Florida Information Associates

Florida Legislature C/�-30S Staff Analyses

1992 Sessions

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1992 Session Law Number

S 154-H GENERAL BILL/CS/2ND ENG by Finance, Taxation and Claims; Kirkpatrick; (CO-SPONSORS) Johnson; Gardner; Casas (Similar 1ST ENG/H 99-H) Pub)jc Libraries; provides for multicounty libraries rather than regional libraries; revises provisions re state grants to libraries; provides for use of funds & compu­tation & adjustment of grants; revises provisions re computation of equalization grants; provides procedures in event of revenue shortfalls. Amends 257.171,.172,.18; creates 257.195. Effective Date: 07/06/92 except as otherwise provided. 05/28/92 SENA TE 06/01/92 SENATE

06/02/92 SENATE

06/03/92 SENATE

06/08/92 .SENA TE

06/10/92 SENATE

06/16/92 SENATE

06/17/92 SENATE 06/18/92 SENATE

06/18/92 HOUSE 06/24/92 HOUSE

Prefiled Introduced, referred to Governmental Operations; Fi-nance, Taxation and Claims; Appropriations -SJ 00018 On Committee agenda-Governmental Operations, 06/03/92, 9:00 am, Room-1(309C) Comm. Actio,;.: Favorable by Governmental Operations -SJ 00058; Now in Finance, Taxation and Claims-SJ 00058 On Committee agenda-Finance, Taxation and Claims, 06/08/92, 2:00 pm, Room-A(LL-37); Comm. Action: CS by Finance, Taxation and Claims -SJ 00079 CS read first time on 06/10/92 -SJ 00087; Now in Appropri­ations -SJ 00079 Withdrawn from Appropriations -SJ 00120; Placed on Cal­endar Placed on Special Order Calendar -SJ 00187 i Placed on Special Order Calendar -SJ 00128, -SJ 00213; Amendment(s) adopted -SJ 00200; CS passed as amended; YEAS 22 NAYS O -SJ 00201, -SJ 00216 In Messages Received, placed on Calendar -HJ 00412; Read second time; Amendment(s) adopted -HJ 00412; Read third time; CS passed as amended; YEAS 97 NAYS 2 -HJ 00413

06/24/92 SENA TE In returning messages 06/25/92 SENA TE Concurred -SJ 00457; CS passed as amended; YEAS 36

NAYS 0 -SJ 00457, -SJ 00465; Ordered engrossed, then en­rolled -SJ 00457

06/29/92 Signed by Officers and presented to Governor -SJ 00487 07/06/92 Approved by Governor; Chapter No. 92-305

NOTES: Above bill history from Division of Legislative Information's FINAL LEGISLA­

TIVE BILL INFORlfATION, 1992 SESSIONS. Staff Analyses for bills amended beyond

final committee action may not be in accordance with the enacted law. Journal page

numbers (HJ & SJ) refer to daily Journals and may not be the same as final bound

Journals.

REVISED: BILL NO. CS/SB 154H

Page DATE: June 8, 1992

SENATE STAFF ANALYSIS AND ECONOMIC IMPACT STATEMENT

ANALYST STAFF DIRECTOR ACTION

1. Tinney 2. Fourniert.:Z3.

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REFERENCE

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SUBJECT: BILL NO. AND SPONSOR:

State Aid to Public Libraries

I. SUMMARY:

A. Present Situation:

CS/SB 154H by Fin., Tax & Claimsand Senator kirkpatrick, et al.

The State Library is established by s. 257.01, F.S., in the Division of Library and Information Services of the Departmentof State, and is assigned by law to maintain and provide research and information services for all state agencies. The State Librarian is appointed by the Secretary of State pursuantto the requirements in s. 257,031, F.S. The State Librarian also serves as director of the Division of Library and Information Services.

The law directs the division to give aid and assistance as needed -- whether financial, advisory, or otherwise -- to all public school, state institutional, academic, free, and publiclibraries in the state, and to communities proposing to establish libraries. In addition, the division is authorized to accept, receive, administer, and expend money and other aidavailable from the federal government, and to establish reasonable and pertinent operating standards under which libraries may qualify to receive state money. Section 247.14, F.S., allows the division to promulgate rules in order to carryout the duties assigned in ch. 257, F.S. The division has promulgated ch. 18, F.A.C., rules relating to library and information services, including qualification requirements forstate and federal grants which are available to libraries in the state. The qualification requirements include minimum standards for staffing levels and education experience, localgovernment funding, and hours of service.

The law currently provides for three types of financial assistance to public libraries. The assistance is popularly referred to as "state aid to libraries"; qualification requirements are specified by rule. State aid to libraries isprovided through three kinds of grants. First, operating grants, which represent the largest percentage of state aid, are provided to local governments for the maintenance and improvement of library services at a maximum rate of 25 cents for every local $1 expended for libraries. The second type ofaid, equalization grants, provide additional funding to the state's poorer counties. Only counties with limited fiscal capacity which fall below the midpoint in per capita local support for library services are elig!ble for equalization grants. The third type of grant is awarded to regional (i.e., multicounty) libraries. This last type is intended to supportmulticounty cooperative library services. Multicounty libraries are formed when several counties join together to provide cost-effective library services in areas which could not afford such services absent cooperative support. The StateLibrarian reports that there are presently six multicounty libraries in the state; they encompass more than 20 of the state's 67 counties.

.,.

REVISED:

DATE: June 8, 1992

BILL NO, CS/SB 154H

Page 2

Section 257.17, F.S., contains provisions by which public libraries in the state may qualify for operating grants administered by the division. The enacting legislation for these provisions, ch. 61-402, L.O.F., stated that it is the "policy of the state of Florida to aid and encourage the establishment and development of free library service throughout the state, by grants of money to counties maintaining a free library or free library se�vice . . . "

According to the State Librarian, counties were selected as the logical political subdivisions of the state through which state aid for libraries would be channeled based on the model of school districts, which are constitutionally required to be organized by county. In this way, all Floridians, both city residents and residents of unincorporated rural areas, ultimately would have access to library services. In 1961, when the state first began providing aid to libraries, only 18 counties, or 26.8 percent, met the qualifications. In FY 1991-92, however, 61 of the state's 67 counties, or 91 percent, qualified to receive state aid. As a result of most counties qualifying to receive state aid, it is estimated that free library service has been extended to 95 percent of Florida's population.

Eligibility for state aid under the program established in s. 257,17, F.S., is limited to a political subdivision that isdesignated by a county as the single library administrativeunit. Qualifying libraries are eligible to receive annualoperating grants equal to up to 25 percent of all local fundsexpended by the political subdivision during the secondpreceding fiscal year for the operation and maintenance of alibrary.

Subdivisions which are eligible for state operating grants include counties which provide free library service, and counties which join through interlocal agreements to maintain a library with other �aunties, special districts, or one or more municipalities in another county to provide free library service. Special districts and special tax districts are also eligible, as are municipalities with a population of 200,000 or more.

State aid grants are prorated by dividing the money for which approved political subdivisions are eligible by the amount appropriated by the Legislature each year. In FY 1991-92, libraries received approximately 46 percent of the aid for which they were eligible under s. 257.17, F.S. This 46 percent equalled an appropriation of $17,335,737. State aid for library operating grants has not been fully funded since 1962; the proration factor has ranged from 12,9 percent to 49.7 percent since that time.

Section 257.171, F,S,, authorizes units of local government to establish regional libraries, and to receive state aid under rules promulgated by the division. The formula for library equalization grants is provided by s. 257.18, F.S. The law currently provides equalization grants computed using a formula which is based on the ratio between a county's contribution to the state's full value of property LaA assessment and the actual contribution to the actual state assessment •

•

Article X, s. 15, Fla. Const., authorizes the state to operate lotteries. The Department of the Lottery is established in s. 20.317, F.S.; responsibilities are assigned to thedepartment in ch. 24, F.S. The department is created with thelegislative intent to benefit the state through significantadditional funds for education through the proceeds of thestate's lottery games. The law requires, in s. 24.121, F.S.,that at least 50 percent of the gross lottery sales be returnedto the public in the form of lottery prizes.

REVISED: BILL NO. CS/SB 154H

Page 3 DATE: June 8, 1992

Section 24.115, F.S., governs the payment of lottery prizes. The law provides that prizes are not assignable, although a prize may be paid to the estate of deceased prize winner. Persons under the age of 18 are ineligible to receive prizes unless their winning tickets were purchased by someone over the age of 18 and presented to the minor as a gift. Lottery retailers may pay winners up to $599 in accordance with rules of the department. The law also provides that unclaimed prize money will be added to the pool of funds from which future prizes are awarded or used for special prize promotions. Prize winners who owe money to a state agency or for child support must pay outstanding debts prior to receiving a prize of $600 ·or more from the Department of the Lottery.

B. Effect of Proposed Changes:

Section 257.171, F.S., relating to regional libraries, would beamended to change the term "regional libraries" to "multicountylibraries." Multicounty libraries would therefore becomeeligible to receive state aid to libraries. The currentstatutory provisions for the state's funding formula forregional libraries would be repealed.

Under s. 257,172, F.S., multicounty library grants would beavailable to the administrative unit of a multicounty librarywhich serves a population of 50,000 or more people or whichserves three or more counties. Such grants would be used tosupport and extend library services in participating counties.The maximum grant for multicounty libraries would be $1 millionper year, with the state matching local expenditures made byparticipating counties for operation and maintenance of alibrary during the second preceding year. The $1 millionmaximum grant would be prorated to multicounty libraries on thefollowing basis:

Two participating counties could receive up to 5 cents for each dollar expended;

Three participating counties could receive up to 10 cents for each dollar expended;

Four participating counties could receive up to 15 cents for each dollar expended;

Five participating counties could receive up to 20 cents for each dollar expended; and

Six participating counties could receive up to 25 cents for each dollar expended.

In addition, the administrative unit for a multicounty library with three or more participating counties would be eligible for a base grant of at least $250,000 per year to support administrative activities. The latter amount would be subject to change based on local government support and other price index indicators. The provisions in s. 257.21, F.S., which allow for a pro-rata computation of state aid based on annual appropriations, would not affect aid to multicounty libraries.

Section 257.18, F.S., relating to equalization grants, would also be amended, and its current prov!sions would be deleted. Qualification standards for library equalization grants would be changed to measure when the value of 1 mill adjusted to reflect the average statewide assessment for property in a county is below the median amount for all counties in the state, and the per capita local funds expended for library service the second preceding year is below the average of all counties. The equalization factor would be computed by subtracting the value of 1 mill adjusted to the statewide level for each county from the average adjusted value of 1 mill for

REVISED: BILL NO. CS/SB 154H

Page 4 DATE: June 8, 1992

all counties, and dividing that amount by the average adjusted value of 1 mill for all counties.

An equalization grant for library services would be computed by multiplying the equalization factor by the total local funds expended for library service by a county during the second preceding year, and adding that amount to the actual total funds expended by the county for library support during the second preceding year. The result would be the adjusted value for the local funds which were expended in support of library services. In this case, the equalization grant would be equal to 25 percent of the adjusted value of county funds expended to support library services.

When the adjusced mill equivalent of actual local funds spent for library services exceeds the statewide average adjusted mill equivalent of actual local funds expended by all counties which receive operating grants, the amount of the equalization grant would be 50 percent of the adjusted value of local funds spent for library services. Thus, the new equalization formula would consider local need, tax capacity (based on the property tax millage ceiling set by the state), and the local contribution to library services.

Equalization grants would be calculated by the Division of Library and Information Services based on information certified by the appropriate state agency and local officials, i.e., the Department of Revenue and county tax assessors.

The provisions in s. 257.21, F.S., which allow for a pro-rata share of state aid based on annual appropriations, would not affect state equalization grants to libraries.

The law would provide for reductions in state aid to libraries in the event the state experiences revenue shortfalls. In the case of revenue shortfalls which require budget reductions, library grants from the state would be reduced by the same rate that operating funds of the Division of Library and Information Services are reduced. The Secretary of State would also be authorized to determine the rate of reductions in library grants.

Section 24.115, F.S., relating to the payment of prizes by the Department of the Lottery, would also be amended. At least $5.2 million of the pool of unclaimed prize money would be deposited annually into the Library Services Trust Fund to be used for state aid to libraries.

The bill would take effect July 1, 1992, or upon becoming a law, whichever occurs later. The effectiveness of two of the major provisions of the bill are contingent, however. The funding formula for multicounty library grants in s. 257.172, F.S., will take effect only if the legislative appropriationfor state library grants in FY 1992-93 were to exceed theFY 1991-92 appropriation by 20 percent. Similarly, the changesto s. 257.18, F.S., which relates to equalization grants, willonly take effect if the legislative appropriation forFY 1992- 93 were to exceed the FY 1991-92 appropriation by 12percent.

II. ECONOMIC IMPACT AND FISCAL NOTE:

A. Public:

The public is the primary recipient of lottery prize money.The Department of the Lottery estimates that approximately$11 .9 million of the total pool available for prizes inFY 1991-92 will be unclaimed by the public. Under current law,this money may be used to enhance prizes and jackpots in othergames, or for similar activities. Therefore, any reduction inthe pool of unclaimed prize money will concomitantly reduce the

�

REVISED: BILL NO. CS/SB 154H

Page 5 DATE: June 8, 1992

amount of prize money available to the public. Under the provisions of the bill, at least $5.2 million of the pool of unclaimed prize money would be used for state aid to libraries.

B. Government:

The Secretary of State has made a budget request of anadditional $5.2 million in FY 1992-93 over the FY 1991-92appropriation in order to implement the provisions of SB 154-H.The base budget for state aid to libraries, based on theFY 1991-92 appropriation, is approximately $17.3 million.Under the provisions of the bill, at least $3.5 million inexcess of the FY 1991-92 appropriation would be required toimplement the bill. The Division of Library and InformationServices reports that approximately 34 counties, or one-half ofthe state, would be eligible to receive a portion of the $3.5million under the bill.

Transferring $5.2 million from the Lottery's AdministrativeTrust Fund reduces this fund by 2.1%. This fund is used forthree purposes: ticket providers received 19,61, retailersreceived 45.8%, and 34.6% goes to lottery operations. Sincethe amount which goes to retailers and ticket providers is afixed percentage of total sales, the $5.2 million must be takenfrom lottery operations and will result in a 6.11 decrease infunds available for this purpose.

Lottery operations comprise advertising and promotion (36.6%),salaries and OPS (30.8%) expenses and equipment (22.6%) andother costs (9.9%). A 6. 1 % decrease in funds available Eorthese purposes will have a negative but indeterminate impact onlottery sales, and therefore, on the Education EnhancementTrust Fund.

III. MUNICIPALITY/COUNTY MANDATES RESTRICTIONS:

None. State aid to libraries is a voluntary grant made to countylibrary systems by the state. The state grants are capped at anamount equal to 25 percent of the local government appropriationfor library services during the second preceding fiscal year;however, the state does not require local governments to providelibrary services.

IV. COMMENTS:

In 1991, the State Librarian formed the Public Library DevelopmentTask Force to study the statutory basis for state aid to libraries.The task force consisted of 12 members who represented small,medium, and large public libraries in the state. The task force,which met five times over a 6-month period, determined, "County andmulticounty units of library service are most cost-effective." Thetask force also realized that some smaller counties in the statehave a limited fiscal capacity that inhibits the provision of freelibrary service. Therefore, the task force determined,"Multicounty library service is the most feasible way to assurethat residents of the state's smaller, poorer counties have accessto levels of library service equal to other areas of the state."According to the State Librarian, SB 154-H would provide thestatutory framework necessary to implement the findings andrecommendations of the task force.

..

Currently, the state provides grants Eor library services to 61 ofthe state's 67 counties. Only Baker, Franklin, Lake, Okaloosa,Polk, and Sumter counties do not qualify for state aid tolibraries. According to information provided by the Division ofLibrary and Information Services, the counties of Baker, Franklin,and Sumter would be more likely to meet state aid qualificationrequirements under the provisions oE this bill.

REVISED:

DATE: June 8, 1992

V. AMENDMENTS :

None.

•

BILL NO. CS/SB 154H

Page _6_

STATEMENT OF SUBSTANTIAL CHANGES CONTAINED IN COMMITTEE SUBSTITUTE FOR

Senate Bill 154H

Committee Substitute for SB 154H changes the source of additional funding for libraries from unclaimed lottery prizes to the Lottery Administrative Trust Fund.

Committee on Finance, Taxation and Claims

�to,

(FILE TWO COPIES WITH THE SECRETARY OF THE SENATE)

•

12-..?of

STORAGE NAME: h0099Hz.the DATE: June 29, 1992

**AS PASSED BY THE LEGISLATURE** CHAPTER#: 92-305, Laws of Florida

BILL#:

HOUSE OF REPRESENTATIVES COMMITTEE ON

TOURISM, HOSPITALITY & ECONOMIC DEVELOPMENT FINAL BILL ANALYSIS & ECONOMIC IMPACT STATEMENT

HB 99-H (PASSED AS CS/SB 154-H)

RELATING TO: Public Libraries

SPONSOR(S): Representative Mitchell

STATUTE($) AFFECTED: amends ss. 257.171, 257.172, and 257.18, F.S.; creates s. 257.195, F.s.

COMPANION BILL(S): CS/SB 154-H (S)

ORIGINATING COMMITTEE(S)/COMMITTEE(S) OF REFERENCE: (1) TOURISM, HOSPITALITY AND ECONOMIC DEVELOPMENT(2) APPROPRIATIONS W/D

YEA 13 NAY 0

( 3)(4)(5)

***************************************************************************

I. SUMMARY:

This bill alters the equalization and multicounty grant formulas bywhich the Division of Library and Information Services channels stateaid to eligible administrative units of libraries within the state.The new formulas are based on a combination of fiscal capacity, localeffort, and need for equalization grants, and on the number ofparticipating counties and local effort for multicounty grants.

The current level of grant funding for all state aid to libraries is$17.3 million. Of that amount $244,759 (1.4%) is allocated toequalization and regional (multicounty) grants. This bill proposesraising that amount to $3.5 million (17%) while maintaining theadministration and levels of support of the operating grants whichassist local governments in sustaining and upgrading library service.

The effectiveness of the statutory changes provided by this bill iscontingent upon legislative appropriation of the bill's prescribedfunding levels for state aid to libraries.

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II. SUBSTANTIVE ANALYSIS:

A. PRESENT SITUATION:

Th·e Division of Library and Information Services of the Department of State is directed by Chapter 257, F.s., to adopt rules to carry out the provisions of this chapter and to establish reasonable and pertinent operating standards under which libraries will be eligible to receive state monies. The division is also authorized to accept and expend federal funds for the purpose of giving aid to libraries and providing educational library service in the state. The division has promulgated ch. lB, F.A.C., relating to library and information services, which includes qualification requirements for state and federal grants which are available to libraries in the state.

Sections 257.17, 257.172, and 257.18, F.S., provide for three different types of financial aid grants designed to assist libraries in the state with operating and administrative costs. The first type of grant, the operating grant, is available to any political subdivision designated by a county as the single library administrative unit. These units must meet certain standards for serving the public prescribed by the statutes in s. 257.17, F.S. The operating grants, which represent the largest percentage of state aid, are provided to local governments for the maintenance and improvement of library services at a maximum rate of 25 cents for every local $1 expended for libraries. The grants are prorated by dividing the money for which approved library administrative units are eligible by the amount appropriated by the Legislature each year. In 1991/92 libraries received approximately 46 percent of the aid for which they were eligible under s. 257.17, F.S.

Regional libraries, authorized in s. 257.171, F.S., and established by units of local government and subject to division operating standards and rules, are eligible for the regional library grant. The annual amounts eligible for use by the administrative unit of each regional library for improving services in each member county and regional library purposes is calculated by using a formula based on the number of participating counties and the number of square miles in those counties. This grant is intended to support multicounty library services. Such libraries are formed when several counties join together to provide cost-effective library services in areas which could not afford such services absent cooperative support. There are presently six multicounty libraries in the state encompassing more than 20 of the state's 67 counties.

The third type of aid, equalization grants, provide additional funding to the state's poorer counties. Only counties with limited fiscal capacity which fall below the midpoint in per capita local support for library services are eligible for equalization grants. These grants are computed using a formula which is based on the ratio between a county's contribution to the

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state's full value of property tax assessment and the actual contribution to the actual state assessment.

In 1991, the Public Library Development Task Force was formed to study the statutory basis for state aid to libraries. The task force determined that county and multicounty units of library service are most cost-effective. The task force also determined that due to the limited fiscal capacity of some of the state's smaller counties, "Multicounty library service is the most feasible way to assure that residents of the state's smaller, poorer counties have access to levels of library service equal to other areas of the state."

B. EFFECT OF PROPOSED CHANGES:

This bill alters the equalization and multicounty grant formulasby which the Division of Library and Information Services channelsstate aid to eligible administrative units of libraries within thestate. The new formulas are based on a combination of fiscalcapacity, local effort, and need for equalization grants, and onthe number of participating counties and local effort formulticounty grants.

Section 257.171, F.s., relating to regional libraries, would beamended to change the term "regional libraries" to "multicountylibraries." Those libraries would then become eligible to receivestate aid to libraries, and the current statutory provisions forthe state's funding formula for regional libraries would beamended in s. 257.172, F.S. Under that section, these grantswould be available to the administrative unit of a multicountylibrary which serves a population of 50,000 or more people orwhich serves three or more counties. Such grants would be used tosupport and extend library services in participating counties.The maximum amount for which each county could annually seekmatching grant funds would be $1 million. The state would matchthe local expenditures made by participating counties foroperation and maintenance of a multicounty library during thesecond preceding year. The match formula is based on a slidingscale of 5 cents per $1 of local match to 25 cents per $1 of localmatch depending on the number of counties participating (2 to 6 ormore).

In addition, the administrative unit for a multicounty librarywith three or more participating counties would be eligible for abase grant of at least $250,000 per year to support administrativeactivities. The latter amount would be subject to change based onlocal government support and other price index indicators. Theprovisions in s. 257.21, F.s., which allow for a pro-rata cut instate aid based on annual appropriations, would not affect aid tomulticounty libraries.

Section 257.18, F.S., relating to equalization grants would alsobe amended, to delete its current provisions. Qualificationstandards for library equalization grants would be changed tomeasure when the value of 1 mill adjusted to reflect the averagestatewide assessment for property in a county is below the median

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amount for all counties in the state, and the per capita local funds expended for library service the second preceding year is below the average of all counties. The equalization factor would be computed by subtracting the value of 1 mill adjusted to the

statewide level for each county from the average adjusted value of 1 mill for all counties, and dividing that amount by the average adjusted value of 1 mill for all counties.

An equalization grant for library services would be computed by multiplying the equalization factor by the total local funds expended for library service by a county during the second preceding year, and adding that amount to the actual total funds expended by the county for library support during the second preceding year. The result would be the adjusted value for the local funds which were spent to support library services. In this case, the equalization grant would be equal to 25 percent of the adjusted value of county funds spent to support library services.

When the adjusted mill equivalent of actual local funds spent for library services exceeds the statewide average adjusted mill equivalent of actual local funds expended by all counties which receive operating grants, the amount of the equalization grant would be 50 percent of the adjusted value of local funds spent for library services. Thus, the new equalization formula would consider local need 1 tax capacity (based on the property tax millage ceiling set by the state), and the local contribution to library services.

Equalization grants would be calculated by the Division of Library and Information Services based on information certified by the appropriate state agency and local officials, i.e., the Department of Revenue and county tax assessors.

The provisions in s, 257,21, F.S., which allow for a pro-rata cut in state aid based on annual appropriations, would not affect state equalization grants to libraries.

The law would provide for cuts in state aid to libraries in the event the state experiences revenue shortfalls. In the case of revenue shortfalls which require budget reductions, library grants from the state would be cut by the same rate that operating funds of the Division of Library and Information Services are cut. The secretary of State would also be authorized to determine the rate of cuts in library grants.

The effectiveness of two of the major provisions of the bill are provisional. The funding formula for multicounty library grants in s. 257.172, F.S., would take effect only if the legislative appropriation for multicounty and equalization state library grants in FY 1992-93 exceeds the FY 1991-92 appropriation by a total of at least 20 percent (from $244,749 to $3,548,080). The changes to s. 257.18, F.S., which relate to equalization grants, would only take effect if the legislative appropriation for FY

. 1992-93 exceeds the FY 1991-92 appropriation for that particular portion of the grant funds by at least 12 percent (from $60,483 to $1,471,488).

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C. SECTION-BY-SECTION ANALYSIS:

Section 1 amends s. 257.171, F.S., changing the reference to"regional" libraries to "multicounty" libraries.

section 2 amends s. 257.172, F.s., changing the name of regionallibrary grants to multicounty library grants and reconfiguring theformula by which the division awards such grants to qualifyingadministrative units of multicounty libraries. It describes thoseadministrative units in terms of numbers of counties and sets up alocal matching funds sliding scale grant amount for such units.This section also stipulates that the provisions of s. 257.21,F.S., relating to pro-rata cuts in state aid based on annualappropriations do not apply to these grants.

Section 3 amends s. 257.18, F.s., by reconfiguring the formula by which the division awards equalization grants to those counties qualifying for operating grants under s. 257.17, F.S. The formula is based on the tax capacity (based on property tax millage ceiling set by the state) of a county, rated against the state average and that county's local contribution to library services, rated against the state average. This section also stipulates that the provisions of s. 257.21, F.S., do not apply to these grants.

Section 4 creates s. 257.195, F.S., to provide for cuts in state aid to libraries in the event of state revenue shortfalls.

Section 5 provides an effective date of July 1, 1992, or upon becoming law, whichever occurs later and contains contingency stipulations for the effectiveness of the provisions of the bill dependent on appropriations for fiscal year 1992-93.

III. FISCAL ANALYSIS & ECONOMIC IMPACT STATEMENT:

A. FISCAL IMPACT ON STATE AGENCIES/STATE FUNDS:

Present operating grants not amended by this legislation wouldremain at the same level of funding: $17,335,757.

1. Non-recurring Effects:

None.

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2. Recurring Effects:

Expenditures

Department of StateOperating Grants

General Revenue Multicounty Grants

General Revenue Equalization Grants

General Revenue

1992-93

$17,335,757

$ 2,076,592

$ 1,471,488

3. Long Run Effects Other Than Normal Growth:

None

4. Total Revenues and Expenditures:

Expenditures

Department of StateGrants and Aids, Library Grants

General Revenue

1992-93

$20,833,837

B. FISCAL IMPACT ON LOCAL GOVERNMENTS AS A WHOLE:

1. Non-recurring Effects:

None.

2. Recurring Effects:

1993-94

$17,335,757

$ 2,076,592

$ 1,471 ,.488

1,993-94

$20,833,837

Increases the availability of state funding for county andmulticounty libraries in areas where tax resources are mostlimited. Affects approximately 31 counties.

3. �ong Run Effects Other Than Normal Growth:

None.

C. DIRECT ECONOMIC IMPACT ON PRIVATE SECTOR:

1. Direct Private Sector Costs:

None.

2. Direct Private Sector Benefits:

Increases the ability of counties, in areas where tax resourcesare most limited, to afford their populace the same basic levelof free library services available in other areas of the state.

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3. Effects on competition, Private Enterprise and EmploymentMarkets:

None.

D. FISCAL COMMENTS:

IV. CONSEQUENCES OF ARTICLE VII, SECTION 18 OF THE FLORIDA CONSTITUTION:

This bill is exempt from consideration of the local mandatesprovisions.

A. APPLICABILITY OF THE MANDATES PROVISION:

B. REDUCTION OF REVENUE RAISING AUTHORITY:

C. REDUCTION OF STATE TAX SHARED WITH COUNTIES AND MUNICIPALITIES:

V. COMMENTS:

A virtually identical bill, HB 851, passed the House during the 1992 Regular Session and died in messages to the Senate.

,

VI. AMENDMENTS OR COMMITTEE SUBSTITUTE CHANGES:

House Bill 99-H was prefiled on May 20, 1992 by RepresentativeMitchell. The bill was introduced on June 1, 1992, and referred tothe committees on Tourism, Hospitality and Economic Development andAppropriations. That same day, the bill was reported favorably bythe Committee on Tourism, Hospitality and Economic Development withone technical amendment. House Bill 99-H was withdrawn from theCommittee on Appropriations and placed on the Special Order Calendaron June 4, 1992, and passed the House by a vote of 109 YEAS to 0NAYS. On June 10, 1992, the bill was received by the Senate inMessages and referred to the Committees on Governmental Operations;Finance, Taxation and Claims; and Appropriations where it died.

Senate Bill 154-H was prefiled on May 28, 1992 by SenatorKirkpatrick. On June 1, 1992, the bill was introduced and referredto the committees on Governmental Relations, Finance, Taxation andClaims, and Appropriations. The Committee on Governmental Operationsrecommended the bill favorably on June 2, 1992. The Committee onFinance, Taxation and Claims amended the bill on June 8, 1992, bystipulating that the funds necessary for the provisions of the bill

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to be carried out would be supplied by the Administrative Trust Fund of the Department of the Lottery. The Committee Substitute for Senate Bill 154-H was then withdrawn from the Committee on Appropriations and on June 16, 1992, placed on the Calendar. The CS was further amended on the floor of the Senate to limit the amount of funds in the Lottery's Administrative Trust Fund which may be used to pay the department's administrative costs. The bill was passed as amended on June 18, 1992, by a vote of 22 YEAS to O NAYS. The House received the bill in Messages, amended it removing the provisions relating to Lottery Department Trust Funds, and passed it with a vote of 97 YEAS to 2 NAYS on June 24, 1992. The Senate received the bill, concurred with the House amendments and passed Committee Substitute for Senate Bill 154-H on June 25, 1992, by a vote of 36 YEAS to 0 NAYS.

VII. SIGNATURES:

COMMITTEE ON TOURISM, HOSPITALITY & ECONOMIC DEVELOPMENT:Prepared by: Staff Director:

Susan F. Holzer Dee Hopkins Crusoe

FINAL ANALYSIS PREPARED BY

ECONOMIC DEVELOPMENT:

COMMITTEE ON TOURISM, HOSPITALITY &

Prepared by:

��--

Staff Director:

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