House Bill hb1977

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    Florida House of Representatives - 2001                HB 1977

        By the Fiscal Responsibility Council and Representative
    Lacasa





  1                      A bill to be entitled

  2         An act relating to state planning and

  3         budgeting; amending s. 216.011, F.S.; modifying

  4         the definitions of "operating capital outlay"

  5         and "state agency"; amending s. 216.013, F.S.;

  6         removing the requirement for the Executive

  7         Office of the Governor to consider certain

  8         findings relating to information technology in

  9         its review of long-range program plans of

10         executive agencies; requiring long-range

11         program plans to be consistent with legislation

12         implementing the General Appropriations Act;

13         amending s. 216.023, F.S.; revising

14         requirements of legislative budget requests

15         relating to the total number of positions and

16         to unit-cost data; requiring legislative budget

17         requests to include an inventory of litigation

18         requiring additional appropriations or changes

19         in the law; providing for update of such

20         inventory; amending s. 216.0446, F.S.;

21         correcting terminology; amending s. 216.081,

22         F.S.; revising provisions requiring submission

23         to the Governor of information on financial

24         needs for the next fiscal year to remove

25         applicability to the judicial branch; amending

26         s. 216.151, F.S.; adding the judicial branch to

27         entities the Executive Office of the Governor

28         is required to study for budgeting and

29         reorganizational purposes; amending s. 216.163,

30         F.S.; revising requirements for the Governor's

31         recommended budget to exclude recommendations

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  1         of the Chief Justice of the Supreme Court,

  2         require the Governor to make such

  3         recommendations, and include the legislative

  4         budget request of the judicial branch; amending

  5         s. 216.177, F.S.; revising the manner in which

  6         requests regarding legislative intent on the

  7         General Appropriations Act are to be made;

  8         revising requirements relating to notice of

  9         action on appropriations to be taken by the

10         Executive Office of the Governor or the Chief

11         Justice of the Supreme Court; deleting an

12         obsolete notice requirement; amending s.

13         216.181, F.S.; requiring budget amendments for

14         the judicial branch to be approved by the Chief

15         Justice of the Supreme Court and the

16         Legislative Budget Commission; authorizing the

17         Chief Justice to amend, without approval of the

18         Legislative Budget Commission, judicial branch

19         entity budgets to reflect transferred funds

20         based on the approved plans for lump-sum

21         appropriations; requiring approval of the

22         Legislative Budget Commission for certain

23         adjustments to approved salary rate; providing

24         circumstances under which lump-sum bonuses may

25         be provided; requiring quarterly reporting of

26         positions filled, positions vacant, and the

27         salary rate associated with each category;

28         granting the Legislative Budget Commission

29         authority to approve state trust fund

30         appropriations in excess of $1 million;

31         creating s. 216.1815, F.S.; providing for an

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  1         agency incentive and savings program; providing

  2         requirements; creating s. 216.1826, F.S.;

  3         providing for activity-based planning and

  4         budgeting; amending s. 216.192, F.S.;

  5         conforming provisions; amending s. 216.216,

  6         F.S.; providing restrictions on the expenditure

  7         of funds for court settlements negotiated by

  8         the state; amending s. 216.221, F.S.; providing

  9         requirements for the elimination of a deficit

10         in a trust fund; amending s. 216.292, F.S.;

11         conforming provisions; adding food products as

12         an allowable fund transfer category;

13         authorizing transfer of positions under certain

14         circumstances; authorizing transfers of

15         appropriations for operations from trust funds

16         in excess of certain amounts under certain

17         conditions; amending s. 11.90, F.S.;

18         establishing the chair and vice chair of the

19         Legislative Budget Commission each year;

20         eliminating the election of such officers;

21         amending ss. 27.345 and 27.3451, F.S.; revising

22         references, to conform; amending s. 45.062,

23         F.S.; requiring certain notification and

24         reporting with respect to executive branch

25         settlements; saving s. 215.20(3), F.S.,

26         relating to an additional trust fund service

27         charge, from scheduled repeal; amending s.

28         284.385, F.S.; requiring assigned counsel to

29         report to the covered department on the status

30         of casualty claims or litigation; prohibiting

31         compromise or settlement of a casualty claim

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  1         without prior notification to the covered

  2         department; amending s. 376.15, F.S.;

  3         correcting a cross reference; providing an

  4         effective date.

  5

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

  7

  8         Section 1.  Paragraphs (bb) and (qq) of subsection (1)

  9  of section 216.011, Florida Statutes, are amended to read:

10         216.011  Definitions.--

11         (1)  For the purpose of fiscal affairs of the state,

12  appropriations acts, legislative budgets, and approved

13  budgets, each of the following terms has the meaning

14  indicated:

15         (bb)  "Operating capital outlay" means the

16  appropriation category used to fund equipment, fixtures, and

17  other tangible personal property of a nonconsumable and

18  nonexpendable nature, according up to the value or cost

19  specified in s. 273.02.

20         (qq)  "State agency" or "agency" means any official,

21  officer, commission, board, authority, council, committee, or

22  department of the executive branch of state government.  For

23  purposes of this chapter and chapter 215, "state agency" or

24  "agency" includes, but is not limited to, state attorneys,

25  public defenders, the capital collateral regional counsels,

26  the Justice Administrative Commission, The Florida Bar, the

27  Florida Board of Bar Examiners, the Florida Housing Finance

28  Corporation, and the Florida Public Service Commission;

29  however, for purposes of this chapter and chapter 215,

30  employees of The Florida Bar and the Florida Board of Bar

31  Examiners shall not be considered state employees. Solely for

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  1  the purposes of implementing s. 19(h), Art. III of the State

  2  Constitution, the terms "state agency" or "agency" include the

  3  judicial branch.

  4         Section 2.  Subsections (4) and (9) of section 216.013,

  5  Florida Statutes, are amended to read:

  6         216.013  Long-range program plan.--

  7         (4)  The Executive Office of the Governor shall review

  8  the long-range program plans for executive agencies to ensure

  9  that they are consistent with the state's goals and objectives

10  and other requirements as specified in the written

11  instructions and that they provide the framework and context

12  for the agency's budget request. In its review, the Executive

13  Office of the Governor shall consider the findings of the

14  Technology Review Workgroup as to the consistency of the

15  information technology portion of long-range program plans

16  with the State Annual Report on Information Resources

17  Management and statewide policies recommended by the State

18  Technology Council and the state's plan for facility needs

19  pursuant to s. 216.0158. Based on the results of the review,

20  the Executive Office of the Governor may require an agency to

21  revise the plan.

22         (9)  Agencies and the judicial branch shall make

23  appropriate adjustments to their long-range program plans to

24  be consistent with the appropriations and performance measures

25  in the General Appropriations Act and legislation implementing

26  the General Appropriations Act. Agencies and the judicial

27  branch have until June 15 to make adjustments to their plans

28  and submit the adjusted plans to the Executive Office of the

29  Governor for review.

30         Section 3.  Paragraphs (d) and (j) of subsection (4) of

31  section 216.023, Florida Statutes, are amended, subsections

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  1  (8) through (12) of said section are renumbered as subsections

  2  (9) through (13), respectively, and a new subsection (8) is

  3  added to said section, to read:

  4         216.023  Legislative budget requests to be furnished to

  5  Legislature by agencies.--

  6         (4)  The legislative budget request must contain for

  7  each program:

  8         (d)  The total number of positions (authorized, fixed,

  9  and or requested).

10         (j)  Unit costs for major activities for the budget

11  entities as defined in the General Appropriations Act. It is

12  the intent of the Legislature to use unit-cost data not only

13  as a budgeting tool but also as a policymaking tool and an

14  accountability tool. Therefore, each budget entity must also

15  submit a one-page summary of information related to itself,

16  subordinate entities, and contracting entities which includes:

17         1.  The budget for each entity;

18         2.  The total amount of revenue received or otherwise

19  passed through each entity;

20         3.  The line-item listings of major activities along

21  with total amounts spent for each major activity and unit

22  costs for each such activity; and

23         4.  The total amount of reversions or actual

24  pass-throughs without unit-cost data approved output measures

25  pursuant to s. 186.022.

26         (8)  As a part of the legislative budget request, the

27  head of each state agency shall include an inventory of all

28  litigation in which the agency is involved that may require

29  additional appropriations to the agency or amendments to the

30  law under which the agency operates.  No later than March 1

31  following the submission of the legislative budget request,

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  1  the head of the state agency shall provide an update of any

  2  additions or changes to the inventory.  Such inventory shall

  3  include information specified annually in the legislative

  4  budget instructions.

  5         Section 4.  Paragraph (a) of subsection (2) of section

  6  216.0446, Florida Statutes, is amended to read:

  7         216.0446  Review of information resources management

  8  needs.--

  9         (2)  In addition to its primary duty specified in

10  subsection (1), the Technology Review Workgroup shall have

11  powers and duties that include, but are not limited to, the

12  following:

13         (a)  To evaluate the information resource management

14  needs identified in the agency long-range program plans for

15  consistency with the State Annual Report on Information

16  Resources Management and statewide policies recommended by the

17  State Technology Office Council, and make recommendations to

18  the chairs of the legislative appropriations committees.

19         Section 5.  Section 216.081, Florida Statutes, is

20  amended to read:

21         216.081  Data on legislative and judicial branch

22  expenses.--

23         (1)  In sufficient time to be included in the

24  Governor's recommended budget, estimates of the financial

25  needs of the legislative branch and the judicial branch during

26  the ensuing fiscal year shall be furnished to the Governor

27  pursuant to chapter 11.

28         (2)  All of the data relative to the legislative branch

29  and to the judicial branch shall be for information and

30  guidance in estimating the total financial needs of the state

31  for the ensuing fiscal year; none of these estimates shall be

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  1  subject to revision or review by the Governor, and they must

  2  be included in the Governor's recommended budget.

  3         Section 6.  Subsection (1) of section 216.151, Florida

  4  Statutes, is amended to read:

  5         216.151  Duties of the Executive Office of the

  6  Governor.--It shall be the duty of the Executive Office of the

  7  Governor to:

  8         (1)  Make a detailed study, as necessary, of each of

  9  the several state agencies and the judicial branch, with a

10  view toward ascertaining and determining the needs thereof;

11  whether changes should be made in existing organizations,

12  their activities and methods of operation; what appropriation

13  should be made therefor; whether the operations and activities

14  of different agencies or within the same agencies should be

15  combined, consolidated, or integrated or should be regrouped

16  and rearranged, all to the end of securing greater economy

17  without sacrificing efficiency in the operations of such

18  agencies. In order to accomplish this type of study, the

19  Executive Office of the Governor may request any or all

20  agencies and the judicial branch to submit a budget plan with

21  respect to targets established by the Governor.  Such a

22  request shall not influence the independent judgments of the

23  agencies or the Chief Justice agencies' independent judgments

24  in making legislative budget requests, as required by law.

25         Section 7.  Subsection (2) of section 216.163, Florida

26  Statutes, is amended to read:

27         216.163  Governor's recommended budget; form and

28  content; declaration of collective bargaining impasses.--

29         (2)  The Governor's recommended budget shall also

30  include:

31

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  1         (a)  The Governor's recommendations for operating each

  2  state agency, and those of the Chief Justice of the Supreme

  3  Court for operating the judicial branch, for the next fiscal

  4  year.  These recommendations shall be displayed by

  5  appropriation category within each budget entity and shall

  6  also include the legislative budget request of the

  7  corresponding agency.

  8         (b)1.  The Governor's recommendations and those of the

  9  Chief Justice for fixed capital outlay appropriations for the

10  next fiscal year. These recommendations shall be displayed by

11  budget entity and shall also include the legislative budget

12  request of the corresponding agency and the judicial branch.

13         2.  For each specific fixed capital outlay project or

14  group of projects or operating capital outlay requests

15  recommended to be funded from a proposed state debt or

16  obligation, he or she shall make available pursuant to s.

17  216.164(1)(a) the documents set forth in s. 216.0442(2).

18         (c)  The evaluation of the fixed capital outlay request

19  of each agency and the judicial branch and alternatives to the

20  proposed projects as made by the Department of Management

21  Services pursuant to s. 216.044.

22         (d)  A summary statement of the amount of

23  appropriations requested by each state agency and the judicial

24  branch and as recommended by the Governor and by the judicial

25  branch.

26         (e)  A distinct listing of all nonrecurring

27  appropriations recommended by the Governor or the Chief

28  Justice.

29         (f)  The Governor's recommendations for critical

30  information resource management projects which should be

31  subject to special monitoring under s. 282.322. These

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  1  recommendations shall include proviso language which specifies

  2  whether funds are specifically provided to contract for

  3  project monitoring, or whether the Auditor General will

  4  conduct such project monitoring. When funds are recommended

  5  for contracting with a project monitor, such funds may equal 1

  6  percent to 5 percent of the project's estimated total costs.

  7  These funds shall be specifically appropriated and

  8  nonrecurring.

  9         (g)  Any additional information which the Governor or

10  Chief Justice feels is needed to justify his or her

11  recommendations.

12         Section 8.  Section 216.177, Florida Statutes, is

13  amended to read:

14         216.177  Appropriations acts, statement of intent,

15  violation, notice, review and objection procedures.--

16         (1)  When an appropriations act is delivered to the

17  Governor after the Legislature has adjourned sine die, as soon

18  as practicable, but no later than the 10th day before the end

19  of the period allowed by law for veto consideration in any

20  year in which an appropriation is made, the chairs of the

21  legislative appropriations committees shall jointly transmit:

22         (a)  The official list of General Revenue Fund

23  appropriations determined in consultation with the Executive

24  Office of the Governor to be nonrecurring; and

25         (b)  The documents set forth in s. 216.0442(2)(a) and

26  (c),

27

28  to the Executive Office of the Governor, the Comptroller, the

29  Auditor General, the Chief Justice of the Supreme Court, and

30  each state agency. A request for additional explanation and

31  direction regarding the legislative intent of the General

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  1  Appropriations Act during the fiscal year may be made to the

  2  chair and vice chair of the Legislative Budget Commission or

  3  the President of the Senate and the Speaker of the House of

  4  Representatives only by and through the Executive Office of

  5  the Governor for state agencies, and by and through the Chief

  6  Justice of the Supreme Court for the judicial branch, as is

  7  deemed necessary.  However, the Comptroller may also request

  8  further clarification of legislative intent pursuant to the

  9  Comptroller's responsibilities related to his or her preaudit

10  function of expenditures.

11         (2)(a)  Whenever notice of action to be taken by the

12  Executive Office of the Governor or the Chief Justice of the

13  Supreme Court is required by this chapter, such notice shall

14  be given to the chair and vice chair of the Legislative Budget

15  Commission and chairs of the legislative appropriations

16  committees in writing, and shall be delivered at least 14 days

17  prior to the action referred to, unless a shorter period is

18  approved in writing by the chair. If the action is solely for

19  the release of funds appropriated by the Legislature, the

20  notice shall be delivered at least 3 days before the effective

21  date of the action. Action shall not be taken on any budget

22  item for which this chapter requires notice to the Legislative

23  Budget Commission or the and appropriations committees without

24  such notice having been provided, even though there may be

25  good cause for considering such item.

26         (b)  If the chair and vice chair of the Legislative

27  Budget Commission or the President of the Senate and the

28  Speaker of the House of Representatives timely advise, in

29  writing, the Executive Office of the Governor or the Chief

30  Justice of the Supreme Court that an action or a proposed

31  action, whether subject to the notice and review requirements

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  1  of this chapter or not, exceeds the delegated authority of the

  2  Executive Office of the Governor for the executive branch or

  3  the Chief Justice for the judicial branch, respectively, or is

  4  contrary to legislative policy and intent, the Governor or the

  5  Chief Justice of the Supreme Court shall void such action and

  6  instruct the affected state agency or entity of the judicial

  7  branch to change immediately its spending action or spending

  8  proposal until the Legislature addresses the issue.  The

  9  written documentation shall indicate the specific reasons that

10  an action or proposed action exceeds the delegated authority

11  or is contrary to legislative policy and intent.

12         (c)  The House of Representatives and the Senate shall

13  provide by rule that any member of the House of

14  Representatives or Senate may request, in writing, of either

15  the President of the Senate or the Speaker of the House of

16  Representatives or the chair of the Legislative Budget

17  Commission to initiate the procedures of paragraph (b).

18         (3)  The Legislature may annually specify any

19  incentives and disincentives for agencies operating programs

20  under performance-based program budgets pursuant to this

21  chapter in the General Appropriations Act or legislation

22  implementing the General Appropriations Act.

23         (4)  Notwithstanding the 14-day notice requirements of

24  this section, and for the 2000-2001 fiscal year only, the

25  Department of Children and Family Services is required to

26  provide notice of proposed transfers submitted pursuant to s.

27  20.19(10)(c)8. to the Executive Office of the Governor and the

28  chairs of the legislative appropriations committees at least 3

29  working days prior to their implementation.

30         Section 9.  Subsections (1), (2), (6), (10), and (11)

31  of section 216.181, Florida Statutes, are amended to read:

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  1         216.181  Approved budgets for operations and fixed

  2  capital outlay.--

  3         (1)  The General Appropriations Act and any other acts

  4  containing appropriations shall be considered the original

  5  approved operating budgets for operational and fixed capital

  6  expenditures. Amendments to the approved operating budgets for

  7  operational and fixed capital outlay expenditures from state

  8  agencies may be requested only through the Executive Office of

  9  the Governor and approved by the Governor and the Legislative

10  Budget Commission as provided in this chapter. Amendments from

11  the judicial branch may be requested only through, and

12  approved by, the Chief Justice of the Supreme Court and

13  approved by the Chief Justice and the Legislative Budget

14  Commission as provided in this chapter.  This includes

15  amendments which are necessary to implement the provisions of

16  s. 216.212 or s. 216.221.

17         (2)  Amendments to the original approved operating

18  budgets for operational and fixed capital outlay expenditures

19  must comply with the following guidelines in order to be

20  approved by the Governor and the Legislative Budget Commission

21  as provided in this chapter for the executive branch and the

22  Chief Justice and the Legislative Budget Commission as

23  provided in this chapter for the judicial branch:

24         (a)  The amendment must be consistent with legislative

25  policy and intent.

26         (b)  The amendment may not initiate or commence a new

27  program, except as authorized by this chapter, or eliminate an

28  existing program.

29         (c)  Except as authorized in s. 216.292 or other

30  provisions of this chapter, the amendment may not provide

31  funding or increased funding for items which were funded by

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  1  the Legislature in an amount less than that requested by the

  2  agency or Governor in the legislative budget request or which

  3  were vetoed by the Governor.

  4         (d)  For amendments that involve trust funds, there

  5  must be adequate and appropriate revenues available in the

  6  trust fund and the amendment must be consistent with the laws

  7  authorizing such trust funds and the laws relating to the use

  8  of the trust funds. However, a trust fund shall not be

  9  increased in excess of the original approved budget, except as

10  provided in subsection (11).

11         (e)  The amendment shall not conflict with any

12  provision of law.

13         (f)  The amendment must not provide funding for any

14  issue which was requested by the agency or branch in its

15  legislative budget request and not funded in the General

16  Appropriations Act.

17         (g)  The amendment must include a written description

18  of the purpose of the proposed change, an indication of why

19  interim budget action is necessary, and the intended recipient

20  of any funds for contracted services.

21         (h)  The amendment must not provide general salary

22  increases which the Legislature has not authorized in the

23  General Appropriations Act or other laws.

24         (6)(a)  The Executive Office of the Governor or the

25  Chief Justice of the Supreme Court may require the submission

26  of a detailed plan from the agency or entity of the judicial

27  branch affected, consistent with the General Appropriations

28  Act, special appropriations acts, and the statement of intent

29  before transferring and releasing the balance of a lump-sum

30  appropriation. The provisions of this paragraph are subject to

31  the notice and review procedures set forth in s. 216.177.

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  1         (b)  The Executive Office of the Governor and the Chief

  2  Justice of the Supreme Court may amend, without approval of

  3  the Legislative Budget Commission, state agency and judicial

  4  branch entity budgets, respectively, to reflect the

  5  transferred funds based on the approved plans for lump-sum

  6  appropriations.

  7

  8  The Executive Office of the Governor shall transmit to each

  9  state agency and the Comptroller, and the Chief Justice shall

10  transmit to each judicial branch component and the

11  Comptroller, any approved amendments to the approved operating

12  budgets.

13         (10)(a)  The Executive Office of the Governor and the

14  Chief Justice of the Supreme Court may increase or decrease

15  the approved salary rate for positions for the purpose of

16  implementing the General Appropriations Act, special

17  appropriations acts, and actions pursuant to s. 216.262

18  consistent with legislative intent and policy. Other

19  adjustments to approved salary rate must be approved by the

20  Legislative Budget Commission pursuant to the request of the

21  agency filed with the Executive Office of the Governor or

22  pursuant to the request of an entity of the judicial branch

23  filed with the Chief Justice of the Supreme Court, if deemed

24  necessary and in the best interest of the state and consistent

25  with legislative policy and intent. The provisions of this

26  paragraph are subject to the notice and review procedures set

27  forth in s. 216.177.

28         (b)  Lump-sum salary bonuses may be provided only if

29  specifically appropriated or provided pursuant to s. 216.1815

30  or s. 110.1245.

31

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  1         (c)  State agencies and the judicial branch shall

  2  report, each fiscal quarter, the number of filled positions,

  3  the number of vacant positions, and the salary rate associated

  4  with each category to the Legislative Budget Commission in a

  5  form and manner prescribed by the commission.

  6         (11)  The Executive Office of the Governor may approve

  7  transfers of appropriations in the General Appropriations Act

  8  within any state trust fund of an agency, and the Chief

  9  Justice of the Supreme Court may approve such transfers for

10  the judicial branch. The Executive Office of the Governor and

11  the Chief Justice of the Supreme Court may approve changes in

12  the amounts appropriated from state trust funds in excess of

13  those in the approved operating budget up to $1 million only

14  pursuant to the federal funds provisions of s. 216.212, when

15  grants and donations are received after April 1, or when

16  deemed necessary due to a set of conditions that were

17  unforeseen at the time the General Appropriations Act was

18  adopted and that are essential to correct in order to continue

19  the operation of government. Changes in the amounts

20  appropriated from state trust funds in excess of those in the

21  approved operating budget which are in excess of $1 million

22  may only be approved by the Legislative Budget Commission

23  pursuant to the request of a state agency filed with the

24  Executive Office of the Governor or pursuant to the request of

25  an entity of the judicial branch filed with the Chief Justice

26  of the Supreme Court. The provisions of this subsection are

27  subject to the notice, review, and objection procedures set

28  forth in s. 216.177.

29         Section 10.  Section 216.1815, Florida Statutes, is

30  created to read:

31         216.1815  Agency incentive and savings program.--

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  1         (1)  In order to provide an incentive for agencies to

  2  re-engineer business processes and otherwise increase

  3  operating efficiency, it is the intent of the Legislature to

  4  allow agencies to retain a portion of the savings produced by

  5  internally generated agency program efficiencies and cost

  6  reductions.

  7         (2)  To be eligible to retain funds, an agency must

  8  submit a plan and an associated request to amend its approved

  9  operating budget to the Legislative Budget Commission

10  specifying:

11         (a)  The modifications to approved programs resulting

12  in efficiencies and cost savings;

13         (b)  The amount and source of the funds and positions

14  saved;

15         (c)  The specific positions, rate, amounts, and sources

16  of funds the agency wishes to include in its incentive

17  expenditures;

18         (d)  How the agency will meet the goals and objectives

19  established in its long-range program plan;

20         (e)  How the agency will meet performance standards

21  established by the Legislature and those in its long-range

22  program plan; and

23         (f)  Any other incentive expenditures which the agency

24  believes will enhance its performance.

25         (3)  Notwithstanding the 14-day notice requirement

26  contained in s. 216.177(2)(a), all plans and budget amendments

27  submitted to the Legislative Budget Commission pursuant to

28  this section shall be delivered at least 30 days prior to the

29  date of the commission meeting at which the request will be

30  considered.

31

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  1         (4)  In determining the amount the agency will be

  2  allowed to retain, the commission shall consider the actual

  3  savings projected for the current budget year and the

  4  annualized savings.

  5         (5)  The amount to be retained by the agency shall be

  6  no less than 5 percent and no more than 25 percent of the

  7  annual savings and may be used by the agency for salary

  8  increases or other expenditures specified in the agency's

  9  plan.

10         (6)  Each agency allowed to retain funds pursuant to

11  this section shall submit in its next legislative budget

12  request a schedule showing how the agency utilized such funds.

13         Section 11.  Section 216.1826, Florida Statutes, is

14  created to read:

15         216.1826  Activity-based planning and

16  budgeting.--Agencies are directed to work in consultation with

17  the Executive Office of the Governor and the appropriations

18  and appropriate substantive committees of the Legislature to

19  identify and reach consensus on the appropriate services and

20  activities for activity-based budgeting.  It is the intent of

21  the Legislature that all dollars within an agency be allocated

22  to the appropriate activity for budgeting purposes.

23  Additionally, agencies shall examine approved performance

24  measures and recommend any changes so that outcomes are

25  clearly delineated for each service or program, as

26  appropriate, and outputs are aligned with activities.  Output

27  measures should be capable of being used to generate a unit

28  cost for each activity resulting in a true accounting of what

29  the state should spend on each activity it provides and what

30  the state should expect to accomplish with those funds.

31

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  1         Section 12.  Subsection (1) of section 216.192, Florida

  2  Statutes, is amended to read:

  3         216.192  Release of appropriations; revision of

  4  budgets.--

  5         (1)  Unless otherwise provided in the General

  6  Appropriations Act, on July 1 of each fiscal year, up to 25

  7  percent of the original approved operating budget of each

  8  agency and of the judicial branch may be released until such

  9  time as annual plans for quarterly releases for all

10  appropriations have been developed, approved, and furnished to

11  the Comptroller by the Executive Office of the Governor for

12  state agencies and by the Chief Justice of the Supreme Court

13  for the judicial branch.  The plans, including appropriate

14  plans of releases for fixed capital outlay projects that

15  correspond with each project schedule, shall attempt to

16  maximize the use of trust funds and shall be transmitted to

17  the Comptroller by August 1 of each fiscal year. Such releases

18  shall at no time exceed the total appropriations available to

19  a state agency or to the judicial branch, or the approved

20  budget for such agency or the judicial branch if less. The

21  Comptroller shall enter such releases in his or her records in

22  accordance with the release plans prescribed by the Executive

23  Office of the Governor and the Chief Justice, unless otherwise

24  amended as provided by law.  The Executive Office of the

25  Governor and the Chief Justice shall transmit a copy of the

26  approved annual releases to the head of the state agency, the

27  chair and vice chair of the Legislative Budget Commission, the

28  chairs of the legislative appropriations committees, and the

29  Auditor General. The Comptroller shall authorize all

30  expenditures to be made from the appropriations on the basis

31  of such releases and in accordance with the approved budget,

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  1  and not otherwise. Expenditures shall be authorized only in

  2  accordance with legislative authorizations. Nothing herein

  3  precludes periodic reexamination and revision by the Executive

  4  Office of the Governor or by the Chief Justice of the annual

  5  plans for release of appropriations and the notifications of

  6  the parties of all such revisions.

  7         Section 13.  Section 216.216, Florida Statutes, is

  8  amended to read:

  9         216.216  Court settlement funds negotiated by the

10  state.--In any court settlement in which a state agency or

11  officer or any other counsel representing the interests of the

12  state negotiates settlement amounts to be expended by on any

13  state operational or fixed capital issue in the judicial

14  branch or the executive branch, such funds may not be expended

15  unless the Legislature has appropriated funds to the agency in

16  the appropriate category or the Legislative Budget Commission

17  has approved a budget amendment for such funds. In either

18  instance, the funding source identified must be sufficient to

19  cover both the anticipated program costs and the amount of the

20  settlement, the settlement must not be contrary to the intent

21  of the Legislature, and, if the settlement amount is

22  substantial, good reason must exist for entering into the

23  settlement prior to the next legislative session and no

24  significant amount of recurring funding shall be committed

25  appropriated by the Legislature to the appropriate agency

26  responsible for the operational or fixed capital issue. When a

27  state agency or officer settles an action in which the state

28  will receive moneys, the funds shall be placed in the General

29  Revenue Fund or in the trust fund that is associated with the

30  agency's or officer's authority to pursue the legal action.

31

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  1  The provisions of this section are subject to the notice and

  2  review procedures set forth in s. 216.177.

  3         Section 14.  Subsection (10) of section 216.221,

  4  Florida Statutes, is renumbered as subsection (11), and a new

  5  subsection (10) is added to said section to read:

  6         216.221  Appropriations as maximum appropriations;

  7  adjustment of budgets to avoid or eliminate deficits.--

  8         (10)  When advised by the Revenue Estimating

  9  Conference, the Comptroller, or any agency responsible for a

10  trust fund that a deficit will occur with respect to the

11  appropriations from a specific trust fund in the current

12  fiscal year, the Governor for the executive branch, or the

13  Chief Justice for the judicial branch, shall develop a plan of

14  action to eliminate the deficit. Before implementing the plan

15  of action, the Governor or the Chief Justice must comply with

16  the provisions of s. 216.177(2). In developing the plan of

17  action, the Governor or the Chief Justice shall, to the extent

18  possible, preserve legislative policy and intent, and, absent

19  any specific directions to the contrary in the General

20  Appropriations Act, any reductions in appropriations from the

21  trust fund for the fiscal year shall be prorated among the

22  specific appropriations made from the trust fund for the

23  current fiscal year.

24         Section 15.  Subsections (2), (3), (4), and (5) of

25  section 216.292, Florida Statutes, are amended to read:

26         216.292  Appropriations nontransferable; exceptions.--

27         (2)  A lump sum appropriated for a performance-based

28  program must be distributed by the Governor for state agencies

29  or the Chief Justice for the judicial branch into the

30  traditional expenditure categories in accordance with s.

31  216.181(6)(b).  At any time during the year, the agency head

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  1  or Chief Justice may transfer funds between those categories

  2  with no limit on the amount of the transfer. Authorized

  3  revisions of the original approved operating budget, together

  4  with related changes, if any, must be transmitted by the state

  5  agency or by the judicial branch to the Executive Office of

  6  the Governor or the Chief Justice, the chair and vice chair of

  7  the Legislative Budget Commission, the chairs of the

  8  legislative appropriations committees, the Office of Program

  9  Policy Analysis and Government Accountability, and the Auditor

10  General. Such authorized revisions shall be consistent with

11  the intent of the approved operating budget, shall be

12  consistent with legislative policy and intent, and shall not

13  conflict with specific spending policies specified in the

14  General Appropriations Act. The Executive Office of the

15  Governor shall forward a copy of the revisions within 7

16  working days to the Comptroller for entry in his or her

17  records in the manner and format prescribed by the Executive

18  Office of the Governor in consultation with the Comptroller.

19  Such authorized revisions shall be consistent with the intent

20  of the approved operating budget, shall be consistent with

21  legislative policy and intent, and shall not conflict with

22  specific spending policies specified in the General

23  Appropriations Act.

24         (3)  The head of each department or the Chief Justice

25  of the Supreme Court, whenever it is deemed necessary by

26  reason of changed conditions, may transfer appropriations

27  funded from identical funding sources, except appropriations

28  for fixed capital outlay, and transfer the amounts included

29  within the total original approved budget and releases as

30  furnished pursuant to ss. 216.181 and 216.192, as follows:

31

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  1         (a)  Between categories of appropriations within a

  2  budget entity, if no category of appropriation is increased or

  3  decreased by more than 5 percent of the original approved

  4  budget or $150,000, whichever is greater, by all action taken

  5  under this subsection.

  6         (b)  Additionally, between budget entities within

  7  identical categories of appropriations, if no category of

  8  appropriation is increased or decreased by more than 5 percent

  9  of the original approved budget or $150,000, whichever is

10  greater, by all action taken under this subsection.

11         (c)  Such authorized revisions must be consistent with

12  the intent of the approved operating budget, must be

13  consistent with legislative policy and intent, and must not

14  conflict with specific spending policies specified in the

15  General Appropriations Act.

16

17  Such authorized revisions, together with related changes, if

18  any, in the plan for release of appropriations, shall be

19  transmitted by the state agency or by the judicial branch to

20  the Comptroller for entry in the Comptroller's records in the

21  manner and format prescribed by the Executive Office of the

22  Governor in consultation with the Comptroller.  A copy of such

23  revision shall be furnished to the Executive Office of the

24  Governor or the Chief Justice, the chair and vice chair of the

25  Legislative Budget Commission, the chairs of the legislative

26  committees, and the Auditor General.

27         (4)(a)  The head of each department or the Chief

28  Justice of the Supreme Court may transfer funds within

29  programs identified in the General Appropriations Act from

30  identical funding sources between the following appropriation

31  categories without limitation so long as such a transfer does

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  1  not result in an increase to the total recurring general

  2  revenue or trust fund cost of the agency or entity of the

  3  judicial branch in the subsequent fiscal year: other personal

  4  services, expenses, operating capital outlay, food products,

  5  performance-based program budgeting lump sums, acquisition of

  6  motor vehicles, data processing services, operating and

  7  maintenance of patrol vehicles, overtime payments, salary

  8  incentive payments, compensation to retired judges, law

  9  libraries, and juror and witness payments. Such transfers must

10  be consistent with legislative policy and intent and must not

11  adversely affect achievement of approved performance outcomes

12  or outputs in any program. Notice of proposed transfers under

13  this authority shall be provided to the Executive Office of

14  the Governor and the chairs of the legislative appropriations

15  committees at least 5 working days prior to their

16  implementation.

17         (b)  The head of each department or the Chief Justice

18  of the Supreme Court may transfer funds and positions from

19  identical funding sources between salaries and benefits

20  appropriation categories within programs identified in the

21  General Appropriations Act.  Such transfers must be consistent

22  with legislative policy and intent and must not adversely

23  affect achievement of approved performance outcomes or outputs

24  in any program. Notice of proposed transfers under this

25  authority shall be provided to the Executive Office of the

26  Governor and the chairs of the legislative appropriations

27  committees at least 5 working days prior to their

28  implementation.

29         (5)(a)  Transfers of appropriations for operations from

30  the General Revenue Fund in excess of those provided in

31  subsections (3) and (4) but within a state agency or within

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  1  the judicial branch may be authorized by the commission for

  2  the executive branch and the Chief Justice for the judicial

  3  branch, pursuant to the request of the agency filed with the

  4  Executive Office of the Governor, or pursuant to the request

  5  of an entity of the judicial branch filed with the Chief

  6  Justice of the Supreme Court, if deemed necessary and in the

  7  best interest of the state and consistent with legislative

  8  policy and intent. The provisions of this paragraph are

  9  subject to the notice, review, and objection procedures set

10  forth in s. 216.177.

11         (b)  Transfers of appropriations for operations from

12  trust funds in excess of those provided in subsection (4)

13  which are greater than 5 percent of the original approved

14  budget or $1 million, whichever is greater, but within a state

15  agency or within the judicial branch may be authorized by the

16  commission, pursuant to the request of the agency filed with

17  the Executive Office of the Governor or pursuant to the

18  request of an entity of the judicial branch filed with the

19  Chief Justice of the Supreme Court, if deemed necessary and in

20  the best interest of the state and consistent with legislative

21  policy and intent. The provisions of this paragraph are

22  subject to the notice, review, and objection procedures set

23  forth in s. 216.177.

24         (c)(b)  When an appropriation for a named fixed capital

25  outlay project is found to be in excess of that needed to

26  complete that project, at the request of the Executive Office

27  of the Governor for state agencies or the Chief Justice of the

28  Supreme Court for the judicial branch the excess may be

29  transferred, with the approval of the commission or the Chief

30  Justice, to another project for which there has been an

31  appropriation in the same fiscal year from the same fund and

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  1  within the same department where a deficiency is found to

  2  exist.  Further, a fixed capital outlay project may not be

  3  initiated without a specific legislative appropriation, nor

  4  may The scope of a fixed capital outlay project may not be

  5  changed by any the transfer of funds made pursuant to this

  6  subsection.  The provisions of this paragraph are subject to

  7  the notice, review, and objection procedures set forth in s.

  8  216.177.

  9         (d)  A fixed capital outlay project may not be

10  initiated without a specific legislative appropriation.

11         (e)(c)  Federal funds for fixed capital outlay projects

12  for the Department of Military Affairs which do not carry a

13  continuing commitment on future appropriations by the

14  Legislature may be approved by the Executive Office of the

15  Governor for the purpose received. The provisions of this

16  paragraph are subject to the notice, review, and objection

17  procedures set forth in s. 216.177.

18         Section 16.  Section 11.90, Florida Statutes, is

19  amended to read:

20         11.90  Legislative Budget Budgeting Commission.--

21         (1)  There is created a standing joint committee of the

22  Legislature designated the Legislative Budget Budgeting

23  Commission, composed of 14 members as follows:  seven members

24  of the Senate appointed by the President of the Senate, to

25  include the Chairman of the Senate Budget Committee or its

26  successor, and seven members of the House of Representatives

27  appointed by the Speaker of the House of Representatives, to

28  include the Chairman of the Fiscal Responsibility Council or

29  its successor. The terms of members shall be for 2 years and

30  shall run from the organization of one Legislature to the

31  organization of the next Legislature. Vacancies occurring

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  1  during the interim period shall be filled in the same manner

  2  as the original appointment.  During even-numbered years, the

  3  chair of the commission shall be the chair of the Senate

  4  Budget Committee or its successor, and the vice chair of the

  5  commission shall be the chair of the House Fiscal

  6  Responsibility Council or its successor.  During odd-numbered

  7  years, the chair of the commission shall be the chair of the

  8  House Fiscal Responsibility Council or its successor, and the

  9  vice chair of the commission shall be the chair of the Senate

10  Budget Committee or its successor.  The members of the

11  committee shall elect a chair and vice chair. During the

12  2-year term, a member of each house shall serve as chair for 1

13  year.

14         (2)  The Legislative Budget Commission shall be

15  governed by joint rules of the Senate and the House of

16  Representatives which shall remain in effect until repealed or

17  amended by concurrent resolution.

18         (3)  The commission shall meet at least quarterly and

19  more frequently at the direction of the presiding officers or

20  upon call of the chairman. A quorum shall consist of a

21  majority of members from each house, plus one additional

22  member from either house. Action by the commission requires a

23  majority vote of the members present of each house.

24         (4)  The commission may conduct its meetings through

25  teleconferences or other similar means.

26         (5)  The commission will be jointly staffed by the

27  appropriations committees of the House of Representatives and

28  the Senate. During even-numbered years, the Senate will serve

29  as lead staff, and during odd-numbered years, the House of

30  Representatives will serve as lead staff.

31

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  1         Section 17.  Subsection (2) of section 27.345, Florida

  2  Statutes, is amended to read:

  3         27.345  State Attorney RICO Trust Fund; authorized use

  4  of funds; reporting.--

  5         (2)  There is created for each of the several state

  6  attorneys a trust fund to be known as the State Attorney RICO

  7  Trust Fund. The amounts awarded to a state attorney pursuant

  8  to this section shall be deposited in the trust fund for that

  9  state attorney. Funds deposited in such trust fund shall be

10  used, when authorized by appropriation or action of the

11  Executive Office of the Governor pursuant to s.

12  216.181(11)(10), for investigation, prosecution, and

13  enforcement by that state attorney of civil or criminal causes

14  of action arising under the provisions of the Florida RICO

15  (Racketeer Influenced and Corrupt Organization) Act.

16         Section 18.  Section 27.3451, Florida Statutes, is

17  amended to read:

18         27.3451  State Attorney's Forfeiture and Investigative

19  Support Trust Fund.--There is created for each of the several

20  state attorneys a trust fund to be known as the State

21  Attorney's Forfeiture and Investigative Support Trust Fund.

22  Revenues received by a state attorney as a result of

23  forfeiture proceedings, as provided under s. 932.704, shall be

24  deposited in such trust fund and shall be used, when

25  authorized by appropriation or action of the Executive Office

26  of the Governor pursuant to s. 216.181(11)(10), for the

27  investigation of crime, prosecution of criminals, or other law

28  enforcement purposes.

29         Section 19.  Section 45.062, Florida Statutes, is

30  amended to read:

31

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  1         45.062  Settlements, conditions, or orders when an

  2  agency of the executive branch is a party.--

  3         (1)  In any civil action in which a state executive

  4  branch agency or officer is a party in state or federal court,

  5  the officer, agent, official, or attorney who represents or is

  6  acting on behalf of such agency or officer may not settle such

  7  action, consent to any condition, or agree to any order in

  8  connection therewith, if the settlement, condition, or order

  9  requires the expenditure of or the obligation to expend any

10  state funds or other state resources, or the establishment of

11  any new program, unless:

12         (a)  The expenditure is provided for by an existing

13  appropriation or program established by law; and

14         (b)  Prior written notification is given within 5

15  business days of the date the settlement or presettlement

16  agreement or order is to be made final to the President of the

17  Senate, the Speaker of the House of Representatives, the

18  Senate and House minority leaders, and the Attorney General.

19  Such notification shall specify how the agency involved will

20  address the costs in future years within the limits of current

21  appropriations.

22         (2)  The state executive branch agency or officer shall

23  negotiate a closure date as soon as possible for the civil

24  action.

25         (3)  The state executive branch agency or officer may

26  not pledge any current or future action of another branch of

27  state government as a condition for settling the civil action.

28         (4)  State executive branch agencies and officers shall

29  report to each substantive and fiscal committee of the

30  Legislature having jurisdiction over the reporting agency on

31  all potential settlements which may commit the state to:

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  1         (a)  Spend in excess of current appropriations; or

  2         (b)  Make policy changes inconsistent with current law.

  3

  4  The state executive branch agency or officer shall provide

  5  periodic updates to the appropriate legislative committees on

  6  these issues during the settlement process.

  7         Section 20.  Notwithstanding the provisions of section

  8  10 of chapter 90-110, Laws of Florida, subsection (3) of

  9  section 215.20, Florida Statutes, shall not stand repealed on

10  October 1, 2001, and shall continue in full force and effect.

11         Section 21.  Section 284.385, Florida Statutes, is

12  amended to read:

13         284.385  Reporting and handling of claims.--All

14  departments covered by the State Risk Management Trust Fund

15  under this part shall immediately report all known or

16  potential claims to the Department of Insurance for handling,

17  except employment complaints which have not been filed with

18  the Florida Human Relations Commission, Equal Employment

19  Opportunity Commission, or any similar agency. When deemed

20  necessary, the Department of Insurance shall assign or

21  reassign the claim to counsel.  The assigned counsel shall

22  report regularly to the Department of Insurance or to the

23  covered department on the status of any such claims or

24  litigation as required by the Department of Insurance.  No

25  such claim shall be compromised or settled for monetary

26  compensation without the prior approval of the Department of

27  Insurance and prior notification to the covered department.

28  All departments shall cooperate with the Department of

29  Insurance in its handling of claims.  The Department of

30  Insurance, the Department of Management Services, and the

31  Department of Banking and Finance, with the cooperation of the

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  1  state attorneys and the clerks of the courts, shall develop a

  2  system to coordinate the exchange of information concerning

  3  claims for and against the state, its agencies, and its

  4  subdivisions, to assist in collection of amounts due to them.

  5  The covered department shall have the responsibility for the

  6  settlement of any claim for injunctive or affirmative relief

  7  under 42 U.S.C. s. 1983 or similar federal or state statutes.

  8  The payment of a settlement or judgment for any claim covered

  9  and reported under this part shall be made only from the State

10  Risk Management Trust Fund.

11         Section 22.  Paragraph (b) of subsection (2) of section

12  376.15, Florida Statutes, is amended to read:

13         376.15  Derelict vessels; removal from public waters.--

14         (2)

15         (b)  The commission may establish a program to provide

16  grants to coastal local governments for the removal of

17  derelict vessels from the public waters of the state.  The

18  program shall be funded from the Florida Coastal Protection

19  Trust Fund. Notwithstanding the provisions in s.

20  216.181(11)(10), funds available for grants may only be

21  authorized by appropriations acts of the Legislature.

22         Section 23.  This act shall take effect July 1, 2001.

23

24

25

26

27

28

29

30

31

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  1            *****************************************

  2                          HOUSE SUMMARY

  3
      Revises various provisions of law relating to state
  4    planning and budgeting.  Modifies the definitions of
      "operating capital outlay" and "state agency." Removes
  5    the requirement for the Executive Office of the Governor
      to consider certain findings relating to information
  6    technology in its review of long-range program plans of
      executive agencies.  Requires long-range program plans to
  7    be consistent with legislation implementing the General
      Appropriations Act.  Revises requirements of legislative
  8    budget requests relating to the total number of positions
      and to unit-cost data.  Requires legislative budget
  9    requests to include an inventory of litigation requiring
      additional appropriations or changes in the law and
10    provides for update of such inventory.  Revises
      provisions requiring submission to the Governor of
11    information on financial needs for the next fiscal year
      to remove applicability to the judicial branch.  Adds the
12    judicial branch to entities the Executive Office of the
      Governor is required to study for budgeting and
13    reorganizational purposes.  Revises requirements for the
      Governor's recommended budget to exclude recommendations
14    of the Chief Justice of the Supreme Court, require the
      Governor to make such recommendations, and include the
15    legislative budget request of the judicial branch.
      Revises the manner in which requests regarding
16    legislative intent on the General Appropriations Act are
      to be made.  Revises requirements relating to notice of
17    action on appropriations to be taken by the Executive
      Office of the Governor or the Chief Justice of the
18    Supreme Court.  Deletes an obsolete notice requirement.
      Requires budget amendments for the judicial branch to be
19    approved by the Chief Justice of the Supreme Court and
      the Legislative Budget Commission.  Authorizes the Chief
20    Justice to amend, without approval of the Legislative
      Budget Commission, judicial branch entity budgets to
21    reflect transferred funds based on the approved plans for
      lump-sum appropriations.  Requires approval of the
22    Legislative Budget Commission for certain adjustments to
      approved salary rate. Provides circumstances under which
23    lump-sum bonuses may be provided. Requires quarterly
      reporting of positions filled, positions vacant, and the
24    salary rate associated with each category.  Grants the
      Legislative Budget Commission authority to approve state
25    trust fund appropriations in excess of $1 million.
      Provides for an agency incentive and savings program.
26    Provides for activity-based planning and budgeting.
      Provides restrictions on the expenditure of funds for
27    court settlements negotiated by the state.  Provides
      requirements for the elimination of a deficit in a trust
28    fund.  Adds food products as an allowable fund transfer
      category.  Authorizes transfer of positions under certain
29    circumstances. Authorizes transfers of appropriations for
      operations from trust funds in excess of certain amounts
30    under certain conditions. Establishes the chair and vice
      chair of the Legislative Budget Commission each year and
31    eliminates the election of such officers.  Requires
      certain notification and reporting with respect to
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  1    executive branch settlements.  Saves the 0.3 percent
      service charge deducted from designated trust funds from
  2    scheduled repeal.  Requires assigned counsel to report to
      the covered department on the status of casualty claims
  3    or litigation.  Prohibits compromise or settlement of a
      casualty claim without prior notification to the covered
  4    department.  See bill for details.

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CODING: Words stricken are deletions; words underlined are additions.