Senate Bill 2426c1

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    Florida Senate - 1999                           CS for SB 2426

    By the Committee on Governmental Oversight and Productivity;
    and Senator Rossin




    302-1884-99

  1                      A bill to be entitled

  2         An act relating to legislative oversight of

  3         governmental programs; amending ss. 11.42,

  4         11.45, F.S.; defining the term "operational

  5         audit"; revising the duties of the Auditor

  6         General; transferring the Division of Public

  7         Assistance Fraud from the Auditor General to

  8         the Department of Law Enforcement;

  9         transferring, renumbering, and amending s.

10         11.50, F.S.; conforming provisions to the

11         transfer of the Division of Public Assistance

12         Fraud; amending ss. 402.3015, 414.33, 414.34,

13         414.39, 414.40, 951.28, F.S.; conforming

14         provisions to the transfer of the Division of

15         Public Assistance Fraud; amending ss. 373.589,

16         195.096, 232.44, 946.516, 283.31, F.S.;

17         revising the duties of the Auditor General;

18         providing for audits by independent certified

19         public accountants; amending s. 944.719, F.S.;

20         transferring duties from the Auditor General to

21         the Office of Program Policy Analysis and

22         Government Accountability; amending ss. 11.511,

23         11.513, F.S.; revising the duties of the Office

24         of Program Policy Analysis and Government

25         Accountability; amending ss. 112.3187,

26         112.3188, 112.31895, F.S.; eliminating the

27         Public Counsel's responsibilities associated

28         with the Whistle-blower's Act; amending s.

29         985.401, F.S.; providing for the composition of

30         the Juvenile Justice Accountability Board;

31         reassigning the board from the Joint

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  1         Legislative Auditing Committee to the

  2         Department of Juvenile Justice; amending s.

  3         218.502, F.S.; redefining the term "local

  4         governmental entity"; repealing s. 284.50(4),

  5         F.S., which provides for the Auditor General to

  6         audit state agency loss-prevention programs;

  7         repealing s. 475.045(1)(f), F.S., which

  8         provides for the Auditor General to audit the

  9         financial transactions of the Florida Real

10         Estate Commission Education and Research

11         Foundation; repealing s. 985.07, F.S., which

12         provides for the Auditor General to examine

13         some information-sharing efforts; providing an

14         effective date.

15

16  Be It Enacted by the Legislature of the State of Florida:

17

18         Section 1.  Subsections (3), (6), (8), and (9) of

19  section 11.42, Florida Statutes, are amended to read:

20         11.42  The Auditor General.--

21         (3)(a)  To carry out her or his duties the Auditor

22  General shall make all spending decisions within the annual

23  operating budget approved by the President of the Senate and

24  the Speaker of the House of Representatives. The Auditor

25  General shall employ qualified persons necessary for the

26  efficient operation of the Auditor General's office and shall

27  fix their duties and compensation and, with the approval of

28  the Legislative Auditing Committee, shall adopt and administer

29  a uniform personnel, job classification, and pay plan for such

30  employees.

31

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  1         (b)1.  No person shall be employed as a financial

  2  auditor who does not possess the qualifications to take the

  3  examination for a certificate as certified public accountant

  4  under the laws of this state, and no person shall be employed

  5  or retained as legal adviser, on either a full-time or a

  6  part-time basis, who is not a member of The Florida Bar.

  7         2.  Notwithstanding the provisions of subparagraph 1.,

  8  employees in the positions associated with the Florida

  9  Education Finance Program full-time enrollment verification

10  function that is assigned to the Auditor General pursuant to

11  s. 229.565(2) may continue to meet the job qualifications that

12  existed prior to such transfer for a period of 3 years after

13  such transfer. Thereafter, they shall meet the requirements of

14  subparagraph 1. This subparagraph is repealed on July 1, 1998.

15         (6)(a)  The headquarters of the Auditor General shall

16  be at the state capital, but to facilitate auditing and to

17  eliminate unnecessary traveling the Auditor General may

18  establish divisions and assign auditors to each division and

19  determine their duties and the areas of the state to be served

20  by the respective divisions. The Auditor General shall be

21  provided with adequate quarters to carry out the position's

22  functions in the state capital and in other areas of the

23  state.

24         (b)  All payrolls and vouchers prepared by the Auditor

25  General for the operations of the Auditor General's her or his

26  office shall be submitted directly to the Comptroller and, if

27  found to be correct, state warrants shall be issued therefor.

28         (c)  The Auditor General shall transmit to the

29  President of the Senate and the Speaker of the House of

30  Representatives by January 1 of each year a list of statutory

31  and fiscal changes recommended by audit reports. The

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  1  recommendations should be presented in two categories: one

  2  addressing substantive law and policy issues and the other

  3  addressing budget issues. The Auditor General may also

  4  transmit recommendations at other times of the year when the

  5  information would be timely and useful for the Legislature.

  6         (8)  When authorized to audit the administrative

  7  services functions of any state agency, the Auditor General

  8  shall include, as a part of that review, a statement regarding

  9  agency compliance with the minority business enterprise

10  procurement goals set forth in s. 287.0945.

11         (8)(9)  No officer or full-time employee of the office

12  of Auditor General shall actively engage in any other business

13  or profession; serve as the representative of any political

14  party or on any executive committee or other governing body

15  thereof; serve as an executive, officer, or employee of any

16  political party committee, organization, or association; or be

17  engaged on behalf of any candidate for public office in the

18  solicitation of votes or other activities in behalf of such

19  candidacy. Neither the Auditor General nor any employee of the

20  Auditor General shall become a candidate for election to

21  public office unless she or he shall first resign from office

22  or employment.

23         Section 2.  Subsections (1) and (3) and paragraph (f)

24  of subsection (7) of section 11.45, Florida Statutes, are

25  amended to read:

26         11.45  Definitions; duties; audits; reports.--

27         (1)  As used in this section, the term:

28         (a)  "County agency," for the exclusive purposes of

29  this section, means a board of county commissioners or other

30  legislative and governing body of a county, however styled,

31  including that of a consolidated or metropolitan government, a

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  1  clerk of the circuit court, a separate or ex officio clerk of

  2  the county court, a sheriff, a property appraiser, a tax

  3  collector, a supervisor of elections, or any other officer in

  4  whom any portion of the fiscal duties of the above are under

  5  law separately placed. Each county agency is a local

  6  governmental entity for purposes of subparagraph (3)(a)4.

  7         (b)  "Financial audit" means an examination of

  8  financial statements in order to express an opinion on the

  9  fairness with which they present financial position, results

10  of operations, and changes in financial position in conformity

11  with generally accepted accounting principles and an

12  examination to determine whether operations are properly

13  conducted in accordance with legal and regulatory

14  requirements. Financial audits must be conducted in accordance

15  with generally accepted auditing standards and governmental

16  auditing standards as adopted by the Board of Accountancy.

17         (c)  "Governmental entity" means a state agency, a

18  county agency, or any other entity, however styled, that

19  independently exercises any type of state or local

20  governmental function.

21         (d)  "Local governmental entity" means a county agency,

22  municipality, or special district as defined in s. 189.403,

23  but does not include any housing authority established under

24  chapter 421.

25         (e)  "Management letter" means a statement of the

26  auditor's comments and recommendations.

27         (f)  "Operational audit" means a financial-related

28  audit whose purpose is to evaluate management's performance in

29  administering assigned responsibilities in accordance with

30  applicable laws, administrative rules, and other guidelines

31  and to determine the extent to which the internal control, as

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  1  designed and placed in operation, promotes and encourages the

  2  achievement of management's control objectives in the

  3  categories of compliance, economic and efficient operations,

  4  reliability of financial records and reports, and safeguarding

  5  of assets.

  6         (g)(f)  "Performance audit" means an examination of a

  7  program, activity, or function of a governmental entity,

  8  conducted in accordance with applicable government auditing

  9  standards or auditing and evaluation standards of other

10  appropriate authoritative bodies. The term includes an

11  examination of issues related to:

12         1.  Economy, efficiency, or effectiveness of the

13  program.

14         2.  Structure or design of the program to accomplish

15  its goals and objectives.

16         3.  Adequacy of the program to meet the needs

17  identified by the Legislature or governing body.

18         4.  Alternative methods of providing program services

19  or products.

20         5.  Goals, objectives, and performance measures used by

21  the agency to monitor and report program accomplishments.

22         6.  The accuracy or adequacy of public documents,

23  reports, or requests prepared under the program by state

24  agencies.

25         7.  Compliance of the program with appropriate

26  policies, rules, or laws.

27         8.  Any other issues related to governmental entities

28  as directed by the Legislative Auditing Committee.

29         (h)(g)  "Political subdivision" means a separate agency

30  or unit of local government created or established by law and

31  includes, but is not limited to, the following and the

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  1  officers thereof:  authority, board, branch, bureau, city,

  2  commission, consolidated government, county, department,

  3  district, institution, metropolitan government, municipality,

  4  office, officer, public corporation, town, or village.

  5         (i)(h)  "State agency" means a separate agency or unit

  6  of state government created or established by law and

  7  includes, but is not limited to, the following and the

  8  officers thereof: authority, board, branch, bureau,

  9  commission, department, division, institution, office,

10  officer, or public corporation, as the case may be, except any

11  such agency or unit other than the Florida Public Service

12  Commission within the legislative branch of state government.

13         (3)(a)1.  The Auditor General shall annually make

14  financial audits of the accounts and records of all state

15  agencies, as defined in this section, of all district school

16  boards, and of all district boards of trustees of community

17  colleges. This section does not limit the Auditor General's

18  discretionary authority to conduct performance audits of these

19  governmental entities as authorized in subparagraph 2. A

20  district school board may select an independent auditor to

21  perform a financial audit as defined in paragraph (1)(b)

22  notwithstanding the notification provisions of this section.

23  In addition, a district school board may employ an internal

24  auditor to perform ongoing financial verification of the

25  financial records of a school district who must report

26  directly to the district school board or its designee.

27         2.  Each charter school established under s. 228.056

28  shall have an annual financial audit of its accounts and

29  records completed within 12 months after the end of its fiscal

30  year by an independent certified public accountant retained by

31  it and paid from its funds. The independent certified public

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  1  accountant who is selected to perform an annual financial

  2  audit of the charter school shall provide a copy of the audit

  3  to the district school board, the Department of Education, and

  4  the Auditor General. A management letter must be prepared and

  5  included as a part of each financial audit report.

  6         3.2.  The Auditor General may at any time make

  7  financial audits and performance audits of the accounts and

  8  records of all governmental entities created pursuant to law.

  9  The audits referred to in this subparagraph must be made

10  whenever determined by the Auditor General, whenever directed

11  by the Legislative Auditing Committee, or whenever otherwise

12  required by law or concurrent resolution.  A district school

13  board, expressway authority, or bridge authority may require

14  that the annual financial audit of its accounts and records be

15  completed within 12 months after the end of its fiscal year.

16  If the Auditor General is unable to meet that requirement, the

17  Auditor General shall notify the school board, the expressway

18  authority, or the bridge authority pursuant to subparagraph 5.

19  4.

20         4.3.  The Office of Program Policy Analysis and

21  Government Accountability within the Office of the Auditor

22  General shall maintain a schedule of performance audits of

23  state programs. In conducting a performance audit of a state

24  program, the Office of Program Policy Analysis and Government

25  Accountability, when appropriate, shall identify and comment

26  upon alternatives for accomplishing the goals of the program

27  being audited.  Such alternatives may include funding

28  techniques and, if appropriate, must describe how other states

29  or governmental units accomplish similar goals.

30         5.4.  If by July 1 in any fiscal year a district school

31  board or local governmental entity has not been notified that

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  1  a financial audit for that fiscal year will be performed by

  2  the Auditor General pursuant to subparagraph 3. 2., each

  3  municipality with either revenues or expenditures of more than

  4  $100,000, each special district with either revenues or

  5  expenditures of more than $50,000, and each county agency

  6  shall, and each district school board may, require that an

  7  annual financial audit of its accounts and records be

  8  completed, within 12 months after the end of its respective

  9  fiscal year, by an independent certified public accountant

10  retained by it and paid from its public funds.  An independent

11  certified public accountant who is selected to perform an

12  annual financial audit of a school district must report

13  directly to the district school board or its designee. A

14  management letter must be prepared and included as a part of

15  each financial audit report. Each local government finance

16  commission, board, or council, and each municipal power

17  corporation, created as a separate legal or administrative

18  entity by interlocal agreement under s. 163.01(7), shall

19  provide the Auditor General, within 12 months after the end of

20  its fiscal year, with an annual financial audit report of its

21  accounts and records and a written statement or explanation or

22  rebuttal concerning the auditor's comments, including

23  corrective action to be taken. The county audit shall be one

24  document that includes a separate audit of each county agency.

25  The county audit must include an audit of the deposits into

26  and expenditures from the Public Records Modernization Trust

27  Fund. The Auditor General shall tabulate the results of the

28  audits of the Public Records Modernization Trust Fund and

29  report a summary of the audits to the Legislature annually.

30         6.5.  The governing body of a municipality, or a

31  special district, or charter school must establish an auditor

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  1  selection committee and competitive auditor selection

  2  procedures. The governing board may elect to use its own

  3  competitive auditor selection procedures or the procedures

  4  outlined in subparagraph 7. 6.

  5         7.6.  The governing body of a noncharter county or

  6  district school board that elects to use a certified public

  7  accountant other than the Auditor General is responsible for

  8  selecting an independent certified public accountant to audit

  9  the county agencies of the county or district school board

10  according to the following procedure:

11         a.  For each noncharter county, an auditor selection

12  committee must be established, consisting of the county

13  officers elected pursuant to s. 1(d), Art. VIII of the State

14  Constitution, and one member of the board of county

15  commissioners or its designee.

16         b.  The committee shall publicly announce, in a uniform

17  and consistent manner, each occasion when auditing services

18  are required to be purchased. Public notice must include a

19  general description of the audit and must indicate how

20  interested certified public accountants can apply for

21  consideration.

22         c.  The committee shall encourage firms engaged in the

23  lawful practice of public accounting who desire to provide

24  professional services to submit annually a statement of

25  qualifications and performance data.

26         d.  Any certified public accountant desiring to provide

27  auditing services must first be qualified pursuant to law. The

28  committee shall make a finding that the firm or individual to

29  be employed is fully qualified to render the required

30  services. Among the factors to be considered in making this

31

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  1  finding are the capabilities, adequacy of personnel, past

  2  record, and experience of the firm or individual.

  3         e.  The committee shall adopt procedures for the

  4  evaluation of professional services, including, but not

  5  limited to, capabilities, adequacy of personnel, past record,

  6  experience, results of recent external quality control

  7  reviews, and such other factors as may be determined by the

  8  committee to be applicable to its particular requirements.

  9         f.  The public must not be excluded from the

10  proceedings under this subparagraph.

11         g.  The committee shall evaluate current statements of

12  qualifications and performance data on file with the

13  committee, together with those that may be submitted by other

14  firms regarding the proposed audit, and shall conduct

15  discussions with, and may require public presentations by, no

16  fewer than three firms regarding their qualifications,

17  approach to the audit, and ability to furnish the required

18  services.

19         h.  The committee shall select no fewer than three

20  firms deemed to be the most highly qualified to perform the

21  required services after considering such factors as the

22  ability of professional personnel; past performance;

23  willingness to meet time requirements; location; recent,

24  current, and projected workloads of the firms; and the volume

25  of work previously awarded to the firm by the agency, with the

26  object of effecting an equitable distribution of contracts

27  among qualified firms, provided such distribution does not

28  violate the principle of selection of the most highly

29  qualified firms.  If fewer than three firms desire to perform

30  the services, the committee shall recommend such firms as it

31  determines to be qualified.

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  1         i.  If the governing board receives more than one

  2  proposal for the same engagement, the board may rank, in order

  3  of preference, the firms to perform the engagement.  The firm

  4  ranked first may then negotiate a contract with the board

  5  giving, among other things, a basis of its fee for that

  6  engagement.  If the board is unable to negotiate a

  7  satisfactory contract with that firm, negotiations with that

  8  firm shall be formally terminated, and the board shall then

  9  undertake negotiations with the second-ranked firm. Failing

10  accord with the second-ranked firm, negotiations shall then be

11  terminated with that firm and undertaken with the third-ranked

12  firm. Negotiations with the other ranked firms shall be

13  undertaken in the same manner.  The board, in negotiating with

14  firms, may reopen formal negotiations with any one of the

15  three top-ranked firms, but it may not negotiate with more

16  than one firm at a time. The board shall also negotiate on the

17  scope and quality of services. In making such determination,

18  the board shall conduct a detailed analysis of the cost of the

19  professional services required in addition to considering

20  their scope and complexity. For contracts over $50,000, the

21  board shall require the firm receiving the award to execute a

22  truth-in-negotiation certificate stating that the rates of

23  compensation and other factual unit costs supporting the

24  compensation are accurate, complete, and current at the time

25  of contracting. Such certificate shall also contain a

26  description and disclosure of any understanding that places a

27  limit on current or future years' audit contract fees,

28  including any arrangements under which fixed limits on fees

29  will not be subject to reconsideration if unexpected

30  accounting or auditing issues are encountered. Such

31  certificate shall also contain a description of any services

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  1  rendered by the certified public accountant or firm of

  2  certified public accountants at rates or terms that are not

  3  customary.  Any auditing service contract under which such a

  4  certificate is required must contain a provision that the

  5  original contract price and any additions thereto shall be

  6  adjusted to exclude any significant sums by which the board

  7  determines the contract price was increased due to inaccurate

  8  or incomplete factual unit costs.  All such contract

  9  adjustments shall be made within 1 year following the end of

10  the contract.

11         j.  If the board is unable to negotiate a satisfactory

12  contract with any of the selected firms, the committee shall

13  select additional firms, and the board shall continue

14  negotiations in accordance with this subsection until an

15  agreement is reached.

16         8.7.  At the conclusion of the audit field work, the

17  independent certified public accountant shall discuss with the

18  head of each local governmental entity or the chair's designee

19  or with the chair of the district school board or the chair's

20  designee, or with the chair of the board of the charter school

21  or the chair's designee, as appropriate, all of the auditor's

22  comments that will be included in the audit report.  If the

23  officer is not available to discuss the auditor's comments,

24  their discussion is presumed when the comments are delivered

25  in writing to his or her office. The auditor shall notify each

26  member of the governing body of a local governmental entity

27  for which deteriorating financial conditions exist which may

28  cause a condition described in s. 218.503(1) to occur if

29  actions are not taken to address such conditions.

30         9.8.  The officer's written statement of explanation or

31  rebuttal concerning the auditor's comments, including

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  1  corrective action to be taken, must be filed with the

  2  governing body of the local governmental entity, or district

  3  school board, or charter school within 30 days after the

  4  delivery of the financial audit report.

  5         10.9.  The Auditor General, in consultation with the

  6  Board of Accountancy, shall adopt rules for the form and

  7  conduct of all financial audits subject to this section and

  8  conducted by independent certified public accountants local

  9  governmental entity audits. The rules for audits of local

10  governmental entities and district school boards must include,

11  but are not limited to, requirements for the reporting of

12  information necessary to carry out the purposes of the Local

13  Government Financial Emergencies Act as stated in s. 218.501.

14         11.10.  Any local governmental entity or district

15  school board financial audit report required under

16  subparagraph 5. 4. or charter school financial audit report

17  required under subparagraph 2. and the officer's written

18  statement of explanation or rebuttal concerning the auditor's

19  comments, including corrective action to be taken, must be

20  submitted to the Auditor General within 45 days after delivery

21  of the audit report to the local governmental entity, or

22  district school board, or charter school, but no later than 12

23  months after the end of the fiscal year. If the Auditor

24  General does not receive the financial audit report within the

25  prescribed period, he or she must notify the Legislative

26  Auditing Committee that the governmental entity has not

27  complied with this subparagraph. Following notification of

28  failure to submit the required audit report or items required

29  by rule adopted by the Auditor General, a hearing must be

30  scheduled by rule of the committee. After the hearing, the

31  committee shall determine which local governmental entities

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  1  will be subjected to further state action.  If it finds that

  2  one or more local governmental entities should be subjected to

  3  further state action, the committee shall:

  4         a.  In the case of a local governmental entity, request

  5  the Department of Revenue and the Department of Banking and

  6  Finance to withhold any funds payable to such governmental

  7  entity until the required financial audit is received by the

  8  Auditor General.

  9         b.  In the case of a special district, notify the

10  Department of Community Affairs that the special district has

11  failed to provide the required audits.  Upon receipt of

12  notification, the Department of Community Affairs shall

13  proceed pursuant to ss. 189.421 and 189.422.

14         12.11.a.  The Auditor General, in consultation with the

15  Board of Accountancy, shall review all audit reports submitted

16  by local governmental entities or district school boards

17  pursuant to subparagraph 10. 9. The Auditor General shall

18  request any significant items that were omitted in violation

19  of a rule adopted by the Auditor General. The items must be

20  provided within 45 days after the date of the request. If the

21  Auditor General does not receive the requested items, he or

22  she shall notify the Joint Legislative Auditing Committee.

23         b.  The Auditor General shall notify the Governor and

24  the Joint Legislative Auditing Committee of any audit report

25  reviewed by the Auditor General which contains a statement

26  that the local governmental entity or district school board is

27  in a state of financial emergency as provided in s. 218.503.

28  If the Auditor General, in reviewing any audit report,

29  identifies additional information which indicates that the

30  local governmental entity or district school board may be in a

31  state of financial emergency as provided in s. 218.503, the

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  1  Auditor General shall request appropriate clarification from

  2  the local governmental entity or district school board.  The

  3  requested clarification must be provided within 45 days after

  4  the date of the request.  If the Auditor General does not

  5  receive the requested clarification, he or she shall notify

  6  the Joint Legislative Auditing Committee.  If, after obtaining

  7  the requested clarification, the Auditor General determines

  8  that the local governmental entity or district school board is

  9  in a state of financial emergency as provided in s. 218.503,

10  he or she shall notify the Governor and the Joint Legislative

11  Auditing Committee.

12         c.  The Auditor General shall annually compile and

13  transmit to the President of the Senate, the Speaker of the

14  House of Representatives, and the Joint Legislative Auditing

15  Committee a summary of significant findings and financial

16  trends identified in audits of local government entities

17  performed by the independent certified public accountants.

18         13.12.  In conducting a performance audit of any

19  agency, the Auditor General shall use the Agency Strategic

20  Plan of the agency in evaluating the performance of the

21  agency.

22         (b)  The Legislative Auditing Committee may authorize

23  and direct the Auditor General to make a financial audit of

24  any municipality or independent agency or authority of any

25  municipality within the state, and the committee shall direct

26  the Auditor General to make a financial audit of any

27  municipality such audit whenever petitioned to do so by at

28  least 20 percent of the electors of that any municipality.

29  The supervisor of elections of the county in which the

30  municipality is located shall certify whether or not the

31  petition contains the signatures of at least 20 percent of the

                                  16

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  1  electors of the municipality. After the completion of the

  2  audit, the auditor General shall determine whether the

  3  municipality has the fiscal resources necessary to pay the

  4  cost of the audit. The municipality shall pay the cost of the

  5  audit within 90 days after the Auditor General's determination

  6  that the municipality has the available resources. If The

  7  expenses of such audit shall be paid by the municipality and,

  8  in the event the municipality fails to pay the cost of the

  9  audit, the Department of Revenue shall, upon certification of

10  the Auditor General, withhold from that portion of the

11  municipal financial assistance trust fund for municipalities

12  which is derived from the cigarette tax imposed under chapter

13  210, and which is distributable to such municipality, a sum

14  sufficient to pay the cost of the audit and shall deposit that

15  sum into the General Revenue Fund of the state.

16         (c)  The Auditor General shall at least every 2 years

17  make a performance audit of the local government financial

18  reporting system, which, for the purpose of this chapter,

19  means the reporting provisions of this subsection and

20  subsection (4); s. 27.3455(1) and (2); part VII of chapter

21  112; s. 163.05; s. 166.241; chapter 189; parts III and V of

22  chapter 218; and s. 925.037(5). The performance audit shall

23  analyze each component of the reporting system separately and

24  analyze the reporting system as a whole. The purpose of such

25  an audit is to determine the accuracy, efficiency, and

26  effectiveness of the reporting system in achieving its goals

27  and objectives and to make recommendations to the local

28  governments, the Governor, and the Legislature as to how the

29  reporting system can be improved and how program costs can be

30  reduced. Such goals and objectives must include, but need not

31  be limited to, the timely, accurate, uniform, and

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  1  cost-effective accumulation of financial and other information

  2  that can be used by the members of the Legislature and other

  3  appropriate officials in order to:

  4         1.  Compare and contrast revenue sources and

  5  expenditures of local governmental entities;

  6         2.  Assess the fiscal impact of the formation,

  7  dissolution, and activity of special districts;

  8         3.  Evaluate the fiscal impact of state mandates on

  9  local governmental entities;

10         4.  Assess financial or economic conditions of local

11  governmental entities; and

12         5.  Improve communication and coordination among state

13  agencies and local governmental entities.

14         (d)  Whenever a local governmental entity requests the

15  Auditor General to conduct an audit of all or part of its

16  operations and the Auditor General conducts the audit under

17  his or her own authority or at the direction of the

18  Legislative Auditing Committee conducts the audit, the

19  expenses of the audit shall be paid for by the local

20  governmental entity. The Auditor General shall estimate the

21  cost of the audit. Fifty percent of the cost estimate shall be

22  paid by the local governmental entity before the initiation of

23  the audit and deposited into the General Revenue Fund of the

24  state. After the completion of the audit, the Auditor General

25  shall forward the actual cost of the audit to the local

26  governmental entity. The local governmental entity shall remit

27  the remainder of the cost of the audit to the Auditor General

28  for deposit into the General Revenue Fund of the state. If the

29  local governmental entity fails to pay the cost of the audit,

30  the Auditor General shall notify the Legislative Auditing

31

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  1  Committee, which may implement the provisions specified in s.

  2  11.45(3)(a)10.

  3         (7)

  4         (f)  No later than 18 months after the release of a

  5  performance audit report, the agencies which are the subject

  6  of that report shall provide data and other information that

  7  describes with specificity what the agencies have done to

  8  respond to the recommendations contained in the report.  The

  9  Auditor General or the Office of Program Policy Analysis and

10  Government Accountability may verify the data and information

11  provided by the agencies.  If the data and information

12  provided by the agencies are deemed sufficient and accurate,

13  the Auditor General or the Office of Program Policy Analysis

14  and Government Accountability shall report to the Joint

15  Legislative Auditing Committee and to the legislative standing

16  committees concerned with the subject areas of the audit.  The

17  report shall include a summary of the agencies' responses, the

18  evaluation of those responses, and any recommendations deemed

19  to be appropriate. The follow-up report required by this

20  paragraph may be waived by joint action of the President of

21  the Senate and the Speaker of the House of Representatives

22  upon the recommendation of the Director of the Office of

23  Program Policy Analysis and Government Accountability.

24         Section 3.  All statutory powers, duties, and functions

25  related to investigating public assistance fraud are

26  transferred from the Auditor General to the Department of Law

27  Enforcement by a type two transfer, as defined in section

28  20.06, Florida Statutes, effective October 1, 1999.

29         Section 4.  Section 11.50, Florida Statutes, is

30  transferred, renumbered as section 943.401, Florida Statutes,

31  and amended to read:

                                  19

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  1         943.401 11.50  Division of Public Assistance Fraud.--

  2         (1)(a)  The Department of Law Enforcement Auditor

  3  General shall investigate, on his or her own initiative or

  4  when required by the Legislative Auditing Committee, public

  5  assistance made under the provisions of chapter 409 or chapter

  6  414. In the course of such investigation the Department of Law

  7  Enforcement Auditor General shall examine all records,

  8  including electronic benefits transfer records and make

  9  inquiry of all persons who may have knowledge as to any

10  irregularity incidental to the disbursement of public moneys,

11  food stamps, or other items or benefits authorizations to

12  recipients.

13         (b)  All public assistance recipients, as a condition

14  precedent to qualification for assistance under the provisions

15  of chapter 409 or chapter 414, shall first give in writing, to

16  the Agency for Health Care Administration, or the Department

17  of Health, and the Department of Children and Family

18  Rehabilitative Services, as appropriate, and to the Department

19  of Law Enforcement Division of Public Assistance Fraud,

20  consent to make inquiry of past or present employers and

21  records, financial or otherwise.

22         (2)  In the conduct of such investigation the

23  Department of Law Enforcement Auditor General may employ

24  persons having such qualifications as are useful in the

25  performance of this duty, and those individuals shall be

26  assigned to the Division of Public Assistance Fraud which is

27  hereby created within the office of the Auditor General.

28         (3)  The results of such investigation shall be

29  reported by the Department of Law Enforcement Auditor General

30  to the appropriate legislative committees Auditing Committee,

31  the Agency for Health Care Administration, the Department of

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  1  Health, and the Department of Children and Family

  2  Rehabilitative Services, and to such others as the Department

  3  of Law Enforcement Legislative Auditing Committee or the

  4  Auditor General may determine.

  5         (4)  The Department of Health and the Department of

  6  Children and Family Rehabilitative Services shall report to

  7  the Department of Law Enforcement Auditor General the final

  8  disposition of all cases wherein action has been taken

  9  pursuant to s. 414.39, based upon information furnished by the

10  Department of Law Enforcement Division of Public Assistance

11  Fraud.

12         (5)  All lawful fees and expenses of officers and

13  witnesses, expenses incident to taking testimony and

14  transcripts of testimony and proceedings are requested by the

15  Legislative Auditing Committee or the Auditor General shall be

16  a proper charge to the Department of Law Enforcement

17  appropriation of the Auditor General. All payments for these

18  purposes shall be on vouchers approved by the Auditor General.

19         (6)  The provisions of this section shall be liberally

20  construed in order to carry out effectively the purposes of

21  this section in the interest of protecting public moneys and

22  other public property.

23         Section 5.  Paragraph (b) of subsection (6) of section

24  402.3015, Florida Statutes, is amended to read:

25         402.3015  Subsidized child care program; purpose; fees;

26  contracts.--

27         (6)

28         (b)  Child care services, unless directly operated by a

29  community child care coordinating agency, shall be provided

30  under a service agreement or by voucher, which ensures, to the

31  maximum extent possible, parental choice through flexibility

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  1  in child care arrangements and payment arrangements. When

  2  used, a voucher must bear the name of the beneficiary and the

  3  child care provider and, when redeemed, must bear the

  4  signature of both the beneficiary and an authorized

  5  representative of the child care provider. If it is determined

  6  that a child care provider has provided any cash to the

  7  beneficiary in return for receiving the voucher, the license

  8  for each child care facility operated by the provider shall be

  9  immediately revoked and any facility operated by the provider

10  is ineligible for relicensure for 3 years. Whether or not the

11  provider is licensed, the department shall refer the matter to

12  the Department of Law Enforcement Division of Public

13  Assistance Fraud of the Office of the Auditor General for

14  investigation.

15         Section 6.  Subsection (2) of section 414.33, Florida

16  Statutes, is amended to read:

17         414.33  Violations of food stamp program.--

18         (2)  In addition, the department shall establish

19  procedures for referring to the Department of Law Enforcement

20  Division of Public Assistance Fraud within the Office of the

21  Auditor General any case that involves a suspected violation

22  of federal or state law or rules governing the administration

23  of the food stamp program.

24         Section 7.  Section 414.34, Florida Statutes, is

25  amended to read:

26         414.34  Annual report concerning administrative

27  complaints and disciplinary actions involving food stamp

28  program violations.--The department shall prepare and submit a

29  report to the President of the Senate, the Speaker of the

30  House of Representatives, the chairs of the appropriate

31  legislative Health and Rehabilitative Services committees, and

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  1  the Department of Law Enforcement Division of Public

  2  Assistance Fraud by January 1 of each year.  In addition to

  3  any other information the Legislature may require, the report

  4  must include statistics and relevant information detailing:

  5         (1)  The number of complaints received and

  6  investigated.

  7         (2)  The number of findings of probable cause made.

  8         (3)  The number of findings of no probable cause made.

  9         (4)  The number of administrative complaints filed.

10         (5)  The disposition of all administrative complaints.

11         (6)  The number of criminal complaints brought under s.

12  414.39, and their disposition.

13         (7)  The status of the development and implementation

14  of rules governing the electronic benefits transfer program,

15  including any recommendations for statutory changes.

16         Section 8.  Subsection (9) of section 414.39, Florida

17  Statutes, is amended to read:

18         414.39  Fraud.--

19         (9)  All records relating to investigations of public

20  assistance fraud in the custody of the department and the

21  Agency for Health Care Administration are available for

22  examination by the Department of Law Enforcement Division of

23  Public Assistance Fraud of the office of the Auditor General

24  pursuant to s. 11.50 and are admissible into evidence in

25  proceedings brought under this section as business records

26  within the meaning of s. 90.803(6).

27         Section 9.  Section 414.40, Florida Statutes, is

28  amended to read:

29         414.40  Stop Inmate Fraud Program established;

30  guidelines.--

31

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  1         (1)  There is created within the Department of Law

  2  Enforcement Division of Public Assistance Fraud of the Office

  3  of the Auditor General a Stop Inmate Fraud Program.

  4         (2)  The Department of Law Enforcement division is

  5  directed to implement the Stop Inmate Fraud Program in

  6  accordance with the following guidelines:

  7         (a)  The program shall establish procedures for sharing

  8  public records not exempt from the public records law among

  9  social services agencies regarding the identities of persons

10  incarcerated in state correctional institutions, as defined in

11  s. 944.02(6), or in county, municipal, or regional jails or

12  other detention facilities of local governments under chapter

13  950 or chapter 951 who are wrongfully receiving public

14  assistance benefits or entitlement benefits.

15         (b)  Pursuant to these procedures, the program shall

16  have access to records containing correctional information not

17  exempt from the public records law on incarcerated persons

18  which have been generated as criminal justice information.  As

19  used in this paragraph, the term "record" is defined as

20  provided in s. 943.045(7), and the term "criminal justice

21  information" is defined as provided in s. 943.045(3).

22         (c)  Database searches shall be conducted of the inmate

23  population at each correctional institution or other detention

24  facility.  A correctional institution or a detention facility

25  shall provide the Stop Inmate Fraud Program with the

26  information necessary to identify persons wrongfully receiving

27  benefits in the medium requested by the Stop Inmate Fraud

28  Program if the correctional institution or detention facility

29  maintains the information in that medium.

30         (d)  Data obtained from correctional institutions or

31  other detention facilities shall be compared with the client

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  1  files of the Department of Children and Family Services, the

  2  Department of Labor and Employment Security, and other state

  3  or local agencies as needed to identify persons wrongfully

  4  obtaining benefits.  Data comparisons shall be accomplished

  5  during periods of low information demand by agency personnel

  6  to minimize inconvenience to the agency.

  7         (e)  Results of data comparisons shall be furnished to

  8  the appropriate office for use in the county in which the data

  9  originated.  The program may provide reports of the data it

10  obtains to appropriate state, federal, and local government

11  agencies or governmental entities, including, but not limited

12  to:

13         1.  The Child Support Enforcement Program of the

14  Department of Revenue, so that the data may be used as locator

15  information on persons being sought for purposes of child

16  support.

17         2.  The Social Security Administration, so that the

18  data may be used to reduce federal entitlement fraud within

19  the state.

20         (f)  Reports by the program to another agency or entity

21  shall be generated bimonthly, or as otherwise directed, and

22  shall be designed to accommodate that agency's or entity's

23  particular needs for data.

24         (g)  Only those persons with active cases, or with

25  cases that were active during the incarceration period, shall

26  be reported, in order that the funding agency or entity, upon

27  verification of the data, may take whatever action is deemed

28  appropriate.

29         (h)  For purposes of program review and analysis, each

30  agency or entity receiving data from the program shall submit

31

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  1  reports to the program which indicate the results of how the

  2  data was used.

  3         Section 10.  Section 951.28, Florida Statutes, is

  4  amended to read:

  5         951.28  Transmitting prisoner information to reduce

  6  public assistance fraud.--Upon consultation with the

  7  Department of Law Enforcement Division of Public Assistance

  8  Fraud of the Office of the Auditor General and the Social

  9  Security Administration, the county sheriff or chief

10  correctional officer or his or her designee shall establish

11  and implement a process to submit to the Social Security

12  Administration, directly or indirectly, sufficient and

13  necessary information to identify incarcerated persons who are

14  wrongfully receiving entitlement benefits and payments.

15         Section 11.  Section 373.589, Florida Statutes, is

16  amended to read:

17         373.589  Water management district audit by Auditor

18  General.--Each water management district shall have an annual

19  financial audit of its accounts and records as provided in s.

20  11.45. A copy of the audit shall be filed with the Governor,

21  the Department of Environmental Protection, the Auditor

22  General, the governing board of the district, and the clerks

23  of the circuit courts of each county within or partly within

24  the district. At the direction of the Governor, audit of the

25  district's accounts may be made from time to time by the

26  Auditor General, and such audit shall be within the authority

27  of said Auditor General, to make. Copy of such audit shall be

28  furnished the Governor and the governing board of the

29  district, and a copy shall be filed with the clerks of the

30  circuit courts of each county within or partly within said

31  district. The expense of said audit shall be paid by the

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  1  district upon a statement thereof rendered to the district by

  2  the Auditor General.  Payment of the amount thereof shall be

  3  made to the State Department of Banking and Finance to be

  4  entered in and to reimburse the account of the Auditor General

  5  so as not to reduce the legislative appropriation for said

  6  Auditor General.

  7         Section 12.  Subsection (7) of section 195.096, Florida

  8  Statutes, is amended to read:

  9         195.096  Review of assessment rolls.--

10         (7)  The Auditor General shall have the responsibility

11  to perform performance audits of the administration of ad

12  valorem tax laws by the department pursuant to the general

13  authority granted in chapter 11.  Such performance audits

14  shall be conducted triennially biennially following completion

15  of reviews pursuant to this section.  The performance audit

16  conducted pursuant to this subsection shall be formally

17  submitted to the Legislature no later than April 1, on a

18  triennial biennial basis, reporting on the activities of the

19  ad valorem tax program of the Department of Revenue related to

20  the ad valorem tax rolls. The Auditor General shall include,

21  for at least four counties so reviewed, findings as to the

22  accuracy of assessment procedures, projections, and

23  computations made by the division, utilizing the same

24  generally accepted appraisal standards and procedures to which

25  the division and the property appraisers are required to

26  adhere. However, the report shall not include any findings or

27  statistics related to any ad valorem tax roll which is in

28  litigation between the state and county officials at the time

29  the report is to be issued.

30         Section 13.  Subsection (1) of section 232.44, Florida

31  Statutes, is amended to read:

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  1         232.44  Audit of records of nonprofit corporations and

  2  associations handling interscholastic activities.--

  3         (1)  Each The Auditor General shall, at least every 6

  4  months, audit the books and records of any nonprofit

  5  association or corporation that which operates for the purpose

  6  of supervising and controlling interscholastic activities of

  7  the public high schools in the state and whose membership is

  8  composed of duly certified representatives of public high

  9  schools in the state, and whose rules and regulations are

10  established by members thereof, shall have an annual financial

11  audit of its accounts and records by an independent certified

12  public accountant retained by it and paid from its funds. The

13  accountant shall furnish a copy of the audit to the Auditor

14  General for review.

15         Section 14.  Section 946.516, Florida Statutes, is

16  amended to read:

17         946.516  Report to Governor, and Legislature, and

18  Auditor General by the corporation; Department of Corrections

19  report; annual financial audit report to Governor and

20  Legislature by Auditor General.--

21         (1)  The corporation shall submit to the Governor and

22  the Legislature, on or before January 1 of each year, a report

23  on the status of the correctional work programs, including,

24  but not limited to, the proposed use of the profits from such

25  programs, a breakdown of the amount of noninmate labor used,

26  work subcontracted to other vendors, use of consultants,

27  finished goods purchased for resale, and the number of inmates

28  working in the correctional work programs at the time of such

29  report.  In addition, the corporation shall submit to the

30  department, the Governor, and the Legislature, and the Auditor

31  General an annual independently audited financial audit report

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  1  statement and such other information as may be requested by

  2  the Legislature, together with recommendations relating to

  3  provisions for reasonable tax incentives to private

  4  enterprises which employ inmates, parolees, or former inmates

  5  who have participated in correctional work programs.

  6         (2)  The department shall include, as a portion of its

  7  annual report, a report on postrelease job placement and the

  8  rate of subsequent contact with the correctional system for

  9  those inmates who have participated in the correctional work

10  programs operated by the corporation and by the department.

11         (3)  The corporation shall have an annual financial

12  audit of its accounts and records by an independent certified

13  public accountant retained by it and paid from its funds. The

14  Auditor General or the director of the Office of Program

15  Policy Analysis and Government Accountability may, pursuant to

16  his or her own authority or at the direction of the Joint

17  Legislative Auditing Committee, conduct an audit of the

18  corporation.  The Auditor General shall biennially conduct a

19  financial and performance audit of the corporation, which

20  shall be conducted in conjunction with an independent audit

21  conducted by the auditors of the corporation. The Auditor

22  General shall conduct additional audits upon the request of

23  the Joint Legislative Auditing Committee.

24         (4)  The corporation shall be governed by the generally

25  accepted accounting principles as established by the Financial

26  Accounting Standards Board (FASB) in order to carry out the

27  intent of s. 946.502(2) and (5).

28         Section 15.  Section 283.31, Florida Statutes, is

29  amended to read:

30         283.31  Records of executive agency publications.--Each

31  agency shall maintain a record of any publication the printing

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  1  of which costs in excess of the threshold amount provided in

  2  s. 287.017 for CATEGORY THREE, at least part of which is paid

  3  for by state funds appropriated by the Legislature. Such

  4  record shall also contain the following:  written

  5  justification of the need for such publication, purpose of

  6  such publication, legislative or administrative authority,

  7  sources of funding, frequency and number of issues, and

  8  reasons for deciding to have the publication printed in-house,

  9  by another agency or the Legislature, or purchased on bid.  In

10  addition, such record shall contain the comparative costs of

11  alternative printing methods when such costs were a factor in

12  deciding upon a method. The record of the corporation

13  operating the correctional industry printing program

14  Compliance with the provisions of this section shall be

15  included within the scope of audits performed by the Auditor

16  General on each agency, and such audits shall be performed not

17  less than once every 3 years.  The Auditor General shall also

18  conduct a financial-related and performance audit of the

19  corporation operating the correctional industry program.  Such

20  audit shall be conducted once every 3 years, and the first

21  audit shall be for the period July 1, 1988, through June 30,

22  1990, to be completed prior to the 1991 regular legislative

23  session.  Such audit shall include a review of the printing

24  that the corporation has done for state agencies.  This review

25  shall include the cost of materials used, the cost of labor,

26  the cost of overhead, the amount of profit made by the

27  corporation for such printing, and whether the state agencies

28  that contract with the corporation for printing are prudently

29  determining the price paid for such printing. Such audits

30  shall be completed no later than the first day of the regular

31  legislative session.

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  1         Section 16.  Subsection (5) of section 944.719, Florida

  2  Statutes, is amended to read:

  3         944.719  Adoption of rules, monitoring, and

  4  reporting.--

  5         (5)  The Office of Program Policy Analysis and

  6  Government Accountability Auditor General shall conduct a

  7  performance audit, including a review of the annual financial

  8  audit of the private entity and shall deliver a report to the

  9  Legislature by February April 1 of the third first year

10  following any contract awarded by the department for the

11  operation of a correctional facility by a private vendor.

12         (a)  The report shall determine the reasonableness of

13  the cost analysis procedures used by the department for

14  comparing services provided under the contract and for

15  comparing the quality of the services provided under the

16  contract with the costs and quality of similar services

17  provided by the department.

18         (b)  In preparing the report, the office Auditor

19  General shall consider, in addition to other factors he or she

20  determines are significant:

21         1.  The extent to which the private vendor and the

22  department have complied with the terms of the contract and

23  ss. 944.710-944.719.

24         2.  The wages and benefits that are provided to the

25  staff of the private correctional facility as compared to

26  wages and benefits provided to employees of the department

27  performing comparable tasks.

28         Section 17.  Paragraph (a) of subsection (3) and

29  subsection (6) of section 11.511, Florida Statutes, are

30  amended and subsection (7) is added to that section, to read:

31

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  1         11.511  Director of the Office of Program Policy

  2  Analysis and Government Accountability; appointment;

  3  employment of staff; powers and duties.--

  4         (3)(a)  Within available funds, The director shall make

  5  all spending decisions under the annual operating budget

  6  approved by the President of the Senate and the Speaker of the

  7  House of Representatives. The director shall employ and set

  8  the compensation of such professional, technical, legal, and

  9  clerical staff as may be necessary to perform all the

10  requirements of this section and s. 11.513, in accordance with

11  the policies and procedures of the Legislative Auditing

12  Committee, and may remove these personnel. The staff must be

13  chosen to provide a broad background of experience and

14  expertise and, to the maximum extent possible, to represent a

15  range of disciplines that includes law, engineering, public

16  administration, environmental science, policy science,

17  economics, sociology, and philosophy.

18         (6)  The director, with the consent of the Legislative

19  Auditing Committee, may enter into contracts on behalf of the

20  Office of Program Policy Analysis and Government

21  Accountability. However, the director may enter into contracts

22  that have been approved in the annual operating budget without

23  the consent of the committee.

24         (7)  The director, with the consent of the President of

25  the Senate and the Speaker of the House of Representatives,

26  may modify the work schedule of the office in order to

27  concentrate its efforts on agency programs that are determined

28  to have high oversight priority. The modification may include

29  reduction or elimination of recurring performance audits

30  existing in law on July 1, 1999, but which do not appear to be

31  of critical interest to the Legislature. The director may at

                                  32

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  1  any time conduct a performance review of a governmental entity

  2  created by law.

  3         Section 18.  Subsection (4) of section 11.513, Florida

  4  Statutes, is amended, and subsection (8) is added to that

  5  section, to read:

  6         11.513  Program evaluation and justification review.--

  7         (4)  No later than December July 1 of the second year

  8  following the year in which an agency begins operating under a

  9  performance-based program budget, the Office of Program Policy

10  Analysis and Government Accountability shall submit a report

11  of evaluation and justification review findings and

12  recommendations to the President of the Senate, the Speaker of

13  the House of Representatives, the chairpersons of the

14  appropriate substantive committees, the chairpersons of the

15  appropriations committees, the Legislative Auditing Committee,

16  the Governor, the head of each state agency that was the

17  subject of the evaluation and justification review, and the

18  head of any state agency that is substantially affected by the

19  findings and recommendations.

20         (8)  If recommended by the director of the Office of

21  Program Policy Analysis and Government Accountability, the

22  President of the Senate and the Speaker of the House of

23  Representatives may jointly direct that any program evaluation

24  and justification review existing on July 1, 1999, be

25  postponed to allow the Office of Program Policy Analysis and

26  Government Accountability to conduct a review of another

27  program considered more urgent.

28         Section 19.  Subsections (6) and (7), paragraph (a) of

29  subsection (8), and paragraph (f) of subsection (9) of section

30  112.3187, Florida Statutes, are amended to read:

31

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  1         112.3187  Adverse action against employee for

  2  disclosing information of specified nature prohibited;

  3  employee remedy and relief.--

  4         (6)  TO WHOM INFORMATION DISCLOSED.--The information

  5  disclosed under this section must be disclosed to any agency

  6  or federal government entity having the authority to

  7  investigate, police, manage, or otherwise remedy the violation

  8  or act, including, but not limited to, the Office of the Chief

  9  Inspector General, an agency inspector general or the employee

10  designated as agency inspector general under s. 112.3189(1) or

11  inspectors general under s. 20.055, the Office of the Public

12  Counsel, and the whistle-blower's hotline created under s.

13  112.3189. However, for disclosures concerning a local

14  governmental entity, including any regional, county, or

15  municipal entity, special district, community college

16  district, or school district or any political subdivision of

17  any of the foregoing, the information must be disclosed to a

18  chief executive officer as defined in s. 447.203(9) or other

19  appropriate local official.

20         (7)  EMPLOYEES AND PERSONS PROTECTED.--This section

21  protects employees and persons who disclose information on

22  their own initiative in a written and signed complaint; who

23  are requested to participate in an investigation, hearing, or

24  other inquiry conducted by any agency or federal government

25  entity; who refuse to participate in any adverse action

26  prohibited by this section; or who initiate a complaint

27  through the whistle-blower's hotline; or employees who file

28  any written complaint to their supervisory officials or

29  employees who submit a complaint to the Chief Inspector

30  General in the Executive Office of the Governor or, to the

31  employee designated as agency inspector general under s.

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  1  112.3189(1), or to the Office of the Public Counsel.  The

  2  provisions of this section may not be used by a person while

  3  he or she is under the care, custody, or control of the state

  4  correctional system or, after release from the care, custody,

  5  or control of the state correctional system, with respect to

  6  circumstances that occurred during any period of

  7  incarceration.  No remedy or other protection under ss.

  8  112.3187-112.31895 applies to any person who has committed or

  9  intentionally participated in committing the violation or

10  suspected violation for which protection under ss.

11  112.3187-112.31895 is being sought.

12         (8)  REMEDIES.--

13         (a)  Any employee of or applicant for employment with

14  any state agency, as the term "state agency" is defined in s.

15  216.011, who is discharged, disciplined, or subjected to other

16  adverse personnel action, or denied employment, because he or

17  she engaged in an activity protected by this section may file

18  a complaint, which complaint must be made in accordance with

19  s. 112.31895.  Upon receipt of notice from the Department of

20  Legal Affairs Public Counsel of termination of the

21  investigation, the complainant may elect to pursue the

22  administrative remedy available under s. 112.31895 or bring a

23  civil action within 180 days after receipt of the notice.

24         (9)  RELIEF.--In any action brought under this section,

25  the relief must include the following:

26         (f)  Temporary reinstatement to the employee's former

27  position or to an equivalent position, pending the final

28  outcome on the complaint, if an employee complains of being

29  discharged in retaliation for a protected disclosure and if a

30  court of competent jurisdiction or the Department of Legal

31  Affairs Public Counsel, as applicable under s. 112.31895,

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  1  determines that the disclosure was not made in bad faith or

  2  for a wrongful purpose or occurred after an agency's

  3  initiation of a personnel action against the employee which

  4  includes documentation of the employee's violation of a

  5  disciplinary standard or performance deficiency. This

  6  paragraph does not apply to an employee of a municipality.

  7         Section 20.  Paragraph (a) of subsection (2) of section

  8  112.3188, Florida Statutes, is amended to read:

  9         112.3188  Confidentiality of information given to the

10  Chief Inspector General, internal auditors, inspectors

11  general, local chief executive officers, or other appropriate

12  local officials.--

13         (2)(a)  Except as specifically authorized by s.

14  112.3189, all information received by the Chief Inspector

15  General or an agency inspector general or information produced

16  or derived from fact-finding or other investigations conducted

17  by the Department of Legal Affairs, the Office of the Public

18  Counsel, or the Department of Law Enforcement is confidential

19  and exempt from s. 119.07(1) if the information is being

20  received or derived from allegations as set forth in paragraph

21  (1)(a) or paragraph (1)(b), and an investigation is active.

22         Section 21.  Section 112.31895, Florida Statutes, is

23  amended to read:

24         112.31895  Investigative procedures in response to

25  prohibited personnel actions.--

26         (1)(a)  If a disclosure under s. 112.3187 includes or

27  results in alleged retaliation by an employer, the employee or

28  former employee of, or applicant for employment with, a state

29  agency, as defined in s. 216.011, that is so affected may file

30  a complaint alleging a prohibited personnel action, which

31  complaint must be made by filing a written complaint with the

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  1  Office of the Chief Inspector General in the Executive Office

  2  of the Governor or, the Department of Legal Affairs, or the

  3  Office of the Public Counsel, no later than 60 days after the

  4  prohibited personnel action.

  5         (b)  Within three working days after receiving a

  6  complaint under this section, the office or officer receiving

  7  the complaint shall acknowledge receipt of the complaint and

  8  provide copies of the complaint and any other preliminary

  9  information available concerning the disclosure of information

10  under s. 112.3187 to each of the other parties named in

11  paragraph (a), which parties shall each acknowledge receipt of

12  such copies to the complainant.

13         (2)  FACT FINDING.--The Department of Legal Affairs

14  shall:

15         (a)  Receive any allegation of a personnel action

16  prohibited by s. 112.3187, including a proposed or potential

17  action, and conduct informal fact finding regarding any

18  allegation under this section, to the extent necessary to

19  determine whether there are reasonable grounds to believe that

20  a prohibited personnel action under s. 112.3187 has occurred,

21  is occurring, or is to be taken.

22         (b)  Notify the complainant, within 15 days after

23  receiving a complaint, that the complaint has been received by

24  the department.

25         (c)  Within 90 days after receiving the complaint,

26  provide the Public Counsel, the agency head, and the

27  complainant with a fact-finding report that may include

28  recommendations to the parties or proposed resolution of the

29  complaint.  The fact-finding report shall be presumed

30  admissible in any subsequent or related administrative or

31  judicial review.

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  1         (3)  CORRECTIVE ACTION AND TERMINATION OF

  2  INVESTIGATION.--

  3         (a)  The Department of Legal Affairs Public Counsel

  4  established by s. 350.061, in accordance with this act and for

  5  the sole purpose of this act, is empowered to:

  6         1.  Receive and investigate complaints from employees

  7  alleging retaliation by state agencies, as the term "state

  8  agency" is defined in s. 216.011.

  9         2.  Protect employees and applicants for employment

10  with such agencies from prohibited personnel practices under

11  s. 112.3187.

12         3.  Petition for stays and petition for corrective

13  actions, including, but not limited to, temporary

14  reinstatement.

15         4.  Recommend disciplinary proceedings pursuant to

16  investigation and appropriate agency rules and procedures.

17         5.  Coordinate with the Chief Inspector General in the

18  Executive Office of the Governor and the Department of Legal

19  Affairs to receive, review, and forward to appropriate

20  agencies, legislative entities, or the Department of Law

21  Enforcement disclosures of a violation of any law, rule, or

22  regulation, or disclosures of gross mismanagement,

23  malfeasance, misfeasance, nonfeasance, neglect of duty, or

24  gross waste of public funds.

25         6.  Review rules pertaining to personnel matters issued

26  or proposed by the Department of Management Services, the

27  Public Employees Relations Commission, and other agencies,

28  and, if the Department of Legal Affairs Public Counsel finds

29  that any rule or proposed rule, on its face or as implemented,

30  requires the commission of a prohibited personnel practice,

31  provide a written comment to the appropriate agency.

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  1         7.  Investigate, request assistance from other

  2  governmental entities, and, if appropriate, bring actions

  3  concerning, allegations of retaliation by state agencies under

  4  subparagraph 1.

  5         8.  Administer oaths, examine witnesses, take

  6  statements, issue subpoenas, order the taking of depositions,

  7  order responses to written interrogatories, and make

  8  appropriate motions to limit discovery, pursuant to

  9  investigations under subparagraph 1.

10         9.  Intervene or otherwise participate, as a matter of

11  right, in any appeal or other proceeding arising under this

12  section before the Public Employees Relations Commission or

13  any other appropriate agency, except that the Department of

14  Legal Affairs Public Counsel must comply with the rules of the

15  commission or other agency and may not seek corrective action

16  or intervene in an appeal or other proceeding without the

17  consent of the person protected under ss. 112.3187-112.31895.

18         10.  Conduct an investigation, in the absence of an

19  allegation, to determine whether reasonable grounds exist to

20  believe that a prohibited action or a pattern of prohibited

21  action has occurred, is occurring, or is to be taken.

22         (b)  Within 15 days after receiving a complaint that a

23  person has been discharged from employment allegedly for

24  disclosing protected information under s. 112.3187, the

25  Department of Legal Affairs Public Counsel shall review the

26  information and determine whether temporary reinstatement is

27  appropriate under s. 112.3187(9)(f). If the Department of

28  Legal Affairs Public Counsel so determines, it he or she shall

29  apply for an expedited order from the appropriate agency or

30  circuit court for the immediate reinstatement of the employee

31  who has been discharged subsequent to the disclosure made

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  1  under s. 112.3187, pending the issuance of the final order on

  2  the complaint.

  3         (c)  The Department of Legal Affairs Public Counsel

  4  shall notify a complainant of the status of the investigation

  5  and any action taken by the Public Counsel at such times as

  6  the department Public Counsel considers appropriate.

  7         (d)  The Public Counsel shall review the fact-finding

  8  reports submitted by the Department of Legal Affairs and may

  9  rely upon the findings and recommendations of those reports.

10         (d)(e)  If the Department of Legal Affairs Public

11  Counsel is unable to conciliate a complaint within 60 days

12  after receipt of the fact-finding report, the Department of

13  Legal Affairs Public Counsel shall terminate the

14  investigation.  Upon termination of any investigation, the

15  Department of Legal Affairs Public Counsel shall notify the

16  complainant and the agency head of the termination of the

17  investigation, providing a summary of relevant facts found

18  during the investigation and the reasons for terminating the

19  investigation.  A written statement under this paragraph is

20  presumed admissible as evidence in any judicial or

21  administrative proceeding but is not admissible without the

22  consent of the complainant.

23         (e)(f)1.  The Department of Legal Affairs Public

24  Counsel may request an agency or circuit court to order a

25  stay, on such terms as the court requires, of any personnel

26  action for 45 days if the Department of Legal Affairs Public

27  Counsel determines that reasonable grounds exist to believe

28  that a prohibited personnel action has occurred, is occurring,

29  or is to be taken.  The Department of Legal Affairs Public

30  Counsel may request that such stay be extended for appropriate

31  periods of time.

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  1         2.  If, in connection with any investigation, the

  2  Department of Legal Affairs Public Counsel determines that

  3  reasonable grounds exist to believe that a prohibited action

  4  has occurred, is occurring, or is to be taken which requires

  5  corrective action, the Department of Legal Affairs Public

  6  Counsel shall report the determination together with any

  7  findings or recommendations to the agency head and may report

  8  that determination and those findings and recommendations to

  9  the Governor and the Comptroller. The Department of Legal

10  Affairs Public Counsel may include in the report

11  recommendations for corrective action to be taken.

12         3.  If, after 20 days, the agency does not implement

13  the recommended action, the Department of Legal Affairs Public

14  Counsel shall terminate the investigation and notify the

15  complainant of the right to appeal under subsection (4), or

16  may petition the agency for corrective action under this

17  subsection.

18         4.  If the Department of Legal Affairs Public Counsel

19  finds, in consultation with the Department of Legal Affairs or

20  the individual subject to the prohibited action, that the

21  agency has implemented the corrective action, the department

22  Public Counsel shall file such finding with the agency head,

23  together with any written comments that the individual

24  provides, and terminate the investigation.

25         (f)(g)  If the Department of Legal Affairs Public

26  Counsel finds that there are no reasonable grounds to believe

27  that a prohibited personnel action has occurred, is occurring,

28  or is to be taken, the department he or she shall terminate

29  the investigation.

30         (g)(h)1.  If, in connection with any investigation

31  under this section, it is determined that reasonable grounds

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  1  exist to believe that a criminal violation has occurred which

  2  has not been previously reported, the Department of Legal

  3  Affairs Public Counsel shall report this determination to the

  4  Department of Law Enforcement and to the state attorney having

  5  jurisdiction over the matter.

  6         2.  If an alleged criminal violation has been reported,

  7  the Department of Legal Affairs Public Counsel shall confer

  8  with the Department of Law Enforcement and the state attorney

  9  before proceeding with the investigation of the prohibited

10  personnel action and may defer the investigation pending

11  completion of the criminal investigation and proceedings.  The

12  Department of Legal Affairs Public Counsel shall inform the

13  complainant of the decision to defer the investigation and, if

14  appropriate, of the confidentiality of the investigation.

15         (h)(i)  If, in connection with any investigation under

16  this section, the Department of Legal Affairs Public Counsel

17  determines that reasonable grounds exist to believe that a

18  violation of a law, rule, or regulation has occurred, other

19  than a criminal violation or a prohibited action under this

20  section, the department Public Counsel may report such

21  violation to the head of the agency involved.  Within 30 days

22  after the agency receives the report, the agency head shall

23  provide to the department Public Counsel a certification that

24  states that the head of the agency has personally reviewed the

25  report and indicates what action has been or is to be taken

26  and when the action will be completed.

27         (i)(j)  During any investigation under this section,

28  disciplinary action may not be taken against any employee of a

29  state agency, as the term "state agency" is defined in s.

30  216.011, for reporting an alleged prohibited personnel action

31  that is under investigation, or for reporting any related

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  1  activity, or against any employee for participating in an

  2  investigation without notifying the Department of Legal

  3  Affairs Public Counsel.

  4         (j)(k)  The Department of Legal Affairs Public Counsel

  5  may also petition for an award of reasonable attorney's fees

  6  and expenses from a state agency, as the term "state agency"

  7  is defined in s. 216.011, pursuant to s. 112.3187(9).

  8         (4)  RIGHT TO APPEAL.--

  9         (a)  Not more than 60 days after receipt of a notice of

10  termination of the investigation from the Department of Legal

11  Affairs Public Counsel, the complainant may file, with the

12  Public Employees Relations Commission, a complaint against the

13  employer-agency regarding the alleged prohibited personnel

14  action.  The Public Employees Relations Commission shall have

15  jurisdiction over such complaints under ss. 112.3187 and

16  447.503(4) and (5).

17         (b)  Judicial review of any final order of the

18  commission shall be as provided in s. 120.68.

19         Section 22.  Section 985.401, Florida Statutes, 1998

20  Supplement, is amended to read:

21         985.401  Juvenile Justice Accountability Board.--

22         (1)  The Juvenile Justice Accountability Board shall be

23  composed of seven nine members appointed by the Governor.

24  Members of the board shall have direct experience and a strong

25  interest in juvenile justice issues. The authority to appoint

26  the board is allocated as follows:

27         (a)  Three members appointed by the Governor.

28         (b)  Three members appointed by the President of the

29  Senate.

30         (c)  Three members appointed by the Speaker of the

31  House of Representatives.

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  1         (2)(a)  A full term shall be 3 years, and the term for

  2  each seat on the board commences on October 1 and expires on

  3  September 30, without regard to the date of appointment.  Each

  4  appointing authority shall appoint a member to fill one of the

  5  three vacancies that occurs with the expiration of terms on

  6  September 30 of each year. A member is not eligible for

  7  appointment to more than two full, consecutive terms. A

  8  vacancy on the board shall be filled within 60 days after the

  9  date on which the vacancy occurs.  The Governor appointing

10  authority that made the original appointment shall make the

11  appointment to fill a vacancy that occurs for any reason other

12  than the expiration of a term, and the appointment shall be

13  for the remainder of the unexpired term.

14         (b)  The composition of the board must be broadly

15  reflective of the public and must include minorities and

16  women. The term "minorities" as used in this paragraph means a

17  member of a socially or economically disadvantaged group and

18  includes African Americans, Hispanics, and American Indians.

19         (c)(b)  The board shall annually select a chairperson

20  from among its members.

21         (d)(c)  The board shall meet at least once each

22  quarter. A member may not authorize a designee to attend a

23  meeting of the board in place of the member. A member who

24  fails to attend two consecutive regularly scheduled meetings

25  of the board, unless the member is excused by the chairperson,

26  shall be deemed to have abandoned the position, and the

27  position shall be declared vacant by the board.

28         (3)(a)  The board members shall serve without

29  compensation, but are entitled to reimbursement for per diem

30  and travel expenses pursuant to s. 112.061.

31

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  1         (b)  The board shall appoint an executive director and

  2  other personnel who are exempt from part II of chapter 110,

  3  relating to the Career Service System.

  4         (b)(c)  Effective July 1, 1999, the board and its staff

  5  are is assigned, for the purpose of general oversight, to the

  6  Department of Juvenile Justice Joint Legislative Auditing

  7  Committee. The board shall develop a budget pursuant to

  8  procedures established by the Joint Legislative Auditing

  9  Committee.

10         (d)  The composition of the board shall be broadly

11  reflective of the public and shall include minorities and

12  women. The term "minorities" as used in this paragraph means a

13  member of a socially or economically disadvantaged group that

14  includes African Americans, Hispanics, and American Indians.

15  Members of the board shall have direct experience and a strong

16  interest in juvenile justice issues.

17         (4)(a)  The board shall establish and operate a

18  comprehensive system to annually measure and report program

19  outcomes and effectiveness for each program operated by the

20  Department of Juvenile Justice or operated by a provider under

21  contract with the department. The system shall include a

22  standard methodology for interpreting the board's outcome

23  evaluation reports, using, where appropriate, the

24  performance-based program budgeting measures approved by the

25  Legislature. The methodology must include:

26         1.  Common terminology and operational definitions for

27  measuring the performance of system administration, program

28  administration, program outputs, and client outcomes.

29         2.  Program outputs for each group of programs within

30  each level of the juvenile justice continuum and specific

31  program outputs for each program or program type.

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  1         3.  Specification of desired client outcomes and

  2  methods by which to measure client outcomes for each program

  3  operated by the department or by a provider under contract

  4  with the department.

  5         4.  Recommended annual minimum thresholds of

  6  satisfactory performance for client outcomes and program

  7  outputs.

  8

  9  For the purposes of this section, the term "program" or

10  "program type" means an individual state-operated or

11  contracted facility, site, or service delivered to at-risk or

12  delinquent youth as prescribed in a contract, program

13  description, or program services manual; and the term "program

14  group" means a collection of programs or program types with

15  sufficient similarity of function, services, and clientele to

16  permit appropriate comparisons among programs within the

17  program group.

18         (b)  In developing the standard methodology, the board

19  shall consult with the department, the Office Division of

20  Economic and Demographic Research, contract service providers,

21  and other interested parties. It is the intent of the

22  Legislature that this effort result in consensus

23  recommendations, and, to the greatest extent possible,

24  integrate the goals and legislatively approved measures of

25  performance-based program budgeting provided in chapter

26  94-249, Laws of Florida, the quality assurance program

27  provided in s. 985.412, and the cost-effectiveness model

28  provided in s. 985.404(11). The board shall notify the Office

29  of Program Policy Analysis and Government Accountability of

30  any meetings to develop the methodology.

31

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  1         (c)  The board shall annually submit its outcome

  2  evaluation report to the Secretary of the Department of

  3  Juvenile Justice, the Governor, and the Legislature by

  4  February 15, which must describe:

  5         1.  The methodology for interpreting outcome

  6  evaluations, including common terminology and operational

  7  definitions.

  8         2.  The recommended minimum thresholds of satisfactory

  9  performance for client outcomes and program outputs applicable

10  to the year for which the data are reported.

11         3.  The actual client outcomes and program outputs

12  achieved by each program operated by the department or by a

13  provider under contract with the department, compared with the

14  recommended minimum thresholds of satisfactory performance for

15  client outcomes and program outputs for the year under review.

16  The report shall group programs or program types with

17  similarity of function and services and make appropriate

18  comparisons between programs within the program group.

19         (d)  The board shall use its evaluation research to

20  make advisory recommendations to the Legislature, the

21  Governor, and the department concerning the effectiveness and

22  future funding priorities of juvenile justice programs.

23         (e)  The board shall annually review and revise the

24  methodology as necessary to ensure the continuing improvement

25  and validity of the evaluation process.

26         (5)  The board shall:

27         (a)  Review and recommend programmatic and fiscal

28  policies governing the operation of programs, services, and

29  facilities for which the Department of Juvenile Justice is

30  responsible.

31

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  1         (b)  Monitor the development and implementation of

  2  long-range juvenile justice policies, including prevention,

  3  early intervention, diversion, adjudication, and commitment.

  4         (c)  Monitor all activities of the executive and

  5  judicial branch and their effectiveness in implementing

  6  policies pursuant to this chapter.

  7         (d)  Advise the President of the Senate, the Speaker of

  8  the House of Representatives, the Governor, and the department

  9  on matters relating to this chapter.

10         (e)  In coordination with the Department of Juvenile

11  Justice, serve as a clearinghouse to provide information and

12  assistance to the district juvenile justice boards and county

13  juvenile justice councils.

14         (f)  Hold public hearings and inform the public of

15  activities of the board and of the Department of Juvenile

16  Justice, as appropriate.

17         (g)  Monitor the delivery and use of services,

18  programs, or facilities operated, funded, regulated, or

19  licensed by the Department of Juvenile Justice for juvenile

20  offenders or alleged juvenile offenders, and for prevention,

21  diversion, or early intervention of delinquency, and to

22  develop programs to educate the citizenry about such services,

23  programs, and facilities and about the need and procedure for

24  siting new facilities.

25         (h)  Contract for consultants as necessary and

26  appropriate. The board may apply for and receive grants for

27  the purposes of conducting research and evaluation activities.

28         (h)(i)  Conduct such other activities as the board may

29  determine are necessary and appropriate to monitor the

30  effectiveness of the delivery of juvenile justice programs and

31  services under this chapter.

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  1         (i)(j)  The board shall Submit an annual report to the

  2  President of the Senate, the Speaker of the House of

  3  Representatives, the Governor, and the secretary of the

  4  department not later than February 15 of each calendar year,

  5  summarizing the activities and reports of the board for the

  6  preceding year, and any recommendations of the board for the

  7  following year.

  8         (6)  Each state agency shall provide assistance when

  9  requested by the board.  The board shall have access to all

10  records, files, and reports that are material to its duties

11  and that are in the custody of a school board, a law

12  enforcement agency, a state attorney, a public defender, the

13  court, the Department of Children and Family Services, and the

14  department.

15         (7)  Unless reenacted by the Legislature, this section

16  expires June 30, 2001.

17         Section 23.  Section 218.502, Florida Statutes, is

18  amended to read:

19         218.502  Definition.--As used in ss. 218.50-218.504,

20  the term "local governmental entity" means a county,

21  municipality, or special district, or district school board.

22         Section 24.  Subsection (4) of section 284.50,

23  paragraph (f) of subsection (1) of section 475.045, and

24  section 985.07, Florida Statutes, are repealed.

25         Section 25.  This act shall take effect July 1, 1999.

26

27          STATEMENT OF SUBSTANTIAL CHANGES CONTAINED IN
                       COMMITTEE SUBSTITUTE FOR
28                             SB 2426

29

30  The Committee Substitute deletes from the bill provisions
    altering the audit schedules for district school boards in
31  counties less than 100,000 population.

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