003 shall be distributed to the school
55	districts that collected such fees to supplant their school
56	impact fees. When any such school district levies a local option
57	sales surtax pursuant to ss. 212.055(8) and 1011.71(2), it will
58	not be eligible to receive funds under this paragraph but will
59	remain eligible to receive funds under paragraph (b).
60	(b) The balance of these revenues shall be distributed to
61	all school districts as follows:
62	1. Twenty-five percent of the balance shall be distributed
63	pro rata to the districts based on each district's percentage of
64	base capital outlay full-time-equivalent membership, and 65
65	percent of the balance shall be distributed pro rata to the
66	districts based on each district's percentage of gross capital
67	outlay full-time-equivalent membership as specified for the
68	allocation of funds from the Public Education Capital Outlay and
69	Debt Service Trust Fund by s. 1013.64(3).
70	2. Ten percent of the balance shall be allocated among the
71	district school boards according to the allocation formula in s.
72	1013.64(1)(a).
73	(3)(2) There is herebyappropriated annually out of the
74	fund the amount necessary for the effective and efficient
75	administration and enforcement by the department of the
76	provisions of chapters 192, 193, 194, 195, 196, 197, and 198 and
77	this chapter.
78	(4)(3)Of the remaining intangible personal property taxes
79	collected, the balance shall be transferred to the General
80	Revenue Fund of the state.
81	Section 3. Subsection (7) of section 212.054, Florida
82	Statutes, is amended to read:
83	212.054 Discretionary sales surtax; limitations,
84	administration, and collection.--
85	(7)(a) The governing body of any county levying a
86	discretionary sales surtax or the school board of any county
87	levying the school capital outlay surtax authorized by s.
88	212.055(6) or (8)shall notify the department within 10 days
89	after final adoption by ordinance, resolution,or referendum of
90	an imposition, termination, or rate change of the surtax, but no
91	later than November 16 prior to the effective date. The notice
92	must specify the time period during which the surtax will be in
93	effect and the rate and must include a copy of the ordinance or
94	resolutionand such other information as the department requires
95	by rule. Failure to timely provide such notification to the
96	department shall result in the delay of the effective date for a
97	period of 1 year.
98	(b) In addition to the notification required by paragraph
99	(a), the governing body of any county proposing to levy a
100	discretionary sales surtax or the school board of any county
101	proposing to levy the school capital outlay surtax authorized by
102	s. 212.055(6) or (8)shall notify the department by October 1 if
103	the referendum or consideration of the ordinance or resolution
104	that would result in imposition, termination, or rate change of
105	the surtax is scheduled to occur on or after October 1 of that
106	year. Failure to timely provide such notification to the
107	department shall result in the delay of the effective date for a
108	period of 1 year.
109	Section 4. Subsection (8) is added to section 212.055,
110	Florida Statutes, to read:
111	212.055 Discretionary sales surtaxes; legislative intent;
112	authorization and use of proceeds.--It is the legislative intent
113	that any authorization for imposition of a discretionary sales
114	surtax shall be published in the Florida Statutes as a
115	subsection of this section, irrespective of the duration of the
116	levy. Each enactment shall specify the types of counties
117	authorized to levy; the rate or rates which may be imposed; the
118	maximum length of time the surtax may be imposed, if any; the
119	procedure which must be followed to secure voter approval, if
120	required; the purpose for which the proceeds may be expended;
121	and such other requirements as the Legislature may provide.
122	Taxable transactions and administrative procedures shall be as
123	provided in s. 212.054.
124	(8) SCHOOL CAPITAL OUTLAY MILLAGE EXCHANGE SURTAX.--
125	(a) The school board in any county may levy by resolution
126	a discretionary sales surtax of 1 percent in lieu of levying 2
127	mills of ad valorem tax under s. 1011.71(2), or a discretionary
128	sales surtax of 0.5 percent in lieu of levying 1 mill of ad
129	valorem tax under s. 1011.71(2). If a school board that is
130	levying millage under s. 1011.71(2) levies the discretionary
131	sales surtax under this subsection at the rate of 1 percent, it
132	must reduce the millage it levies under s. 1011.71(2) by 2
133	mills. If a school board that is levying millage under s.
134	1011.71(2) levies the discretionary sales surtax under this
135	subsection at the rate of 0.5 percent, it must reduce the
136	millage it levies under s. 1011.71(2) by 1 mill.
137	(b) The resolution levying a discretionary sales surtax
138	under this subsection shall set forth a plan for the use of
139	surtax proceeds for school capital outlay projects.
140	(c) The proceeds of a discretionary sales surtax levied
141	under this subsection shall be used by the school district only
142	for those purposes specified in s. 1011.71(2) and (5).
143	(d) Surtax proceeds collected by the Department of Revenue
144	pursuant to this subsection shall be distributed to the school
145	board imposing the surtax in accordance with law.
146	Section 5. Section 1011.71, Florida Statutes, is amended
147	to read:
148	1011.71 District school tax.--
149	(1) If the district school tax is not provided in the
150	General Appropriations Act or the substantive bill implementing
151	the General Appropriations Act, each district school board
152	desiring to participate in the state allocation of funds for
153	current operation as prescribed by s. 1011.62(9) shall levy on
154	the taxable value for school purposes of the district, exclusive
155	of millage voted under the provisions of s. 9(b) or s. 12, Art.
156	VII of the State Constitution, a millage rate not to exceed the
157	amount certified by the commissioner as the minimum millage rate
158	necessary to provide the district required local effort for the
159	current year, pursuant to s. 1011.62(4)(a)1. In addition to the
160	required local effort millage levy, each district school board
161	may levy a nonvoted current operating discretionary millage. The
162	Legislature shall prescribe annually in the appropriations act
163	the maximum amount of millage a district may levy. The millage
164	rate prescribed shall exceed zero mills but shall not exceed the
165	lesser of 1.6 mills or 25 percent of the millage which is
166	required pursuant to s. 1011.62(4), exclusive of millage levied
167	pursuant to subsection (2).
168	(2) In addition to the maximum millage levy as provided in
169	subsection (1), each school board may levy up tonot more than2
170	mills against the taxable value for school purposes or, in lieu
171	of a levy of 2 mills, a school board may levy a 1-cent local
172	option sales surtax in accordance with s. 212.055(8), or in lieu
173	of 1 mill of such levy a school board may levy a 0.5-cent local
174	option sales surtax in accordance with s. 212.055(8). This
175	millage or sales surtax levy shall be usedto fund:
176	(a) New construction and remodeling projects, as set forth
177	in s. 1013.64(3)(b) and (6)(b) and included in the district's
178	educational plant survey pursuant to s. 1013.31, without regard
179	to prioritization, sites and site improvement or expansion to
180	new sites, existing sites, auxiliary facilities, athletic
181	facilities, or ancillary facilities.
182	(b) Maintenance, renovation, and repair of existing school
183	plants or of leased facilities to correct deficiencies pursuant
184	to s. 1013.15(2).
185	(c) The purchase, lease-purchase, or lease of school
186	buses; drivers' education vehicles; motor vehicles used for the
187	maintenance or operation of plants and equipment; security
188	vehicles; or vehicles used in storing or distributing materials
189	and equipment.
190	(d) The purchase, lease-purchase, or lease of new and
191	replacement equipment.
192	(e) Payments for educational facilities and sites due
193	under a lease-purchase agreement entered into by a district
194	school board pursuant to s. 1003.02(1)(f) or s. 1013.15(2), not
195	exceeding, in the aggregate, an amount equal to three-fourths of
196	the proceeds from the millage or sales surtaxlevied by a
197	district school board pursuant to this subsection.
198	(f) Payment of loans approved pursuant to ss. 1011.14 and
199	1011.15.
200	(g) Payment of costs directly related to complying with
201	state and federal environmental statutes, rules, and regulations
202	governing school facilities.
203	(h) Payment of costs of leasing relocatable educational
204	facilities, of renting or leasing educational facilities and
205	sites pursuant to s. 1013.15(2), or of renting or leasing
206	buildings or space within existing buildings pursuant to s.
207	1013.15(4).
208
209	Violations of these expenditure provisions shall result in an
210	equal dollar reduction in the Florida Education Finance Program
211	(FEFP) funds for the violating district in the fiscal year
212	following the audit citation.
213	(3) These ad valoremtaxes shall be certified, assessed,
214	and collected as prescribed in s. 1011.04 and shall be expended
215	as provided by law.
216	(4) Nothing in s. 1011.62(4)(a)1. shall in any way be
217	construed to increase the maximum school millage levies as
218	provided for in subsection (1).
219	(5)(a) It is the intent of the Legislature that, by July
220	1, 2003, revenue generated by the millage or local option sales
221	surtaxlevy authorized by subsection (2) should be used only for
222	the costs of construction, renovation, remodeling, maintenance,
223	and repair of the educational plant; for the purchase, lease, or
224	lease-purchase of equipment, educational plants, and
225	construction materials directly related to the delivery of
226	student instruction; for the rental or lease of existing
227	buildings, or space within existing buildings, originally
228	constructed or used for purposes other than education, for
229	conversion to use as educational facilities; for the opening day
230	collection for the library media center of a new school; for the
231	purchase, lease-purchase, or lease of school buses; and for
232	servicing of payments related to certificates of participation
233	issued for any purpose prior to the effective date of this act.
234	Costs associated with the lease-purchase of equipment,
235	educational plants, and school buses may include the issuance of
236	certificates of participation on or after the effective date of
237	this act and the servicing of payments related to certificates
238	so issued. For purposes of this section, "maintenance and
239	repair" is defined in s. 1013.01.
240	(b) For purposes not delineated in paragraph (a) for which
241	proceeds received from millage or a local option sales surtax
242	levied under subsection (2) may be legally expended, a district
243	school board may spend no more than the following percentages of
244	the amount the district spent for these purposes in fiscal year
245	1995-1996:
246	1. In fiscal year 2000-2001, 40 percent.
247	2. In fiscal year 2001-2002, 25 percent.
248	3. In fiscal year 2002-2003, 10 percent.
249	(c) Beginning July 1, 2003, revenue generated by the
250	millage or local option sales surtaxlevy authorized by
251	subsection (2) must be used only for the purposes delineated in
252	paragraph (a).
253	(d) Notwithstanding any other provision of this
254	subsection, if through its adopted educational facilities plan a
255	district has clearly identified the need for an ancillary plant,
256	has provided opportunity for public input as to the relative
257	value of the ancillary plant versus an educational plant, and
258	has obtained public approval, the district may use revenue
259	generated by the millage or local option sales surtaxlevy
260	authorized by subsection(2) for the acquisition, construction,
261	renovation, remodeling, maintenance, or repair of an ancillary
262	plant.
263
264	A district that violates these expenditure restrictions shall
265	have an equal dollar reduction in funds appropriated to the
266	district under s. 1011.62 in the fiscal year following the audit
267	citation. The expenditure restrictions do not apply to any
268	school district that certifies to the Commissioner of Education
269	that all of the district's instructional space needs for the
270	next 5 years can be met from capital outlay sources that the
271	district reasonably expects to receive during the next 5 years
272	or from alternative scheduling or construction, leasing,
273	rezoning, or technological methodologies that exhibit sound
274	management.
275	(6) In addition to the maximum millage levied under this
276	section and the General Appropriations Act, a school district
277	may levy, by local referendum or in a general election,
278	additional millage for school operational purposes up to an
279	amount that, when combined with nonvoted millage levied under
280	this section, does not exceed the 10-mill limit established in
281	s. 9(b), Art. VII of the State Constitution. Any such levy shall
282	be for a maximum of 4 years and shall be counted as part of the
283	10-mill limit established in s. 9(b), Art. VII of the State
284	Constitution. Millage elections conducted under the authority
285	granted pursuant to this section are subject to s. 1011.73.
286	Funds generated by such additional millage do not become a part
287	of the calculation of the Florida Education Finance Program
288	total potential funds in 2001-2002 or any subsequent year and
289	must not be incorporated in the calculation of any hold-harmless
290	or other component of the Florida Education Finance Program
291	formula in any year. If an increase in required local effort,
292	when added to existing millage levied under the 10-mill limit,
293	would result in a combined millage in excess of the 10-mill
294	limit, any millage levied pursuant to this subsection shall be
295	considered to be required local effort to the extent that the
296	district millage would otherwise exceed the 10-mill limit.
297	Section 6. Paragraph (a) of subsection (2) and paragraph
298	(a) of subsection (4) of section 1013.15, Florida Statutes, are
299	amended to read:
300	1013.15 Lease, rental, and lease-purchase of educational
301	facilities and sites.--
302	(2)(a) A district school board may rent or lease
303	educational facilities and sites as defined in s. 1013.01.
304	Educational facilities and sites rented or leased for 1 year or
305	less shall be funded through the operations budget or local
306	option sales surtaxor funds derived from millage proceeds
307	pursuant to s. 1011.71(2). A lease contract for 1 year or less,
308	when extended or renewed beyond a year, becomes a multiple-year
309	lease. Operational funds or funds derived from millage or local
310	option sales surtaxproceeds pursuant to s. 1011.71(2) may be
311	authorized to be expended for multiple-year leases. All leased
312	facilities and sites must be inspected prior to occupancy by the
313	authority having jurisdiction.
314	1. All newly leased spaces must be inspected and brought
315	into compliance with the Florida Building Code pursuant to
316	chapter 553 and the life safety codes pursuant to chapter 633,
317	prior to occupancy, using the board's operations budget or funds
318	derived from millage or local option sales surtaxproceeds
319	pursuant to s. 1011.71(2).
320	2. Plans for renovation or remodeling of leased space
321	shall conform to the Florida Building Code and the Florida Fire
322	Prevention Code for educational occupancies or other
323	occupancies, as appropriate and as required in chapters 553 and
324	633, prior to occupancy.
325	3. All leased facilities must be inspected annually for
326	firesafety deficiencies in accordance with the applicable code
327	and have corrections made in accordance with s. 1013.12.
328	Operational funds or funds derived from millage or local option
329	sales surtaxproceeds pursuant to s. 1011.71(2) may be used to
330	correct deficiencies in leased space.
331	4. When the board declares that a public emergency exists,
332	it may take up to 30 days to bring the leased facility into
333	compliance with the requirements of State Board of Education
334	rules.
335	(4)(a) A board may rent or lease existing buildings, or
336	space within existing buildings, originally constructed or used
337	for purposes other than education, for conversion to use as
338	educational facilities. Such buildings rented or leased for 1
339	year or less shall be funded through the operations budget or
340	funds derived from millage or a local option sales surtax
341	pursuant to s. 1011.71(2). A rental agreement or lease contract
342	for 1 year or less, when extended or renewed beyond a year,
343	becomes a multiple-year rental or lease. Operational funds or
344	funds derived from millage or local option sales surtaxproceeds
345	pursuant to s. 1011.71(2) may be authorized to be expended for
346	multiple-year rentals or leases. Notwithstanding any other
347	provisions of this section, if a building was constructed in
348	conformance with all applicable building and life safety codes,
349	it shall be deemed to meet the requirements for use and
350	occupancy as an educational facility subject only to the
351	provisions of this subsection.
352	Section 7. Paragraph (a) of subsection (2) and paragraph
353	(c) of subsection (3) of section 1013.64, Florida Statutes, are
354	amended to read:
355	1013.64 Funds for comprehensive educational plant needs;
356	construction cost maximums for school district capital
357	projects.--Allocations from the Public Education Capital Outlay
358	and Debt Service Trust Fund to the various boards for capital
359	outlay projects shall be determined as follows:
360	(2)(a) The department shall establish, as a part of the
361	Public Education Capital Outlay and Debt Service Trust Fund, a
362	separate account, in an amount determined by the Legislature, to
363	be known as the "Special Facility Construction Account." The
364	Special Facility Construction Account shall be used to provide
365	necessary construction funds to school districts which have
366	urgent construction needs but which lack sufficient resources at
367	present, and cannot reasonably anticipate sufficient resources
368	within the period of the next 3 years, for these purposes from
369	currently authorized sources of capital outlay revenue. A school
370	district requesting funding from the Special Facility
371	Construction Account shall submit one specific construction
372	project, not to exceed one complete educational plant, to the
373	Special Facility Construction Committee. No district shall
374	receive funding for more than one approved project in any 3-year
375	period. The first year of the 3-year period shall be the first
376	year a district receives an appropriation. The department shall
377	encourage a construction program that reduces the average size
378	of schools in the district. The request must meet the following
379	criteria to be considered by the committee:
380	1. The project must be deemed a critical need and must be
381	recommended for funding by the Special Facility Construction
382	Committee. Prior to developing plans for the proposed facility,
383	the district school board must request a preapplication review
384	by the Special Facility Construction Committee or a project
385	review subcommittee convened by the committee to include two
386	representatives of the department and two staff from school
387	districts not eligible to participate in the program. Within 60
388	days after receiving the preapplication review request, the
389	committee or subcommittee must meet in the school district to
390	review the project proposal and existing facilities. To
391	determine whether the proposed project is a critical need, the
392	committee or subcommittee shall consider, at a minimum, the
393	capacity of all existing facilities within the district as
394	determined by the Florida Inventory of School Houses; the
395	district's pattern of student growth; the district's existing
396	and projected capital outlay full-time equivalent student
397	enrollment as determined by the department; the district's
398	existing satisfactory student stations; the use of all existing
399	district property and facilities; grade level configurations;
400	and any other information that may affect the need for the
401	proposed project.
402	2. The construction project must be recommended in the
403	most recent survey or surveys by the district under the rules of
404	the State Board of Education.
405	3. The construction project must appear on the district's
406	approved project priority list under the rules of the State
407	Board of Education.
408	4. The district must have selected and had approved a site
409	for the construction project in compliance with s. 1013.36 and
410	the rules of the State Board of Education.
411	5. The district shall have developed a district school
412	board adopted list of facilities that do not exceed the norm for
413	net square feet occupancy requirements under the State
414	Requirements for Educational Facilities, using all possible
415	programmatic combinations for multiple use of space to obtain
416	maximum daily use of all spaces within the facility under
417	consideration.
418	6. Upon construction, the total cost per student station,
419	including change orders, must not exceed the cost per student
420	station as provided in subsection(6).
421	7. There shall be an agreement signed by the district
422	school board stating that it will advertise for bids within 30
423	days of receipt of its encumbrance authorization from the
424	department.
425	8. The district shall, at the time of the request and for
426	a continuing period of 3 years, levy a millage or surtax, or
427	combination thereof, underthe maximum millage against their
428	nonexempt assessed property value as allowed in s. 1011.71(2)
429	which generates an amount that is at least equal to the amount
430	that would be generated by levy of the maximum millage rate
431	authorized by s. 1011.71(2)or shall raise an equivalent amount
432	of revenue from the school capital outlay surtax authorized
433	under s. 212.055(6). Any district with a new or active project,
434	funded under the provisions of this subsection, shall be
435	required to budget no more than the value of 1.5 mills per year
436	to the project to satisfy the annual participation requirement
437	in the Special Facility Construction Account.
438	9. If a contract has not been signed 90 days after the
439	advertising of bids, the funding for the specific project shall
440	revert to the Special Facility New Construction Account to be
441	reallocated to other projects on the list. However, an
442	additional 90 days may be granted by the commissioner.
443	10. The department shall certify the inability of the
444	district to fund the survey-recommended project over a
445	continuous 3-year period using projected capital outlay revenue
446	derived from s. 9(d), Art. XII of the State Constitution, as
447	amended, paragraph (3)(a) of this section, and s. 1011.71(2).
448	11. The district shall have on file with the department an
449	adopted resolution acknowledging its 3-year commitment of all
450	unencumbered and future revenue acquired from s. 9(d), Art. XII
451	of the State Constitution, as amended, paragraph (3)(a) of this
452	section, and s. 1011.71(2).
453	12. Final phase III plans must be certified by the board
454	as complete and in compliance with the building and life safety
455	codes prior to August 1.
456	(3)
457	(c) A district school board may lease relocatable
458	educational facilities for up to 3 years using nonbonded PECO
459	funds and for any time period using local capital outlay millage
460	or local option sales surtax revenues authorized by s.
461	212.055(8).
462	Section 8. This act shall take effect July 1, 2003, if
463	House Bill ___ or similar legislation creating the School
464	District Capital Outlay Trust Fund is adopted in the same
465	legislative session or an extension thereof and becomes law.