Florida Senate - 2019 SB 594 By Senator Hutson 7-00568A-19 2019594__ 1 A bill to be entitled 2 An act relating to state shared revenues; creating s. 3 16.63, F.S.; requiring the Attorney General, at the 4 request of one or more members of the Legislature, to 5 investigate whether a certain official action of the 6 governing body of a county or municipality violated 7 state law or the State Constitution; requiring the 8 Attorney General to report his or her findings and 9 conclusions to the Governor, the Legislature, and the 10 Secretary of State; providing requirements if no 11 violation is found; requiring the Attorney General to 12 initiate a civil action for specified relief in the 13 appropriate circuit court against the county or 14 municipality if it finds a violation occurred or is 15 likely to have occurred; requiring, if the circuit 16 court issues an order finding a violation, the 17 governing body of the subject county or municipality 18 timely remedy the violation as provided in the order; 19 authorizing the county or municipality to seek 20 judicial review and a stay of the order; requiring the 21 Attorney General to petition for, and the circuit 22 court to issue, an order directing the Department of 23 Revenue to withhold the share of revenues apportioned 24 to the county or municipality under the Revenue 25 Sharing Act of 1972 and from local government half 26 cent sales tax proceeds if the county or municipality 27 fails to timely comply with the order; providing an 28 exception; authorizing the county or municipality to 29 petition the court for an order to restore amounts 30 withheld under certain circumstances; amending s. 31 218.23, F.S.; specifying requirements for the 32 department in redistributing Revenue Sharing Act of 33 1972 moneys withheld from a county or municipality; 34 amending s. 218.26, F.S.; conforming provisions to 35 changes made by the act; amending s. 218.63, F.S.; 36 specifying requirements for the department in 37 redistributing local government half-cent sales tax 38 moneys withheld from a county or municipality; 39 providing an effective date. 40 41 Be It Enacted by the Legislature of the State of Florida: 42 43 Section 1. Section 16.63, Florida Statutes, is created to 44 read: 45 16.63 Investigation of certain county or municipality 46 official actions for state law or State Constitution violations; 47 process; withholding of certain shared revenues.— 48 (1) At the request of one or more members of the 49 Legislature, the Attorney General shall investigate any 50 ordinance, regulation, order, or other official action adopted 51 or taken by the governing body of a county or municipality which 52 impacts commerce and which the member or members allege violates 53 state law or the State Constitution. 54 (2) Within 30 days after receipt of the request, the 55 Attorney General shall make a written report of findings and 56 conclusions from the investigation and provide a copy of the 57 report to the Governor, the President of the Senate, the Speaker 58 of the House of Representatives, the member or members 59 requesting the investigation, and the Secretary of State. If the 60 Attorney General finds that the official action of the county or 61 municipality did not violate state law or the State 62 Constitution, he or she must close the investigation and may not 63 take further action. 64 (3) If the Attorney General finds that a violation under 65 this section occurred or likely occurred, he or she must 66 initiate a civil action for declaratory or injunctive relief in 67 the circuit court in the circuit in which the county or 68 municipality is located. 69 (4) If the circuit court issues an order finding that a 70 violation of this section occurred, the governing body of the 71 subject county or municipality must remedy the violation within 72 30 days as directed by the order. The county or municipality may 73 seek judicial review and a stay of the order in the district 74 court of appeal having jurisdiction over the circuit court. 75 (5)(a) If the governing body fails to timely remedy the 76 violation as directed by the order or timely appeal the order, 77 the Attorney General shall petition for, and the circuit court 78 shall issue, an order directing the Department of Revenue to 79 withhold the share of revenues apportioned to the county or 80 municipality under parts II and VI of chapter 218. However, if 81 the governing body certifies to the circuit court that any 82 amount withheld is necessary to make any required deposits or 83 payments for debt service on bonds or other long-term 84 obligations of the county or municipality which were issued or 85 incurred before the violation was committed, the order must 86 exempt such amount from the withholding. 87 (b) Upon receiving an order issued under paragraph (a) to 88 withhold a share of revenues apportioned to a county or 89 municipality, the Department of Revenue shall withhold and 90 redistribute state shared revenues as provided in ss. 218.23(5) 91 and 218.63(4). 92 (c) After complying with the order to remedy the violation, 93 the governing body of the county or municipality may petition 94 the circuit court for an order to restore the amounts withheld 95 from the county or municipality. 96 Section 2. Section 218.23, Florida Statutes, is amended to 97 read: 98 218.23 Revenue sharing with units of local government; 99 withholding.— 100 (1) To be eligible to participate in revenue sharing beyond 101 the minimum entitlement in any fiscal year, a unit of local 102 government is required to have: 103 (a) Reported its finances for its most recently completed 104 fiscal year to the Department of Financial Services, pursuant to 105 s. 218.32. 106 (b) Made provisions for annual postaudits of its financial 107 accounts in accordance with provisions of law. 108 (c) Levied, as shown on its most recent financial report 109 pursuant to s. 218.32, ad valorem taxes, exclusive of taxes 110 levied for debt service or other special millages authorized by 111 the voters, to produce the revenue equivalent to a millage rate 112 of 3 mills on the dollar based on the 1973 taxable values as 113 certified by the property appraiser pursuant to s. 193.122(2) 114 or, in order to produce revenue equivalent to that which would 115 otherwise be produced by such 3-mill ad valorem tax, to have 116 received a remittance from the county pursuant to s. 117 125.01(6)(a), collected an occupational license tax or a utility 118 tax, levied an ad valorem tax, or received revenue from any 119 combination of these four sources. If a new municipality is 120 incorporated, the provisions of this paragraph shall apply to 121 the taxable values for the year of incorporation as certified by 122 the property appraiser. This paragraph requires only a minimum 123 amount of revenue to be raised from the ad valorem tax, the 124 occupational license tax, and the utility tax. It does not 125 require a minimum millage rate. 126 (d) Certified that persons in its employ as law enforcement 127 officers, as defined in s. 943.10(1), meet the qualifications 128 for employment as established by the Criminal Justice Standards 129 and Training Commission; that its salary structure and salary 130 plans meet the provisions of chapter 943; and that no law 131 enforcement officer is compensated for his or her services at an 132 annual salary rate of less than $6,000. However, the department 133 may waive the minimum law enforcement officer salary requirement 134 if a city or county certifies that it is levying ad valorem 135 taxes at 10 mills. 136 (e) Certified that persons in its employ as firefighters, 137 as defined in s. 633.102, meet the qualification for employment 138 as established by the Division of State Fire Marshal pursuant to 139 ss. 633.408 and 633.412 and that s. 633.422 has been met. 140 (f) Certified that each dependent special district that is 141 budgeted separately from the general budget of the local 142 governing authority has met the provisions for annual postaudit 143 of its financial accounts in accordance with the provisions of 144 law. 145 146 Additionally, to receive its share of revenue sharing funds, a 147 unit of local government shall certify to the Department of 148 Revenue that the requirements of s. 200.065, if applicable, were 149 met. The certification shall be made annually within 30 days 150 after
ofadoption of an ordinance or resolution establishing a 151 final property tax levy or, if no property tax is levied, not 152 later than November 1. The portion of revenue sharing funds 153 which, pursuant to this part, would otherwise be distributed to 154 a unit of local government which has not certified compliance or 155 has otherwise failed to meet the requirements of s. 200.065 156 shall be deposited in the General Revenue Fund for the 12 months 157 after followinga determination of noncompliance by the 158 department. 159 (2) Any unit of local government which is consolidated as 160 provided by s. 9, Art. VIII of the State Constitution of 1885, 161 as preserved by s. 6(e), Art. VIII, 1968 revised constitution, 162 shall receive an annual distribution from the Revenue Sharing 163 Trust Fund for Counties equal to $6.24 times its population. 164 (3) The distribution to a unit of local government under 165 this part is determined by the following formula: 166 (a) First, the entitlement of an eligible unit of local 167 government shall be computed on the basis of the apportionment 168 factor provided in s. 218.245, which shall be applied for all 169 eligible units of local government to all receipts available for 170 distribution in the respective revenue sharing trust fund. 171 (b) Second, revenue shared with eligible units of local 172 government for any fiscal year shall be adjusted so that no 173 eligible unit of local government receives less funds than its 174 guaranteed entitlement. 175 (c) Third, revenues shared with counties for any fiscal 176 year shall be adjusted so that no county receives less funds 177 than its guaranteed entitlement plus the second guaranteed 178 entitlement for counties. 179 (d) Fourth, revenue shared with units of local government 180 for any fiscal year shall be adjusted so that no unit of local 181 government receives less funds than its minimum entitlement. 182 (e) Fifth, after the adjustments provided in paragraphs 183 (b), (c), and (d), and after deducting the amount committed to 184 all the units of local government, the funds remaining in the 185 respective trust funds shall be distributed to those eligible 186 units of local government which qualify to receive additional 187 moneys beyond the guaranteed entitlement, on the basis of the 188 additional money of each qualified unit of local government in 189 proportion to the total additional money of all qualified units 190 of local government. 191 (4) Notwithstanding the provisions of paragraph (1)(c), no 192 unit of local government which was eligible to participate in 193 revenue sharing in the 3 years before prior toinitially 194 participating in the local government half-cent sales tax shall 195 be ineligible to participate in revenue sharing solely due to a 196 millage or utility tax reduction afforded by the local 197 government half-cent sales tax. 198 (5) Notwithstanding any provision to the contrary, a unit 199 of local government which is subject to an order withholding an 200 entitlement to shared revenues under s. 16.63(5) is ineligible 201 to participate in revenue sharing under this part, except as 202 otherwise provided in s. 16.63(5)(a), until its eligibility is 203 restored by an order issued under s. 16.63(5)(c). The department 204 shall redistribute the moneys withheld as follows: 205 (a) If the unit of local government is a county, by 206 redistributing its entitlement among all other eligible counties 207 according to the apportionment factor under s. 218.245(1). 208 (b) If the unit of local government is a municipality, by 209 redistributing its entitlement among all other eligible 210 municipalities according to the apportionment factor under s. 211 218.245(2). 212 Section 3. Subsection (3) of section 218.26, Florida 213 Statutes, is amended to read: 214 218.26 Administration; distribution schedule.— 215 (3)(a) Except as provided under s. 218.23(5), the 216 department shall compute the apportionment factors once each 217 fiscal year for use during the fiscal year. The computation 218 shall be made before prior toJuly 25 of each fiscal year and 219 must shallbe based upon information submitted and certified to 220 the department before prior toJune 1 of each year. 221 (b) Except in the case of error and except as provided 222 under s. 218.23(5), the apportionment factors must shall, except223 in the case of error,remain in effect for the fiscal year. 224 Section 4. Section 218.63, Florida Statutes, is amended to 225 read: 226 218.63 Participation requirements; withholding.— 227 (1) Only those units of local government which meet the 228 eligibility requirements for revenue sharing pursuant to s. 229 218.23 shall participate in the local government half-cent sales 230 tax. However, a municipality incorporated subsequent to the 231 effective date of chapter 82-154, Laws of Florida, which does 232 not meet the applicable criteria for incorporation pursuant to 233 s. 165.061 shall not participate in the local government half 234 cent sales tax. In either case, distributions to eligible units 235 of local government in that county shall be made as though the 236 nonparticipating municipality had not incorporated. 237 (2) The moneys which otherwise would be distributed 238 pursuant to this part to a unit of local government failing to 239 certify compliance as required by s. 218.23(1) or having 240 otherwise failed to meet the requirements of s. 200.065 shall be 241 deposited in the General Revenue Fund for the 12 months 242 following a determination of noncompliance by the department. 243 (3) A county or municipality may not participate in the 244 distribution of local government half-cent sales tax revenues 245 during the 12 months following a determination of noncompliance 246 by the Department of Revenue as provided in s. 200.065(13)(e). 247 (4) Notwithstanding any provision to the contrary, a unit 248 of local government which is subject to an order withholding an 249 entitlement to shared revenues issued under s. 16.63(5) is 250 ineligible to participate in revenue sharing under this part, 251 except as otherwise provided in s. 16.63(5)(a), until its 252 eligibility is restored by an order issued under s. 16.63(5)(c). 253 The department shall redistribute the moneys withheld as 254 follows: 255 (a) If the unit of local government is a county, by 256 redistributing its portion among all other eligible county 257 governments according to the distribution formula under s. 258 218.62(2). 259 (b) If the unit of local government is a municipality, by 260 redistributing its portion among all other eligible municipal 261 governments according to the distribution formula under s. 262 218.62(3). 263 Section 5. This act shall take effect July 1, 2019.