HB 1853 2003
1	A bill to be entitled
2	An act relating to the Budget Stabilization Fund; amending
3	s. 216.222, F.S.; providing for transferring moneys from
4	the fund to the General Revenue Fund in an emergency;
5	specifying conditions of an emergency; requiring a self-
6	insurance reserve fund to be maintained at certain levels;
7	providing for transfers from the Budget Stabilization Fund
8	to the State Risk Management Trust Fund under certain
9	circumstances; providing limitations; providing an
10	effective date.
11
12	WHEREAS, the Division of Risk Management provides property
13	insurance coverage for all agencies within the executive,
14	legislative, and judicial branches of state government, and
15	WHEREAS, the state self-insures for the first $2 million of
16	each loss with an annual aggregate of $5 million and a $100,000
17	trailing deductible and for the first $4 million of each loss
18	for windstorm with an aggregate of $8 million, and $100,000 per
19	occurrence trailing, and
20	WHEREAS, coverage above the retained amount is obtained
21	through a series of coverages, and
22	WHEREAS, the first level of insurance purchased, which is
23	the amount above the coverage retained by the state up to
24	coverage of $20 million, has become increasingly costly, and
25	WHEREAS, since September 11, 2001, coverage has not only
26	increased in cost but provides less coverage, and
27	WHEREAS, in the last 10-year period, there has been only
28	one year in which claims have exceeded $2 million, and
29	WHEREAS, coverage above the retained amount up to $20
30	million costs over $6 million in the current fiscal year, and
31	WHEREAS, insurance over the $20 million level is readily
32	obtainable and more reasonably priced such that it is in the
33	best interest of the state to purchase insurance coverage for
34	losses exceeding the $20 million level, and
35	WHEREAS, the Legislature finds that property losses in
36	excess of the coverage retained by the state constitute an
37	emergency situation upon which it is appropriate to use moneys
38	from the Budget Stabilization Fund to cover such losses, NOW,
39	THEREFORE,
40
41	Be It Enacted by the Legislature of the State of Florida:
42
43	Section 1. Section 216.222, Florida Statutes, is amended
44	to read:
45	216.222 Budget Stabilization Fund; criteria for
46	withdrawing moneys.--Moneys in the Budget Stabilization Fund may
47	be transferred to the General Revenue Fund for:
48	(1)(a) Offsetting a deficit in the General Revenue Fund. A
49	deficit is deemed to occur when the official estimate of funds
50	available in the General Revenue Fund for a fiscal year falls
51	below the total amount appropriated from the General Revenue
52	Fund for that fiscal year. Such a transfer must be made pursuant
53	to s. 216.221, or pursuant to an appropriation by law.
54	(b) Notwithstanding the requirements of s. 216.221, if,
55	after consultation with the Revenue Estimating Conference, the
56	Comptroller believes that a deficit will occur in the General
57	Revenue Fund and if:
58	1. Fewer than 30 but more than 4 days are left in the
59	fiscal year, the Legislature is not in session, and neither the
60	Legislature nor the Legislative Budget Commission is scheduled
61	to meet before the end of the fiscal year, or
62	2. Fewer than 5 days are left in the fiscal year and the
63	Governor and the Chief Justice, the Legislature, or the
64	Legislative Budget Commission have not implemented measures to
65	resolve the deficit,
66
67	the Comptroller shall certify the deficit to the Governor, the
68	Chief Justice, the President of the Senate, and the Speaker of
69	the House of Representatives, and may thereafter withdraw funds
70	from the Budget Stabilization Fund to offset the projected
71	deficit in the General Revenue Fund. The Comptroller shall
72	consult with the Governor and the chair and vice chair of the
73	Legislative Budget Commission before any funds may be withdrawn
74	from the Budget Stabilization Fund. At the beginning of the next
75	fiscal year, the Comptroller shall promptly determine the
76	General Revenue Fund balance to be carried forward. The
77	Comptroller shall immediately repay the Budget Stabilization
78	Fund for the withdrawn amount, up to the amount of the balance.
79	If the General Revenue Fund balance carried forward is not
80	sufficient to fully repay the Budget Stabilization Fund, the
81	repayment of the remainder of the withdrawn funds shall be as
82	provided in s. 215.32(2)(c)3.
83	(2) Providing funding for an emergency as defined in s.
84	252.34. The emergency must have been declared by the Governor
85	pursuant to s. 252.36 or declared by law. Such a transfer must
86	be made pursuant to s. 252.37, subject to the conditions in that
87	section, or pursuant to an appropriation by law.
88	(3) Providing funding for an emergency as defined in this
89	subsection. For purposes of this subsection, an emergency exists
90	when the self-insurance reserve fund maintained by the Division
91	of Risk Management to cover losses to state property has been
92	depleted.
93	(a) The self-insurance reserve fund shall be maintained at
94	the same level for the same coverage as existed for fiscal year
95	2002-2003.
96	(b) At such time that the Division of Risk Management
97	certifies that the property insurance reserve has been depleted,
98	the division shall request a budget amendment through the
99	procedures set out in s. 216.181 to transfer $2 million from the
100	Budget Stabilization Fund to the State Risk Management Trust
101	Fund. Transfers shall be made in allotments of $2 million. Total
102	transfers into the fund pursuant to this paragraph in any fiscal
103	year shall not exceed $20 million.
104	(4)(3)Providing temporary transfers to the General
105	Revenue Fund pursuant to s. 215.18.
106	Section 2. This act shall take effect upon becoming a law.