CS for SB 90                                     First Engrossed
       
       
       
       
       
       
       
       
       201190e1
       
    1                        A bill to be entitled                      
    2         An act relating to local government; amending s.
    3         170.01, F.S.; clarifying that certain assessments must
    4         be approved by a majority vote of certain voting
    5         electors; amending s. 163.07, F.S.; requiring a plan
    6         of a county or municipality to improve the efficiency,
    7         accountability, and coordination of the delivery of
    8         local government services to include a plan for the
    9         consolidation of all administrative direction and
   10         support services if the county or municipality is
   11         subject to review and oversight by the Governor;
   12         amending s. 218.503, F.S.; authorizing a financial
   13         emergency review board for a local governmental entity
   14         or district school board to consult with other
   15         governmental entities for the consolidation of all
   16         administrative direction and support services;
   17         authorizing the Governor or Commissioner of Education
   18         to require a local governmental entity or district
   19         school board to develop a plan implementing the
   20         consolidation, sourcing, or discontinuance of all
   21         administrative direction and support services;
   22         providing that the members of the governing body of a
   23         local governmental entity or the members of a district
   24         school board who fail to resolve a state of financial
   25         emergency are subject to suspension or removal from
   26         office; providing an effective date.
   27  
   28  Be It Enacted by the Legislature of the State of Florida:
   29  
   30         Section 1. Subsection (3) of section 170.01, Florida
   31  Statutes, is amended to read:
   32         170.01 Authority for providing improvements and levying and
   33  collecting special assessments against property benefited.—
   34         (3) Any municipality, subject to the approval by of a
   35  majority vote of the affected property owners voting in an
   36  election, may levy and collect special assessments against
   37  property benefited for the purpose of stabilizing and improving:
   38         (a) Retail business districts,
   39         (b) Wholesale business districts, or
   40         (c) Nationally recognized historic districts,
   41  
   42  or any combination of such districts, through promotion,
   43  management, marketing, and other similar services in such
   44  districts of the municipality. This subsection does not
   45  authorize a municipality to use bond proceeds to fund ongoing
   46  operations of these districts.
   47         Section 2. Section 163.07, Florida Statutes, is amended to
   48  read:
   49         163.07 Efficiency and accountability in local government
   50  services.—
   51         (1) The intent of this section is to provide and encourage
   52  a process that will:
   53         (a) Allow municipalities and counties to resolve conflicts
   54  among local jurisdictions regarding the delivery and financing
   55  of local services.
   56         (b) Increase local government efficiency and
   57  accountability.
   58         (c) Provide greater flexibility in the use of local revenue
   59  sources for local governments involved in the process.
   60         (2) Any county or combination of counties, and the
   61  municipalities therein, may use the procedures provided by this
   62  section to develop and adopt a plan to improve the efficiency,
   63  accountability, and coordination of the delivery of local
   64  government services. The development of such a plan may be
   65  initiated by a resolution adopted by a majority vote of the
   66  governing body of each of the counties involved, by resolutions
   67  adopted by a majority vote of the governing bodies of a majority
   68  of the municipalities within each county, or by resolutions
   69  adopted by a majority vote of the governing bodies of the
   70  municipality or combination of municipalities representing a
   71  majority of the municipal population of each county. The
   72  resolution shall create a commission which will be responsible
   73  for developing the plan. The resolution shall specify the
   74  composition of the commission, which shall include
   75  representatives of county and municipal governments, of any
   76  affected special districts, and of any other relevant local
   77  government entities or agencies. The resolution must include a
   78  proposed timetable for development of the plan and must specify
   79  the local government support and personnel services that will be
   80  made available to the representatives developing the plan.
   81         (3) Upon adoption of a resolution or resolutions as
   82  provided in subsection (2), the designated representatives shall
   83  develop a plan for delivery of local government services. The
   84  plan must:
   85         (a) Designate the areawide and local government services
   86  that are the subject of the plan.
   87         (b) Describe the existing organization of such services and
   88  the means of financing the services, and create a reorganization
   89  of such services and the financing thereof that will meet the
   90  goals of this section.
   91         (c) Designate the local agency that should be responsible
   92  for the delivery of each service.
   93         (d) Designate those services that should be delivered
   94  regionally or countywide. No provision of the plan shall operate
   95  to restrict the power of a municipality to finance and deliver
   96  services in addition to, or at a higher level than, the services
   97  designated for regional or countywide delivery under this
   98  paragraph.
   99         (e) Provide means to reduce the cost of providing local
  100  services and enhance the accountability of service providers.
  101         (f) Include a multiyear capital outlay plan for
  102  infrastructure.
  103         (g) Specifically describe any expansion of municipal
  104  boundaries that would further the goals of this section. Any
  105  area proposed to be annexed must meet the standards for
  106  annexation provided in chapter 171. The plan shall not contain
  107  any provision for contraction of municipal boundaries or
  108  elimination of any municipality.
  109         (h) Provide specific procedures for modification or
  110  termination of the plan.
  111         (i) Specify any special act modifications which must be
  112  made to effectuate the plan.
  113         (j) Specify the effective date of the plan.
  114         (4)(a) A plan developed pursuant to this section must
  115  conform to all comprehensive plans that have been found to be in
  116  compliance under part II of this chapter, for the local
  117  governments participating in the plan.
  118         (b) No provision of a plan developed pursuant to this
  119  section shall restrict the authority of any state or regional
  120  governmental agency to perform any duty required to be performed
  121  by that agency by law.
  122         (5)(a) A plan developed pursuant to this section must be
  123  approved by a majority vote of the governing body of each county
  124  involved in the plan, and by a majority vote of the governing
  125  bodies of a majority of municipalities in each county, and by a
  126  majority vote of the governing bodies of the municipality or
  127  municipalities that represent a majority of the municipal
  128  population of each county.
  129         (b) After approval by the county and municipal governing
  130  bodies as required by paragraph (a), the plan shall be submitted
  131  for referendum approval in a countywide election in each county
  132  involved. The plan shall not take effect unless approved by a
  133  majority of the electors of each county who vote in the
  134  referendum, and also by a majority of the electors of the
  135  municipalities that represent a majority of the municipal
  136  population of each county who vote in the referendum. If
  137  approved by the electors as required by this paragraph, the plan
  138  shall take effect on the date specified in the plan.
  139         (6) A plan developed pursuant to this section by a county
  140  or municipality that is subject to review and oversight by the
  141  Governor pursuant to s. 218.503 must include a plan for the
  142  consolidation of all administrative direction and support
  143  services, including, but not limited to, services for asset
  144  sales, economic and community development, building inspections,
  145  parks and recreation, facilities management, engineering and
  146  construction, insurance coverage, risk management, planning and
  147  zoning, information systems, fleet management, and purchasing.
  148         (7)(6) If the plan calls for merger or dissolution of
  149  special districts, such merger or dissolution shall comply with
  150  the provisions of chapter 189.
  151         (8)(7) If a plan developed pursuant to this section
  152  includes areas proposed for municipal annexation which meet the
  153  standards for annexation provided in chapter 171, such
  154  annexation shall take effect upon approval of the plan as
  155  provided in this section, notwithstanding the procedures for
  156  approval of municipal annexation specified in chapter 171.
  157         Section 3. Section 218.503, Florida Statutes, is amended to
  158  read:
  159         218.503 Determination of financial emergency.—
  160         (1) Local governmental entities, charter schools, charter
  161  technical career centers, and district school boards shall be
  162  subject to review and oversight by the Governor, the charter
  163  school sponsor, the charter technical career center sponsor, or
  164  the Commissioner of Education, as appropriate, when any one of
  165  the following conditions occurs:
  166         (a) Failure within the same fiscal year in which due to pay
  167  short-term loans or failure to make bond debt service or other
  168  long-term debt payments when due, as a result of a lack of
  169  funds.
  170         (b) Failure to pay uncontested claims from creditors within
  171  90 days after the claim is presented, as a result of a lack of
  172  funds.
  173         (c) Failure to transfer at the appropriate time, due to
  174  lack of funds:
  175         1. Taxes withheld on the income of employees; or
  176         2. Employer and employee contributions for:
  177         a. Federal social security; or
  178         b. Any pension, retirement, or benefit plan of an employee.
  179         (d) Failure for one pay period to pay, due to lack of
  180  funds:
  181         1. Wages and salaries owed to employees; or
  182         2. Retirement benefits owed to former employees.
  183         (e) An unreserved or total fund balance or retained
  184  earnings deficit, or unrestricted or total net assets deficit,
  185  as reported on the balance sheet or statement of net assets on
  186  the general purpose or fund financial statements, for which
  187  sufficient resources of the local governmental entity, charter
  188  school, charter technical career center, or district school
  189  board, as reported on the balance sheet or statement of net
  190  assets on the general purpose or fund financial statements, are
  191  not available to cover the deficit. Resources available to cover
  192  reported deficits include net assets that are not otherwise
  193  restricted by federal, state, or local laws, bond covenants,
  194  contractual agreements, or other legal constraints. Fixed or
  195  capital assets, the disposal of which would impair the ability
  196  of a local governmental entity, charter school, charter
  197  technical career center, or district school board to carry out
  198  its functions, are not considered resources available to cover
  199  reported deficits.
  200         (2) A local governmental entity shall notify the Governor
  201  and the Legislative Auditing Committee; a charter school shall
  202  notify the charter school sponsor, the Commissioner of
  203  Education, and the Legislative Auditing Committee; a charter
  204  technical career center shall notify the charter technical
  205  career center sponsor, the Commissioner of Education, and the
  206  Legislative Auditing Committee; and a district school board
  207  shall notify the Commissioner of Education and the Legislative
  208  Auditing Committee, when one or more of the conditions specified
  209  in subsection (1) have occurred or will occur if action is not
  210  taken to assist the local governmental entity, charter school,
  211  charter technical career center, or district school board. In
  212  addition, any state agency must, within 30 days after a
  213  determination that one or more of the conditions specified in
  214  subsection (1) have occurred or will occur if action is not
  215  taken to assist the local governmental entity, charter school,
  216  charter technical career center, or district school board,
  217  notify the Governor, charter school sponsor, charter technical
  218  career center sponsor, or the Commissioner of Education, as
  219  appropriate, and the Legislative Auditing Committee.
  220         (3) Upon notification that one or more of the conditions in
  221  subsection (1) have occurred or will occur if action is not
  222  taken to assist the local governmental entity or district school
  223  board, the Governor or his or her designee shall contact the
  224  local governmental entity or the Commissioner of Education or
  225  his or her designee shall contact the district school board to
  226  determine what actions have been taken by the local governmental
  227  entity or the district school board to resolve or prevent the
  228  condition. The Governor or the Commissioner of Education, as
  229  appropriate, shall determine whether the local governmental
  230  entity or the district school board needs state assistance to
  231  resolve or prevent the condition. If state assistance is needed,
  232  the local governmental entity or district school board is
  233  considered to be in a state of financial emergency. The Governor
  234  or the Commissioner of Education, as appropriate, has the
  235  authority to implement measures as set forth in ss. 218.50
  236  218.504 to assist the local governmental entity or district
  237  school board in resolving the financial emergency. Such measures
  238  may include, but are not limited to:
  239         (a) Requiring approval of the local governmental entity’s
  240  budget by the Governor or approval of the district school
  241  board’s budget by the Commissioner of Education.
  242         (b) Authorizing a state loan to a local governmental entity
  243  and providing for repayment of same.
  244         (c) Prohibiting a local governmental entity or district
  245  school board from issuing bonds, notes, certificates of
  246  indebtedness, or any other form of debt until such time as it is
  247  no longer subject to this section.
  248         (d) Making such inspections and reviews of records,
  249  information, reports, and assets of the local governmental
  250  entity or district school board. The appropriate local officials
  251  shall cooperate in such inspections and reviews.
  252         (e) Consulting with officials and auditors of the local
  253  governmental entity or the district school board and the
  254  appropriate state officials regarding any steps necessary to
  255  bring the books of account, accounting systems, financial
  256  procedures, and reports into compliance with state requirements.
  257         (f) Providing technical assistance to the local
  258  governmental entity or the district school board.
  259         (g)1. Establishing a financial emergency board to oversee
  260  the activities of the local governmental entity or the district
  261  school board. If a financial emergency board is established for
  262  a local governmental entity, the Governor shall appoint board
  263  members and select a chair. If a financial emergency board is
  264  established for a district school board, the State Board of
  265  Education shall appoint board members and select a chair. The
  266  financial emergency board shall adopt such rules as are
  267  necessary for conducting board business. The board may:
  268         a. Make such reviews of records, reports, and assets of the
  269  local governmental entity or the district school board as are
  270  needed.
  271         b. Consult with officials and auditors of the local
  272  governmental entity or the district school board and the
  273  appropriate state officials regarding any steps necessary to
  274  bring the books of account, accounting systems, financial
  275  procedures, and reports of the local governmental entity or the
  276  district school board into compliance with state requirements.
  277         c. Review the operations, management, efficiency,
  278  productivity, and financing of functions and operations of the
  279  local governmental entity or the district school board.
  280         d. Consult with other governmental entities for the
  281  consolidation of all administrative direction and support
  282  services, including, but not limited to, services for asset
  283  sales, economic and community development, building inspections,
  284  parks and recreation, facilities management, engineering and
  285  construction, insurance coverage, risk management, planning and
  286  zoning, information systems, fleet management, and purchasing.
  287         2. The recommendations and reports made by the financial
  288  emergency board must be submitted to the Governor for local
  289  governmental entities or to the Commissioner of Education and
  290  the State Board of Education for district school boards for
  291  appropriate action.
  292         (h) Requiring and approving a plan, to be prepared by
  293  officials of the local governmental entity or the district
  294  school board in consultation with the appropriate state
  295  officials, prescribing actions that will cause the local
  296  governmental entity or district school board to no longer be
  297  subject to this section. The plan must include, but need not be
  298  limited to:
  299         1. Provision for payment in full of obligations outlined in
  300  subsection (1), designated as priority items, that are currently
  301  due or will come due.
  302         2. Establishment of priority budgeting or zero-based
  303  budgeting in order to eliminate items that are not affordable.
  304         3. The prohibition of a level of operations which can be
  305  sustained only with nonrecurring revenues.
  306         4.Provisions implementing the consolidation, sourcing, or
  307  discontinuance of all administrative direction and support
  308  services, including, but not limited to, services for asset
  309  sales, economic and community development, building inspections,
  310  parks and recreation, facilities management, engineering and
  311  construction, insurance coverage, risk management, planning and
  312  zoning, information systems, fleet management, and purchasing.
  313         (4)(a) Upon notification that one or more of the conditions
  314  in subsection (1) have occurred or will occur if action is not
  315  taken to assist the charter school, the charter school sponsor
  316  or the sponsor’s designee and the Commissioner of Education
  317  shall contact the charter school governing body to determine
  318  what actions have been taken by the charter school governing
  319  body to resolve or prevent the condition. The Commissioner of
  320  Education has the authority to require and approve a financial
  321  recovery plan, to be prepared by the charter school governing
  322  body, prescribing actions that will resolve or prevent the
  323  condition.
  324         (b) Upon notification that one or more of the conditions in
  325  subsection (1) have occurred or will occur if action is not
  326  taken to assist the charter technical career center, the charter
  327  technical career center sponsor or the sponsor’s designee and
  328  the Commissioner of Education shall contact the charter
  329  technical career center governing body to determine what actions
  330  have been taken by the governing body to resolve or prevent the
  331  condition. The Commissioner of Education may require and approve
  332  a financial recovery plan, to be prepared by the charter
  333  technical career center governing body, prescribing actions that
  334  will resolve or prevent the condition.
  335         (c) The Commissioner of Education shall determine if the
  336  charter school or charter technical career center needs a
  337  financial recovery plan to resolve the condition. If the
  338  Commissioner of Education determines that a financial recovery
  339  plan is needed, the charter school or charter technical career
  340  center is considered to be in a state of financial emergency.
  341  
  342  The Department of Education, with the involvement of sponsors,
  343  charter schools, and charter technical career centers, shall
  344  establish guidelines for developing a financial recovery plan.
  345         (5) A local governmental entity or district school board
  346  may not seek application of laws under the bankruptcy provisions
  347  of the United States Constitution except with the prior approval
  348  of the Governor for local governmental entities or the
  349  Commissioner of Education for district school boards.
  350         (6)The failure of the members of the governing body of a
  351  local governmental entity or the failure of the members of a
  352  district school board to resolve a state of financial emergency
  353  constitutes malfeasance, misfeasance, and neglect of duty for
  354  purposes of s. 7, Art. IV of the State Constitution.
  355         Section 4. This act shall take effect July 1, 2011.