Florida Senate - 2012 CS for SB 754 By the Committee on Higher Education; and Senator Wise 589-01855-12 2012754c1 1 A bill to be entitled 2 An act relating to educational enhancement; creating 3 the Educational Excellence Endowment Enhancement Fund 4 within the Department of Education’s direct-support 5 organization; requiring that the direct-support 6 organization administer the endowment enhancement 7 fund; providing purposes; requiring that the direct 8 support organization deposit revenues from gaming 9 taxes and fees and other grants, gifts, and bequests 10 of money into the endowment enhancement fund; 11 requiring that the direct-support organization invest 12 the funds and use only the interest accrued; creating 13 the Juvenile Justice Education and Training Endowment 14 Fund within the direct-support organization for the 15 Department of Juvenile Justice; requiring that the 16 direct-support organization administer the endowment 17 fund; providing purposes; requiring that the direct 18 support organization deposit revenues from gaming 19 taxes and fees and other grants, gifts, and bequests 20 of money into the endowment fund; requiring that the 21 direct-support organization invest the funds and use 22 only the interest accrued; amending s. 24.121, F.S.; 23 revising provisions relating to the allocation of 24 revenues and the expenditure of funds deposited into 25 the Educational Enhancement Trust Fund; requiring that 26 the Department of Education transfer a specified 27 percentage of the funds to the Department of 28 Education’s direct-support organization and the 29 direct-support organization for the Department of 30 Juvenile Justice for the purpose of funding the 31 Educational Excellence Endowment Enhancement Fund and 32 the Juvenile Justice Education and Training Endowment 33 Fund; amending s. 285.710, F.S.; revising provisions 34 relating to the Gaming Compact between the Seminole 35 Tribe of Florida and the state; requiring that a 36 specified percentage of the moneys paid by the Tribe 37 be transferred from the General Revenue Fund to the 38 Department of Education’s direct-support organization 39 and the direct-support organization for the Department 40 of Juvenile Justice for the purpose of funding the 41 Educational Excellence Endowment Enhancement Fund and 42 the Juvenile Justice Education and Training Endowment 43 Fund; amending s. 551.106, F.S.; revising provisions 44 relating to the deposit and distribution of the slot 45 machine revenue tax; requiring that the Chief 46 Financial Officer transfer a specified percentage of 47 the funds collected from the Pari-mutuel Wagering 48 Trust Fund to the Department of Education’s direct 49 support organization and the direct-support 50 organization for the Department of Juvenile Justice 51 for the purpose of funding the Educational Excellence 52 Endowment Enhancement Fund and the Juvenile Justice 53 Education and Training Endowment Fund; amending s. 54 849.086, F.S.; revising provisions relating to the 55 taxes imposed on cardrooms; requiring that the Chief 56 Financial Officer transfer a specified percentage of 57 the funds to the Department of Education’s direct 58 support organization and the direct-support 59 organization for the Department of Juvenile Justice 60 for the purpose of funding the Educational Excellence 61 Endowment Enhancement Fund and the Juvenile Justice 62 Education and Training Endowment Fund; providing an 63 effective date. 64 65 WHEREAS, the Legislature finds that if an endowment fund 66 had been created in which 2 percent of all lottery revenues 67 generated from 1987 to 2011 were placed, the present value of 68 the endowment fund would be worth over $320 million, and 69 WHEREAS, the Legislature intends to establish endowment 70 funds within the Department of Education’s direct-support 71 organization and the direct-support organization for the 72 Department of Juvenile Justice for the purpose of providing 73 additional financial support to enhance public education, and 74 WHEREAS, the Legislature intends for the state’s gaming 75 revenue and gifts and bequests from corporations, private 76 foundations, and individuals to be deposited into the endowment 77 funds and invested for the purpose of generating interest, and 78 WHEREAS, only the interest from the endowment funds may be 79 used to support education program enhancements and activities 80 related to employment and obtaining additional education 81 opportunities, such as job certifications, college degrees, and 82 reentry activities, NOW, THEREFORE, 83 84 Be It Enacted by the Legislature of the State of Florida: 85 86 Section 1. The Educational Excellence Endowment Enhancement 87 Fund is created within and shall be administered by the 88 Department of Education’s direct-support organization 89 established in s. 1001.24, Florida Statutes. The purpose of the 90 endowment enhancement fund is to support education programs and 91 activities from the interest generated by the endowment. The 92 direct-support organization shall deposit revenues received from 93 gaming taxes and fees and other grants, gifts, and bequests of 94 money into the endowment enhancement fund. The direct-support 95 organization shall invest the funds and shall use only the 96 interest accrued on the investment of the funds for the purposes 97 provided in this section. 98 Section 2. The Juvenile Justice Education and Training 99 Endowment Fund is created within and shall be administered by 100 the direct-support organization established in s. 985.672, 101 Florida Statutes. The purpose of the endowment fund is to 102 enhance education programs and activities related to employment 103 by providing programs for job certification, trade and college 104 programs, and community reentry training. The direct-support 105 organization shall deposit revenues received from gaming taxes 106 and fees and other grants, gifts, and bequests of money into the 107 endowment fund. The direct-support organization shall invest the 108 funds and shall use only the interest accrued on the investment 109 of the funds for the purposes provided in this section. 110 Section 3. Subsection (2) of section 24.121, Florida 111 Statutes, is amended to read: 112 24.121 Allocation of revenues and expenditure of funds for 113 public education.— 114 (2) Each fiscal year, variable percentages of the gross 115 revenue from the sale of online and instant lottery tickets as 116 determined by the department consistent with subsection (1), and 117 other earned revenue, excluding application processing fees, 118 shall be deposited in the Educational Enhancement Trust Fund, 119 which isherebycreated in the State Treasury to be administered 120 by the Department of Education. The Department of Education 121 shall transfer 1.5 percent of the funds deposited in the 122 Educational Enhancement Trust Fund to the Department of 123 Education’s direct-support organization established in s. 124 1001.24, and that amount shall be used to fund the Educational 125 Excellence Endowment Enhancement Fund. The Department of 126 Education shall also transfer 0.5 percent of the funds deposited 127 in the Educational Enhancement Trust Fund to the direct-support 128 organization established in s. 985.672, and that amount shall be 129 used to fund the Juvenile Justice Education and Training 130 Endowment Fund. The Department of the Lottery shall transfer 131 moneys to the Educational Enhancement Trust Fund at least once 132 each quarter. Funds in the Educational Enhancement Trust Fund 133 shall be used to the benefit of public education in accordance 134 with the provisions of this act. Notwithstanding any other 135 provision of law, lottery revenues transferred to the 136 Educational Enhancement Trust Fund shall be reserved as needed 137 and used to meet the requirements of the documents authorizing 138 the bonds issued by the state pursuant to s. 1013.68, s. 139 1013.70, or s. 1013.737 or distributed to school districts for 140 the Classrooms First Program as provided in s. 1013.68. Such 141 lottery revenues are hereby pledged to the payment of debt 142 service on bonds issued by the state pursuant to s. 1013.68, s. 143 1013.70, or s. 1013.737. Debt service payable on bonds issued by 144 the state pursuant to s. 1013.68, s. 1013.70, or s. 1013.737 145 shall be payable from, and is secured by a first lien on, the 146 first lottery revenues transferred to the Educational 147 Enhancement Trust Fund in each fiscal year. Amounts 148 distributable to school districts that request the issuance of 149 bonds pursuant to s. 1013.68(3) are hereby pledged to such bonds 150 pursuant to s. 11(d), Art. VII of the State Constitution. 151 Section 4. Subsection (9) of section 285.710, Florida 152 Statutes, is amended to read: 153 285.710 Compact authorization.— 154 (9) The moneys paid by the Tribe to the state for the 155 benefit of exclusivity under the compact ratified by this 156 section shall be deposited into the General Revenue Fund. The 157 moneys shall be distributed as follows: 158 (a) One and one-half percent shall be transferred to the 159 Department of Education’s direct-support organization 160 established in s. 1001.24 and used to fund the Educational 161 Excellence Endowment Enhancement Fund. 162 (b) One-half percent shall be transferred to the direct 163 support organization established in s. 985.672 and used to fund 164 the Juvenile Justice Education and Training Endowment Fund. 165 (c) Three percentof the amount paid by the Tribe to the166stateshall be designated as the local government share and 167 shall be distributed as provided in subsections (10) and (11). 168 Section 5. Paragraph (b) of subsection (2) of section 169 551.106, Florida Statutes, is amended to read: 170 551.106 License fee; tax rate; penalties.— 171 (2) TAX ON SLOT MACHINE REVENUES.— 172 (b) The slot machine revenue tax imposed by this section 173 shall be paid to the division for deposit into the Pari-mutuel 174 Wagering Trust Fund for immediate transfer by the Chief 175 Financial Officer for deposit as follows: 176 1. Ninety-eight percent of the funds shall be deposited 177 into the Educational Enhancement Trust Fund of the Department of 178 Education. Any interest earnings on the tax revenues shall also 179 be transferred to the Educational Enhancement Trust Fund. 180 2. One and one-half percent of the funds shall be 181 transferred to the Department of Education’s direct-support 182 organization established in s. 1001.24 and used to fund the 183 Educational Excellence Endowment Enhancement Fund. 184 3. One-half percent of the funds shall be transferred to 185 the direct-support organization established in s. 985.672 and 186 used to fund the Juvenile Justice Education and Training 187 Endowment Fund. 188 Section 6. Paragraph (c) of subsection (13) of section 189 849.086, Florida Statutes, is amended to read: 190 849.086 Cardrooms authorized.— 191 (13) TAXES AND OTHER PAYMENTS.— 192 (c) Payment of the admission tax and gross receipts tax 193 imposed by this section shall be paid to the division. The 194 division shall deposit these sums with the Chief Financial 195 Officer, 49 percent of which shall beone-half beingcredited to 196 the Pari-mutuel Wagering Trust Fund, 49 percent of which shall 197 beand one-half beingcredited to the General Revenue Fund, 1.5 198 percent of which shall be transferred to the Department of 199 Education’s direct-support organization established in s. 200 1001.24 and used to fund the Educational Excellence Endowment 201 Enhancement Fund, and 0.5 percent of which shall be transferred 202 to the direct-support organization established in s. 985.672 and 203 used to fund the Juvenile Justice Education and Training 204 Endowment Fund. The cardroom licensee shall remit to the 205 division payment for the admission tax, the gross receipts tax, 206 and the licensee fees. TheSuchpayments shall be remitted to 207 the division on the fifth day of each calendar month for taxes 208 and fees imposed for the preceding month’s cardroom activities. 209 Licensees shall file a report under oath by the fifth day of 210 each calendar month for all taxes remitted during the preceding 211 calendar month. TheSuchreport shall, under oath, indicate the 212 total of all admissions, the cardroom activities for the 213 preceding calendar month, andsuchother information as may be 214 prescribed by the division. 215 Section 7. This act shall take effect July 1, 2012.