HJR 0519

1	House Joint Resolution
2	A joint resolution proposing amendments to Section 1 of
3	Article VII and Section 21 of Article XII of the State
4	Constitution, relating to a limitation on state
5	appropriations.
6
7	Be It Resolved by the Legislature of the State of Florida:
8
9	That the amendments to Section 1 of Article VII and Section
10	21 of Article XII of the State Constitution set forth below are
11	agreed to and shall be submitted to the electors of Florida for
12	approval or rejection at the general election to be held in
13	November 2006:
14	ARTICLE VII
15	FINANCE AND TAXATION
16	SECTION 1.  Taxation; appropriations; state expenses; state
17	appropriations revenue limitation.--
18	(a)  No tax shall be levied except in pursuance of law. No
19	state ad valorem taxes shall be levied upon real estate or
20	tangible personal property. All other forms of taxation shall be
21	preempted to the state except as provided by general law.
22	(b)  Motor vehicles, boats, airplanes, trailers, trailer
23	coaches and mobile homes, as defined by law, shall be subject to
24	a license tax for their operation in the amounts and for the
25	purposes prescribed by law, but shall not be subject to ad
26	valorem taxes.
27	(c)  No money shall be drawn from the treasury except in
28	pursuance of appropriation made by law.
29	(d)  Provision shall be made by law for raising sufficient
30	revenue to defray the expenses of the state for each fiscal
31	period.
32	(e)(1)  State appropriations for any fiscal year shall be
33	limited to state appropriations for the immediately preceding
34	fiscal year, plus an adjustment for growth. For purposes of
35	calculating such limitation, "state appropriations" shall not
36	include any portion of state appropriations spent or to be spent
37	from receipt of federal funds.
38	(2)  The "adjustment for growth" shall be an amount
39	expressed as a percentage equal to the average annual rate of
40	growth in median household income in Florida over the most
41	recent five years. Median household income in Florida shall be
42	that established and published by the United States Department
43	of Commerce or its successor. State appropriations for the
44	immediately preceding fiscal year shall be multiplied by the
45	growth percentage and that product added to the immediately
46	preceding fiscal year's state appropriations to establish the
47	state appropriations limitation for the fiscal year. The state
48	appropriations limitation established under this subsection
49	shall be calculated by the following formula:
50
51	SAL = (SAPFY x MHIGR%) + SAPFY
52
53	Where:
54	SAL = state appropriations limitation.
55	SAPFY = state appropriations for the immediately preceding
56	fiscal year.
57	MHIGR% = median household income growth rate percentage,
58	averaged over the most recent five years.
59
60	(3)  State revenues collected for any fiscal year in excess
61	of the state appropriations limitation shall be transferred to
62	the budget stabilization fund until the fund reaches the maximum
63	balance specified in Section 19(g) of Article III and thereafter
64	shall be refunded to taxpayers as provided by general law. For
65	purposes of this paragraph, the term "state revenues" includes
66	general revenue and trust fund receipts but does not include
67	federal fund receipts.
68	(4)  The state appropriations limitation required by this
69	subsection shall not apply in any fiscal year in which the
70	governor declares a state financial emergency because of a war,
71	a natural catastrophe, an economic depression, or any event of
72	similar magnitude. However, the legislature must agree by a
73	three-fourths vote of the membership of each house in a separate
74	bill that contains no other subject to suspend the state
75	appropriations limitation for that year. Except as provided
76	herein, state revenues collected for any fiscal year shall be
77	limited to state revenues allowed under this subsection for the
78	prior fiscal year plus an adjustment for growth. As used in this
79	subsection, "growth" means an amount equal to the average annual
80	rate of growth in Florida personal income over the most recent
81	twenty quarters times the state revenues allowed under this
82	subsection for the prior fiscal year. For the 1995-1996 fiscal
83	year, the state revenues allowed under this subsection for the
84	prior fiscal year shall equal the state revenues collected for
85	the 1994-1995 fiscal year. Florida personal income shall be
86	determined by the legislature, from information available from
87	the United States Department of Commerce or its successor on the
88	first day of February prior to the beginning of the fiscal year.
89	State revenues collected for any fiscal year in excess of this
90	limitation shall be transferred to the budget stabilization fund
91	until the fund reaches the maximum balance specified in Section
92	19(g) of Article III, and thereafter shall be refunded to
93	taxpayers as provided by general law. State revenues allowed
94	under this subsection for any fiscal year may be increased by a
95	two-thirds vote of the membership of each house of the
96	legislature in a separate bill that contains no other subject
97	and that sets forth the dollar amount by which the state
98	revenues allowed will be increased. The vote may not be taken
99	less than seventy-two hours after the third reading of the bill.
100	For purposes of this subsection, "state revenues" means taxes,
101	fees, licenses, and charges for services imposed by the
102	legislature on individuals, businesses, or agencies outside
103	state government. However, "state revenues" does not include:
104	revenues that are necessary to meet the requirements set forth
105	in documents authorizing the issuance of bonds by the state;
106	revenues that are used to provide matching funds for the federal
107	Medicaid program with the exception of the revenues used to
108	support the Public Medical Assistance Trust Fund or its
109	successor program and with the exception of state matching funds
110	used to fund elective expansions made after July 1, 1994;
111	proceeds from the state lottery returned as prizes; receipts of
112	the Florida Hurricane Catastrophe Fund; balances carried forward
113	from prior fiscal years; taxes, licenses, fees, and charges for
114	services imposed by local, regional, or school district
115	governing bodies; or revenue from taxes, licenses, fees, and
116	charges for services required to be imposed by any amendment or
117	revision to this constitution after July 1, 1994. An adjustment
118	to the revenue limitation shall be made by general law to
119	reflect the fiscal impact of transfers of responsibility for the
120	funding of governmental functions between the state and other
121	levels of government. The legislature shall, by general law,
122	prescribe procedures necessary to administer this subsection.
123	ARTICLE XII
124	SCHEDULE
125	SECTION 21.  State appropriations revenue limitation.--The
126	amendment to Section 1 of Article VII limiting state
127	appropriations, if adopted at the general election in November
128	2006, revenues shall take effect January 1, 2007 1995, and shall
129	first be applicable to state fiscal year 2007-2008 1995-1996.
130	BE IT FURTHER RESOLVED that the title and substance of the
131	amendment proposed herein shall appear on the ballot as follows:
132	LIMITATION ON STATE APPROPRIATIONS
133	Proposes amendments to Section 1 of Article VII and Section
134	21 of Article XII of the State Constitution to replace the state
135	revenue limitation with an appropriations limitation that limits
136	state appropriations for any fiscal year, beginning in fiscal
137	year 2007-2008, to state appropriations for the immediately
138	preceding fiscal year plus a growth adjustment; bases the growth
139	adjustment on median household income in Florida rather than on
140	the aggregate personal income of Floridians; continues the
141	transfer of excess revenues to the Budget Stabilization Fund
142	until fully funded and the refund of the rest to taxpayers
143	pursuant to general law; and suspends the limitation in fiscal
144	years of major financial emergency declared by the Governor and
145	approved by the Legislature by a three-fourths vote of the
146	membership of each house thereof in a separate bill containing
147	no other subject.

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