Florida Senate - 2010                                    SB 2534
       
       
       
       By Senator Gaetz
       
       
       
       
       4-01614-10                                            20102534__
    1                        A bill to be entitled                      
    2         An act relating to financial emergencies; amending s.
    3         163.07, F.S.; requiring a plan of a county or
    4         municipality to improve the efficiency,
    5         accountability, and coordination of the delivery of
    6         local government services to include a structural and
    7         services consolidation plan if the county or
    8         municipality is subject to review and oversight by the
    9         Governor; amending s. 218.503, F.S.; authorizing a
   10         financial emergency review board for a local
   11         governmental entity or district school board to
   12         consult with other governmental entities for the
   13         consolidation of all administrative direction and
   14         support services; authorizing the Governor or
   15         Commissioner of Education to require a local
   16         governmental entity or district school board to
   17         develop a plan for the consolidation, sourcing, or
   18         discontinuance of all administrative direction and
   19         support services; providing an effective date.
   20  
   21  Be It Enacted by the Legislature of the State of Florida:
   22  
   23         Section 1. Section 163.07, Florida Statutes, is amended to
   24  read:
   25         163.07 Efficiency and accountability in local government
   26  services.—
   27         (1) The intent of this section is to provide and encourage
   28  a process that will:
   29         (a) Allow municipalities and counties to resolve conflicts
   30  among local jurisdictions regarding the delivery and financing
   31  of local services.
   32         (b) Increase local government efficiency and
   33  accountability.
   34         (c) Provide greater flexibility in the use of local revenue
   35  sources for local governments involved in the process.
   36         (2) Any county or combination of counties, and the
   37  municipalities therein, may use the procedures provided by this
   38  section to develop and adopt a plan to improve the efficiency,
   39  accountability, and coordination of the delivery of local
   40  government services. The development of such a plan may be
   41  initiated by a resolution adopted by a majority vote of the
   42  governing body of each of the counties involved, by resolutions
   43  adopted by a majority vote of the governing bodies of a majority
   44  of the municipalities within each county, or by resolutions
   45  adopted by a majority vote of the governing bodies of the
   46  municipality or combination of municipalities representing a
   47  majority of the municipal population of each county. The
   48  resolution shall create a commission which will be responsible
   49  for developing the plan. The resolution shall specify the
   50  composition of the commission, which shall include
   51  representatives of county and municipal governments, of any
   52  affected special districts, and of any other relevant local
   53  government entities or agencies. The resolution must include a
   54  proposed timetable for development of the plan and must specify
   55  the local government support and personnel services that will be
   56  made available to the representatives developing the plan.
   57         (3) Upon adoption of a resolution or resolutions as
   58  provided in subsection (2), the designated representatives shall
   59  develop a plan for delivery of local government services. The
   60  plan must:
   61         (a) Designate the areawide and local government services
   62  that are the subject of the plan.
   63         (b) Describe the existing organization of such services and
   64  the means of financing the services, and create a reorganization
   65  of such services and the financing thereof that will meet the
   66  goals of this section.
   67         (c) Designate the local agency that should be responsible
   68  for the delivery of each service.
   69         (d) Designate those services that should be delivered
   70  regionally or countywide. No provision of the plan shall operate
   71  to restrict the power of a municipality to finance and deliver
   72  services in addition to, or at a higher level than, the services
   73  designated for regional or countywide delivery under this
   74  paragraph.
   75         (e) Provide means to reduce the cost of providing local
   76  services and enhance the accountability of service providers.
   77         (f) Include a multiyear capital outlay plan for
   78  infrastructure.
   79         (g) Specifically describe any expansion of municipal
   80  boundaries that would further the goals of this section. Any
   81  area proposed to be annexed must meet the standards for
   82  annexation provided in chapter 171. The plan shall not contain
   83  any provision for contraction of municipal boundaries or
   84  elimination of any municipality.
   85         (h) Provide specific procedures for modification or
   86  termination of the plan.
   87         (i) Specify any special act modifications which must be
   88  made to effectuate the plan.
   89         (j) Specify the effective date of the plan.
   90         (4)(a) A plan developed pursuant to this section must
   91  conform to all comprehensive plans that have been found to be in
   92  compliance under part II of this chapter, for the local
   93  governments participating in the plan.
   94         (b) No provision of a plan developed pursuant to this
   95  section shall restrict the authority of any state or regional
   96  governmental agency to perform any duty required to be performed
   97  by that agency by law.
   98         (5)(a) A plan developed pursuant to this section must be
   99  approved by a majority vote of the governing body of each county
  100  involved in the plan, and by a majority vote of the governing
  101  bodies of a majority of municipalities in each county, and by a
  102  majority vote of the governing bodies of the municipality or
  103  municipalities that represent a majority of the municipal
  104  population of each county.
  105         (b) After approval by the county and municipal governing
  106  bodies as required by paragraph (a), the plan shall be submitted
  107  for referendum approval in a countywide election in each county
  108  involved. The plan shall not take effect unless approved by a
  109  majority of the electors of each county who vote in the
  110  referendum, and also by a majority of the electors of the
  111  municipalities that represent a majority of the municipal
  112  population of each county who vote in the referendum. If
  113  approved by the electors as required by this paragraph, the plan
  114  shall take effect on the date specified in the plan.
  115         (6) A plan developed pursuant to this section by a county
  116  or municipality that is subject to review and oversight by the
  117  Governor pursuant to s. 218.503 must include a structural and
  118  services consolidation plan.
  119         (7)(6) If the plan calls for merger or dissolution of
  120  special districts, such merger or dissolution shall comply with
  121  the provisions of chapter 189.
  122         (8)(7) If a plan developed pursuant to this section
  123  includes areas proposed for municipal annexation which meet the
  124  standards for annexation provided in chapter 171, such
  125  annexation shall take effect upon approval of the plan as
  126  provided in this section, notwithstanding the procedures for
  127  approval of municipal annexation specified in chapter 171.
  128         Section 2. Section 218.503, Florida Statutes, is amended to
  129  read:
  130         218.503 Determination of financial emergency.—
  131         (1) Local governmental entities, charter schools, charter
  132  technical career centers, and district school boards shall be
  133  subject to review and oversight by the Governor, the charter
  134  school sponsor, the charter technical career center sponsor, or
  135  the Commissioner of Education, as appropriate, when any one of
  136  the following conditions occurs:
  137         (a) Failure within the same fiscal year in which due to pay
  138  short-term loans or failure to make bond debt service or other
  139  long-term debt payments when due, as a result of a lack of
  140  funds.
  141         (b) Failure to pay uncontested claims from creditors within
  142  90 days after the claim is presented, as a result of a lack of
  143  funds.
  144         (c) Failure to transfer at the appropriate time, due to
  145  lack of funds:
  146         1. Taxes withheld on the income of employees; or
  147         2. Employer and employee contributions for:
  148         a. Federal social security; or
  149         b. Any pension, retirement, or benefit plan of an employee.
  150         (d) Failure for one pay period to pay, due to lack of
  151  funds:
  152         1. Wages and salaries owed to employees; or
  153         2. Retirement benefits owed to former employees.
  154         (e) An unreserved or total fund balance or retained
  155  earnings deficit, or unrestricted or total net assets deficit,
  156  as reported on the balance sheet or statement of net assets on
  157  the general purpose or fund financial statements, for which
  158  sufficient resources of the local governmental entity, charter
  159  school, charter technical career center, or district school
  160  board, as reported on the balance sheet or statement of net
  161  assets on the general purpose or fund financial statements, are
  162  not available to cover the deficit. Resources available to cover
  163  reported deficits include net assets that are not otherwise
  164  restricted by federal, state, or local laws, bond covenants,
  165  contractual agreements, or other legal constraints. Fixed or
  166  capital assets, the disposal of which would impair the ability
  167  of a local governmental entity, charter school, charter
  168  technical career center, or district school board to carry out
  169  its functions, are not considered resources available to cover
  170  reported deficits.
  171         (2) A local governmental entity shall notify the Governor
  172  and the Legislative Auditing Committee; a charter school shall
  173  notify the charter school sponsor, the Commissioner of
  174  Education, and the Legislative Auditing Committee; a charter
  175  technical career center shall notify the charter technical
  176  career center sponsor, the Commissioner of Education, and the
  177  Legislative Auditing Committee; and a district school board
  178  shall notify the Commissioner of Education and the Legislative
  179  Auditing Committee, when one or more of the conditions specified
  180  in subsection (1) have occurred or will occur if action is not
  181  taken to assist the local governmental entity, charter school,
  182  charter technical career center, or district school board. In
  183  addition, any state agency must, within 30 days after a
  184  determination that one or more of the conditions specified in
  185  subsection (1) have occurred or will occur if action is not
  186  taken to assist the local governmental entity, charter school,
  187  charter technical career center, or district school board,
  188  notify the Governor, charter school sponsor, charter technical
  189  career center sponsor, or the Commissioner of Education, as
  190  appropriate, and the Legislative Auditing Committee.
  191         (3) Upon notification that one or more of the conditions in
  192  subsection (1) have occurred or will occur if action is not
  193  taken to assist the local governmental entity or district school
  194  board, the Governor or his or her designee shall contact the
  195  local governmental entity or the Commissioner of Education or
  196  his or her designee shall contact the district school board to
  197  determine what actions have been taken by the local governmental
  198  entity or the district school board to resolve or prevent the
  199  condition. The Governor or the Commissioner of Education, as
  200  appropriate, shall determine whether the local governmental
  201  entity or the district school board needs state assistance to
  202  resolve or prevent the condition. If state assistance is needed,
  203  the local governmental entity or district school board is
  204  considered to be in a state of financial emergency. The Governor
  205  or the Commissioner of Education, as appropriate, has the
  206  authority to implement measures as set forth in ss. 218.50
  207  218.504 to assist the local governmental entity or district
  208  school board in resolving the financial emergency. Such measures
  209  may include, but are not limited to:
  210         (a) Requiring approval of the local governmental entity’s
  211  budget by the Governor or approval of the district school
  212  board’s budget by the Commissioner of Education.
  213         (b) Authorizing a state loan to a local governmental entity
  214  and providing for repayment of same.
  215         (c) Prohibiting a local governmental entity or district
  216  school board from issuing bonds, notes, certificates of
  217  indebtedness, or any other form of debt until such time as it is
  218  no longer subject to this section.
  219         (d) Making such inspections and reviews of records,
  220  information, reports, and assets of the local governmental
  221  entity or district school board. The appropriate local officials
  222  shall cooperate in such inspections and reviews.
  223         (e) Consulting with officials and auditors of the local
  224  governmental entity or the district school board and the
  225  appropriate state officials regarding any steps necessary to
  226  bring the books of account, accounting systems, financial
  227  procedures, and reports into compliance with state requirements.
  228         (f) Providing technical assistance to the local
  229  governmental entity or the district school board.
  230         (g)1. Establishing a financial emergency board to oversee
  231  the activities of the local governmental entity or the district
  232  school board. If a financial emergency board is established for
  233  a local governmental entity, the Governor shall appoint board
  234  members and select a chair. If a financial emergency board is
  235  established for a district school board, the State Board of
  236  Education shall appoint board members and select a chair. The
  237  financial emergency board shall adopt such rules as are
  238  necessary for conducting board business. The board may:
  239         a. Make such reviews of records, reports, and assets of the
  240  local governmental entity or the district school board as are
  241  needed.
  242         b. Consult with officials and auditors of the local
  243  governmental entity or the district school board and the
  244  appropriate state officials regarding any steps necessary to
  245  bring the books of account, accounting systems, financial
  246  procedures, and reports of the local governmental entity or the
  247  district school board into compliance with state requirements.
  248         c. Review the operations, management, efficiency,
  249  productivity, and financing of functions and operations of the
  250  local governmental entity or the district school board.
  251         d. Consult with other governmental entities for the
  252  consolidation of all administrative direction and support
  253  services, including, but not limited to, services for asset
  254  sales, economic and community development, building inspections,
  255  parks and recreation, facilities management, engineering and
  256  construction, insurance coverage, risk management, planning and
  257  zoning, information systems, fleet management, and purchasing.
  258         2. The recommendations and reports made by the financial
  259  emergency board must be submitted to the Governor for local
  260  governmental entities or to the Commissioner of Education and
  261  the State Board of Education for district school boards for
  262  appropriate action.
  263         (h) Requiring and approving a plan, to be prepared by
  264  officials of the local governmental entity or the district
  265  school board in consultation with the appropriate state
  266  officials, prescribing actions that will cause the local
  267  governmental entity or district school board to no longer be
  268  subject to this section. The plan must include, but need not be
  269  limited to:
  270         1. Provision for payment in full of obligations outlined in
  271  subsection (1), designated as priority items, that are currently
  272  due or will come due.
  273         2. Establishment of priority budgeting or zero-based
  274  budgeting in order to eliminate items that are not affordable.
  275         3. The prohibition of a level of operations which can be
  276  sustained only with nonrecurring revenues.
  277         4. The consolidation, sourcing, or discontinuance of all
  278  administrative direction and support services, including, but
  279  not limited to, services for asset sales, economic and community
  280  development, building inspections, parks and recreation,
  281  facilities management, engineering and construction, insurance
  282  coverage, risk management, planning and zoning, information
  283  systems, fleet management, and purchasing with another
  284  governmental entity.
  285         (4)(a) Upon notification that one or more of the conditions
  286  in subsection (1) have occurred or will occur if action is not
  287  taken to assist the charter school, the charter school sponsor
  288  or the sponsor’s designee and the Commissioner of Education
  289  shall contact the charter school governing body to determine
  290  what actions have been taken by the charter school governing
  291  body to resolve or prevent the condition. The Commissioner of
  292  Education has the authority to require and approve a financial
  293  recovery plan, to be prepared by the charter school governing
  294  body, prescribing actions that will resolve or prevent the
  295  condition.
  296         (b) Upon notification that one or more of the conditions in
  297  subsection (1) have occurred or will occur if action is not
  298  taken to assist the charter technical career center, the charter
  299  technical career center sponsor or the sponsor’s designee and
  300  the Commissioner of Education shall contact the charter
  301  technical career center governing body to determine what actions
  302  have been taken by the governing body to resolve or prevent the
  303  condition. The Commissioner of Education may require and approve
  304  a financial recovery plan, to be prepared by the charter
  305  technical career center governing body, prescribing actions that
  306  will resolve or prevent the condition.
  307         (c) The Commissioner of Education shall determine if the
  308  charter school or charter technical career center needs a
  309  financial recovery plan to resolve the condition. If the
  310  Commissioner of Education determines that a financial recovery
  311  plan is needed, the charter school or charter technical career
  312  center is considered to be in a state of financial emergency.
  313  
  314  The Department of Education, with the involvement of sponsors,
  315  charter schools, and charter technical career centers, shall
  316  establish guidelines for developing a financial recovery plan.
  317         (5) A local governmental entity or district school board
  318  may not seek application of laws under the bankruptcy provisions
  319  of the United States Constitution except with the prior approval
  320  of the Governor for local governmental entities or the
  321  Commissioner of Education for district school boards.
  322         Section 3. This act shall take effect July 1, 2010.