HB 1257CS

CHAMBER ACTION



1The Fiscal Council recommends the following:
2
3     Council/Committee Substitute
4     Remove the entire bill and insert:
5
A bill to be entitled
6An act relating to fiscally constrained counties; amending
7s. 212.20, F.S.; providing for a distribution of tax
8revenue to fiscally constrained counties; amending s.
9218.65, F.S.; providing for a transitional emergency
10distribution from the Local Government Half-cent Sales Tax
11Clearing Trust Fund to certain fiscally constrained
12counties; revising criteria for receiving certain funds
13from the Local Government Half-cent Sales Tax Clearing
14Trust Fund; creating s. 218.67, F.S.; providing
15eligibility criteria to qualify as a fiscally constrained
16county; providing for the distribution of additional funds
17to certain fiscally constrained counties; providing for a
18phase-out period; providing for the use of funds; amending
19s. 288.0656, F.S.; authorizing the Office of Tourism,
20Trade, and Economic Development to accept and administer
21moneys appropriated for rural economic development;
22authorizing the office to contract with Enterprise
23Florida, Inc.; amending s. 288.1169, F.S.; correcting a
24cross reference; amending s. 985.2155, F.S.; revising the
25definition of the term "fiscally constrained county";
26providing an appropriation; providing an effective date.
27
28Be It Enacted by the Legislature of the State of Florida:
29
30     Section 1.  Paragraph (d) of subsection (6) of section
31212.20, Florida Statutes, is amended to read:
32     212.20  Funds collected, disposition; additional powers of
33department; operational expense; refund of taxes adjudicated
34unconstitutionally collected.--
35     (6)  Distribution of all proceeds under this chapter and s.
36202.18(1)(b) and (2)(b) shall be as follows:
37     (d)  The proceeds of all other taxes and fees imposed
38pursuant to this chapter or remitted pursuant to s. 202.18(1)(b)
39and (2)(b) shall be distributed as follows:
40     1.  In any fiscal year, the greater of $500 million, minus
41an amount equal to 4.6 percent of the proceeds of the taxes
42collected pursuant to chapter 201, or 5 percent of all other
43taxes and fees imposed pursuant to this chapter or remitted
44pursuant to s. 202.18(1)(b) and (2)(b) shall be deposited in
45monthly installments into the General Revenue Fund.
46     2.  Two-tenths of one percent shall be transferred to the
47Ecosystem Management and Restoration Trust Fund to be used for
48water quality improvement and water restoration projects.
49     3.  After the distribution under subparagraphs 1. and 2.,
508.814 percent of the amount remitted by a sales tax dealer
51located within a participating county pursuant to s. 218.61
52shall be transferred into the Local Government Half-cent Sales
53Tax Clearing Trust Fund. Beginning July 1, 2003, the amount to
54be transferred pursuant to this subparagraph to the Local
55Government Half-cent Sales Tax Clearing Trust Fund shall be
56reduced by 0.1 percent, and the department shall distribute this
57amount to the Public Employees Relations Commission Trust Fund
58less $5,000 each month, which shall be added to the amount
59calculated in subparagraph 4. and distributed accordingly.
60     4.  After the distribution under subparagraphs 1., 2., and
613., 0.095 percent of the available proceeds shall be transferred
62to the Local Government Half-cent Sales Tax Clearing Trust Fund
63and distributed pursuant to s. 218.65.
64     5.  After the distributions under subparagraphs 1., 2., 3.,
65and 4., 2.0440 percent of the available proceeds pursuant to
66this paragraph shall be transferred monthly to the Revenue
67Sharing Trust Fund for Counties pursuant to s. 218.215.
68     6.  After the distributions under subparagraphs 1., 2., 3.,
69and 4., 1.3409 percent of the available proceeds pursuant to
70this paragraph shall be transferred monthly to the Revenue
71Sharing Trust Fund for Municipalities pursuant to s. 218.215. If
72the total revenue to be distributed pursuant to this
73subparagraph is at least as great as the amount due from the
74Revenue Sharing Trust Fund for Municipalities and the former
75Municipal Financial Assistance Trust Fund in state fiscal year
761999-2000, no municipality shall receive less than the amount
77due from the Revenue Sharing Trust Fund for Municipalities and
78the former Municipal Financial Assistance Trust Fund in state
79fiscal year 1999-2000. If the total proceeds to be distributed
80are less than the amount received in combination from the
81Revenue Sharing Trust Fund for Municipalities and the former
82Municipal Financial Assistance Trust Fund in state fiscal year
831999-2000, each municipality shall receive an amount
84proportionate to the amount it was due in state fiscal year
851999-2000.
86     7.  After the distributions under subparagraphs 1., 2., 3.,
87and 4., $15 million of the available proceeds shall be
88transferred to the Local Government Half-cent Sales Tax Clearing
89Trust Fund and distributed pursuant to s. 218.67.
90     8.7.  Of the remaining proceeds:
91     a.  In each fiscal year, the sum of $29,915,500 shall be
92divided into as many equal parts as there are counties in the
93state, and one part shall be distributed to each county. The
94distribution among the several counties shall begin each fiscal
95year on or before January 5th and shall continue monthly for a
96total of 4 months. If a local or special law required that any
97moneys accruing to a county in fiscal year 1999-2000 under the
98then-existing provisions of s. 550.135 be paid directly to the
99district school board, special district, or a municipal
100government, such payment shall continue until such time that the
101local or special law is amended or repealed. The state covenants
102with holders of bonds or other instruments of indebtedness
103issued by local governments, special districts, or district
104school boards prior to July 1, 2000, that it is not the intent
105of this subparagraph to adversely affect the rights of those
106holders or relieve local governments, special districts, or
107district school boards of the duty to meet their obligations as
108a result of previous pledges or assignments or trusts entered
109into which obligated funds received from the distribution to
110county governments under then-existing s. 550.135. This
111distribution specifically is in lieu of funds distributed under
112s. 550.135 prior to July 1, 2000.
113     b.  The department shall distribute $166,667 monthly
114pursuant to s. 288.1162 to each applicant that has been
115certified as a "facility for a new professional sports
116franchise" or a "facility for a retained professional sports
117franchise" pursuant to s. 288.1162. Up to $41,667 shall be
118distributed monthly by the department to each applicant that has
119been certified as a "facility for a retained spring training
120franchise" pursuant to s. 288.1162; however, not more than
121$208,335 may be distributed monthly in the aggregate to all
122certified facilities for a retained spring training franchise.
123Distributions shall begin 60 days following such certification
124and shall continue for not more than 30 years. Nothing contained
125in this paragraph shall be construed to allow an applicant
126certified pursuant to s. 288.1162 to receive more in
127distributions than actually expended by the applicant for the
128public purposes provided for in s. 288.1162(6). However, a
129certified applicant is entitled to receive distributions up to
130the maximum amount allowable and undistributed under this
131section for additional renovations and improvements to the
132facility for the franchise without additional certification.
133     c.  Beginning 30 days after notice by the Office of
134Tourism, Trade, and Economic Development to the Department of
135Revenue that an applicant has been certified as the professional
136golf hall of fame pursuant to s. 288.1168 and is open to the
137public, $166,667 shall be distributed monthly, for up to 300
138months, to the applicant.
139     d.  Beginning 30 days after notice by the Office of
140Tourism, Trade, and Economic Development to the Department of
141Revenue that the applicant has been certified as the
142International Game Fish Association World Center facility
143pursuant to s. 288.1169, and the facility is open to the public,
144$83,333 shall be distributed monthly, for up to 168 months, to
145the applicant. This distribution is subject to reduction
146pursuant to s. 288.1169. A lump sum payment of $999,996 shall be
147made, after certification and before July 1, 2000.
148     9.8.  All other proceeds shall remain with the General
149Revenue Fund.
150     Section 2.  Section 218.65, Florida Statutes, is amended to
151read:
152     218.65  Emergency distribution.--
153     (1)  Each county government which meets the provisions of
154subsection (2) or subsection (8)(7) and which participates in
155the local government half-cent sales tax shall receive a
156distribution from the Local Government Half-cent Sales Tax
157Clearing Trust Fund in addition to its regular monthly
158distribution as provided in this part.
159     (2)  The Legislature hereby finds and declares that a
160fiscal emergency exists in any county which meets the following
161criteria specified in paragraph (a), if applicable, and the
162criterion specified in paragraph (b):
163     (a)  If The county has a population of 65,000 or less.
164above:
165     1.  In any year from 1977 to 1981, inclusive, the value of
166net new construction and additions placed on the tax roll for
167that year was less than 2 percent of the taxable value for
168school purposes on the roll for that year, exclusive of such net
169value; or
170     2.  The percentage increase in county taxable value from
1711979 to 1980, 1980 to 1981, or 1981 to 1982 was less than 3
172percent.
173     (b)  The moneys distributed to the county government
174pursuant to s. 218.62 for the prior fiscal year were less than
175the current per capita limitation, based on the population of
176that county.
177     (3)  Qualification under this section shall be determined
178annually at the start of the fiscal year. Emergency and
179supplemental moneys shall be distributed monthly with other
180moneys provided pursuant to this part.
181     (4)  For the fiscal year beginning in 1988, the per capita
182limitation shall be $24.60. Thereafter, commencing with the
183fiscal year which begins in 1989, this limitation shall be
184adjusted annually for inflation. The annual adjustment to the
185per capita limitation for each fiscal period shall be the
186percentage change in the state and local government price
187deflator for purchases of goods and services, all items, 1983
188equals 100, or successor reports for the preceding calendar year
189as initially reported by the United States Department of
190Commerce, Bureau of Economic Analysis, as certified by the
191Florida Consensus Estimating Conference.
192     (5)  At the beginning of each fiscal year, the Department
193of Revenue shall calculate a base allocation for each eligible
194county equal to the difference between the current per capita
195limitation times the county's population, minus prior year
196ordinary distributions to the county pursuant to ss.
197212.20(6)(d)3., 218.61, and 218.62. If moneys deposited into the
198Local Government Half-cent Sales Tax Clearing Trust Fund
199pursuant to s. 212.20(6)(d)4., excluding moneys appropriated for
200supplemental distributions pursuant to subsection (8)(7), for
201the current year are less than or equal to the sum of the base
202allocations, each eligible county shall receive a share of the
203appropriated amount proportional to its base allocation. If the
204deposited amount exceeds the sum of the base allocations, each
205county shall receive its base allocation, and the excess
206appropriated amount, less any amounts distributed under
207subsection (6), shall be distributed equally on a per capita
208basis among the eligible counties.
209     (6)  If moneys deposited in the Local Government Half-cent
210Sales Tax Clearing Trust Fund pursuant to s. 212.20(6)(d)4.
211exceed the amount necessary to provide the base allocation to
212each eligible county, the moneys in the trust fund may be used
213to provide a transitional distribution, as specified in this
214subsection, to certain counties whose population has increased.
215The transitional distribution shall be made available to each
216county that qualified for a distribution under subsection (2) in
217the prior year but does not, because of the requirements of
218paragraph (2)(a), qualify for a distribution in the current
219year. Beginning on July 1 of the year following the year in
220which the county no longer qualifies for a distribution under
221subsection (2), the county shall receive two-thirds of the
222amount received in the prior year, and beginning July 1 of the
223second year following the year in which the county no longer
224qualifies for a distribution under subsection (2), the county
225shall receive one-third of the amount it received in the last
226year it qualified for the distribution under subsection (2). If
227insufficient moneys are available in the Local Government Half-
228cent Sales Tax Clearing Trust Fund to fully provide such a
229transitional distribution to each county that meets the
230eligibility criteria in this section, each eligible county shall
231receive a share of the available moneys proportional to the
232amount it would have received had moneys been sufficient to
233fully provide such a transitional distribution to each eligible
234county.
235     (7)(6)  There is hereby annually appropriated from the
236Local Government Half-cent Sales Tax Clearing Trust Fund the
237distribution provided in s. 212.20(6)(d)4. to be used for
238emergency and supplemental distributions pursuant to this
239section.
240     (8)(7)(a)  Any county the inmate population of which in any
241year is greater than 7 percent of the total population of the
242county is eligible for a supplemental distribution for that year
243from funds expressly appropriated therefor. At the beginning of
244each fiscal year, the Department of Revenue shall calculate a
245supplemental allocation for each eligible county equal to the
246current per capita limitation pursuant to subsection (4) times
247the inmate population of the county. If moneys appropriated for
248distribution pursuant to this section for the current year are
249less than the sum of supplemental allocations, each eligible
250county shall receive a share of the appropriated amount
251proportional to its supplemental allocation. Otherwise, each
252shall receive an amount equal to its supplemental allocation.
253     (b)  For the purposes of this subsection, the term:
254     1.  "Inmate population" means the latest official state
255estimate of the number of inmates and patients residing in
256institutions operated by the Federal Government, the Department
257of Corrections, or the Department of Children and Family
258Services.
259     2.  "Total population" includes inmate population and
260noninmate population.
261     Section 3.  Section 218.67, Florida Statutes, is created to
262read:
263     218.67  Distribution for fiscally constrained counties.--
264     (1)  Each county for which the value of a mill will raise
265no more than $4 million in revenue, based on the property
266valuations and tax data annually published by the Department of
267Revenue under s. 195.052, shall be considered a fiscally
268constrained county.
269     (2)  Each fiscally constrained county government that
270participates in the local government half-cent sales tax shall
271be eligible to receive an additional distribution from the Local
272Government Half-cent Sales Tax Clearing Trust Fund, as provided
273in s. 212.20, in addition to its regular monthly distribution
274provided under this part and any emergency or supplemental
275distribution under s. 218.65.
276     (3)  The amount to be distributed to each fiscally
277constrained county shall be determined by the Department of
278Revenue at the beginning of the fiscal year, using the prior
279fiscal year property valuations, tax data, and population
280estimates and the millage rate levied for the prior fiscal year.
281The amount distributed shall be allocated based upon the
282following factors:
283     (a)  The relative revenue-raising-capacity factor shall be
284the ability of the eligible county to generate ad valorem
285revenues from one mill of taxation on a per capita basis. A
286county that raises no more than $25 per capita from one mill
287shall be assigned a value of 1; a county that raises more than
288$25 but no more than $30 per capita from one mill shall be
289assigned a value of 0.75; and a county that raises more than $30
290but no more than $50 per capita from one mill shall be assigned
291a value of 0.5. No value shall be assigned to counties that
292raise more than $50 per capita from one mill of ad valorem
293taxation.
294     (b)  The local-effort factor shall be a measure of the
295relative level of local effort of the eligible county as
296indicated by the millage rate levied for the prior fiscal year.
297The local-effort factor shall be the most recently adopted
298countywide operating millage rate for each eligible county
299multiplied by 0.1.
300     (c)  Each eligible county's proportional allocation of the
301total amount available to be distributed to all of the eligible
302counties shall be in the same proportion as the sum of the
303county's two factors is to the sum of the two factors for all
304eligible counties. The counties that are eligible to receive an
305allocation under this subsection and the amount available to be
306distributed to such counties shall not include counties
307participating in the phase-out period under subsection (4) nor
308the amounts they remain eligible to receive during the phase-
309out.
310     (4)  For those counties that no longer qualify under the
311requirements of subsection (1) after the effective date of this
312act, there shall be a 2-year phase-out period. Beginning on July
3131 of the year following the year in which the value of a mill
314for that county exceeds $4 million in revenue, the county shall
315receive two-thirds of the amount received in the prior year, and
316beginning on July 1 of the second year following the year in
317which the value of a mill for that county exceeds $4 million in
318revenue, the county shall receive one-third of the amount
319received in the last year that the county qualified as a
320fiscally constrained county. Following the 2-year phase-out
321period, the county shall no longer be eligible to receive any
322distributions under this section unless the county can be
323considered a fiscally constrained county as provided in
324subsection (1).
325     (5)  The revenues received under this section may be used
326by a county for any public purpose, except that such revenues
327may not be used to pay debt service on bonds, notes,
328certificates of participation, or any other forms of
329indebtedness.
330     Section 4.  Subsection (7) of section 288.0656, Florida
331Statutes, is amended to read:
332     288.0656  Rural Economic Development Initiative.--
333     (7)  REDI may recommend to the Governor up to three rural
334areas of critical economic concern.
335     (a)  A rural area of critical economic concern must be a
336rural community, or a region composed of such, that has been
337adversely affected by an extraordinary economic event or a
338natural disaster or that presents a unique economic development
339opportunity of regional impact that will create more than 1,000
340jobs over a 5-year period. The Governor may by executive order
341designate up to three rural areas of critical economic concern
342which will establish these areas as priority assignments for
343REDI as well as to allow the Governor, acting through REDI, to
344waive criteria, requirements, or similar provisions of any
345economic development incentive. Such incentives shall include,
346but not be limited to: the Qualified Target Industry Tax Refund
347Program under s. 288.106, the Quick Response Training Program
348under s. 288.047, the Quick Response Training Program for
349participants in the welfare transition program under s.
350288.047(8), transportation projects under s. 288.063, the
351brownfield redevelopment bonus refund under s. 288.107, and the
352rural job tax credit program under ss. 212.098 and 220.1895.
353Designation as a rural area of critical economic concern under
354this subsection shall be contingent upon the execution of a
355memorandum of agreement among the Office of Tourism, Trade, and
356Economic Development; the governing body of the county; and the
357governing bodies of any municipalities to be included within a
358rural area of critical economic concern. Such agreement shall
359specify the terms and conditions of the designation, including,
360but not limited to, the duties and responsibilities of the
361county and any participating municipalities to take actions
362designed to facilitate the retention and expansion of existing
363businesses in the area, as well as the recruitment of new
364businesses to the area.
365     (b)  The Office of Tourism, Trade, and Economic Development
366may accept and administer moneys appropriated to the office to
367support the implementation of the rural priority recommendation
368within the statewide strategic economic development plan as
369provided in s. 288.905, including the development of significant
370regional economic development projects in each of the designated
371rural areas of critical economic concern. The office may
372contract with Enterprise Florida, Inc., to develop regional
373project implementation plan components to include, but not be
374limited to, the identification of potential sites, direct
375marketing campaigns within the industry clusters for each area,
376identification of costs and barriers related to site preparation
377including permitting and infrastructure availability,
378development of memoranda of agreement and interlocal agreements
379with participating property owners and units of local government
380within each area regarding the parameters of project
381participation, and the development of incidental marketing
382support materials and expenses. The office may approve the
383expenditure of funds under this paragraph only to the extent
384that funds are appropriated for such purpose by the Legislature.
385     Section 5.  Subsection (6) of section 288.1169, Florida
386Statutes, is amended to read:
387     288.1169  International Game Fish Association World Center
388facility.--
389     (6)  The Department of Commerce must recertify every 10
390years that the facility is open, that the International Game
391Fish Association World Center continues to be the only
392international administrative headquarters, fishing museum, and
393Hall of Fame in the United States recognized by the
394International Game Fish Association, and that the project is
395meeting the minimum projections for attendance or sales tax
396revenues as required at the time of original certification. If
397the facility is not recertified during this 10-year review as
398meeting the minimum projections, then funding will be abated
399until certification criteria are met. If the project fails to
400generate $1 million of annual revenues pursuant to paragraph
401(2)(e), the distribution of revenues pursuant to s.
402212.20(6)(d)8.d. 212.20(6)(d)7.d. shall be reduced to an amount
403equal to $83,333 multiplied by a fraction, the numerator of
404which is the actual revenues generated and the denominator of
405which is $1 million. Such reduction shall remain in effect until
406revenues generated by the project in a 12-month period equal or
407exceed $1 million.
408     Section 6.  Paragraph (b) of subsection (2) of section
409985.2155, Florida Statutes, is amended to read:
410     985.2155  Shared county and state responsibility for
411juvenile detention.--
412     (2)  As used in this section, the term:
413     (b)  "Fiscally constrained county" means a county
414designated as a rural area of critical economic concern under s.
415288.0656 for which the value of a mill in the county is no more
416than $4 $3 million, based on the property valuations and tax
417data annually published by the Department of Revenue under s.
418195.052.
419     Section 7.  There is hereby appropriated the sum of $2
420million from the General Revenue Fund for the 2005-2006 fiscal
421year to the Office of Tourism, Trade, and Economic Development
422for the implementation of the rural priority recommendation
423within the statewide strategic economic development plan.
424     Section 8.  This act shall take effect July 1, 2005.


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