HOUSE AMENDMENT Bill No. HB 27B
1	CHAMBER ACTION
2	Senate House
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12	Representative Sansom offered the following:
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14	Amendment (with title amendment)
15	Remove everything after the enacting clause, and insert:
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17	Section 1. Section 175.1015, Florida Statutes, is created
18	to read:
19	175.1015 Determination of local premium tax situs.--
20	(1)(a) Any insurance company that is obligated to report
21	and remit the excise tax on property insurance premiums imposed
22	under s. 175.101 shall be held harmless from any liability for
23	taxes, interest, or penalties that would otherwise be due solely
24	as a result of an assignment of an insured property to an
25	incorrect local taxing jurisdiction if the insurance company
26	exercises due diligence in applying an electronic database
27	provided by the Department of Revenue under subsection (2).
28	Insurance companies that do not use the electronic database
29	provided by the Department of Revenue or that do not exercise
30	due diligence in applying the electronic database are subject to
31	a 0.5-percent penalty on the portion of the premium pertaining
32	to any insured risk that is improperly assigned, whether
33	assigned to an improper local taxing jurisdiction, not assigned
34	to a local taxing jurisdiction when it should be assigned to a
35	local taxing jurisdiction, or assigned to a local taxing
36	jurisdiction when it should not be assigned to a local taxing
37	jurisdiction.
38	(b) Any insurance company that is obligated to report and
39	remit the excise tax on commercial property insurance premiums
40	imposed under s. 175.101 and is unable, after due diligence, to
41	assign an insured property to a specific local taxing
42	jurisdiction for purposes of complying with paragraph (a) shall
43	remit the excise tax on commercial property insurance premiums
44	using a methodology of apportionment in a manner consistent with
45	the remittance for the 2002 calendar year.
46	(2)(a) The Department of Revenue shall, subject to
47	legislative appropriation, create as soon as practicable and
48	feasible, and thereafter shall maintain, an electronic database
49	that conforms to any format approved by the American National
50	Standards Institute's Accredited Standards Committee X12 and
51	that designates for each street address and address range in the
52	state, including any multiple postal street addresses applicable
53	to one street location, the local taxing jurisdiction in which
54	the street address and address range is located, and the
55	appropriate code for each such participating local taxing
56	jurisdiction, identified by one nationwide standard numeric
57	code. The nationwide standard numeric code must contain the same
58	number of numeric digits, and each digit or combination of
59	digits must refer to the same level of taxing jurisdiction
60	throughout the United States and must be in a format similar to
61	FIPS 55-3 or other appropriate standard approved by the
62	Federation of Tax Administrators and the Multistate Tax
63	Commission. Each address or address range must be provided in
64	standard postal format, including the street number, street
65	number range, street name, and zip code. Each year after the
66	creation of the initial database, the Department of Revenue
67	shall annually create and maintain a database for the current
68	tax year. Each annual database must be calendar-year specific.
69	(b)1. Each participating local taxing jurisdiction shall
70	furnish to the Department of Revenue all information needed to
71	create the electronic database as soon as practicable and
72	feasible. The information furnished to the Department of Revenue
73	must specify an effective date.
74	2. Each participating local taxing jurisdiction shall
75	furnish to the Department of Revenue all information needed to
76	create and update the current year's database, including changes
77	in annexations, incorporations, and reorganizations and any
78	other changes in jurisdictional boundaries, as well as changes
79	in eligibility to participate in the excise tax imposed under
80	this chapter. The information must specify an effective date and
81	must be furnished to the Department of Revenue by July 1 of the
82	current year.
83	3. The Department of Revenue shall create and update the
84	current year's database in accordance with the information
85	furnished by participating local taxing jurisdictions under
86	subparagraph 1. or subparagraph 2., as appropriate. To the
87	extent practicable, the Department of Revenue shall post each
88	new annual database on a web site by September 1 of each year.
89	Each participating local taxing jurisdiction shall have access
90	to this web site and, within 30 days thereafter, shall provide
91	any corrections to the Department of Revenue. The Department of
92	Revenue shall finalize the current year's database and post it
93	on a web site by November 1 of the tax year. If a dispute in
94	jurisdictional boundaries cannot be resolved so that changes in
95	boundaries may be included, as appropriate, in the database by
96	November 1, the changes may not be retroactively included in the
97	current year's database and the boundaries will remain the same
98	as in the previous year's database. The finalized database must
99	be used in assigning policies and premiums to the proper local
100	taxing jurisdiction for the insurance premium tax return due on
101	the following March 1. The Department of Revenue shall furnish
102	the annual database on magnetic or electronic media to any
103	insurance company or vendor that requests the database for the
104	sole purpose of assigning insurance premiums to the proper local
105	taxing jurisdiction for the excise tax imposed under this
106	chapter. Information contained in the electronic database is
107	conclusive for purposes of this chapter. The electronic database
108	is not an order, a rule, or a policy of general applicability.
109	4. Each annual database must identify the additions,
110	deletions, and other changes to the preceding version of the
111	database.
112	(3)(a) As used in this section, the term "due diligence"
113	means the care and attention that is expected from and is
114	ordinarily exercised by a reasonable and prudent person under
115	the circumstances.
116	(b) Notwithstanding any law to the contrary, an insurance
117	company is exercising due diligence if the insurance company
118	complies with the provisions of paragraph (1)(b) or if the
119	insurance company assigns an insured's premium to local taxing
120	jurisdictions in accordance with the Department of Revenue's
121	annual database and:
122	1. Expends reasonable resources to accurately and reliably
123	implement such method;
124	2. Maintains adequate internal controls to correctly
125	include in its database of policyholders the location of the
126	property insured, in the proper address format, so that matching
127	with the department's database is accurate; and
128	3. Corrects errors in the assignment of addresses to local
129	taxing jurisdictions within 120 days after the insurance company
130	discovers the errors.
131	(4) There is annually appropriated from the moneys
132	collected under this chapter and deposited in the Police and
133	Firefighter's Premium Tax Trust Fund an amount sufficient to pay
134	the expenses of the Department of Revenue in administering this
135	section, but not to exceed $50,000 annually, adjusted annually
136	by the lesser of a 5-percent increase or the percentage of
137	growth in the total collections.
138	(5) The Department of Revenue shall adopt rules necessary
139	to administer this section, including rules establishing
140	procedures and forms.
141	(6) Any insurer that is obligated to collect and remit the
142	tax on property insurance imposed under s. 175.101 shall be held
143	harmless from any liability for taxes, interest, or penalties
144	that would otherwise be due solely as a result of an assignment
145	of an insured property to an incorrect local taxing
146	jurisdiction, based on the collection and remission of the tax
147	accruing before January 1, 2004, if the insurer collects and
148	reports this tax consistent with filings for periods before
149	January 1, 2004. Further, any insurer that is obligated to
150	collect and remit the tax on property insurance imposed under
151	this section is not subject to an examination under s. 624.316
152	or s. 624.3161 which would occur solely as a result of an
153	assignment of an insured property to an incorrect local taxing
154	jurisdiction, based on the collection and remission of such tax
155	accruing before January 1, 2004.
156	Section 2. Section 185.085, Florida Statutes, is created
157	to read:
158	185.085 Determination of local premium tax situs.--
159	(1)(a) Any insurance company that is obligated to report
160	and remit the excise tax on casualty insurance premiums imposed
161	under s. 185.08 shall be held harmless from any liability for
162	taxes, interest, or penalties that would otherwise be due solely
163	as a result of an assignment of an insured property to an
164	incorrect local taxing jurisdiction if the insurance company
165	exercises due diligence in applying an electronic database
166	provided by the Department of Revenue under subsection (2).
167	Insurance companies that do not use the electronic database
168	provided by the Department of Revenue or that do not exercise
169	due diligence in applying the electronic database are subject to
170	a 0.5-percent penalty on the portion of the premium pertaining
171	to any insured risk that is improperly assigned, whether
172	assigned to an improper local taxing jurisdiction, not assigned
173	to a local taxing jurisdiction when it should be assigned to a
174	local taxing jurisdiction, or assigned to a local taxing
175	jurisdiction when it should not be assigned to a local taxing
176	jurisdiction.
177	(b) Any insurance company that is obligated to report and
178	remit the excise tax on commercial casualty insurance premiums
179	imposed under s. 185.08 and is unable, after due diligence, to
180	assign an insured property to a specific local taxing
181	jurisdiction for purposes of complying with paragraph(a) shall
182	remit the excise tax on commercial casualty insurance premiums
183	using a methodology of apportionment in a manner consistent with
184	the remittance for the 2002 calendar year.
185	(2)(a) The Department of Revenue shall, subject to
186	legislative appropriation, create as soon as practicable and
187	feasible, and thereafter shall maintain, an electronic database
188	that conforms to any format approved by the American National
189	Standards Institute's Accredited Standards Committee X12 and
190	that designates for each street address and address range in the
191	state, including any multiple postal street addresses applicable
192	to one street location, the local taxing jurisdiction in which
193	the street address and address range is located, and the
194	appropriate code for each such participating local taxing
195	jurisdiction, identified by one nationwide standard numeric
196	code. The nationwide standard numeric code must contain the same
197	number of numeric digits, and each digit or combination of
198	digits must refer to the same level of taxing jurisdiction
199	throughout the United States and must be in a format similar to
200	FIPS 55-3 or other appropriate standard approved by the
201	Federation of Tax Administrators and the Multistate Tax
202	Commission. Each address or address range must be provided in
203	standard postal format, including the street number, street
204	number range, street name, and zip code. Each year after the
205	creation of the initial database, the Department of Revenue
206	shall annually create and maintain a database for the current
207	tax year. Each annual database must be calendar-year specific.
208	(b)1. Each participating local taxing jurisdiction shall
209	furnish to the Department of Revenue all information needed to
210	create the electronic database as soon as practicable and
211	feasible. The information furnished to the Department of Revenue
212	must specify an effective date.
213	2. Each participating local taxing jurisdiction shall
214	furnish to the Department of Revenue all information needed to
215	create and update the current year's database, including changes
216	in annexations, incorporations, and reorganizations and any
217	other changes in jurisdictional boundaries, as well as changes
218	in eligibility to participate in the excise tax imposed under
219	this chapter. The information must specify an effective date and
220	must be furnished to the Department of Revenue by July 1 of the
221	current year.
222	3. The Department of Revenue shall create and update the
223	current year's database in accordance with the information
224	furnished by participating local taxing jurisdictions under
225	subparagraph 1. or subparagraph 2., as appropriate. To the
226	extent practicable, the Department of Revenue shall post each
227	new annual database on a web site by September 1 of each year.
228	Each participating local taxing jurisdiction shall have access
229	to this web site and, within 30 days thereafter, shall provide
230	any corrections to the Department of Revenue. The Department of
231	Revenue shall finalize the current year's database and post it
232	on a web site by November 1 of the tax year. If a dispute in
233	jurisdictional boundaries cannot be resolved so that changes in
234	boundaries may be included, as appropriate, in the database by
235	November 1, the changes may not be retroactively included in the
236	current year's database and the boundaries will remain the same
237	as in the previous year's database. The finalized database must
238	be used in assigning policies and premiums to the proper local
239	taxing jurisdiction for the insurance premium tax return due on
240	the following March 1. The Department of Revenue shall furnish
241	the annual database on magnetic or electronic media to any
242	insurance company or vendor that requests the database for the
243	sole purpose of assigning insurance premiums to the proper local
244	taxing jurisdiction for the excise tax imposed under this
245	chapter. Information contained in the electronic database is
246	conclusive for purposes of this chapter. The electronic database
247	is not an order, a rule, or a policy of general applicability.
248	4. Each annual database must identify the additions,
249	deletions, and other changes to the preceding version of the
250	database.
251	(3)(a) As used in this section, the term "due diligence"
252	means the care and attention that is expected from and is
253	ordinarily exercised by a reasonable and prudent person under
254	the circumstances.
255	(b) Notwithstanding any law to the contrary, an insurance
256	company is exercising due diligence if the insurance company
257	complies with the provisions of paragraph (1)(b) or if the
258	insurance company assigns an insured's premium to local taxing
259	jurisdictions in accordance with the Department of Revenue's
260	annual database and:
261	1. Expends reasonable resources to accurately and reliably
262	implement such method;
263	2. Maintains adequate internal controls to correctly
264	include in its database of policyholders the location of the
265	property insured, in the proper address format, so that matching
266	with the department's database is accurate; and
267	3. Corrects errors in the assignment of addresses to local
268	taxing jurisdictions within 120 days after the insurance company
269	discovers the errors.
270	(4) There is annually appropriated from the moneys
271	collected under this chapter and deposited in the Police and
272	Firefighter's Premium Tax Trust Fund an amount sufficient to pay
273	the expenses of the Department of Revenue in administering this
274	section, but not to exceed $50,000 annually, adjusted annually
275	by the lesser of a 5-percent increase or the percentage of
276	growth in the total collections.
277	(5) The Department of Revenue shall adopt rules necessary
278	to administer this section, including rules establishing
279	procedures and forms.
280	(6)(a) Notwithstanding any other law, no methodology,
281	formula, or database that is adopted in any year after January
282	1, 2004, may result in a distribution to a participating
283	municipality that has a retirement plan created pursuant to this
284	chapter of an amount of excise tax which is less than the amount
285	distributed to such participating municipality for calendar year
286	2003. However, if the total proceeds to be distributed for the
287	current year from the excise tax imposed under s. 185.08 are
288	less than the total amount distributed for calendar year 2003,
289	each participating municipality shall receive a current year
290	distribution that is proportionate to its share of the total
291	2003 calendar year distribution. If the total of the proceeds to
292	be distributed for the current year from the excise tax imposed
293	under s. 185.08 are greater than or equal to the total amount
294	distributed for calendar year 2003, each participating
295	municipality shall initially be distributed a minimum amount
296	equal to the amount received for calendar year 2003. The
297	remaining amount to be distributed for the current year, which
298	equals the total to be distributed for the current year, less
299	minimum distribution amount, shall be distributed to those
300	municipalities with a current-year reported amount that is
301	greater than the amount distributed to such municipality for
302	calendar year 2003. Each municipality eligible for distribution
303	of this remaining amount shall receive its proportionate share
304	of the remaining amount based upon the amount reported for that
305	municipality, above the calendar year 2003 distribution for the
306	current year, to the total amount over the calendar year 2003
307	distribution for all municipalities with a current year reported
308	amount that is greater than the calendar year 2003 distribution.
309	(b) If a new municipality elects to participate under this
310	chapter during any year after January 1, 2004, such municipality
311	shall receive the total amount reported for the current year for
312	such municipality. All other participating municipalities shall
313	receive a current year distribution, calculated as provided in
314	this section, which is proportionate to their share of the total
315	2003 calendar year distribution after subtracting the amount
316	paid to the new participating plans.
317	(c) This subsection expires January 1, 2007.
318	(7) Any insurer that is obligated to collect and remit the
319	tax on casualty insurance imposed under s. 185.08 shall be held
320	harmless from any liability for taxes, interest, or penalties
321	that would otherwise be due solely as a result of an assignment
322	of an insured risk to an incorrect local taxing jurisdiction,
323	based on the collection and remission of the tax accruing before
324	January 1, 2004, if the insurer collects and reports this tax
325	consistent with filings for periods before January 1, 2004.
326	Further, any insurer that is obligated to collect and remit the
327	tax on casualty insurance imposed under this section is not
328	subject to an examination under s. 624.316 or s. 624.3161 which
329	would occur solely as a result of an assignment of an insured
330	risk to an incorrect local taxing jurisdiction, based on the
331	collection and remission of such tax accruing before the
332	effective date of this section.
333	Section 3. Subsection (1) of section 175.351, Florida
334	Statutes, is amended to read:
335	175.351 Municipalities and special fire control districts
336	having their own pension plans for firefighters.--For any
337	municipality, special fire control district, local law
338	municipality, local law special fire control district, or local
339	law plan under this chapter, in order for municipalities and
340	special fire control districts with their own pension plans for
341	firefighters, or for firefighters and police officers, where
342	included, to participate in the distribution of the tax fund
343	established pursuant to s. 175.101, local law plans must meet
344	the minimum benefits and minimum standards set forth in this
345	chapter.
346	(1) PREMIUM TAX INCOME.--If a municipality has a pension
347	plan for firefighters, or a pension plan for firefighters and
348	police officers, where included, which in the opinion of the
349	division meets the minimum benefits and minimum standards set
350	forth in this chapter, the board of trustees of the pension
351	plan, as approved by a majority of firefighters of the
352	municipality, may:
353	(a) Place the income from the premium tax in s. 175.101 in
354	such pension plan for the sole and exclusive use of its
355	firefighters, or for firefighters and police officers, where
356	included, where it shall become an integral part of that pension
357	plan and shall be used to pay extra benefits to the firefighters
358	included in that pension plan; or
359	(b) Place the income from the premium tax in s. 175.101 in
360	a separate supplemental plan to pay extra benefits to
361	firefighters, or to firefighters and police officers where
362	included, participating in such separate supplemental plan.
363
364	The premium tax provided by this chapter shall in all cases be
365	used in its entirety to provide extra benefits to firefighters,
366	or to firefighters and police officers, where included.
367	However, local law plans in effect on October 1, 1998, shall be
368	required to comply with the minimum benefit provisions of this
369	chapter only to the extent that additional premium tax revenues
370	become available to incrementally fund the cost of such
371	compliance as provided in s. 175.162(2)(a). When a plan is in
372	compliance with such minimum benefit provisions, as subsequent
373	additional premium tax revenues become available, they shall be
374	used to provide extra benefits. For the purpose of this chapter,
375	"additional premium tax revenues" means revenues received by a
376	municipality or special fire control district pursuant to s.
377	175.121 whichthatexceed that amount received for calendar year
378	1997,and the term "extra benefits" means benefits in addition
379	to or greater than those provided to general employees of the
380	municipality and in addition to those in existence for
381	firefighters on March 12, 1999. Local law plans created by
382	special act before May 23, 1939, shall be deemed to comply with
383	this chapter.
384	Section 4. Subsection (1) of section 185.35, Florida
385	Statutes, is amended to read:
386	185.35 Municipalities having their own pension plans for
387	police officers.--For any municipality, chapter plan, local law
388	municipality, or local law plan under this chapter, in order for
389	municipalities with their own pension plans for police officers,
390	or for police officers and firefighters where included, to
391	participate in the distribution of the tax fund established
392	pursuant to s. 185.08, local law plans must meet the minimum
393	benefits and minimum standards set forth in this chapter:
394	(1) PREMIUM TAX INCOME.--If a municipality has a pension
395	plan for police officers, or for police officers and
396	firefighters where included, which, in the opinion of the
397	division, meets the minimum benefits and minimum standards set
398	forth in this chapter, the board of trustees of the pension
399	plan, as approved by a majority of police officers of the
400	municipality, may:
401	(a) Place the income from the premium tax in s. 185.08 in
402	such pension plan for the sole and exclusive use of its police
403	officers, or its police officers and firefighters where
404	included, where it shall become an integral part of that pension
405	plan and shall be used to pay extra benefits to the police
406	officers included in that pension plan; or
407	(b) May place the income from the premium tax in s. 185.08
408	in a separate supplemental plan to pay extra benefits to the
409	police officers, or police officers and firefighters where
410	included, participating in such separate supplemental plan.
411
412	The premium tax provided by this chapter shall in all cases be
413	used in its entirety to provide extra benefits to police
414	officers, or to police officers and firefighters, where
415	included. However, local law plans in effect on October 1,
416	1998, shall be required to comply with the minimum benefit
417	provisions of this chapter only to the extent that additional
418	premium tax revenues become available to incrementally fund the
419	cost of such compliance as provided in s. 185.16(2). When a plan
420	is in compliance with such minimum benefit provisions, as
421	subsequent additional tax revenues become available, they shall
422	be used to provide extra benefits. For the purpose of this
423	chapter, "additional premium tax revenues" means revenues
424	received by a municipality pursuant to s. 185.10 whichthat
425	exceed the amount received for calendar year 1997,and the term
426	"extra benefits" means benefits in addition to or greater than
427	those provided to general employees of the municipality and in
428	addition to those in existence for police officers on March 12,
429	1999. Local law plans created by special act before May 23,
430	1939, shall be deemed to comply with this chapter.
431	Section 5. Subsection (7) is added to section 175.061,
432	Florida Statutes, to read:
433	175.061 Board of trustees; members; terms of office;
434	meetings; legal entity; costs; attorney's fees.--For any
435	municipality, special fire control district, chapter plan, local
436	law municipality, local law special fire control district, or
437	local law plan under this chapter:
438	(7) The board of trustees may, upon written request by the
439	retiree of the plan, or by a dependent, when authorized by the
440	retiree or the retiree's beneficiary, authorize the plan
441	administrator to withhold from the monthly retirement payment
442	those funds that are necessary to pay for the benefits being
443	received through the governmental entity from which the employee
444	retired, to pay the certified bargaining agent of the
445	governmental entity, and to make any payments required by law.
446	Section 6. Present subsection (6) of section 185.05,
447	Florida Statutes, is renumbered as subsection (7), and a new
448	subsection (6) is added to said section, to read:
449	185.05 Board of trustees; members; terms of office;
450	meetings; legal entity; costs; attorney's fees.--For any
451	municipality, chapter plan, local law municipality, or local law
452	plan under this chapter:
453	(6) The board of trustees may, upon written request by the
454	retiree of the plan, or by a dependent, when authorized by the
455	retiree or the retiree's beneficiary, authorize the plan
456	administrator to withhold from the monthly retirement payment
457	those funds that are necessary to pay for the benefits being
458	received through the governmental entity from which the employee
459	retired, to pay the certified bargaining agent of the
460	governmental entity, and to make any payments required by law.
461	Section 7. The sum of $300,000 is appropriated from the
462	General Revenue Fund to the Department of Revenue for the one-
463	time expense of creating the original database called for by
464	sections 1 and 2 of this act, and to support the implementation
465	process for use of the database. It is the intent of the
466	Legislature in providing this appropriation that the database
467	for sections 1 and 2 of this act be available for use in
468	determining the allocation of premiums to the various
469	municipalities and special fire control districts for the 2004
470	insurance premium tax return that is due by March 1, 2005.
471	Section 8. If any law amended by this act was also amended
472	by a law enacted at the 2003 Regular Session of the Legislature
473	or at the 2003 Special Session A of the Legislature, such laws
474	shall be construed as if they had been enacted at the same
475	session of the Legislature, and full effect shall be given to
476	each if possible.
477	Section 9. This act shall take effect January 1, 2004.
478
479	================= T I T L E A M E N D M E N T =================
480	Remove the entire title, and insert:
481	An act relating to firefighter and municipal police
482	pensions; creating s. 175.1015, F.S.; authorizing the
483	Department of Revenue to create and maintain a database
484	for use by insurers that report and remit an excise tax
485	on property insurance premiums; providing insurers with
486	incentives for using the database; providing penalties
487	for failure to use the database; requiring local
488	governments to provide information to the department;
489	appropriating funds to the department for the
490	administration of the database; authorizing the
491	department to adopt rules; creating s. 185.085, F.S.;
492	authorizing the Department of Revenue to create and
493	maintain a database for use by insurers that report and
494	remit an excise tax on casualty insurers premiums;
495	providing incentives to insurers for using the database
496	and penalties for failure to use the database; requiring
497	local governments to provide information to the
498	department; appropriating funds to the department for the
499	administration of the database; authorizing the
500	department to adopt rules; providing for distribution of
501	tax revenues through 2007; amending s. 175.351, F.S.;
502	defining the term "extra benefits" with respect to
503	pension plans for firefighters; amending s. 185.35, F.S.;
504	providing for the meaning of the term "extra benefits"
505	with respect to pension plans for municipal police
506	officers; amending s. 175.061, F.S.; authorizing the plan
507	administrator to withhold certain funds; amending s.
508	185.05, F.S.; authorizing the plan administrator to
509	withhold certain funds; providing an appropriation to the
510	Department of Revenue; providing for construction of the
511	act in pari materia with laws enacted during the 2003
512	Regular Session or the 2003 Special Session A of the
513	Legislature; providing an effective date.