Bill Text: FL S1130 | 2010 | Regular Session | Introduced
Bill Title: Local Government Revenue Intercept Act [WPSC]
Spectrum: Partisan Bill (Republican 2-0)
Status: (Failed) 2010-04-30 - Died in Committee on Governmental Oversight and Accountability [S1130 Detail]
Download: Florida-2010-S1130-Introduced.html
Florida Senate - 2010 SB 1130 By Senator Constantine 22-00964-10 20101130__ 1 A bill to be entitled 2 An act relating to the Local Government Revenue 3 Intercept Act; creating s. 218.387, F.S.; providing a 4 short title; providing definitions; providing that a 5 local government may authorize by resolution or 6 ordinance the Department of Revenue to intercept 7 certain revenues in order to replenish the debt 8 service reserve or other payment for local government 9 bonds; providing certain requirements for such 10 resolution or ordinance; specifying certain 11 obligations and restrictions on the local government 12 with respect to such interception; authorizing the 13 department to adopt rules; providing an effective 14 date. 15 16 Be It Enacted by the Legislature of the State of Florida: 17 18 Section 1. Section 218.387, Florida Statutes, is created to 19 read: 20 218.387 Local Government Revenue Intercept Act.— 21 (1) This section may be cited as the “Local Government 22 Revenue Intercept Act.” 23 (2) As used in this section, the term: 24 (a) “Available revenues” means local government funds 25 derived from one or more of the following: the communications 26 services tax, the local government half-cent sales tax, a local 27 option fuel tax, or revenue sharing. 28 (b) “Bonds” means any bond, loan, promissory note, lease 29 purchase agreement, certificate of participation, installment 30 sale, lease, or similar financing mechanism or financial 31 arrangement of a local government, whether or not a debt for 32 legal purposes. 33 (c) “Communications services tax” means the communications 34 services tax collected pursuant to chapter 202 for distribution 35 to local governments. 36 (d) “Department” means the Department of Revenue. 37 (e) “Intercept program” means an authorized process for 38 intercepting a local government’s available revenues as provided 39 in subsection (3). 40 (f) “Local government” means any county or municipality, or 41 any county or municipality that individually or collectively 42 participates with a separate legal entity created under s. 43 163.01 for the purpose of financing or refinancing bonds and the 44 separate legal entity. 45 (g) “Local government half-cent sales tax” means the local 46 government half-cent sales tax collected pursuant to part VI of 47 this chapter for distribution to local governments. 48 (h) “Local option fuel tax” means any optional fuel tax 49 collected by a county, municipality, or other political 50 subdivision pursuant to chapter 206 for distribution to local 51 governments. 52 (i) “Revenue sharing” means funds available pursuant to 53 part II of this chapter for distribution to local governments. 54 (3) A local government may, by resolution or ordinance, 55 authorize the department to intercept the local government’s 56 available revenues as specified in this section. 57 (a) The resolution or ordinance must: 58 1. Specifically authorize the department to intercept 59 available revenues collected or held by the state for the local 60 government and use the revenues to replenish the debt service 61 reserve or other similar payment account for the local 62 government bonds if the local government failed to make a 63 required debt service or other similar payment and the bond 64 account has been drawn upon to make such payment. 65 2. Specifically authorize the department to intercept 66 available revenues that have not been pledged to other current 67 or future bonds of the local government. 68 3. Specifically authorize the department to intercept 69 available revenues, if any, as needed from the following sources 70 in the following order of priority: 71 a. Funds derived from revenue sharing which are restricted 72 under s. 218.25(4) and not permitted to be assigned, pledged, or 73 set aside for debt service or other similar payment. 74 b. Funds derived from the local government half-cent sales 75 tax. 76 c. Funds derived from the communications services tax. 77 d. Funds derived from a local option fuel tax if the bonds 78 relate to an authorized use of such funds. 79 e. Any remaining funds derived from revenue sharing. 80 4. Specify the trustee or paying agent for the local 81 government bonds, specifically authorize the department to 82 receive and act on requests by the trustee or paying agent to 83 intercept available revenues, and acknowledge that the local 84 government is responsible for informing the department of any 85 changes to the trustee or paying agent within 30 days after such 86 change. 87 5. Require that local government bonds have a cash-funded 88 debt service or other similar payment reserve equal to the 89 maximum annual debt service or other similar payment, and 90 require that payment dates for principal and interest for the 91 bonds be no more frequent than quarterly. 92 6. Inform the department of the debt service or other 93 similar payment schedule for the local government bonds. 94 7. Provide that the local government has reasonably 95 determined in good faith that anticipated available revenues in 96 each fiscal year during the term or length of the local 97 government bonds will be at least 1.75 times the maximum annual 98 amount of debt service or other similar payment on the bonds. 99 8. Acknowledge that the local government may not amend or 100 repeal the resolution or ordinance establishing the intercept 101 program without the concurrence of a majority of the purchasers, 102 holders, and owners of the local government bonds, or an entity 103 authorized to act on the behalf of the purchasers, holders, and 104 owners. 105 9. Acknowledge that the resolution or ordinance authorizing 106 the intercept program must be included and made a part of the 107 bond resolution or other bond agreement. 108 (b) The local government shall provide a copy of the 109 ordinance or resolution to the department and the Division of 110 Bond Finance of the State Board of Administration. Within 30 111 days after receipt, the department shall acknowledge and accept 112 the ordinance or resolution after it has determined that the 113 ordinance or resolution contains all the required authorizations 114 and information specified in this subsection, or, if not, inform 115 the local government in writing of any deficiencies with the 116 ordinance or resolution. 117 (4) A local government’s funds, as restricted under revenue 118 sharing under s. 218.25(4) and not permitted to be assigned, 119 pledged, or set aside for debt service or other similar payment, 120 must be available revenues subject to being intercepted as 121 provided in this section. Available revenues under an intercept 122 program of 1.75 times the maximum annual amount of debt service 123 or other similar payment on the local government bonds are 124 provided solely to prevent a default on local government bonds 125 and may not be considered in any calculation for additional 126 local government bonds. The department shall implement only the 127 specific provisions of this section and is not responsible for 128 providing the local government’s demographic or revenue history. 129 The local government and trustee or paying agent shall jointly 130 inform the department of the termination of local government 131 bonds subject to the intercept program. 132 (5) The trustee or paying agent for local government bonds 133 subject to an intercept program must provide the department and 134 the local government with at least 60 days’ written notice of 135 the need to intercept the local government’s available revenues, 136 the exact amount of revenues to be intercepted, the date the 137 intercepted revenues are to be deposited with the trustee or 138 paying agent, and wiring or other instructions for transmitting 139 the revenues. Upon receiving the notice, the department shall 140 intercept the local government’s available revenues, if the 141 revenues are otherwise required to be distributed to the local 142 government by the department, and transmit the revenues as 143 specified by the trustee or paying agent in a timely manner. The 144 department shall be paid for all costs it incurs in 145 administering this section. 146 (6) A local government’s bonds subject to an intercept 147 program do not constitute an obligation of the state, a debt of 148 the state, or a pledge of the full faith and credit or taxing 149 power of the state. Revenues payable under an intercept program 150 are payable only from available revenues as provided in this 151 section. An intercept program does not constitute the state’s 152 assumption of a debt of a local government. The state covenants 153 with the purchasers, holders, and owners of bonds covered under 154 an intercept program that it will not repeal, revoke, rescind, 155 modify, or amend the provisions of this section in a manner that 156 would abrogate the rights or protections of such purchasers, 157 holders, and owners of bonds. 158 (7) The department may adopt forms or rules to administer 159 this section. 160 Section 2. This act shall take effect upon becoming a law.
