Bill Text: FL S0958 | 2011 | Regular Session | Comm Sub

NOTE: There are more recent revisions of this legislation. Read Latest Draft

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Bill Title: State Revenue Limitation

Spectrum: Moderate Partisan Bill (Republican 8-2)

Status: (Engrossed - Dead) 2011-05-04 - Ordered enrolled -SJ 851 [S0958 Detail]

Download: Florida-2011-S0958-Comm_Sub.html

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       Florida Senate - 2011                             CS for SJR 958
       
       
       
       By the Committees on Budget Subcommittee on Finance and Tax; and
       Budget Subcommittee on Finance and Tax; and Senators Bogdanoff,
       Alexander, and Gaetz
       
       
       593-01927-11                                           2011958c1
    1                       Senate Joint Resolution                     
    2         A joint resolution proposing an amendment to Section 1
    3         of Article VII and the creation of Section 19 of
    4         Article VII and Section 32 of Article XII of the State
    5         Constitution to replace the existing state revenue
    6         limitation with a new state revenue limitation based
    7         on inflation and population changes.
    8  
    9  Be It Resolved by the Legislature of the State of Florida:
   10  
   11         That the following amendment to Section 1 of Article VII
   12  and the creation of Section 19 of Article VII and Section 32 of
   13  Article XII of the State Constitution are agreed to and shall be
   14  submitted to the electors of this state for approval or
   15  rejection at the next general election or at an earlier special
   16  election specifically authorized by law for that purpose:
   17                             ARTICLE VII                           
   18                        FINANCE AND TAXATION                       
   19         SECTION 1. Taxation; appropriations; state expenses; state
   20  revenue limitation.—
   21         (a) No tax shall be levied except in pursuance of law. No
   22  state ad valorem taxes shall be levied upon real estate or
   23  tangible personal property. All other forms of taxation shall be
   24  preempted to the state except as provided by general law.
   25         (b) Motor vehicles, boats, airplanes, trailers, trailer
   26  coaches and mobile homes, as defined by law, shall be subject to
   27  a license tax for their operation in the amounts and for the
   28  purposes prescribed by law, but shall not be subject to ad
   29  valorem taxes.
   30         (c) No money shall be drawn from the treasury except in
   31  pursuance of appropriation made by law.
   32         (d) Provision shall be made by law for raising sufficient
   33  revenue to defray the expenses of the state for each fiscal
   34  period.
   35         (e) Except as provided herein, state revenues collected for
   36  any fiscal year shall be limited to state revenues allowed under
   37  this subsection for the prior fiscal year plus an adjustment for
   38  growth. As used in this subsection, “growth” means an amount
   39  equal to the average annual rate of growth in Florida personal
   40  income over the most recent twenty quarters times the state
   41  revenues allowed under this subsection for the prior fiscal
   42  year. For the 1995-1996 fiscal year, the state revenues allowed
   43  under this subsection for the prior fiscal year shall equal the
   44  state revenues collected for the 1994-1995 fiscal year. Florida
   45  personal income shall be determined by the legislature, from
   46  information available from the United States Department of
   47  Commerce or its successor on the first day of February prior to
   48  the beginning of the fiscal year. State revenues collected for
   49  any fiscal year in excess of this limitation shall be
   50  transferred to the budget stabilization fund until the fund
   51  reaches the maximum balance specified in Section 19(g) of
   52  Article III, and thereafter shall be refunded to taxpayers as
   53  provided by general law. State revenues allowed under this
   54  subsection for any fiscal year may be increased by a two-thirds
   55  vote of the membership of each house of the legislature in a
   56  separate bill that contains no other subject and that sets forth
   57  the dollar amount by which the state revenues allowed will be
   58  increased. The vote may not be taken less than seventy-two hours
   59  after the third reading of the bill. For purposes of this
   60  subsection, “state revenues” means taxes, fees, licenses, and
   61  charges for services imposed by the legislature on individuals,
   62  businesses, or agencies outside state government. However,
   63  “state revenues” does not include: revenues that are necessary
   64  to meet the requirements set forth in documents authorizing the
   65  issuance of bonds by the state; revenues that are used to
   66  provide matching funds for the federal Medicaid program with the
   67  exception of the revenues used to support the Public Medical
   68  Assistance Trust Fund or its successor program and with the
   69  exception of state matching funds used to fund elective
   70  expansions made after July 1, 1994; proceeds from the state
   71  lottery returned as prizes; receipts of the Florida Hurricane
   72  Catastrophe Fund; balances carried forward from prior fiscal
   73  years; taxes, licenses, fees, and charges for services imposed
   74  by local, regional, or school district governing bodies; or
   75  revenue from taxes, licenses, fees, and charges for services
   76  required to be imposed by any amendment or revision to this
   77  constitution after July 1, 1994. An adjustment to the revenue
   78  limitation shall be made by general law to reflect the fiscal
   79  impact of transfers of responsibility for the funding of
   80  governmental functions between the state and other levels of
   81  government. The legislature shall, by general law, prescribe
   82  procedures necessary to administer this subsection.
   83         SECTION 19. State revenue limitation.—
   84         (a) STATE REVENUE LIMITATION.—Except as provided in this
   85  section, state revenues collected in any fiscal year are limited
   86  as follows:
   87         (1) For the 2014-2015 fiscal year, state revenues are
   88  limited to an amount equal to the state revenues collected
   89  during the 2013-2014 fiscal year multiplied by the sum of the
   90  adjustment for growth plus four one-hundredths.
   91         (2) For the 2015-2016 fiscal year, state revenues are
   92  limited to an amount equal to the state revenue limitation for
   93  fiscal year 2014-2015 multiplied by the sum of the adjustment
   94  for growth plus three one-hundredths.
   95         (3) For the 2016-2017 fiscal year, state revenues are
   96  limited to an amount equal to the state revenue limitation for
   97  fiscal year 2015-2016 multiplied by the sum of the adjustment
   98  for growth plus two one-hundredths.
   99         (4) For the 2017-2018 fiscal year, state revenues are
  100  limited to an amount equal to the state revenue limitation for
  101  fiscal year 2016-2017 multiplied by the sum of the adjustment
  102  for growth plus one one-hundredth.
  103         (5) For the 2018-2019 fiscal year and thereafter, state
  104  revenues are limited to an amount equal to the state revenue
  105  limitation for the previous fiscal year multiplied by the
  106  adjustment for growth.
  107         (6) The adjustment for growth for a fiscal year shall be
  108  determined by March 1 preceding the fiscal year using the latest
  109  information available. Once the adjustment for growth is
  110  determined for a fiscal year, it may not be changed based on
  111  revisions to the information used to make the determination.
  112         (b) REVENUES IN EXCESS OF THE LIMITATION.—State revenues
  113  collected in any fiscal year in excess of the revenue limitation
  114  shall be transferred to the budget stabilization fund until the
  115  fund reaches the maximum balance specified in Section 19(g) of
  116  Article III, and thereafter shall be used for the support and
  117  maintenance of public schools by reducing the minimum financial
  118  effort required from school districts for participation in a
  119  state-funded education finance program, or, if the minimum
  120  financial effort is no longer required, returned to taxpayers as
  121  provided by general law.
  122         (c) AUTHORITY OF THE LEGISLATURE TO INCREASE THE REVENUE
  123  LIMITATION.—
  124         (1) The state revenue limitation for any fiscal year may be
  125  increased by a two-thirds vote of the membership of each house
  126  of the legislature. Unless otherwise provided by the bill
  127  increasing the revenue limitation, the increased revenue
  128  limitation enacted under this paragraph shall be used to
  129  determine the revenue limitation for future fiscal years.
  130         (2) The state revenue limitation for any one fiscal year
  131  may be increased by a three-fifths vote of the membership of
  132  each house of the legislature. Increases to the revenue
  133  limitation enacted under this paragraph must be disregarded when
  134  determining the revenue limitation in subsequent fiscal years.
  135         (3) A bill increasing the revenue limitation may not
  136  contain any other subject and must set forth the dollar amount
  137  by which the state revenue limitation will be increased. The
  138  vote may not be taken less than seventy-two hours after the
  139  third reading in either house of the legislature of the bill in
  140  the form that will be presented to the governor.
  141         (d) AUTHORITY OF THE ELECTORS TO INCREASE THE REVENUE
  142  LIMITATION.—The legislature may propose an increase in the state
  143  revenue limitation pursuant to a concurrent resolution enacted
  144  by a three-fifths vote of the membership of each house. The
  145  proposed increase shall be submitted to the electors at the next
  146  general election held more than ninety days after the resolution
  147  is filed with the custodian of state records. However, the
  148  legislature may submit the proposed increase at an earlier
  149  special election held more than ninety days after it is filed
  150  with the custodian of state records pursuant to a law enacted by
  151  the affirmative vote of three-fourths of the membership of each
  152  house of the legislature. The resolution must set forth the
  153  dollar amount by which the state revenue limitation will be
  154  increased. Unless otherwise provided in the resolution, the
  155  increased revenue limitation shall be used to determine the
  156  revenue limitation for future fiscal years. The proposed
  157  increase shall take effect if it is approved by a vote of at
  158  least 60 percent of the electors voting on the matter.
  159         (e) REVENUE LIMIT ADJUSTMENT BY THE LEGISLATURE.—The
  160  legislature shall provide by general law for adjustments to the
  161  state revenue limitation to reflect:
  162         (1) The fiscal impact of transfers of responsibility for
  163  the funding of governmental functions between the state and
  164  other levels of government occurring after May 6, 2011; or
  165         (2) The fiscal impact of a new federal mandate.
  166         (f) GENERAL LAW IMPLEMENTATION.—The legislature shall, by
  167  general law, prescribe procedures necessary to administer this
  168  section.
  169         (g) DEFINITIONS.—As used in this section, the term:
  170         (1) “Adjustment for growth” means an amount equal to the
  171  average for the previous five years of the product of the
  172  inflation factor and the population factor.
  173         (2) “Inflation factor” means an amount equal to one plus
  174  the percent change in the calendar year annual average of the
  175  Consumer Price Index. The term “Consumer Price Index” means the
  176  Consumer Price Index for All Urban Consumers, U.S. city average
  177  (not seasonally adjusted, current base for all items), as
  178  published by the United States Department of Labor. In the event
  179  the index ceases to exist, the legislature shall determine the
  180  successor index by general law.
  181         (3) “Population factor” means an amount equal to one plus
  182  the percent change in population of the state as of April 1
  183  compared to April 1 of the prior year. For purposes of
  184  calculating the annual rate of change in population, the state’s
  185  official population estimates shall be used.
  186         (4) “State revenues” means taxes, fees, licenses, fines,
  187  and charges for services imposed by the legislature on
  188  individuals, businesses, or agencies outside state government.
  189  However, the term “state revenues” does not include: revenues
  190  that are necessary to meet the requirements set forth in
  191  documents authorizing the issuance of bonds by the state for
  192  bonds issued before July 1, 2012; revenues that are used to
  193  provide matching funds for the federal Medicaid program with the
  194  exception of the revenues used to support the Public Medical
  195  Assistance Trust Fund or its successor program and with the
  196  exception of state matching funds used to fund optional
  197  expansions made after July 1, 1994; proceeds from the state
  198  lottery returned as prizes; receipts of the Florida Hurricane
  199  Catastrophe Fund and Citizens Property Insurance Corporation;
  200  receipts of public universities and colleges; balances carried
  201  forward from prior fiscal years; taxes, fees, licenses, fines,
  202  and charges for services imposed by local, regional, or school
  203  district governing bodies; or revenue from taxes, fees,
  204  licenses, fines, and charges for services authorized by any
  205  amendment or revision to this constitution after May 6, 2011.
  206                             ARTICLE XII                           
  207                              SCHEDULE                             
  208         SECTION 32. State revenue limitation.—The amendment to
  209  Section 1 and the creation of Section 19 of Article VII,
  210  revising the state revenue limitation, and this section take
  211  effect upon approval by the electors and apply beginning in the
  212  2014-2015 state fiscal year.
  213         BE IT FURTHER RESOLVED that the following statement be
  214  placed on the ballot:
  215                   ARTICLE VII, SECTIONS 1 and 19                  
  216                       ARTICLE XII, SECTION 32                     
  217                      CONSTITUTIONAL AMENDMENT                     
  218         STATE GOVERNMENT REVENUE LIMITATION.—This proposed
  219  amendment to the State Constitution replaces the existing state
  220  revenue limitation based on Florida personal income growth with
  221  a new state revenue limitation based on inflation and population
  222  changes. Under the amendment, state revenues, as defined in the
  223  amendment, collected in excess of the revenue limitation must be
  224  deposited into the budget stabilization fund until the fund
  225  reaches its maximum balance, and thereafter shall be used for
  226  the support and maintenance of public schools by reducing the
  227  minimum financial effort required from school districts for
  228  participation in a state-funded education finance program, or,
  229  if the minimum financial effort is no longer required, returned
  230  to the taxpayers. The Legislature may increase the state revenue
  231  limitation through a bill approved by a super majority vote of
  232  each house of the Legislature. The Legislature may also submit a
  233  proposed increase in the state revenue limitation to the voters.
  234  The Legislature must implement this proposed amendment by
  235  general law. The amendment will take effect upon approval by the
  236  electors and will first apply to the 2014-2015 state fiscal
  237  year.