HB 0133 2003
1	A bill to be entitled
2	An act relating to firefighter and municipal police
3	pensions; creating ss. 175.1015 and 185.085, F.S.;
4	requiring the Department of Revenue to create and maintain
5	a database for use by insurers for certain purposes;
6	providing insurers with incentives for using the database;
7	providing penalties for failure to use the database;
8	requiring local governments to provide information to the
9	department; appropriating funds to the department for the
10	administration of the database; authorizing the department
11	to adopt rules; providing for distribution of certain tax
12	revenues through 2007; amending ss. 175.351 and 185.35,
13	F.S.; revising the term "extra benefits" with respect to
14	pension plans for firefighters and pension plans for
15	municipal police officers; providing an appropriation;
16	providing an effective date.
17
18	Be It Enacted by the Legislature of the State of Florida:
19
20	Section 1. Section 175.1015, Florida Statutes, is created
21	to read:
22	175.1015 Determination of local premium tax situs.--
23	(1)(a) Any insurance company that is obligated to report
24	and remit the excise tax on property insurance premiums imposed
25	under s. 175.101 shall be held harmless from any liability for
26	taxes, interest, or penalties that would otherwise be due solely
27	as a result of an assignment of an insured property to an
28	incorrect local taxing jurisdiction if the insurance company
29	exercises due diligence in applying an electronic database
30	provided by the Department of Revenue under subsection (2).
31	Insurance companies that do not use the electronic database
32	provided by the Department of Revenue or that do not exercise
33	due diligence in applying the electronic database are subject to
34	a 0.5-percent penalty on the portion of the premium pertaining
35	to any insured risk that is improperly assigned, whether
36	assigned to an improper local taxing jurisdiction, not assigned
37	to a local taxing jurisdiction when it should be assigned to a
38	local taxing jurisdiction, or assigned to a local taxing
39	jurisdiction when it should not be assigned to a local taxing
40	jurisdiction.
41	(b) Any insurance company that is obligated to report and
42	remit the excise tax on commercial property insurance premiums
43	imposed under s. 175.101 and is unable, after due diligence, to
44	assign an insured property to a specific local taxing
45	jurisdiction for purposes of complying with paragraph (a) shall
46	remit the excise tax on commercial property insurance premiums
47	using a methodology of apportionment in a manner consistent with
48	the remittance for the 2002 calendar year.
49	(2)(a) The Department of Revenue shall, subject to
50	legislative appropriation, create as soon as practical and
51	feasible, and thereafter shall maintain, an electronic database
52	that gives due and proper regard to any format that is approved
53	by the American National Standards Institute's Accredited
54	Standards Committee X12 and that designates for each street
55	address and address range in the state, including any multiple
56	postal street addresses applicable to one street location, the
57	local taxing jurisdiction in which the street address and
58	address range is located and the appropriate code for each such
59	participating local taxing jurisdiction, identified by one
60	nationwide standard numeric code. The nationwide standard
61	numeric code must contain the same number of numeric digits, and
62	each digit or combination of digits must refer to the same level
63	of taxing jurisdiction throughout the United States and must be
64	in a format similar to FIPS 55-3 or other appropriate standard
65	approved by the Federation of Tax Administrators and the
66	Multistate Tax Commission. Each address or address range must be
67	provided in standard postal format, including the street number,
68	street number range, street name, and zip code. Each year after
69	the creation of the initial database, the Department of Revenue
70	shall annually create and maintain a database for the current
71	tax year. Each annual database must be calendar-year specific.
72	(b)1. Each participating local taxing jurisdiction shall
73	furnish to the Department of Revenue all information needed to
74	create the electronic database as soon as practical and
75	feasible. The information furnished to the Department of Revenue
76	must specify an effective date.
77	2. Each participating local taxing jurisdiction shall
78	furnish to the Department of Revenue all information needed to
79	create and update the current year's database, including changes
80	in annexations, incorporations, and reorganizations and any
81	other changes in jurisdictional boundaries, as well as changes
82	in eligibility to participate in the excise tax imposed under
83	this chapter. The information must specify an effective date and
84	must be furnished to the Department of Revenue by July 1 of the
85	current year.
86	3. The Department of Revenue shall create and update the
87	current year's database in accordance with the information
88	furnished by participating local taxing jurisdictions under
89	subparagraph 1. or subparagraph 2., as appropriate. To the
90	extent practicable, the Department of Revenue shall post each
91	new annual database on a web site by September 1 of each year.
92	Each participating local taxing jurisdiction shall have access
93	to this web site and, within 30 days thereafter, shall provide
94	any corrections to the Department of Revenue. The Department of
95	Revenue shall finalize the current year's database and post it
96	on a web site by November 1 of the tax year. If a dispute in
97	jurisdictional boundaries cannot be resolved so that changes in
98	boundaries may be included, as appropriate, in the database by
99	November 1, the changes may not be retroactively included in the
100	current year's database and the boundaries will remain the same
101	as in the previous year's database. The finalized database must
102	be used in assigning policies and premiums to the proper local
103	taxing jurisdiction for the insurance premium tax return due on
104	the following March 1. The Department of Revenue shall furnish
105	the annual database on magnetic or electronic media to any
106	insurance company or vendor that requests the database for the
107	sole purpose of assigning insurance premiums to the proper local
108	taxing jurisdiction for the excise tax imposed under this
109	chapter. Information contained in the electronic database is
110	conclusive for purposes of this chapter. The electronic database
111	is not an order, a rule, or a policy of general applicability.
112	4. Each annual database must identify the additions,
113	deletions, and other changes to the preceding version of the
114	database.
115	(3)(a) As used in this section, the term "due diligence"
116	means the care and attention that is expected from and is
117	ordinarily exercised by a reasonable and prudent person under
118	the circumstances.
119	(b) Notwithstanding any law to the contrary, an insurance
120	company is exercising due diligence if the insurance company
121	complies with the provisions of paragraph (1)(b) or if the
122	insurance company assigns an insured's premium to local taxing
123	jurisdictions in accordance with the Department of Revenue's
124	annual database and:
125	1. Expends reasonable resources to accurately and reliably
126	implement such method;
127	2. Maintains adequate internal controls to correctly
128	include in its database of policyholders the location of the
129	property insured, in the proper address format, so that matching
130	with the department's database is accurate; and
131	3. Corrects errors in the assignment of addresses to local
132	taxing jurisdictions within 120 days after the insurance company
133	discovers the errors.
134	(4) There is annually appropriated from the moneys
135	collected under this chapter and deposited in the Police and
136	Firefighter's Premium Tax Trust Fund an amount sufficient to pay
137	the expenses of the Department of Revenue in administering this
138	section, but not to exceed $50,000 annually, adjusted annually
139	by the lesser of a 5-percent increase or the percentage of
140	growth in the total collections.
141	(5) The Department of Revenue shall adopt rules necessary
142	to administer this section, including rules establishing
143	procedures and forms.
144	(6) Any insurer that is obligated to collect and remit the
145	tax on property insurance imposed under s. 175.101 shall be held
146	harmless from liability, including, but not limited to, any tax,
147	interest, or penalties, which would otherwise be due solely as a
148	result of an assignment of an insured property to an incorrect
149	local taxing jurisdiction, based on the collection and remission
150	of the tax accruing before January 1, 2004, provided the insurer
151	collects and reports this tax consistent with filings for
152	periods before January 1, 2004. Further, any insurer that is
153	obligated to collect and remit the tax on property insurance
154	imposed under this section shall not be subject to an
155	examination under s. 624.316 or s. 624.3161 which would occur
156	solely as a result of an assignment of an insured property to an
157	incorrect local taxing jurisdiction, based on the collection and
158	remission of such tax accruing before January 1, 2004.
159	Section 2. Subsection (1) of section 175.351, Florida
160	Statutes, is amended to read:
161	175.351 Municipalities and special fire control districts
162	having their own pension plans for firefighters.--For any
163	municipality, special fire control district, local law
164	municipality, local law special fire control district, or local
165	law plan under this chapter, in order for municipalities and
166	special fire control districts with their own pension plans for
167	firefighters, or for firefighters and police officers, where
168	included, to participate in the distribution of the tax fund
169	established pursuant to s. 175.101, local law plans must meet
170	the minimum benefits and minimum standards set forth in this
171	chapter.
172	(1) PREMIUM TAX INCOME.--If a municipality has a pension
173	plan for firefighters, or a pension plan for firefighters and
174	police officers, where included, which in the opinion of the
175	division meets the minimum benefits and minimum standards set
176	forth in this chapter, the board of trustees of the pension
177	plan, as approved by a majority of firefighters of the
178	municipality, may:
179	(a) Place the income from the premium tax in s. 175.101 in
180	such pension plan for the sole and exclusive use of its
181	firefighters, or for firefighters and police officers, where
182	included, where it shall become an integral part of that pension
183	plan and shall be used to pay extra benefits to the firefighters
184	included in that pension plan; or
185	(b) Place the income from the premium tax in s. 175.101 in
186	a separate supplemental plan to pay extra benefits to
187	firefighters, or to firefighters and police officers where
188	included, participating in such separate supplemental plan.
189
190	The premium tax provided by this chapter shall in all cases be
191	used in its entirety to provide extra benefits to firefighters,
192	or to firefighters and police officers, where included. However,
193	local law plans in effect on October 1, 1998, shall be required
194	to comply with the minimum benefit provisions of this chapter
195	only to the extent that additional premium tax revenues become
196	available to incrementally fund the cost of such compliance as
197	provided in s. 175.162(2)(a). When a plan is in compliance with
198	such minimum benefit provisions, as subsequent additional
199	premium tax revenues become available, they shall be used to
200	provide extra benefits. For the purpose of this chapter,
201	"additional premium tax revenues" means revenues received by a
202	municipality or special fire control district pursuant to s.
203	175.121 that exceed that amount received for calendar year 1997
204	and the term "extra benefits" means benefits in addition to or
205	greater than those provided to general employees of the
206	municipalityand in addition to those in existence for
207	firefighters on March 12, 1999. Local law plans created by
208	special act before May 23, 1939, shall be deemed to comply with
209	this chapter.
210	Section 3. Section 185.085, Florida Statutes, is created
211	to read:
212	185.085 Determination of local premium tax situs.--
213	(1)(a) Any insurance company that is obligated to report
214	and remit the excise tax on casualty insurance premiums imposed
215	under s. 185.08 shall be held harmless from any liability for
216	taxes, interest, or penalties that would otherwise be due solely
217	as a result of an assignment of an insured property to an
218	incorrect local taxing jurisdiction if the insurance company
219	exercises due diligence in applying an electronic database
220	provided by the Department of Revenue under subsection (2).
221	Insurance companies that do not use the electronic database
222	provided by the Department of Revenue or that do not exercise
223	due diligence in applying the electronic database are subject to
224	a 0.5-percent penalty on the portion of the premium pertaining
225	to any insured risk that is improperly assigned, whether
226	assigned to an improper local taxing jurisdiction, not assigned
227	to a local taxing jurisdiction when it should be assigned to a
228	local taxing jurisdiction, or assigned to a local taxing
229	jurisdiction when it should not be assigned to a local taxing
230	jurisdiction.
231	(b) Any insurance company that is obligated to report and
232	remit the excise tax on commercial casualty insurance premiums
233	imposed under s. 185.08 and is unable, after due diligence, to
234	assign an insured property to a specific local taxing
235	jurisdiction for purposes of complying with paragraph(a) shall
236	remit the excise tax on commercial casualty insurance premiums
237	using a methodology of apportionment in a manner consistent with
238	the remittance for the 2002 calendar year.
239	(2)(a) The Department of Revenue shall, subject to
240	legislative appropriation, create as soon as practical and
241	feasible, and thereafter shall maintain, an electronic database
242	that gives due and proper regard to any format that is approved
243	by the American National Standards Institute's Accredited
244	Standards Committee X12 and that designates for each street
245	address and address range in the state, including any multiple
246	postal street addresses applicable to one street location, the
247	local taxing jurisdiction in which the street address and
248	address range is located and the appropriate code for each such
249	participating local taxing jurisdiction, identified by one
250	nationwide standard numeric code. The nationwide standard
251	numeric code must contain the same number of numeric digits, and
252	each digit or combination of digits must refer to the same level
253	of taxing jurisdiction throughout the United States and must be
254	in a format similar to FIPS 55-3 or other appropriate standard
255	approved by the Federation of Tax Administrators and the
256	Multistate Tax Commission. Each address or address range must be
257	provided in standard postal format, including the street number,
258	street number range, street name, and zip code. Each year after
259	the creation of the initial database, the Department of Revenue
260	shall annually create and maintain a database for the current
261	tax year. Each annual database must be calendar-year specific.
262	(b)1. Each participating local taxing jurisdiction shall
263	furnish to the Department of Revenue all information needed to
264	create the electronic database as soon as practical and
265	feasible. The information furnished to the Department of Revenue
266	must specify an effective date.
267	2. Each participating local taxing jurisdiction shall
268	furnish to the Department of Revenue all information needed to
269	create and update the current year's database, including changes
270	in annexations, incorporations, and reorganizations and any
271	other changes in jurisdictional boundaries, as well as changes
272	in eligibility to participate in the excise tax imposed under
273	this chapter. The information must specify an effective date and
274	must be furnished to the Department of Revenue by July 1 of the
275	current year.
276	3. The Department of Revenue shall create and update the
277	current year's database in accordance with the information
278	furnished by participating local taxing jurisdictions under
279	subparagraph 1. or subparagraph 2., as appropriate. To the
280	extent practicable, the Department of Revenue shall post each
281	new annual database on a web site by September 1 of each year.
282	Each participating local taxing jurisdiction shall have access
283	to this web site and, within 30 days thereafter, shall provide
284	any corrections to the Department of Revenue. The Department of
285	Revenue shall finalize the current year's database and post it
286	on a web site by November 1 of the tax year. If a dispute in
287	jurisdictional boundaries cannot be resolved so that changes in
288	boundaries may be included, as appropriate, in the database by
289	November 1, the changes may not be retroactively included in the
290	current year's database and the boundaries will remain the same
291	as in the previous year's database. The finalized database must
292	be used in assigning policies and premiums to the proper local
293	taxing jurisdiction for the insurance premium tax return due on
294	the following March 1. The Department of Revenue shall furnish
295	the annual database on magnetic or electronic media to any
296	insurance company or vendor that requests the database for the
297	sole purpose of assigning insurance premiums to the proper local
298	taxing jurisdiction for the excise tax imposed under this
299	chapter. Information contained in the electronic database is
300	conclusive for purposes of this chapter. The electronic database
301	is not an order, a rule, or a policy of general applicability.
302	4. Each annual database must identify the additions,
303	deletions, and other changes to the preceding version of the
304	database.
305	(3)(a) As used in this section, the term "due diligence"
306	means the care and attention that is expected from and is
307	ordinarily exercised by a reasonable and prudent person under
308	the circumstances.
309	(b) Notwithstanding any law to the contrary, an insurance
310	company is exercising due diligence if the insurance company
311	complies with the provisions of paragraph (1)(b) or if the
312	insurance company assigns an insured's premium to local taxing
313	jurisdictions in accordance with the Department of Revenue's
314	annual database and:
315	1. Expends reasonable resources to accurately and reliably
316	implement such method;
317	2. Maintains adequate internal controls to correctly
318	include in its database of policyholders the location of the
319	property insured, in the proper address format, so that matching
320	with the department's database is accurate; and
321	3. Corrects errors in the assignment of addresses to local
322	taxing jurisdictions within 120 days after the insurance company
323	discovers the errors.
324	(4) There is annually appropriated from the moneys
325	collected under this chapter and deposited in the Police and
326	Firefighter's Premium Tax Trust Fund an amount sufficient to pay
327	the expenses of the Department of Revenue in administering this
328	section, but not to exceed $50,000 annually, adjusted annually
329	by the lesser of a 5-percent increase or the percentage of
330	growth in the total collections.
331	(5) The Department of Revenue shall adopt rules necessary
332	to administer this section, including rules establishing
333	procedures and forms.
334	(6)(a) Notwithstanding any other provision of law, no
335	methodology, formula, or database that is adopted in any year
336	after January 1, 2004, may result in a distribution to a
337	participating municipality that has a retirement plan created
338	pursuant to this chapter of an amount of excise tax which is
339	less than the amount distributed to such participating
340	municipality for calendar year 2003. However, if the total
341	proceeds to be distributed for the current year from the excise
342	tax imposed under s. 185.08 are less than the total amount
343	distributed for calendar year 2003, each participating
344	municipality shall receive a current year distribution that is
345	proportionate to its share of the total 2003 calendar year
346	distribution. If the total proceeds to be distributed for the
347	current year from the excise tax imposed under s. 185.08 are
348	greater than or equal to the total amount distributed for
349	calendar year 2003, each participating municipality shall
350	initially be distributed a minimum amount equal to the amount
351	received for calendar year 2003. The remaining amount to be
352	distributed for the current year, which equals the total to be
353	distributed for the current year less minimum distribution
354	amount shall be distributed to those municipalities with a
355	current-year reported amount that is greater than the amount
356	distributed to such municipality for calendar year 2003. Each
357	municipality eligible for distribution of this remaining amount
358	shall receive its proportionate share of the remaining amount
359	based upon the amount reported for that municipality, above the
360	calendar year 2003 distribution for the current year, to the
361	total amount over the calendar year 2003 distribution for all
362	municipalities with a current year reported amount that is
363	greater than the calendar year 2003 distribution.
364	(b) If a new municipality elects to participate under this
365	chapter during any year after January 1, 2004, such municipality
366	shall receive the total amount reported for the current year for
367	such municipality. All other participating municipalities shall
368	receive a current year distribution, calculated as provided in
369	this section, which is proportionate to their share of the total
370	2003 calendar year distribution after subtracting the amount
371	paid to the new participating plans.
372	(c) This subsection expires January 1, 2007.
373	(7) Any insurer that is obligated to collect and remit the
374	tax on casualty insurance imposed under s. 185.08 shall be held
375	harmless from liability, including, but not limited to, any tax,
376	interest, or penalties, which would otherwise be due solely as a
377	result of an assignment of an insured risk to an incorrect local
378	taxing jurisdiction, based on the collection and remission of
379	the tax accruing before January 1, 2004, provided the insurer
380	collects and reports this tax consistent with filings for
381	periods before January 1, 2004. Further, any insurer that is
382	obligated to collect and remit the tax on casualty insurance
383	imposed under this section shall not be subject to an
384	examination under s. 624.316 or s. 624.3161 which would occur
385	solely as a result of an assignment of an insured risk to an
386	incorrect local taxing jurisdiction, based on the collection and
387	remission of such tax accruing before January 1, 2004.
388	Section 4. Subsection (1) of section 185.35, Florida
389	Statutes, is amended to read:
390	185.35 Municipalities having their own pension plans for
391	police officers.--For any municipality, chapter plan, local law
392	municipality, or local law plan under this chapter, in order for
393	municipalities with their own pension plans for police officers,
394	or for police officers and firefighters where included, to
395	participate in the distribution of the tax fund established
396	pursuant to s. 185.08, local law plans must meet the minimum
397	benefits and minimum standards set forth in this chapter:
398	(1) PREMIUM TAX INCOME.--If a municipality has a pension
399	plan for police officers, or for police officers and
400	firefighters where included, which, in the opinion of the
401	division, meets the minimum benefits and minimum standards set
402	forth in this chapter, the board of trustees of the pension
403	plan, as approved by a majority of police officers of the
404	municipality, may:
405	(a) Place the income from the premium tax in s. 185.08 in
406	such pension plan for the sole and exclusive use of its police
407	officers, or its police officers and firefighters where
408	included, where it shall become an integral part of that pension
409	plan and shall be used to pay extra benefits to the police
410	officers included in that pension plan; or
411	(b) May place the income from the premium tax in s. 185.08
412	in a separate supplemental plan to pay extra benefits to the
413	police officers, or police officers and firefighters where
414	included, participating in such separate supplemental plan.
415
416	The premium tax provided by this chapter shall in all cases be
417	used in its entirety to provide extra benefits to police
418	officers, or to police officers and firefighters, where
419	included. However, local law plans in effect on October 1, 1998,
420	shall be required to comply with the minimum benefit provisions
421	of this chapter only to the extent that additional premium tax
422	revenues become available to incrementally fund the cost of such
423	compliance as provided in s. 185.16(2). When a plan is in
424	compliance with such minimum benefit provisions, as subsequent
425	additional tax revenues become available, they shall be used to
426	provide extra benefits. For the purpose of this chapter,
427	"additional premium tax revenues" means revenues received by a
428	municipality pursuant to s. 185.10 that exceed the amount
429	received for calendar year 1997 and the term "extra benefits"
430	means benefits in addition to or greater than those provided to
431	general employees of the municipalityand in addition to those
432	in existence for police officers on March 12, 1999. Local law
433	plans created by special act before May 23, 1939, shall be
434	deemed to comply with this chapter.
435	Section 5.The sum of $300,000 is appropriated from the
436	General Revenue Fund to the Department of Revenue for the one-
437	time expense of creating the original database called for by ss.
438	175.1015 and 185.085, Florida Statutes, as created by this act,
439	and to begin the implementation process for use of the database.
440	It is the intent of the Legislature in providing this
441	appropriation that the database for ss. 175.1015 and 185.085,
442	Florida Statutes, as created by this act, be available for use
443	in determining the allocation of premiums to the various
444	municipalities and special fire control districts for the 2004
445	insurance premium tax return that is due by March 1, 2005.
446	Section 6. This act shall take effect January 1, 2004.
447