Bill Text: FL H0967 | 2010 | Regular Session | Introduced

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Bill Title: Local Government Revenue Interception

Spectrum: Partisan Bill (Republican 1-0)

Status: (Failed) 2010-04-30 - Died in Finance & Tax Council [H0967 Detail]

Download: Florida-2010-H0967-Introduced.html

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HB 967

1	A bill to be entitled
2	An act relating to local government revenue interception;
3	creating s. 218.387, F.S.; providing a short title;
4	providing definitions; authorizing local governments to
5	authorize by resolution or ordinance the Department of
6	Revenue to intercept certain available revenues of the
7	local government for certain purposes; specifying
8	ordinance or resolution required provisions; requiring the
9	local government to provide a copy of the ordinance or
10	resolution to the department and the Division of Bond
11	Finance of the State Board of Administration; specifying
12	administrative requirements for the department; specifying
13	criteria for a local government's available revenues
14	eligible for interception; specifying purposes and uses of
15	intercepted available revenues; specifying notice
16	requirements for the trustee or paying agent for local
17	government bonds subject to an intercept program;
18	providing notice requirements for termination of local
19	government bonds subject to an intercept program;
20	specifying department requirements for intercepting a
21	local government's available revenues for certain
22	purposes; specifying construction and criteria for a local
23	government's bonds operating under an intercept program,
24	revenues payable under such bonds, and the intercept
25	program; specifying a state covenant to not take certain
26	actions to abrogate certain rights or protections;
27	authorizing the department to adopt forms and rules;
28	providing an effective date.
29
30	Be It Enacted by the Legislature of the State of Florida:
31
32	Section 1. Section 218.387, Florida Statutes, is created
33	to read:
34	218.387 Florida Local Government Revenue Intercept Act.-
35	(1) This section may be cited as the "Florida Local
36	Government Revenue Intercept Act."
37	(2) As used in this section:
38	(a) "Available revenues" means a local government's funds
39	derived from the communications services tax, the local
40	government half-cent sales tax, the local option fuel tax, or
41	revenue sharing.
42	(b) "Bonds" means any bond, loan, promissory note, lease-
43	purchase agreement, certificate of participation, installment
44	sale, lease, or other similar financing mechanism or financial
45	arrangement, whether or not a debt for legal purposes, of a
46	local government.
47	(c) "Communications services tax" means the communications
48	services tax collected pursuant to chapter 202 for distribution
49	to local governments.
50	(d) "Department" means the Department of Revenue.
51	(e) "Intercept program" means an authorized intercept
52	process for a local government's available revenues as provided
53	in subsection (3).
54	(f) "Local government" means any county or municipality,
55	or any county or municipality that individually or collectively
56	participates with a separate legal entity created under s.
57	163.01 for the purpose of financing or refinancing bonds and the
58	separate legal entity.
59	(g) "Local government half-cent sales tax" means the local
60	government half-cent sales tax collected pursuant to part VI of
61	this chapter for distribution to local governments.
62	(h) "Local option fuel tax" means any optional fuel tax
63	collected pursuant to chapter 206 for distribution to local
64	governments.
65	(i) "Revenue sharing" means the funds available pursuant
66	to part II of this chapter for distribution to local
67	governments.
68	(3)(a) A local government may, by resolution or ordinance,
69	authorize the department to intercept the local government's
70	available revenues as specified in this section. The resolution
71	or ordinance must:
72	1. Specifically authorize the department to intercept
73	available revenues collected or held by the state for the local
74	government and use such revenues to replenish the debt service
75	reserve or other similar payment account for bonds of the local
76	government when the local government has failed to make a
77	required debt service payment or other similar payment and when
78	the account for the bonds has been drawn upon to make a debt
79	service or other similar payment.
80	2. Specifically authorize the department to intercept
81	available revenues that have not been pledged to any other
82	current or future bonds of the local government.
83	3. Specifically authorize the department to intercept any
84	available revenues in the following order as revenues are
85	needed:
86	a. Funds derived from revenue sharing that are restricted
87	under s. 218.25(4) and not permitted to be assigned, pledged, or
88	set aside for debt service or other similar payment.
89	b. Funds derived from the local government half-cent sales
90	tax.
91	c. Funds derived from the communications services tax.
92	d. Funds derived from a local option fuel tax, provided
93	the bonds relate to an authorized use of such funds.
94	e. Any remaining funds derived from revenue sharing.
95	4. Specify the trustee or paying agent for the local
96	government's bonds, specifically authorize the department to
97	receive and act on requests by the trustee or paying agent to
98	intercept available revenues of the local government, and
99	acknowledge that the local government is responsible for
100	informing the department of any changes to the trustee or paying
101	agent for the bonds within 30 days after such change.
102	5. Require the local government's bonds to have a cash-
103	funded debt service or other similar payment reserve equal to
104	the maximum annual debt service or other similar payment, and
105	require that payment dates for principal and interest for the
106	bonds be no more frequent than quarterly.
107	6. Inform the department of the debt service or other
108	similar payment schedule for the local government's bonds.
109	7. Provide that the local government has reasonably
110	determined in good faith that anticipated available revenues in
111	each fiscal year during the term or length of the local
112	government's bonds will be at least 1.75 times the maximum
113	annual amount of debt service or other similar payment on the
114	bonds.
115	8. Acknowledge that the local government shall not amend
116	or repeal the resolution or ordinance establishing the intercept
117	program without the concurrence of a majority of the purchasers,
118	holders, and owners of the local government's bonds, or any
119	entity authorized to act on the behalf of the purchasers,
120	holders, and owners of the bonds.
121	9. Acknowledge that the resolution or ordinance
122	authorizing the intercept program shall be included and made a
123	part of the bond resolution or other agreement for the bonds.
124	(b) The local government shall provide a copy of the
125	ordinance or resolution to the department and to the Division of
126	Bond Finance of the State Board of Administration. Within 30
127	days after receipt of the ordinance or resolution, the
128	department shall acknowledge and accept the ordinance or
129	resolution after the department has determined that the
130	ordinance or resolution contains all the required authorizations
131	and information as specified in this subsection, or the
132	department shall inform the local government in writing of any
133	deficiencies with the ordinance or resolution.
134	(4) A local government's funds as restricted under revenue
135	sharing under s. 218.25(4) and not permitted to be assigned,
136	pledged, or set aside for debt service or other similar payment
137	shall be available revenue subject to being intercepted as
138	provided in this section. Available revenues under an intercept
139	program to the extent of 1.75 times the maximum annual amount of
140	debt service or other similar payment on the local government's
141	bonds are provided solely to prevent a default on the bonds and
142	shall not be considered in any calculation for additional bonds
143	of a local government. The department shall implement only the
144	specific provisions of this section and shall not be responsible
145	for providing demographic or revenue history of the local
146	government. The local government and trustee or paying agent
147	shall jointly inform the department of the termination of the
148	local government's bonds subject to the intercept program.
149	(5) The trustee or paying agent for local government bonds
150	subject to an intercept program shall provide the department and
151	local government with at least 60 days' written notice of the
152	need to intercept the local government's available revenues, the
153	exact amount of revenues to be intercepted, and the date the
154	intercepted revenues are to be deposited with the trustee or
155	paying agent along with wiring or other instructions to transmit
156	the revenues. Upon receiving the notice, the department shall
157	intercept the local government's available revenues to the
158	extent such revenues are otherwise required to be distributed to
159	the local government by the department and shall transmit such
160	revenues as specified by the trustee or paying agent in a timely
161	manner. The department shall be paid for all costs the
162	department incurs in administering this section.
163	(6) A local government's bonds subject to an intercept
164	program shall not constitute an obligation of the state, a debt
165	of the state, or a pledge of the full faith and credit or taxing
166	power of the state. Revenues payable under an intercept program
167	are payable only from available revenues as provided in this
168	section. An intercept program does not constitute the assumption
169	by the state of any debt of a local government. The state hereby
170	covenants with the purchasers, holders, and owners of bonds
171	covered under an intercept program authorized by this section
172	that the state will not repeal, revoke, rescind, modify, or
173	amend provisions of this section in a manner that would abrogate
174	the rights or protections under this section of such purchasers,
175	holders, and owners of bonds.
176	(7) The department may adopt forms or rules to implement
177	the provisions of this section.
178	Section 2. This act shall take effect upon becoming a law.

CODING: Words stricken are deletions; words underlined are additions.