| 1 | A bill to be entitled |
| 2 | An act relating to the Florida Hurricane Catastrophe Fund; |
| 3 | amending s. 212.20, F.S.; providing for distribution of |
| 4 | certain revenues from the tax on sales, use, and other |
| 5 | transactions to the Florida Hurricane Catastrophe Fund; |
| 6 | amending s. 215.555, F.S.; redefining the term |
| 7 | "retention"; decreasing the threshold amount of loss above |
| 8 | which an insurer is entitled to reimbursement from the |
| 9 | fund; providing an effective date. |
| 10 |
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| 11 | Be It Enacted by the Legislature of the State of Florida: |
| 12 |
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| 13 | Section 1. Paragraph (d) of subsection (6) of section |
| 14 | 212.20, Florida Statutes, is amended to read: |
| 15 | 212.20 Funds collected, disposition; additional powers of |
| 16 | department; operational expense; refund of taxes adjudicated |
| 17 | unconstitutionally collected.-- |
| 18 | (6) Distribution of all proceeds under this chapter and s. |
| 19 | 202.18(1)(b) and (2)(b) shall be as follows: |
| 20 | (d) The proceeds of all other taxes and fees imposed |
| 21 | pursuant to this chapter or remitted pursuant to s. 202.18(1)(b) |
| 22 | and (2)(b) shall be distributed as follows: |
| 23 | 1. In any fiscal year, the greater of $500 million, minus |
| 24 | an amount equal to 4.6 percent of the proceeds of the taxes |
| 25 | collected pursuant to chapter 201, or 5 percent of all other |
| 26 | taxes and fees imposed pursuant to this chapter or remitted |
| 27 | pursuant to s. 202.18(1)(b) and (2)(b) shall be deposited in |
| 28 | monthly installments into the General Revenue Fund. |
| 29 | 2. Two-tenths of one percent shall be transferred to the |
| 30 | Ecosystem Management and Restoration Trust Fund to be used for |
| 31 | water quality improvement and water restoration projects. |
| 32 | 3. After the distribution under subparagraphs 1. and 2., |
| 33 | 8.814 percent of the amount remitted by a sales tax dealer |
| 34 | located within a participating county pursuant to s. 218.61 |
| 35 | shall be transferred into the Local Government Half-cent Sales |
| 36 | Tax Clearing Trust Fund. Beginning July 1, 2003, the amount to |
| 37 | be transferred pursuant to this subparagraph to the Local |
| 38 | Government Half-cent Sales Tax Clearing Trust Fund shall be |
| 39 | reduced by 0.1 percent, and the department shall distribute this |
| 40 | amount to the Public Employees Relations Commission Trust Fund |
| 41 | less $5,000 each month, which shall be added to the amount |
| 42 | calculated in subparagraph 4. and distributed accordingly. |
| 43 | 4. After the distribution under subparagraphs 1., 2., and |
| 44 | 3., 0.095 percent shall be transferred to the Local Government |
| 45 | Half-cent Sales Tax Clearing Trust Fund and distributed pursuant |
| 46 | to s. 218.65. |
| 47 | 5. After the distributions under subparagraphs 1., 2., 3., |
| 48 | and 4., 2.0440 percent of the available proceeds pursuant to |
| 49 | this paragraph shall be transferred monthly to the Revenue |
| 50 | Sharing Trust Fund for Counties pursuant to s. 218.215. |
| 51 | 6. After the distributions under subparagraphs 1., 2., 3., |
| 52 | and 4., 1.3409 percent of the available proceeds pursuant to |
| 53 | this paragraph shall be transferred monthly to the Revenue |
| 54 | Sharing Trust Fund for Municipalities pursuant to s. 218.215. If |
| 55 | the total revenue to be distributed pursuant to this |
| 56 | subparagraph is at least as great as the amount due from the |
| 57 | Revenue Sharing Trust Fund for Municipalities and the former |
| 58 | Municipal Financial Assistance Trust Fund in state fiscal year |
| 59 | 1999-2000, no municipality shall receive less than the amount |
| 60 | due from the Revenue Sharing Trust Fund for Municipalities and |
| 61 | the former Municipal Financial Assistance Trust Fund in state |
| 62 | fiscal year 1999-2000. If the total proceeds to be distributed |
| 63 | are less than the amount received in combination from the |
| 64 | Revenue Sharing Trust Fund for Municipalities and the former |
| 65 | Municipal Financial Assistance Trust Fund in state fiscal year |
| 66 | 1999-2000, each municipality shall receive an amount |
| 67 | proportionate to the amount it was due in state fiscal year |
| 68 | 1999-2000. |
| 69 | 7. Of the remaining proceeds: |
| 70 | a. In each fiscal year, the sum of $29,915,500 shall be |
| 71 | divided into as many equal parts as there are counties in the |
| 72 | state, and one part shall be distributed to each county. The |
| 73 | distribution among the several counties shall begin each fiscal |
| 74 | year on or before January 5th and shall continue monthly for a |
| 75 | total of 4 months. If a local or special law required that any |
| 76 | moneys accruing to a county in fiscal year 1999-2000 under the |
| 77 | then-existing provisions of s. 550.135 be paid directly to the |
| 78 | district school board, special district, or a municipal |
| 79 | government, such payment shall continue until such time that the |
| 80 | local or special law is amended or repealed. The state covenants |
| 81 | with holders of bonds or other instruments of indebtedness |
| 82 | issued by local governments, special districts, or district |
| 83 | school boards prior to July 1, 2000, that it is not the intent |
| 84 | of this subparagraph to adversely affect the rights of those |
| 85 | holders or relieve local governments, special districts, or |
| 86 | district school boards of the duty to meet their obligations as |
| 87 | a result of previous pledges or assignments or trusts entered |
| 88 | into which obligated funds received from the distribution to |
| 89 | county governments under then-existing s. 550.135. This |
| 90 | distribution specifically is in lieu of funds distributed under |
| 91 | s. 550.135 prior to July 1, 2000. |
| 92 | b. The department shall distribute $166,667 monthly |
| 93 | pursuant to s. 288.1162 to each applicant that has been |
| 94 | certified as a "facility for a new professional sports |
| 95 | franchise" or a "facility for a retained professional sports |
| 96 | franchise" pursuant to s. 288.1162. Up to $41,667 shall be |
| 97 | distributed monthly by the department to each applicant that has |
| 98 | been certified as a "facility for a retained spring training |
| 99 | franchise" pursuant to s. 288.1162; however, not more than |
| 100 | $416,670 may be distributed monthly in the aggregate to all |
| 101 | certified facilities for a retained spring training franchise. |
| 102 | Distributions shall begin 60 days following such certification |
| 103 | and shall continue for not more than 30 years. Nothing contained |
| 104 | in this paragraph shall be construed to allow an applicant |
| 105 | certified pursuant to s. 288.1162 to receive more in |
| 106 | distributions than actually expended by the applicant for the |
| 107 | public purposes provided for in s. 288.1162(6). |
| 108 | c. Beginning 30 days after notice by the Office of |
| 109 | Tourism, Trade, and Economic Development to the Department of |
| 110 | Revenue that an applicant has been certified as the professional |
| 111 | golf hall of fame pursuant to s. 288.1168 and is open to the |
| 112 | public, $166,667 shall be distributed monthly, for up to 300 |
| 113 | months, to the applicant. |
| 114 | d. Beginning 30 days after notice by the Office of |
| 115 | Tourism, Trade, and Economic Development to the Department of |
| 116 | Revenue that the applicant has been certified as the |
| 117 | International Game Fish Association World Center facility |
| 118 | pursuant to s. 288.1169, and the facility is open to the public, |
| 119 | $83,333 shall be distributed monthly, for up to 168 months, to |
| 120 | the applicant. This distribution is subject to reduction |
| 121 | pursuant to s. 288.1169. A lump sum payment of $999,996 shall |
| 122 | be made, after certification and before July 1, 2000. |
| 123 | 8. Of the remaining proceeds, 5 percent, plus an amount |
| 124 | equal to 5 percent of the amount deposited into the General |
| 125 | Revenue Fund under subparagraph 1., shall be deposited into the |
| 126 | Florida Hurricane Catastrophe Fund to be used for the purposes |
| 127 | established in s. 215.555. |
| 128 | 9.8. All other proceeds shall remain with the General |
| 129 | Revenue Fund. |
| 130 | Section 2. Paragraph (e) of subsection (2) of section |
| 131 | 215.555, Florida Statutes, is amended to read: |
| 132 | 215.555 Florida Hurricane Catastrophe Fund.-- |
| 133 | (2) DEFINITIONS.--As used in this section: |
| 134 | (e) "Retention" means the amount of losses below which an |
| 135 | insurer is not entitled to reimbursement from the fund. An |
| 136 | insurer's retention shall be calculated as follows: |
| 137 | 1. The board shall calculate and report to each insurer |
| 138 | the retention multiples for that year. For the contract year |
| 139 | beginning June 1, 2007 2005, the retention multiple shall be |
| 140 | equal to $3 $4.5 billion divided by the total estimated |
| 141 | reimbursement premium for the contract year; for subsequent |
| 142 | years, the retention multiple shall be equal to $3 $4.5 billion, |
| 143 | adjusted based upon the reported exposure from the prior |
| 144 | contract year to reflect the percentage growth in exposure to |
| 145 | the fund for covered policies since 2006 2004, divided by the |
| 146 | total estimated reimbursement premium for the contract year. |
| 147 | Total reimbursement premium for purposes of the calculation |
| 148 | under this subparagraph shall be estimated using the assumption |
| 149 | that all insurers have selected the 90-percent coverage level. |
| 150 | 2. The retention multiple as determined under subparagraph |
| 151 | 1. shall be adjusted to reflect the coverage level elected by |
| 152 | the insurer. For insurers electing the 90-percent coverage |
| 153 | level, the adjusted retention multiple is 100 percent of the |
| 154 | amount determined under subparagraph 1. For insurers electing |
| 155 | the 75-percent coverage level, the retention multiple is 120 |
| 156 | percent of the amount determined under subparagraph 1. For |
| 157 | insurers electing the 45-percent coverage level, the adjusted |
| 158 | retention multiple is 200 percent of the amount determined under |
| 159 | subparagraph 1. |
| 160 | 3. An insurer shall determine its provisional retention by |
| 161 | multiplying its provisional reimbursement premium by the |
| 162 | applicable adjusted retention multiple and shall determine its |
| 163 | actual retention by multiplying its actual reimbursement premium |
| 164 | by the applicable adjusted retention multiple. |
| 165 | 4. For insurers who experience multiple covered events |
| 166 | causing loss during the contract year, beginning June 1, 2007 |
| 167 | 2005, each insurer's full retention shall be applied to each of |
| 168 | the covered events causing the two largest losses for that |
| 169 | insurer. For each other covered event resulting in losses, the |
| 170 | insurer's retention shall be reduced to one-third of the full |
| 171 | retention. The reimbursement contract shall provide for the |
| 172 | reimbursement of losses for each covered event based on the full |
| 173 | retention with adjustments made to reflect the reduced |
| 174 | retentions after January 1 of the contract year provided the |
| 175 | insurer reports its losses as specified in the reimbursement |
| 176 | contract. |
| 177 | Section 3. This act shall take effect June 1, 2007. |