HB 0011A 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 for
10	construction of the act in pari materia with laws enacted
11	during the 2003 Regular Session of the Legislature;
12	providing an effective date.
13
14	WHEREAS, the Division of Risk Management provides property
15	insurance coverage for all agencies within the executive,
16	legislative, and judicial branches of state government, and
17	WHEREAS, the state self-insures for the first $2 million of
18	each loss with an annual aggregate of $5 million and a $100,000
19	trailing deductible and for the first $4 million of each loss
20	for windstorm with an aggregate of $8 million, and $100,000 per
21	occurrence trailing, and
22	WHEREAS, coverage above the retained amount is obtained
23	through a series of coverages, and
24	WHEREAS, the first level of insurance purchased, which is
25	the amount above the coverage retained by the state up to
26	coverage of $20 million, has become increasingly costly, and
27	WHEREAS, since September 11, 2001, coverage has not only
28	increased in cost but provides less coverage, and
29	WHEREAS, in the last 10-year period, there has been only
30	one year in which claims have exceeded $2 million, and
31	WHEREAS, coverage above the retained amount up to $20
32	million costs over $6 million in the current fiscal year, and
33	WHEREAS, insurance over the $20 million level is readily
34	obtainable and more reasonably priced such that it is in the
35	best interest of the state to purchase insurance coverage for
36	losses exceeding the $20 million level, and
37	WHEREAS, the Legislature finds that property losses in
38	excess of the coverage retained by the state constitute an
39	emergency situation upon which it is appropriate to use moneys
40	from the Budget Stabilization Fund to cover such losses, NOW,
41	THEREFORE,
42
43	Be It Enacted by the Legislature of the State of Florida:
44
45	Section 1. Section 216.222, Florida Statutes, is amended
46	to read:
47	216.222 Budget Stabilization Fund; criteria for
48	withdrawing moneys.--Moneys in the Budget Stabilization Fund may
49	be transferred to the General Revenue Fund for:
50	(1)(a) Offsetting a deficit in the General Revenue Fund. A
51	deficit is deemed to occur when the official estimate of funds
52	available in the General Revenue Fund for a fiscal year falls
53	below the total amount appropriated from the General Revenue
54	Fund for that fiscal year. Such a transfer must be made pursuant
55	to s. 216.221, or pursuant to an appropriation by law.
56	(b) Notwithstanding the requirements of s. 216.221, if,
57	after consultation with the Revenue Estimating Conference, the
58	Comptroller believes that a deficit will occur in the General
59	Revenue Fund and if:
60	1. Fewer than 30 but more than 4 days are left in the
61	fiscal year, the Legislature is not in session, and neither the
62	Legislature nor the Legislative Budget Commission is scheduled
63	to meet before the end of the fiscal year, or
64	2. Fewer than 5 days are left in the fiscal year and the
65	Governor and the Chief Justice, the Legislature, or the
66	Legislative Budget Commission have not implemented measures to
67	resolve the deficit,
68
69	the Comptroller shall certify the deficit to the Governor, the
70	Chief Justice, the President of the Senate, and the Speaker of
71	the House of Representatives, and may thereafter withdraw funds
72	from the Budget Stabilization Fund to offset the projected
73	deficit in the General Revenue Fund. The Comptroller shall
74	consult with the Governor and the chair and vice chair of the
75	Legislative Budget Commission before any funds may be withdrawn
76	from the Budget Stabilization Fund. At the beginning of the next
77	fiscal year, the Comptroller shall promptly determine the
78	General Revenue Fund balance to be carried forward. The
79	Comptroller shall immediately repay the Budget Stabilization
80	Fund for the withdrawn amount, up to the amount of the balance.
81	If the General Revenue Fund balance carried forward is not
82	sufficient to fully repay the Budget Stabilization Fund, the
83	repayment of the remainder of the withdrawn funds shall be as
84	provided in s. 215.32(2)(c)3.
85	(2) Providing funding for an emergency as defined in s.
86	252.34. The emergency must have been declared by the Governor
87	pursuant to s. 252.36 or declared by law. Such a transfer must
88	be made pursuant to s. 252.37, subject to the conditions in that
89	section, or pursuant to an appropriation by law.
90	(3) Providing funding for an emergency as defined in this
91	subsection. For purposes of this subsection, an emergency exists
92	when the self-insurance reserve fund maintained by the Division
93	of Risk Management to cover losses to state property has been
94	depleted.
95	(a) The self-insurance reserve fund shall be maintained at
96	the same level for the same coverage as existed for fiscal year
97	2002-2003.
98	(b) At such time that the Division of Risk Management
99	certifies that the property insurance reserve has been depleted,
100	the division shall request a budget amendment through the
101	procedures set out in s. 216.181 to transfer $2 million from the
102	Budget Stabilization Fund to the State Risk Management Trust
103	Fund. Transfers shall be made in allotments of $2 million. Total
104	transfers into the fund pursuant to this paragraph in any fiscal
105	year shall not exceed $20 million.
106	(4)(3)Providing temporary transfers to the General
107	Revenue Fund pursuant to s. 215.18.
108	Section 2. If any law amended by this act was also amended
109	by a law enacted at the 2003 Regular Session of the Legislature,
110	such laws shall be construed as if they had been enacted at the
111	same session of the Legislature, and full effect shall be given
112	to each if possible.
113	Section 3. This act shall take effect upon becoming a law.