Amendment

Bill No. 0251

Amendment No. 486351

CHAMBER ACTION
Senate		House
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1	Representative Sansom offered the following:
2
3	Amendment (with title amendment)
4	Remove everything after the enacting clause, and insert:
5	Section 1.  Section 175.1015, Florida Statutes, is created
6	to read:
7	175.1015  Determination of local premium tax situs.--
8	(1)(a)  Any insurance company that is obligated to report
9	and remit the excise tax on property insurance premiums imposed
10	under s. 175.101 shall be held harmless from any liability,
11	including, but not limited to, liability for taxes, interest, or
12	penalties that would otherwise be due solely as a result of an
13	assignment of an insured property to an incorrect local taxing
14	jurisdiction if the insurance company exercises due diligence in
15	applying an electronic database provided by the Department of
16	Revenue under subsection (2). Insurance companies that do not
17	use the electronic database provided by the Department of
18	Revenue or that do not exercise due diligence in applying the
19	electronic database for tax years on or after January 1, 2006,
20	are subject to a 0.5 percent penalty on the portion of the
21	premium pertaining to any insured risk that is improperly
22	assigned, whether assigned to an improper local taxing
23	jurisdiction, not assigned to a local taxing jurisdiction when
24	it should be assigned to a local taxing jurisdiction, or
25	assigned to a local taxing jurisdiction when it should not be
26	assigned to a local taxing jurisdiction.
27	(b)  Any insurance company that is obligated to report and
28	remit the excise tax on commercial property insurance premiums
29	imposed under s. 175.101 and is unable, after due diligence, to
30	assign an insured property to a specific local taxing
31	jurisdiction for purposes of complying with paragraph(a) shall
32	remit the excise tax on commercial property insurance premiums
33	using a methodology of apportionment in a manner consistent with
34	the remittance for the 2004 calendar year. An insurance company
35	which makes two contacts with the agent responsible for a
36	commercial property insurance application for the purpose of
37	verifying information on the application necessary for the
38	assignment to the appropriate taxing jurisdiction, shall be
39	considered to have exercised due diligence. Any insurance
40	company which complies with the provisions of this paragraph
41	shall not be subject to the penalty provided in paragraph (a).
42	(2)(a)  The Department of Revenue shall, subject to
43	legislative appropriation, create as soon as practical and
44	feasible, and thereafter shall maintain, an electronic database
45	that conforms to any format approved by the American National
46	Standards Institute's Accredited Standards Committee X12 and
47	that designates for each street address and address range in the
48	state, including any multiple postal street addresses applicable
49	to one street location, the local taxing jurisdiction in which
50	the street address and address range is located, and the
51	appropriate code for each such participating local taxing
52	jurisdiction, identified by one nationwide standard numeric
53	code. The nationwide standard numeric code must contain the same
54	number of numeric digits, and each digit or combination of
55	digits must refer to the same level of taxing jurisdiction
56	throughout the United States and must be in a format similar to
57	FIPS 55-3 or other appropriate standard approved by the
58	Federation of Tax Administrators and the Multistate Tax
59	Commission. Each address or address range must be provided in
60	standard postal format, including the street number, street
61	number range, street name, and zip code. Each year after the
62	creation of the initial database, the Department of Revenue
63	shall annually create and maintain a database for the current
64	tax year. Each annual database must be calendar-year specific.
65	(b)1.  Each participating local taxing jurisdiction shall
66	furnish to the Department of Revenue all information needed to
67	create the electronic database as soon as practical and
68	feasible. The information furnished to the Department of Revenue
69	must specify an effective date.
70	2.  Each participating local taxing jurisdiction shall
71	furnish to the Department of Revenue all information needed to
72	create and update the current year's database, including changes
73	in annexations, incorporations, and reorganizations and any
74	other changes in jurisdictional boundaries, as well as changes
75	in eligibility to participate in the excise tax imposed under
76	this chapter. The information must specify an effective date and
77	must be furnished to the Department of Revenue by July 1 of the
78	current year.
79	3.  The Department of Revenue shall create and update the
80	current year's database in accordance with the information
81	furnished by participating local taxing jurisdictions under
82	subparagraph 1. or subparagraph 2., as appropriate. To the
83	extent practicable, the Department of Revenue shall post each
84	new annual database on a web site by September 1 of each year.
85	Each participating local taxing jurisdiction shall have access
86	to this web site and, within 30 days thereafter, shall provide
87	any corrections to the Department of Revenue. The Department of
88	Revenue shall finalize the current year's database and post it
89	on a web site by November 1 of the current year. If a dispute in
90	jurisdictional boundaries cannot be resolved so that changes in
91	boundaries may be included, as appropriate, in the database by
92	November 1, the changes may not be retroactively included in the
93	current year's database and the boundaries will remain the same
94	as in the previous year's database. The finalized database must
95	be used in assigning policies and premiums to the proper local
96	taxing jurisdiction for the insurance premium tax return due on
97	the following March 1 for the tax year 2005. For subsequent tax
98	years, the finalized database must be used in assigning policies
99	and premiums to the proper local taxing jurisdiction for the
100	insurance premium tax return due for the tax year beginning on
101	or after the January 1 following the website posting of the
102	database. Information contained in the electronic database is
103	conclusive for purposes of this chapter. The electronic database
104	is not an order, a rule, or a policy of general applicability.
105	4.  Each annual database must identify the additions,
106	deletions, and other changes to the preceding version of the
107	database.
108	(3)(a)  As used in this section, the term "due diligence"
109	means the care and attention that is expected from and is
110	ordinarily exercised by a reasonable and prudent person under
111	the circumstances.
112	(b)  Notwithstanding any law to the contrary, an insurance
113	company is exercising due diligence if the insurance company
114	complies with the provisions of paragraph (1)(b) or if the
115	insurance company assigns an insured's premium to local taxing
116	jurisdictions in accordance with the Department of Revenue's
117	annual database and with respect to such database:
118	1.  Expends reasonable resources to accurately and reliably
119	implement such method;
120	2.  Maintains adequate internal controls to correctly
121	include in its database of policyholders the location of the
122	property insured, in the proper address format, so that matching
123	with the department's database is accurate; and
124	3.  Corrects errors in the assignment of addresses to local
125	taxing jurisdictions within 120 days after the insurance company
126	discovers the errors.
127	(4)  There is annually appropriated from the moneys
128	collected under this chapter and deposited in the Police and
129	Firefighter's Premium Tax Trust Fund an amount sufficient to pay
130	the expenses of the Department of Revenue in administering this
131	section, but not to exceed $50,000 annually, adjusted annually
132	by the lesser of a 5 percent increase or the percentage of
133	growth in the total collections.
134	(5)  The Department of Revenue shall adopt rules necessary
135	to administer this section, including rules establishing
136	procedures and forms.
137	(6)  Any insurer that is obligated to collect and remit the
138	tax on property insurance imposed under s. 175.101 shall be held
139	harmless from any liability, including, but not limited to,
140	liability for taxes, interest, or penalties that would otherwise
141	be due solely as a result of an assignment of an insured
142	property to an incorrect local taxing jurisdiction, based on the
143	collection and remission of the tax accruing before January 1,
144	2005, if the insurer collects and reports this tax consistent
145	with filings for periods before January 1, 2005. Further, any
146	insurer that is obligated to collect and remit the tax on
147	property insurance imposed under this section is not subject to
148	an examination under s. 624.316 or s. 624.3161 which would occur
149	solely as a result of an assignment of an insured property to an
150	incorrect local taxing jurisdiction, based on the collection and
151	remission of such tax accruing before January 1, 2005.
152	Section 2.  Section 185.085, Florida Statutes, is created
153	to read:
154	185.085  Determination of local premium tax situs.--
155	(1)(a)  Any insurance company that is obligated to report
156	and remit the excise tax on casualty insurance premiums imposed
157	under s. 185.08 shall be held harmless from any liability,
158	including, but not limited to, liability for taxes, interest, or
159	penalties that would otherwise be due solely as a result of an
160	assignment of an insured property to an incorrect local taxing
161	jurisdiction if the insurance company exercises due diligence in
162	applying an electronic database provided by the Department of
163	Revenue under subsection (2). Insurance companies that do not
164	use the electronic database provided by the Department of
165	Revenue or that do not exercise due diligence in applying the
166	electronic database for tax years on or after January 1, 2006,
167	are subject to a 0.5 percent penalty on the portion of the
168	premium pertaining to any insured risk that is improperly
169	assigned, whether assigned to an improper local taxing
170	jurisdiction, not assigned to a local taxing jurisdiction when
171	it should be assigned to a local taxing jurisdiction, or
172	assigned to a local taxing jurisdiction when it should not be
173	assigned to a local taxing jurisdiction.
174	(b)  Any insurance company that is obligated to report and
175	remit the excise tax on commercial casualty insurance premiums
176	imposed under s. 185.08 and is unable, after due diligence, to
177	assign an insured property to a specific local taxing
178	jurisdiction for purposes of complying with paragraph(a) shall
179	remit the excise tax on commercial casualty insurance premiums
180	using a methodology of apportionment in a manner consistent with
181	the remittance for the 2004 calendar year. An insurance company
182	which makes two contacts with the agent responsible for a
183	commercial property insurance application for the purpose of
184	verifying information on the application necessary for the
185	assignment to the appropriate taxing jurisdiction, shall be
186	considered to have exercised due diligence. Any insurance
187	company which complies with the provisions of this paragraph
188	shall not be subject to the penalty provided in paragraph (a).
189	(2)(a)  The Department of Revenue shall, subject to
190	legislative appropriation, create as soon as practical and
191	feasible, and thereafter shall maintain, an electronic database
192	that conforms to any format approved by the American National
193	Standards Institute's Accredited Standards Committee X12 and
194	that designates for each street address and address range in the
195	state, including any multiple postal street addresses applicable
196	to one street location, the local taxing jurisdiction in which
197	the street address and address range is located, and the
198	appropriate code for each such participating local taxing
199	jurisdiction, identified by one nationwide standard numeric
200	code. The nationwide standard numeric code must contain the same
201	number of numeric digits, and each digit or combination of
202	digits must refer to the same level of taxing jurisdiction
203	throughout the United States and must be in a format similar to
204	FIPS 55-3 or other appropriate standard approved by the
205	Federation of Tax Administrators and the Multistate Tax
206	Commission. Each address or address range must be provided in
207	standard postal format, including the street number, street
208	number range, street name, and zip code. Each year after the
209	creation of the initial database, the Department of Revenue
210	shall annually create and maintain a database for the current
211	tax year. Each annual database must be calendar-year specific.
212	(b)1.  Each participating local taxing jurisdiction shall
213	furnish to the Department of Revenue all information needed to
214	create the electronic database as soon as practical and
215	feasible. The information furnished to the Department of Revenue
216	must specify an effective date.
217	2.  Each participating local taxing jurisdiction shall
218	furnish to the Department of Revenue all information needed to
219	create and update the current year's database, including changes
220	in annexations, incorporations, and reorganizations and any
221	other changes in jurisdictional boundaries, as well as changes
222	in eligibility to participate in the excise tax imposed under
223	this chapter. The information must specify an effective date and
224	must be furnished to the Department of Revenue by July 1 of the
225	current year.
226	3.  The Department of Revenue shall create and update the
227	current year's database in accordance with the information
228	furnished by participating local taxing jurisdictions under
229	subparagraph 1. or subparagraph 2., as appropriate. To the
230	extent practicable, the Department of Revenue shall post each
231	new annual database on a web site by September 1 of each year.
232	Each participating local taxing jurisdiction shall have access
233	to this web site and, within 30 days thereafter, shall provide
234	any corrections to the Department of Revenue. The Department of
235	Revenue shall finalize the current year's database and post it
236	on a web site by November 1 of the current year. If a dispute in
237	jurisdictional boundaries cannot be resolved so that changes in
238	boundaries may be included, as appropriate, in the database by
239	November 1, the changes may not be retroactively included in the
240	current year's database and the boundaries will remain the same
241	as in the previous year's database. The finalized database must
242	be used in assigning policies and premiums to the proper local
243	taxing jurisdiction for the insurance premium tax return due on
244	the following March 1 for the tax year 2005. For subsequent tax
245	years, the finalized database must be used in assigning policies
246	and premiums to the proper local taxing jurisdiction for the
247	insurance premium tax return due for the tax year beginning on
248	or after the January 1 following the website posting of the
249	database. Information contained in the electronic database is
250	conclusive for purposes of this chapter. The electronic database
251	is not an order, a rule, or a policy of general applicability.
252	4.  Each annual database must identify the additions,
253	deletions, and other changes to the preceding version of the
254	database.
255	(3)(a)  As used in this section, the term "due diligence"
256	means the care and attention that is expected from and is
257	ordinarily exercised by a reasonable and prudent person under
258	the circumstances.
259	(b)  Notwithstanding any law to the contrary, an insurance
260	company is exercising due diligence if the insurance company
261	complies with the provisions of paragraph (1)(b) or if the
262	insurance company assigns an insured's premium to local taxing
263	jurisdictions in accordance with the Department of Revenue's
264	annual database and with respect to such database:
265	1.  Expends reasonable resources to accurately and reliably
266	implement such method;
267	2.  Maintains adequate internal controls to correctly
268	include in its database of policyholders the location of the
269	property insured, in the proper address format, so that matching
270	with the department's database is accurate; and
271	3.  Corrects errors in the assignment of addresses to local
272	taxing jurisdictions within 120 days after the insurance company
273	discovers the errors.
274	(4)  There is annually appropriated from the moneys
275	collected under this chapter and deposited in the Police and
276	Firefighter's Premium Tax Trust Fund an amount sufficient to pay
277	the expenses of the Department of Revenue in administering this
278	section, but not to exceed $50,000 annually, adjusted annually
279	by the lesser of a 5 percent increase or the percentage of
280	growth in the total collections.
281	(5)  The Department of Revenue shall adopt rules necessary
282	to administer this section, including rules establishing
283	procedures and forms.
284	(6)(a)  Notwithstanding any other law, a methodology,
285	formula, or database that is adopted in any year after January
286	1, 2005, may not result in a distribution to a participating
287	municipality that has a retirement plan created pursuant to this
288	chapter of an amount of excise tax which is less than the amount
289	distributed to such participating municipality for calendar year
290	2004. However, if the total proceeds to be distributed for the
291	current year from the excise tax imposed under s. 185.08 are
292	less than the total amount distributed for calendar year 2004,
293	each participating municipality shall receive a current year
294	distribution that is proportionate to its share of the total
295	2004 calendar year distribution. If the total proceeds to be
296	distributed for the current year from the excise tax imposed
297	under s. 185.08 are greater than or equal to the total amount
298	distributed for calendar year 2004, each participating
299	municipality shall initially be distributed a minimum amount
300	equal to the amount received for calendar year 2004. The
301	remaining amount to be distributed for the current year, which
302	equals the total to be distributed for the current year, less
303	minimum distribution amount, shall be distributed to those
304	municipalities with an amount reported for the current year
305	which is greater than the amount distributed to such
306	municipality for calendar year 2004. Each municipality eligible
307	for distribution of this remaining amount shall receive its
308	proportionate share of the remaining amount based upon the
309	amount reported for that municipality, above the calendar year
310	2004 distribution for the current year, to the total amount over
311	the calendar year 2004 distribution for all municipalities with
312	an amount reported for the current year which is greater than
313	the calendar year 2004 distribution.
314	(b)  If a new municipality elects to participate under this
315	chapter during any year after January 1, 2005, such municipality
316	shall receive the total amount reported for the current- year
317	for such municipality. All other participating municipalities
318	shall receive a current year distribution, calculated as
319	provided in this section, which is proportionate to their share
320	of the total 2004 calendar year distribution after subtracting
321	the amount paid to the new participating plans.
322	(c)  This subsection expires January 1, 2008.
323	(7)  Any insurer that is obligated to collect and remit the
324	tax on casualty insurance imposed under s. 185.08 shall be held
325	harmless from any liability, including, but not limited to,
326	liability for taxes, interest, or penalties that would otherwise
327	be due solely as a result of an assignment of an insured risk to
328	an incorrect local taxing jurisdiction, based on the collection
329	and remission of the tax accruing before January 1, 2005, if the
330	insurer collects and reports this tax consistent with filings
331	for periods before January 1, 2005. Further, any insurer that is
332	obligated to collect and remit the tax on casualty insurance
333	imposed under this section is not subject to an examination
334	under s. 624.316 or s. 624.3161 which would occur solely as a
335	result of an assignment of an insured risk to an incorrect local
336	taxing jurisdiction, based on the collection and remission of
337	such tax accruing before January 1, 2005.
338	Section 3.  Subsection (1) of section 175.351, Florida
339	Statutes, is amended to read:
340	175.351  Municipalities and special fire control districts
341	having their own pension plans for firefighters.--For any
342	municipality, special fire control district, local law
343	municipality, local law special fire control district, or local
344	law plan under this chapter, in order for municipalities and
345	special fire control districts with their own pension plans for
346	firefighters, or for firefighters and police officers, where
347	included, to participate in the distribution of the tax fund
348	established pursuant to s. 175.101, local law plans must meet
349	the minimum benefits and minimum standards set forth in this
350	chapter.
351	(1)  PREMIUM TAX INCOME.--If a municipality has a pension
352	plan for firefighters, or a pension plan for firefighters and
353	police officers, where included, which in the opinion of the
354	division meets the minimum benefits and minimum standards set
355	forth in this chapter, the board of trustees of the pension
356	plan, as approved by a majority of firefighters of the
357	municipality, may:
358	(a)  Place the income from the premium tax in s. 175.101 in
359	such pension plan for the sole and exclusive use of its
360	firefighters, or for firefighters and police officers, where
361	included, where it shall become an integral part of that pension
362	plan and shall be used to pay extra benefits to the firefighters
363	included in that pension plan; or
364	(b)  Place the income from the premium tax in s. 175.101 in
365	a separate supplemental plan to pay extra benefits to
366	firefighters, or to firefighters and police officers where
367	included, participating in such separate supplemental plan.
368
369	The premium tax provided by this chapter shall in all cases be
370	used in its entirety to provide extra benefits to firefighters,
371	or to firefighters and police officers, where included.
372	However, local law plans in effect on October 1, 1998, shall be
373	required to comply with the minimum benefit provisions of this
374	chapter only to the extent that additional premium tax revenues
375	become available to incrementally fund the cost of such
376	compliance as provided in s. 175.162(2)(a). When a plan is in
377	compliance with such minimum benefit provisions, as subsequent
378	additional premium tax revenues become available, they shall be
379	used to provide extra benefits. For the purpose of this chapter,
380	"additional premium tax revenues" means revenues received by a
381	municipality or special fire control district pursuant to s.
382	175.121 which that exceed that amount received for calendar year
383	1997, and the term "extra benefits" means benefits in addition
384	to or greater than those provided to general employees of the
385	municipality and in addition to those in existence for
386	firefighters on March 12, 1999. Local law plans created by
387	special act before May 23, 1939, shall be deemed to comply with
388	this chapter.
389	Section 4.  Subsection (1) of section 185.35, Florida
390	Statutes, is amended to read:
391	185.35  Municipalities having their own pension plans for
392	police officers.--For any municipality, chapter plan, local law
393	municipality, or local law plan under this chapter, in order for
394	municipalities with their own pension plans for police officers,
395	or for police officers and firefighters where included, to
396	participate in the distribution of the tax fund established
397	pursuant to s. 185.08, local law plans must meet the minimum
398	benefits and minimum standards set forth in this chapter:
399	(1)  PREMIUM TAX INCOME.--If a municipality has a pension
400	plan for police officers, or for police officers and
401	firefighters where included, which, in the opinion of the
402	division, meets the minimum benefits and minimum standards set
403	forth in this chapter, the board of trustees of the pension
404	plan, as approved by a majority of police officers of the
405	municipality, may:
406	(a)  Place the income from the premium tax in s. 185.08 in
407	such pension plan for the sole and exclusive use of its police
408	officers, or its police officers and firefighters where
409	included, where it shall become an integral part of that pension
410	plan and shall be used to pay extra benefits to the police
411	officers included in that pension plan; or
412	(b)  May place the income from the premium tax in s. 185.08
413	in a separate supplemental plan to pay extra benefits to the
414	police officers, or police officers and firefighters where
415	included, participating in such separate supplemental plan.
416
417	The premium tax provided by this chapter shall in all cases be
418	used in its entirety to provide extra benefits to police
419	officers, or to police officers and firefighters, where
420	included.  However, local law plans in effect on October 1,
421	1998, shall be required to comply with the minimum benefit
422	provisions of this chapter only to the extent that additional
423	premium tax revenues become available to incrementally fund the
424	cost of such compliance as provided in s. 185.16(2). When a plan
425	is in compliance with such minimum benefit provisions, as
426	subsequent additional tax revenues become available, they shall
427	be used to provide extra benefits. For the purpose of this
428	chapter, "additional premium tax revenues" means revenues
429	received by a municipality pursuant to s. 185.10 which that
430	exceed the amount received for calendar year 1997, and the term
431	"extra benefits" means benefits in addition to or greater than
432	those provided to general employees of the municipality and in
433	addition to those in existence for police officers on March 12,
434	1999. Local law plans created by special act before May 23,
435	1939, shall be deemed to comply with this chapter.
436	Section 5.  Subsection (7) is added to section 175.061,
437	Florida Statutes, to read:
438	175.061  Board of trustees; members; terms of office;
439	meetings; legal entity; costs; attorney's fees.--For any
440	municipality, special fire control district, chapter plan, local
441	law municipality, local law special fire control district, or
442	local law plan under this chapter:
443	(7)  The board of trustees may, upon written request by the
444	retiree of the plan, or by a dependent, when authorized by the
445	retiree or the retiree's beneficiary, authorize the plan
446	administrator to withhold from the monthly retirement payment
447	those funds that are necessary to pay for the benefits being
448	received through the governmental entity from which the employee
449	retired, to pay the certified bargaining agent of the
450	governmental entity, and to make any payments required by law.
451	Section 6.  Present subsection (6) of section 185.05,
452	Florida Statutes, is redesignated as subsection (7), and a new
453	subsection (6) is added to that section, to read:
454	185.05  Board of trustees; members; terms of office;
455	meetings; legal entity; costs; attorney's fees.--For any
456	municipality, chapter plan, local law municipality, or local law
457	plan under this chapter:
458	(6)  The board of trustees may, upon written request by the
459	retiree of the plan, or by a dependent, when authorized by the
460	retiree or the retiree's beneficiary, authorize the plan
461	administrator to withhold from the monthly retirement payment
462	those funds that are necessary to pay for the benefits being
463	received through the governmental entity from which the employee
464	retired, to pay the certified bargaining agent of the
465	governmental entity, and to make any payments required by law.
466	Section 7.  The sum of $300,000 is appropriated from the
467	General Revenue Fund to the Department of Revenue for the one-
468	time expense of creating the original database called for by
469	sections 1 and 2 of this act and to support the implementation
470	process for use of the database. It is the intent of the
471	Legislature in providing this appropriation that the database
472	for sections 1 and 2 of this act be available for use in
473	determining the allocation of premiums to the various
474	municipalities and special fire control districts for the 2005
475	insurance premium tax return that is due by March 1, 2006.
476	Section 8.  The Legislature finds that a proper and
477	legitimate state purpose is served when employees and retirees
478	of the state and its political subdivisions, and the dependents,
479	survivors, and beneficiaries of such employees and retirees, are
480	extended the basic protections afforded by governmental
481	retirement systems. These persons must be provided benefits that
482	are fair and adequate and that are managed, administered, and
483	funded in an actuarially sound manner, as required by Section
484	14, Article X of the State Constitution, and part VII of chapter
485	112, Florida Statutes. Therefore, the Legislature determines and
486	declares that this act fulfills an important state interest.
487	Section 9.  This act shall take effect upon becoming a law.
488
489	================ T I T L E  A M E N D M E N T =============
490	Remove line 30 and insert:
491	Department of Revenue; providing that the act fulfills an
492	important state interest; providing an effective date.

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