HB 0027B, Engrossed 1 2003
1	A bill to be entitled
2	An act relating to firefighter and municipal police
3	pensions; creating s. 175.1015, F.S.; authorizing the
4	Department of Revenue to create and maintain a database
5	for use by insurers that report and remit an excise tax
6	on property insurance premiums; providing insurers with
7	incentives for using the database; providing penalties
8	for failure to use the database; requiring local
9	governments to provide information to the department;
10	appropriating funds to the department for the
11	administration of the database; authorizing the
12	department to adopt rules; creating s. 185.085, F.S.;
13	authorizing the Department of Revenue to create and
14	maintain a database for use by insurers that report and
15	remit an excise tax on casualty insurers premiums;
16	providing incentives to insurers for using the database
17	and penalties for failure to use the database; requiring
18	local governments to provide information to the
19	department; appropriating funds to the department for the
20	administration of the database; authorizing the
21	department to adopt rules; providing for distribution of
22	tax revenues through 2007; amending s. 175.351, F.S.;
23	defining the term "extra benefits" with respect to
24	pension plans for firefighters; amending s. 185.35, F.S.;
25	providing for the meaning of the term "extra benefits"
26	with respect to pension plans for municipal police
27	officers; amending s. 175.061, F.S.; authorizing the plan
28	administrator to withhold certain funds; amending s.
29	185.05, F.S.; authorizing the plan administrator to
30	withhold certain funds; providing an appropriation to the
31	Department of Revenue; providing for construction of the
32	act in pari materia with laws enacted during the 2003
33	Regular Session or the 2003 Special Session A of the
34	Legislature; providing an effective date.
35
36	Be It Enacted by the Legislature of the State of Florida:
37
38	Section 1. Section 175.1015, Florida Statutes, is created
39	to read:
40	175.1015 Determination of local premium tax situs.--
41	(1)(a) Any insurance company that is obligated to report
42	and remit the excise tax on property insurance premiums imposed
43	under s. 175.101 shall be held harmless from any liability for
44	taxes, interest, or penalties that would otherwise be due solely
45	as a result of an assignment of an insured property to an
46	incorrect local taxing jurisdiction if the insurance company
47	exercises due diligence in applying an electronic database
48	provided by the Department of Revenue under subsection (2).
49	Insurance companies that do not use the electronic database
50	provided by the Department of Revenue or that do not exercise
51	due diligence in applying the electronic database are subject to
52	a 0.5-percent penalty on the portion of the premium pertaining
53	to any insured risk that is improperly assigned, whether
54	assigned to an improper local taxing jurisdiction, not assigned
55	to a local taxing jurisdiction when it should be assigned to a
56	local taxing jurisdiction, or assigned to a local taxing
57	jurisdiction when it should not be assigned to a local taxing
58	jurisdiction.
59	(b) Any insurance company that is obligated to report and
60	remit the excise tax on commercial property insurance premiums
61	imposed under s. 175.101 and is unable, after due diligence, to
62	assign an insured property to a specific local taxing
63	jurisdiction for purposes of complying with paragraph (a) shall
64	remit the excise tax on commercial property insurance premiums
65	using a methodology of apportionment in a manner consistent with
66	the remittance for the 2002 calendar year.
67	(2)(a) The Department of Revenue shall, subject to
68	legislative appropriation, create as soon as practicable and
69	feasible, and thereafter shall maintain, an electronic database
70	that conforms to any format approved by the American National
71	Standards Institute's Accredited Standards Committee X12 and
72	that designates for each street address and address range in the
73	state, including any multiple postal street addresses applicable
74	to one street location, the local taxing jurisdiction in which
75	the street address and address range is located, and the
76	appropriate code for each such participating local taxing
77	jurisdiction, identified by one nationwide standard numeric
78	code. The nationwide standard numeric code must contain the same
79	number of numeric digits, and each digit or combination of
80	digits must refer to the same level of taxing jurisdiction
81	throughout the United States and must be in a format similar to
82	FIPS 55-3 or other appropriate standard approved by the
83	Federation of Tax Administrators and the Multistate Tax
84	Commission. Each address or address range must be provided in
85	standard postal format, including the street number, street
86	number range, street name, and zip code. Each year after the
87	creation of the initial database, the Department of Revenue
88	shall annually create and maintain a database for the current
89	tax year. Each annual database must be calendar-year specific.
90	(b)1. Each participating local taxing jurisdiction shall
91	furnish to the Department of Revenue all information needed to
92	create the electronic database as soon as practicable and
93	feasible. The information furnished to the Department of Revenue
94	must specify an effective date.
95	2. Each participating local taxing jurisdiction shall
96	furnish to the Department of Revenue all information needed to
97	create and update the current year's database, including changes
98	in annexations, incorporations, and reorganizations and any
99	other changes in jurisdictional boundaries, as well as changes
100	in eligibility to participate in the excise tax imposed under
101	this chapter. The information must specify an effective date and
102	must be furnished to the Department of Revenue by July 1 of the
103	current year.
104	3. The Department of Revenue shall create and update the
105	current year's database in accordance with the information
106	furnished by participating local taxing jurisdictions under
107	subparagraph 1. or subparagraph 2., as appropriate. To the
108	extent practicable, the Department of Revenue shall post each
109	new annual database on a web site by September 1 of each year.
110	Each participating local taxing jurisdiction shall have access
111	to this web site and, within 30 days thereafter, shall provide
112	any corrections to the Department of Revenue. The Department of
113	Revenue shall finalize the current year's database and post it
114	on a web site by November 1 of the tax year. If a dispute in
115	jurisdictional boundaries cannot be resolved so that changes in
116	boundaries may be included, as appropriate, in the database by
117	November 1, the changes may not be retroactively included in the
118	current year's database and the boundaries will remain the same
119	as in the previous year's database. The finalized database must
120	be used in assigning policies and premiums to the proper local
121	taxing jurisdiction for the insurance premium tax return due on
122	the following March 1. The Department of Revenue shall furnish
123	the annual database on magnetic or electronic media to any
124	insurance company or vendor that requests the database for the
125	sole purpose of assigning insurance premiums to the proper local
126	taxing jurisdiction for the excise tax imposed under this
127	chapter. Information contained in the electronic database is
128	conclusive for purposes of this chapter. The electronic database
129	is not an order, a rule, or a policy of general applicability.
130	4. Each annual database must identify the additions,
131	deletions, and other changes to the preceding version of the
132	database.
133	(3)(a) As used in this section, the term "due diligence"
134	means the care and attention that is expected from and is
135	ordinarily exercised by a reasonable and prudent person under
136	the circumstances.
137	(b) Notwithstanding any law to the contrary, an insurance
138	company is exercising due diligence if the insurance company
139	complies with the provisions of paragraph (1)(b) or if the
140	insurance company assigns an insured's premium to local taxing
141	jurisdictions in accordance with the Department of Revenue's
142	annual database and:
143	1. Expends reasonable resources to accurately and reliably
144	implement such method;
145	2. Maintains adequate internal controls to correctly
146	include in its database of policyholders the location of the
147	property insured, in the proper address format, so that matching
148	with the department's database is accurate; and
149	3. Corrects errors in the assignment of addresses to local
150	taxing jurisdictions within 120 days after the insurance company
151	discovers the errors.
152	(4) There is annually appropriated from the moneys
153	collected under this chapter and deposited in the Police and
154	Firefighter's Premium Tax Trust Fund an amount sufficient to pay
155	the expenses of the Department of Revenue in administering this
156	section, but not to exceed $50,000 annually, adjusted annually
157	by the lesser of a 5-percent increase or the percentage of
158	growth in the total collections.
159	(5) The Department of Revenue shall adopt rules necessary
160	to administer this section, including rules establishing
161	procedures and forms.
162	(6) Any insurer that is obligated to collect and remit the
163	tax on property insurance imposed under s. 175.101 shall be held
164	harmless from any liability for taxes, interest, or penalties
165	that would otherwise be due solely as a result of an assignment
166	of an insured property to an incorrect local taxing
167	jurisdiction, based on the collection and remission of the tax
168	accruing before January 1, 2004, if the insurer collects and
169	reports this tax consistent with filings for periods before
170	January 1, 2004. Further, any insurer that is obligated to
171	collect and remit the tax on property insurance imposed under
172	this section is not subject to an examination under s. 624.316
173	or s. 624.3161 which would occur solely as a result of an
174	assignment of an insured property to an incorrect local taxing
175	jurisdiction, based on the collection and remission of such tax
176	accruing before January 1, 2004.
177	Section 2. Section 185.085, Florida Statutes, is created
178	to read:
179	185.085 Determination of local premium tax situs.--
180	(1)(a) Any insurance company that is obligated to report
181	and remit the excise tax on casualty insurance premiums imposed
182	under s. 185.08 shall be held harmless from any liability for
183	taxes, interest, or penalties that would otherwise be due solely
184	as a result of an assignment of an insured property to an
185	incorrect local taxing jurisdiction if the insurance company
186	exercises due diligence in applying an electronic database
187	provided by the Department of Revenue under subsection (2).
188	Insurance companies that do not use the electronic database
189	provided by the Department of Revenue or that do not exercise
190	due diligence in applying the electronic database are subject to
191	a 0.5-percent penalty on the portion of the premium pertaining
192	to any insured risk that is improperly assigned, whether
193	assigned to an improper local taxing jurisdiction, not assigned
194	to a local taxing jurisdiction when it should be assigned to a
195	local taxing jurisdiction, or assigned to a local taxing
196	jurisdiction when it should not be assigned to a local taxing
197	jurisdiction.
198	(b) Any insurance company that is obligated to report and
199	remit the excise tax on commercial casualty insurance premiums
200	imposed under s. 185.08 and is unable, after due diligence, to
201	assign an insured property to a specific local taxing
202	jurisdiction for purposes of complying with paragraph(a) shall
203	remit the excise tax on commercial casualty insurance premiums
204	using a methodology of apportionment in a manner consistent with
205	the remittance for the 2002 calendar year.
206	(2)(a) The Department of Revenue shall, subject to
207	legislative appropriation, create as soon as practicable and
208	feasible, and thereafter shall maintain, an electronic database
209	that conforms to any format approved by the American National
210	Standards Institute's Accredited Standards Committee X12 and
211	that designates for each street address and address range in the
212	state, including any multiple postal street addresses applicable
213	to one street location, the local taxing jurisdiction in which
214	the street address and address range is located, and the
215	appropriate code for each such participating local taxing
216	jurisdiction, identified by one nationwide standard numeric
217	code. The nationwide standard numeric code must contain the same
218	number of numeric digits, and each digit or combination of
219	digits must refer to the same level of taxing jurisdiction
220	throughout the United States and must be in a format similar to
221	FIPS 55-3 or other appropriate standard approved by the
222	Federation of Tax Administrators and the Multistate Tax
223	Commission. Each address or address range must be provided in
224	standard postal format, including the street number, street
225	number range, street name, and zip code. Each year after the
226	creation of the initial database, the Department of Revenue
227	shall annually create and maintain a database for the current
228	tax year. Each annual database must be calendar-year specific.
229	(b)1. Each participating local taxing jurisdiction shall
230	furnish to the Department of Revenue all information needed to
231	create the electronic database as soon as practicable and
232	feasible. The information furnished to the Department of Revenue
233	must specify an effective date.
234	2. Each participating local taxing jurisdiction shall
235	furnish to the Department of Revenue all information needed to
236	create and update the current year's database, including changes
237	in annexations, incorporations, and reorganizations and any
238	other changes in jurisdictional boundaries, as well as changes
239	in eligibility to participate in the excise tax imposed under
240	this chapter. The information must specify an effective date and
241	must be furnished to the Department of Revenue by July 1 of the
242	current year.
243	3. The Department of Revenue shall create and update the
244	current year's database in accordance with the information
245	furnished by participating local taxing jurisdictions under
246	subparagraph 1. or subparagraph 2., as appropriate. To the
247	extent practicable, the Department of Revenue shall post each
248	new annual database on a web site by September 1 of each year.
249	Each participating local taxing jurisdiction shall have access
250	to this web site and, within 30 days thereafter, shall provide
251	any corrections to the Department of Revenue. The Department of
252	Revenue shall finalize the current year's database and post it
253	on a web site by November 1 of the tax year. If a dispute in
254	jurisdictional boundaries cannot be resolved so that changes in
255	boundaries may be included, as appropriate, in the database by
256	November 1, the changes may not be retroactively included in the
257	current year's database and the boundaries will remain the same
258	as in the previous year's database. The finalized database must
259	be used in assigning policies and premiums to the proper local
260	taxing jurisdiction for the insurance premium tax return due on
261	the following March 1. The Department of Revenue shall furnish
262	the annual database on magnetic or electronic media to any
263	insurance company or vendor that requests the database for the
264	sole purpose of assigning insurance premiums to the proper local
265	taxing jurisdiction for the excise tax imposed under this
266	chapter. Information contained in the electronic database is
267	conclusive for purposes of this chapter. The electronic database
268	is not an order, a rule, or a policy of general applicability.
269	4. Each annual database must identify the additions,
270	deletions, and other changes to the preceding version of the
271	database.
272	(3)(a) As used in this section, the term "due diligence"
273	means the care and attention that is expected from and is
274	ordinarily exercised by a reasonable and prudent person under
275	the circumstances.
276	(b) Notwithstanding any law to the contrary, an insurance
277	company is exercising due diligence if the insurance company
278	complies with the provisions of paragraph (1)(b) or if the
279	insurance company assigns an insured's premium to local taxing
280	jurisdictions in accordance with the Department of Revenue's
281	annual database and:
282	1. Expends reasonable resources to accurately and reliably
283	implement such method;
284	2. Maintains adequate internal controls to correctly
285	include in its database of policyholders the location of the
286	property insured, in the proper address format, so that matching
287	with the department's database is accurate; and
288	3. Corrects errors in the assignment of addresses to local
289	taxing jurisdictions within 120 days after the insurance company
290	discovers the errors.
291	(4) There is annually appropriated from the moneys
292	collected under this chapter and deposited in the Police and
293	Firefighter's Premium Tax Trust Fund an amount sufficient to pay
294	the expenses of the Department of Revenue in administering this
295	section, but not to exceed $50,000 annually, adjusted annually
296	by the lesser of a 5-percent increase or the percentage of
297	growth in the total collections.
298	(5) The Department of Revenue shall adopt rules necessary
299	to administer this section, including rules establishing
300	procedures and forms.
301	(6)(a) Notwithstanding any other law, no methodology,
302	formula, or database that is adopted in any year after January
303	1, 2004, may result in a distribution to a participating
304	municipality that has a retirement plan created pursuant to this
305	chapter of an amount of excise tax which is less than the amount
306	distributed to such participating municipality for calendar year
307	2003. However, if the total proceeds to be distributed for the
308	current year from the excise tax imposed under s. 185.08 are
309	less than the total amount distributed for calendar year 2003,
310	each participating municipality shall receive a current year
311	distribution that is proportionate to its share of the total
312	2003 calendar year distribution. If the total of the proceeds to
313	be distributed for the current year from the excise tax imposed
314	under s. 185.08 are greater than or equal to the total amount
315	distributed for calendar year 2003, each participating
316	municipality shall initially be distributed a minimum amount
317	equal to the amount received for calendar year 2003. The
318	remaining amount to be distributed for the current year, which
319	equals the total to be distributed for the current year, less
320	minimum distribution amount, shall be distributed to those
321	municipalities with a current-year reported amount that is
322	greater than the amount distributed to such municipality for
323	calendar year 2003. Each municipality eligible for distribution
324	of this remaining amount shall receive its proportionate share
325	of the remaining amount based upon the amount reported for that
326	municipality, above the calendar year 2003 distribution for the
327	current year, to the total amount over the calendar year 2003
328	distribution for all municipalities with a current year reported
329	amount that is greater than the calendar year 2003 distribution.
330	(b) If a new municipality elects to participate under this
331	chapter during any year after January 1, 2004, such municipality
332	shall receive the total amount reported for the current year for
333	such municipality. All other participating municipalities shall
334	receive a current year distribution, calculated as provided in
335	this section, which is proportionate to their share of the total
336	2003 calendar year distribution after subtracting the amount
337	paid to the new participating plans.
338	(c) This subsection expires January 1, 2007.
339	(7) Any insurer that is obligated to collect and remit the
340	tax on casualty insurance imposed under s. 185.08 shall be held
341	harmless from any liability for taxes, interest, or penalties
342	that would otherwise be due solely as a result of an assignment
343	of an insured risk to an incorrect local taxing jurisdiction,
344	based on the collection and remission of the tax accruing before
345	January 1, 2004, if the insurer collects and reports this tax
346	consistent with filings for periods before January 1, 2004.
347	Further, any insurer that is obligated to collect and remit the
348	tax on casualty insurance imposed under this section is not
349	subject to an examination under s. 624.316 or s. 624.3161 which
350	would occur solely as a result of an assignment of an insured
351	risk to an incorrect local taxing jurisdiction, based on the
352	collection and remission of such tax accruing before the
353	effective date of this section.
354	Section 3. Subsection (1) of section 175.351, Florida
355	Statutes, is amended to read:
356	175.351 Municipalities and special fire control districts
357	having their own pension plans for firefighters.--For any
358	municipality, special fire control district, local law
359	municipality, local law special fire control district, or local
360	law plan under this chapter, in order for municipalities and
361	special fire control districts with their own pension plans for
362	firefighters, or for firefighters and police officers, where
363	included, to participate in the distribution of the tax fund
364	established pursuant to s. 175.101, local law plans must meet
365	the minimum benefits and minimum standards set forth in this
366	chapter.
367	(1) PREMIUM TAX INCOME.--If a municipality has a pension
368	plan for firefighters, or a pension plan for firefighters and
369	police officers, where included, which in the opinion of the
370	division meets the minimum benefits and minimum standards set
371	forth in this chapter, the board of trustees of the pension
372	plan, as approved by a majority of firefighters of the
373	municipality, may:
374	(a) Place the income from the premium tax in s. 175.101 in
375	such pension plan for the sole and exclusive use of its
376	firefighters, or for firefighters and police officers, where
377	included, where it shall become an integral part of that pension
378	plan and shall be used to pay extra benefits to the firefighters
379	included in that pension plan; or
380	(b) Place the income from the premium tax in s. 175.101 in
381	a separate supplemental plan to pay extra benefits to
382	firefighters, or to firefighters and police officers where
383	included, participating in such separate supplemental plan.
384
385	The premium tax provided by this chapter shall in all cases be
386	used in its entirety to provide extra benefits to firefighters,
387	or to firefighters and police officers, where included.
388	However, local law plans in effect on October 1, 1998, shall be
389	required to comply with the minimum benefit provisions of this
390	chapter only to the extent that additional premium tax revenues
391	become available to incrementally fund the cost of such
392	compliance as provided in s. 175.162(2)(a). When a plan is in
393	compliance with such minimum benefit provisions, as subsequent
394	additional premium tax revenues become available, they shall be
395	used to provide extra benefits. For the purpose of this chapter,
396	"additional premium tax revenues" means revenues received by a
397	municipality or special fire control district pursuant to s.
398	175.121 whichthatexceed that amount received for calendar year
399	1997,and the term "extra benefits" means benefits in addition
400	to or greater than those provided to general employees of the
401	municipality and in addition to those in existence for
402	firefighters on March 12, 1999. Local law plans created by
403	special act before May 23, 1939, shall be deemed to comply with
404	this chapter.
405	Section 4. Subsection (1) of section 185.35, Florida
406	Statutes, is amended to read:
407	185.35 Municipalities having their own pension plans for
408	police officers.--For any municipality, chapter plan, local law
409	municipality, or local law plan under this chapter, in order for
410	municipalities with their own pension plans for police officers,
411	or for police officers and firefighters where included, to
412	participate in the distribution of the tax fund established
413	pursuant to s. 185.08, local law plans must meet the minimum
414	benefits and minimum standards set forth in this chapter:
415	(1) PREMIUM TAX INCOME.--If a municipality has a pension
416	plan for police officers, or for police officers and
417	firefighters where included, which, in the opinion of the
418	division, meets the minimum benefits and minimum standards set
419	forth in this chapter, the board of trustees of the pension
420	plan, as approved by a majority of police officers of the
421	municipality, may:
422	(a) Place the income from the premium tax in s. 185.08 in
423	such pension plan for the sole and exclusive use of its police
424	officers, or its police officers and firefighters where
425	included, where it shall become an integral part of that pension
426	plan and shall be used to pay extra benefits to the police
427	officers included in that pension plan; or
428	(b) May place the income from the premium tax in s. 185.08
429	in a separate supplemental plan to pay extra benefits to the
430	police officers, or police officers and firefighters where
431	included, participating in such separate supplemental plan.
432
433	The premium tax provided by this chapter shall in all cases be
434	used in its entirety to provide extra benefits to police
435	officers, or to police officers and firefighters, where
436	included. However, local law plans in effect on October 1,
437	1998, shall be required to comply with the minimum benefit
438	provisions of this chapter only to the extent that additional
439	premium tax revenues become available to incrementally fund the
440	cost of such compliance as provided in s. 185.16(2). When a plan
441	is in compliance with such minimum benefit provisions, as
442	subsequent additional tax revenues become available, they shall
443	be used to provide extra benefits. For the purpose of this
444	chapter, "additional premium tax revenues" means revenues
445	received by a municipality pursuant to s. 185.10 whichthat
446	exceed the amount received for calendar year 1997,and the term
447	"extra benefits" means benefits in addition to or greater than
448	those provided to general employees of the municipality and in
449	addition to those in existence for police officers on March 12,
450	1999. Local law plans created by special act before May 23,
451	1939, shall be deemed to comply with this chapter.
452	Section 5. Subsection (7) is added to section 175.061,
453	Florida Statutes, to read:
454	175.061 Board of trustees; members; terms of office;
455	meetings; legal entity; costs; attorney's fees.--For any
456	municipality, special fire control district, chapter plan, local
457	law municipality, local law special fire control district, or
458	local law plan under this chapter:
459	(7) The board of trustees may, upon written request by the
460	retiree of the plan, or by a dependent, when authorized by the
461	retiree or the retiree's beneficiary, authorize the plan
462	administrator to withhold from the monthly retirement payment
463	those funds that are necessary to pay for the benefits being
464	received through the governmental entity from which the employee
465	retired, to pay the certified bargaining agent of the
466	governmental entity, and to make any payments required by law.
467	Section 6. Present subsection (6) of section 185.05,
468	Florida Statutes, is renumbered as subsection (7), and a new
469	subsection (6) is added to said section, to read:
470	185.05 Board of trustees; members; terms of office;
471	meetings; legal entity; costs; attorney's fees.--For any
472	municipality, chapter plan, local law municipality, or local law
473	plan under this chapter:
474	(6) The board of trustees may, upon written request by the
475	retiree of the plan, or by a dependent, when authorized by the
476	retiree or the retiree's beneficiary, authorize the plan
477	administrator to withhold from the monthly retirement payment
478	those funds that are necessary to pay for the benefits being
479	received through the governmental entity from which the employee
480	retired, to pay the certified bargaining agent of the
481	governmental entity, and to make any payments required by law.
482	Section 7. The sum of $300,000 is appropriated from the
483	General Revenue Fund to the Department of Revenue for the one-
484	time expense of creating the original database called for by
485	sections 1 and 2 of this act, and to support the implementation
486	process for use of the database. It is the intent of the
487	Legislature in providing this appropriation that the database
488	for sections 1 and 2 of this act be available for use in
489	determining the allocation of premiums to the various
490	municipalities and special fire control districts for the 2004
491	insurance premium tax return that is due by March 1, 2005.
492	Section 8. If any law amended by this act was also amended
493	by a law enacted at the 2003 Regular Session of the Legislature
494	or at the 2003 Special Session A of the Legislature, such laws
495	shall be construed as if they had been enacted at the same
496	session of the Legislature, and full effect shall be given to
497	each if possible.
498	Section 9. This act shall take effect January 1, 2004.
499