HB 1521CS

CHAMBER ACTION



1The Fiscal Council recommends the following:
2
3     Council/Committee Substitute
4     Remove the entire bill and insert:
5
A bill to be entitled
6An act relating to community redevelopment agencies;
7amending s. 163.387, F.S.; revising provisions relating to
8the funding of redevelopment trust funds applicable to
9certain community redevelopment agencies; authorizing
10alternative tax increment financing arrangements by
11interlocal agreement between certain municipalities or
12community redevelopment agencies and counties; amending s.
13163.415, F.S.; exempting counties without home rule
14charters from tax increment financing contribution
15requirements without an interlocal agreement between the
16municipality creating the community redevelopment agency
17or the community redevelopment agency, whichever is
18applicable, and the county; providing restrictions on
19certain community redevelopment agencies without an
20interlocal agreement; authorizing alternative tax
21increment funding arrangements; providing an effective
22date.
23
24Be It Enacted by the Legislature of the State of Florida:
25
26     Section 1.  Section 163.387, Florida Statutes, is amended
27to read:
28     163.387  Redevelopment trust fund.--
29     (1)(a)  After approval of a community redevelopment plan,
30there shall be established for each community redevelopment
31agency created under s. 163.356 a redevelopment trust fund.
32Funds allocated to and deposited into this fund shall be used by
33the agency to finance or refinance any community redevelopment
34it undertakes pursuant to the approved community redevelopment
35plan. No community redevelopment agency may receive or spend any
36increment revenues pursuant to this section unless and until the
37governing body has, by ordinance, provided for the funding of
38the redevelopment trust fund for the duration of a community
39redevelopment plan. Such ordinance may be adopted only after the
40governing body has approved a community redevelopment plan. The
41annual funding of the redevelopment trust fund shall be in an
42amount not less than that increment in the income, proceeds,
43revenues, and funds of each taxing authority derived from or
44held in connection with the undertaking and carrying out of
45community redevelopment under this part. Such increment shall be
46determined annually and shall be that amount equal to 95 percent
47of the difference between:
48     1.(a)  The amount of ad valorem taxes levied each year by
49each taxing authority, exclusive of any amount from any debt
50service millage, on taxable real property contained within the
51geographic boundaries of a community redevelopment area; and
52     2.(b)  The amount of ad valorem taxes which would have been
53produced by the rate upon which the tax is levied each year by
54or for each taxing authority, exclusive of any debt service
55millage, upon the total of the assessed value of the taxable
56real property in the community redevelopment area as shown upon
57the most recent assessment roll used in connection with the
58taxation of such property by each taxing authority prior to the
59effective date of the ordinance providing for the funding of the
60trust fund.
61
62However, the governing body of any county as defined in s.
63125.011(1) may, in the ordinance providing for the funding of a
64trust fund established with respect to any community
65redevelopment area created on or after July 1, 1994, determine
66that the amount to be funded by each taxing authority annually
67shall be less than 95 percent of the difference between
68subparagraphs 1. and 2. paragraphs (a) and (b), but in no event
69shall such amount be less than 50 percent of such difference.
70     (b)  Beginning July 1, 2008, for any community
71redevelopment agency that is not subject to an interlocal
72agreement as specified under subsection (4), the amount of
73increment revenue shall be as specified in paragraph (a) until
74one of the following events occurs:
75     1.  The 20th year in the life of the community
76redevelopment agency, or July 1, 2008, if the 20th year is
77reached prior to July 1, 2008;
78     2.  The amount of ad valorem taxes levied each year by the
79county, exclusive of any amount from any debt service millage,
80on taxable real property contained within the geographic
81boundaries of a community redevelopment area equals twice the
82amount of ad valorem taxes which would have been produced by the
83rate upon which the tax is levied each year by the county,
84exclusive of any debt service millage, upon the total of the
85assessed value of the taxable real property in the community
86redevelopment area as shown upon the most recent assessment roll
87used in connection with the taxation of such property by the
88county prior to the effective date of the ordinance providing
89for the funding of the redevelopment trust fund. If the
90provisions of this subparagraph have been met prior to July 1,
912008, the event shall be considered to occur on July 1, 2008; or
92     3.  The county commission calls a countywide referendum, to
93be conducted by the county supervisor of elections in
94conjunction with a general or special election, to pose the
95following question to registered voters of the county: "Should
96the county continue to contribute an increasing amount to the
97[insert name of the community redevelopment agency] each year?"
98If a majority of electors voting in the election cast an
99affirmative vote, the increment revenue shall continue to be
100calculated as specified in paragraph (a). If a majority of
101electors voting in the election cast a negative vote, the
102increment revenue shall be subject to the interlocal agreement
103requirements of this paragraph. Any such referendum shall not be
104conducted earlier than the 5th year in the life of the community
105redevelopment agency.
106
107If an event specified in subparagraph 1., subparagraph 2., or
108subparagraph 3. occurs, any subsequent increment revenue shall
109be as specified in an interlocal agreement as provided in
110subsection (4), but shall not be less than the increment revenue
111contributed by the county prior to the occurrence of the event.
112However, in the absence of an interlocal agreement, the amount
113of increment revenue contributed by the county shall be no less
114than the amount of increment revenue contributed prior to the
115occurrence of the event. Under no circumstance may the amount of
116increment revenue paid by the county be reduced so as to impair
117any bond, note, or other form of indebtedness issued by a
118community redevelopment agency prior to July 1, 2005, and to
119which increment revenue is pledged.
120     (c)  Notwithstanding any other provision of law to the
121contrary, paragraph (b) shall not apply to a community
122redevelopment agency created by a municipality pursuant to
123authority delegated under s. 163.410 by a county that has
124adopted a home rule charter.
125     (2)(a)  Except for the purpose of funding the trust fund
126pursuant to subsection (3), upon the adoption of an ordinance
127providing for funding of the redevelopment trust fund as
128provided in this section, each taxing authority shall, by
129January 1 of each year, appropriate to the trust fund for so
130long as any indebtedness pledging increment revenues to the
131payment thereof is outstanding (but not to exceed 30 years) a
132sum that is no less than the increment as defined and determined
133in subsection (1) or subsection (4) accruing to such taxing
134authority. If the community redevelopment plan is amended or
135modified pursuant to s. 163.361(1), each such taxing authority
136shall make the annual appropriation for a period not to exceed
13730 years after the date the governing body amends the plan.
138However, for any agency created on or after July 1, 2002, each
139taxing authority shall make the annual appropriation for a
140period not to exceed 40 years after the fiscal year in which the
141initial community redevelopment plan is approved or adopted.
142     (b)  Any taxing authority that does not pay the increment
143to the trust fund by January 1 shall pay to the trust fund an
144amount equal to 5 percent of the amount of the increment and
145shall pay interest on the amount of the increment equal to 1
146percent for each month the increment is outstanding.
147     (c)  The following public bodies or taxing authorities are
148exempt from paragraph (a):
149     1.  A special district that levies ad valorem taxes on
150taxable real property in more than one county.
151     2.  A special district for which the sole available source
152of revenue the district has the authority to levy is ad valorem
153taxes at the time an ordinance is adopted under this section.
154However, revenues or aid that may be dispensed or appropriated
155to a district as defined in s. 388.011 at the discretion of an
156entity other than such district shall not be deemed available.
157     3.  A library district, except a library district in a
158jurisdiction where the community redevelopment agency had
159validated bonds as of April 30, 1984.
160     4.  A neighborhood improvement district created under the
161Safe Neighborhoods Act.
162     5.  A metropolitan transportation authority.
163     6.  A water management district created under s. 373.069.
164     (d)1.  A local governing body that creates a community
165redevelopment agency under s. 163.356 may exempt from paragraph
166(a) a special district that levies ad valorem taxes within that
167community redevelopment area. The local governing body may grant
168the exemption either in its sole discretion or in response to
169the request of the special district. The local governing body
170must establish procedures by which a special district may submit
171a written request to be exempted from paragraph (a).
172     2.  In deciding whether to deny or grant a special
173district's request for exemption from paragraph (a), the local
174governing body must consider:
175     a.  Any additional revenue sources of the community
176redevelopment agency which could be used in lieu of the special
177district's tax increment.
178     b.  The fiscal and operational impact on the community
179redevelopment agency.
180     c.  The fiscal and operational impact on the special
181district.
182     d.  The benefit to the specific purpose for which the
183special district was created. The benefit to the special
184district must be based on specific projects contained in the
185approved community redevelopment plan for the designated
186community redevelopment area.
187     e.  The impact of the exemption on incurred debt and
188whether such exemption will impair any outstanding bonds that
189have pledged tax increment revenues to the repayment of the
190bonds.
191     f.  The benefit of the activities of the special district
192to the approved community redevelopment plan.
193     g.  The benefit of the activities of the special district
194to the area of operation of the local governing body that
195created the community redevelopment agency.
196     3.  The local governing body must hold a public hearing on
197a special district's request for exemption after public notice
198of the hearing is published in a newspaper having a general
199circulation in the county or municipality that created the
200community redevelopment area. The notice must describe the time,
201date, place, and purpose of the hearing and must identify
202generally the community redevelopment area covered by the plan
203and the impact of the plan on the special district that
204requested the exemption.
205     4.  If a local governing body grants an exemption to a
206special district under this paragraph, the local governing body
207and the special district must enter into an interlocal agreement
208that establishes the conditions of the exemption, including, but
209not limited to, the period of time for which the exemption is
210granted.
211     5.  If a local governing body denies a request for
212exemption by a special district, the local governing body shall
213provide the special district with a written analysis specifying
214the rationale for such denial. This written analysis must
215include, but is not limited to, the following information:
216     a.  A separate, detailed examination of each consideration
217listed in subparagraph 2.
218     b.  Specific examples of how the approved community
219redevelopment plan will benefit, and has already benefited, the
220purpose for which the special district was created.
221     6.  The decision to either deny or grant an exemption must
222be made by the local governing body within 120 days after the
223date the written request was submitted to the local governing
224body pursuant to the procedures established by such local
225governing body.
226     (3)  Notwithstanding the provisions of subsection (2), the
227obligation of the governing body which established the community
228redevelopment agency to fund the redevelopment trust fund
229annually shall continue until all loans, advances, and
230indebtedness, if any, and interest thereon, of a community
231redevelopment agency incurred as a result of redevelopment in a
232community redevelopment area have been paid.
233     (4)  Notwithstanding the provisions of subsections (1) and
234(2), alternative tax increment financing arrangements, including
235tax increment contributions other than those specified in
236subsection (1), may be established by interlocal agreements
237between a municipality that creates a community redevelopment
238agency or the community redevelopment agency, whichever is
239applicable, and the county within which the municipality is
240located. Such interlocal agreements shall include provisions
241applicable to the municipality and the county regarding the tax
242increment financing method and the contribution requirements to
243the redevelopment trust fund.
244     (5)(4)  The revenue bonds and notes of every issue under
245this part are payable solely out of revenues pledged to and
246received by a community redevelopment agency and deposited to
247its redevelopment trust fund. The lien created by such bonds or
248notes shall not attach until the revenues referred to herein are
249deposited in the redevelopment trust fund at the times, and to
250the extent that, such revenues accrue. The holders of such bonds
251or notes have no right to require the imposition of any tax or
252the establishment of any rate of taxation in order to obtain the
253amounts necessary to pay and retire such bonds or notes.
254     (6)(5)  Revenue bonds issued under the provisions of this
255part shall not be deemed to constitute a debt, liability, or
256obligation of the local governing body or the state or any
257political subdivision thereof, or a pledge of the faith and
258credit of the local governing body or the state or any political
259subdivision thereof, but shall be payable solely from the
260revenues provided therefor. All such revenue bonds shall contain
261on the face thereof a statement to the effect that the agency
262shall not be obligated to pay the same or the interest thereon
263except from the revenues of the community redevelopment agency
264held for that purpose and that neither the faith and credit nor
265the taxing power of the local governing body or of the state or
266of any political subdivision thereof is pledged to the payment
267of the principal of, or the interest on, such bonds.
268     (7)(6)  Moneys in the redevelopment trust fund may be
269expended from time to time for undertakings of a community
270redevelopment agency which are directly related to financing or
271refinancing of redevelopment in a community redevelopment area
272pursuant to an approved community redevelopment plan for the
273following purposes, including, but not limited to:
274     (a)  Administrative and overhead expenses necessary or
275incidental to the implementation of a community redevelopment
276plan adopted by the agency.
277     (b)  Expenses of redevelopment planning, surveys, and
278financial analysis, including the reimbursement of the governing
279body or the community redevelopment agency for such expenses
280incurred before the redevelopment plan was approved and adopted.
281     (c)  The acquisition of real property in the redevelopment
282area.
283     (d)  The clearance and preparation of any redevelopment
284area for redevelopment and relocation of site occupants as
285provided in s. 163.370.
286     (e)  The repayment of principal and interest or any
287redemption premium for loans, advances, bonds, bond anticipation
288notes, and any other form of indebtedness.
289     (f)  All expenses incidental to or connected with the
290issuance, sale, redemption, retirement, or purchase of agency
291bonds, bond anticipation notes, or other form of indebtedness,
292including funding of any reserve, redemption, or other fund or
293account provided for in the ordinance or resolution authorizing
294such bonds, notes, or other form of indebtedness.
295     (g)  The development of affordable housing within the area.
296     (h)  The development of community policing innovations.
297     (8)(7)  On the last day of the fiscal year of the community
298redevelopment agency, any money which remains in the trust fund
299after the payment of expenses pursuant to subsection (7)(6) for
300such year shall be:
301     (a)  Returned to each taxing authority which paid the
302increment in the proportion that the amount of the payment of
303such taxing authority bears to the total amount paid into the
304trust fund by all taxing authorities within the redevelopment
305area for that year;
306     (b)  Used to reduce the amount of any indebtedness to which
307increment revenues are pledged;
308     (c)  Deposited into an escrow account for the purpose of
309later reducing any indebtedness to which increment revenues are
310pledged; or
311     (d)  Appropriated to a specific redevelopment project
312pursuant to an approved community redevelopment plan which
313project will be completed within 3 years from the date of such
314appropriation.
315     (9)(8)  Each community redevelopment agency shall provide
316for an independent financial audit of the trust fund each fiscal
317year and a report of such audit. Such report shall describe the
318amount and source of deposits into, and the amount and purpose
319of withdrawals from, the trust fund during such fiscal year and
320the amount of principal and interest paid during such year on
321any indebtedness to which is pledged increment revenues and the
322remaining amount of such indebtedness. The agency shall provide
323a copy of the report to each taxing authority.
324     Section 2.  Section 163.415, Florida Statutes, is amended
325to read:
326     163.415  Exercise of powers in counties without home rule
327charters.--
328     (1)  The powers conferred by this part upon counties not
329having adopted a home rule charter shall not be exercised within
330the boundaries of a municipality within said county unless the
331governing body of the municipality expresses its consent by
332resolution. Such a resolution consenting to the exercise of the
333powers conferred upon counties by this part shall specifically
334enumerate the powers to be exercised by the county within the
335boundaries of the municipality. Any power not specifically
336enumerated in such a resolution of consent shall be exercised
337exclusively by the municipality within its boundaries.
338     (2)  With respect to a community redevelopment agency
339created by a municipality on or after July 1, 2005, in a county
340that has not adopted a home rule charter, the county shall not
341be required to contribute increment revenue if the county and
342the municipality have not executed an interlocal agreement
343governing the operations and financing of the community
344redevelopment agency. The interlocal agreement may establish tax
345increment financing arrangements as specified in s. 163.387(4).
346     (3)  With respect to a community redevelopment agency
347created by a municipality prior to July 1, 2005, in a county
348that had not adopted a home rule charter on the date the
349community redevelopment agency was created, the community
350redevelopment agency or municipality shall not take any action
351that may result in an increase in the length of time the county
352will contribute increment revenue to the redevelopment trust
353fund or an increase of the increment revenue contributed by the
354county, including, but not limited to, actions that may expand
355the boundaries of the community redevelopment agency, provide
356for the issuance of new debt, or modify existing debt service or
357other financing arrangements involving tax increment financing,
358unless an interlocal agreement between the county and the
359municipality or the community redevelopment agency, whichever is
360applicable, is first executed to govern actions that may result
361in an increase in the length of time the county will contribute
362increment revenue to the redevelopment trust fund or an increase
363of the increment revenue contributed by the county. The
364interlocal agreement may establish tax increment financing
365arrangements as specified in s. 163.387.
366     Section 3.  This act shall take effect July 1, 2005.


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