Senate Bill sb2134c1

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    Florida Senate - 2007                           CS for SB 2134

    By the Committee on Community Affairs; and Senator Constantine





    578-2167-07

  1                      A bill to be entitled

  2         An act relating to tax increment financing;

  3         authorizing two or more counties, or a

  4         combination of at least one county and

  5         municipality, to establish a tax increment area

  6         for conservation lands by interlocal agreement;

  7         providing requirements for such an interlocal

  8         agreement; requiring that a tax increment be

  9         determined annually; limiting the amount of the

10         tax increment; requiring the establishment of a

11         separate reserve account for each tax increment

12         area; providing for a refund; requiring an

13         annual audit of the separate reserve account;

14         providing for the administration of the

15         separate reserve account; providing that the

16         governmental body that administers the separate

17         reserve account may spend revenues from the tax

18         increment to purchase real property only if all

19         parties to the interlocal agreement adopt a

20         resolution that approves the purchase price;

21         providing that a water management district may

22         be a party to the interlocal agreement;

23         requiring certain approvals from the Department

24         of Environmental Protection and the Department

25         of Community Affairs; providing a comparative

26         standard on which the minimum annual funding of

27         the separate reserve account must be based;

28         requiring a taxing authority that does not pay

29         tax increment revenues to the separate reserve

30         account before a specified date to pay a

31         specified amount of interest on the amount of

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    Florida Senate - 2007                           CS for SB 2134
    578-2167-07




 1         unpaid increment revenues; providing exemptions

 2         for certain public bodies, taxing authorities,

 3         and special districts; providing that revenue

 4         bonds may be paid only from revenues deposited

 5         into the separate reserve account; providing

 6         that such revenue bonds are not a debt,

 7         liability, or obligation of the state or any

 8         public body; providing legislative findings;

 9         providing an effective date.

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

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13         Section 1.  Tax increment financing for conservation

14  lands.--

15         (1)  Two or more counties, or a combination of at least

16  one county and one or more municipalities, may establish,

17  through an interlocal agreement, a tax increment area for

18  conservation lands. The interlocal agreement, at a minimum,

19  must:

20         (a)  Identify the geographic boundaries of the tax

21  increment area;

22         (b)  Identify the real property to be acquired as

23  conservation land within the tax increment area;

24         (c)  Establish the percentage of tax increment

25  financing for each jurisdiction in the tax increment area;

26         (d)  Identify the governing body of the jurisdiction

27  that will administer a separate reserve account in which the

28  tax increment will be deposited;

29         (e)  Require that any tax increment revenues not used

30  to purchase conservation lands by a date certain be refunded

31  to the parties to the interlocal agreement. Any refund shall

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    Florida Senate - 2007                           CS for SB 2134
    578-2167-07




 1  be proportionate to the parties' payment of tax increment

 2  revenues into the separate reserve account;

 3         (f)  Provide for an annual audit of the separate

 4  reserve account;

 5         (g)  Designate an entity to hold title to any

 6  conservation lands purchased using the tax increment revenues;

 7         (h)  Provide for a continuing management plan for the

 8  conservation lands; and

 9         (i)  Identify the entity that will manage these

10  conservation lands.

11         (2)  The water management district in which

12  conservation lands proposed for purchase under this section

13  are located may also enter into the interlocal agreement if

14  the district provides any funds for the purchase of the

15  conservation lands.

16         (3)  The governing body of the jurisdiction that will

17  administer the separate reserve account shall provide

18  documentation to the Department of Community Affairs

19  identifying the boundary of the tax increment area. The

20  department shall determine whether the boundary is appropriate

21  in that property owners within the boundary will receive a

22  benefit from the proposed purchase of identified conservation

23  lands. The department must issue a letter of approval stating

24  that the establishment of the tax increment area and the

25  proposed purchases would benefit property owners within the

26  boundary and serve a public purpose before any tax increment

27  funds are deposited into the separate reserve account. If the

28  department fails to provide the required letter within 90 days

29  after receiving sufficient documentation of the boundary, the

30  establishment of the area and the proposed purchases are

31  deemed to provide such benefit and serve a public purpose.

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    Florida Senate - 2007                           CS for SB 2134
    578-2167-07




 1         (4)  Prior to the purchase of conservation lands under

 2  this section, the Department of Environmental Protection must

 3  determine whether the proposed purchase is sufficient to

 4  provide additional recreational and ecotourism opportunities

 5  for residents in the tax increment area. If the department

 6  fails to provide a letter of approval within 90 days after

 7  receipt of the request for such a letter, the purchase is

 8  deemed sufficient to provide recreation and ecotourism

 9  opportunities.

10         (5)  The tax increment authorized under this section

11  shall be determined annually and may not exceed 50 percent of

12  the difference in ad valorem taxes as provided in s.

13  163.387(1)(a), Florida Statutes.

14         (6)  A separate reserve account must be established for

15  each tax increment area for conservation lands which is

16  created under this section. The separate reserve account must

17  be administered pursuant to the terms of the interlocal

18  agreement. Tax increment funds allocated to this separate

19  reserve account shall be used to acquire the real property

20  identified for purchase in the interlocal agreement. Pursuant

21  to the interlocal agreement, the governing body of the local

22  government that will administer the separate reserve account

23  may spend increment revenues to purchase the real property

24  only if all parties to the interlocal agreement adopt a

25  resolution approving the purchase price.

26         (7)  The annual funding of the separate reserve account

27  may not be less than the increment income of each taxing

28  authority which is held as provided in the interlocal

29  agreement for the purchase of conservation lands.

30         (8)  Unless otherwise provided in the interlocal

31  agreement, a taxing authority that does not pay the tax

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    Florida Senate - 2007                           CS for SB 2134
    578-2167-07




 1  increment revenues to the separate reserve account by January

 2  1 shall pay interest on the amount of unpaid increment

 3  revenues equal to 1 percent for each month that the increment

 4  revenue remains outstanding.

 5         (9)  The public bodies and taxing authorities listed in

 6  s. 163.387(2)(c), Florida Statutes, and special districts that

 7  levy ad valorem taxes within a tax increment area are exempt

 8  from this section.

 9         (10)  Revenue bonds under this section are payable

10  solely out of revenues pledged to and received by the local

11  government administering the separate reserve account and

12  deposited into the separate reserve account. The revenue bonds

13  issued under this section do not constitute a debt, liability,

14  or obligation of a public body, the state, or any of the

15  state's political subdivisions.

16         Section 2.  The Legislature finds that an inadequate

17  supply of conservation lands limits recreational opportunities

18  and negatively impacts the economy, health, and welfare of the

19  surrounding community. The Legislature also finds that

20  acquiring conservation lands for recreational opportunities

21  and ecotourism serves a valid public purpose.

22         Section 3.  This act shall take effect July 1, 2007.

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    Florida Senate - 2007                           CS for SB 2134
    578-2167-07




 1          STATEMENT OF SUBSTANTIAL CHANGES CONTAINED IN
                       COMMITTEE SUBSTITUTE FOR
 2                         Senate Bill 2134

 3                                 

 4  The committee substitute (CS) requires local governments
    creating a tax increment finance area for the purchase of
 5  conservation lands to deposit the revenues in a separate
    reserve account rather than a trust fund. Any revenues in the
 6  separate reserve account that are not used to purchase
    identified conservation lands by a date certain must be
 7  returned to the parties to the interlocal agreement in an
    amount proportionate to their payments. The CS allows the
 8  interlocal agreement to specify the interest penalty for a
    jurisdiction that does not pay the tax increment on time.
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    The CS allows a water management district to be a party to the
10  interlocal agreement if the district contributes funds toward
    the purchase of identified conservation lands. It requires the
11  Department of Community Affairs to review the boundary of the
    tax increment area to determine if the proposed purchase of
12  conservation lands will provide a benefit to property owners
    within the boundary and serve a public purpose. Also, the CS
13  requires the Department of Environmental Protection to
    determine whether the proposed purchase will provide
14  additional recreational and ecotourism opportunities for
    residents in the tax increment area.
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