Senate Bill sb1612c2

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    Florida Senate - 2006                    CS for CS for SB 1612

    By the Committees on Ways and Means; Commerce and Consumer
    Services; and Senators Baker, Aronberg, Argenziano, Alexander,
    Bennett, Lawson, Peaden, Smith, Lynn, Bullard, King and
    Campbell


    576-2413-06

  1                      A bill to be entitled

  2         An act relating to fiscally constrained

  3         counties; amending s. 202.18, F.S.; providing

  4         for a distribution of communications services

  5         taxes to fiscally constrained counties;

  6         amending s. 218.65, F.S.; providing for a

  7         transitional emergency distribution from the

  8         Local Government Half-cent Sales Tax Clearing

  9         Trust Fund to certain fiscally constrained

10         counties; revising criteria for receiving

11         certain funds from the Local Government

12         Half-cent Sales Tax Clearing Trust Fund;

13         creating s. 218.67, F.S.; providing eligibility

14         criteria to qualify as a fiscally constrained

15         county; providing for the distribution of

16         additional funds to certain fiscally

17         constrained counties; providing for a phaseout

18         period; providing for the use of funds;

19         amending s. 985.2155, F.S.; revising the

20         definition of the term "fiscally constrained

21         county" applicable to shared county and state

22         responsibility for juvenile detention;

23         providing an effective date.

24  

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

26  

27         Section 1.  Subsection (2) of section 202.18, Florida

28  Statutes, is amended to read:

29         202.18  Allocation and disposition of tax

30  proceeds.--The proceeds of the communications services taxes

31  remitted under this chapter shall be treated as follows:

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 1         (2)  The proceeds of the taxes remitted under s.

 2  202.12(1)(b) shall be divided as follows:

 3         (a)  The portion of such proceeds which constitutes

 4  gross receipts taxes, imposed at the rate prescribed in

 5  chapter 203, shall be deposited as provided by law and in

 6  accordance with s. 9, Art. XII of the State Constitution.

 7         (b)  Sixty-three percent of the remainder shall be

 8  allocated to the state and distributed pursuant to s.

 9  212.20(6), except that the proceeds allocated pursuant to s.

10  212.20(6)(d)3. shall be prorated to the participating counties

11  in the same proportion as that month's collection of the taxes

12  and fees imposed pursuant to chapter 212 and paragraph (1)(b).

13         (c)1.  During each calendar year, the remaining portion

14  of such proceeds shall be transferred to the Local Government

15  Half-cent Sales Tax Clearing Trust Fund. Seventy percent of

16  such proceeds and shall be allocated in the same proportion as

17  the allocation of total receipts of the half-cent sales tax

18  under s. 218.61 and the emergency distribution under s. 218.65

19  in the prior state fiscal year. Thirty percent of such

20  proceeds shall be distributed pursuant to s. 218.67.

21         2.  The proportion of the proceeds allocated based on

22  the emergency distribution under s. 218.65 shall be

23  distributed pursuant to s. 218.65.

24         3.  In each calendar year, the proportion of the

25  proceeds allocated based on the half-cent sales tax under s.

26  218.61 shall be allocated to each county in the same

27  proportion as the county's percentage of total sales tax

28  allocation for the prior state fiscal year and distributed

29  pursuant to s. 218.62.

30         4.  The department shall distribute the appropriate

31  amount to each municipality and county each month at the same

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 1  time that local communications services taxes are distributed

 2  pursuant to subsection (3).

 3         Section 2.  Section 218.65, Florida Statutes, is

 4  amended to read:

 5         218.65  Emergency distribution.--

 6         (1)  Each county government which meets the provisions

 7  of subsection (2) or subsection (8)(7) and which participates

 8  in the local government half-cent sales tax shall receive a

 9  distribution from the Local Government Half-cent Sales Tax

10  Clearing Trust Fund in addition to its regular monthly

11  distribution as provided in this part.

12         (2)  The Legislature hereby finds and declares that a

13  fiscal emergency exists in any county which meets the

14  following criteria specified in paragraph (a), if applicable,

15  and the criterion specified in paragraph (b):

16         (a)  If The county has a population of 65,000 or less;

17  and above:

18         1.  In any year from 1977 to 1981, inclusive, the value

19  of net new construction and additions placed on the tax roll

20  for that year was less than 2 percent of the taxable value for

21  school purposes on the roll for that year, exclusive of such

22  net value; or

23         2.  The percentage increase in county taxable value

24  from 1979 to 1980, 1980 to 1981, or 1981 to 1982 was less than

25  3 percent.

26         (b)  The moneys distributed to the county government

27  pursuant to s. 218.62 for the prior fiscal year were less than

28  the current per capita limitation, based on the population of

29  that county.

30         (3)  Qualification under this section shall be

31  determined annually at the start of the fiscal year. Emergency

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 1  and supplemental moneys shall be distributed monthly with

 2  other moneys provided pursuant to this part.

 3         (4)  For the fiscal year beginning in 1988, the per

 4  capita limitation shall be $24.60. Thereafter, commencing with

 5  the fiscal year which begins in 1989, this limitation shall be

 6  adjusted annually for inflation. The annual adjustment to the

 7  per capita limitation for each fiscal period shall be the

 8  percentage change in the state and local government price

 9  deflator for purchases of goods and services, all items, 1983

10  equals 100, or successor reports for the preceding calendar

11  year as initially reported by the United States Department of

12  Commerce, Bureau of Economic Analysis, as certified by the

13  Florida Consensus Estimating Conference.

14         (5)  At the beginning of each fiscal year, the

15  Department of Revenue shall calculate a base allocation for

16  each eligible county equal to the difference between the

17  current per capita limitation times the county's population,

18  minus prior year ordinary distributions to the county pursuant

19  to ss. 212.20(6)(d)3., 218.61, and 218.62. If moneys deposited

20  into the Local Government Half-cent Sales Tax Clearing Trust

21  Fund pursuant to s. 212.20(6)(d)4., excluding moneys

22  appropriated for supplemental distributions pursuant to

23  subsection (8)(7), for the current year are less than or equal

24  to the sum of the base allocations, each eligible county shall

25  receive a share of the appropriated amount proportional to its

26  base allocation. If the deposited amount exceeds the sum of

27  the base allocations, each county shall receive its base

28  allocation, and the excess appropriated amount, less any

29  amounts distributed under subsection (6), shall be distributed

30  equally on a per capita basis among the eligible counties.

31  

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 1         (6)  If moneys deposited in the Local Government

 2  Half-cent Sales Tax Clearing Trust Fund pursuant to s.

 3  202.18(2)(c)1. exceed the amount necessary to provide the base

 4  allocation to each eligible county, the moneys in the trust

 5  fund may be used to provide a transitional distribution, as

 6  specified in this subsection, to certain counties whose

 7  population has increased. The transitional distribution shall

 8  be made available to each county that qualified for a

 9  distribution under subsection (2) in the prior year but does

10  not, because of the requirements of paragraph (2)(a), qualify

11  for a distribution in the current year. Beginning on July 1 of

12  the year following the year in which the county no longer

13  qualifies for a distribution under subsection (2), the county

14  shall receive two-thirds of the amount received in the prior

15  year, and beginning July 1 of the second year following the

16  year in which the county no longer qualifies for a

17  distribution under subsection (2), the county shall receive

18  one-third of the amount it received in the last year it

19  qualified for the distribution under subsection (2). If

20  insufficient moneys are available in the Local Government

21  Half-cent Sales Tax Clearing Trust Fund to fully provide such

22  a transitional distribution to each county that meets the

23  eligibility criteria in this section, each eligible county

24  shall receive a share of the available moneys proportional to

25  the amount it would have received had moneys been sufficient

26  to fully provide such a transitional distribution to each

27  eligible county.

28         (7)(6)  There is hereby annually appropriated from the

29  Local Government Half-cent Sales Tax Clearing Trust Fund the

30  distribution provided in s. 212.20(6)(d)4. to be used for

31  

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 1  emergency and supplemental distributions pursuant to this

 2  section.

 3         (8)(7)(a)  Any county the inmate population of which in

 4  any year is greater than 7 percent of the total population of

 5  the county is eligible for a supplemental distribution for

 6  that year from funds expressly appropriated therefor. At the

 7  beginning of each fiscal year, the Department of Revenue shall

 8  calculate a supplemental allocation for each eligible county

 9  equal to the current per capita limitation pursuant to

10  subsection (4) times the inmate population of the county. If

11  moneys appropriated for distribution pursuant to this section

12  for the current year are less than the sum of supplemental

13  allocations, each eligible county shall receive a share of the

14  appropriated amount proportional to its supplemental

15  allocation. Otherwise, each shall receive an amount equal to

16  its supplemental allocation.

17         (b)  For the purposes of this subsection, the term:

18         1.  "Inmate population" means the latest official state

19  estimate of the number of inmates and patients residing in

20  institutions operated by the Federal Government, the

21  Department of Corrections, or the Department of Children and

22  Family Services.

23         2.  "Total population" includes inmate population and

24  noninmate population.

25         Section 3.  Section 218.67, Florida Statutes, is

26  created to read:

27         218.67  Distribution for fiscally constrained

28  counties.--

29         (1)  Each county for which the value of a mill will

30  raise no more than $4 million in revenue, based on the taxable

31  value certified pursuant to s. 1011.62(4)(a)1.a., from the

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 1  previous July 1 shall be considered a fiscally constrained

 2  county.

 3         (2)  Each fiscally constrained county government that

 4  participates in the local government half-cent sales tax shall

 5  be eligible to receive an additional distribution from the

 6  Local Government Half-cent Sales Tax Clearing Trust Fund, as

 7  provided in s. 212.20, in addition to its regular monthly

 8  distribution provided under this part and any emergency or

 9  supplemental distribution under s. 218.65.

10         (3)  The amount to be distributed to each fiscally

11  constrained county shall be determined by the Department of

12  Revenue at the beginning of the fiscal year, using the prior

13  fiscal year's July 1 taxable value certified pursuant to s.

14  1011.62(4)(a)1.a., tax data, population as defined in s.

15  218.21, and millage rate levied for the prior fiscal year. The

16  amount distributed shall be allocated based upon the following

17  factors:

18         (a)  The relative revenue-raising-capacity factor shall

19  be the ability of the eligible county to generate ad valorem

20  revenues from 1 mill of taxation on a per capita basis. A

21  county that raises no more than $25 per capita from 1 mill

22  shall be assigned a value of 1; a county that raises more than

23  $25 but no more than $30 per capita from 1 mill shall be

24  assigned a value of 0.75; and a county that raises more than

25  $30 but no more than $50 per capita from 1 mill shall be

26  assigned a value of 0.5. No value shall be assigned to

27  counties that raise more than $50 per capita from 1 mill of ad

28  valorem taxation.

29         (b)  The local-effort factor shall be a measure of the

30  relative level of local effort of the eligible county as

31  indicated by the millage rate levied for the prior fiscal

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 1  year. The local-effort factor shall be the most recently

 2  adopted countywide operating millage rate for each eligible

 3  county multiplied by 0.1.

 4         (c)  Each eligible county's proportional allocation of

 5  the total amount available to be distributed to all of the

 6  eligible counties shall be in the same proportion as the sum

 7  of the county's two factors is to the sum of the two factors

 8  for all eligible counties. The counties that are eligible to

 9  receive an allocation under this subsection and the amount

10  available to be distributed to such counties shall not include

11  counties participating in the phaseout period under subsection

12  (4) or the amounts they remain eligible to receive during the

13  phaseout.

14         (4)  For those counties that no longer qualify under

15  the requirements of subsection (1) after the effective date of

16  this act, there shall be a 2-year phaseout period. Beginning

17  on July 1 of the year following the year in which the value of

18  a mill for that county exceeds $4 million in revenue, the

19  county shall receive two-thirds of the amount received in the

20  prior year, and beginning on July 1 of the second year

21  following the year in which the value of a mill for that

22  county exceeds $4 million in revenue, the county shall receive

23  one-third of the amount received in the last year that the

24  county qualified as a fiscally constrained county. Following

25  the 2-year phaseout period, the county shall no longer be

26  eligible to receive any distributions under this section

27  unless the county can be considered a fiscally constrained

28  county as provided in subsection (1).

29         (5)  The revenues received under this section may be

30  used by a county for any public purpose, except that such

31  revenues may not be used to pay debt service on bonds, notes,

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    Florida Senate - 2006                    CS for CS for SB 1612
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 1  certificates of participation, or any other forms of

 2  indebtedness.

 3         Section 4.  Paragraph (b) of subsection (2) of section

 4  985.2155, Florida Statutes, is amended to read:

 5         985.2155  Shared county and state responsibility for

 6  juvenile detention.--

 7         (2)  As used in this section, the term:

 8         (b)  "Fiscally constrained county" means a county

 9  designated as a rural area of critical economic concern under

10  s. 288.0656 for which the value of a mill in the county is no

11  more than $4 $3 million, based on the property valuations and

12  tax data annually published by the Department of Revenue under

13  s. 195.052.

14         Section 5.  This act shall take effect July 1, 2006.

15  

16          STATEMENT OF SUBSTANTIAL CHANGES CONTAINED IN
                       COMMITTEE SUBSTITUTE FOR
17                       CS/Senate Bill 1612

18                                 

19  The Committee Substitute for CS/SB 1612 replaces the funding
    source for distributions to fiscally constrained counties.  It
20  replaces general revenue, $16.2 million that would otherwise
    go to the state, with communications services taxes, from
21  direct-to-home satellite service, that are currently
    distributed to counties and municipalities.
22  
    It requires that 30 percent of the proceeds from the
23  communications services tax, for direct-to-home satellite
    service, which are deposited in the Local Government Half-cent
24  Sales Tax Clearing Trust Fund, will be distributed to fiscally
    constrained counties.  In fiscal year 2006-1007, this will
25  result in a distribution of $16.7 million to such counties and
    a commensurate decrease to counties and municipalities
26  generally.

27  It also specifies that the taxable values to be used in
    calculating which counties are fiscally constrained are the
28  taxable values used for school purposes and calculated on the
    prior July 1.
29  
    It further specifies that the population estimates to be used
30  in calculating which counties are fiscally constrained are the
    local government estimates provided to the Governor by the
31  Office of Economic and Demographic Research each April 1,
    which are used for revenue sharing-purposes.
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