HOUSE AMENDMENT Bill No. HB 3A
1	CHAMBER ACTION
2	Senate House
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12	Representative Brummer offered the following:
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14	Amendment (with title amendment)
15	Between lines 30 and 31, insert:
16	Section 3. Section 175.1015, Florida Statutes, is created
17	to read:
18	175.1015 Determination of local premium tax situs.--
19	(1)(a) Any insurance company that is obligated to report
20	and remit the excise tax on property insurance premiums imposed
21	under s. 175.101 shall be held harmless from any liability for
22	taxes, interest, or penalties that would otherwise be due solely
23	as a result of an assignment of an insured property to an
24	incorrect local taxing jurisdiction if the insurance company
25	exercises due diligence in applying an electronic database
26	provided by the Department of Revenue under subsection (2).
27	Insurance companies that do not use the electronic database
28	provided by the Department of Revenue or that do not exercise
29	due diligence in applying the electronic database are subject to
30	a 0.5-percent penalty on the portion of the premium pertaining
31	to any insured risk that is improperly assigned, whether
32	assigned to an improper local taxing jurisdiction, not assigned
33	to a local taxing jurisdiction when it should be assigned to a
34	local taxing jurisdiction, or assigned to a local taxing
35	jurisdiction when it should not be assigned to a local taxing
36	jurisdiction.
37	(b) Any insurance company that is obligated to report and
38	remit the excise tax on commercial property insurance premiums
39	imposed under s. 175.101 and is unable, after due diligence, to
40	assign an insured property to a specific local taxing
41	jurisdiction for purposes of complying with paragraph(a) shall
42	remit the excise tax on commercial property insurance premiums
43	using a methodology of apportionment in a manner consistent with
44	the remittance for the 2002 calendar year.
45	(2)(a) The Department of Revenue shall, subject to
46	legislative appropriation, create as soon as practical and
47	feasible, and thereafter shall maintain, an electronic database
48	that conforms to any format approved by the American National
49	Standards Institute's Accredited Standards Committee X12 and
50	that designates for each street address and address range in the
51	state, including any multiple postal street addresses applicable
52	to one street location, the local taxing jurisdiction in which
53	the street address and address range is located, and the
54	appropriate code for each such participating local taxing
55	jurisdiction, identified by one nationwide standard numeric
56	code. The nationwide standard numeric code must contain the same
57	number of numeric digits, and each digit or combination of
58	digits must refer to the same level of taxing jurisdiction
59	throughout the United States and must be in a format similar to
60	FIPS 55-3 or other appropriate standard approved by the
61	Federation of Tax Administrators and the Multistate Tax
62	Commission. Each address or address range must be provided in
63	standard postal format, including the street number, street
64	number range, street name, and zip code. Each year after the
65	creation of the initial database, the Department of Revenue
66	shall annually create and maintain a database for the current
67	tax year. Each annual database must be calendar-year specific.
68	(b)1. Each participating local taxing jurisdiction shall
69	furnish to the Department of Revenue all information needed to
70	create the electronic database as soon as practical and
71	feasible. The information furnished to the Department of Revenue
72	must specify an effective date.
73	2. Each participating local taxing jurisdiction shall
74	furnish to the Department of Revenue all information needed to
75	create and update the current year's database, including changes
76	in annexations, incorporations, and reorganizations and any
77	other changes in jurisdictional boundaries, as well as changes
78	in eligibility to participate in the excise tax imposed under
79	this chapter. The information must specify an effective date and
80	must be furnished to the Department of Revenue by July 1 of the
81	current year.
82	3. The Department of Revenue shall create and update the
83	current year's database in accordance with the information
84	furnished by participating local taxing jurisdictions under
85	subparagraph 1. or subparagraph 2., as appropriate. To the
86	extent practicable, the Department of Revenue shall post each
87	new annual database on a web site by September 1 of each year.
88	Each participating local taxing jurisdiction shall have access
89	to this web site and, within 30 days thereafter, shall provide
90	any corrections to the Department of Revenue. The Department of
91	Revenue shall finalize the current year's database and post it
92	on a web site by November 1 of the tax year. If a dispute in
93	jurisdictional boundaries cannot be resolved so that changes in
94	boundaries may be included, as appropriate, in the database by
95	November 1, the changes may not be retroactively included in the
96	current year's database and the boundaries will remain the same
97	as in the previous year's database. The finalized database must
98	be used in assigning policies and premiums to the proper local
99	taxing jurisdiction for the insurance premium tax return due on
100	the following March 1. The Department of Revenue shall furnish
101	the annual database on magnetic or electronic media to any
102	insurance company or vendor that requests the database for the
103	sole purpose of assigning insurance premiums to the proper local
104	taxing jurisdiction for the excise tax imposed under this
105	chapter. Information contained in the electronic database is
106	conclusive for purposes of this chapter. The electronic database
107	is not an order, a rule, or a policy of general applicability.
108	4. Each annual database must identify the additions,
109	deletions, and other changes to the preceding version of the
110	database.
111	(3)(a) As used in this section, the term "due diligence"
112	means the care and attention that is expected from and is
113	ordinarily exercised by a reasonable and prudent person under
114	the circumstances.
115	(b) Notwithstanding any law to the contrary, an insurance
116	company is exercising due diligence if the insurance company
117	complies with the provisions of paragraph (1)(b) or if the
118	insurance company assigns an insured's premium to local taxing
119	jurisdictions in accordance with the Department of Revenue's
120	annual database and:
121	1. Expends reasonable resources to accurately and reliably
122	implement such method;
123	2. Maintains adequate internal controls to correctly
124	include in its database of policyholders the location of the
125	property insured, in the proper address format, so that matching
126	with the department's database is accurate; and
127	3. Corrects errors in the assignment of addresses to local
128	taxing jurisdictions within 120 days after the insurance company
129	discovers the errors.
130	(4) There is annually appropriated from the moneys
131	collected under this chapter and deposited in the Police and
132	Firefighter's Premium Tax Trust Fund an amount sufficient to pay
133	the expenses of the Department of Revenue in administering this
134	section, but not to exceed $50,000 annually, adjusted annually
135	by the lesser of a 5-percent increase or the percentage of
136	growth in the total collections.
137	(5) The Department of Revenue shall adopt rules necessary
138	to administer this section, including rules establishing
139	procedures and forms.
140	(6) Any insurer that is obligated to collect and remit the
141	tax on property insurance imposed under s. 175.101 shall be held
142	harmless from any liability for taxes, interest, or penalties
143	that would otherwise be due solely as a result of an assignment
144	of an insured property to an incorrect local taxing
145	jurisdiction, based on the collection and remission of the tax
146	accruing before January 1, 2004, if the insurer collects and
147	reports this tax consistent with filings for periods before
148	January 1, 2004. Further, any insurer that is obligated to
149	collect and remit the tax on property insurance imposed under
150	this section is not subject to an examination under s. 624.316
151	or s. 624.3161 which would occur solely as a result of an
152	assignment of an insured property to an incorrect local taxing
153	jurisdiction, based on the collection and remission of such tax
154	accruing before January 1, 2004.
155	Section 4. Section 185.085, Florida Statutes, is created
156	to read:
157	185.085 Determination of local premium tax situs.--
158	(1)(a) Any insurance company that is obligated to report
159	and remit the excise tax on casualty insurance premiums imposed
160	under s. 185.08 shall be held harmless from any liability for
161	taxes, interest, or penalties that would otherwise be due solely
162	as a result of an assignment of an insured property to an
163	incorrect local taxing jurisdiction if the insurance company
164	exercises due diligence in applying an electronic database
165	provided by the Department of Revenue under subsection (2).
166	Insurance companies that do not use the electronic database
167	provided by the Department of Revenue or that do not exercise
168	due diligence in applying the electronic database are subject to
169	a 0.5-percent penalty on the portion of the premium pertaining
170	to any insured risk that is improperly assigned, whether
171	assigned to an improper local taxing jurisdiction, not assigned
172	to a local taxing jurisdiction when it should be assigned to a
173	local taxing jurisdiction, or assigned to a local taxing
174	jurisdiction when it should not be assigned to a local taxing
175	jurisdiction.
176	(b) Any insurance company that is obligated to report and
177	remit the excise tax on commercial casualty insurance premiums
178	imposed under s. 185.08 and is unable, after due diligence, to
179	assign an insured property to a specific local taxing
180	jurisdiction for purposes of complying with paragraph(a) shall
181	remit the excise tax on commercial casualty insurance premiums
182	using a methodology of apportionment in a manner consistent with
183	the remittance for the 2002 calendar year.
184	(2)(a) The Department of Revenue shall, subject to
185	legislative appropriation, create as soon as practical and
186	feasible, and thereafter shall maintain, an electronic database
187	that conforms to any format approved by the American National
188	Standards Institute's Accredited Standards Committee X12 and
189	that designates for each street address and address range in the
190	state, including any multiple postal street addresses applicable
191	to one street location, the local taxing jurisdiction in which
192	the street address and address range is located, and the
193	appropriate code for each such participating local taxing
194	jurisdiction, identified by one nationwide standard numeric
195	code. The nationwide standard numeric code must contain the same
196	number of numeric digits, and each digit or combination of
197	digits must refer to the same level of taxing jurisdiction
198	throughout the United States and must be in a format similar to
199	FIPS 55-3 or other appropriate standard approved by the
200	Federation of Tax Administrators and the Multistate Tax
201	Commission. Each address or address range must be provided in
202	standard postal format, including the street number, street
203	number range, street name, and zip code. Each year after the
204	creation of the initial database, the Department of Revenue
205	shall annually create and maintain a database for the current
206	tax year. Each annual database must be calendar-year specific.
207	(b)1. Each participating local taxing jurisdiction shall
208	furnish to the Department of Revenue all information needed to
209	create the electronic database as soon as practical and
210	feasible. The information furnished to the Department of Revenue
211	must specify an effective date.
212	2. Each participating local taxing jurisdiction shall
213	furnish to the Department of Revenue all information needed to
214	create and update the current year's database, including changes
215	in annexations, incorporations, and reorganizations and any
216	other changes in jurisdictional boundaries, as well as changes
217	in eligibility to participate in the excise tax imposed under
218	this chapter. The information must specify an effective date and
219	must be furnished to the Department of Revenue by July 1 of the
220	current year.
221	3. The Department of Revenue shall create and update the
222	current year's database in accordance with the information
223	furnished by participating local taxing jurisdictions under
224	subparagraph 1. or subparagraph 2., as appropriate. To the
225	extent practicable, the Department of Revenue shall post each
226	new annual database on a web site by September 1 of each year.
227	Each participating local taxing jurisdiction shall have access
228	to this web site and, within 30 days thereafter, shall provide
229	any corrections to the Department of Revenue. The Department of
230	Revenue shall finalize the current year's database and post it
231	on a web site by November 1 of the tax year. If a dispute in
232	jurisdictional boundaries cannot be resolved so that changes in
233	boundaries may be included, as appropriate, in the database by
234	November 1, the changes may not be retroactively included in the
235	current year's database and the boundaries will remain the same
236	as in the previous year's database. The finalized database must
237	be used in assigning policies and premiums to the proper local
238	taxing jurisdiction for the insurance premium tax return due on
239	the following March 1. The Department of Revenue shall furnish
240	the annual database on magnetic or electronic media to any
241	insurance company or vendor that requests the database for the
242	sole purpose of assigning insurance premiums to the proper local
243	taxing jurisdiction for the excise tax imposed under this
244	chapter. Information contained in the electronic database is
245	conclusive for purposes of this chapter. The electronic database
246	is not an order, a rule, or a policy of general applicability.
247	4. Each annual database must identify the additions,
248	deletions, and other changes to the preceding version of the
249	database.
250	(3)(a) As used in this section, the term "due diligence"
251	means the care and attention that is expected from and is
252	ordinarily exercised by a reasonable and prudent person under
253	the circumstances.
254	(b) Notwithstanding any law to the contrary, an insurance
255	company is exercising due diligence if the insurance company
256	complies with the provisions of paragraph (1)(b) or if the
257	insurance company assigns an insured's premium to local taxing
258	jurisdictions in accordance with the Department of Revenue's
259	annual database and:
260	1. Expends reasonable resources to accurately and reliably
261	implement such method;
262	2. Maintains adequate internal controls to correctly
263	include in its database of policyholders the location of the
264	property insured, in the proper address format, so that matching
265	with the department's database is accurate; and
266	3. Corrects errors in the assignment of addresses to local
267	taxing jurisdictions within 120 days after the insurance company
268	discovers the errors.
269	(4) There is annually appropriated from the moneys
270	collected under this chapter and deposited in the Police and
271	Firefighter's Premium Tax Trust Fund an amount sufficient to pay
272	the expenses of the Department of Revenue in administering this
273	section, but not to exceed $50,000 annually, adjusted annually
274	by the lesser of a 5-percent increase or the percentage of
275	growth in the total collections.
276	(5) The Department of Revenue shall adopt rules necessary
277	to administer this section, including rules establishing
278	procedures and forms.
279	(6)(a) Notwithstanding any other law, no methodology,
280	formula, or database that is adopted in any year after January
281	1, 2004, may result in a distribution to a participating
282	municipality that has a retirement plan created pursuant to this
283	chapter of an amount of excise tax which is less than the amount
284	distributed to such participating municipality for calendar year
285	2003. However, if the total proceeds to be distributed for the
286	current year from the excise tax imposed under s. 185.08 are
287	less than the total amount distributed for calendar year 2003,
288	each participating municipality shall receive a current year
289	distribution that is proportionate to its share of the total
290	2003 calendar year distribution. If the total proceeds to be
291	distributed for the current year from the excise tax imposed
292	under s. 185.08 are greater than or equal to the total amount
293	distributed for calendar year 2003, each participating
294	municipality shall initially be distributed a minimum amount
295	equal to the amount received for calendar year 2003. The
296	remaining amount to be distributed for the current year, which
297	equals the total to be distributed for the current year, less
298	minimum distribution amount, shall be distributed to those
299	municipalities with a current-year reported amount that is
300	greater than the amount distributed to such municipality for
301	calendar year 2003. Each municipality eligible for distribution
302	of this remaining amount shall receive its proportionate share
303	of the remaining amount based upon the amount reported for that
304	municipality, above the calendar year 2003 distribution for the
305	current year, to the total amount over the calendar year 2003
306	distribution for all municipalities with a current year reported
307	amount that is greater than the calendar year 2003 distribution.
308	(b) If a new municipality elects to participate under this
309	chapter during any year after January 1, 2004, such municipality
310	shall receive the total amount reported for the current year for
311	such municipality. All other participating municipalities shall
312	receive a current year distribution, calculated as provided in
313	this section, which is proportionate to their share of the total
314	2003 calendar year distribution after subtracting the amount
315	paid to the new participating plans.
316	(c) This subsection expires January 1, 2007.
317	(7) Any insurer that is obligated to collect and remit the
318	tax on casualty insurance imposed under s. 185.08 shall be held
319	harmless from any liability for taxes, interest, or penalties
320	that would otherwise be due solely as a result of an assignment
321	of an insured risk to an incorrect local taxing jurisdiction,
322	based on the collection and remission of the tax accruing before
323	January 1, 2004, if the insurer collects and reports this tax
324	consistent with filings for periods before January 1, 2004.
325	Further, any insurer that is obligated to collect and remit the
326	tax on casualty insurance imposed under this section is not
327	subject to an examination under s. 624.316 or s. 624.3161 which
328	would occur solely as a result of an assignment of an insured
329	risk to an incorrect local taxing jurisdiction, based on the
330	collection and remission of such tax accruing before the
331	effective date of this section.
332	Section 5. Subsection (1) of section 175.351, Florida
333	Statutes, is amended to read:
334	175.351 Municipalities and special fire control districts
335	having their own pension plans for firefighters.--For any
336	municipality, special fire control district, local law
337	municipality, local law special fire control district, or local
338	law plan under this chapter, in order for municipalities and
339	special fire control districts with their own pension plans for
340	firefighters, or for firefighters and police officers, where
341	included, to participate in the distribution of the tax fund
342	established pursuant to s. 175.101, local law plans must meet
343	the minimum benefits and minimum standards set forth in this
344	chapter.
345	(1) PREMIUM TAX INCOME.--If a municipality has a pension
346	plan for firefighters, or a pension plan for firefighters and
347	police officers, where included, which in the opinion of the
348	division meets the minimum benefits and minimum standards set
349	forth in this chapter, the board of trustees of the pension
350	plan, as approved by a majority of firefighters of the
351	municipality, may:
352	(a) Place the income from the premium tax in s. 175.101 in
353	such pension plan for the sole and exclusive use of its
354	firefighters, or for firefighters and police officers, where
355	included, where it shall become an integral part of that pension
356	plan and shall be used to pay extra benefits to the firefighters
357	included in that pension plan; or
358	(b) Place the income from the premium tax in s. 175.101 in
359	a separate supplemental plan to pay extra benefits to
360	firefighters, or to firefighters and police officers where
361	included, participating in such separate supplemental plan.
362
363	The premium tax provided by this chapter shall in all cases be
364	used in its entirety to provide extra benefits to firefighters,
365	or to firefighters and police officers, where included.
366	However, local law plans in effect on October 1, 1998, shall be
367	required to comply with the minimum benefit provisions of this
368	chapter only to the extent that additional premium tax revenues
369	become available to incrementally fund the cost of such
370	compliance as provided in s. 175.162(2)(a). When a plan is in
371	compliance with such minimum benefit provisions, as subsequent
372	additional premium tax revenues become available, they shall be
373	used to provide extra benefits. For the purpose of this chapter,
374	"additional premium tax revenues" means revenues received by a
375	municipality or special fire control district pursuant to s.
376	175.121 whichthatexceed that amount received for calendar year
377	1997,and the term "extra benefits" means benefits in addition
378	to or greater than those provided to general employees of the
379	municipality and in addition to those in existence for
380	firefighters on March 12, 1999. Local law plans created by
381	special act before May 23, 1939, shall be deemed to comply with
382	this chapter.
383	Section 6. Subsection (1) of section 185.35, Florida
384	Statutes, is amended to read:
385	185.35 Municipalities having their own pension plans for
386	police officers.--For any municipality, chapter plan, local law
387	municipality, or local law plan under this chapter, in order for
388	municipalities with their own pension plans for police officers,
389	or for police officers and firefighters where included, to
390	participate in the distribution of the tax fund established
391	pursuant to s. 185.08, local law plans must meet the minimum
392	benefits and minimum standards set forth in this chapter:
393	(1) PREMIUM TAX INCOME.--If a municipality has a pension
394	plan for police officers, or for police officers and
395	firefighters where included, which, in the opinion of the
396	division, meets the minimum benefits and minimum standards set
397	forth in this chapter, the board of trustees of the pension
398	plan, as approved by a majority of police officers of the
399	municipality, may:
400	(a) Place the income from the premium tax in s. 185.08 in
401	such pension plan for the sole and exclusive use of its police
402	officers, or its police officers and firefighters where
403	included, where it shall become an integral part of that pension
404	plan and shall be used to pay extra benefits to the police
405	officers included in that pension plan; or
406	(b) May place the income from the premium tax in s. 185.08
407	in a separate supplemental plan to pay extra benefits to the
408	police officers, or police officers and firefighters where
409	included, participating in such separate supplemental plan.
410
411	The premium tax provided by this chapter shall in all cases be
412	used in its entirety to provide extra benefits to police
413	officers, or to police officers and firefighters, where
414	included. However, local law plans in effect on October 1,
415	1998, shall be required to comply with the minimum benefit
416	provisions of this chapter only to the extent that additional
417	premium tax revenues become available to incrementally fund the
418	cost of such compliance as provided in s. 185.16(2). When a plan
419	is in compliance with such minimum benefit provisions, as
420	subsequent additional tax revenues become available, they shall
421	be used to provide extra benefits. For the purpose of this
422	chapter, "additional premium tax revenues" means revenues
423	received by a municipality pursuant to s. 185.10 whichthat
424	exceed the amount received for calendar year 1997,and the term
425	"extra benefits" means benefits in addition to or greater than
426	those provided to general employees of the municipality and in
427	addition to those in existence for police officers on March 12,
428	1999. Local law plans created by special act before May 23,
429	1939, shall be deemed to comply with this chapter.
430	Section 7. Subsection (7) is added to section 175.061,
431	Florida Statutes, to read:
432	175.061 Board of trustees; members; terms of office;
433	meetings; legal entity; costs; attorney's fees.--For any
434	municipality, special fire control district, chapter plan, local
435	law municipality, local law special fire control district, or
436	local law plan under this chapter:
437	(7) The board of trustees may, upon written request by the
438	retiree of the plan, or by a dependent, when authorized by the
439	retiree or the retiree's beneficiary, authorize the plan
440	administrator to withhold from the monthly retirement payment
441	those funds that are necessary to pay for the benefits being
442	received through the governmental entity from which the employee
443	retired, to pay the certified bargaining agent of the
444	governmental entity, and to make any payments required by law.
445	Section 8. Present subsection (6) of section 185.05,
446	Florida Statutes, is redesignated as subsection (7), and a new
447	subsection (6) is added to said section, to read:
448	185.05 Board of trustees; members; terms of office;
449	meetings; legal entity; costs; attorney's fees.--For any
450	municipality, chapter plan, local law municipality, or local law
451	plan under this chapter:
452	(6) The board of trustees may, upon written request by the
453	retiree of the plan, or by a dependent, when authorized by the
454	retiree or the retiree's beneficiary, authorize the plan
455	administrator to withhold from the monthly retirement payment
456	those funds that are necessary to pay for the benefits being
457	received through the governmental entity from which the employee
458	retired, to pay the certified bargaining agent of the
459	governmental entity, and to make any payments required by law.
460	Section 9. The sum of $300,000 is appropriated from the
461	General Revenue Fund to the Department of Revenue for the one-
462	time expense of creating the original database called for by
463	sections 1 and 2 of this act, and to support the implementation
464	process for use of the database. It is the intent of the
465	Legislature in providing this appropriation that the database
466	for sections 1 and 2 of this act be available for use in
467	determining the allocation of premiums to the various
468	municipalities and special fire control districts for the 2004
469	insurance premium tax return that is due by March 1, 2005.
470
471	================= T I T L E A M E N D M E N T =================
472	Between lines 6 and 7, insert:
473	creating s. 175.1015, F.S.; authorizing the Department of
474	Revenue to create and maintain a database for use by insurers
475	that report and remit an excise tax on property insurance
476	premiums; providing insurers with incentives for using the
477	database; providing penalties for failure to use the database;
478	requiring local governments to provide information to the
479	department; appropriating funds to the department for the
480	administration of the database; authorizing the department to
481	adopt rules; creating s. 185.085, F.S.; authorizing the
482	Department of Revenue to create and maintain a database for use
483	by insurers that report and remit an excise tax on casualty
484	insurers premiums; providing incentives to insurers for using
485	the database and penalties for failure to use the database;
486	requiring local governments to provide information to the
487	department; appropriating funds to the department for the
488	administration of the database; authorizing the department to
489	adopt rules; providing for distribution of tax revenues through
490	2007; amending s. 175.351, F.S.; defining the term "extra
491	benefits" with respect to pension plans for firefighters;
492	amending s. 185.35, F.S.; providing for the meaning of the term
493	"extra benefits" with respect to pension plans for municipal
494	police officers; amending s. 175.061, F.S.; authorizing the plan
495	administrator to withhold certain funds; amending s. 185.05,
496	F.S.; authorizing the plan administrator to withhold certain
497	funds; providing an appropriation to the Department of Revenue;