Senate Bill sb1012

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    Florida Senate - 2006                                  SB 1012

    By Senator Geller





    31-785A-06

  1                      A bill to be entitled

  2         An act relating to insurance risk

  3         apportionment; amending s. 627.351, F.S.;

  4         requiring the board of governors of Citizens

  5         Property Insurance Corporation to certify

  6         deficits resulting from named hurricanes and

  7         tropical storms; requiring the Revenue

  8         Estimating Conference to determine net

  9         increases in tax revenues resulting from such

10         impacts; directing the Chief Financial Officer

11         to transfer moneys to the corporation from the

12         General Revenue Fund in an amount up to such

13         increase to offset such deficits; providing for

14         disposition of amount of increase in excess of

15         deficit; providing an effective date.

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17  Be It Enacted by the Legislature of the State of Florida:

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19         Section 1.  Paragraph (s) is added to subsection (6) of

20  section 627.351, Florida Statutes, to read:

21         627.351  Insurance risk apportionment plans.--

22         (6)  CITIZENS PROPERTY INSURANCE CORPORATION.--

23         (s)1.  If, during any calendar year, the corporation

24  sustains a deficit due to the impact of one or more named

25  hurricanes or tropical storms, including any deficit that

26  resulted from the impact of one or more named hurricanes or

27  tropical storms during the previous calendar year but that was

28  not realized until the current calendar year, the board of

29  governors shall certify the amount of the deficit to the

30  Revenue Estimating Conference by March 15 of the following

31  calendar year.

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    Florida Senate - 2006                                  SB 1012
    31-785A-06




 1         2.  The Revenue Estimating Conference shall, by July 1

 2  following such certification, estimate the net increased

 3  revenues accruing to the General Revenue Fund from taxes

 4  imposed under chapter 212 for the fiscal year during which the

 5  impact occurred and for the following fiscal year, which

 6  increase is attributable to such impact.

 7         3.a.  The Chief Financial Officer shall, by July 31

 8  following such certification, transfer from moneys in the

 9  General Revenue Fund to the corporation an amount equal to the

10  increased revenues estimated by the Revenue Estimating

11  Conference, but not more than the amount of the deficit

12  certified by the board of governors. Moneys so transferred

13  shall be used to offset assessments that would otherwise have

14  been made against assessable insurers and insureds under this

15  subsection.

16         b. If the increased revenues estimated under

17  subparagraph 2. are greater than the certified deficit, the

18  Chief Financial Officer shall transfer an amount equal to the

19  remaining increased revenues from the General Revenue Fund to

20  the Florida Hurricane Catastrophe Fund.

21         Section 2.  This act shall take effect upon becoming a

22  law.

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    Florida Senate - 2006                                  SB 1012
    31-785A-06




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 2                          SENATE SUMMARY

 3    In any calendar year in which the Citizens Property
      Insurance Corporation sustains a deficit due to the
 4    impact of one or more named hurricanes or tropical
      storms, the corporation board of governors shall certify
 5    the deficit to the Revenue Estimating Conference, which
      shall estimate the net sales tax increase due to that
 6    impact for the fiscal year of the impact and for the
      subsequent fiscal year. The Chief Financial Officer will
 7    transfer from the General Revenue Fund to the corporation
      an amount equal to the increase, but not more than the
 8    certified deficit, by the ensuing July 31 and transfer
      any remainder in excess of the deficit to the Florida
 9    Hurricane Catastrophe Fund.

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