HB 0003C 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 incentives to
7	insurers for using the database and penalties for failure
8	to use the database; requiring local governments to
9	provide information to the department; appropriating
10	funds to the department for the administration of the
11	database; authorizing the department to adopt rules;
12	creating s. 185.085, F.S.; authorizing the Department of
13	Revenue to create and maintain a database for use by
14	insurers that report and remit an excise tax on casualty
15	insurers premiums; providing incentives to insurers for
16	using the database and penalties for failure to use the
17	database; requiring local governments to provide
18	information to the department; appropriating funds to the
19	department for the administration of the database;
20	authorizing the department to adopt rules; providing for
21	distribution of tax revenues through 2007; amending s.
22	175.351, F.S.; providing for the meaning of the term
23	"extra benefits" with respect to pension plans for
24	firefighters; amending s. 185.35, F.S.; providing for the
25	meaning of the term "extra benefits" with respect to
26	pension plans for municipal police officers; amending s.
27	175.061, F.S.; authorizing the plan administrator to
28	withhold certain funds; amending s. 185.05, F.S.;
29	authorizing the plan administrator to withhold certain
30	funds; providing an appropriation to the Department of
31	Revenue; providing for construction of the act in pari
32	materia with laws enacted during the 2003 Regular
33	Session, the 2003 Special Session A, or the 2003 Special
34	Session B of the Legislature; providing an effective
35	date.
36
37	Be It Enacted by the Legislature of the State of Florida:
38
39	Section 1. Section 175.1015, Florida Statutes, is created
40	to read:
41	175.1015 Determination of local premium tax situs.--
42	(1)(a) Any insurance company that is obligated to report
43	and remit the excise tax on property insurance premiums imposed
44	under s. 175.101 shall be held harmless from any liability for
45	taxes, interest, or penalties that would otherwise be due solely
46	as a result of an assignment of an insured property to an
47	incorrect local taxing jurisdiction if the insurance company
48	exercises due diligence in applying an electronic database
49	provided by the Department of Revenue under subsection (2).
50	Insurance companies that do not use the electronic database
51	provided by the Department of Revenue or that do not exercise
52	due diligence in applying the electronic database are subject to
53	a 0.5-percent penalty on the portion of the premium pertaining
54	to any insured risk that is improperly assigned, whether
55	assigned to an improper local taxing jurisdiction, not assigned
56	to a local taxing jurisdiction when it should be assigned to a
57	local taxing jurisdiction, or assigned to a local taxing
58	jurisdiction when it should not be assigned to a local taxing
59	jurisdiction.
60	(b) Any insurance company that is obligated to report and
61	remit the excise tax on commercial property insurance premiums
62	imposed under s. 175.101 and is unable, after due diligence, to
63	assign an insured property to a specific local taxing
64	jurisdiction for purposes of complying with paragraph (a) shall
65	remit the excise tax on commercial property insurance premiums
66	using a methodology of apportionment in a manner consistent with
67	the remittance for the 2002 calendar year.
68	(2)(a) The Department of Revenue shall, subject to
69	legislative appropriation, create as soon as practicable and
70	feasible, and thereafter shall maintain, an electronic database
71	that conforms to any format approved by the American National
72	Standards Institute's Accredited Standards Committee X12 and
73	that designates for each street address and address range in the
74	state, including any multiple postal street addresses applicable
75	to one street location, the local taxing jurisdiction in which
76	the street address and address range is located, and the
77	appropriate code for each such participating local taxing
78	jurisdiction, identified by one nationwide standard numeric
79	code. The nationwide standard numeric code must contain the same
80	number of numeric digits, and each digit or combination of
81	digits must refer to the same level of taxing jurisdiction
82	throughout the United States and must be in a format similar to
83	FIPS 55-3 or other appropriate standard approved by the
84	Federation of Tax Administrators and the Multistate Tax
85	Commission. Each address or address range must be provided in
86	standard postal format, including the street number, street
87	number range, street name, and zip code. Each year after the
88	creation of the initial database, the Department of Revenue
89	shall annually create and maintain a database for the current
90	tax year. Each annual database must be calendar-year specific.
91	(b)1. Each participating local taxing jurisdiction shall
92	furnish to the Department of Revenue all information needed to
93	create the electronic database as soon as practicable and
94	feasible. The information furnished to the Department of Revenue
95	must specify an effective date.
96	2. Each participating local taxing jurisdiction shall
97	furnish to the Department of Revenue all information needed to
98	create and update the current year's database, including changes
99	in annexations, incorporations, and reorganizations and any
100	other changes in jurisdictional boundaries, as well as changes
101	in eligibility to participate in the excise tax imposed under
102	this chapter. The information must specify an effective date and
103	must be furnished to the Department of Revenue by July 1 of the
104	current year.
105	3. The Department of Revenue shall create and update the
106	current year's database in accordance with the information
107	furnished by participating local taxing jurisdictions under
108	subparagraph 1. or subparagraph 2., as appropriate. To the
109	extent practicable, the Department of Revenue shall post each
110	new annual database on a website by September 1 of each year.
111	Each participating local taxing jurisdiction shall have access
112	to this website and, within 30 days thereafter, shall provide
113	any corrections to the Department of Revenue. The Department of
114	Revenue shall finalize the current year's database and post it
115	on a website by November 1 of the tax year. If a dispute in
116	jurisdictional boundaries cannot be resolved so that changes in
117	boundaries may be included, as appropriate, in the database by
118	November 1, the changes may not be retroactively included in the
119	current year's database and the boundaries will remain the same
120	as in the previous year's database. The finalized database must
121	be used in assigning policies and premiums to the proper local
122	taxing jurisdiction for the insurance premium tax return due on
123	the following March 1. The Department of Revenue shall furnish
124	the annual database on magnetic or electronic media to any
125	insurance company or vendor that requests the database for the
126	sole purpose of assigning insurance premiums to the proper local
127	taxing jurisdiction for the excise tax imposed under this
128	chapter. Information contained in the electronic database is
129	conclusive for purposes of this chapter. The electronic database
130	is not an order, a rule, or a policy of general applicability.
131	4. Each annual database must identify the additions,
132	deletions, and other changes to the preceding version of the
133	database.
134	(3)(a) As used in this section, the term "due diligence"
135	means the care and attention that is expected from and is
136	ordinarily exercised by a reasonable and prudent person under
137	the circumstances.
138	(b) Notwithstanding any law to the contrary, an insurance
139	company is exercising due diligence if the insurance company
140	complies with the provisions of paragraph (1)(b) or if the
141	insurance company assigns an insured's premium to local taxing
142	jurisdictions in accordance with the Department of Revenue's
143	annual database and:
144	1. Expends reasonable resources to accurately and reliably
145	implement such method;
146	2. Maintains adequate internal controls to correctly
147	include in its database of policyholders the location of the
148	property insured, in the proper address format, so that matching
149	with the department's database is accurate; and
150	3. Corrects errors in the assignment of addresses to local
151	taxing jurisdictions within 120 days after the insurance company
152	discovers the errors.
153	(4) There is annually appropriated from the moneys
154	collected under this chapter and deposited in the Police and
155	Firefighters' Premium Tax Trust Fund an amount sufficient to pay
156	the expenses of the Department of Revenue in administering this
157	section, but not to exceed $50,000 annually, adjusted annually
158	by the lesser of a 5-percent increase or the percentage of
159	growth in the total collections.
160	(5) The Department of Revenue shall adopt rules necessary
161	to administer this section, including rules establishing
162	procedures and forms.
163	(6) Any insurer that is obligated to collect and remit the
164	tax on property insurance imposed under s. 175.101 shall be held
165	harmless from any liability for taxes, interest, or penalties
166	that would otherwise be due solely as a result of an assignment
167	of an insured property to an incorrect local taxing
168	jurisdiction, based on the collection and remission of the tax
169	accruing before January 1, 2004, if the insurer collects and
170	reports this tax consistent with filings for periods before
171	January 1, 2004. Further, any insurer that is obligated to
172	collect and remit the tax on property insurance imposed under
173	this section is not subject to an examination under s. 624.316
174	or s. 624.3161 which would occur solely as a result of an
175	assignment of an insured property to an incorrect local taxing
176	jurisdiction, based on the collection and remission of such tax
177	accruing before January 1, 2004.
178	Section 2. Section 185.085, Florida Statutes, is created
179	to read:
180	185.085 Determination of local premium tax situs.--
181	(1)(a) Any insurance company that is obligated to report
182	and remit the excise tax on casualty insurance premiums imposed
183	under s. 185.08 shall be held harmless from any liability for
184	taxes, interest, or penalties that would otherwise be due solely
185	as a result of an assignment of an insured property to an
186	incorrect local taxing jurisdiction if the insurance company
187	exercises due diligence in applying an electronic database
188	provided by the Department of Revenue under subsection (2).
189	Insurance companies that do not use the electronic database
190	provided by the Department of Revenue or that do not exercise
191	due diligence in applying the electronic database are subject to
192	a 0.5-percent penalty on the portion of the premium pertaining
193	to any insured risk that is improperly assigned, whether
194	assigned to an improper local taxing jurisdiction, not assigned
195	to a local taxing jurisdiction when it should be assigned to a
196	local taxing jurisdiction, or assigned to a local taxing
197	jurisdiction when it should not be assigned to a local taxing
198	jurisdiction.
199	(b) Any insurance company that is obligated to report and
200	remit the excise tax on commercial casualty insurance premiums
201	imposed under s. 185.08 and is unable, after due diligence, to
202	assign an insured property to a specific local taxing
203	jurisdiction for purposes of complying with paragraph (a) shall
204	remit the excise tax on commercial casualty insurance premiums
205	using a methodology of apportionment in a manner consistent with
206	the remittance for the 2002 calendar year.
207	(2)(a) The Department of Revenue shall, subject to
208	legislative appropriation, create as soon as practicable and
209	feasible, and thereafter shall maintain, an electronic database
210	that conforms to any format approved by the American National
211	Standards Institute's Accredited Standards Committee X12 and
212	that designates for each street address and address range in the
213	state, including any multiple postal street addresses applicable
214	to one street location, the local taxing jurisdiction in which
215	the street address and address range is located, and the
216	appropriate code for each such participating local taxing
217	jurisdiction, identified by one nationwide standard numeric
218	code. The nationwide standard numeric code must contain the same
219	number of numeric digits, and each digit or combination of
220	digits must refer to the same level of taxing jurisdiction
221	throughout the United States and must be in a format similar to
222	FIPS 55-3 or other appropriate standard approved by the
223	Federation of Tax Administrators and the Multistate Tax
224	Commission. Each address or address range must be provided in
225	standard postal format, including the street number, street
226	number range, street name, and zip code. Each year after the
227	creation of the initial database, the Department of Revenue
228	shall annually create and maintain a database for the current
229	tax year. Each annual database must be calendar-year specific.
230	(b)1. Each participating local taxing jurisdiction shall
231	furnish to the Department of Revenue all information needed to
232	create the electronic database as soon as practicable and
233	feasible. The information furnished to the Department of Revenue
234	must specify an effective date.
235	2. Each participating local taxing jurisdiction shall
236	furnish to the Department of Revenue all information needed to
237	create and update the current year's database, including changes
238	in annexations, incorporations, and reorganizations and any
239	other changes in jurisdictional boundaries, as well as changes
240	in eligibility to participate in the excise tax imposed under
241	this chapter. The information must specify an effective date and
242	must be furnished to the Department of Revenue by July 1 of the
243	current year.
244	3. The Department of Revenue shall create and update the
245	current year's database in accordance with the information
246	furnished by participating local taxing jurisdictions under
247	subparagraph 1. or subparagraph 2., as appropriate. To the
248	extent practicable, the Department of Revenue shall post each
249	new annual database on a website by September 1 of each year.
250	Each participating local taxing jurisdiction shall have access
251	to this website and, within 30 days thereafter, shall provide
252	any corrections to the Department of Revenue. The Department of
253	Revenue shall finalize the current year's database and post it
254	on a website by November 1 of the tax year. If a dispute in
255	jurisdictional boundaries cannot be resolved so that changes in
256	boundaries may be included, as appropriate, in the database by
257	November 1, the changes may not be retroactively included in the
258	current year's database and the boundaries will remain the same
259	as in the previous year's database. The finalized database must
260	be used in assigning policies and premiums to the proper local
261	taxing jurisdiction for the insurance premium tax return due on
262	the following March 1. The Department of Revenue shall furnish
263	the annual database on magnetic or electronic media to any
264	insurance company or vendor that requests the database for the
265	sole purpose of assigning insurance premiums to the proper local
266	taxing jurisdiction for the excise tax imposed under this
267	chapter. Information contained in the electronic database is
268	conclusive for purposes of this chapter. The electronic database
269	is not an order, a rule, or a policy of general applicability.
270	4. Each annual database must identify the additions,
271	deletions, and other changes to the preceding version of the
272	database.
273	(3)(a) As used in this section, the term "due diligence"
274	means the care and attention that is expected from and is
275	ordinarily exercised by a reasonable and prudent person under
276	the circumstances.
277	(b) Notwithstanding any law to the contrary, an insurance
278	company is exercising due diligence if the insurance company
279	complies with the provisions of paragraph (1)(b) or if the
280	insurance company assigns an insured's premium to local taxing
281	jurisdictions in accordance with the Department of Revenue's
282	annual database and:
283	1. Expends reasonable resources to accurately and reliably
284	implement such method;
285	2. Maintains adequate internal controls to correctly
286	include in its database of policyholders the location of the
287	property insured, in the proper address format, so that matching
288	with the department's database is accurate; and
289	3. Corrects errors in the assignment of addresses to local
290	taxing jurisdictions within 120 days after the insurance company
291	discovers the errors.
292	(4) There is annually appropriated from the moneys
293	collected under this chapter and deposited in the Police and
294	Firefighters' Premium Tax Trust Fund an amount sufficient to pay
295	the expenses of the Department of Revenue in administering this
296	section, but not to exceed $50,000 annually, adjusted annually
297	by the lesser of a 5-percent increase or the percentage of
298	growth in the total collections.
299	(5) The Department of Revenue shall adopt rules necessary
300	to administer this section, including rules establishing
301	procedures and forms.
302	(6)(a) Notwithstanding any other law, no methodology,
303	formula, or database that is adopted in any year after January
304	1, 2004, may result in a distribution to a participating
305	municipality that has a retirement plan created pursuant to this
306	chapter of an amount of excise tax which is less than the amount
307	distributed to such participating municipality for calendar year
308	2003. However, if the total proceeds to be distributed for the
309	current year from the excise tax imposed under s. 185.08 are
310	less than the total amount distributed for calendar year 2003,
311	each participating municipality shall receive a current year
312	distribution that is proportionate to its share of the total
313	2003 calendar year distribution. If the total of the proceeds to
314	be distributed for the current year from the excise tax imposed
315	under s. 185.08 are greater than or equal to the total amount
316	distributed for calendar year 2003, each participating
317	municipality shall initially be distributed a minimum amount
318	equal to the amount received for calendar year 2003. The
319	remaining amount to be distributed for the current year, which
320	equals the total to be distributed for the current year, less
321	minimum distribution amount, shall be distributed to those
322	municipalities with a current-year reported amount that is
323	greater than the amount distributed to such municipality for
324	calendar year 2003. Each municipality eligible for distribution
325	of this remaining amount shall receive its proportionate share
326	of the remaining amount based upon the amount reported for that
327	municipality, above the calendar year 2003 distribution for the
328	current year, to the total amount over the calendar year 2003
329	distribution for all municipalities with a current year reported
330	amount that is greater than the calendar year 2003 distribution.
331	(b) If a new municipality elects to participate under this
332	chapter during any year after January 1, 2004, such municipality
333	shall receive the total amount reported for the current year for
334	such municipality. All other participating municipalities shall
335	receive a current year distribution, calculated as provided in
336	this section, which is proportionate to their share of the total
337	2003 calendar year distribution after subtracting the amount
338	paid to the new participating plans.
339	(c) This subsection expires January 1, 2007.
340	(7) Any insurer that is obligated to collect and remit the
341	tax on casualty insurance imposed under s. 185.08 shall be held
342	harmless from any liability for taxes, interest, or penalties
343	that would otherwise be due solely as a result of an assignment
344	of an insured risk to an incorrect local taxing jurisdiction,
345	based on the collection and remission of the tax accruing before
346	January 1, 2004, if the insurer collects and reports this tax
347	consistent with filings for periods before January 1, 2004.
348	Further, any insurer that is obligated to collect and remit the
349	tax on casualty insurance imposed under this section is not
350	subject to an examination under s. 624.316 or s. 624.3161 which
351	would occur solely as a result of an assignment of an insured
352	risk to an incorrect local taxing jurisdiction, based on the
353	collection and remission of such tax accruing before the
354	effective date of this section.
355	Section 3. Subsection (1) of section 175.351, Florida
356	Statutes, is amended to read:
357	175.351 Municipalities and special fire control districts
358	having their own pension plans for firefighters.--For any
359	municipality, special fire control district, local law
360	municipality, local law special fire control district, or local
361	law plan under this chapter, in order for municipalities and
362	special fire control districts with their own pension plans for
363	firefighters, or for firefighters and police officers, where
364	included, to participate in the distribution of the tax fund
365	established pursuant to s. 175.101, local law plans must meet
366	the minimum benefits and minimum standards set forth in this
367	chapter.
368	(1) PREMIUM TAX INCOME.--If a municipality has a pension
369	plan for firefighters, or a pension plan for firefighters and
370	police officers, where included, which in the opinion of the
371	division meets the minimum benefits and minimum standards set
372	forth in this chapter, the board of trustees of the pension
373	plan, as approved by a majority of firefighters of the
374	municipality, may:
375	(a) Place the income from the premium tax in s. 175.101 in
376	such pension plan for the sole and exclusive use of its
377	firefighters, or for firefighters and police officers, where
378	included, where it shall become an integral part of that pension
379	plan and shall be used to pay extra benefits to the firefighters
380	included in that pension plan; or
381	(b) Place the income from the premium tax in s. 175.101 in
382	a separate supplemental plan to pay extra benefits to
383	firefighters, or to firefighters and police officers where
384	included, participating in such separate supplemental plan.
385
386	The premium tax provided by this chapter shall in all cases be
387	used in its entirety to provide extra benefits to firefighters,
388	or to firefighters and police officers, where included. However,
389	local law plans in effect on October 1, 1998, shall be required
390	to comply with the minimum benefit provisions of this chapter
391	only to the extent that additional premium tax revenues become
392	available to incrementally fund the cost of such compliance as
393	provided in s. 175.162(2)(a). When a plan is in compliance with
394	such minimum benefit provisions, as subsequent additional
395	premium tax revenues become available, they shall be used to
396	provide extra benefits. For the purpose of this chapter,
397	"additional premium tax revenues" means revenues received by a
398	municipality or special fire control district pursuant to s.
399	175.121 which thatexceed that amount received for calendar year
400	1997,and the term "extra benefits" means benefits in addition
401	to or greater than those provided to general employees of the
402	municipality and in addition to those in existence for
403	firefighters on March 12, 1999. Local law plans created by
404	special act before May 23, 1939, shall be deemed to comply with
405	this chapter.
406	Section 4. Subsection (1) of section 185.35, Florida
407	Statutes, is amended to read:
408	185.35 Municipalities having their own pension plans for
409	police officers.--For any municipality, chapter plan, local law
410	municipality, or local law plan under this chapter, in order for
411	municipalities with their own pension plans for police officers,
412	or for police officers and firefighters where included, to
413	participate in the distribution of the tax fund established
414	pursuant to s. 185.08, local law plans must meet the minimum
415	benefits and minimum standards set forth in this chapter:
416	(1) PREMIUM TAX INCOME.--If a municipality has a pension
417	plan for police officers, or for police officers and
418	firefighters where included, which, in the opinion of the
419	division, meets the minimum benefits and minimum standards set
420	forth in this chapter, the board of trustees of the pension
421	plan, as approved by a majority of police officers of the
422	municipality, may:
423	(a) Place the income from the premium tax in s. 185.08 in
424	such pension plan for the sole and exclusive use of its police
425	officers, or its police officers and firefighters where
426	included, where it shall become an integral part of that pension
427	plan and shall be used to pay extra benefits to the police
428	officers included in that pension plan; or
429	(b) May place the income from the premium tax in s. 185.08
430	in a separate supplemental plan to pay extra benefits to the
431	police officers, or police officers and firefighters where
432	included, participating in such separate supplemental plan.
433
434	The premium tax provided by this chapter shall in all cases be
435	used in its entirety to provide extra benefits to police
436	officers, or to police officers and firefighters, where
437	included. However, local law plans in effect on October 1, 1998,
438	shall be required to comply with the minimum benefit provisions
439	of this chapter only to the extent that additional premium tax
440	revenues become available to incrementally fund the cost of such
441	compliance as provided in s. 185.16(2). When a plan is in
442	compliance with such minimum benefit provisions, as subsequent
443	additional tax revenues become available, they shall be used to
444	provide extra benefits. For the purpose of this chapter,
445	"additional premium tax revenues" means revenues received by a
446	municipality pursuant to s. 185.10 which thatexceed the amount
447	received for calendar year 1997,and the term "extra benefits"
448	means benefits in addition to or greater than those provided to
449	general employees of the municipality and in addition to those
450	in existence for police officers on March 12, 1999. Local law
451	plans created by special act before May 23, 1939, shall be
452	deemed to comply with this chapter.
453	Section 5. Subsection (7) is added to section 175.061,
454	Florida Statutes, to read:
455	175.061 Board of trustees; members; terms of office;
456	meetings; legal entity; costs; attorney's fees.--For any
457	municipality, special fire control district, chapter plan, local
458	law municipality, local law special fire control district, or
459	local law plan under this chapter:
460	(7) The board of trustees may, upon written request by the
461	retiree of the plan, or by a dependent, when authorized by the
462	retiree or the retiree's beneficiary, authorize the plan
463	administrator to withhold from the monthly retirement payment
464	those funds that are necessary to pay for the benefits being
465	received through the governmental entity from which the employee
466	retired, to pay the certified bargaining agent of the
467	governmental entity, and to make any payments required by law.
468	Section 6. Present subsection (6) of section 185.05,
469	Florida Statutes, is renumbered as subsection (7), and a new
470	subsection (6) is added to said section, to read:
471	185.05 Board of trustees; members; terms of office;
472	meetings; legal entity; costs; attorney's fees.--For any
473	municipality, chapter plan, local law municipality, or local law
474	plan under this chapter:
475	(6) The board of trustees may, upon written request by the
476	retiree of the plan, or by a dependent, when authorized by the
477	retiree or the retiree's beneficiary, authorize the plan
478	administrator to withhold from the monthly retirement payment
479	those funds that are necessary to pay for the benefits being
480	received through the governmental entity from which the employee
481	retired, to pay the certified bargaining agent of the
482	governmental entity, and to make any payments required by law.
483	Section 7. The sum of $300,000 is appropriated from the
484	General Revenue Fund to the Department of Revenue for the one-
485	time expense of creating the original database called for by ss.
486	175.1015 and 185.085, Florida Statutes, as created by this act,
487	and to support the implementation process for use of the
488	database. It is the intent of the Legislature in providing this
489	appropriation that the database for ss. 175.1015 and 185.085,
490	Florida Statutes, as created by this act, be available for use
491	in determining the allocation of premiums to the various
492	municipalities and special fire control districts for the 2004
493	insurance premium tax return that is due by March 1, 2005.
494	Section 8. If any law amended by this act was also amended
495	by a law enacted at the 2003 Regular Session, the 2003 Special
496	Session A, or the 2003 Special Session B of the Legislature,
497	such laws shall be construed as if they had been enacted at the
498	same session of the Legislature, and full effect shall be given
499	to each if possible.
500	Section 9. This act shall take effect January 1, 2004.