Senate Bill sb1778c1

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    Florida Senate - 2007                           CS for SB 1778

    By the Committee on Finance and Tax; and Senator Alexander





    593-2620-07

  1                      A bill to be entitled

  2         An act relating to discretionary sales

  3         surtaxes; amending s. 212.055, F.S.; renaming

  4         the charter county transit system surtax;

  5         expanding eligibility to levy the transit

  6         surtax to all charter counties; removing all

  7         specific county government sales surtax caps;

  8         providing for one cap to apply to all of a

  9         county government's surtaxes combined;

10         providing an effective date.

11  

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

13  

14         Section 1.  Subsection (1), paragraph (h) of subsection

15  (2), paragraph (f) of subsection (3), paragraphs (a) and (b)

16  of subsection (4), paragraph (f) of subsection (5), and

17  paragraph (f) of subsection (7) of section 212.055, Florida

18  Statutes, are amended, and subsection (8) is added to that

19  section, to read:

20         212.055  Discretionary sales surtaxes; legislative

21  intent; authorization and use of proceeds.--It is the

22  legislative intent that any authorization for imposition of a

23  discretionary sales surtax shall be published in the Florida

24  Statutes as a subsection of this section, irrespective of the

25  duration of the levy. Each enactment shall specify the types

26  of counties authorized to levy; the rate or rates which may be

27  imposed; the maximum length of time the surtax may be imposed,

28  if any; the procedure which must be followed to secure voter

29  approval, if required; the purpose for which the proceeds may

30  be expended; and such other requirements as the Legislature

31  

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    Florida Senate - 2007                           CS for SB 1778
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 1  may provide. Taxable transactions and administrative

 2  procedures shall be as provided in s. 212.054.

 3         (1)  CHARTER COUNTY TRANSPORTATION TRANSIT SYSTEM

 4  SURTAX.--

 5         (a)  Each charter county which adopted a charter prior

 6  to January 1, 1984, and each county the government of which is

 7  consolidated with that of one or more municipalities, may levy

 8  a discretionary sales surtax, subject to approval by a

 9  majority vote of the electorate of the county or by a charter

10  amendment approved by a majority vote of the electorate of the

11  county.

12         (b)  The rate shall be up to 1 percent.

13         (c)  The proposal to adopt a discretionary sales surtax

14  is provided in this subsection and to create a trust fund

15  within the county accounts shall be placed on the ballot in

16  accordance with law at a time to be set at the discretion of

17  the governing body.

18         (d)  Proceeds from the surtax shall be applied to as

19  many or as few of the uses enumerated below in whatever

20  combination the county commission deems appropriate:

21         1.  Deposited by the county in the trust fund and shall

22  be used for the purposes of development, construction,

23  equipment, maintenance, operation, supportive services,

24  including a countywide bus system, and related costs of a

25  fixed guideway rapid transit system;

26         2.  Remitted by the governing body of the county to an

27  expressway, transit, or transportation authority created by

28  law to be used, at the discretion of such authority, for the

29  development, construction, operation, or maintenance of roads

30  or bridges in the county, for the operation and maintenance of

31  a bus system, for the payment of principal and interest on

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    Florida Senate - 2007                           CS for SB 1778
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 1  existing bonds issued for the construction of such roads or

 2  bridges, and, upon approval by the county commission, such

 3  proceeds may be pledged for bonds issued to refinance existing

 4  bonds or new bonds issued for the construction of such roads

 5  or bridges;

 6         3.  Used by the charter county for the development,

 7  construction, operation, and maintenance of roads and bridges

 8  in the county; for the expansion, operation, and maintenance

 9  of bus and fixed guideway systems; and for the payment of

10  principal and interest on bonds issued for the construction of

11  fixed guideway rapid transit systems, bus systems, roads, or

12  bridges; and such proceeds may be pledged by the governing

13  body of the county for bonds issued to refinance existing

14  bonds or new bonds issued for the construction of such fixed

15  guideway rapid transit systems, bus systems, roads, or bridges

16  and no more than 25 percent used for nontransit uses; and

17         4.  Used by the charter county for the planning,

18  development, construction, operation, and maintenance of roads

19  and bridges in the county; for the planning, development,

20  expansion, operation, and maintenance of bus and fixed

21  guideway systems; and for the payment of principal and

22  interest on bonds issued for the construction of fixed

23  guideway rapid transit systems, bus systems, roads, or

24  bridges; and such proceeds may be pledged by the governing

25  body of the county for bonds issued to refinance existing

26  bonds or new bonds issued for the construction of such fixed

27  guideway rapid transit systems, bus systems, roads, or

28  bridges. Pursuant to an interlocal agreement entered into

29  pursuant to chapter 163, the governing body of the charter

30  county may distribute proceeds from the tax to a municipality,

31  

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    Florida Senate - 2007                           CS for SB 1778
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 1  or an expressway or transportation authority created by law to

 2  be expended for the purpose authorized by this paragraph.

 3         (2)  LOCAL GOVERNMENT INFRASTRUCTURE SURTAX.--

 4         (h)  Notwithstanding any other provision of this

 5  section, a county shall not levy local option sales surtaxes

 6  authorized in this subsection and subsections (3), (4), and

 7  (5) in excess of a combined rate of 1 percent.

 8         (3)  SMALL COUNTY SURTAX.--

 9         (f)  Notwithstanding any other provision of this

10  section, a county shall not levy local option sales surtaxes

11  authorized in this subsection and subsections (2), (4), and

12  (5) in excess of a combined rate of 1 percent.

13         (4)  INDIGENT CARE AND TRAUMA CENTER SURTAX.--

14         (a)1.  The governing body in each county that the

15  government of which is not consolidated with that of one or

16  more municipalities, which has a population of at least

17  800,000 residents and is not authorized to levy a surtax under

18  subsection (5), may levy, pursuant to an ordinance either

19  approved by an extraordinary vote of the governing body or

20  conditioned to take effect only upon approval by a majority

21  vote of the electors of the county voting in a referendum, a

22  discretionary sales surtax at a rate that may not exceed 0.5

23  percent.

24         1.2.  If the ordinance is conditioned on a referendum,

25  a statement that includes a brief and general description of

26  the purposes to be funded by the surtax and that conforms to

27  the requirements of s. 101.161 shall be placed on the ballot

28  by the governing body of the county. The following questions

29  shall be placed on the ballot:

30  

31                     FOR THE. . . .CENTS TAX

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    Florida Senate - 2007                           CS for SB 1778
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 1                   AGAINST THE. . . .CENTS TAX

 2  

 3         2.3.  The ordinance adopted by the governing body

 4  providing for the imposition of the surtax shall set forth a

 5  plan for providing health care services to qualified

 6  residents, as defined in subparagraph 3. 4. Such plan and

 7  subsequent amendments to it must shall fund a broad range of

 8  health care services for both indigent persons and the

 9  medically poor, including, but not limited to, primary care

10  and preventive care as well as hospital care. The plan must

11  also address the services to be provided by a the Level I

12  trauma center. It must shall emphasize a continuity of care in

13  the most cost-effective setting, taking into consideration

14  both a high quality of care and geographic access. Where

15  consistent with these objectives, it must shall include,

16  without limitation, services rendered by physicians, clinics,

17  community hospitals, mental health centers, and alternative

18  delivery sites, as well as at least one regional referral

19  hospital where appropriate. It must shall provide that

20  agreements negotiated between the county and providers,

21  including hospitals with a Level I trauma center, will include

22  reimbursement methodologies that take into account the cost of

23  services rendered to eligible patients, recognize hospitals

24  that render a disproportionate share of indigent care, provide

25  other incentives to promote the delivery of charity care,

26  promote the advancement of technology in medical services,

27  recognize the level of responsiveness to medical needs in

28  trauma cases, and require cost containment including, but not

29  limited to, case management. It must also provide that any

30  hospitals that are owned and operated by government entities

31  on May 21, 1991, must, as a condition of receiving funds under

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    Florida Senate - 2007                           CS for SB 1778
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 1  this subsection, provide afford public access as equal to that

 2  provided under s. 286.011 as to meetings of the governing

 3  board, the subject of which is budgeting resources for the

 4  rendition of charity care as that term is defined in the

 5  Florida Hospital Uniform Reporting System (FHURS) manual

 6  referenced in s. 408.07. The plan must shall also include

 7  innovative health care programs that provide cost-effective

 8  alternatives to traditional methods of service delivery and

 9  funding.

10         3.4.  For the purpose of this paragraph, the term

11  "qualified resident" means residents of the authorizing county

12  who are:

13         a.  Qualified as indigent persons as certified by the

14  authorizing county;

15         b.  Certified by the authorizing county as meeting the

16  definition of the medically poor, defined as persons having

17  insufficient income, resources, and assets to provide the

18  needed medical care without using resources required to meet

19  basic needs for shelter, food, clothing, and personal

20  expenses; or not being eligible for any other state or federal

21  program, or having medical needs that are not covered by any

22  such program; or having insufficient third-party insurance

23  coverage. In all cases, the authorizing county is intended to

24  serve as the payor of last resort; or

25         c.  Participating in innovative, cost-effective

26  programs approved by the authorizing county.

27         4.5.  Moneys collected pursuant to this paragraph

28  remain the property of the state and shall be distributed by

29  the Department of Revenue on a regular and periodic basis to

30  the clerk of the circuit court as ex officio custodian of the

31  

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    Florida Senate - 2007                           CS for SB 1778
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 1  funds of the authorizing county. The clerk of the circuit

 2  court shall:

 3         a.  Maintain the moneys in an indigent health care

 4  trust fund;

 5         b.  Invest any funds held on deposit in the trust fund

 6  pursuant to general law;

 7         c.  Disburse the funds, including any interest earned,

 8  to any provider of health care services, as provided in

 9  subparagraphs 2, 3. and 3. 4., upon directive from the

10  authorizing county. However, if a county has a population of

11  at least 800,000 residents and has levied the surtax

12  authorized in this paragraph, notwithstanding any directive

13  from the authorizing county, on October 1 of each calendar

14  year, the clerk of the court shall issue a check in the amount

15  of $6.5 million to a hospital in its jurisdiction that has a

16  Level I trauma center or shall issue a check in the amount of

17  $3.5 million to a hospital in its jurisdiction that has a

18  Level I trauma center if that county enacts and implements a

19  hospital lien law in accordance with chapter 98-499, Laws of

20  Florida. The issuance of the checks on October 1 of each year

21  is provided in recognition of the Level I trauma center status

22  and shall be in addition to the base contract amount received

23  during fiscal year 1999-2000 and any additional amount

24  negotiated to the base contract. If the hospital receiving

25  funds for its Level I trauma center status requests such funds

26  to be used to generate federal matching funds under Medicaid,

27  the clerk of the court shall instead issue a check to the

28  Agency for Health Care Administration to accomplish that

29  purpose to the extent that it is allowed through the General

30  Appropriations Act; and

31  

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    Florida Senate - 2007                           CS for SB 1778
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 1         d.  Prepare on a biennial basis an audit of the trust

 2  fund specified in sub-subparagraph a. Commencing February 1,

 3  2004, such audit shall be delivered to the governing body and

 4  to the chair of the legislative delegation of each authorizing

 5  county.

 6         6.  Notwithstanding any other provision of this

 7  section, a county shall not levy local option sales surtaxes

 8  authorized in this paragraph and subsections (2) and (3) in

 9  excess of a combined rate of 1 percent.

10         (b)  Notwithstanding any other provision of this

11  section, the governing body in each county the government of

12  which is not consolidated with that of one or more

13  municipalities and which has a population of less than 800,000

14  residents, may levy, by ordinance subject to approval by a

15  majority of the electors of the county voting in a referendum,

16  a discretionary sales surtax at a rate that may not exceed

17  0.25 percent for the sole purpose of funding trauma services

18  provided by a trauma center licensed pursuant to chapter 395.

19         1.  A statement that includes a brief and general

20  description of the purposes to be funded by the surtax and

21  that conforms to the requirements of s. 101.161 shall be

22  placed on the ballot by the governing body of the county. The

23  following shall be placed on the ballot:

24  

25                     FOR THE. . . .CENTS TAX

26                   AGAINST THE. . . .CENTS TAX

27  

28         2.  The ordinance adopted by the governing body of the

29  county providing for the imposition of the surtax shall set

30  forth a plan for providing trauma services to trauma victims

31  

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    Florida Senate - 2007                           CS for SB 1778
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 1  presenting in the trauma service area in which such county is

 2  located.

 3         3.  Moneys collected pursuant to this paragraph remain

 4  the property of the state and shall be distributed by the

 5  Department of Revenue on a regular and periodic basis to the

 6  clerk of the circuit court as ex officio custodian of the

 7  funds of the authorizing county. The clerk of the circuit

 8  court shall:

 9         a.  Maintain the moneys in a trauma services trust

10  fund.

11         b.  Invest any funds held on deposit in the trust fund

12  pursuant to general law.

13         c.  Disburse the funds, including any interest earned

14  on such funds, to the trauma center in its trauma service

15  area, as provided in the plan set forth pursuant to

16  subparagraph 2., upon directive from the authorizing county.

17  If the trauma center receiving funds requests such funds be

18  used to generate federal matching funds under Medicaid, the

19  custodian of the funds shall instead issue a check to the

20  Agency for Health Care Administration to accomplish that

21  purpose to the extent that the agency is allowed through the

22  General Appropriations Act.

23         d.  Prepare on a biennial basis an audit of the trauma

24  services trust fund specified in sub-subparagraph a., to be

25  delivered to the authorizing county.

26         4.  A discretionary sales surtax imposed pursuant to

27  this paragraph shall expire 4 years after the effective date

28  of the surtax, unless reenacted by ordinance subject to

29  approval by a majority of the electors of the county voting in

30  a subsequent referendum.

31  

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 1         5.  Notwithstanding any other provision of this

 2  section, a county shall not levy local option sales surtaxes

 3  authorized in this paragraph and subsections (2) and (3) in

 4  excess of a combined rate of 1 percent.

 5         (5)  COUNTY PUBLIC HOSPITAL SURTAX.--Any county as

 6  defined in s. 125.011(1) may levy the surtax authorized in

 7  this subsection pursuant to an ordinance either approved by

 8  extraordinary vote of the county commission or conditioned to

 9  take effect only upon approval by a majority vote of the

10  electors of the county voting in a referendum.  In a county as

11  defined in s. 125.011(1), for the purposes of this subsection,

12  "county public general hospital" means a general hospital as

13  defined in s. 395.002 which is owned, operated, maintained, or

14  governed by the county or its agency, authority, or public

15  health trust.

16         (f)  Notwithstanding any other provision of this

17  section, a county may not levy local option sales surtaxes

18  authorized in this subsection and subsections (2) and (3) in

19  excess of a combined rate of 1 percent.

20         (7)  VOTER-APPROVED INDIGENT CARE SURTAX.--

21         (f)  Notwithstanding any other provision of this

22  section, a county may not levy local option sales surtaxes

23  authorized in this subsection and subsections (2) and (3) in

24  excess of a combined rate of 1 percent or, if a publicly

25  supported medical school is located in the county or the

26  county has a population of fewer than 50,000 residents, in

27  excess of a combined rate of 1.5 percent.

28         (8)  COUNTY GOVERNMENT SALES SURTAX CAP.--The county

29  governing authority may not levy one or more discretionary

30  sales surtaxes authorized under this section which have a

31  combined rate in excess of 2 percent.

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    Florida Senate - 2007                           CS for SB 1778
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 1         Section 2.  This act shall take effect July 1, 2007.

 2  

 3          STATEMENT OF SUBSTANTIAL CHANGES CONTAINED IN
                       COMMITTEE SUBSTITUTE FOR
 4                             SB 1778

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 6  The committee substitute removes all specific local option
    sales surtax caps and replaces them with a 2% cap to apply to
 7  all local option sales surtaxes.

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