THE BILL ITSELF
HB 723
Rural Counties
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A bill to be entitled
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An act relating to rural counties; amending s. 212.08,
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F.S.; providing an exemption from the sales and use
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tax for industrial machinery and equipment used by
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wholesalers in fiscally constrained counties; amending
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s. 215.971, F.S.; clarifying a provision relating to
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agreements funded with federal or state assistance;
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requiring a state agency to expedite certain payment
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requests; amending s. 216.0153, F.S.; prohibiting the
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state from purchasing certain land in a fiscally
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constrained county; providing exceptions; requiring
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the Department of Environmental Protection to provide
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a certain explanation to a fiscally constrained county
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within a specified timeframe; amending s. 339.2816,
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F.S.; increasing the amount of an annual appropriation
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to the Small County Road Assistance Program beginning
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in a specified fiscal year; amending s. 339.2818,
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F.S.; authorizing a specified amount from the State
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Transportation Trust Fund to be used to fund the Small
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County Outreach Program beginning in a specified
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fiscal year; amending s. 409.975, F.S.; requiring the
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Agency for Health Care Administration to determine
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which providers in hospitals located in rural areas
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are essential Medicaid providers; creating s. 1011.79,
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F.S.; creating the Rural District Graduate Placement
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Incentive Pilot program within the Department of
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Education for a specified purpose; subject to
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legislative appropriation, requiring the department to
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provide a certain bonus to a school district or
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charter school located in a fiscally constrained
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county for specified purposes; requiring the amount of
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the bonus to be specified in the General
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Appropriations Act; providing for proration of funds;
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requiring a graduate's employment to be verified using
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certain data; requiring certain entities to assist
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rural school districts and charter schools with
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increasing the employment of certain students;
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requiring rural school districts and charter schools
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that earn a bonus to use such funds for specified
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purposes; providing for expiration; requiring the
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State Board of Education to adopt rules; providing an
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effective date.
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Be It Enacted by the Legislature of the State of Florida:
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Section 1. Paragraph (w) is added to subsection (5) of
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section 212.08, Florida Statutes, to read:
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212.08 Sales, rental, use, consumption, distribution, and
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storage tax; specified exemptions.—The sale at retail, the
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rental, the use, the consumption, the distribution, and the
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storage to be used or consumed in this state of the following
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are hereby specifically exempt from the tax imposed by this
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chapter.
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(5) EXEMPTIONS; ACCOUNT OF USE.—
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(w) Industrial machinery and equipment used by food
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wholesalers in fiscally constrained counties.—
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1. As used in this paragraph:
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a. "Fiscally constrained county" means a county that is
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entirely within a rural area of opportunity as designated by the
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Governor pursuant to s. 288.0656 or a county for which the value
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of a mill will raise no more than $5 million in revenue, based
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on the taxable value certified pursuant to s. 1011.62(4)(a)1.a.,
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from the previous July 1.
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b. "Food establishment" has the same meaning as in s.
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500.03.
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c. "Industrial machinery and equipment" means tangible
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personal property or other property that has a depreciable life
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of at least 3 years and that is used as an integral part in the
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manufacturing, processing, packing, holding, production, or sale
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of wholesale food products. The term includes a building and its
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structural components, including heating and air-conditioning
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systems.
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2. Industrial machinery and equipment purchased by a food
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establishment that is manufacturing, processing, packing,
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holding, producing, or selling food at wholesale at fixed
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locations within a fiscally constrained county is exempt from
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the tax imposed by this chapter. If, at the time of purchase,
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the purchaser furnishes the seller with a signed certificate
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certifying the purchaser's entitlement to exemption permitted by
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this paragraph, the seller is not required to collect the tax on
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the sale of such item, and the department shall look solely to
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the purchaser for recovery of the tax if it determines that the
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purchaser was not entitled to the exemption.
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Section 2. Paragraph (h) of subsection (1) of section
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215.971, Florida Statutes, is amended to read:
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215.971 Agreements funded with federal or state
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assistance.—
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(1) An agency agreement that provides state financial
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assistance to a recipient or subrecipient, as those terms are
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defined in s. 215.97, or that provides federal financial
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assistance to a subrecipient, as defined by applicable United
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States Office of Management and Budget circulars, must include
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all of the following:
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(h) If the agency agreement provides federal or state
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financial assistance to a county or municipality that is a rural
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community or rural area of opportunity as those terms are
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defined in s. 288.0656(2), a provision allowing the agency to
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provide for the payment of invoices to the county, municipality,
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or rural area of opportunity as that term is defined in s.
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288.0656(2), for verified and eligible performance that has been
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completed in accordance with the terms and conditions set forth
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in the agreement. Such provision is not intended to require
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reimbursement to the county or municipality that is a rural
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community or rural area of opportunity for invoices paid but is
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intended to allow the agency to provide for the payment of
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invoices due. The agency shall expedite such payment requests in
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order to facilitate the timely payment of invoices received by
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the county or municipality that is a rural community or rural
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area of opportunity. This provision is included to alleviate the
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financial hardships that certain rural counties and
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municipalities encounter when administering agreements, and must
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be exercised by the agency when a county or municipality
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demonstrates financial hardship, to the extent that federal or
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state law, rule, or other regulation allows such payments. This
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paragraph may not be construed to alter or limit any other
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provisions of federal or state law, rule, or other regulation.
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Section 3. Subsection (3) of section 216.0153, Florida
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Statutes, is renumbered as subsection (4), and a new subsection
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(3) is added to that section to read:
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216.0153 Comprehensive state-owned real property system.—
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Whereas, the Legislature finds that it is in the best interest
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of the state to identify surplus property and dispose of such
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property owned by the state that is unnecessary to achieving the
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state's responsibilities, that may cost more to maintain than
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the revenue generated, that does not serve any public purpose,
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or from which the state may derive a substantially similar
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public purpose under private ownership.
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(3)(a) The state may not purchase any land in a fiscally
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constrained county as defined in s. 212.08(5)(w)1. if the
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combination of federal- and state-owned lands is greater than 40
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percent of the total land in the fiscally constrained county.
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This paragraph does not apply if:
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1. The state identifies a parcel of land in the fiscally
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constrained county that can be surplused.
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2. The state obtains approval for the purchase from the
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fiscally constrained county.
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(b) The fiscally constrained county may request that the
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Department of Environmental Protection analyze whether the
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county should approve the purchase. The Department of
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Environmental Protection shall conduct an analysis and provide a
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detailed written explanation to the fiscally constrained county
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within 90 days.
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Section 4. Subsection (3) of section 339.2816, Florida
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Statutes, is amended to read:
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339.2816 Small County Road Assistance Program.—
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(3) Beginning in with fiscal year 2026-2027 1999-2000
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until fiscal year 2009-2010, and beginning again with fiscal
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year 2012-2013, up to $50 $25 million annually from the State
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Transportation Trust Fund may be used for the purposes of
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funding the Small County Road Assistance Program as described in
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this section.
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Section 5. Subsection (9) is added to section 339.2818,
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Florida Statutes, to read:
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339.2818 Small County Outreach Program.—
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(9) Beginning in fiscal year 2026-2027, and annually
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thereafter, at least $50 million from the State Transportation
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Trust Fund may be used to fund the Small County Outreach
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Program.
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Section 6. Paragraph (a) of subsection (1) of section
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409.975, Florida Statutes, is amended to read:
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409.975 Managed care plan accountability.—In addition to
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the requirements of s. 409.967, plans and providers
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participating in the managed medical assistance program shall
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comply with the requirements of this section.
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(1) PROVIDER NETWORKS.—Managed care plans must develop and
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maintain provider networks that meet the medical needs of their
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enrollees in accordance with standards established pursuant to
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s. 409.967(2)(c). Except as provided in this section, managed
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care plans may limit the providers in their networks based on
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credentials, quality indicators, and price.
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(a) Plans must include all providers in the region that
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are classified by the agency as essential Medicaid providers,
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unless the agency approves, in writing, an alternative
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arrangement for securing the types of services offered by the
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essential providers. Providers are essential for serving
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Medicaid enrollees if they offer services that are not available
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from any other provider within a reasonable access standard, or
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if they provided a substantial share of the total units of a
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particular service used by Medicaid patients within the region
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during the last 3 years and the combined capacity of other
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service providers in the region is insufficient to meet the
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total needs of the Medicaid patients. The agency may not
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classify physicians and other practitioners as essential
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providers. The agency, at a minimum, shall determine which
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providers in the following categories are essential Medicaid
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providers:
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1. Federally qualified health centers.
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2. Statutory teaching hospitals as defined in s.
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408.07(46).
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3. Hospitals that are trauma centers as defined in s.
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395.4001(15).
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4. Hospitals located at least 25 miles from any other
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hospital with similar services.
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5. Hospitals located in rural areas.
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Managed care plans that have not contracted with all essential
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providers in the region as of the first date of recipient
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enrollment, or with whom an essential provider has terminated
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its contract, must negotiate in good faith with such essential
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providers for 1 year or until an agreement is reached, whichever
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is first. Payments for services rendered by a nonparticipating
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essential provider shall be made at the applicable Medicaid rate
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as of the first day of the contract between the agency and the
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plan. A rate schedule for all essential providers shall be
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attached to the contract between the agency and the plan. After
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1 year, managed care plans that are unable to contract with
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essential providers shall notify the agency and propose an
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alternative arrangement for securing the essential services for
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Medicaid enrollees. The arrangement must rely on contracts with
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other participating providers, regardless of whether those
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providers are located within the same region as the
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nonparticipating essential service provider. If the alternative
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arrangement is approved by the agency, payments to
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nonparticipating essential providers after the date of the
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agency's approval shall equal 90 percent of the applicable
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Medicaid rate. Except for payment for emergency services, if the
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alternative arrangement is not approved by the agency, payment
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to nonparticipating essential providers shall equal 110 percent
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of the applicable Medicaid rate.
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Section 7. Section 1011.79, Florida Statutes, is created
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to read:
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1011.79 Rural District Graduate Placement Incentive Pilot
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Program.—
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(1) The Rural District Graduate Placement Incentive Pilot
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Program is created within the Department of Education for the
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purpose of financially rewarding rural school districts and
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charter schools for preparing high school graduates with in-
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demand certifications required for employment.
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(2) Subject to legislative appropriation, the Department
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of Education shall provide a bonus to a school district or
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charter school located in a fiscally constrained county as
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defined in s. 212.08(5)(w)1. for increasing the percentage of
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students who:
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(a) Graduate from a high school or charter school within
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the district.
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(b) Earn an industry certification included on the CAPE
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Industry Certification Funding List described in s. 1008.44
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while enrolled in a high school or charter school within the
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district.
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(c) Are employed in the fiscally constrained county in a
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field for which such industry certification is required within 6
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months after graduation.
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(d) Remain employed in such field for at least 3 months.
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(3) The amount of the bonus shall be specified in the
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General Appropriations Act. If the appropriated funds are
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insufficient to fully fund the total number of eligible high
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school graduates, such funds must be prorated based on each
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eligible school's proportionate share of the total number of
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eligible high school graduates.
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(4) A graduate's employment shall be verified using data
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contained in the Florida Education and Training Placement
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Information Program described in s. 1008.39.
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(5) Each local workforce development board, education and
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industry consortium described in s. 445.07, and regional
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educational consortia described in s. 1001.451 shall assist
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rural school districts and charter schools with increasing the
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employment of students who have earned an industry certification
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included on the CAPE Industry Certification Funding List
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described in s. 1008.44.
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(6) A rural school district or charter school that earns a
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bonus pursuant to this section must use such funds to benefit
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the workforce education programs provided by the school district
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or charter school. Such funds may be used to upgrade equipment
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or expand or otherwise improve such programs.
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(7) This section expires July 1, 2029, unless reenacted by
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the Legislature.
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(8) The State Board of Education shall adopt rules to
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implement and administer this section.
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Section 8. This act shall take effect July 1, 2026.