Bill Text: FL S2420 | 2010 | Regular Session | Comm Sub

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Bill Title: State Revenues/Voter Approval New Taxes and Fees [WPSC]

Sponsorship: Partisan Bill (Republican 1)

Status: (Failed) 2010-04-30 - Died in Committee on Finance and Tax [S2420 Detail]

Download: Florida-2010-S2420-Comm_Sub.html

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Florida Senate - 2010                            CS for SJR 2420 
 
By the Committee on Community Affairs; and Senator Haridopolos 
578-03533-10                                          20102420c1 
1                       Senate Joint Resolution 
2         A joint resolution proposing an amendment to Section 1 
3         and the creation of a new section in Article VII of 
4         the State Constitution to limit state revenues and 
5         require voter approval of new taxes and fees. 
6 
7  Be It Resolved by the Legislature of the State of Florida: 
8 
9         That the following amendment to Section 1 and the creation 
10  of a new section in Article VII of the State Constitution are 
11  agreed to and shall be submitted to the electors of this state 
12  for approval or rejection at the next general election or at an 
13  earlier special election specifically authorized by law for that 
14  purpose: 
15                             ARTICLE VII 
16                        FINANCE AND TAXATION 
17         SECTION 1. Taxation; appropriations; state expenses; state 
18  revenue limitation.— 
19         (a) No tax shall be levied except in pursuance of law. No 
20  state ad valorem taxes shall be levied upon real estate or 
21  tangible personal property. All other forms of taxation shall be 
22  preempted to the state except as provided by general law. 
23         (b) Motor vehicles, boats, airplanes, trailers, trailer 
24  coaches and mobile homes, as defined by law, shall be subject to 
25  a license tax for their operation in the amounts and for the 
26  purposes prescribed by law, but shall not be subject to ad 
27  valorem taxes. 
28         (c) No money shall be drawn from the treasury except in 
29  pursuance of appropriation made by law. 
30         (d) Provision shall be made by law for raising sufficient 
31  revenue to defray the expenses of the state for each fiscal 
32  period. 
33         (e) Except as provided herein, state revenues collected for 
34  any fiscal year shall be limited to state revenues allowed under 
35  this subsection for the prior fiscal year plus an adjustment for 
36  growth. As used in this subsection, “growth” means an amount 
37  equal to the average annual rate of growth in Florida personal 
38  income over the most recent twenty quarters times the state 
39  revenues allowed under this subsection for the prior fiscal 
40  year. For the 1995-1996 fiscal year, the state revenues allowed 
41  under this subsection for the prior fiscal year shall equal the 
42  state revenues collected for the 1994-1995 fiscal year. Florida 
43  personal income shall be determined by the legislature, from 
44  information available from the United States Department of 
45  Commerce or its successor on the first day of February prior to 
46  the beginning of the fiscal year. State revenues collected for 
47  any fiscal year in excess of this limitation shall be 
48  transferred to the budget stabilization fund until the fund 
49  reaches the maximum balance specified in Section 19(g) of 
50  Article III, and thereafter shall be refunded to taxpayers as 
51  provided by general law. State revenues allowed under this 
52  subsection for any fiscal year may be increased by a two-thirds 
53  vote of the membership of each house of the legislature in a 
54  separate bill that contains no other subject and that sets forth 
55  the dollar amount by which the state revenues allowed will be 
56  increased. The vote may not be taken less than seventy-two hours 
57  after the third reading of the bill. For purposes of this 
58  subsection, “state revenues” means taxes, fees, licenses, and 
59  charges for services imposed by the legislature on individuals, 
60  businesses, or agencies outside state government. However, 
61  “state revenues” does not include: revenues that are necessary 
62  to meet the requirements set forth in documents authorizing the 
63  issuance of bonds by the state; revenues that are used to 
64  provide matching funds for the federal Medicaid program with the 
65  exception of the revenues used to support the Public Medical 
66  Assistance Trust Fund or its successor program and with the 
67  exception of state matching funds used to fund elective 
68  expansions made after July 1, 1994; proceeds from the state 
69  lottery returned as prizes; receipts of the Florida Hurricane 
70  Catastrophe Fund; balances carried forward from prior fiscal 
71  years; taxes, licenses, fees, and charges for services imposed 
72  by local, regional, or school district governing bodies; or 
73  revenue from taxes, licenses, fees, and charges for services 
74  required to be imposed by any amendment or revision to this 
75  constitution after July 1, 1994. An adjustment to the revenue 
76  limitation shall be made by general law to reflect the fiscal 
77  impact of transfers of responsibility for the funding of 
78  governmental functions between the state and other levels of 
79  government. The legislature shall, by general law, prescribe 
80  procedures necessary to administer this subsection. 
81         State revenue limit.— 
82         (a) DEFINITIONS. As used in this section, the term: 
83         (1) “Fiscal year” means the applicable fiscal year of the 
84  state. 
85         (2) “Growth” means an amount equal to revenues collected in 
86  the 2010-2011 fiscal year multiplied for each subsequent fiscal 
87  year by the combined rate of inflation and rate of population 
88  change. 
89         (3) “Rate of inflation” means the percentage change in the 
90  Consumer Price Index for all urban wage earners and clerical 
91  workers for the south region, or a successor index, for the 
92  preceding calendar year as calculated by the United States 
93  Department of Labor, Bureau of Labor Statistics. The stated 
94  percentages shall be established annually in the manner 
95  prescribed by general law, and shall be based on a comparison of 
96  the average of the Consumer Price Index during the most recent 
97  two consecutive calendar years. 
98         (4) “Rate of population change” means the percentage change 
99  in the population of the state as estimated by the United States 
100  Census Bureau. The stated percentage shall be established 
101  annually in the manner prescribed by general law, and shall be 
102  based on a comparison of the average of the Census Bureau 
103  estimates for the most recent two consecutive calendar years. 
104         (5) “State revenues” means revenues to the General Revenue 
105  Fund from taxes, fees, assessments, licenses, fines, and charges 
106  for services imposed by the legislature or executive branch 
107  agencies on individuals, businesses, or agencies outside state 
108  government. However, the term does not include: proceeds from 
109  the issuance of bonds, proceeds from the state lottery returned 
110  as prizes, receipts of the Florida Hurricane Catastrophe Fund 
111  and Citizens Property Insurance Corporation or their successor 
112  entities, tuition and fees charged to students by public 
113  universities and community colleges, gifts, federal funds, 
114  collections for another government, pension contributions by 
115  employees and pension fund earnings, budget stabilization fund 
116  transfers, damage awards, and property sales. 
117         (b) STATE REVENUE LIMIT. Except as provided in this 
118  section, state revenues for any fiscal year shall be limited to 
119  revenues collected in the 2010-2011 fiscal year plus an annual 
120  adjustment for growth. 
121         (c) REVENUE RELATING TO BONDS. State revenues do not 
122  include the proceeds from the issuance of bonds. However, the 
123  debt service on bonds shall decrease the revenue limit by the 
124  amount of the annual debt service. 
125         (d) LEGISLATIVE OVERRIDE OF REVENUE LIMITS. The state may 
126  not impose taxes, fees, licenses, fines, or charges for services 
127  expected to exceed the revenue limit, as projected by the state 
128  at the adoption of the General Appropriations Act. 
129         (1) State revenue collected in any fiscal year in excess of 
130  the revenue limit shall be transferred to the budget 
131  stabilization fund specified in Section 19(g) of Article III 
132  until the fund reaches the maximum amount specified in that 
133  section. Additional excess revenue shall be held in a separate 
134  cash reserve, with such excess revenue and any investment income 
135  thereon treated as revenue in the first or second fiscal year 
136  after the collection of those revenues, as prescribed by general 
137  law. Funds from the budget stabilization fund may not be 
138  expended except pursuant to a declaration of emergency by the 
139  Governor and a two-thirds vote of the membership of each house 
140  of the legislature. 
141         (2) When the budget stabilization fund is fully funded, 
142  revenue collected in excess of the revenue limit may not be 
143  spent unless authorized by a two-thirds vote of the membership 
144  of each house of the legislature or the funds are used to 
145  provide tax relief or to reduce the ad valorem taxes that must 
146  be levied by a school district to become eligible for state 
147  funding. 
148         (e) EMERGENCY TAXES. 
149         (1) Emergency taxes may be assessed under conditions set 
150  forth in this subsection. Emergency tax revenue shall be spent 
151  only after emergency reserves are depleted. Revenues from 
152  emergency taxes shall be refunded within 180 days after the 
153  emergency terminates if the revenues were not spent on the 
154  emergency. This subsection does not grant any new taxing powers 
155  and prohibits emergency property taxes. 
156         (2) Emergency taxes may not be levied unless the Governor 
157  declares a state of emergency and the taxes are approved by a 
158  two-thirds vote of the membership of each house of the 
159  legislature. The vote of each member of the legislature must be 
160  recorded. 
161         (3) As used in this subsection, the term “emergency” does 
162  not include economic conditions, revenue shortfalls, or salary 
163  and fringe benefit increases. 
164         (f) BALLOT ISSUE TO EXCEED A REVENUE LIMIT. A ballot issue 
165  for authorization to exceed the revenue limit must state the 
166  amount by which the state proposes to exceed the limit in each 
167  fiscal year. The ballot issue must also state the date on which 
168  the authority to exceed a revenue limit expires. Such date must 
169  be the last day of the fiscal year. 
170         (g) REVENUE LIMIT ADJUSTMENT. The legislature may provide 
171  by general law for adjustments to the revenue limit to reflect 
172  the fiscal impact of the following events occurring after 
173  January 4, 2011: 
174         (1) A change in federal or state law which increases or 
175  decreases state or local government responsibility for the 
176  funding of governmental functions; or 
177         (2) A transfer of the responsibility to fund a government 
178  function to the state or a local government. 
179         (h) VOTER APPROVAL OF NEW REVENUE SOURCES. The state must 
180  receive advance approval by a two-thirds vote of the electors 
181  voting on a measure to: 
182         (1) Impose a new tax, fee, assessment, or charge for 
183  services; or 
184         (2) Incur multiple-year direct or indirect debt or other 
185  financial obligations without having adequate present cash 
186  reserves pledged irrevocably and held for payments in all future 
187  fiscal years, except to refinance bonded debt at a lower 
188  interest rate or to add new employees to a pension plan. 
189         (i) CONSTRUCTION. This section shall be interpreted in a 
190  manner that reasonably restrains most state revenue growth. This 
191  section supersedes any conflicting provisions of the State 
192  Constitution in effect prior to the effective date of this 
193  section. 
194         (j) EFFECTIVE DATE. This section shall take effect upon 
195  approval by the electors. During the 2011 regular session of the 
196  legislature, the legislature shall adopt implementing 
197  legislation having an effective date of July 1, 2011. 
198         BE IT FURTHER RESOLVED that the following statement be 
199  placed on the ballot: 
200                      CONSTITUTIONAL AMENDMENT 
201                       ARTICLE VII, SECTION 1 
202                             ARTICLE VII 
203         LIMITING STATE REVENUES, VOTER APPROVAL OF NEW TAXES AND 
204  FEES.—This proposed amendment to the State Constitution replaces 
205  the existing state revenue limit based on Florida personal 
206  income growth with a limit on revenues to the State General 
207  Revenue Fund based on inflation and population changes. Revenues 
208  collected in excess of the revenue limit must be deposited in 
209  the budget stabilization fund and used to provide tax relief. 
210         However, the amendment permits voters to authorize the 
211  collection of revenues in excess of the revenue limit. The 
212  amendment also permits the Legislature to approve taxes by a 
213  super majority vote for certain emergencies. 
214         Lastly, this amendment prohibits the state from the 
215  following without first obtaining approval by a super majority 
216  vote of the electors: 
217         (1) Imposing new taxes, fees, assessments, or charges for 
218  services; or 
219         (2) Incurring multiyear debts or financial obligations 
220  without adequate cash reserves.