HJR 7221

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

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