HB 1321

1	A bill to be entitled
2	An act relating to phosphate mining restoration,
3	reclamation, and cleanup; amending s. 211.3103, F.S.;
4	providing for an additional alternative distribution of
5	certain phosphate severance tax revenues to the
6	Nonmandatory Land Reclamation Trust Fund for certain
7	purposes for certain fiscal years; providing an effective
8	date.
9
10	Be It Enacted by the Legislature of the State of Florida:
11
12	Section 1.  Section 211.3103, Florida Statutes, as amended
13	by chapter 2003-423, Laws of Florida, is amended to read:
14	211.3103  Levy of tax on severance of phosphate rock; rate,
15	basis, and distribution of tax.--
16	(1)  There is hereby levied an excise tax upon every person
17	engaging in the business of severing phosphate rock from the
18	soils or waters of this state for commercial use. The tax shall
19	be collected, administered, and enforced by the department.
20	(2)  Beginning July 1, 2003, the proceeds of all taxes,
21	interest, and penalties imposed under this section shall be paid
22	into the State Treasury as follows:
23	(a)  The first $10 million in revenue collected from the
24	tax during each fiscal year shall be paid to the credit of the
25	Conservation and Recreation Lands Trust Fund.
26	(b)  The remaining revenues collected from the tax during
27	that fiscal year, after the required payment under paragraph
28	(a), shall be paid into the State Treasury as follows:
29	1.  For payment to counties in proportion to the number of
30	tons of phosphate rock produced from a phosphate rock matrix
31	located within such political boundary, 18.75 percent. The
32	department shall distribute this portion of the proceeds
33	annually based on production information reported by the
34	producers on the annual returns for the taxable year. Any such
35	proceeds received by a county shall be used only for phosphate-
36	related expenses.
37	2.  For payment to counties that have been designated a
38	rural area of critical economic concern pursuant to s. 288.0656
39	in proportion to the number of tons of phosphate rock produced
40	from a phosphate rock matrix located within such political
41	boundary, 15 percent. The department shall distribute this
42	portion of the proceeds annually based on production information
43	reported by the producers on the annual returns for the taxable
44	year.
45	3.  To the credit of the Phosphate Research Trust Fund in
46	the Department of Education, Division of Universities, 11.25
47	percent.
48	4.  To the credit of the Minerals Trust Fund, 11.25
49	percent.
50	5.  To the credit of the Nonmandatory Land Reclamation
51	Trust Fund, 43.75 percent.
52	(2)(3)  Beginning July 1, 2004, The proceeds of all taxes,
53	interest, and penalties imposed under this section shall be paid
54	into the State Treasury as follows:
55	(a)  The first $10 million in revenue collected from the
56	tax during each fiscal year shall be paid to the credit of the
57	Conservation and Recreation Lands Trust Fund.
58	(b)  From the revenues collected from the tax during that
59	fiscal year remaining after the required payment under paragraph
60	(a), the following amounts shall be deposited into the
61	Nonmandatory Land Reclamation Trust Fund to be used to close the
62	phosphogypsum stacks at Mulberry and Piney Point, as follows:
63	1.  For fiscal year 2005-2006, $10.2 million.
64	2.  For fiscal year 2006-2007, $12.2 million.
65	3.  For fiscal year 2007-2008, $6.2 million.
66	4.  For fiscal year 2008-2009, $3.0 million.
67	5.  For fiscal year 2009-2010, $2.0 million.
68	6.  For fiscal year 2010-2011, $1.3 million.
69	7.  For fiscal year 2011-2012, $1.1 million.
70	(c)(b)  The remaining revenues collected from the tax
71	during that fiscal year, after the required payments payment
72	under paragraphs paragraph (a) and (b), shall be paid into the
73	State Treasury as follows:
74	1.  To the credit of the General Revenue Fund of the state,
75	40.1 percent.
76	2.  For payment to counties in proportion to the number of
77	tons of phosphate rock produced from a phosphate rock matrix
78	located within such political boundary, 16.5 percent. The
79	department shall distribute this portion of the proceeds
80	annually based on production information reported by the
81	producers on the annual returns for the taxable year. Any such
82	proceeds received by a county shall be used only for phosphate-
83	related expenses.
84	3.  For payment to counties that have been designated a
85	rural area of critical economic concern pursuant to s. 288.0656
86	in proportion to the number of tons of phosphate rock produced
87	from a phosphate rock matrix located within such political
88	boundary, 13 percent. The department shall distribute this
89	portion of the proceeds annually based on production information
90	reported by the producers on the annual returns for the taxable
91	year. Payments under this subparagraph shall be made to the
92	counties unless the Legislature by special act creates a local
93	authority to promote and direct the economic development of the
94	county. If such authority exists, payments shall be made to that
95	authority.
96	4.  To the credit of the Phosphate Research Trust Fund in
97	the Division of Universities of the Department of Education, 9.3
98	percent.
99	5.  To the credit of the Minerals Trust Fund, 10.7 percent.
100	6.  To the credit of the Nonmandatory Land Reclamation
101	Trust Fund, 10.4 percent.
102	(3)(4)  Beginning July 1, 2003, and annually thereafter,
103	The Department of Environmental Protection may use up to $2
104	million of the funds in the Nonmandatory Land Reclamation Trust
105	Fund each year to purchase a surety bond or a policy of
106	insurance, the proceeds of which would pay the cost of
107	restoration, reclamation, and cleanup of any phosphogypsum stack
108	system and phosphate mining activities in the event that an
109	operator or permittee thereof has been subject to a final order
110	of bankruptcy and all funds available therefrom are determined
111	to be inadequate to accomplish such restoration, reclamation,
112	and cleanup. This section does not imply that such operator or
113	permittee is thereby relieved of its obligations or relieved of
114	any liabilities pursuant to any other remedies at law,
115	administrative remedies, statutory remedies, or remedies
116	pursuant to bankruptcy law. The department shall adopt rules to
117	implement this subsection, including the purchase and oversight
118	of the bond or policy.
119	(4)(5)  Funds distributed pursuant to subparagraph (2)(c)3.
120	subparagraphs (2)(b)2. and (3)(b)3. shall be used for:
121	(a)  Planning, preparing, and financing of infrastructure
122	projects for job creation and capital investment, especially
123	those related to industrial and commercial sites. Infrastructure
124	investments may include the following public or public-private
125	partnership facilities: stormwater systems, telecommunications
126	facilities, roads or other remedies to transportation
127	impediments, nature-based tourism facilities, or other physical
128	requirements necessary to facilitate trade and economic
129	development activities.
130	(b)  Maximizing the use of federal, local, and private
131	resources, including, but not limited to, those available under
132	the Small Cities Community Development Block Grant Program.
133	(c)  Projects that improve inadequate infrastructure that
134	has resulted in regulatory action that prohibits economic or
135	community growth, if such projects are related to specific job
136	creation or job retention opportunities.
137	(6)  Beginning January 1, 2004, The tax rate shall be the
138	base rate of $1.62 per ton severed.
139	(5)(7)  Beginning January 1, 2005, and annually thereafter,
140	The tax rate each year shall be the base rate times the base
141	rate adjustment for the tax year as calculated by the department
142	in accordance with subsection (7)(9).
143	(6)(8)  The excise tax levied by this section shall apply
144	to the total production of the producer during the taxable year,
145	measured on the basis of bone-dry tons produced at the point of
146	severance.
147	(7)(9)(a)  On or before March 30, 2004, and annually
148	thereafter, The department shall calculate each year the base
149	rate adjustment, if any, for phosphate rock based on the change
150	in the unadjusted annual producer price index for the prior
151	calendar year in relation to the unadjusted annual producer
152	price index for calendar year 1999.
153	(b)  For the purposes of determining the base rate
154	adjustment for any year, the base rate adjustment shall be a
155	fraction, the numerator of which is the unadjusted annual
156	producer price index for the prior calendar year and the
157	denominator of which is the unadjusted annual producer price
158	index for calendar year 1999.
159	(c)  The department shall provide the base rate, the base
160	rate adjustment, and the resulting tax rate to affected
161	producers by written notice on or before April 15 of the current
162	year.
163	(d)  If the producer price index for chemical and
164	fertilizer mineral mining is substantially revised, the
165	department shall make appropriate adjustment in the method used
166	to compute the base rate adjustment under this subsection which
167	will produce results reasonably consistent with the result which
168	would have been obtained if the producer price index for
169	phosphate rock primary products had not been revised. However,
170	the tax rate shall not be less than $1.56 per ton severed.
171	(e)  In the event the producer price index for phosphate
172	rock primary products is discontinued, then a comparable index
173	shall be selected by the department and adopted by rule.
174	(8)(10)  The excise tax levied on the severance of
175	phosphate rock shall be in addition to any ad valorem taxes
176	levied upon the separately assessed mineral interest in the real
177	property upon which the site of severance is located, or any
178	other tax, permit, or license fee imposed by the state or its
179	political subdivisions.
180	(9)(11)  The tax levied by this section shall be collected
181	in the manner prescribed in s. 211.33.
182	Section 2.  This act shall take effect July 1, 2005.

CODING: Words stricken are deletions; words underlined are additions.